Pharmasim Project
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, sales force allocation, advertising and promotion in order to maximize the profit of the company ALLSTAR. We aim at market leader in terms of net income, market share, shelf space and stock price. We also treat customer perception and satisfaction as our key performance indicators.
We particularly paid attention to our product portfolio so that there is one core product with stable financial performance to support future new product promotion. Our product portfolio includes 3 brands called ALLROUND, ALLROUND+ and ALLRIGHT and each brand focuses on different market segment with clear differentiation in order to minimize the cannibalization effect. ALLROUND is a core product targeting both cold and cough illness and also a market leader throughout all 8 periods. It successfully acted as a Cash Cow to sustain the growth of the company. In Period 4 we had a product line extension ALLROUND+ to capture part of price sensitive cold market. In Period 6, we decided to enter the allergy market by launching a new product called ALLRIGHT with unique drowsiness free feature. Since then, ALLSTAR product series covers all the OTC market.
In order to achieve our target by the end of 8 periods, we formulated our strategies in 4 different
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, sales force allocation, advertising and promotion in order to maximize the profit of the company ALLSTAR. We aim at market leader in terms of net income, market share, shelf space and stock price. We also treat customer perception and satisfaction as our key performance indicators.
We particularly paid attention to our product portfolio so that there is one core product with stable financial performance to support future new product promotion. Our product portfolio includes 3 brands called ALLROUND, ALLROUND+ and ALLRIGHT and each brand focuses on different market segment with clear differentiation in order to minimize the cannibalization effect. ALLROUND is a core product targeting both cold and cough illness and also a market leader throughout all 8 periods. It successfully acted as a Cash Cow to sustain the growth of the company. In Period 4 we had a product line extension ALLROUND+ to capture part of price sensitive cold market. In Period 6, we decided to enter the allergy market by launching a new product called ALLRIGHT with unique drowsiness free feature. Since then, ALLSTAR product series covers all the OTC market.
In order to achieve our target by the end of 8 periods, we formulated our strategies in 4 different