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Market Share Simulation

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by

Richard Pete

on 28 April 2015

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Transcript of Market Share Simulation

BUS 330 April 27, 2015

Sultan Bagudu
Rashida Davaud
Richard Pete
Joe Alongi
Team Four
Lower initial MSRP from $5.49 to $4.89
Relocated sales force
Increased advertising budget from $7.0 million to $9.3 million
Increased promotion value to $4.4 million
Primary (45%), Comparison (25%)
Setup website w/ Adwords
Period 1 (#0)
maintained price at $4.89
increased advertising budget to $12 million
Increased promotion budget to $8.2 million
Emphasized comparison benefits to Coldcure
Decided to publish Blogging policy
Period 3 (#2)
Kept sales force the same
no changes to advertising or promotion budgets
Decided to take an additional 5% off
Introduced All-Right (4hr allergy capsule)

Period 4 (#3)
As stated in the Marketing plan, All-Star Brands is entering the cold & multi-symptom market with a family oriented marketing plan. Our goal for All-star is to increase net income, market share, and overall profit of the company through strategic implementation based on the changes made in the market.
Summary
Stock price rose to $20.08
Revenue showed 6.8% growth
Gross margin went up 5.8%
Net Income experienced negative 10.7% growth
Results
Market Share Simulation
Results
stock price increased from $12.61 to $14.43
revenue grew by 14.3%
Gross margin increased by 2.3%
Net Income also showed 14.43% growth
Results
Stock price went up to $18.08
Revenue grew by 8.4%
Gross margin increased by 19.9%
Net Income showed a 33.0% growth
Period 2 (#1)
Reallocated Sales force
Increased advertising budget to $10.2 million
Increased promotions budget to $7.9 million
Target audience to young and mature families
Reformulated brand by dropping alcohol
Results
Stock went up to $20.78
Revenue experienced $312.6 million growth
Gross margin showed $185.9 million growth
Net Income decreased 12.4%
Period 5 (#4)
Reduced advertising budget from $12 million to $9.5 million
Reduced promotions budget from $8.2 million to $8.0 million
kept the price the same (All-Round)
All-Right
Reduced price of All-Right to $4.89
decreased advertising budget to $7.0 million (All-Right)
lowered promotion budget to $6.2 million
Adjusted benefits
Product Tampering Decision
Issued a statement of condolence
took damaged products off the shelves
Results
Stock price went to $21.16
Revenue showed growth of 2.3%
Net Income and gross margin both decreased
Period 6 (#5)
Ethik introduced End+
Reduced both prices (All-Right and All-Round)
Volume discount changed from 19% from 25%
Increased advertising budget to $13 million
Reduced total promotional value to $5.4 million
reduced All-right advertising budget by $1 million
changed comparison to End+
Reduced sales force from 130 to 110
Results
Revenue increased 9.2 %
7.0% growth in Gross Margin
Net Income grew 9.4%
Stock price went up to $25.78
Conclusion
As a group we have learned many key things that would help us as managers in the future. A couple of those key things are that decisions are made using a multitude of sources rather than just one and that manager’s deal with both internal and external factors that can change the status of the company, mistakes take a toll on the company as a whole as demonstrated in the simulation.If given the opportunity to restart the market plan, more attending would have been given to Allright. Its presence in the market was weak and it lacked a clear advertising message which affect its respectability and contributed to reason why customer did not by the product as much, the other reason being its high price.
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