Executive Summary: Allround is the leading medical product for cold in the OTC market. It had the most frequent purchase with high conversion ratio. Over the years Allround was attaining maturity resulting in a decline in market share. That’s why OCM Marketing developed a long term marketing strategy over 10 periods to maintain Allstar market share.
Initially, we invested in Learning Innovation through Product development to meet customer’s evolving needs. We projected 2 new products by the 10th period. We reformulated Allround by dropping alcohol and observed an opportunity to enter into the Cough market, the second largest segment with few competitors. We launched a premium product for the cough market, Allround+. The market was divided …show more content…
We realized that there were chances that Allround would decrease its market share having come to the end of its product lifecycle. However, that decrease should be compensated by increasing market share of our new products. We intended additional two product lines-Allround Cough and Allround Kids or Allround Extra.
Our final products consist of three lines:
1. Allround: 4hr multi liquid as the market leader from period 0
2. Allround+: 4hr cough liquid as line extension from period 4
3. Allright: 4hr allergy capsule ND as new product from period 7
Allround: We eliminated the alcohol from period 1 to reduce cost. Allround’s position as market leader was threatened towards the end as it crossed maturity and approached the declining stage of the product lifecycle. We ensured Allround was always around the Cash Cow and Star areas of the BCG matrix as it was our main revenue generator.
Allround+: Based on our market analysis, we found a large opportunity targeting the retired and empty nesters with a cough symptom. Allround+ was introduced as a means of serving the demand here by placing at a slight premium to …show more content…
We decided to go for 1st in market product, allergy capsule ND., in order to take advantage of 1st mover. Thus we shelved our initial plans of a kids medicine or multi symptom capsule. Having placed the product in an ocean of opportunity and through proper segmenting of the market, we were quickly able to capture the top position in the allergy market and Allright exceeded our expectations.
However, while launching the new product, we failed to see that the additional capacity would result in overcapacity. As a result, our inventory carrying costs increased drastically and our income reduced. However, we were able to contain the effect to one period and through changes in pricing, we managed to strike a balance between our capacity and income.
Pricing: The broad pricing tactics was to price Allround as a discount to Allround + so that it continued as a product that gave us sales volumes. Allround +, as a more premium product, was priced higher and was targeting a segment where competition was less thereby allowing us to price more aggressively than our competitors. Allright was a niche product. It was priced at a premium and having very little competition, gave us a free hand to take advantage of our monopoly to raise our net
Initially, we invested in Learning Innovation through Product development to meet customer’s evolving needs. We projected 2 new products by the 10th period. We reformulated Allround by dropping alcohol and observed an opportunity to enter into the Cough market, the second largest segment with few competitors. We launched a premium product for the cough market, Allround+. The market was divided …show more content…
We realized that there were chances that Allround would decrease its market share having come to the end of its product lifecycle. However, that decrease should be compensated by increasing market share of our new products. We intended additional two product lines-Allround Cough and Allround Kids or Allround Extra.
Our final products consist of three lines:
1. Allround: 4hr multi liquid as the market leader from period 0
2. Allround+: 4hr cough liquid as line extension from period 4
3. Allright: 4hr allergy capsule ND as new product from period 7
Allround: We eliminated the alcohol from period 1 to reduce cost. Allround’s position as market leader was threatened towards the end as it crossed maturity and approached the declining stage of the product lifecycle. We ensured Allround was always around the Cash Cow and Star areas of the BCG matrix as it was our main revenue generator.
Allround+: Based on our market analysis, we found a large opportunity targeting the retired and empty nesters with a cough symptom. Allround+ was introduced as a means of serving the demand here by placing at a slight premium to …show more content…
We decided to go for 1st in market product, allergy capsule ND., in order to take advantage of 1st mover. Thus we shelved our initial plans of a kids medicine or multi symptom capsule. Having placed the product in an ocean of opportunity and through proper segmenting of the market, we were quickly able to capture the top position in the allergy market and Allright exceeded our expectations.
However, while launching the new product, we failed to see that the additional capacity would result in overcapacity. As a result, our inventory carrying costs increased drastically and our income reduced. However, we were able to contain the effect to one period and through changes in pricing, we managed to strike a balance between our capacity and income.
Pricing: The broad pricing tactics was to price Allround as a discount to Allround + so that it continued as a product that gave us sales volumes. Allround +, as a more premium product, was priced higher and was targeting a segment where competition was less thereby allowing us to price more aggressively than our competitors. Allright was a niche product. It was priced at a premium and having very little competition, gave us a free hand to take advantage of our monopoly to raise our net