Budget Allocation Analysis: Allstar's Budget

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Budget Allocation: After learning from the mistakes in the stage 1, Allstar changed its Budget Allocation method to be more in line with the market trend, and also factored the lifecycle stage of the product. The allocation of the budget in Periods 3,4 & 5 was Advertising 35%, Promotion 35% and Sales Force 30%. Allstar tried to balance its budget effectively and it showed up in the Social Media comment section, “No trouble finding it, Good price, Good Value, like the display, Easy to find”. Similarly the value for Allround+ was being noticed by the targeted segment. Sales Force was adjusted based on the reports of shopping habits. Increasing point of purchase promotions and detailers in the previous stage helped Allround to gain on Shelf …show more content…

However, Allstar brand management took care in targeting advertising message and promotions. Advertising message was based on symptoms and relevant market segment. E.g. Allright was targeted only for ‘Allergy’, Allround+ was targeted only on Cold, young Singles and family. Additionally promotion of benefits was very specific. Experience and lessons learnt from the previous periods allowed the team to further optimize the message and utilize promotional dollar wisely. Co-op dollars were only spent on relevant channels. Product display discounts was taken off from the convenience …show more content…

Understand the nature and positioning of the product in the market. Such as in case of Allright (which was a unique product) comparing prices with Believe would have hurt more that helped. Product • At any opportunity that R&D provides you to introduce a line extension or launch a product, a proper analysis must be done. • Understanding of the consumer needs, symptoms, buying process, decision criteria, market segments and how the competition is performing is key in making decisions about the new product launch. As discussed in the Stage 2 analysis, realizing the market share erosion of Allround in the market segments Young Singles and Families helped in decision making of launching Allround+ . • Conjoint Analysis is a must before you can decide which product to launch. Again the cross section (filter) must be chosen properly to get the right numbers. The utility value after taking into account both price and product factors must be used. Promotion • The promotion report though available for free helped in decision about how much to spend on coupon, though Allstar did not use this

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