Metabical GROUP 2

How you define Obesity?

Is obesity a disease?

Obesity AwarenessVIDEO CLIP

• Excess weight approximately 65% of the

entire adult population

• Being overweight is related to a number of

serious health complication

• Overweight individual endure a significant

social stigma

• Laziness and self-indulgence are common

stereotypes associated with overweight

• The professional life negatively affected the

hiring decision, wages, and promotions

Health and Social Issues

BMIFormula

Catagories:

Over Wight: 25 to 30

Obese: 30 to 40

Severly Obese: ≥ 40

MetabicalCASE INTRODUCTION

Market DynamicsFew weight loss drugs

Only one other drug approved by FDA (Alli)

Negative side effects of Alli these drugs including liver damage & heart diseases

Alternate herbal products / dietary supplements which are unregulated and not approved by FDA

Serious side effects of these supplements including heart disease (Ephadra banned by FDA)

Deceptive marketing

Low market credibility

Unsubstantiated weight loss claim

Federal Trade Commission penalized weight loss drug manufacturers with a fine of 25 million dollars

Cambridge SciencePharma.International health care company

Expertise in developing and manufacturing products that treat metabolic disorders gastro intestinal diseases and immune deficiencies

Over $25 billion sales in 2007

Strong financial position

High focus on R&D

Geographical Distribution of Overweight & Obese

BMI Trends in US Population

1976 to 1980 1988 to 1998 1999 to 20000.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

BMI Trends in US Population

Overweight25 ≤ BMI ≤ 30

Obese31 ≤ BMI ≤ 40

Severly ObeseBMI ≥ 40

Obesity vs Ethnicity & Education

Metabical – Obesity Killer

Weight loss drugApproved by FDA12 week weight loss program with intake of 1 pill per dayLess side effects Effective in behavior modification Ineffective with people having BMI of over 30Average weight loss of 26 pounds in 12 weeks (BMI level of 28 to 30)Average weight loss of 15 pounds in 12 weeks (BMI level of 25 to 28)

Metabical PromotionVIDEO CLIP

SWOT Analysis

Strengths• Approved by FDA• Lesser Side effects• Low dosage required• Positive results within

time

Weakness• Not effective on people

with over 30 BMI level• Gastro intestinal

discomfort on high fat and calories consumption

Opportunities• 65% adult population

obese• Social stigma for

overweight people• Obesity a major cause of

death in US

Threats• Competitors can come

up with similar or better products

• Less consumer awareness

• Low credibility of weight loss products

Marketing Strategy

TargetMarket

Consumers

Gender: Male & Female

Demography: 25 to 70 years

Focus: 25 ≤ BMI ≤ 30

Income: Medium to High Income Level

Health insurers

Doctors

Health care advisors

Positioning Statement

Communication Strategy

Promotion◦ ATL Campaigns

◦ TV advertisements◦ Radio◦ Billboards◦ Print Ads (Newspapers & Medical

Journals)◦ BTL Campaigns◦Awareness Seminars◦ Social Media◦ Personal Selling (Doctors &

Health Providers)

Availability & PricingPRICING

• 1 weeks package

(5$ per capsule)

• 4 weeks package

(4.5$ per capsule)

• 8 weeks package

(4 $ per capsule +

Support program CD)

• 12weeks package

(3.5 $ per capsule +

Support program CD)

PLACE

• Pharmacy

• Hospitals

Price SimulationParticulars Metabical Alli (Competitor)

Estimated Retail Price $3 to $5 per pill $ 120 per pack or $ 2.40 per pillDosage 1 pill daily 1 pill daily

Treatment 12 weeks (90 days) 50 days

Estimated Retail PricePrice per pill ($) 3 4 5 Revenue per month ($) 90 120 150 Revenue per month ($) 1,080 1,440 1,800

Potential Consumer Reach aSales Forecast

YearsPopulation Overweight Potential Users Respondent % of

consumers actually buying

Consumers Reach

(Millions) 25<BMI<30 (Millions) (Market Survey) (Millions)

2007 220 37% 74.80 12% 10% 0.90 2008 230 39% 89.70 12% 10% 1.08

Assumption:- Through Market survey it is confirmed that average 12% respondent make appointment with health care provider.- It is assumed that 10% of total population actually buying the product.

Estimated Number of Packs to be sold:

Years Consumers Pack (90 days program)

Sales Pack(in Millions USD)

Sales $ 120/pack(in Million USD)

2007 0.90 3 2.69 323.14

2008 1.08 3 3.23 387.50

Return on Investment

* Average Return on Investment is 167%* Payback Period 1.27 years

Return on Investment Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Sales Turnover ($ million) - 348 382 420 463 509

Initial Investment (400) - - - - -

Marketing Expense (24)

(24) (20) (18) (11) (15)

Net Cash Flow for the year (424) 324 362 402 452 494

Accumulated Cash Flow ($ million) (424)

(101) 262 664 1,116 1,610

Return on Investment -24% 62% 157% 263% 380%