PharmaSim Player is a simulation program that allows business students to apply the marketing knowledge into the simulation scenarios. The program encourages players to perform as a brand manager who allocates the budgets to sales force, promotion allowance & expenditure, and advertising expenditure as well as offers new products into the simulated market. The program requires analytical and decision-making skill to maximize the profits and market shares. The industry is about a pharmaceutical company that competes in the market. The program has several factors that affect the outcome such as market environments, inflation rates, market trends, demographical changes and etc. The program has 10 simulated periods which gradually increase the complexity when approaching next period. Each period has different factors to the market and company performance.
• To expand the market shares and increase sales.
• To penetrate into the new market.
• To maximize stock price and net income.
• To expand customer base while maintaining good relationships with existing customers. • To satisfy the needs of customer as well as consistently offering quality medicines with reasonable price to customer.
Period 0 - 1
Driscol announced the introduction of Dryup this period...
Prices increased an average of 2.8% compared to an inflation rate of 3.1%... Total advertising spending is up $3.3 million while promotional spending increased $1.1 million... Mass merchandiser sales showed the strongest growth this period with an increase of 9.0%... Retail sales grew by $82.1 million, or 4.3%...
Period 0-1 Action
Price: Initial retail price is $5.29, which is later increase to $5.39 because we are the market leader in Cold relief market. The other reason is because we found that the prices of the same level of competitors are still higher than us so we have opportunity to increase price without losing market shares....