STRATEGIC PLAN
FOR
PHARMASIM
Present to:
Janet Haist
Marketing Program Professor
George Brown College
Presented by:
Nik Rentas
Turgut Tezir
Business Marketing Analysis Program Students
George Brown College
June 29, 2006
MARK 1039 – Strategic Plan for PharmaSim - Nik Rentas & Turgut Tezir - June 28, 2006
OUTLINE
1. Mission Statement………………………………………….
2
2. Environmental Analysis…………………………………...
2
3. Competitive Analysis………………………………………
3
4. Strategic Alternatives……………………………………...
4
5. Goals and Strategies………………………………………..
5
6. Control and System………………………………………...
6
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MARK 1039 – Strategic Plan for PharmaSim - Nik Rentas & Turgut Tezir - June 28, 2006
1. Mission Statement
“Your family’s health is #1 at Allstar; the Industry leader in over the counter
cough cold and allergy medicines.”
2. Environmental Analysis
Strength

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
Have biggest market share
Have good public image, brand awareness
Better quality product
Weakness




Have side effect
Have high price
Have one product
Have lower retention rate
Opportunity



Brand available three forms
Line extension and development of new medicine
Reduce Cost
Threat




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Competitors with lower prices
Value brands
Large number of competitor
Growing industry
Customers preference to single symptom products
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MARK 1039 – Strategic Plan for PharmaSim - Nik Rentas & Turgut Tezir - June 28, 2006
3. Competitive Analysis
Factors to Analyze
Competitor 1
Allround
4 hour multi-liquid medicine
contains an analgesic, an
antihistamine, a decongestant, a
cough suppressant, and alcohol.
Competitor 2
Besthelp
4 hour cold capsule containing an
antihistamine and a decongestant.
Positioning
For night time relief due to the
strength of the medication, alcohol
and antihistamine. #1 Brand on the
market, advertised as a cold
medicine.
For daytime relief of colds due to
the decongestant and lack of alcohol.
#2 Brand on the market for colds.
10% higher recommendation by
Physicians and Pharmacists.
Target market (s)
Young singles, young families,
mature families, empty nesters,
retired.
Young singles, young families,
mature families, empty nesters,
retired.
Price
$5.49 MRSP, higher end price
justified by brand awareness and
popularity.
Promotion Strategy
Sold in mainly in chain drugstores
and grocery stores with less of a
focus on independent drugstores
and convenience stores. Also
involved in a trial campaign and
coupons. Retains highest amount
of shelf space.
$5.29 MRSP, higher than the
average, 2nd to Allround in
awareness and popularity in the cold
medicine market.
Steadily climbing to near equal
levels of shelfspace. 2nd in
promotion activity. No trial
campaigns but run a comparable
coupon campaign.
Competitive
Advantage – key
differentiator
Strongest most well known brand.
Multi-Liquid allows for many
promotional advantages.
All time leader in professional
recommendations as a cold
medication.
Strengths
- Market leader.
- Versatile multi-liquid.
- Highest market share based on
sales.
-Highest distribution.
Weaknesses
- Low retention rate.
- Only one product.
- Trends leading to capsules.
- 2nd in recommendations.
- New product released with more
potency.
- Highest recommended product.
- Gaining popularity over periods.
- Industry leading operating
statistics.
- Product is too focused
- High satisfaction in cold segment,
well below Allround in cough and
cold.
Products
key
features/benefits
3
MARK 1039 – Strategic Plan for PharmaSim - Nik Rentas & Turgut Tezir - June 28, 2006
4. Strategic Alternatives
In examining the data over the last number of periods it become evident that
Allround is losing ground in all aspects. Various changes have been made to the
budgets and promotional expenses to try to curb spending and streamline things
while keeping inline with industry standards. A few items stand out as major
problems, they are,
1. Retention problem still exists after increases in marketing and sales
channel distribution
2. Competitors introducing new brands and reformulating
3. Misallocation of funds nearly every period, i.e. poor sales and industry
forecasting
These 3 problems can be fixed. The 3rd problem will take time as the marketing
department becomes more experienced. Bold moves in the past will become
smaller more calculated ones in the future. The 2nd problem will also be solved
when, in upcoming periods Allstar Brands will introduce an all together new
product. Reformulations will also be looked at as trends are pointing to single
symptom medications being preferred over multi-symptom medications. The 1st
problem will have to be dealt with through some in-depth analysis of spending
rates in the promotions and sales department. More work needs to be done in
allocating resources to the right areas. Looking for that competitive edge over the
competition might have to replace the current philosophy of following industry
standards and adjusting accordingly.
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MARK 1039 – Strategic Plan for PharmaSim - Nik Rentas & Turgut Tezir - June 28, 2006
5. Goals and Strategies
Goal:
Allstar Brand’s goal is to further expand over-the-counter market position by
developing and marketing high-quality products.
Objective:
To obtain a total market share of 30% of the OTC cold cough and allergy remedy
market end of 2007 and to penetrate the cough market.
Strategies:
1. Promotion: Increase brand awareness by continuing tester sampling and
coupon campaigns making minor adjustments that fall inline with industry
trends
2. Launching new product in capsule format to go inline with industry trends.
3. Launch new product with opposite attributes to take on the other end of
the spectrum.
4.
Expand Distribution channels.
5.
Reduce side effects.
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MARK 1039 – Strategic Plan for PharmaSim - Nik Rentas & Turgut Tezir - June 28, 2006
6. Control and System
Marketing control and system should be tested end of each year and end of each
promotion time period. Company’s performance will be measure with industry
standard and previous year. Below calculation will help us to plan better strategies
for the future.
1. Calculate the percentage gain or loss in sale
2. Calculate the markdown percentage
3. Calculate Stock turn rate
4. Calculate Market Share
5. Calculate gross margin percentage for each product line
6. Calculate debt equity ratio
7. Break even analysis
8. Response Rate Analysis:
9. ROI: Test various list to ensure decreasing marketing costs and then
increasing ROI.
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