Do you remember

CURRENT SOLUTIONS

WEIGHT LOSS DRUGS

DIET PLAN
EXERCISE PLAN
WEIGHT MANAGEMENT SUPPORT PROGRAM

BETTER SOLUTION

METABICAL
Group 7
-AJINKYA-DIVYANGANA-KETAKI-SUHAIL-TEAM-

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

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 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
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 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 dont 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 value
$$$

Demand outlooks

Approach

Demand forecast(millions)

619

680

1242

A niche market can also

give rise to a high
demand

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 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 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 to customer is not equal to
product price- The consumers perception of
the product might not match the actual product
Higher price might lead to lower demandIf 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:
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 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

125

239.37

150

307.24

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