Metabical Case Solution
Cambridge Scientific Pharmaceuticals has introduced Metabical as a safe and effective prescription drug for weight loss. Although still awaiting FDA approval, it was created to help moderately overweight people lose weight. The most important and substantial problem for Metabical today is that the product launch is scheduled for January 2009, but it has not yet had to formulate a positioning / pricing strategy or demand forecast. Metabical is expected to reimburse $ 400 million for research and development and FDA approval. To do this, Metabical must assess its market position and select the target with the highest demand forecast based on the demand forecast to cover the initial cost of $ 400 million.
The first alternative process for choosing and picking the right target market is mentioned in the following process:
- See, for example, the number of obese and overweight individuals with BMIs between 25 and 30 in the United States (78.2 million)
- This is multiplied by the 35 percent which is the estimated population to decrease over weight) 27.37 million
- After that, it is multiplied by the number 15 percent (the number satisfied with weight loss drugs) -4,105,500
- Metabical estimates that 10%, 15%, 20%, 25% and 30% will be caught within 1 to 5 years.
A more aggressive strategy can be used for Metabical:
- Take, for example, the U.S. population (78.2 million) with a BMI between 25 and 30
- They occupy 12% of this (metabolic target market) 9.384 million
- Metabical estimates 10%, 15%, 20%, 25% and 30% will be within 1 to 5 years.
The third alternative process for choosing and picking the right target market is mentioned in the following process:
- Take, for example, the number of obese and overweight individual women in the United States, 35-65 years old, and female college graduates
- Metabical estimates that 10%, 15%, 20%, 25% and 30% will be caught in 1 to 5 years.
Recommendations Before Epidemic
In my opinion, with Metabical’s best interest in mind, she is also a woman from the 35-65 age group who is overweight (BMI 25-30). The target corresponds to 4,300,000 people. Metabical has estimated that it will capture 30, 35, 40, 45 and 50% of the recordings over the next 5 years. Based on the demographic data selected here, the highest price point was chosen for the analysis. It can be assumed that women aged 35 to 65 have an identical disposable income and will be more willing to pay for medications and weight loss prescriptions. The product has also been prescribed and approved by the FDA, so it can also prove a high price tag. In this analysis, this recommendation could result in a return of approximately 126%. This demand forecast and pricing model that has been chooses, is very realistic as the product can improve and even save lives. This proposal is problematic. The calculations are shown in Exhibit 1 of the document…………………..
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