Pharmasim PresentationPharmasim Presentation

Group 2Group 2

Mission StatementMission StatementAllright is a leading Pharmaceutical company founded in Allright is a leading Pharmaceutical company founded in providing a quality product at a competitive value. Our providing a quality product at a competitive value. Our success is attributed to an ongoing commitment from our success is attributed to an ongoing commitment from our management team and support from our stockholders. management team and support from our stockholders. Providing over ten years of relief to our customers has Providing over ten years of relief to our customers has been our highest priority. Our market shares have been our highest priority. Our market shares have increased annually and research has yielded a new increased annually and research has yielded a new product to introduce every 4 years. Allright continues to product to introduce every 4 years. Allright continues to provide promotional items for its retailers and clientele provide promotional items for its retailers and clientele alike to help reduce costs and bring in new customers. alike to help reduce costs and bring in new customers. Looking toward the future, Allright will continue its Looking toward the future, Allright will continue its success with a well balanced marketing plan and remain success with a well balanced marketing plan and remain an industry benchmark for years to come. an industry benchmark for years to come.

Marketing ObjectivesMarketing Objectives

Increase Brand Trials for Allround Increase Brand Trials for Allround to 85%to 85%

The company should focus on reaching that goal The company should focus on reaching that goal within three years within three years Brand Trials for Allround is at 59.7%, and our Brand Trials for Allround is at 59.7%, and our most frequently purchased is at 21.8%most frequently purchased is at 21.8%– If the Brand Trials are increased to 85% then in ratio If the Brand Trials are increased to 85% then in ratio

to how many people most frequently purchase to how many people most frequently purchase Allround now, we can expect it to be around 31.04%Allround now, we can expect it to be around 31.04%

– However the retention ratio is still the same in this However the retention ratio is still the same in this case so you should focus on having the most case so you should focus on having the most frequently purchased to be at 35%, which makes the frequently purchased to be at 35%, which makes the resulting retention ratio 41.2%. resulting retention ratio 41.2%.

Reach a stock price of $150.00Reach a stock price of $150.00

Try and accomplish this in three yearsTry and accomplish this in three yearsThere has been a steady increase in our There has been a steady increase in our stock price over the last six years stock price over the last six years – Allstar’s stock price went from $30.94 to Allstar’s stock price went from $30.94 to

$110.00 in that time $110.00 in that time

Allright’s Brand Awareness to be at Allright’s Brand Awareness to be at 75%, and the Brand Trials to be at 75%, and the Brand Trials to be at

least 40% least 40% Since Allright is a product that is in a fairly new Since Allright is a product that is in a fairly new category of the market, and we have the same category of the market, and we have the same symptom relief as Defogg, we should get the symptom relief as Defogg, we should get the Brand Awareness and Brand Trials for Allright to Brand Awareness and Brand Trials for Allright to both be increased both be increased – This should be expected to occur over the next five This should be expected to occur over the next five

years years If Allstar can reach these numbers, then the If Allstar can reach these numbers, then the most frequently purchased for Allright should most frequently purchased for Allright should hopefully increase to around 20% hopefully increase to around 20% – This would help in getting Allstar to be a leader in the This would help in getting Allstar to be a leader in the

4 hr Allergy Capsule segment of the market, 4 hr Allergy Capsule segment of the market, especially since this is a new area especially since this is a new area

Put competition out of businessPut competition out of business

Our main competitors for Allright are Our main competitors for Allright are Believe and Defogg Believe and Defogg – Believe is not as strong as Allright or Defogg Believe is not as strong as Allright or Defogg

which have the same ingredients which have the same ingredients – You should focus on putting Believe out of You should focus on putting Believe out of

business within two years and Defogg out of business within two years and Defogg out of business within five years business within five years

Increase sales forceIncrease sales force

Our company just opened up a new plant Our company just opened up a new plant Within the first year the total sales force Within the first year the total sales force should be increased from 260 to 300 should be increased from 260 to 300 One way to figure out how to disperse One way to figure out how to disperse direct sales force is to buy the channel of direct sales force is to buy the channel of sales report sales report – divide the sales in each category by the total divide the sales in each category by the total

sales and multiply that number by the total sales and multiply that number by the total number of people in the sales force number of people in the sales force

Increase Manufacturer sales to a Increase Manufacturer sales to a billion dollars a yearbillion dollars a year

