Marketing Plan - Pharmasim

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Line Extension to satisfy consumer needs Consumers concern w/multi-symptom " shotgun" approach

New product/brand expansion Single symptom medications

Expansion to emerging markets

Increase retention ratio Change in consumer perception around alcohol in the formulation

Pursue improved shelf placement

Expand salesforce to improve channel relationships

PRODUCT-MARKET ANALYSIS:

a. Target Markets: Although Allround Brands currently has the highest brand awareness percentage, it is in the bottom of the upper third of retention ratios. Therefore, Allround Brands should focus its market on consumers who will increase the brand’s retention ratio. This could include young singles, young to mature families, empty nesters and/or retired individuals who utilize cold, cough, and allergy medicines. They should also focus on markets that will rely on the brand continuously and build trust amongst the consumer.

This product meets the needs of the target market because it contains an analgesic, an antihistamine, a decongestant, a cough suppressant, and alcohol. In other words, it provides multi-symptom relief to the consumer, and is considered one of the most effective brands on the market at reducing multiple cold symptoms. Consumers use this at nighttime due to the strength of the medicine and because it helps them rest.

b. Points of Difference: The following are points that make Allround’s products superior to competitive substitutes. One advantage is having a high brand awareness of 74.1%, which could possibly be one of the reasons why Allround also has the largest market share of 40.4% in the cold category. In addition, Allround has the highest trial level at 47.1% and is the brand that is most frequently purchased as compared to competitors (21.8%). This not only shows brand loyalty, but has also allowed Allround to maintain a price leadership role in the market.

c. Positioning: The Allround brand is currently marketed as a 4-hour multi-symptom cold relief medicine due to the brand formulation which contains an analgesic, an antihistamine, a decongestant, a cough suppressant, and alcohol. In addition to the points mentioned under points of difference, Allround enjoys 14% higher brand awareness than the next competitor, a 63.6% conversion ratio and a 46.3% retention ratio. As a result, Allround has also been able to price its product at a premium ($5.29 MSRP) compared to most of its competitors. Given these circumstances, Allround should position its product as the premium, fast-acting, liquid 4-hour multi-symptom cold relief medicine for young to mature families, empty nesters and retired individuals. Allround should also position itself as the most effective brand at reducing multiple cold symptoms with one medication while also helping patients rest to relieve pain or discomfort associated with a cold.

STRATEGIC FOCUS MARKETING MIX RECOMMENDATIONS:

Short-Term Goals and Tactics:

1. Maintain market/brand leadership in cold and allergy market

a. Obtain market research survey

b. Continue strong advertising strategy to maintain brand awareness

c. Continue moderating price leadership

2. Increase retention ratio

a. Target consumers who rely on brand to make purchase decisions

3. Improve channel relationships

a. Increase Salesforce to enhance retailer support and improve shelf placement

b. Offer trade funds to retailers to support promotions and prime shelf placement

Long-Term Goals and Tactics:

1. Maintain market/brand leadership in cold and allergy market

a. Continue strong advertising strategy

b. Continue moderating price leadership

2. Gain share in cough, allergy, and nasal categories

a. Expand product line to reach cough, allergy, and nasal consumers

b. Grow retention rates by expanding into specific, needs-based products

3. Diversify product line to grow revenue and profitability

a. Reformulate to meet consumers changing needs

b. Expand product line to reach cough, allergy, and nasal consumers 

Appendix A

Appendix B

Appendix C

Appendix D: Product and Consumption Method Mix Summary by Brand