ALLSTAR SALES COMPENSATION CHANGE ANALYSIS:

Project Background

As the Allround brand continues to mature and excel in the marketplace, the Allstar Company
must determine whether or not to reorganize the sales force compensation structure to eliminate
commission-based payment. Sales force compensation remains a key motivating factor driving
growth and generating existing sales. The effectiveness of the sales force has a direct impact on
our relationships with channel members and is critical to the overall success of the brand.
Keeping strong ties to channel members will remain at the forefront to guarantee primary
placement on shelves and accessibility for our customers. The decision of whether or not to
restructure sales force compensation is a crucial decision that affects all other functions as well
as the overarching strategic objectives of the Allstar Company.

Options

The decision to reorganize the compensation structure presents various potential options:

Move to salary-based compensation

Combine salary and commission based compensation

Keep commission based compensation

Create an opportunity for sales representatives to choose a combination based on sales
managerial discretion

Attractiveness

In order to effectively evaluate the research and strategies discussed, various levels of criteria
should be used when considering each option:

Evaluating if the change in compensation structure is expected to make a return on
investment should remain at the forefront. If sales conversion rates, customer acquisition
and retention are expected to rise, the Allstar Company can expect an increase in revenue
and greater return from the sales force. However, if for example, switching to salary
based compensation adds a large fixed cost that cannot be recovered through increased
sales, this change should not be considered.

If the sales force will become more or less satisfied based on the change in compensation.
If the sales force is expected to become less satisfied with work, the change in
compensation should not be considered. If employees are disappointed in the change,
they will be unmotivated to perform leading to diluted relationships with existing
customers. Also, if sales employees are frustrated with the change, they may also
consider searching for a new position with a competitor, the Allstar Company will incur a
loss, and the sales force morale will suffer.

Equation to determine the best course of action: the incremental amount of money must
be > the negatives that comes with the new program. This equation will ensure that the
most beneficial option is implemented not only for the bettering of the employees but
also the overall strategy of the Allstar Company.

Research Objectives

1. Requirement: Allstar must measure the sales productivity of the 127 sales
representatives on the Allround brand. This will show the dollar amount of sales
generated per salesperson and depict performance of how well our sales people are
motivated to sell.

Research Methods:

This information can be generated through each sales territory manager who has
access to the sales records for each team member. By having a better
understanding of productivity, the Allstar Company will be able to determine if a
change from the current compensation structure is at all necessary.

An analysis of sales reports should be conducted to determine if there is a
correlation between successful areas of sales and type of payment

o Results: If sales productivity is high, a change in compensation structure
may not be needed and sales representatives can remain on a commission
based payment plan. However, by staying on a commission based plan, we
risk representatives focusing on large accounts and improper allocation of
time to smaller format stores in order to gather a larger marginal
percentage of commission.

o Also, we must keep in mind that in order to properly measure productivity
under the current compensation plan we must account for seasonality and
other biasing factors. If measuring the productivity of representatives on a
level playing field becomes too difficult due to external factors induced by
the program such as territory potential and not the reps abilities, more than
one plan should be offered. The compensation program should then be
tailored to each representatives skill sets and personality to foster a
productive environment at the discretion of territory sales managers on a
rep-by-rep basis.

2. Requirement: A survey of sales force employee satisfaction should be taken to measure
preferences and overall satisfaction with the current compensation plan.

Research Methods:

Working with market research experts will ensure the questions are unbiased and
the information gathered generates a general consensus of the sales teams
satisfaction. A common misconception is that companies believe that
compensation equals satisfaction. Monetary compensation is subjected to
diminishing marginal returns, so it is crucial to understand what reps want out of
the program.

o Results: If the survey delivers results that the employees are dissatisfied
with their current compensation and feel unmotivated to perform, a change
in compensation structure should be considered. Questions exploring
salary security, opportunities for advancement, and added benefits such as
extended vacation time or rewards trips should be taken into
consideration. If the consensus is that reps feel insecure and unsatisfied, a
change to salary-based compensation can be considered.

3. Requirement: research is to be conducted with in-store managers, pharmacists, and
doctors to better understand the sales force behavior through the customers eyes. If
customers experience better service from salary-based representatives, this could be
another indication that salary-based compensation ensures successful sales relationships
in this industry.

Research Methods:

This research is to be conducted in an unbiased manner and including all industry
competitors. By gaining an understanding of the effects of compensation from a
customer point of view, we can enhance our own program and align with best-in-
class practices.

4. Requirement: The Allstar Company will be able to implement best industry practices by
analyzing the successes and failures of competitors who have implemented compensation
changes.

