Defining the Problem:
Since the admittance of Aspirin, the over-the-counter medicine (OCM) market has become highly saturated and highly competitive. One brand struggling to find the white space and remain an all-round market leader is Allround. They remain a frontrunner in many market areas including: brand awareness, brand trials, most frequently purchased, and conversion ratio. Where they start to fall down the market ladder is in their retention ratio. They are trailing by 3.4% in retention, which Allround’s brand assistant believes could be because of “new brands and brands that fill very specific needs often have high retention rates than brands that are mature or not highly targeted” (Pharmasim 20). With the raised competition in the cold medicine department our retention ratio will lower with the abundance of options for the specific consumer. The problem lies in how Allround becomes the retention ratio market leader in a highly competitive market.
Another problem falls within the consumer’s health concerns and their access to data through the worldwide web and word-of-mouth. When choosing an OCM product, consumers may look at the ingredients, side effects, and what specifically it will cure and/or treat. Side effects are of specific concern and consumers mostly mentioned “drowsiness due to antihistamines or alcohol” as a “negative side effect” (Pharmasim 17). Allround uses both of these ingredients in their formula. Although trying to promote it as a mostly nighttime product, this can further segment their product and deter consumers from using it. Along with those two side effects that come with antihistamines and alcohol, Allround also uses analgesics, decongestants, and cough suppressants at the maximum dosage allowed for this cold medicine. People are becoming more wary of this “shotgun approach” as they want to live a healthier lifestyle