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Pricing, Packaging
and Demand
Forecasting for a
new Weight-Loss
Drug
Group Members:
Imran shah
Salman Ahmad
Khadija Abubakar
Adeel Siddiqui
WHAT IS METABICAL
Safe and effective weight-loss drug
Introduced by CSP
Prescription drug
Awaiting FDA approval
For moderately overweight individuals
Guaranteed weight loss in 12 weeks
Leads to healthier lifestyle
Not effective in helping individuals of BMI of 30 or greater
Prices at $3- $5 a day (avg $350 for the entire course)
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNI
TY
THREAT
FDA approval
Few negative side effects
Works in low dose
Reduces stress on heart and liver
ISSUES
Optimal Package Size
Pricing
Initial Demand Forecast
PRICING
Benchmarking against market competition
Pros: A base for pricing is present. Goals are easy to
meet.
Cons: positioned as similar to other competitors in
the market. Hard to market the products full
value.
Measuring Value Proposition
Pros: Full value is extracted. A niche feeling is built.
Cons: May be too aggressively priced. Highly
dependent on consumer behavior.
Leveraging product position market
Pros: Product is valued well. A niche product idea.
Cons: Full value is not extracted. Broad market
segment may not pay for the value of the
FORECASTING
Forecasting Method 1
Pros: 1. The Method is very structured.
2. The whole over-weight market is considered
in the forecast and very little data is assumed.
Most data comes form market research.
Cons: 1. Considering it is the first of its kind, full value
is not being leveraged.
2. The estimate is spread very broad. It is hard to
predict the behavior of such a broad segment of
customers.
3. May not be accepted as easily by the low-income
groups as compared to the high-income groups.
4. Hard to create a brand across multiple
demographics.
FORECASTING
Forecasting Method 2
Pros: 1. The Method is aggressively priced and
estimated.
2. Leverages the uniqueness of the product.
3. Will create an image of uniqueness and
something that works outstanding.
Cons:
1. May not be able to meet forecasted results
due to aggressive pricing.
2. The estimate is still spread very broad. It is hard to
predict the behavior of such a broad segment of
customers.
FORECASTING
Forecasting Method 3
Pros: 1. The Method is aimed at a particular segment
i.e. women above 35.
2. Aggressively priced, but portrayed as a niche
brand.
3. A clear picture of the market they are targeting and
attractive pricing in relation to the benefits the
product is delivering.
Cons:
1. There is very small room for failure as it is
being promoted as a niche product.
2. Gender bias may mean loss of half the segment in
a single shot.
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