Post-Simulation Swot for Allround

Strengths

Weaknesses

• Allround formulation continues to provide relief for reported cold symptoms through 10 periods (reported symptoms have been consistent)
• Strong and positive media presence drives sales, brand awareness, and consumer engagement
• Steady and positive growth in grocery and retail pharmacy channels over 10 periods is a predictor of future growth
• Allround has the highest reported customer satisfaction, highest brand awareness, and highest conversion ratio
• Promotional allowances have provided Allround with the highest visibility (shelf space) of any cold, cough, or allergy product

• Allround is poised to be the most expensive product on the market for next period
• Promotion allowances are higher than competition, leaving unclaimed profits
• Despite not marketing Allround as an allergy product, brand perception is that Allround is extremely effective for allergy, precluding a launch of a separate product to avoid cannibalization of sales
• Allstar’s sales force is much larger relative to competitors (Brian)
• Too much capital is tied up in advertising and promotions  (Brian)
• Not well diversified among product offerings (Brian)

Opportunities

Threats

• Revise advertising message to reflect growing sales and correct for artificial midpoint of lifecycle
• Survey of brands purchased indicates sales are improving after four period slump
• Despite not marketing Allround as an allergy product, brand perception is that Allround is extremely effective for allergy, providing an opportunity for rebranding
• For Allstar to launch another product alongside Allround, it must be extremely well differentiated or Allround must be rebranded so as to not cannibalize sales
• Investors may be deterred by lagging stock price

• Single product approach is risky and provides no cushion for sudden market changes
• High advertising expenditures is not stainable, and despite this and sales force, physicians are still more likely to recommend competitor brands
• Company integrity is compromised by changing advertising message to promote product relief for symptoms that the formulation may not necessarily provide
• Over capacity problem- over adjusting prices to offset capacity utilization levels could deter potential sales due to higher prices (Brian)
• Cost of goods sold continues to grow exponentially and could eat into potential profits (Brian)
• Raising prices could deter sales and result in lower market share if customer demand is more elastic than previously believed (Brian)
• Overall market for Allround  could be moving away from growth and into the maturity stage of the product life cycle (Brian)