Friday, November 8, 2013

On second thought...

The current Pharmasim comparative results measure manufacturer sales $, cumulative manufacturer sales $, net income $, cumulative net income $, share of manufacturer sales $ and stock price.  I find these measurements are enough to gauge the competition.  For example, I can see that team one made a drastic change in period one that enabled manufacture sales to increase from $212M to $239M in period 2.  This change also increased the team's share of Mfr sales 12.3% to 13% respectively.  However their cumulative net income is lower than other teams.  The current measurements indicate team one most likely dropped the MSRP on their product or offered promotional discounts. 

 
 


 
When looking at share of manufacturer sales % graph we can see that team 3 and 4 have unhappy customers.  Both team's sale percentages are declining.  The first graph shows their sales dollars are increasing but the volume is going down.  This is mostly likely attributed to price or changes in promotion.  They are getting more money in and have less of a market %. 
 
 
 

 
Perhaps the one measurement that could be added to the dashboard is the net marketing contribution.  We know the formula is NMC=market demand x market share x selling price.   The NMC measures how much the marketing strategy accounts for marketing and sales to cover expenses.  As brand managers our goals  include increasing marketing and sales to remain competitive in market shares and penetration. We know these goals include expenses with each given unit price and these expenses must be less that gross profit to ensure the NMC remains in the black.  There is a down side to adding NMC to the dashboard.  It will afford all teams a method to back into each other's selling price.  We can figure out the market demand and use the other metric for market share.  By adding the NMC, the selling price could become a very simple equation.  While I wouldn't mind researching the competition more closely, I don't think I want them researching my team.  On second thought... let's leave the current metrics as they are.


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