Metabical: Positioning and Communications Strategy for a New Weight-Loss Drug

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Metabical: Positioning and Communications Strategy for a New Weight-Loss Drug Case Study Case Article:Click Here

Questions for Analysis
1. Metabical is faced with the task of positioning their product in the marketplace. Using the information from the case and your assigned readings, who are the key target segments for Metabical and what points of difference should be directed to each segment?

Key Segments for Metabical are

1. End consumer(the patient) - Over weight adults in US (BMI 25-30) 2. Health care providers.

Based on the drug’s design, the market survey and demographic data, key consumer target segments (given already that everyone targeted has a Body Mass Index between 25 and 30) appear to be women, those aged 35+, those making greater than $40,000 a year, and those with at least some college education. In addition, key business segments are health care providers (doctors) and insurance companies . For women, they represent a large portion of those that are overweight (62% - Exhibit 1 breaks down by age), those that are unhappy with their weight (75%) and those that have previously tried to lose weight via another means and failed (60%), making it measureable and accessible. This segment would be interested in the clinically proven success of Metabical and the ease of taking the drug versus competitors (one pill a day as opposed to one pill per meal). In addition, the design of the pill and the subsequent comprehensive support program (that is more detailed and runs for a greater duration than the competition) re-enforces the idea of a change in behavior to lead a healthier lifestyle (desired by 55% of women and is identified as 1 of 5 psychographic segments of women). Finally, the presentation of Metabical as a new, physician-endorsed, FDA-approved weight-loss option reaches out to the majority of women who visit the doctor annually (55%) and are currently dissatisfied with current weight-loss options (65 %). For those aged 35+, Metabical encompasses 3 of the 5 female psychographic groups:” I want to be healthier, I want to wear my skinny jeans, I want to lose weight only if it’s easy .” The previously mentioned changes to behavior and the support group capture the first and the single-pill-per-day advantage caters to the third. The second psychographic group can be included by Metabical’s clinical proof of modest weight loss (15 to 26 pounds), which is realistic for women looking to lose just enough to get back in to their “skinny jeans” (as opposed to women 18-30 that have the unrealistic belief of easily being able to look like a movie star). As the functionality of Metabical is more geared toward improving overall health, the larger target segment is those 35+ versus those 18-35 (60% to 35 %). Despite the fact the target segment of those making over $40,000 has a smaller occurrence of obesity, it is still vital due to the cost of the drug. Metabical can be viewed as relatively inexpensive compared to the benefit. The $3-$5 a day (for 12 weeks) could be likened to giving up a hamburger combo. In addition, extra value can be created via access to the support program. Regardless, there is a very small percentage of survey respondents with incomes below $40,000 that said they would be willing to pay for the drug “out of pocket” (5%). Insurance companies have not yet agreed to pay for the costs, so it is more substantial to target the two other income groups sampled ($40,000 to $80,000 and above $80,000), as their likelihood of buying the drug “out of pocket” is double and quadruple (11% and 20% respectively – Exhibit 2 pertains). Finally, the income group of those making more than $40,000 a year includes the 3 female psychographic groups previously identified as most likely to react to a change in lifestyle (I want to be healthier - $80,000+); the proven, modest loss of weight (I want to wear my skinny jeans - $50,000-$80,000); and the ease of the taking the pill only...
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