This should occur in the next two years.This should occur in the next two years.Our total Manufacturer sales our currently Our total Manufacturer sales our currently at 836.9 million dollars a year at 836.9 million dollars a year – With production up, if the sales force is in the With production up, if the sales force is in the

right place then it should not be hard to right place then it should not be hard to accomplish this goal accomplish this goal

New ProductNew Product

With respect to the Product Life Cycle, a With respect to the Product Life Cycle, a new product should be introduced within new product should be introduced within the next 2-4 years depending on how the next 2-4 years depending on how things are going with Allround+ and Allright things are going with Allround+ and Allright – We can put money form Allround which is a We can put money form Allround which is a

star in the BCG Matrix and into the new star in the BCG Matrix and into the new product and hopefully get a cash cow or product and hopefully get a cash cow or another star to come out of it. another star to come out of it.

Increase PriceIncrease PriceThe prices of Allround, Allstar. And Allround+ The prices of Allround, Allstar. And Allround+ should all be increased annually, in correlation should all be increased annually, in correlation to inflation to inflation – Inflation should not outweigh the price increase for Inflation should not outweigh the price increase for

Allround at all because it is still our leading product Allround at all because it is still our leading product and has the highest percentage of most frequently and has the highest percentage of most frequently purchased along with having the most symptom relief purchased along with having the most symptom relief

The prices for Allround+ and Allright should not be The prices for Allround+ and Allright should not be outweighed by inflation either, but be more careful in outweighed by inflation either, but be more careful in how much the prices are raised each year, because how much the prices are raised each year, because these products are still fairly new and until the Most these products are still fairly new and until the Most frequently purchased percentage is at least 40% the frequently purchased percentage is at least 40% the price should stay closer to inflation increase.price should stay closer to inflation increase.

SWOT AnalysisSWOT Analysis

StrengthsStrengths

Allstar brand’s well-known brand name Allstar brand’s well-known brand name – has brand awareness of 76.1% and Allround has brand awareness of 76.1% and Allround

+ has an awareness of 57.3%. + has an awareness of 57.3%. – 15.9% purchased Allround, 5.8% purchased 15.9% purchased Allround, 5.8% purchased

Allround +, and 5.7% purchased Allright Allround +, and 5.7% purchased Allright Research and development team Research and development team – Allround leading in symptom relief, Allround + Allround leading in symptom relief, Allround +

is third and Allright in the top is third and Allright in the top – Allstar brands’ have 3 of the highest 6 Allstar brands’ have 3 of the highest 6

retention ratios at 36.5%, 32.5%, and 44.3% retention ratios at 36.5%, 32.5%, and 44.3%

Strengths Cont.Strengths Cont.Promotions overall, especially trial sizes and coupons Promotions overall, especially trial sizes and coupons – Allround has the highest conversion ratio Allround has the highest conversion ratio – For all three brands, about half of our coupons were redeemed For all three brands, about half of our coupons were redeemed – Higher percentage of people purchased all of our products than Higher percentage of people purchased all of our products than

intended intended

High capacity utilization of 105.9% High capacity utilization of 105.9% – Decreases the per unit cost Decreases the per unit cost – Higher than that of competing companies Higher than that of competing companies – Helps balance out our high fixed costs Helps balance out our high fixed costs

Direct sales force Direct sales force – Highest average square feet of shelf space all channels Highest average square feet of shelf space all channels – Allstar brands’ have highest percentage of retail sales compared Allstar brands’ have highest percentage of retail sales compared

to products in their categories to products in their categories

WeaknessesWeaknessesAllstar’s pricing Allstar’s pricing – Doing well in symptom relief and have the highest Retail and Doing well in symptom relief and have the highest Retail and

Manufacturer sales Manufacturer sales – Highest promotional allowance and cost of good sold Highest promotional allowance and cost of good sold – Gross margin is lower than both B&B and Ethik. Gross margin is lower than both B&B and Ethik.

