Pharmasim How To Win: PharmaSim Winning Guide for Rounds 1 & Round 2 - Pharmasim guide

PharmaSim Winning Guide for Rounds 1 & Round 2

Hello and welcome back to our PharmaSim Simulation Guide!

In this video, I will walk you through a free winning strategy for Round 1 and Round 2, along with a recap of the Top 10 Winning Tips I shared in Part 1 and Part 2. This guide is designed to help you optimize every decision table, avoid costly mistakes, and build a strong foundation in the early rounds of the PharmaSim marketing simulation.

Let’s get started.

1. Overview of the Decision Tables

In PharmaSim, you’ll be making decisions across seven major tables:

Sales Force Allocation
Brand Formulation
Pricing and Trade Deals
Advertising
Promotion
Digital Marketing
Budget Allocation and Review

We'll go step by step, so you can customize your approach depending on your market conditions and simulation progress.

2. Sales Force Allocation

Your Sales Force (SForce) is a key driver of revenue across all distribution channels.

Here’s the basic allocation logic for Round 1:

Chain Drug Stores: Allocate a larger share of the sales force. These stores move high volumes.
Grocery Stores: Also allocate more here, especially for broad consumer products.
Mass Merchandisers and Independent Drug Stores: Allocate less initially unless your strategy targets niche audiences.
Indirect Sales Force: Allocate around 40% of the total sales force to indirect selling. This allows you to scale through wholesalers.

Tip: Use the entire SForce budget. Don’t leave any amount unused, as it won’t roll over to the next round. Spend it wisely.

3. Brand Formulation

Your product’s formula must align with customer needs and competitive trends.

In Round 1, we focus on product benefits such as:

Cold relief
Allergy relief
Sinus and chest congestion
Cough suppressant

For example, if your brand is targeting cold symptoms, then a strong benefit in that area will increase market appeal.

Tip: From Round 2 onward, consider reducing alcohol content in your formula to make your product safer and more appealing—especially for consumers who drive or are sensitive to side effects.

4. Pricing and Trade Deals

Setting the right price is essential. Here’s how to approach it:

Check the inflation rate for the year. If inflation is around 4–5%, you can safely increase your price by that amount without losing competitiveness.
Benchmark against competitors. If competitors are priced at $5.00 per unit and you’re at $4.20, you may have room to increase slightly.
Suggested price increase: 4% to 6%—but adjust based on your target market and value proposition.

Next, set up your Trade Deals:

Offer discounts based on order size.
The larger the order (e.g., case size 5 or 6), the higher the discount percentage.
This encourages bulk purchases and improves shelf space.

Tip: Customize discounts per distribution channel—e.g., bigger discounts for grocery and chain drug stores.

5. Advertising Strategy

Advertising is one of the most complex but crucial decision areas.

Here’s the approach:

Click on the Symptom Targets tab to select what your product addresses (cold, allergy, etc.).
For Round 1, start with 3 symptoms max—don’t spread your budget too thin.
Assign weights to Primary Benefits based on your product positioning.
Example: If your brand targets colds, assign 70% to cold relief, 20% to sinus, and 10% to chest congestion.

Refer to Video 1 and 2 to learn how to:

Allocate your advertising budget between message design and media channels.
Craft messages that highlight the correct product benefits.

6. Promotion Strategy

Promotion affects retailer cooperation and consumer pull.

Suggested setup for Round 1:

$20 million for advertising
$5–6 million for promotion allowances

Set promotion allowance rates by distribution channel:

Chain Drug Stores: 20%
Grocery Stores: 15–20%
Mass Merchandisers: 10–15%
Independent Drug Stores: 10%

As you progress to later rounds, you can increase promotion spending based on performance reports.

7. Digital Marketing

Digital Marketing has become a major factor in modern PharmaSim rounds.

Here’s what to do:

Review competitor spending on digital ads. This can be found in the market report.
Set your Digital Marketing budget around:

$0.5 million to $2 million depending on your size and channel focus

Choose relevant keywords that match your advertising strategy—these help attract consumers online.

Tip: Use keywords that align with your top symptom targets and product benefits.

8. Budget Allocation and Review

After setting decisions in all the above categories, revisit your Budget Allocation Table:

A winning breakdown in early rounds usually looks like this:

Advertising: ~60% of marketing budget
Sales Force and Promotion: ~40%

Always ensure your Total Spending does not exceed your allocated marketing budget. Watch your cash flow!

9. Top 10 Winning Tips Recap

Before we end, let’s quickly recap the Top 10 Winning Tips:

Use all of your budget—never leave money on the table.
Allocate more sales force to high-volume channels.
Review competitor pricing before adjusting your own.
Design messages that reflect product benefits.
Focus on 2–3 key symptoms only in early rounds.
Set promotion rates based on retailer importance.
Reduce alcohol content starting Round 2 for broader appeal.
Choose digital keywords carefully.
Watch performance reports every round to refine strategy.
Experiment, but don’t change too much in one round. Small, steady improvements are better.

10. Need More Support?

If you still need help for Round 1 or Round 2 decisions:

✅ Visit our blog: pharmasimhowtowin.blogspot.com
✅ Or email us at pharmasim2012@gmail.com for free support.

We provide guides, video walkthroughs, and one-on-one feedback for students who want to excel in PharmaSim.

Conclusion

Thank you for watching!

I hope this PharmaSim guide has helped clarify your early-round strategy. By using the decision-making tips and aligning your brand and budget carefully, you’re on the right track to lead the market in PharmaSim.

Good luck in Rounds 1 and 2—and don’t forget to optimize after each report. See you in the next video!