Metabical:

Pricing, Packaging
and Demand
Forecasting for a
new Weight-Loss
Drug
Group Members:
Imran shah
Salman Ahmad
Khadija Abubakar
Adeel Siddiqui

WHAT IS METABICAL
Safe and effective weight-loss drug
Introduced by CSP
Prescription drug
Awaiting FDA approval
For moderately overweight individuals
Guaranteed weight loss in 12 weeks
Leads to healthier lifestyle
Not effective in helping individuals of BMI of 30 or greater
Prices at $3- $5 a day (avg $350 for the entire course)

MOST POPULOR METHODS

FOR WEIGHT LOSSING
Diet
Exercise
Meal Replacement Products (Slimfast)
OTC pills (Alli, TrimpSpa, Xenadrine EFX, CortiSlim
etc.)
Prescription drugs

BODY MASS INDEX

Overweight (25-30)
Obese (30-40)
Severely Obese (above 40)

OBESITY EPIDEMIC IN U.S

Normal Weight or Under-weight ; 31%

Overwight, Obese or Severely Obese; 69%

Normal Weight or Under-weight

Overwight, Obese or Severely Obese

SWOT ANALYSIS
STRENGTH

WEAKNESS
OPPORTUNI
TY
THREAT

FDA approval
Few negative side effects
Works in low dose
Reduces stress on heart and liver

Gastrointestinal discomfort when

users consumed high levels of fat
and calories
Not effective for obese individuals
Huge potential market
Bad experience from Alli and Xenical
Competition from OTC and herbal
products
Low awareness among consumers

ISSUES
Optimal Package Size
Pricing
Initial Demand Forecast

PRICING
Benchmarking against market competition
Pros: A base for pricing is present. Goals are easy to
meet.
Cons: positioned as similar to other competitors in
the market. Hard to market the products full
value.
Measuring Value Proposition
Pros: Full value is extracted. A niche feeling is built.
Cons: May be too aggressively priced. Highly
dependent on consumer behavior.
Leveraging product position market
Pros: Product is valued well. A niche product idea.
Cons: Full value is not extracted. Broad market
segment may not pay for the value of the

FORECASTING
Forecasting Method 1
Pros: 1. The Method is very structured.
2. The whole over-weight market is considered
in the forecast and very little data is assumed.
Most data comes form market research.
Cons: 1. Considering it is the first of its kind, full value
is not being leveraged.
2. The estimate is spread very broad. It is hard to
predict the behavior of such a broad segment of
customers.
3. May not be accepted as easily by the low-income
groups as compared to the high-income groups.
4. Hard to create a brand across multiple
demographics.

FORECASTING
Forecasting Method 2
Pros: 1. The Method is aggressively priced and
estimated.
2. Leverages the uniqueness of the product.
3. Will create an image of uniqueness and
something that works outstanding.
Cons:
1. May not be able to meet forecasted results
due to aggressive pricing.
2. The estimate is still spread very broad. It is hard to
predict the behavior of such a broad segment of
customers.

FORECASTING
Forecasting Method 3
Pros: 1. The Method is aimed at a particular segment
i.e. women above 35.
2. Aggressively priced, but portrayed as a niche
brand.
3. A clear picture of the market they are targeting and
attractive pricing in relation to the benefits the
product is delivering.
Cons:
1. There is very small room for failure as it is
being promoted as a niche product.
2. Gender bias may mean loss of half the segment in
a single shot.

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