PharmaSimPharmaSimGroup 7Group 7

Brian GambleBrian GambleEduardo PelleranoEduardo Pellerano

Steve CisowskiSteve CisowskiDouglas BeckDouglas Beck

Mission StatementMission Statement

Through innovative drugs and Through innovative drugs and therapies, All-star will provide therapies, All-star will provide superior customer value at a lower superior customer value at a lower premium. We will provide nothing premium. We will provide nothing but the best quality cold products but the best quality cold products available anywhere. Our customers available anywhere. Our customers are held in the highest regard, that’s are held in the highest regard, that’s why All-star remedies are too. why All-star remedies are too.

Marketing ObjectivesMarketing Objectives

Saturate The MarketSaturate The Market Increase the public’s perception of Increase the public’s perception of

All-starAll-star Initiate more profitable customer Initiate more profitable customer

relationships relationships Modify the public’s attitude towards Modify the public’s attitude towards

our medicine lines.our medicine lines. Open new market segments Open new market segments

Marketing Objectives cont.Marketing Objectives cont.

Combine our advertising department Combine our advertising department with another agency with another agency

Never lose focus on the 4 P’sNever lose focus on the 4 P’s Maximize on the AIDA Concept. Maximize on the AIDA Concept.

StrengthsStrengths

Leading manufacturer of packaged goodsLeading manufacturer of packaged goods High brand awarenessHigh brand awareness Market share leaderMarket share leader Second highest conversion ratioSecond highest conversion ratio

StrengthsStrengths Allround brand awareness Allround brand awareness

• 74.1% to 80.0%74.1% to 80.0% Allround+ brand awarenessAllround+ brand awareness

• 63.0% to 68.0%63.0% to 68.0%

WeaknessesWeaknesses

Market share decline Market share decline • 23.2% to 10.4% 23.2% to 10.4%

Weaknesses cont.Weaknesses cont.

Inconsistent promotion expendituresInconsistent promotion expenditures

Weaknesses cont.Weaknesses cont.

Inconsistent advertising allocationsInconsistent advertising allocations• 22.5M in Period 3 to 10.0M in Period 422.5M in Period 3 to 10.0M in Period 4

Weaknesses cont.Weaknesses cont.

Extreme pricing decisionsExtreme pricing decisions• Allright: $2.00 jump from Period 6 to 7Allright: $2.00 jump from Period 6 to 7• Stock price dropped $56.69 to $33.39Stock price dropped $56.69 to $33.39

OpportunitiesOpportunities

Increase profits with 3 products in Increase profits with 3 products in different marketsdifferent markets

Chance to compete with End and Chance to compete with End and Coughcure by introducing 4-hour Coughcure by introducing 4-hour cough liquidcough liquid

Chance to reformulate productsChance to reformulate products• Dropped alcohol in Period 2Dropped alcohol in Period 2• Reintroduced alcohol to maximum Reintroduced alcohol to maximum

allowance in Period 8allowance in Period 8

ThreatsThreats

Sensitivity of pricing/inflationSensitivity of pricing/inflation Increasing competitive environmentIncreasing competitive environment Product formulation critiquesProduct formulation critiques

Lessons LearnedLessons Learned

Allocating income to proper areasAllocating income to proper areas• Balance promotional expenditures Balance promotional expenditures

AdvertisingAdvertising

Lessons Learned cont.Lessons Learned cont.

Sales forceSales force

Lessons Learned cont.Lessons Learned cont.

PromotionPromotion

Lessons Learned cont.Lessons Learned cont.

Price sensitivityPrice sensitivity• If below tradeoff, gradually raiseIf below tradeoff, gradually raise• If above tradeoff, gradually lowerIf above tradeoff, gradually lower

Lessons Learned cont.Lessons Learned cont.

ReformulationReformulation• Requires scientific research and Requires scientific research and

consumer reasoning graduallyconsumer reasoning gradually ResearchResearch

• Always stay informed of market in Always stay informed of market in comparison to competitor activities by comparison to competitor activities by purchasing reportspurchasing reports