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Do you remember…


CURRENT SOLUTIONS      WEIGHT LOSS DRUGS DIET PLAN EXERCISE PLAN WEIGHT MANAGEMENT
CURRENT SOLUTIONS
WEIGHT LOSS DRUGS
DIET PLAN
EXERCISE PLAN
WEIGHT MANAGEMENT SUPPORT PROGRAM
BETTER SOLUTION  METABICAL Group 7
BETTER SOLUTION
METABICAL
Group 7

-AJINKYA-DIVYANGANA-KETAKI-SUHAIL-TEAM-

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

A choice to have the best of both worlds is finally in your hands 
A choice to have the best of both worlds is finally in your hands 
OBJECTIVES:        Product benefits Target customers Packaging strategy Forecasting demand
OBJECTIVES:
Product benefits
Target customers
Packaging strategy
Forecasting demand
Pricing strategy
Profitability and ROI

Metabical

  FDA approved and can be bought only through a prescription  Lesser negative effects
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
Our priority      Overweight females (BMI 25-30) Age group of 35-65 years
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.”

Factors affecting packaging

       To ensure the value addition of the consumer is
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)

Why the 12 week

program   The target market is women who are relatively price inelastic. So, they don’t
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
Customer satisfaction is our priority  Completion of 12 weeks program Optimum result Customer satisfaction Brand
Customer satisfaction is our
priority
Completion of 12 weeks program
Optimum result
Customer satisfaction
Brand value
$$$
Demand outlooks  Approach Demand forecast(millions) 1 619 2 680 3 1242 A niche market can
Demand outlooks
Approach
Demand forecast(millions)
1
619
2
680
3
1242
A niche market can also
give rise to a high
demand
Pricing strategy  Option 2 is a good pricing strategy
Pricing strategy
Option 2 is a good pricing strategy

Advantages of Option

2 of pricing   Price elasticity of demand- Target consumers are insensitive to price and
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

Advantages of Option

2 of pricing   Freedom to set the price - To maintain the uniqueness of
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

Disadvantages of

option 2 pricing   Prone to competition- Monopoly is prone to competition  Product value
option 2 pricing
 Prone to competition- Monopoly is prone to
competition
 Product value to customer is not equal to
product price- The 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

Advantages of other pricing options

 Advantages: At $75:   Target market becomes bigger Low price ,high demand At $150:
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
Disadvantages of other pricing options  At $75:  The image of the product becomes that
Disadvantages of other
pricing options
At $75:
The image of the product becomes that of it
being a low quality product
At $150
Exploitation of the consumer surplus
Target market being narrowed down too much
Profitability & ROI  Retail price ($) ROI ( with approach 3) (in %) 75 103.62
Profitability & ROI
Retail price ($)
ROI ( with approach 3) (in
%)
75
103.62
125
239.37
150
307.24
ROI-Advantages   Higher retail price, leads to higher estimated profit  Quicker recovery of costs
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
 Thank you
Thank you