Currently, Allround is available for everyone to use now that
the alcohol has been removed so the usage as a child’s cold liquid. The children’s
formula could also affect sales but would open a new market so there could be
low cannibalization of Allrounds market share. After reviewing
the brand formulation, it can be seen that the 12 mutli capsule will be a
direct competitor to allround so that would cannibalize the current market
share. The cough liquid is still part of
the allround formula but poses a smaller threat to the market share as cough is
a separate segment. After reviewing the
market share, there are only two cough supplements while there are many cold
ones. The conjoint analysis can also be
reviewed to see how the product would fair.
The best new product option from the conjoint is the cough liquid at a
price of 3.63. In the overall, the
allround formula is preferred compared to Allround+. Obviously the liquid cannot be sold for that
low of a price and it will be adjusted.
I introduced the cough medicine for 4.79. I increased my sale forces marginally and
made a comparison to Coughcure. The introduction of the new product drove down
the stock prices. Looking at the market update is can noticed that some of the decisions
were not made correctly in the advertising and pricing. The update helps the brand manager evaluate
the decisions made in the previous session so that items and prices can be
adjust to react to it. The market share was marginally affected as
the cold market share dropped. Allround+
took 6.8% of the cough segment. The
segment was that replayed with the same decisions except for comparing to End. It was compared to the correct product but
still Allround was running over capacity.
One of the most important reports to look at is the Market
Update. It provides an written
comparison and suggestion to help fix mistaken decisions and give guidance on
what to change for the next situation. I
can see that I need to pay greater attention to this report so that I can ensure
that my direct customers (Store) feel cared for and that the pricing is adequate
compared to the competitors.
In class on Thursday, we discussed how to view the brand extension and I learned more of what I could have done. Additionally, I should have looked at the brand purchased report. There I can how Allround is actually used for like cough and allergy not just the cold market. Allround only shows up in the cold market in manufacture sales because that is the defined market for it. The manufacture sales could be put together by the FDA or other agencies. Where as the brand purchases report is survey based for the consumer.
Additionally this week, we were to look at the market demand for each line extension and the market value of each of these markets. In order to look at these, the brand purchased report should be used along with the decision criteria. On the decision criteria the market penetration can be found to the market demand can be determined. Based on session three data, the number units sold was 540units. By taking the market penetration of all around 64.4 I can find the total market 840. Then with the decision criteria I can break it down by cough, cold, allergy, child's cold etc. From this it is said the market is 17.5% so taking the 840 and multiplying by the percentage it is 147 units demanded for child cold and using 24.3% for cough it can seen that 204 units are demands for cough. This
then does the units demanded for each. As for the value of each market, the manufacture sales can seen for each market the total sales can be seen but I am unsure of how the market value would be determined.
In class on Thursday, we discussed how to view the brand extension and I learned more of what I could have done. Additionally, I should have looked at the brand purchased report. There I can how Allround is actually used for like cough and allergy not just the cold market. Allround only shows up in the cold market in manufacture sales because that is the defined market for it. The manufacture sales could be put together by the FDA or other agencies. Where as the brand purchases report is survey based for the consumer.
Additionally this week, we were to look at the market demand for each line extension and the market value of each of these markets. In order to look at these, the brand purchased report should be used along with the decision criteria. On the decision criteria the market penetration can be found to the market demand can be determined. Based on session three data, the number units sold was 540units. By taking the market penetration of all around 64.4 I can find the total market 840. Then with the decision criteria I can break it down by cough, cold, allergy, child's cold etc. From this it is said the market is 17.5% so taking the 840 and multiplying by the percentage it is 147 units demanded for child cold and using 24.3% for cough it can seen that 204 units are demands for cough. This then does the units demanded for each. As for the value of each market, the manufacture sales can seen for each market the total sales can be seen but I am unsure of how the market value would be determined.
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