Week 5 - PharmaSim

This week we were asked to look at 3 different possible brand extensions for Allround. The options were a children's 4 hour liquid, a 12 hour milti capsule and a 4 hour cough liquid. To determine which brand extension would be best for Allround I analyzed each of the three potetial markets and where Allround stood in those markets. First, the children's 4 hour liquid would only have 2 competitors. The cold market is expected to grow about 3.5% this period. Allround already has 37% share of this market. When looking at the cross section of young families and cold medicine Allround has 20.6% of the market. Only Coldcure, a 4 hour childen's liquid has a higher market share. I do not this a 4 hour children's liquid is the right product for us. Next, the 12 hour multi capsule would not have any competitors offering the same product. This cold medicine would compete direly with the 4 hour multi liquid and 4 hour cold capsule. Allround is currently the market leader in cold medicine with 23.3% of the market share. The brand formulation of the 12 hour multi capsule and Allround are very similar. I think this product would create too much cannibalization of Allround. Last, the 4 hour cough liquid would be competing with 2 other brands. Allround is already the leader in the cough market wit 35% share of the market. Allround is beating the specific cough medicine in their own category. The cough market does not look to be growing in the next period. Allround should not expand into the cough market. In period 4 I did not pick one of the line extensions. Allround had a good percentage of the market share in each category. Also, the products were all too closely related to the Allround product. Based on market growth and current competitors I think it would be better of invest in a allergy medicine.