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1.0 EXECUTIVE SUMMARY

Cambridge Science Pharmaceuticals (CSP) is an international health care company with

a focus on developing, manufacturing, and marketing products that treat metabolic

disorders, gastrointestinal diseases, immune deficiencies, as well as other chronic and

acute medical conditions. The company captured over $25 billion in sales for the year

2007. Barbara Printup is the senior director of marketing of CSP who is responsible for

one of the most successful products by CSP, Zimistat. CSP has assigned Printup to be in-

charged of the upcoming U.S product launch of CSP’s newest prescription drug,

Metabical.

Barbara Printup, Senior Director of Marketing for Cambridge Science Pharmaceuticals

(CSP) was appointed in February 2008 to be responsible in developing a viable

positioning strategy and associated marketing communications plan. The product launch

of Metabical was scheduled in January 2009.

Metabical was the first prescription drug approved by the FDA that targeted specifically

for overweight individuals produced by Cambridge Science Pharmaceuticals (CSP). The

majority of Metabical trial’s participants reached their weight-loss goals by week 12.

Although pricing had not been finalised, CSP estimated the retail price would be

approximately $3 to $5 per day, with the average course of treatment lasting for 12

weeks.

2.0 INTRODUCTION

Excess weight is considered a public health crisis in the U.S, with approximately 65% of

the entire adult population categorised as overweight, obese or severely obese. Being

overweight often related to a number of serious health problems. According to the

American Obesity Association in 2005, it is one of the top leading causes of death in

U.S. In addition to health risks, overweight individuals always feel like social outcasts.

They endure a significant social stigma as well as discrimination. Laziness and self-

indulgence are common stereotypes associated with this group. Their professional life

could also be negatively affected, as excess weight has been found to adversely influence

hiring decisions, wages and promotions.

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Researchers and health care professionals measure excess weight using the Body Mass

Index (BMI) scale. The BMI scale is appropriate for both men and women. It calculates

the relationship between weight and height associated with body fat and health risk.

There are three BMI categories of excess weight for adults: overweight (25 to 30); obese

(30 to 40); and severely, or morbid obese (over 40).

There was no prescription-drug targeted specifically for overweight segment (BMI of 25

to 30) was available in 2008. Though, Alli was the only one over-the-counter (OTC)

weight-loss drug was approved by FDA, it has a lot of negative side effects. These side

effects include gastrointestinal conditions such as loose stools, increased defecation,

incontinence, and abdominal pain. The effects will get worsened when the patient’s diet

included too much fat. The drug industry faced safety concerns when about 30 reports of

liver damaged came into surfaced; including six cased of liver failure were testified. This

had dampened the production for the weight-loss products.

Other OTC solutions such as green tea extract, conjugated linoleic acid, bitter orange,

etc. were categorised as herbal or dietary supplement which did not require stringent

FDA approvals. Thus complications from these would only be discovered until

individual consumed it. One serious case, ephedra was linked to several cases of sudden

cardiac death and other serious health problems. This hurt the industry credibility as a

whole. CSP believed that Metabical could be the only superior product in the market at

that time.

3.0 ISSUES & PROBLEMS

The problem is in identifying and establishing brand positioning and market

segmentation to use based on the market analysis surveyed by CSP. The marketing mix

should have a sufficient initial impact and long term viability on sales so as to recover

CSP initial investment of $400 million in 10 years. CSP had spent so much time and

money in R&D and on FDA trails for Metabical. Printup was well aware that in order to

recover this massive investment, the drug need not only a successful launch, but also a

long term and steady demand. If Metabical were not successful within its initial

consumers, credibility of the drug would be in question and FDA approval would mean

little.

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To decide the best positioning strategy and marketing communication plan, Printup

needed to plan the optimal segmentation, targeting and positioning of the drug. She could

then move on to assessing her current marketing communication strategy and develop a

timeline for the key activities.

