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PharmaSim Marketing Strategy

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by

Tania Dowdy

on 27 February 2013

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Transcript of PharmaSim Marketing Strategy

AllStar Pharmaceuticals Period 0 Key Takeaways Key Takeaways Sales force increase
Not increasing price effected price increases in subsequent periods Key Takeaways Decline in stock price
Learning curve of sales support and its effect on new product success
Consistent promotional allowance for some channels, including independent drug stores
Decline in marketing efficiency and revenue due to high promotional expenditures Key Takeaways Increase in Allround's price
Coupon budget dependent on redemption rate
Co-op advertising budget
Misstep in Allround symptom targets Team 4 Marketing Strategy Allround & Allround+: Young and mature families
Gained 34.6% of the cold market, $555m
Gained 25.4% of cough market, $117m in sales
Allright: Young Singles, Empty nesters and retirees.
Gained 16.3% of nasal market, $44m in sales


Product launches:
Allround+ (cough suppressant)
Allright (cold nasal spray)
Limited momentum due to results of year two
Shifted Allround's pricing strategy Allstar Segmentation: Key Decisions: Key Missteps: Key Takeaways Indirect channels conduct 35% of Allround+ business, thus increasing wholesaler support to 11 really helped business to grow. Key Takeaways To reevaluate symptom targets (i.e. allergy)
Find a balance in promotional spending Final Analysis Results Increase price of Allround by the inflation rate to maintain the product's premium position
Increase in volume discount for 2500+ to move the largest group of consumers into a larger purchase quantity category Period 1 Results Price: $5.39
Manufacturer Sales: $422.1M
Product Contribution: $167.5M
Gross Margin: 47.2%
Capacity Utilization: 85.1
Net Income: $85.5M
Stock Price: $48.51 Price: $5.59
Manufacturer Sales: $450.3M
Product Contribution: $193.5M
Gross Margin: 51.4%
Capacity Utilization: 101.8
Net Income: $106.5M
Stock Price: $56.50 Period 2 Results Price: $5.79
Manufacturer Sales: $446.6M
Product Contribution: $183.3M
Gross Margin: 50.5%
Capacity Utilization: 97.4
Net Income: $90.0M
Stock Price: $47.50 Period 3 Results Price: $5.79
Manufacturer Sales: $479.5M
Product Contribution: $205.1M
Gross Margin: 49.5% Period 4 Results Price: $5.89
Manufacturer Sales: $501.6M
Product Contribution: $219.7M
Gross Margin: 49.3% Price: $5.99
Manufacturer Sales: $76.3M
Product Contribution: $14.6M
Gross Margin: 51.9% Period 5 Results Price: $6.15
Manufacturer Sales: $511.2M
Product Contribution: $231.9M
Gross Margin: 50.0% Price: $6.39
Manufacturer Sales: $109.3M
Product Contribution: $32.7M
Gross Margin; 53.2% Price: $5.39
Manufacturer Sales: $18.8M
Product Contribution: $-11.1M
Gross Margin; 60.1% Period 6 Results Price: $6.45
Manufacturer Sales: $555.2M
Product Contribution: $259.2M
Gross Margin: 50.8% Price: $6.95
Manufacturer Sales: $117.2M
Product Contribution: $38.5M
Gross Margin: 55.0% Price: $5.61
Manufacturer Sales: $44.0M
Product Contribution: $6.4M
Gross Margin: 58.6% Price: $5.79
Manufacturer Sales: $38.0M
Product Contribution: -$1.9M
Gross Margin: 51.8% Allround Allround+ Allround Allround+ Allround Allround+ Allright Allround Allround+ Allright Special Decision Conjoint analysis showed that our target segment in the cold category preferred the option to drop alcohol.
Recommendations survey showed that 3.1% physicians and pharmacists would recommend Allround for allergy symptoms.
Physicians attack the multi-symptom "shot-gun" approach as providing excessive medication in many circumstances. Drop Alcohol Final Results Special Decision Coughing and chest congestion ranked relatively high in reported symptoms in the previous period
Allround+ had the potential to perform better than Coughcure because of its formulation.
The cough segment was the second largest revenue source in the OTC market.
Hand off consumers between AllStar brands Special Decision Current nasal spray market (low price and low effectiveness)
Heavy competition in the cold and allergy markets
Introducing another cold medicine could lead to the possible cannibalization of Allround
Conjoint analysis of segments (young singles, empty nesters and retired) in the cold market Conservative pricing to focus on volume growth
Failure to maximize promotional resources And, if we could start over... Capacity Utilization: 112.9%
Net Income: $102.2M
Stock Price: $60.36 AllStar Brands AllStar Brands Capacity Utilization: 106.1%
Net Income: $121.7M
Stock Price: $72.12 AllStar Brands Capacity Utilization: 112.4%
Net Income: $129.9M
Stock Price: $81.64 Capacity Utilization: 105.1%
Net Income: $169.0M
Stock Price: $103.23 AllStar Brands
Full transcript