Pharmasim Market Potential

First the market must be defined for Allstart. Allstar brand competes with Besthelp, Dryup and Extra in the OTC cold remedy market.  This definition is important because it allows for a specific market (cold) not the overall reaching cold, allergy, nasal as that would increase the amount of data for competitive analysis.  There are many different area of data that need to be determined before creating a competitor analysis.  Knowing that there are 263.9 million people in the Land of Pharamsim helps to determine the potential market and market demand.  This is determined by the possible number of total purchases at 712 million divided by the average number of purchases of 2.7.
 But the total number of purchases is not known so that needs to be calculated from the total unit sales and market penetration.  The market penetration is 64% with total unit sales of 457million. 

With these values is can been that the market demand is 457 million units with a market potential of 12 million units. The market penetration can then defined by diving those two numbers which produces the 64%. 



In the past few simulation attempts, I have made some misguided decisions in my marketing strategy. I switch which competitor I was comparing too which was a bad idea.  I should have stayed with Besthelp who has the next largest market share of the cold remedy market. So I switched it and replayed the session. I also utilized the marketing sales report with the pricing report to choose to create a second market brand.  I first mistakenly tried a 12hr multicapsule as that ate into Allarounds cold remedy market share.  So I then looked to enter the cough remedy market as there were only two competitors in that market, End and CoughCure.  I used the pricing report to help set the MSRP and the discounts for Allaround+ in the cough market.  The Allaround+ was able to get about 7% of the market in this round of the simulation.

With an additional product for all around the market definition become two fold with the addition of competitor of End and CoughCure. Allstar brand competes with Besthelp, Dryup and Extra in the OTC cold remedy market and competes with End and CoughCUre in the OTC cough suppressant market.

While trying to evaluate the market demand and other competitors statistics, the survey of decision making criteria is important.  As stated above, this supplies the market penetration and average number of purchase.  These values can then be selected for each specific market of cold, cough or allergy.  With this Allstar brand can be evaluated for the market penetration, demand and potential of just the cold market. The values can help to see how Allstar is doing in its specific market as well as the overall market.