PharmaSim Introduction
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.
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
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.
PharmaSim Overview PharmaSim drives home the essential process of marketing planning:
PharmaSim Overview PharmaSim drives home the essential process of marketing planning:
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.
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.
Competition (Firms) You manage Allstar Brands.
Competition (Brands) Liquid, Capsule, Spray Allround Believe Besthelp Coughcure Defogg Dripstop Dryup Effective End Extra
Competition (Overview)
Competition (Market Share) Market Share Based on Packaging
Customers (Segments) Demographic Segmentation based on Life Stage. Young Singles Young Families Mature Families Empty Nesters Retired
Customers (Segment Descriptions)
Customers (Segments) Alternative behavioral segmentation based on symptom relief. Cough Cold Allergy
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
Customers (Buyer Behavior) Think about how each decision impacts buyer behavior.
Collaborators (Distribution) Each outlet can be reached either through a wholesaler or direct.
Collaborators (Distribution)
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.
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).
Company (Allstar Brands) A leading manufacturer of packaged goods, Allstar Brands consists of three divisions: CONSUMER PRODUCTS PHARMACEUTICALS INTERNATIONAL OCM Group: Allround Brand
Company (Allstar Brands*) Three levels of complexity:
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.
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…
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.