1.

How does Metabical compare to other

weight loss options?
CSPs Metabical would be the first prescription
drug
approved specifically for overweight
individuals(i.e., those with a BMI between 25
and 30).
With lesser side effects compared to other
drugs available in market.
Compare it to Alli which is also a prescriptive
drug.
It is a combination of calosera and meditonan.
Which work as both ways the other drugs
work individually.
The best consumers for Metabical were
people who did not chase every new fad diet,
and this target group was foumlnd to be most
interested in protecting their health and
raising self-esteem.

3. What considerations should be taken in to

account for when making decisions on the
package count? What package size would
you recommend?
1)Package size:Full twelve week supply in
one peck.The reasons are following:
Majority of the people reached their weight
loss goal by week 12.
If the people will buy it they are more likely to
consume it and hence complete the schedule.
More people completing the schedule the
more the number of satisfied customer hence
more shall be popularity of the drug.
If the entire dose is available it will be
convenient for the customer since they dont
need to go out topurchase the same.
Alli the competitor was able to package 150
pills hence for Metabical packaging 12
weeks*7days=84 pills are not a problem but a
potential saving.

4.
What pricing strategy would you
suggest printup to explore? What are the
advantages and disadvantages of each
strategy? What price would you
recommend?
The pricing of Metabical should be as per
second model i.c. $125 for 4 weeks supply.
The total was for full course would be
$375 for 12 weeks supply. The reasons are
as bellow:
Though the competitor Alli had similar
drugs for $190 but the metabilical was
FDA approved and hence it can charge
premium and people are willing to pay.
The price $125 for 4 weeks is as per the
market norm for the prescription drug
hence the company can say it is not
charging anything extra hence image of
the company increases.
In one study the consumers indicated that
$150 is more than they are willing to pay
hence the potencial customer may not
procure it.

At $125 the retailer margin is also more

hence retailer shall be more interested in
selling the product.
By keeping the price at $125 the
calculation is as below
The number of customer as per forecast:
209 million*0.35=73.15 million
73.15*0.15*0.1 for 1st year and
73.15*0.15*0.15 for 2nd year
For 5 years and considering that only 20%
will purchase the whole 12 week supply is
2.1945 million
The fixed
cost=1.2*5=6million+23=29million
The VC is
2.1945*25.2*3=166 million
Revenue at $125 is
2.1945*58.13=382.7 million
Profit is =$187.8 million
Investment=$400 million

In 5 years the company is getting around

15% on ROI.