As a exult, we increased the numbers in Chain Drug Stores by 5, Mass Merchandisers increased by 5 and Wholesalers and Merchandisers increased by 3 which increased our increased the overall sales force totals from 165 to 186 putting us where we thought we needed to be to remain competitive in the market. The graph shows total sales force for each company over time. During this period, we looked at our competitors and made the decision to add a new product to the market.
We compared Allured to Cougher and based on our findings, we decided on a line extension, adding Allured+, a hill’s cold product. We priced our new product at $6. 29. Additionally, we decided that we would also increase the price of Allured by $. 10 bringing its cost from $5. 39 to $5. 49. We also decided to increase the amount we were allocating to advertising and promotion in an effort to increase brand awareness. During this period, we also made the decision to switch back to “Brewster, Maxwell and Wheeler,” BMW for our advertising needs.
BMW is one of the most expensive however, it is a high quality performance agency when it comes to advertising and therefore we felt that even though it was ore expensive, we were getting more for our money with this company. We’ve used BMW in the past and had better results with them versus other advertising agencies. The makeup of our advertising message consisted of: Primary 40%, Benefit – 40%, Comparison 10% and Reminder – 10%. At this point our numbers looked good and we felt confident that we had made some good choices and were headed in the right direction.
PERIOD 5: At the beginning of period 5 we were in last place with no money remaining, but we were making adjustments to help us steadily increase. Prices increased by 3. 6% with an inflation increase of 3. 6%. As far as our new product, it was not doing as well as we had hoped but we decided that even though the sales were not high, we would not drop Allured+ at this point. We made the decision instead to decrease the price from $6. 29 to $5. 99 hoping this would bring more buyers since it was one of the least expensive on the market.
When we looked at all we had learned, we realized that if we were to be successful, it would necessary for us to align our self more closely with the rent market demands. We also realized from looking at some of the social media comments for Allured+, that one of the problems was consumers could not find it. This told us that we needed more shelf space. The adjustment was made to add more shelf space. Compared to Allured, Allured+ did not do well in this period PERIOD 6: The biggest decision made during period 6 was the introduction of another new Alistair Brand product, Alright, a err allergy capsule ND.
It was decided that the price for this medicine would be set at $6. 59. This was one of the more expensive products to produce hence the decision to set the price a little higher. Introducing a new product into the market meant that we would need to have more employees to work and therefore it was necessary to increase sales force in order to support and meet our mission. Due to the lack of funds, we were unable to make increases in advertising and promotions. This probably hurt us since we needed to push Allured+ because it was still relatively new on the market.