Do you remember…

WEIGHT LOSS DRUGS DIET PLAN EXERCISE PLAN WEIGHT MANAGEMENT SUPPORT PROGRAM

CURRENT SOLUTIONS

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

BETTER SOLUTION

METABICAL

A choice to have the best of both worlds

is finally in your hands

Product benefits Target customers Packaging strategy Forecasting demand Pricing strategy Profitability and ROI

OBJECTIVES:

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

Metabical

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

Our priority

“ I want to make a difference to my life.”

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)

Factors affecting packaging

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

Why the 12 week program

Customer satisfaction is our priority

$$$

Brand value

Customer satisfaction

Optimum result

Completion of 12 weeks program

Approach Demand forecast(millions)

1 619

2 680

3 1242

Demand outlooks

A niche market can also give rise to a high

demand

Option 2 is a good pricing strategy

Pricing strategy

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

Advantages of Option 2 of 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

Disadvantages of option 2 pricing

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

Advantages 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

Disadvantages of other pricing options

Retail price ($) ROI ( with approach 3) (in

%)

75 103.62125 239.37150 307.24

Profitability & ROI

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

ROI-Advantages

Thank you