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Pharmasim Strategy Recommendation

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Brianna Chavez

on 14 August 2014

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Transcript of Pharmasim Strategy Recommendation

Pharmasim Strategy

Problem & Overview
AllStar Brands’ leading OTC cold medicine Allround is facing a declining market share due to a steady rise in competition and mixed consumer perceptions concerning the side effects of excessive medication.
Alternative #1
Allround line Extension: 12 Hour Capsule

Alternative #2
Alternative # 3
Line Extension, 4 Hour Cough Liquid

Overview of Performance
"In marketing you must choose between boredom, shouting and seduction. Which do you want?"
~Roy H. Williams
Decisions, Decisions...
Alternative #4
Combination of Alternatives #1 and #3
-4 hour liquid cough
-12 hour capsule
Market Share
Manufacturer Sales
Early Success
Product reformulation
Removing alcohol
Social media
Advertisements and message with Allround
-More convenient capsule
-Gives customer a choice
-Charge high price
-Increase market share
-SAME benefits as Allround, will cannibalize sales
-Competing with Dry-Up & Besthelp
-Does not target specific symptoms
-Consumers may not switch from other brand
-Negative perceptions on alcohol
-Gain customers worried about negative side effects
-Recognize customer concerns
-Lose our customers who enjoy the night relief
-Change in effectiveness
-Lose loyalty customers
-Penetrate the ‘cough’ medicine market
-Product diversity
-May improve retention rate since medications that cure specific needs have higher retention rate

- May cannibalize AllAround sales
-R&D Expense
- Growing at the slowest rate
- Increased Competition
Marketing Plan
So,, this was the game plan
What we did right
Initial advertising budget
Observation of market
Response to special decisions
Social Media
What we should have done
1.) Increase Allround’s advertising and sales support
2.) Stay with BMW
3.) Used the whole budget each period
4.) Targeted channels that have more growth potential
5.) Allocated sales force differently
Recommendations to new brand manager
Based on Jim Harvey's speech structures
Special Decisions
Line Extensions
Allround+ Cough Liquid
Increased net income
Low Trade Rating
Period 0
Period 0
- Message
- Symptoms targeted
-Cough, cold, allergy
-Switched to LLC from BMW
- Demographic target
-Initially all
-Young & Mature Families
Corrective Decisions
Decreased promotional allowance for Allround
Increased consumers’ promotion
Reasons for 2nd Severe Drop
Advertisement & Promotion Budget
Reasons for first severe decline
Running overcapacity by 2%
Non-growing sales for Allround
$9M decrease in contribution margin
Stock Price
Pricing Products
Pricing Products
1.) Social Media
2.) Detailing Changes
3.) Price Discrimination
4.) Product Tampering
5.) Special Promotion
Sales decrease of Allround
Low trade rating
Success of Besthelp
Allround promotional allowance
1.) Allocate more R&D and advertisment for Allround
2.) Buy more research!!
Be aware of consumer demands
Runny Nose
Target independent drugstores
Increase production
Global expansion
Case Analysis Summary
Overview of Performance
Decision-Making Strategies
What we did right
What we did wrong
Recommendations to new brand manager
• You may be overspending on promotion for Allround+. Check the Market Promotion report.....

• Retailers are complaining that you are not providing enough promotion allowance for Allround+ compared with the competition.....
Reformulation: remove alcohol
Full transcript