Marketing Plan - Pharmasim

COMPANY DESCRIPTION:

Allstar Brands is a consumer packaged goods company that manufactures and markets its own products both nationally and internationally. The company was founded in 1924 and has since grown through mergers and acquisitions. There are three divisions in the company; Consumer Products, International, and Pharmaceuticals. The Consumer Products division consists of packaged goods like laundry detergent, shampoo, and soap. The International division is responsible for distributing Allstar products globally and has been particularly successful in Europe. Finally, the Pharmaceuticals division produces and markets both ethical (prescription) and over-the-counter (OTC) medicines. The OTC group is of particular financial importance to the company due to its sustained sales ($355 million annually) and profitability performance ($67 million annually). Unfortunately for Allstar, the OTC industry has become highly competitive over the past year, which has resulted in poorer business results than expected for the Allround product. Senior leadership has tasked the OTC marketing group to restore the brand's success, and plan on leveraging the liquidity of cash from Allround to fund future investments in emerging markets

SITUATION ANALYSIS:

a. Industry: Allstar Brands is one of five major players in the OTC cold and allergy remedy market. There are five major categories in which Allstar Brands competes which are are allergy capsule, cold capsule, cold liquid, cough liquid, and nasal spray. Within these different categories, there are 10 major brands (see Appendix A for the brands of each company). Delineation within the industry is broken down into 4-hour brands and 12-hour brands, and is regulated by the government concerning maximum dosage. Furthermore, the market is segmented by how the brands are labeled and the method of delivery of the medication. Current labels include allergy, cold, cough, and nasal spray. Allround is currently in the 4-hour multi symptom cold liquid market, and is viewed as the most effective brand on the market for addressing multi-symptoms. Allround uses the maximum number of ingredients allowed from five out of the six categories utilized in current brand formulations (analgesic, antihistamine, decongestant, cough suppressant and alcohol). This is more than any other company (see Appendix B).

b. Competitors: Allstar Brands, B&B Healthcare, Curall Pharmaceuticals, Driscol Corporation and Ethik Incorporate compete for the OTC cold and allergy remedy market. At $355 million, Allstar Brands’ revenues rank second behind Ethik Incorporated (see Appendix A for the names and the revenues of each company). Unlike the majority of its competitors, who offer two to three products, Allround is the only OTC cold and allergy product Allstar Brands produces. As such, Allround is positioned as a multi-symptom remedy due to the number of ingredients it contains and falls under the Cold category. Allround has the highest total overall market share at 23.8% and the highest share in the Cold category at 40% (see Appendix C).

Ethik Incorporated, the market leader in revenue, offers three products in the OTC and allergy category: Effective, End and Extra. Each of its brands ranks in the top three by market share in the categories it competes: 48% (nasal), 45.7% (cough) and 19.5% (cold) respectively. In addition, each of the products utilizes a different consumption method to appeal customer preferences. Effective is offered as a cold nasal spray, End is offered as cough liquid, and Extra is offered as a cold capsule. Furthermore, Extra is the only product in the market with a 12-hour offering in capsule form; all other brands are 4-hour.

Driscol Corporation is the only other company in the industry besides Allstar Brands to offer a multi-symptom cold remedy, named Dryup. Like Allround, Dryup also falls under the Cold category. Dryup’s formula differs from Allround’s as it doesn’t contain alcohol and because it is consumed in capsule form vs. liquid.

The other eight brands represent Allround’s direct competition in the market. Appendix D shows a summary of each of the brands and the products and consumption methods they offer. There are many 4-hour options across the cold, cough and allergy categories for consumers to choose from. However, the grid in Appendix D shows there may be opportunity in the industry around the different consumption methods of each of those categories (ex: no company offers a cold liquid) as well as in the 12-hour segment.

c. SWOT Analysis:

Strengths Weaknesses

Market leader in OTC cold/allergy meds Narrow product line

Profitable product line No market share in cough, allergy, or nasal categories

Most effective at reducing multiple symptoms Smaller salesforce than competition

High brand awareness Does not get best shelf placement

Strong advertising budget and campaigns Channel relationships could be better

Opportunities Threats

Reformulation to satisfy consumer needs Competition - Ethik brands and Besthelp