Table of Contents
The company aims to be the leader in the market, giving competitive prices to its customers. This will be achieved through incorporating quality Allround products with competitive prices. Careful surveillance of every competitor in the industry and strategic planning is an important aspect to suit the needs of the customers. The Branding team will be an important department in controlling the financial growth of the company.
Changing the ingredients of Allround
The product has been realized to be causing a little drowsiness. This can be controlled to fit the entire consumer who may not prefer drowsiness. This can be realized through changing some ingredients of the product.
Increase market share by 5% to increase on the total annual profits
Through proper advertising, the company can increase the market share and this will be important as it will boost and promote the young product AllRound+.
Increase the number of the loyal customers in the next 1 year by 15%
This will be achieved through giving discounts to customer who purchase the products in the company. Constant promotion will also boost the number of loyal customers in the Allround purchases (Stuart 67). Loyal customers are important as it assist the company to remain buoyant in the market in that, when the season is low and sales has reduced, the loyal customer will still remain in the company. They prefer paying a premium price than shifting to a new brand.
Increase sales by 65% through focusing on customer satisfaction.
Customer based products attracts and retains more customers in that, each customer has his own need and if the company can come up with customer based products to satisfy each customer, then they will be in a better position to retain most of the customers. It is cheaper to retain a customer than to attract a new customer. This will reduce on the fixed costs of the company thus improving the general sale.
Improving brand awareness up from 45- 75% by next year.
Increased advertisement sand promotions are the key aspects here that will improve the brand of the products.
Introduction of a new brand Allround+
Introduction of a new brand needs better strategies that will make it swiftly penetrate in the market. The company must consider the price of the product and advertisement as the core element. Branding of the product should also be considered to make it fit in the market.
The company being in the market for so long, it has fully established itself in the pharmaceutical industry. The cough serum has no side effect and has been known to be very effective and gives a faster relieve to patients. The only side effect that is realized is the drowsiness effect. Apparently, the customers seem to be satisfied with the product. This may however not last for long because customers needs keep on changing with time.
The company needs to place their ears on the ground and listen to customers changing needs and upgrade their products on the same direction (Stuart 85). Through gradual upgrade of their prices, increased promotions and increased distribution channels has led to the success of the company. All the decisions made in the company were customer based. This brought better results as the sales of the company increased. The management team is seen to be on track as in the long run decision making is being seen to be achieved. The company has customer database in the organization. The database is closely monitored and the products prices are always adjusted according to the inflation in the current economy. This price adjustment has made the company to be able to meet the needs of their customer all round the clock. There was inflation in several years until year 7 where there was a decline of 1.7%.
Promotion was at the heart of their most activities. As much as most companies will want to reduce their company cost by taking their advertisement in cheap advertising agencies, Allround do not do that. The company believes in sales after proper advertisement and not just advertisement but proper advertisement. The firm believes that long run profit is much more important that the short term saving strategies.
There is high competition in the industry. This makes it very tricky especially when the company is just about to launch a new brand product in the market. The price of their products could have most likely been higher as they kept on increasing their prices gradually. This price change led to decline in sales for the company as some of their customers shifted to other cheaper competitors in the market. Another weakness was that, the company management team was not strategic with their decision in the product life cycle. If a product is on the introduction stage, much advertising is required. This is also required in the maturity stage as the product is constant and there is no much sale. According to BCG matrix, the company is supposed to milk more profit at the cow stage and support the weak product to grow.
Being the leader in the market, the company had a lot of opportunities to market and sells their products without much effort. This is because, while other competitors are still in the introduction stage, Allround are in a cow stage according to BCG analysis. The company has more experience in the industry. Being a scientific field, competitors need intensive research before they could introduce a product in the market. This is because the industry deals with drugs and they are very sensitive.
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Customers were never satisfied with the products in the market. Most customers were concerned with the ingredients used to make the product. This can only be controlled when the company decides to change the ingredients of the product and upgrade them to fit customer’s needs. Another weakness is the level of competition in the market. There are too many competitors in the market who makes it hard for Allround to develop their new products. The only aspect that saved the company was the issue that the company was customer based in most of their decisions.
In order to achieve the first objective, the company needs to improve on the advertising allocated money and increase the funds by 25%. This will allow the message reach to most consumers in the market. To improve the number of loyal customer in the company, there is need to maintain customer database to know the need of each customer. The database needs to be updated after every week. To increase sales of the company, the organization need to ensure efficiency and effectiveness in their brands. This will attract confidence with their customers.
Delayal on making decisions can affect the company performance. Failure in monitoring the customers’ data is another aspect that led to the profit decline. From the feedback from the customer, it was realized that the ingredient of their products needed a change to continue selling in the market. The company should not have increased their prices upwards but maintained the prices. There was change in the total stock price. The price increased by 80%. This brought about high profits in the company. The company should not have concentrated on increasing their prices. This was not a right decision. They should have concentrated instead on advertisement, product reformulation and purchase of consumer research. This will be of much assistance in developing their brands.