Pharmasim Case Summary
Executive Summary
As the brand manager for Allround cold medicine, there were many decisions regarding product formulation, strategy, line extensions and product launches over the company’s last 10 periods. The brand was focused on remaining a profitable, mature product family within the cold medicine category, but also maintaining a premium brand image.
ALAN’S INITIAL STRATEGY. Please add, it should only be around 1 paragraph.
After a period of declining sales for Allround, we increased the advertising budget to be consistent with our competitor’s budget. We decided to be very consistent with our strategy over the ten periods; however, in hindsight we should have implemented a more dynamic strategy that factored in the changing preferences of our target segments, cannibalization from Allround, and channel relationships.
After the ten periods, we had a lower stock price than most competitors, an average cumulative net income, and average cumulative manufacturing sales. The high net income is attributable to the fact of Allright’s high margins, accounting for a growing part of our sales. We often saved part of our budget that could have been used more effectively to boost sales and therefore the stock price.
Looking forward, we will change our product mix and pricing to better target specific cold relief usage to alleviate the cannibalization from Allround and to provide a complete cold relief product portfolio. This will be accomplished by reformulating Allround to be used for nighttime cold relief with Allright becoming the daily cold relief medicine. Additionally, Allround+ will continue to focus on children’s cold relief. A new allergy relief product will be released in order for AllStar to venture into this market.
General Strategy
Our general strategy was based on our desire to increase: sales, stock price, and net income. This was achieved by realizing that AllStar was the premium brand on the market, and our pricing, promotions, products and place should
As the brand manager for Allround cold medicine, there were many decisions regarding product formulation, strategy, line extensions and product launches over the company’s last 10 periods. The brand was focused on remaining a profitable, mature product family within the cold medicine category, but also maintaining a premium brand image.
ALAN’S INITIAL STRATEGY. Please add, it should only be around 1 paragraph.
After a period of declining sales for Allround, we increased the advertising budget to be consistent with our competitor’s budget. We decided to be very consistent with our strategy over the ten periods; however, in hindsight we should have implemented a more dynamic strategy that factored in the changing preferences of our target segments, cannibalization from Allround, and channel relationships.
After the ten periods, we had a lower stock price than most competitors, an average cumulative net income, and average cumulative manufacturing sales. The high net income is attributable to the fact of Allright’s high margins, accounting for a growing part of our sales. We often saved part of our budget that could have been used more effectively to boost sales and therefore the stock price.
Looking forward, we will change our product mix and pricing to better target specific cold relief usage to alleviate the cannibalization from Allround and to provide a complete cold relief product portfolio. This will be accomplished by reformulating Allround to be used for nighttime cold relief with Allright becoming the daily cold relief medicine. Additionally, Allround+ will continue to focus on children’s cold relief. A new allergy relief product will be released in order for AllStar to venture into this market.
General Strategy
Our general strategy was based on our desire to increase: sales, stock price, and net income. This was achieved by realizing that AllStar was the premium brand on the market, and our pricing, promotions, products and place should