Marketing Strategy

PharmaSim Decision #2-5

11/10/2015
Team 4:
Brynn Cummings
Jenna Goitiandia
Maddy McDermott

Marketing Objectives

Be the most profitable team!

Cold medicine for all: mass-marketing
Maintain quality & increase awareness

Period 2
Decision

Details

Sales Force

85:42

No change

Keeping some variables the

same will allow us to see what
is directly affecting profit

Pricing

$5.29

$5.49

Increased price of product in

response to inflation

Advertising

$15 million

$12 million

Decreased advertising due to

high recognition and brand
loyalty

Promotion

17.0%

No change

Creative Design

Friendly design

No change

Special

Google AdWords

Quality assurance & formula

Period 2: Formula Change

Dont take out cough suppressant because many people complained of a cough
All other brands dont use alcohol, so we will jump on bandwagon
Remove alcohol to appeal to all

Period 3
Decision

Period 2

Period 3

Details

Sales Force

No change

96:49

Allocated throughout different types of

stores

Pricing

$5.49

$5.49

Changed volume discounts on <2500 to

32%,
2500+ to 38%

Advertising

$12 million

Sully and Rodgers, Primary 20%,

Benefits 30%, Comparison 5%,
Reminder 45%

Less effective ad agency, didnt increase

budget with introduction of new product

Promotion

No change

No change

Creative Design

No change

No change

Special

Quality assurance &

formula

Childrens Liquid Cold Medicine

Added a childrens product & changed back

to original formula (with alcohol)

Period 3: Line Extension

Introduced new product:

AllRound + (child 4 hour liquid)
Appeal to a larger amount of people

Period 4
Decision

Period 3

Period 4

Details

Sales Force

96:49

88:42

Reverted to amounts that were

closer to the original numbers

Pricing

$5.49

$5.69, volume discounts stay the same

Pricing increase in response to

inflation, 3.7% ($5.49*1.037=$5.69)

Advertising

Sully and Rodgers,

Primary 20%, Benefits
30%, Comparison 5%,
Reminder 45%

Increase budget to $17million

Primary 20%, Benefits 40%, Comparison
10%, Reminder 30%

Increased budget to account for new

product, increased reminder to
strengthen older customers

Promotion

17%

19%, raised trial and coupon budget by

$500k each

Raised levels because of new

product introduction

Creative

No change

No change

Special

Childrens Liquid Cold

Medicine

Social Media Problem - respond to

comments

Brands that do this are more trusted,

added a child line (4 hour liquid)

Period 4: Social Media

Respond to comments on social media

Increase the brands digital presence

Create more brand awareness
Allow consumers to trust the brand

Sales Force Report- Purchase for $22,880

Realized we needed to reallocate

and increase the Sales Force

Period 5
Decision

Period 4

Period 5

Details

Sales Force

88:42

176:69

Bought the Sales Force report &

used information to re-allocate &
significantly increase Sales Force

Pricing

$5.69, volume discounts

stay the same

$5.69 for Allround,

$4.99 for Allround+

Advertising

increase budget to
$17million
Primary 20%, Benefits
40%, Comparison 10%,
Reminder 30%

$10m for Allround,

$20m for Allround+

Promotion

19%, raised trial and

coupon budget by $500k
each

Special

Social Media Problem respond to comments

Increased advertising budget on

Allround+ to increase awareness
of new product, decreased budget
on Allround

Period 5: Discontinue?

Kept AllRound+ to give it a chance in the market

Not in market long enough to discontinue
High brand awareness, need to increase product line awareness

Net Income Statement

Decision 1

Decision 2

Decision 3

Decision 4

Decision 5

Net Income

$95.8

$107.2

$80.7

$63.9

$73.8

% Change

42.7%

11.9%

(24.8%)

(20.8%)

15.5%

Stock Price

$50.86

$51.12

$40.76

$38.55

$43.69

Summary
End of Decision 5

Thank you!