ALLSTAR BRANDS

1. YEAR END REVIEW ALLSTAR BRANDS Todd Nappi (CEO) Tyrone Ottley (Secretary) Zachery Leonard (CFO) Jonathan Saunders (CIO & part-time Janitor)

2. AGENDA • Organizational Overview • Review of Key Objectives • Critical Success Factors • Marketing Strategy • Review of Progress Against Objectives • Lessons Learned • The Future

3. OUR MISSION Deliver professionally endorsed, effective pharmaceutical products for the entire family, while aiming to be the low-cost, brand-name leader for the consumer cold medicine market. All of this must be accomplished while maintaining a profit and steady growth rate for our shareholders.

4. REVIEW OF KEY OBJECTIVES • Keep price increases moderate • Formulate products to optimize appeal to target market • Attain 5-10% annual growth in revenue on all products • Increase stock price 5-10% annually • Maintain strong brand awareness

5. Critical Success Factors • Strong brand awareness • Relatively low prices • Eager and efficient Distribution Network • Dedicated and lively staff

6. Marketing Strategy • Increase product price while staying under inflation percentage • Found avg. inflation rate and increased price slightly lower • Ex. If inflation rate increase prices by 5%, we only went up 3 or 4 %. We also used the .9 rule to make consumers feel better about prices • Reformulate our product • By doing so manufacturing costs were reduced in turn allowing us to offer a low price to our customers • Low prices attracted a larger customer base which allowed us to see a large increase in sales • Release new product to the market • First we researched to see what was currently available in the market to avoid competition • Found that there was only a single 12 hour capsule, so we chose to release a 12 hour “multi” capsule

7. Marketing Strategy cont’d • Release a 3rd product • Goal was to flood the market • Looked for a need in the market. Found that the nasal spray market could be penetrated • Keep advertising budget steady • Used our inflation analysis to help determine our yearly expenditure • Allocated budget percentages based on how long the product has been on the market and other variables such as uniqueness in market • Ex. 12 hour multi didn’t use high percentage of budget towards Comparing or Reminding

8. Marketing Strategy cont’d • Increase stock price 5 – 10% each period • Used all the clues from the marketing update to help us try to obtain this goal • Ex. Inflation rate to adjust prices, Advertising spending, Sales force • Revenue • Monitor revenue for each product • If 5 – 10% growth rate then progressing • Allowed us to drop Allright due to revenue issues

9. Target Markets • Allround • 4 hour multi-liquid • Non alcohol for the kids and families • Low price • Allround+ • 12 hour multi-capsule • Young working adults needing most of the day relief • No problem taking pills • Affordable and most of all effective • Allright • Nasal spray • Middle aged adults • No problem using sprays

10. Sales

11. Revenue

12. Products

13. Stock Price 100 90 80 70 60 Baseline (5%) Price $ 50 Stock Price Baseline (10%) 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 Year Stock Price

14. Market Share

15. Brand Awareness

16. Lessons Learned • Discuss major decisions in depth • As well as points from paper

17. Three Year Outlook • Re-establish our dominant position • Introduce new product

18. Summary • Stock Prices grew 93% • Cum. Net Income of $990 MM • Failed Introduction of Allright • Astounding recovery and refocusing • Thanks