Allright’s brand awareness at 28.5% Allright’s brand awareness at 28.5% – Other brands in the same category have higher awareness percentages Other brands in the same category have higher awareness percentages – Our retention ratio is higher than Believe & Defogg Our retention ratio is higher than Believe & Defogg – High unit cost, thus a higher brand awareness would help make profit High unit cost, thus a higher brand awareness would help make profit

Obtaining involvement from customers in co-op ads and point of Obtaining involvement from customers in co-op ads and point of purchase displays purchase displays – Allround has 0.4% participating in co-op ads & 1.3% point of purchase Allround has 0.4% participating in co-op ads & 1.3% point of purchase – Allround + has 0.5% in co-op ads & 3.1% in point of purchase Allround + has 0.5% in co-op ads & 3.1% in point of purchase – Allright has 0.8% in co-op ads & 4.2% in point of purchase Allright has 0.8% in co-op ads & 4.2% in point of purchase – Higher percentages result when we put in more money Higher percentages result when we put in more money

Weaknesses Cont.Weaknesses Cont.

OCM group’s decision to drastically lower advertising OCM group’s decision to drastically lower advertising expenditures on Allround from 20 million to 5 million expenditures on Allround from 20 million to 5 million between periods 4 and 7 between periods 4 and 7 – Besthelp raised their advertising, and their brand awareness Besthelp raised their advertising, and their brand awareness

rose to 6.7% higher than us rose to 6.7% higher than us – Allround is a star Allround is a star

0102030405060708090

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Advertising Expenditures(Millions of Dollars)

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AllroundBesthelp

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91

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23456 10

9870

65

32

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4

S&R

OpportunitiesOpportunitiesConsumer demand to relieve symptoms Consumer demand to relieve symptoms – Product effectiveness is the most important in Product effectiveness is the most important in

decision-making decision-making – In the past year the worst symptoms were aches, In the past year the worst symptoms were aches,

chest congestion, and coughing chest congestion, and coughing – Allround is the only product with analgesics, Allround is the only product with analgesics,

expectorants, and cough suppressants expectorants, and cough suppressants Produce a cough liquid Produce a cough liquid – Allstar does not have available Allstar does not have available – None of the cough liquids have expectorants and None of the cough liquids have expectorants and

cough suppressants cough suppressants – 61.6% people reported coughing as a symptom 61.6% people reported coughing as a symptom

Opportunities Cont.Opportunities Cont.Industry growth rate is at 10.1% Industry growth rate is at 10.1% – Health is a big trend Health is a big trend – No invention is underway that would eliminate the need for OCM No invention is underway that would eliminate the need for OCM – Allround, Allround +, and Allright have 16.7%, 5.6% and 5.4% Allround, Allround +, and Allright have 16.7%, 5.6% and 5.4%

respectively respectively – Allround is a star in the BCG Matrix, but Allround + and Allright Allround is a star in the BCG Matrix, but Allround + and Allright

are question marks are question marks

Higher percentage increase in sales prices than the Higher percentage increase in sales prices than the inflation rate of 4.4% inflation rate of 4.4% – Our prices are already relatively low Our prices are already relatively low – Chance to make up for our high promotional costs and fixed Chance to make up for our high promotional costs and fixed

costs without making a huge price jump compared to other costs without making a huge price jump compared to other brands brands

ThreatsThreatsEthik is a threat to Allstar Ethik is a threat to Allstar – They have the highest gross margin and net income, They have the highest gross margin and net income,

and their stock price is second toand their stock price is second to ours ours – End + and Extra combined are receiving double the End + and Extra combined are receiving double the

amount of manufacture sales than Allround + amount of manufacture sales than Allround + – Ethik may create products in other categories Ethik may create products in other categories Besthelp is a specific threat to Allround Besthelp is a specific threat to Allround – Its symptom relief fourth, but it is $1.20 cheaper than Its symptom relief fourth, but it is $1.20 cheaper than

Allround Allround – Not as many people intend to purchase Besthelp as Not as many people intend to purchase Besthelp as

Allround, but they are equal in percentage of sales Allround, but they are equal in percentage of sales – Besthelp has a greater brand awareness Besthelp has a greater brand awareness

Threats Cont.Threats Cont.

Defogg is a threat to Allright Defogg is a threat to Allright – Have the same ingredients in the same form, Have the same ingredients in the same form,

and the same symptom relief and the same symptom relief – Defogg has a higher price than Allright, but Defogg has a higher price than Allright, but

they have better brand awareness and athey have better brand awareness and a higher conversion ratio. higher conversion ratio.