Research Methods:

Collect about various companies who have switched from commission-based, to
salary-based compensation. This information can be collected through investing
in market research. More specifically, the Allstar Company is concerned with
employee reactions, increases in productivity and sales, as well as better
relationship management with customers.

o Results: If other pharmaceutical companies that are similar to Allstar
experienced success in the OTC category by switching from commission
to salary based compensation it gives a good indication for Allstar to move
forward with restructuring the program. Above all, our goal is to discover
the motivating factors why these compensation programs were successful
in this industry so we can take those attributes and tailor a compensation
program that will align with our overall strategic focus.












































ALLSTAR ADVERTISING CHANGE ANALYSIS:

Project Background

It is an undisputed fact that a company that fails to reach its target market effectively will suffer
from dramatic loss in market share and profit. Therefore, the trend of decline in the usage of
traditional media outlets is extremely disconcerting for upper management at Allstar, as these
channels have been crucial in the implementation of marketing tactics for Allstars highest
grossing pharmaceutical drug, Allround. For years, the Allround brand has employed television
commercials and print advertisements, promoting its repertoire of cold and allergy medicines:
Allround, Allround+, and the first allergy medicine of its kind, Allright. The success of these
advertisements had been apparent; the cannibalization rate for Allround after the release of
Allround+ was relatively low to market standards, and over a period of 5 years, Allrights
consumer following doubled due to the then effective marketing strategies Allround managers
were using. However, past success experienced with traditional media outlets does not
necessarily dictate the success of the Allround brand moving forward. Changes to more modern
channels of communication and advertisement might be necessary if the management of
Allround wants to maintain their outstanding growth rates and increases in profit. Ample
research must be accumulated regarding the effectiveness of new media techniques, in
comparison to the effectiveness of the traditional media outlets the Allround brand is already
using in order to make an informed decision.

Options

Executives at Allstar and management of the Allround brand are now faced with the following
options:

Pull marketing for Allround products out of traditional media outlets completely
and switch to new media channels

Combine both new and traditional media outlets when marketing Allround
products

Make no change and continue using traditional media outlets, despite the current
market trend.

Of course, a variety of research is needed to analyze which option will prove most profitable to
the Allround brand. But first, a clear definition of what new media entails is crucial when
evaluating this decision context.

New media involves mostly Internet-based activities including social media sites, online
discussion forums, sites that rate and review products, and company funded pages. New media
outlets may also consist of mobile optimized applications or games for consumers personal cell
phones. On a more detailed level, social media is defined by the Merriam Webster Dictionary as,
forms of electronic communication through which users create online communities to share
information, ideas, personal messages, and other content. Websites and applications that allow
for this communication include Facebook, Twitter, and Instagram, to name the top grossing few.
Reviews and ratings can also be posted by consumers on websites such as Yelp.com, generating
word of mouth for your brand (positive or negative), while not paid for by the company. Most
brands in this day and age have a self-titled web domain, where consumers would be able to find
for example, Allrounds Tweets and Facebook posts in a real-time feed, videos promoting
Allrounds different products, or a forum where consumers can make complaints and ask
questions to brand management. New media can also include online advertising in the form of
banner ads pushed to the consumers computers; this online technique creates brand awareness
by analyzing a consumers previous internet searches and posting ads for relating products next
to the web pages he or she surfs afterwards.

Attractiveness

An option is attractive if:

Generates a positive ROI

Reaches Allstars target audience more effectively

Increases awareness of the brand

Research Objectives

1. Requirement: Secondary research looking into market trends will help Allround
management make a decision about how effective new media outlets are.

Research Methods:

Collect data regarding competitors success in new media.

o Results: If Allrounds top competitors are all using new media outlets
instead of traditional ones, Allround will want to consider at least
incorporating new media outlets into their current marketing strategy.
Furthermore, if there are market players who are employing new media
outlets and are experiencing increased sales and marketing responses as a
result, Allround management should also react in implementing marketing
through social media and online forums, instead of TV and print
publications.

Research the different demographics each outlet would reach and collect
quantitative data involving usage and involvement

o Results: If in fact, Allrounds target market cannot be effectively reached
through these trendy, newer media outlets, it will serve as a testament to
staying with Allrounds current, traditional way of marketing. But, if the
opposite is true, and Allrounds target market is involved in social media
activity and online forums, Allrounds brand management must rule out
the decision option of keeping the status quo and make a change.

Analyze the reach of each individual social media site, television channel, and
publication audience and lay out data as to which channels are most effective

o Results: The data might in fact prove that a mixture of both traditional
and new media marketing is best. It also might show that traditional
marketing efforts are now completely ineffective.

2. Requirement: Case studies evaluating other OTC medicine companies and their switch
to using new media outlets will be helpful in analyzing the friction, or ease for that
matter, that other brands have experienced from switching their marketing tactics

Research Methods:

Find companies that have utilized new media in their advertising campaigns and
analyze the success of their campaigns

o Results: The case study could possibly show the potential pay offs for
completely modernizing the Allround marketing strategy. It could also
show the negative results of turning a cold medicines marketing plan
upside down, and would therefore tell Allround management to instead
make gradual changes, and keep implementing the brands traditional
marketing efforts.





















