1. PharmaSim
Introduction

2. You play the role of brand manager.
PharmaSim Content
In this computer simulation, you will focus on the process of marketing planning and marketing management for up to 6 simulated years and make decisions in the areas of:
Sales Force
Product / Pricing
Advertising / Promotion
Creative Design
Research Reports Purchase
Special
You play the role of brand manager.

3. PharmaSim Overview Situation Analysis Marketing Strategy Marketing Mix
Focus on the core concepts of marketing planning and marketing management:
Situation Analysis
Marketing Strategy
Marketing Mix

4. Marketing Planning Marketing Planning Process PharmaSim
Situation Analysis
5Cs: Context, Competitors, Customers,
Collaborators, and Company
(Internal and external analysis)
Marketing Strategy
STP: Segmentation, Targeting and Positioning
(Determine the value proposition)
Marketing Mix
4Ps: Product, Place, Price, Promotion
(Determine how to deliver value)
Use company reports and marketing research
to better understand your current position.
Uncover problems and opportunities.
How will we segment the market? Who will we
target? How will we outfox the competition?
Specifics. What products, price, sales force,
promotion, advertising budget and message?
Repeat this process for up to 10 simulated years.

5. PharmaSim Overview
PharmaSim drives home the essential process of marketing planning:

6. PharmaSim Overview
PharmaSim drives home the essential process of marketing planning:

7. PharmaSim Context OTC Cold and Allergy Medicines
Cold medicines: products that relieve cold symptoms, including cold/cough medicines, but excluding nasal sprays.
Cough medicines: products specifically formulated for reducing the cough reflex or making coughs more productive.
Allergy medicines: products labeled for relief of allergy symptoms.
Nasal medicines: sprays designed for fast relief of nasal and sinus congestion.
PharmaSim product categories differ in the ways described above.

8. PharmaSim Context Economic Factors
Population of 250 Million (approx. 1% growth/year).
Moderate inflation.
Over 80% of population suffered from some cold-related symptoms in the past year.
Almost $2 billion in retail sales (approx. 4% growth).
Manufacturers’ sales of $1.5 billion.

9. Competition (Firms)
You manage Allstar Brands.

10. Competition (Brands) Liquid, Capsule, Spray Allround Believe Besthelp
Coughcure
Defogg
Dripstop
Dryup
Effective
End
Extra

11. Competition (Overview)

12. Competition (Market Share)
Market Share Based on Packaging

13. Customers (Segments) Demographic Segmentation based on Life Stage.
Young Singles
Young Families
Mature Families
Empty Nesters
Retired

14. Customers (Segment Descriptions)

15. Customers (Segments)
Alternative behavioral segmentation based on symptom relief.
Cough
Cold
Allergy

16. Customers (Buyer Behavior)
5 Key Decision Criteria
Relief of Symptoms
Aches and Fever
Runny Nose
Nasal Congestion
Chest Congestion
Allergy Symptoms
Trouble Sleeping
Price
MSRP
Discounts
Channels
Allowances
Duration
4-hour
12-hour
Form
Capsule
Liquid
Nasal spray
Minimize Side Effects
Drowsiness
Upset stomach
Alcohol

17. Customers (Buyer Behavior)
Think about how each decision impacts buyer behavior.

18. Collaborators (Distribution)
Each outlet can be reached either through a wholesaler or direct.

19. Collaborators (Distribution)

20. Collaborators (Distribution)
Shelf space and stocking considerations:
Margin earned per unit.
Sales volume and turnover rate.
Sales force influences (direct and indirect).
Other promotional activity.

21. Collaborators (Distribution)
In general:
Successful brands will gain prime shelf space.
Retailers have different needs/considerations.
Shelf space is essential to reach non-loyal buyers who make purchase decisions in the store.
Shelf space in PharmaSim includes both breadth (% stocking) and depth (in-store attractiveness).

22. Company (Allstar Brands)
A leading manufacturer of packaged goods, Allstar Brands consists of three divisions:
CONSUMER PRODUCTS
PHARMACEUTICALS
INTERNATIONAL
OCM Group:
Allround Brand

23. Company (Allstar Brands*)
Three levels of complexity:

24. Company (Allstar Brands*)
The OCM Group has the opportunity to:
manage the Allround brand using the 4Ps: Product, Pricing, Promotion, Place (distribution).
expand Allround's portfolio with reformulations, line extensions, and new product introductions.
* Committed to the best in cold medicines.

25. PharmaSim Performance
Refer to your company dashboard for a quick snapshot of a variety of your firm's performance measures:
Unit Sales
Net Income
Stock Price
COGS
Marketing Efficiency
and more…

26. Items to Keep in Mind Marketing planning is a process.
Marketing is about numbers and skill: understanding complex research studies, financial implications, forecasting, etc.
Discover market drivers.
Think long-term.
Don’t underestimate importance of teamwork and organization.