Advertising Budget
Advertisement plays a key role in marketing sales, brand awareness, and increase the purchase intentions of our consumers. Advertising has traditionally been defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor (Winer & Dhar, 2011, p285). Every period we had during the simulation we had an advertising budget, which helped assist us to make our decisions.
When we first stated our advertising budget was 24.8 million in year 0 with just Allround as our main product for cold and cough and targeted young families, singles, mature families, empty nesters, and retired for the relief of aches, clears nasal congestion, reduces chest congestion, dries up runny nose, suppresses coughing, and helps you rest. By year 1 we changed helps you rest to won’t cause drowsiness due to us having an option to reformulate Allround. At year 2 only our advertising budget went to $29.9 million no other changes, we felt that advertisement was our biggest way of putting our product out there so our consumers would know our product better. Year 3 we did make some changes and our budget was $34.6 million. We removed reduces chest congestions from Allround due to the new product we added which was AllroundPlus. With AllroundPlus in year 3 our budge was $9.8 million to get a new product off the ground and to inform our consumers what it brings. We still targeted all demographics and only targeted the symptoms for cough due to Allround covering Cold and cough. The relief you will get from AllroundPlus is Reduces chest congestion, suppresses coughing, and won’t cause drowsiness. Year 4 as a group we decided to keep everything the same for Allround as far as our targets we did go up to $35 Million in our budget to keep advertising Allround product. For AllroundPlus our budget stayed at $9.8 Million But we did remove reduces chest congestion due to our competition with Besthelp. Year 5 Allround budget went up to $37.1 Million while everything else stayed the same. AllroundPlus also went up to $10.3 Million while everything else stayed that same. This year we did add Allright product with at starting budget of $6.5 Million. Allright product targets cold and cough for young and mature families. The common reliefs for Allright product are relieves aches, clears nasal congestion, reduces chest congestion, dries up runny nose and won’t cause drowsiness. Year 6 Allround budget went down$35.8 Million, when we added Allright product in year 5 we wanted to expand our advertisement for all three products to get the most for our money. AllroundPlus budget went down also to $8.3 Million only because as a group we felt that our budget could go towards something a little more useful like buying advertising report to see where we were as a company. Allright product budget went down $6.1, again as a group we decided to use some of the budget to the reports just to make sure we were going in the right direction with advertising. Year 7, Allround budget stayed the same as well as Allround Plus and Allright. Year 8 all three products (Allround, AllroundPlus, and Allright) stayed the same as year 7. We felt comfortable where we were at as a team. When we adjusted our budget, we wanted to meet the demands of each one of our products to allow our group to maintain a higher brand awareness.
For each year of the Pharmasim simulation we selected Brewster, Maxell, & Wheeler as our advertising agency from year 1-8. BMW charges 15% of our budget it was a high risk as a group we all thought, but at the end it worked out in our favor. There were two other agencies: Sully and Rogers which they were charging 10% of the budget, and Lester Loebol and Company for 5% of the budget but the group did not want to low ball our advertisement due to the cost, so we all agreed to stay with BMW and pay the 15%. We thought as a group that BMW would be more of a success due to its reputation of being known for its high-quality work (PharmaSim, 2019). BMW had a huge impact on all of Allrounds product, by using BMW it helped us market our products more efficiently to the right consumers.
Advertising messages
Our group decided what message we wanted to bring out to our customers and prove we are the best for them. In year 3 Allround already has a cough suppressant, so some users who were taking it for cough may just switch to the new product (PharmaSim, 2020). With this message our group had to decided if we wanted to change some of the main targets of Allround since we have a new product AllroundPlus which targets cough also. We chose to keep cough for Allround, but we did decide to rearrange what it targets which was removing reduces chest congestion and adding it to AllroundPlus. By year 4 some of our decisions for AllroundPlus comparison (coughcure) from year 3 was not a great choice for our group. In year 4 we decided to change it to Besthelp due to the salesforce report.
References
PharmaSim. (2019). Retrieved February 24, 2020 https://app4.interpretive.com/ps6s20/index.php
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