Decision Number : 5

Names: Ashley Lucas, Brittney Sutherin, Laramie Sisco, Amanda Clark

Date: Feb 16, 2019

Decision:
1. Decision Planning: What variables changed and why?
Advertising - We decreased our advertising budget for Allround from $21 million to $19 million and increased
our advertising budget for Allround+ from $10 million to $12 million.
Sales Force - We chose to increase our sales force in several areas because we are not in line with our
competition where sales force is concerned. We increased independent drug stores, chain drug stores, and grocery
stores by 2 sales people each and left the rest the same.
Pricing - We increase our price for both Allround and Allround+ because of inflation. In addition, we
increased the price of Allround+ because it was unerpriced to begin with. The new prices are Allround - $5.62 and
Allround+ - $5.30.
Promotion - We dropped our coupon budget for Allround to $3.5 million. In addition, we decided to make
changes to the promotions budget for Allround+. The changes we made were to increase the promotions allowance
to 15%, decreased the coupon budget to $1.5 million and increased the co-op to $2 million.
Special - no special decision this period.
Reports - we purchased the pricing survey and the marketing surveys to help us make our decisions.
2. What are the goals or expectations from the variables which changed?
Our goals for this period include increasing our manufacturers sales by a minimum of 4% while increasing our
net income by a minimum of 2%.
3. General Comments:

Decision Results:
1. What worked?
I think raising our prices for Allround and Allround+ was a good decision on our part. Our profitability was up this
quarter and I believe it is because of our pricing strategy. Also, hiring only a few more people helped us to better
educate our consumers on our products and their benefits and how they work.

2. What was not successful? Why?

We are losing market shares still, but we are not sure why.

3. How do the results determine your strategy forward?

This quarter, we decided to change little and not worry so much about why we are doing what we have decided.
This seemed to have worked this year, so we will continue to change minimally and try not to over think our
decisions.

4. Attach the graphed results for performance towards bonus objectives.

 
5. General Comments.