4.0 MARKET ANALYSIS

4.1 Market Research

There was an increased percentage of obese and overweight based on the statistic on adult

population in United States between 1976 and 2000. The percentage of overweight group who

had BMI between 25 and 30 was 34% in year 2000, while 25.8% categorised as obese and 4.7%

in the severely obese respectively. The percentage of obesity rose steadily with age in both

genders; the highest occurrence among men age 65 to 74 and women age 55 to 64 with overall

more prevalence in men rather than women. The percentage of obese had also inversely related

with the education level and income level. The highest obesity percentage was those in less than

$25,000 with 32% and level of education less than high school with 27.4%.

4.2 Marketing Survey

An extensive market survey had been conducted in 2007 which included 1,000 men and 1,000

women age ranging from 18 to 70 with BMIs of 25 to 29.9 from various socioeconomic levels.

About 70% of respondents were not satisfied with their current weight. The Figure 1 below

shows that 35% said they were actively trying to lose weight, but just 15% from that sub-segment

mentioned that they were comfortable using drugs to help reach their weight-loss goals. When

being described about the features and benefits of Metabical, 12% of respondents immediately

asked to make an appointment with their health care providers and request a prescription.

Figure 1: 65% non-active; 35% actively trying to lose weight, 15% ready to take drug

65% 15% 35%

Marketing Survey

Non-active

Active

15% ready to use

drugs

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Categorising between genders, 75% of women and 65% of men were dissatisfied with their

current weight and appearance. 50% of women and 30% of men visited a health care provider for

annual physical test, whereas 55% of women and 40% of men wanted to change their behaviour

to live a healthy lifestyle. While 60% of women and 30% of men surveyed had tried and failed to

lose weight in the past five years, the survey revealed about 65% and 35% of respondents were

dissatisfied with the current weight-loss options in the market for women and men respectively.

Based on the report, 75% hold a college degree and 45% hold a high school diploma were aware

of the health risks associated with being moderately overweight. About 65% of 18 to 35 years old

wanted to lose weight to look better, while 60% age 35+ said they wanted to lose weight improve

their overall health. Furthermore, 5% of respondent with income less than $40,000, 11% from

respondents with income between $40,000 to $80,000, and with 20% of respondents with income

more than $80,000 were willing to pay “out of pocket” for a prescription weight-loss drug

(Figure 2).

Figure 2: Respondents willing to pay for a prescription weight-loss drugs.

4.3 Target Market

Based on the findings from the market research and marketing survey carried out by

CSP, we suggest that the target market for Metabical are as following:

End User Health Care Provider

Market Segment: I want to wear my skinny

jeans.

Individuals with age 25 to 40, college

education, household income $50,000 -

$80,000

Physician and medical care that

will act as health consultant.

5%

11%

20%

0%

5%

10%

15%

20%

25%

< $40,000

$40,000 - $80, 000

> $80,000

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The table above shows the type of different segments that we will focus to market

Metabical. From the table above depicts two main target markets which are End User

and Health Care Provider. The end user will focus on overweight female who has BMI of

25 to 30; age between 25 to 40 years old; with college education and income level

between $50,000 to $80,000. The health care provider will focus on physician and

medical care practitioners. These practitioners will act as CSP agents who would

prescribe Metabical for the patients.

5.0 PRODUCT ANALYSIS

For this section, we will identify and analyse the barriers and opportunities for the

Metabical products towards the target market.

5.1 SWOT Analysis

SWOT ANALYSIS

Strength Weaknesses

Metabical gain the FDA approval

Less negative effects compared with

others competitor products

Less consume pills

Reducing stress on heart or liver

Train people with healthier eating

habits

The effects of Gastrointestinal

when consume high levels of fat or

calories

Not suitable for individual with

BMI more than 30

Opportunities Threats

Potential Market

High demands

Overweight people feel like social

outcast

Trauma from the dietary drugs

Competitions with OTC products

and herbal supplements.

Swot analysis above show the internal strength and weaknesses of the products. Then the

second row of Swot table depicts the external opportunities and threat by comparing with

the other competitors and the industry itself. From the analysis above shows Metabical has

low threats to them compare with many opportunities of the products. Other than that, the

weaknesses of the products also low if compare with the strength of the products itself.

From analysis above give some hints that this product will help CSP to gain more profits

and benefits in the future.

