Conjoined Twins? Conjoint Analysis

This week was a busy week in Pharmsim. Competitor analysis and consumer analysis can to the forefront as I delved into more reports, the conjoint analysis specifically, and how to review consumer wants and how to formulate business challenges from them. 

The first part looked at it was how the conjoint analysis can be used to see how the consumers view the product price and formulation of the product. This chart quantitatively shows the value of changing the price (first column) and then the change in formulation of the product. from this the market survey was conducted for the change in price (it was limited to +/- 10 % of the current price).  The drop in price showed an increase in market share and share of manufacture sales.  The increase of price showed the opposite.  The session was than ran for a best and worse case.  Which shown in the chart is keeping Allround original while increasing the price and the best is dropping alcohol and dropping the price.  Both of these choices caused havoc to the stock prices and affected Allrounds market share.

The increase in priced caused the market share to drop though the profits increased because of the price increase.  The drop in price with changing the formulation increase unit sales while dropping the revenue and market share.  When the analysis was run with just changing the formulation the revenue increased, the stock price increased and market share of cold increased.   This appeared to be the best tested decision.  I think a small price drop due to less ingredients could have helped change the market share as well.  The conjoint analysis is help to show what the consumers are looking for in the product and help quantify the affects of changing the price and formulation of a product.  

The competitor analysis workbook helped to organize the data provided in the analysis. The workbook provided ways to define the competitor set, do an industry analysis and detailed analysis with future strategies. The industry analysis is helpful when determining if there is a need to create a second product for Allround and the possible barriers for the product. The competitor analysis is important to help see how Dryup, Besthelp and Extra are performing in the market.  The competitor analysis helps to benchmark Allround and determine what the next steps are going to be.  

Now that I have restarted the analysis, it will give another opportunity to see the best way to attack this market of cold medicine and the decisions needed to be made.  I know that in team play the problem will be slightly different but at least all of the tools will be known by then.