Pharmasim Project Essay

3966 Words Jun 29th, 2011 16 Pages
Pharmasim Project
1. Executive Summary
The over-the-counter (OTC) cold and allergy remedy market was highly competitive. There were already 10 brands targeting in different segments at the beginning of the simulation. OTC cold medicine is effective to cure 3 major types of illness - cold, cough and allergy which associate with different symptoms like aches, nasal congestion, chest congestion, runny nose, coughing and allergy. Consumers can be segmented by young adult, young family, mature family, empty nester, retired. The products were sold to consumers in various channels including independent drug stores, chain drugstores, grocery stores, convenience stores and mass merchandisers.
Our mission was to make use of product mix,
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Strategies in this stage included refining the brand formulation, heavy spending in advertising, allocating excessive indirect sales force to guarantee successful promotion activities as well as stimulate the market interest.

Stage 2: Period 4 – 5
We had a chance to extend the product line in Period 4. By taking the advantage of high brand awareness of ALLROUND, we believe a line extension with slightly different focus in illness and segment can help expand the market. So we chose ALLROUND+ which has stronger attributes to cure cold rather than cough and set the price lower than ALLROUND. In order to penetrate this market quickly and minimize the cannibalization effect, we utilized advertising smartly to differentiate the benefits offered by ALLROUND and ALLROUDND+. We also identified BESTHELP as the major competitor of ALLROUND+ so we made use of compare advertising and point of purchase promotion to induce brand switching.

Stage 3: Period 6 – 8
ALLROUND and ALLROUND+ was not able to capture the customers suffered from allergy so it was an urgent need to introduce a new product to fill up this hole. ALLRIGHT took this mission and its formulation specifically targeted the allergy segment. Due to the uniqueness of the drowsiness free feature, advertising focused on the benefit and compare so that the market could easily identify the difference from other competitors like BELIEVE and DEFOGG.
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