The Allstar Company's Over-The-Counter (OTC) Group stands strong in today's market and is poised for additional growth. Despite a turbulent eight years that saw a fragmentation of the market via multiple market entrants, Allstar's stock price has nearly tripled while extending the product line. Building upon the market leadership status of Allround, Allround+ (a 4 hour cough liquid), and Allright (a 4 hour allergy capsule) were successfully launched and quickly adopted by consumers. Additionally, Allround was reformulated twice, dropping alcohol and cough suppressant respectively, in order to position the line exclusively as a cold remedy.
Initially, consumers rebelled against a price hike by Allround original, instigating a three term stock price drop after period one. Only by finally readjusting price and marketing tactics did the stock price, market share, and earnings begin their ascent once again. The launch of Allround+ marked the first attempt at leveraging the well-known Allround brand name with a specialized cough suppressing product.
Likewise, Allright complemented the line by bringing a potent allergy medication to market.
In total, the simulation provided the team a viable means of planning and implementing a marketing strategy at a brand management level. Being able to adapt to and overcome adversity and respond to market changes were solid learning tools for the team. Likewise, it was rewarding to see a strategy pull through in the long term despite early setbacks.
The long term product strategy for the Allstar line involves a strategic defense of the Allround Multi-Symptom Liquid with market entries leveraging the brand identity into symptom-specific specialization formulas. With consumers concerned about over-medication and having more and more purchase options, Allround must seek to reposition the Multi-Symptom Liquid as a 'Cold' medicine, while offering a line extension 'Cough' medicine, and finally launch an innovative 'Allergy' medication. Through...