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 distributors allowances are high. Very beneficial to have our products at the consumers 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 Governments 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 years advertising budget was 63.5% higher than 10 years ago

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

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

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

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

29. Lessons Learned It is important to segment the market and focus products on under-utilized market segments. Product Market AllroundCold Remedies Allround+Cough Remedies AllrightChildrens Cold Remedies

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

31. Questions?