The close to full capacity utilization of The close to full capacity utilization of Ethik, B&B and even CurallEthik, B&B and even Curall– May try to price aggressively or increase May try to price aggressively or increase

marketing to acquire more market share marketing to acquire more market share

Marketing ActivitiesMarketing Activities

Increase Brand Trials for Allround Increase Brand Trials for Allround to 85%to 85%

In order to achieve an increase in brand In order to achieve an increase in brand trials for Allround to 85%, we must use trials for Allround to 85%, we must use marketing tools to raise awareness and marketing tools to raise awareness and create a demand. create a demand. – Coupons are effective for converting our Coupons are effective for converting our

competitors’ customers to our own product by competitors’ customers to our own product by offering a comparable product at a reduced offering a comparable product at a reduced price price

– Trial sizes are an efficient way of getting our Trial sizes are an efficient way of getting our product into the hands of the consumer product into the hands of the consumer

Reach a stock price of $150.00Reach a stock price of $150.00

In order to achieve a stock price of $150.00 in In order to achieve a stock price of $150.00 in the next three years, Allstar must promote is the next three years, Allstar must promote is products proportionate to its sales products proportionate to its sales Allround has now received a new formulation Allround has now received a new formulation and will need to be promoted again as new & and will need to be promoted again as new & improved improved – This will revitalize Allround’s sales and improve the This will revitalize Allround’s sales and improve the

overall condition of the company as a whole overall condition of the company as a whole – Taking this opportunity in to consideration, as well as Taking this opportunity in to consideration, as well as

two new products beginning to ascend through the two new products beginning to ascend through the industry an increased stock price is within reason. industry an increased stock price is within reason.

Allright’s Brand Awareness to be at Allright’s Brand Awareness to be at 75%, and the Brand Trials to be at 75%, and the Brand Trials to be at

least 40%least 40%In order to achieve our objective of making Allright the In order to achieve our objective of making Allright the industry leader in 4hr Allergy Capsules, we must divert industry leader in 4hr Allergy Capsules, we must divert as much sales as possible from the other two competing as much sales as possible from the other two competing products products – Believe’s brand formulation consists of only four units of Believe’s brand formulation consists of only four units of

Antihistamine, whereas Alright consists of the Antihistamine and Antihistamine, whereas Alright consists of the Antihistamine and a decongestant. Therefore comparison ads being run on a decongestant. Therefore comparison ads being run on Believe’s lack of effectiveness and the inferior formulation should Believe’s lack of effectiveness and the inferior formulation should be beneficial to Allright’s share of the market. be beneficial to Allright’s share of the market.

– Alright and Defogg have similar brand formulations and similar Alright and Defogg have similar brand formulations and similar symptom relief, therefore we must compare on the basis of price symptom relief, therefore we must compare on the basis of price and benefit and benefit

Defogg is currently over priced and continues to match inflation to Defogg is currently over priced and continues to match inflation to consistently be just higher than the market average consistently be just higher than the market average

Increase sales forceIncrease sales forceIn order for Allstar to remain an industry leader In order for Allstar to remain an industry leader and continue its growth and profit, its sales must and continue its growth and profit, its sales must also increase each year to consume its available also increase each year to consume its available market sharemarket shareOur sales force is crucial to our products Our sales force is crucial to our products success in the market place and in order to success in the market place and in order to support them correctly, there must be a support them correctly, there must be a proportionate amount of personnel to handle the proportionate amount of personnel to handle the growing volume of orders growing volume of orders – Using the information from the channel of sales Using the information from the channel of sales

report, a proper decision can be made to allot the report, a proper decision can be made to allot the correct amount of sale agents to each team handling correct amount of sale agents to each team handling the different sectors the different sectors

Increase Manufacturer sales to a Increase Manufacturer sales to a billion dollars a yearbillion dollars a year

In order to increase total manufacturer sales to In order to increase total manufacturer sales to one billion dollars a year, a strategy of one billion dollars a year, a strategy of increasing plant size and sales force must be increasing plant size and sales force must be followed. followed. For the past four years, Allright has been For the past four years, Allright has been running its plants at or above capacity. Twice in running its plants at or above capacity. Twice in the past four years Allright has seen an overage the past four years Allright has seen an overage in capacity of 4-5% in capacity of 4-5% – This overage needs to be converted to income used This overage needs to be converted to income used

to build larger and more efficient facilities to build larger and more efficient facilities – Growth in sales force as well as proper allotment of Growth in sales force as well as proper allotment of

sales force has accounted for the substantial boost in sales force has accounted for the substantial boost in Allstar’s income Allstar’s income

