Metabical Case Study

Topics: Obesity, Food and Drug Administration, Marketing, Body mass index / Pages: 3 (678 words) / Published: Sep 22nd, 2010
Metabical (Case study)

Case Facts
• Metabical is a prescription drug produced by Cambridge Sciences Pharmaceuticals (CSP) for weight loss. • It was the first and only prescription drug to obtain FDA approval for weight loss (overweight category) drug. • The company had conducted an elaborate market research program for identifying the target segment and positioning the product. • Competitors: FDA approved OTC drug Alli. • Marketing strategy: – DTC advertising- celebrity endorser, TV, radio, internet, print media Patient‟s knowledge and awareness about the drug top priority – Advertising with Medical community- print ad in leading medical publications

• People with a body mass index (BMI) of 28 to 30 had an average weight loss of 26 pounds over a 12 weeks & people with a BMI of 25-28 had an average weight loss of 15 pounds using metabical. • CSP wanted to base their new product comparably to Alli, but felt Metabical could be priced at a premium due to the need of a prescription to get the drug. • Pricing was a main concern with this product and several scenarios were run to try and project and forecast where the pricing would make the best return on investment (ROI). • Packaging - The weight loss drug available in three four-week packages. • The four week packaging was at the specific point where the consumer did not have to spend too much money to buy it, yet got invested in the product enough that they would come back to buy the second and third portions

Marketing Research
– According to the US survey • 34% overweight • 25.8% obese • 4.7% severely obese – Health care providers were positive about the prospects of weight loss drugs. – Responses of individuals: indicates 12% would immediately opt for such a solution. – Focus group: Need of Prescription-strength drug with FDA approval & clinical results to backup weight loss results.

Decision making
The process of decision making for the consumers would follow the hierarchy of effects and

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