Cumulative Net Income and Stock Price
Line Extensions
In period four, we had a line extension of Allround+. We decided that Allround+ would be a child four hour cold liquid medicine. We felt that for children it would be easier to swallow a liquid than to swallow a pill and that there needed to be a separate cold medicine for children since adult cold medicine may be too strong for children. We believed that there is a market for this type of product. Also in period three, we had realized that the children’s liquid cold medicine would lead to the least amount of cannibalism of the Allround brand. In addition, there was a recent entry of Coldcure and we felt that the children’s liquid cold medicine would be a good counter to Coldcure.
Cumulative Net Income and Stock Price
The marketing task of the Allround brand management team was to maintain long-term profitability and market share in an increasingly competitive and changing environment. With great enthusiasm, Team B set out to do the job. Each member had separate assignments, but all were concerned with the performance of the Allround brand and any new brands that might be forthcoming. The group continually kept in mind that all decisions are interrelated and must be considered in context. Net income and stock price are good benchmarks to compare performance over the product life cycle. Table C4 in Appendix C summarizes net income, cummulative net income and stock price for each period. The changes in net income and the stock price are illustrated in graph format in Appendix B.