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5.2 Competitor Analysis

Category Alli

Xenical

Metabical

Weight loss

drugs

Yes Yes Yes

Approved by

FDA

Yes Yes Yes

Side Effects Severe

Gastrointestinal and

liver damage

Severe

Gastrointestinal and

liver damage

Less

Gastrointestinal

Clinically

Proven

Non Non Yes

Uniqueness Non Non Guarantee 12

weeks weight loss

From the competitor analysis will show that Metabical have less side effects compared

with ALLI and Xenical drugs that cause negative impact to customer health. Other than

that, Metabical have clinically proven and previous user who took this product maintained

for three years, with weight loss levels of 10% from what clinical trial participants had

experienced.

5.3 Perceptual Mapping

Health Risk

Other OTC

weight loss

Clinically Proven

Others herbals and

dietary

supplements

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The perceptual mapping above shows the placement of every weight loss products. It

depicts that Metabical placed as a leader from the other competitors. It show that

Metabical at the best point which is clinically proven with the low risk. The conclusion

is, Metabical can monopoly big market share in the weight loss industry and with the

exclusivity for 10 years will help CSP to gain better profits for future.

6.0 MARKETING STRATEGY

Based on the Metabical case study, Barbara Printup forecasting three types of marketing

style that she will applies for the first year of January 2009.

6.1 Advertising

Direct to consumer (DTC) advertising is the way how to influence people to buy the

products. In drug industry, it was quite uncommon and DTC was the new phenomena for

the industry. Printup strategy included a DTC television, online, radio and print media

blitz at the time of the drug lunch for the first year to establish the Metabical names. The

primary target was patients knowledge and the awareness of Metabical products that can

help to solve all their weight problems. Example of initial concepts for the DTC ads:

“Losing weight is though”. You don’t have to do it alone. Let Metabical and your

health care provider start you on the road to a healthy weight and better life.

“Look your best”. Shed excess pounds with Metabical and discover a happier, more

attractive you. Metabical- all you need to succeed.

“Those extra 20 pounds could be killing you”. Being overweight leads to heart

disease, high blood pressure, diabetes, and gallbladder disease. It’s time to get

healthy- Metabical can help.

6.2 Promotions and Public Relation

Promotions Strategies

Health care provider and Physician End consumer

Through campaign to provide information Through Campaigns to create awareness

Mailing to 100,000 health care provider Viral marketing campaign “The

Metabical Challenge

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Medical education events and series of

podcast aimed at physicians

Social networking sites

Medical research symposium Contestant blog s to create buzz about

Metabical

The table above shows the focus of marketing strategy to the primary and secondary

targets. During the first year launch will cost CSP approximately $4.3 mill to cover all of

the campaigns and marketing activities. These campaigns will help the company to raise

awareness among the people about Metabical benefits that can solve the overweight

problem.

6.3 Sales Force

According to the case, the Metabical sales team consists of 32 sales representatives who

called on approximately 3,200 medical offices. This sales team will focusing the most

geographically accessible and responsive to drug-rep visits. Each CSP sales

representative visited four practices per day, on average. CSP sales team responsible for

two gastrointestinal drugs was directed to detail Metabical to health care providers in

their territories. Printup will work with the director of sales for this team to develop sales

scripts and presentations providing clinical information.

For established drugs, CSP sales reps will visited targeted medical offices four time a

year to discuss the drug and provide samples. CSP sales rep also sponsored promotional

Lunch & Learn seminars for health care providers. This events objective is to distribute

the information about the featured drug.

7.0 PROPOSED MARKETING STARTEGY

7.1 Timeline Marketing Strategy

According to the case, Metabical will receive 10 years exclusivity in market that others

cannot to imitate the products. Here is the timeline for 10 years for Metabical to generate

back the profits after the CSP spent in R&D and on FDA that cost 400 million to the

company.

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7.1.1 0 – 2 Years Strategy (Push Strategy)

During this time phase, Printup needs to expose the information and benefits to their

Primary and Secondary target:

Advertising and Public relation: Primary and Secondary target

a) Physician and medical care

Both of these two parties will be exposed on Metabical information during the public

relation strategy. Under this program will have two events, first is roundtable

discussion about the drugs with prominent thought leaders in the medical community.

