Allstar Brands' Allround product is the market share leader in the over-the-counter
(OTC) cold
and allergy remedy market. The consistent success
of the brand in terms of profitability and
sales has made it a critical component
of the Pharmaceuticals Division's long-term strategic plan.
The division anticipates that the brand's cash flow in the coming years will allow the company
to
pursue new opportunities in emerging markets. However, the division manager responsible for
Allround has become concerned with the competitive nature
of the OTC cold remedy market. In
the past three years, the industry has seen several product introductions
as well as major
increases in promotional and advertising expenditures. There is concern among senior
management that this competitive activity will lead to declining market share and profitability
for Allround. The brand has lost one full share point in the last year. Senior management
expects that skillful marketing will prove pivotal to the long-term success
of Allstar Brands.