Metabical case study

1. Do you remember…


2. CURRENT SOLUTIONS

 WEIGHT LOSS DRUGS
 DIET PLAN
 EXERCISE PLAN
 WEIGHT MANAGEMENT SUPPORT PROGRAM

3. BETTER SOLUTION

METABICAL
Group 7
-AJINKYA-DIVYANGANA-KETAKI-SUHAIL-TEAM-

4. A choice
to have the best of both worlds is
finally
in your hands


5. OBJECTIVES:

 Product benefits
 Target customers
 Packaging strategy
 Forecasting demand
 Pricing strategy
 Profitability and ROI

6. Metabical

 FDA approved and can be bought only through a prescription
 Lesser negative effects as compared to other available drugs
 Only 1 tablet per day
 Promotes a healthier lifestyle
(behavioural modifications)
 Came with a support plan
 First drug in the overweight
segment

7. Our priority

 Overweight females (BMI 25-30)
 Age group of 35-65 years
 Income level of $50,000 - $80,000
 College-educated
 The group of women wanted to lose 10- 30 pounds
 Ready to change their lifestyle to stay healthy
“ I want to make a difference to my life.”

8. Factors affecting
packaging

 To ensure the value addition of the consumer is maximum
 Target customers’ willingness to spend
 Likelihood of the completion of the program
 Customer perception of the brand
 Cost benefits in packaging cost
 Reaching breakeven point
 Package size decision : 12 weeks (84 pills)

9. Why the 12 week
program

 The target market is women who are relatively price
inelastic. So, they don’t mind paying whatever price
is set
 Usually when the consumer pays so high she is
willing to try the drug for 12 weeks and thereby the
impact that she will notice will be higher, which will
make them come and buy again
 The drop out rate becomes lesser since the customer
will not forget to repurchase or go get a prescription

10. Customer satisfaction is our
priority

Completion of 12 weeks program
Optimum result
Customer satisfaction
Brand value
$$$

11. Demand outlooks

Approach
Demand forecast(millions)
1
619
2
680
3
1242
A niche market can also give
rise to a high demand

12. Pricing strategy

Option 2 is a good pricing strategy

13. Advantages of Option 2
of pricing


Price elasticity of demand- Target consumers are
insensitive to price and their demand is relatively
inelastic
 Level of monopoly- Being the only company in the
market that is offering drugs for the overweight
category, we have monopoly in the market

14. Advantages of Option 2
of pricing

 Freedom to set the price - To maintain the uniqueness of
the product , we can set the price relatively high without it
affecting our demand
 Exploiting consumer surplus- Overweight consumers are
willing to pay $450 out of pocket on health care. With that
consumer surplus available, it should be used
 Considering goodwill

15. Disadvantages of
option 2 pricing

 Prone to competition- Monopoly is prone to competition
 Product value to customer is not equal to product priceThe consumer’s perception of the product might not match
the actual product
 Higher price might lead to lower demand- If competition
enters the market , the pricing may lead to lower demand
 Assuming customer preference does not change over 5
years

16. Advantages of other pricing options

Advantages:
At $75:
 Target market becomes bigger
 Low price ,high demand
At $150:
 Brand image in the market is that the product is
“premium” and high quality

17. Disadvantages of other
pricing options

At $75:
 The image of the product becomes that of it being a
low quality product
At $150
 Exploitation of the consumer surplus
 Target market being narrowed down too much

18. Profitability & ROI

Retail price ($)
ROI ( with approach 3) (in %)
75
103.62
125
239.37
150
307.24

19. ROI-Advantages

 Higher retail price, leads to higher estimated profit
 Quicker recovery of costs incurred
 Satisfied shareholders
 Brand Value in the market is made
 Reduced cost of new customer acquisition

20. 
Thank you