Printup will also discussed coverage of this event with several leading news

organizations to ensure they will gain the information and publish the information to

publics.

Second event would be a medical research symposium that was open to members of

the media and to medical professional. This event would occur the same week as the

drug’s lunch. The participants that will involve in the programs are come from

medical researcher in cardiology, diabetes, gastroenterology, depression therapy, and

oncology that will serve as keynote speakers, and a series of breakout session

focusing on health issues for overweight patients.

0 -2 Years Year 2 – Year

5

Year 5 – Year

10

Push Strategy: (Primary and

secondary target)

i) Promotion

ii) Advertising

iii) Public Relations

iv) Sales Force

Pull Strategy: (Primary target)

i) Testimony Results

ii) Road Show

iii) Promotions Campaign

iv) Support Program

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Advertising will be also use to target the professional medical community. This part

of the campaign would include print ads in leading medical publications (E.g.,

Journal of the American Medical association) and interactive ads adjacent to online

physician resource information (E.g., PDR.net) to raise awareness about the drug and

its benefits. CSP will launch the three different advertising concepts aimed at health

care providers:

Give your overweight patients a safe alternative to fad diets and dangerous

OTC drugs. Introducing Metabical – Clinically proven weight-loss drug.

Atherosclerosis, coronary artery disease, high blood pressure, diabetes, and

gallbladder disease. Your overweight patients are dying for help. Introducing

Metabical – FDA approved weight-loss drug.

Empower your patients to lose excess weight, change their unhealthy eating

habits, and achieve long-term success. Introducing Metabical – short-term

drug therapy and comprehensive support program for overweight patients. It

gets results.

b) People with BMI 30 and below

To expose the information about the Metabical to public, the advertising, promotion

and direct selling strategy will be implemented to ensure they will get much

information about Metabical drugs weight loss.

For the advertising strategy, direct to consumer (DTC) advertising is the way how to

influence people to buy the products. In drug industry, it was quite uncommon and

DTC was the new phenomena for the industry. Printup strategy included a DTC

television, online, radio and print media blitz at the time of the drug lunch for the first

year to establish the Metabical names. The primary target was patients’ knowledge

and the awareness of Metabical products that can help to solve all their weight

problems. Example of initial concepts for the DTC ads:

“Losing weight is though”. You don’t have to do it alone. Let Metabical and

your health care provider start you on the road to a healthy weight and better

life.

“Look your best”. Shed excess pounds with Metabical and discover a

happier, more attractive you. Metabical- all you need to succeed.

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“Those extra 20 pounds could be killing you”. Being overweight leads to

heart disease, high blood pressure, diabetes, and gallbladder disease. It’s time

to get healthy- Metabical can help.

Health care campaign: Primary and Secondary target

Through this campaign will aim at both the health care providers and the end consumers.

Approximately $1.3 million will be earmarked for these promotional activities during

this phase year. Other than that, the mailing strategies for 100,000 health care providers

will also include during this campaign which included an information pamphlet about the

drug and reply card offering a sample of the support program.

For the customer, the viral marketing strategy will be applied to attract customer to buy

the drugs. This viral marketing should be in online contest “The Metabical Challenge” to

challenge the people who can achieve their aim weight by using this drug. Other than

that, the viral marketing will be implementing through social networking sites such as

Facebooks, Twitter, Instagram and Blog to create buzz about Metabical.

Sales Force: Secondary Target

A CSP Sales team will responsible for two gastrointestinal drugs directed to give details

of Metabical to the health care providers in their territories, and add it to their existing

portfolios. CSP sales reps typically visited targeted medical offices four times a year to

discuss the drug and provide samples. The sales force will focus on offices that were the

most geographically accessible and responsive to drug-rep visits. Each CSP sales

representative visited four practices per day, on average.

During this time, the both targeted group will be know the existing of Metabical in the

weight loss industry. They will gain enough information about the Metabical and slowly

will be influence to try the products.

7.2.2 Year 2 to Year 10 (Pull Strategy)

Testimony Results

During this phase, we will only focusing on primary target which is people with BMI 30

and below. On the year 2, obviously CSP will gain the permanent customer who already

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bought and tried the Metabical drugs. Through the previous user will help the CSP to

gain enough information and experiences from them. This experience will be known as

testimony user to attract the new customer to buy the Metabical Products. By using the

testimony results, CSP will put it in their pamphlets and distributed to the overweight

group that will influence them to buy the Metabical drugs.