Introduce New ProductIntroduce New Product

In accordance with relative product life-In accordance with relative product life-cycles a new product should be introduced cycles a new product should be introduced within the next four years in order to within the next four years in order to sustain market competitiveness and sustain market competitiveness and broaden growth throughout the industry broaden growth throughout the industry – Possible new products could be a Possible new products could be a

reformulated version of Allround with a reformulated version of Allround with a decreased amount of alcohol marketed decreased amount of alcohol marketed toward child use toward child use

Increase PriceIncrease PriceIn order for Allright to recover profits lost to In order for Allright to recover profits lost to inflation, the prices of its products must be inflation, the prices of its products must be reevaluated annually reevaluated annually – Inflation has typically increased 3-6% yearly for the Inflation has typically increased 3-6% yearly for the

past ten yearspast ten years– We have found that the best strategy is to adjust each We have found that the best strategy is to adjust each

price to the previous year’s inflation rate. This allows price to the previous year’s inflation rate. This allows Allright to remain competitive while recovering any Allright to remain competitive while recovering any potential “losses” due to rising inflation potential “losses” due to rising inflation

– Our industry trade-off grid has shown our prices have Our industry trade-off grid has shown our prices have remained in the optimal zone for several years remained in the optimal zone for several years

– Our customers are receiving a quality product at a Our customers are receiving a quality product at a comparable value comparable value

Lessons LearnedLessons Learned

Stock PriceStock Price

The most obvious way to tell how well the The most obvious way to tell how well the company is doing is the change in the company is doing is the change in the stock price stock price Poor decisions will cause the stock price Poor decisions will cause the stock price to drop, and as well as the opposite to drop, and as well as the opposite Poor decisions made by us early allowed Poor decisions made by us early allowed us to ratify the situation and make our us to ratify the situation and make our stock price climb out of the basementstock price climb out of the basement

Stock Price Cont.Stock Price Cont.

Early poor decisions Early poor decisions caused our stock caused our stock price to drop from price to drop from 48.13 all the way 48.13 all the way down to 30.94down to 30.94During fifth year, During fifth year, figured out problem figured out problem and price rose from and price rose from 30.94 all the way to 30.94 all the way to 110.54 over the past 110.54 over the past five yearsfive years

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First Year MistakesFirst Year MistakesLowered PriceLowered Price– We figured that if we were the leading company in the market for We figured that if we were the leading company in the market for

symptom relief we needed to lower our price in order to try and symptom relief we needed to lower our price in order to try and raise our most frequently purchased percentage, ultimately raise our most frequently purchased percentage, ultimately raising sales. raising sales.

– Not only did sales decrease, but lowering price caused a Not only did sales decrease, but lowering price caused a shortage in budget down the line.shortage in budget down the line.

Increased Sales Force but not Advertising Budget.Increased Sales Force but not Advertising Budget.– We didn’t put any money into Advertising for AllroundWe didn’t put any money into Advertising for Allround– Caused us to miss out on sales Caused us to miss out on sales

Decreased Promotional AllowanceDecreased Promotional Allowance– Should have never decreased promotional allowance for a new Should have never decreased promotional allowance for a new

product. product. – Allround was still a new product. Should have taken opportunity Allround was still a new product. Should have taken opportunity

to get name out in the market but didn’t.to get name out in the market but didn’t.

Second Year MistakesSecond Year Mistakes

Made many of the same decisions as year one.Made many of the same decisions as year one.– Should have learned form mistakes earlyShould have learned form mistakes early

Increased PriceIncreased Price– Increased the price, but not even enough to deal with Increased the price, but not even enough to deal with

inflation so ultimately served no purposeinflation so ultimately served no purpose

Increased Promotional AllowanceIncreased Promotional Allowance– Should have been done the year before, resulted in a Should have been done the year before, resulted in a

catch up rather than company growth.catch up rather than company growth.

Year ThreeYear ThreeDecided not to start a new productDecided not to start a new product– This was not necessarily the incorrect thing to do, but This was not necessarily the incorrect thing to do, but

it did contribute to the large drop in our stock price it did contribute to the large drop in our stock price over the year over the year

– Starting a new product takes a lot of money and we Starting a new product takes a lot of money and we didn’t think it would be beneficial to the company if we didn’t think it would be beneficial to the company if we spent money we didn’t know weather or not we would spent money we didn’t know weather or not we would make back quickly.make back quickly.

