Mission Statement:

1. Mission Statement: • Allstar Pharmaceuticals is dedicated to promoting healthy lifestyles for our customers through quality products. We are equally focused on creating a positive work environment and maximizing shareholder value.

2. S.W.O.T. Analysis • A. Strengths • 1.Customer Satisfaction • If the customer is not satisfied with our products, then we are unsatisfied as well. • Customer satisfaction stems primarily from the quality and effectiveness of our products. • Our Customer Satisfaction has risen steadily over the last 10 periods. • 2. R&D Department • Focuses on developing new products related to consumer needs and demands. • Introduces quality products with low side effects.

3. S.W.O.T Analysis • A. Strengths • 3. Brand Awareness • Allstar has the highest brand awareness in the Pharmaceuticals market . • Allows us to confidently introduce a new product into the market. • 4. Quality products • The quality of our products is a strong factor in our customer satisfaction. • We strive in making high quality products with limited side effects.

4. S.W.O.T Analysis • A. Strengths • 5. Ever-Present Market • People will always be in need of a cold medicine, especially in the winter months. • This is a strong potential for growth if products are marketed and targeted accordingly.

5. S.W.O.T Analysis • B. Weaknesses • 1. Low Marketing Budget • We find ourselves with a limited budget. • We should not sacrifice funds to areas which we know need specific amounts of capital. • 2. High Cost of Goods Sold • Our Low marketing budget is partly linked to the high costs of goods sold. • We invest greatly in advertising in order to raise our consumer brand awareness.

6. S.W.O.T Analysis • B. Weaknesses • 3. Allowances are too high • Another reason for high costs is that our distributor’s allowances are high. • Very beneficial to have our products at the consumer’s eyelevel in order for them to be exposed to our products.

7. S.W.O.T Analysis • C. Opportunity • 1. Expansion of product line • Ever-growing market gives us the opportunity to expand our product line. • Introduction of two new products AllRound + and Allstar in the last five periods. • 2. Acquisition of Baby Boomer Market • With the aging of this large generation, the demand for Pharmaceuticals will increase greatly.

8. S.W.O.T Analysis • C. Opportunity • 3. Advances in biomedical research and technology • It is very beneficial to utilize this technology in order to produce a product that may potentially revolutionize the market. • 4. Getting products covered by Medicare • Large number of Americans who cannot afford medication. • The consumer and the company would greatly benefit from the Government’s investment.

9. S.W.O.T Analysis • D. Threats • 1. Crowded Markets • Many firms that distribute similar products. • Competition is very intense. • 2. Faulty-product lawsuits • Very difficult and costly to run long-term tests before introducing the product to the market. • Difficult to predict the future side effects of a new product.

10. S.W.O.T Analysis • D. Threats • 3. Government regulations • F.D.A regulations in the United States are quite strict. • Even though these regulations are for the well-being of the consumer, product introduction takes ample time.

11. Marketing Objectives Increase Brand Awareness

12. Marketing Activities • Focused on increasing advertising expenditures • Continuously maintained high awareness of Allround • Launched new products to reach more of the more market (Allround+ and Allright)

13. Marketing Activities • Once Allround reached maturity, we shifted our advertising budget to promote the newer products • Allocated money to the four elements of our ad message: primary, benefits, comparison, and reminder

14. Marketing Objectives Focus on Newer Products

15. Marketing Activities • Concentrated on advertising and distribution • Designated a significant portion of our budget towards advertising • Geared attention towards grocery stores and drug stores, since they generated the most sales • Constantly stayed aware of our position and that of competitors within the market

16. Marketing Objectives Maintain Competitive Shelf Space

17. Marketing Activities • Maintained competitive incentives for direct resellers • Ensured that our products were conveniently accessible to our customers • Provided a constant level of promotional incentives

18. Increasing Profit Margins • ALLROUND: • Currently selling 40% fewer units/year than 10 years ago • Profit up 20% over same period • Profit/unit (before SG&A) up more than 105% over last 10 years

19. Increasing Profit Margins What We Can Do • Increase Prices • Lower Promotional/Volume Discounts • Focus on Selling Direct to Retailers, not Wholesalers

20. Increasing Marketing Department Budget • Currently spending less on advertising than all competitors • Budget has decreased or remained flat each of last four years • This has resulted in extreme difficulty effectively promoting each product

21. How the Marketing Budget Relates to Stock Value • Our stock price today represents an increase of 65% over the • last 10 years • Last year’s advertising budget was 63.5% higher than 10 years • ago

22. Increasing Marketing Department Budget What We Can Do • Demonstrate to Management That Our Marketing Activities Have Directly Resulted in : • Increased profits • Increased profit margins • Successful new-product launches

23. Lessons Learned

24. Profit margins from retailers are greater than those of wholesalers. Allround MSRP: $7.09 Sold to Retailers for: $5.67-$6.38 Wholesale Price: $5.32 Lessons Learned

25. Discount Rates: Direct Retailers: 10-20% Wholesalers: 25%+ Percentage of Sales: Lessons Learned

26. Lessons Learned • Constantly monitor how the marketing budget is being allocated, and make changes as needed.

27. Lessons Learned • Advertising Expenditure for Allround

28. It is essential to be customer-oriented. We kept the price of Allround below inflation for every period. Lessons Learned

29. It is important to segment the market and focus products on under-utilized market segments. ProductMarket Allround Cold Remedies Allround+ Cough Remedies Allright Children’s Cold Remedies Lessons Learned

30. Existing Competitors When Product Was Introduced: Allround: Allround+: Allright: Besthelp, Dripstop, Dryup, Effective, Extra Coughcure, End Coldcure, End+ Lessons Learned

31. Questions?