Group: KISS Members: Zhuobin Chen, Jiajia Cai, Young Pei Lee
Xiaoying Ma, Zhen Yang, Wei Wang Nov. 1 st, 2010 Pharmasim
Strategic plan
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Agenda PharmaSim Case (5Cs) Place/Channel Motivation Assignment
Product Cannibalization Pricing/Margin Promotion Buyer Behavior
Assignment Marketing Plan Overall Retail Brand CBBE
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PharmaSim Case Preparation Company: Allround is a 4-hour multi-
symptom liquid manufacturer with unique products and high market
share. Goals: find new opportunities & maintain market
leadership Strengths: Increase budget, high brand awareness, market
leader, unique product Weaknesses: Low retention ratio; low market
share in other categories, relatively high price, placement in
shelf space.
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Customers recognize Allround most, yet they have some negative
image toward Allround. Negative attitude toward products alcohol
ingredient. Capsule is more convenient than liquid. There is a
second highest demand on cough category. Preference on new brands
and brands that fill very specific needs. PharmaSim Case
Preparation
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Competitors are entering multi-symptom markets. B&B health
care, Curall Pharmaceuticals, Discol Corporation and Ethik
Incorporated. Competitors Move: Enter the cold market and compete
with us. Our reactions: Product ingredients improvement Increase
sales forces help Support from retailers Promotion program
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Collaborators: Direct channels & Indirect channels
Promotional allowance, product turnover, sales force support, co-op
advertising allowances, discount volume Context: Technology
development Inflation Publics increasing concern about their health
issues. Great needs in the OTC cold remedy market. PharmaSim Case
Preparation
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Channel
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Channel
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Channel---an important factor influcing sales and influenced by
retailer Importance of shelf space 70% of all purchase decisions
are made in-store Eye-level shelf space Comparison with nearby
products Gain shelf space The volume of sales The profit margin for
retailers The competitiveness relation with retailers private label
products Uniqueness of the new brand (New niche) Channel Motivation
Customer demands & Profit margin Less direct competitiveness
relations with the own private label Good relationship with
retailers and manufactures Logistics cooperation
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Line extension choices we have : 4-hour cold liquid for
children; 12-hour multi-symptom capsule; 4 hour cough liquid;
WHY?????? Most different; Current: 4-hour multi-symptom
liquid---emphasizing multi- symptom reliever function with no
ingredients for cough New line: Cough liquid----COUGH! Product
Cannibalization---products differentiation helps to reduce product
cannibalization Cannibalization refers to a reduction in sales
volume, sales revenue, or market share of one product as a result
of the introduction of a new product by the same producer (From
Wikipedia).
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Benefits from core product Different product, same
brand----Allround; The highest brand awareness help new products to
be recognized quickly and trusted by consumers. Product
Cannibalization
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Options to minimize Always emphasize two products different
function to help shape consumers insight about products performance
and imagery; Encourage consumer trials by cross selling two
products together to make consumers feel different about these two
products. Product Cannibalization
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Pricing---Margin Competitive price at Grocery store
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We make an assumption that Allrounds usually offer
