Introduction to Phar..
Download
Report
Transcript Introduction to Phar..
Introduction to PharmaSim
Marketing 6202
June 29, 2010
Purposes of PharmaSim
To introduce and reinforce the logical
process of marketing planning
Situation analysis and assessment
Development of integrated plans –
linking strategic and tactical decisions
Monitoring and evaluating results; using
lessons learned in subsequent planning
cycles
Purposes of PharmaSim
To understand that the keys to
profitability are market driven and
customer-focused decisions
To learn by doing in a low stakes
environment
PharmaSim Decision Process
Situation Analysis
Identification of Problems and
Opportunities
Identify and Evaluate Alternatives
Make Decisions
Monitor Results
PharmaSim Environment
Similar to the United States in the Early
1990s
Population = 250 Million
GNP = 2% per year
Moderate Inflation (2-4%)
Over 80% of the population suffered from
some cold-related symptoms in the past year
OTC cold-medicine retail sales = $2B with
growth of 4% per year
5 companies competing in the industry
Competitive Companies
Company
Sales
Brands
Allstar Brands
$355
Allround, 4hr cold liquid
B&B Health Care
$286
Believe, 4hr allergy capsule
Besthelp, 4hr cold capsule
Curall
$199
Coughcure, 4hr cold capsule
Driscoll Corp.
S255
Defogg, 4hr allergy capsule
Dripstop, nasal spray
Dryup, 4hr cold cpasule
Ethik Inc.
$395
Effective, nasal spray
End, 4hr cough liquid
Extra, 12 hr cold capsule
Basic Consumer Needs
Relief of Symptoms
Aches and Fever--------------Analgesic
Runny Nose-------------------- Antihistamine
Nasal Congestion-------------Decongestant
Cough---------------------Cough Suppressant
Chest Congestion-------------Expectorant
Allergy Symptoms------------Antihistamine
Trouble Sleeping--------------Alcohol
Produce Attributes Affecting
Basic Consumer Needs
Side Effects
Drowsiness, Upset Stomach, Alcohol
Form
Capsule, Liquid, or Nasal Spray
Duration
4 to 12 hours
Price
MSRP, Discounts, Channels, Promotions
Consumer Buying Behavior
Is Based on:
Illness/Symptoms
Age
Day vs. Night Use/Work vs. Home Use
Consumer Purchase Process
Awareness
Intention to Buy
In-store Attractiveness
Purchase
Post Purchase Usage/Satisfaction
Repurchase
Segmentation Process
By Illness
Cold
Cough
Allergy
By Demographics
Young singles
Young Families
Mature Families
Empty Nest
Retired
Distribution Options
Retail Outlets
Independent Drugstores------------ 22% of sales
Chain Drugstores----------------------28% of sales
Grocery Stores------------------------37% of sales
Convenience Stores-------------------4% of sales
Mass Merchandisers-------------------9% of sales
Distribution Options
Considerations for Shelf Space,
Stocking & Sales Force:
Margin earned per unit
[volume discounts and promotional
allowances]
Sales volume and turnover rates
Sale Force Influences
Direct and indirect
Co-op advertising funds
Other promotional activity
Preliminary Questions
Who is the likely Allround Customer?
Their likely purchase process
Marketing mix elements-most effective
What advantages does Allround
brand offer?
Who are Allround’s competitors?
Preliminary Questions
What do you think of Allround’s
pricing?
How many units to maintain net
contribution at $5.00 or $5.60
What are the advantages of a higher
price, lower price?