Key Success Factors
The Allround brand will continue to be successful in the US and EU markets by continuing to reach customers from all income brackets. The OTC medications manufactured by Allstar including the Allround medication, are considerably cost-effective. By continuing with a retail price for our brand at $5.29, the company can remain affordable to most consumers in the developed nations and in the emerging countries (PharmaSim Student Manual, 2006, p. 7). By maintaining the focus on supplying a great quality product, the sales profit is forecasted of $400 million next year. The company will still intend on remaining leaders with the 4-hr cold liquid and will begin to challenge Ethik Inc. in the next few years when it comes to nasal spray, 12-hour capsule, and maybe even an allergy capsule.
Conclusion
The company has the technology, tenacity, skills and experience to achieve and surpass period 1 sales levels. The company’s promotional campaign is designed to target Mega markets that are interested in selling the product and maintaining a business venture as well as other products that will be explored to develop a business plan to see how that affects the bottom line. These entities will provide the power to generate revenue through multiple locations to all consumer segments. The greater number of stores will ultimately dictate the price that can be charged to sponsors for placing advertisements on the company’s Web Site.
Appendix B
Summary of the Decision Results from Each Period (Table and Graphs)
| Period Complete | Manufacturer Sales (millions$) | Cum. Manufacturer Sales (millions$) | Net Income (millions$) | Cum. Net Income (millions$) | Share of Manufacturer Sales (%) | Stock Price ($) |
| 1 | $411 | $766 | $112 | $179 | 22.1 | $49.94 |
| 2 | $342 | $1,109 | $75 | $254 | 18.3 | $31.03 |
| 3 | $300 | $1,409 | $58 | $312 | 15.3 | $21.33 |
| 4 | $334 | $1,743 | $46 | $358 | 16.2 | $22.47 |
| 5 | $429 | $2,172 | $78 | $436 | 18.6 | $36.11 |
| 6 | $458 | $2,630 | $89 | $525 | 18.9 | $40.13 |
| 7 | $479 | $3,109 | $109 | $634 | 18.6 | $42.13 |
| 8 | $489 | $3,598 | $99 | $733 | 17.8 | $40.42 |
Note: The information in the table summarizes the results of the decisions made throughout the simulation.
Appendix C
Table C1
| Allround Pricing Decisions | |||
| Est. Unit Cost | MSRP | Unit Sales (mill) | |
| Period 1 | $1.24 | $5.75 | 107.1 |
| Period 2 | $1.27 | $5.80 | 92.3 |
| Period 3 | $1.31 | $5.87 | 80.2 |
| Period 4 * | $1.37 | $5.25 | 89.4 |
| Period 5 | $1.43 | $5.45 | 93.7 |
| Period 6 * | $1.47 | $5.89 | 89.9 |
| Period 7 | $1.51 | $5.99 | 78.1 |
| Period 8 * | $1.71 | $6.40 | 80.7 |
Note: The information in the table summarizes pricing decisions for Allround and the effects of these decisions on unit sales. Pricing surveys were purchased in periods 4, 6, and 7 (*).
Table C2
| Allround+ Pricing Decisions | |||
| Est. Unit Cost | MSRP | Unit Sales (mill) | |
| Period 1 | |||
| Period 2 | |||
| Period 3 | |||
| Period 4 * | $1.15 | $5.40 | 6.4 |
| Period 5 | $1.20 | $5.40 | 15.9 |
| Period 6 * | $1.24 | $6.09 | 20.9 |
| Period 7 | $1.27 | $6.39 | 24.6 |
| Period 8 * | $1.33 | $6.30 | 27.5 |
Note: The information in the table summarizes pricing decisions for Allround+ and the effects of these decisions on unit sales. Pricing surveys were purchased in periods 4, 6, and 7 (*).
Table C3
| Sales Force Decisions | |||
| Sales Force Total | Direct Sales Force | Indirect Sales Force | |
| Period 1* | 108 | 94 | 14 |
| Period 2 | 100 | 84 | 16 |
| Period 3* | 133 | 111 | 22 |
| Period 4 | 109 | 93 | 16 |
| Period 5* | 177 | 119 | 58 |
| Period 6* | 221 | 138 | 83 |
| Period 7* | 215 | 140 | 75 |
| Period 8* | 224 | 149 | 75 |
Note: The information in the table summarizes sales force decisions for Allround. Sales force surveys were purchased in periods 1, 3, 5, 6, 7, and 8 (*).
Table C4
| Summary of Net Income and Stock Price | |||
| Net Income (millions$) | Cum. Net Income (millions$) | Stock Price ($) | |
| Period 1 | $112 | $179 | $49.94 |
| Period 2 | $75 | $254 | $31.03 |
| Period 3 | $58 | $312 | $21.33 |
| Period 4 | $46 | $358 | $22.47 |
| Period 5 | $78 | $436 | $36.11 |
| Period 6 | $89 | $525 | $40.13 |
| Period 7 | $109 | $634 | $42.13 |
| Period 8 | $99 | $733 | $40.42 |
Note: The information in the table summarizes net income, cummulative net income and stock price.
Appendix D
Advertisement and Logo for Allround in Period 2