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Strategy to Senior Management of ABN Company - Case Study Example

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The paper "Strategy to Senior Management of ABN Company" states that the strategic proposal that is presented is based on intensive surveys conducted by both in-house and external agencies and depends upon data collected from consumers and distributors alike…
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Strategy to Senior Management of ABN Company
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Download file to see previous pages The market will grow by 75% to become $ 17.5m over the next 5 years. With the new strategy implementation, ABN is expected to capture 59% of the market at $10.325m. In addition to the increase in sales of the toothpaste, ABN is going to become a ‘top of mind’ brand for green products.
The present government’s attitude towards patent policies, the consumer’s demand for herbal products, and the distributors’ eagerness to carry the new product make this an appropriate time to implement the new project. Also, the competitors will not be able to emulate the product in the near future due to ABN’s process patent, and the organization’s core-competency in pharmacy production.
ABN Ltd. is a leading manufacturer of consumer products – including soaps, oils, toothpaste, toiletries, cosmetics and OTC drugs. Currently, ABN Ltd. has divided its business into Strategic Business Units and does strategic marketing at the unit level. Its toiletries division, especially the toothpaste section is facing immense competition from the rivals who are either continuously differentiating or lowering their prices. As the company’s basic revenues are derived from FMCGs, it becomes imperative that this product line performs well. Also, market trends predict a three-fold increase in industry sales over the next 5 years. ABN Ltd. currently has 35% of the market share of the existing market of $10m. The market leader is Atlas Consumer Products Ltd., which commands the market with a share of 52%, while other major players, DASchaR Inc., has 10%. The rest of the market is proliferated with low price-low quality products, which target the basic needs of the lower-middle-income group. Atlas, being a market leader, has products catering for all price sections, and also has a rich product line for its toothpaste division. Atlas spends overwhelmingly upon advertising and brand building activities. ...Download file to see next pagesRead More
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