Strategic Recommendations

Mike DevoneySonia Galvez

April 11, 2011

• Track product preferences and sales accruement

• Maintain customer loyalty

• Require online registration

• Available in card or attachable key version

• Discounts on select Abbott products• For every $100 purchase receive 20% off

PromotionsCRM Loyalty Reward Program

• Select publications with high subscription and retention rates

• Broaden target market

• Increase awareness for Nutrition product line• Similac®• Pedialyte®• Ensure®• Ensure Plus®• Glucerna®• Zone®

Advertising

Promotions

Advertising

Promotions

• Direct consumers to site-specific website

• Place on

• Magazines

• Television ads

• Provide information

• New or existing products

• Nutritional content

• Contain nutrition-oriented games on children’s products

Implementation of Q-R Codes

Magazines

Implementation of Q-R Codes

Implementation of Q-R Codes Television

Market Holding

• Maximize profit margin

• Pricing adjusted according to demand

• Enhance company's premium image

• Efficient response to competitors and currency fluctuations

Maintain Pricing Strategy

• Reduce capital expenditures and borrowing• Scale back on discretionary spending

• Negotiate lower prices and rates with suppliers and manufacturers• Beneficial to firm and consumers• Result in lower prices for products

• Reduce costs• Savings will reduce supply chain costs and COGS

• Raise capital through equity shares

Financial Restructuring

Encourage Employee E-blogging

Increase Employee Morale

• Decrease employee turnover

• Create employee comradeship

• Attract prospective employees

• Blog weekly job activities and

public conferences

Source: http://gettyimages.com/

Increase brand awareness

Gain larger market share in nutrition

Obtain broader target market demographic

Age , gender, education, income, ethnicity, lifestyle and geographic location

Consumers price sensitivity ranges from high to low

Alliance with Nike and Avon

Partnerships/Sponsorships

• Recognized brand worldwide in sports industry

• Health-conscious demographic concerned with active lifestyle

• Brands include Cole Haan, Hurley International, Converse Inc. and Umbro

Alliance with Nike

Partnerships/Sponsorships

• Recognized cosmetic company on S&P 500

• Acknowledged for community service and charity

events aimed at improving people’s lives

• Offer trial sizes of products, coupons or discounts

• Reach broader female demographic across U.S.

• Single, married, divorced, widowed women

with or without children

Sponsor the Avon Walk & Run Against Breast Cancer

Alliance with Avon

Partnerships/Sponsorships

Offer Many Different Priced Bundles

Nutrition Product Bundles

• Bundles cheaper than buying individual products

• Creates customer loyalty and brand devotion• Cradle-to-grave brand strategy

• Create word of mouth advertising among family’s and friends

• Include weaker selling products in some bundles to decrease inventory and grow product awareness

Weight Loss Competition (Biggest Loser)

The “Abbott Challenge”

• Customers using only Abbott nutrition products are eligible• Monitored by purchases• Minimum purchase amount required

• Monthly prizes as well as a grand prize for the year• Good publicity and awareness for already flourishing nutrition department

Offer Nutrition and Exercise Plans• Provide a few different nutrition plans Weight Loss - Weight Gain - Get Fit

Live Healthy - Stay Young

• Nutrition Plans include: • Only Abbott products• Meal schedule• Workout regiment

• Push less well known nutrition items

• Receive customer feedback

Nutrition Plans

Current Facebook Page Needs Update

Use Facebook

• Make page more user friendly• Inform public of current news in organization• Tool for customers to communicate with each other and the company• Opportunity to improve image• Ease interaction with customers • Ability to receive feedback on ideas from general public

Continued Growth in Emerging Markets

Global Acquisitions

• Emerging markets expected to grow 3 times rate of developed markets • Acquired Piramal Healthcare Solutions and Solvay in 2010• Became #1 Pharmaceutical company in India• India’s Pharmaceutical market expected to double in next 5years

• Continued pursuit of successful foreign companies• Acquisition’s cheaper than starting up subsidiaries

We would like to thank Abbott Laboratories and Professor Gillespie for their cooperation, help, and feedback. We appreciate all that you have done.

Mike Devoney and Sonia Galvez

Thank You!