Did not change Pricing DiscountsDid not change Pricing Discounts– Our discounts weren’t large enough to make it worth Our discounts weren’t large enough to make it worth

buying larger quantities buying larger quantities – Lost a lot of wholesaler business as a result of this Lost a lot of wholesaler business as a result of this

Year FourYear Four

Finally introduced Allround+Finally introduced Allround+– Took money from budget of Allround in order to Took money from budget of Allround in order to

increase the promotion and advertising of Allround+increase the promotion and advertising of Allround+

We changed our discount percentages to try and We changed our discount percentages to try and make up for the loss we incurred the year before make up for the loss we incurred the year before Changed was our sales force lay out.Changed was our sales force lay out.– When looked at other companies, found we were When looked at other companies, found we were

concentrating on little areas like convenience stores concentrating on little areas like convenience stores and not as much on grocery stores and wholesalers.and not as much on grocery stores and wholesalers.

Year Four Cont.Year Four Cont.Dispersed Advertising Budget according to Dispersed Advertising Budget according to where the product fell in the Product Life Cycle.where the product fell in the Product Life Cycle.We made sure to push coupons for Allround We made sure to push coupons for Allround because it had been on the market for awhile, because it had been on the market for awhile, and push trial sizes for Allround+ because it was and push trial sizes for Allround+ because it was a brand new product and we wanted people to a brand new product and we wanted people to try it.try it.Didn’t raise the price of AllroundDidn’t raise the price of Allround– it was already on the best fit line for price and it was already on the best fit line for price and

symptom relief symptom relief – Caused us to have a loss the following year because Caused us to have a loss the following year because

didn’t recover initial cost of launching Allround+didn’t recover initial cost of launching Allround+

Year FiveYear FiveForced to make budget cutsForced to make budget cuts– Took money away from the advertising budget of Allround but Took money away from the advertising budget of Allround but

not Allround+ because it was still a new product.not Allround+ because it was still a new product.– Decreased our sales force as little as possibleDecreased our sales force as little as possible– If we had suffered a similar loss the following year, the cuts If we had suffered a similar loss the following year, the cuts

would have been a big problem.would have been a big problem.

Increased PriceIncreased Price– Decided that an increase of between 30 and 40 cents each year Decided that an increase of between 30 and 40 cents each year

would keep us ahead of inflation and increase our budget from would keep us ahead of inflation and increase our budget from year to yearyear to year

We made sure to shift the advertising budget to focus We made sure to shift the advertising budget to focus more on benefit and comparison for Allround and more on benefit and comparison for Allround and primary and benefit for Allround+. primary and benefit for Allround+.

Year Six through TenYear Six through Ten

Introduced yet another product, Allright.Introduced yet another product, Allright.– The increase in our budget over the previous year The increase in our budget over the previous year

allowed us to do so.allowed us to do so.– New products result in more sales in the long runNew products result in more sales in the long run

Increased the price of all products every year.Increased the price of all products every year.We changed the advertising allowance We changed the advertising allowance according to where the products were in their life according to where the products were in their life cycles cycles – This allows the correct type of advertisements for This allows the correct type of advertisements for

optimum sales optimum sales

Year Six through Ten Cont.Year Six through Ten Cont.We made sure to have at least a seven percent We made sure to have at least a seven percent increase in the pricing discounts for all of the increase in the pricing discounts for all of the products.products.– We decided to give Wholesalers an extra couple of We decided to give Wholesalers an extra couple of

percent because they were generating most of our percent because they were generating most of our sales so we felt it was important to give them a bigger sales so we felt it was important to give them a bigger discount discount

It is important to increase the advertising It is important to increase the advertising budgets proportionally every year budgets proportionally every year – A large increase is not necessary because all of the A large increase is not necessary because all of the

products have been on the market for awhile and it is products have been on the market for awhile and it is more important to increase your sales force every more important to increase your sales force every year year

Year Six through Ten Cont.Year Six through Ten Cont.

As products get older, it is better to take As products get older, it is better to take money away from product displays and money away from product displays and co-op advertising and put it into coupons co-op advertising and put it into coupons – We found that co-op advertising is a waste of We found that co-op advertising is a waste of

money. Only about one percent of the sales money. Only about one percent of the sales population utilized co-op advertising.population utilized co-op advertising.

– Trial sizes are only necessary early in the life Trial sizes are only necessary early in the life of a product of a product