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Essay / Budget Allocation Analysis: Allstar Budget - 1662
Understand the nature and positioning of the product in the market. As in the case of Allright (which was a unique product), comparing prices with Believe would have done more harm than help. Product • Whenever R&D offers you an opportunity to introduce a line extension or launch a product, a proper analysis should be carried out. • Understanding consumer needs, symptoms, buying process, decision criteria, market segments and competitive performance is essential for making decisions regarding the launch of a new product. As noted in the Stage 2 analysis, awareness of Allround's eroding market share in the young singles and family market segments aided in the decision-making regarding the launch of 'Allround+. • Joint analysis is essential before you can decide which product to launch. Again, the cross section (filter) must be chosen correctly to get the correct numbers. Utility value should be used after considering both price and product factors. Promotion • The promotion report, although available for free, helped decide how much to spend on coupon, although Allstar did not use it.