Road Show

CSP sales team will start to promote the drug to other places within the U.S country to

promote the Metabical weight loss drugs. During this road show, customer will be

attending the talk session to get the more information about the drugs that can fight and

block the fats. The Metabical also will be sold on this road show with discounted price

and the customer will get the free e-books that will teach them a healthy life style. CSP

teams will gain the prominent information especially customer email and home address

so that it will be easily to send them any promotion events.

Promotions Campaign

For every year, CSP will have to do a promotion campaign that will focus on urban area

such as the big cities at United States. As we know, under this region the group of people

that have the weight problems are huge and this is the good place to tackle the problems

through the selling of Metabical drugs. Therefore, CSP will have the collaboration with

health care provider to help them make this campaign success.

Support Programs

All customers who are buying the Metabical products will be registered under the

support programs. This support program will include reference material such as online

weight control tools. Under this weight control tools will have a weight loss tracker, food

diary, nutritional and calories calculator. Other than that, this support program will have

the personal support, meals plans, and exercise plan that will help the user to chive their

weight goals. Every user can access this program for two years starting from their

purchasing products.

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8.0 CONCLUSION

Type of people Survey Results

(2008)

(Total of people)

Overweight 34% 78.2 Mill

Actively trying to lose weight (refer

to Figure 1)

35% 27.3 Mill

Ready to use drugs (refer to Figure 1) 15% 4.106 Mill

*U.S adult population was approximately 230 Million in 2008, 34% were known as

overweight group.

The table above depicts that only 34% from the overall 230 million of people is

overweight; from which, only 27.3 million people are actively trying to lose weight.

However there are only 4.106 million of people ready to use prescription weight-loss

drugs. Below is the projected profit that CSP will gain from the customer in the first

year:

Items Info

Per Pill Price $5.00

Course of Treatments 12 weeks (84 days)

Daily Usage One pill each day

Total Price Spending by Customer (A) RM420.00

Possibility of potential customer (B) 4.106 million people

Total possibility of profits (A x B) 1.724 billion people

Total of overall cost (R&D, Marketing Budget and

FDA)

$ 423,146,000

The total net profit after the overall cost $ 1. 301 billion

From the table above shows that with projected sales, CSP will enjoy a big profit margin

by gaining approximately $ 1.724 billion. Therefore, it can already pay back the overall

total cost for Metabical in terms of R&D, FDA trials and marketing cost; with a total net

profit of $ 1.301 billion. According to the ABC news, the annual revenue of U.S weight-

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loss industry contributed to approximately $20 billion. This means that Metabical can

gain more profit from the total of net profit based on the table above.

Printup could strategically planned strong and comprehensive marketing communication

approaches that focus on creating the brand awareness and benefits to the targeted group.

Being the only approved prescription drug for weight-loss by FDA will definitely gain

the customers’ attention thus improve the stability of the already dampened industry.

With the market research and market survey done, the marketing communication

approaches of Metabical would be successful in creating a high demand for the product

and ensure a sustainable growth for many years to come.

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References

ABC News (May 2012). 100 Million Dieters, $20 Billion: The Weight-Loss Industry by the

Numbers. Retrieved November 20, 2014 from: http://abcnews.go.com/Health/100-million-

dieters-20-billion-weight-loss-industry/story?id=16297197

Kotler, P., & Keller, K. L. (2012). Marketing Books (14th

edition)

David, F. R. (2012). Push and Pull strategy. Retrieved from http://www.marketing-made-

simple.com/articles/push-pull-strategy.htm#.VHskqTGUdw8

Martin, M. J.C. (1994). Managing Innovation and Entrepreneurship in Technology-based

Firms

AllI weight loss products. Retrieved November 20, 2014 from http://www.myalli.com/

Xenical weight loss products. Retrieved November 20, 2014from

http://www.roche.com/products/product-details.htm?type=product&id=100

One aDay weight loss products. Retrieved from http://www.oneaday.com/products.html