ALLSTAR DEVELOPING MARKETS EXPANSION ANALYSIS:

Project Background

Allstar Brands faces a dilemma in deciding whether or not to enter the Indian, Latin American,
and Chinese marketplaces after reaching maturity in the North American and European markets.
Although previously deemed unprofitable to enter developing markets, the barriers to entry and
success need to be researched in depth and defined more clearly in the event that the opposite is
true. Allstar cannot guarantee what the outcome of entering a market will be, so the information
required will simply focus on whether or not entrance is suitable in each of the three markets
before Allstar takes the next steps.

Options

Three options are being considered in regards to this matter:

Enter the Chinese market
Enter the Latin American market
Enter the Indian market

These markets will be assessed individually and rated on their attractiveness. If all three markets
are sufficient to enter and there are no factors, such as dramatic costs, that prohibit all three
options from being brought to life, then they will all be implemented. If there are limited
resources and only one or two can be chosen, the one(s) with the highest ROI will be selected. If
the financial landscape allows for Allstar to enter more than one attractive market (or all
attractive markets), further action will be set in motion to execute a plan. If none of the options
are attractive, then none will be implemented. Only after all possibilities have been explored
management will analyze the research and decide on the option that is most attractive.

Attractiveness

An option is attractive if research indicates that it:

adheres to the local laws of each market involved without compromising Allstars home-
based ethical/legal standards of no bribery, no blackmailing, and no danger to the
environment or to the people who live in relative communities

generates a positive ROI

Research Objectives


For all three markets there is a need to understand local laws and policies, safety, demand, and
production and distribution costs in each marketplace.

1. Requirement: Regions should be safe and politically stable upon market entry. This
research must be done first because it will determine the feasibility of market entrance above
all else. Verify that each country is stable and safe enough before gathering any other
research, and if it is not, remove this country from consideration.

Research Methods:

Hire political consultants outside of Allstar to determine what local laws and policies
entail in each area. More specifically, find out the laws of ownership from foreign
countries, political atmosphere, threats of uprisings against the government, and
crime statistics per region. This information will allow Allstar to see if the
communities will be an acceptable place to begin business while keeping a safe work
environment for employees.

o Results: if any of the findings negate the possibility of entering the said
market, eliminate this market from investigation so as not to endanger the
welfare of the Allstar community in completing the plan.

Research information about likelihood of expropriation and the prospect of unethical
behavior in business in each region from data suppliers and consultants. Also, contact
companies who have already done business in each area and ask for the same
information to gain a first-hand perspective of the matter. Look for advice from
current players in the market about business interactions.

o Results: if threat of expropriation and unethical business dealings is high,
remove this market from consideration. If results yield information that
indicates failure was due to mistakes made by previous players that could be
avoided, take note and further research.

2. Requirement: Prospective markets should reveal positive opportunities for ROI, profits, and
growth to the Allstar brand. This will primarily serve as the basis for a cost-benefit analysis
to determine whether each global venture is financially and strategically secure. If all
requirements are not met, do not continue investment in the given market as it would put
Allstar in an insolvent position.

Research Methods:

Develop an outline of demand forecast to gain knowledge of market size, using both
quantitative and qualitative data. Determine whether each market is big enough to
enter as either a mainstream or niche product. Look into the distribution of population
geographically and age distribution. Also, research amount of illness in regions, what
symptoms are the most dominate, and what citizens are currently doing to combat
these symptoms. This should serve as the measure for profit and market potential.

Analyze different retail channels in each region to see the most effective way to reach
people by consulting with a market research firm that specializes in placing
healthcare products in developing countries

Summarize production costs. Production costs including facility operations, material
costs, employee salaries, and taxes on imports and exports.

Next, sketch the costs of distribution channels and identify which methods are
cheapest and can handle the requirements to transport cold medicine by partnering
with the Allstar Logistics & Distribution Team. Also, gather facts about where the
products can be sold, and how much Allstar may effectively sell in each market. If
there are no existing distribution methods that are parallel to Allstars needs, develop
a cost structure for what it would take to handle distribution on its own. Lastly,
establish who competitors are and the strategies they are currently using in
distribution and product placement.

o Results: prepare a cost-benefit analysis using the information above and
compare it to the budget set forth by the finance department.

If the costs are lower than the benefit (the profits and ROI), pursue
this market.

If the costs are greater than the benefits, but have potential to reverse
roles in the long-run, still pursue the market.

If the costs are greater than the benefits with little to no potential of a
positive ROI in the long-run, do not purse the market