SECTION 1: THE PHARMASIM CASE
ALLSTAR BRANDS' OTC COLD MEDICINE GROUP:
The Allround Brand
ALLSTAR BRANDS CORPORATION. . .
. . . is one of the leading manufacturers of packaged goods in the world. Since its founding in 1924, the company has acquired or merged with a number of smaller packaged goods companies.
The management team at the over-the-counter cold medicine (OCM) group of Allstar Brands just completed its third presentation in the past month to the Pharmaceuticals Division manager regarding the status of the Allround cold medication. It is apparent, from all the attention the team has received, that the Allround brand it manages is of strategic importance to the company. Unfortunately for the team and the company, the…show more content… These five firms offer a total of 10 brands in five different product categories (cold liquid, cough liquid, allergy capsule, cold capsule, and nasal spray) listed in Exhibit 1.2:
Exhibit 1.2: Company and Brand Summary Sales $ Brands on the Market (millions) 355 286 199 255 "Allround," 4-hr multi-symptom cold liquid "Believe," 4-hr allergy capsule "Besthelp," 4-hr cold capsule Curall Pharmaceuticals Driscol Corporation "Coughcure," 4-hr cough liquid "Defogg," 4-hr allergy capsule "Dripstop," nasal cold spray "Dryup," 4-hr multi-symptom cold capsule Ethik Incorporated 395 "Effective," nasal cold spray "End," 4-hr cough liquid "Extra," 12-hr cold capsule
Company Name Allstar Brands B&B Health Care
The OTC Cold Remedy Market
Cold remedies are designed to address five basic symptoms: aches and fever, nasal congestion, chest congestion, runny nose, and cough. Although the cause is different, allergies share many of the same symptoms and are therefore often grouped with cold remedies. However, products formulated specifically for allergy relief medicines are available, and it is common in the industry to consider relief from allergy symptoms as a separate consumer need from virus and flu related illnesses. Chronic allergy sufferers tend to have different usage patterns and more concerns about side effects because of the duration of the symptoms.