Metabical: Case Analysis
272593
BUS 474 A
02/14/2011
Metabical
After spending millions of dollars for ten years in research and development, Metabical was finally able to receive FDA approval, making it the first and only drug to receive FDA approval to meet the needs of customers who have been trying to lose weight. Like with any other new product, numerous issues need to be considered before Metabical is actually introduced in the market. Decisions about pricing, packaging and demand forecast of the product are key to the success of Metabical. Barbara Printup, senior director of marketing for CSP, needs to analyze the market critically in order to decide the pricing and packaging strategy and forecast the demand for the product before it is launched. The demand forecast and the pricing and packaging strategies all plays a significant role in determining the long-term success of Metabical because the drug market is intensely competitive and only those products which are marketed with innovative strategies can survive in the market. Packaging decision is the first thing that needs to be taken care of. Since FDA trials showed that most of the people were able to achieve their weight loss goals by week twelve, the drug would be approved as a twelve- week treatment plan. The major issue that Printup needs to consider is the number of pills that would be included in each pack. Packing the entire twelve- week supply in one package does sound like a good plan but CSP should not forget that packaging plan directly ties in with the pricing plan and can have a huge effect on the number of potential customers. Even though the twelve- week supply package will enable the customers to complete the twelve- week cycle without dropping out, it does limit the potential customers to only those who can afford the entire medication program with one-time pay. Exhibit 1 shows that the highest percentage of obese people is in the lower income bracket. 32.5% of the obese people earn less than $25000.
BUS 474 A
02/14/2011
Metabical
After spending millions of dollars for ten years in research and development, Metabical was finally able to receive FDA approval, making it the first and only drug to receive FDA approval to meet the needs of customers who have been trying to lose weight. Like with any other new product, numerous issues need to be considered before Metabical is actually introduced in the market. Decisions about pricing, packaging and demand forecast of the product are key to the success of Metabical. Barbara Printup, senior director of marketing for CSP, needs to analyze the market critically in order to decide the pricing and packaging strategy and forecast the demand for the product before it is launched. The demand forecast and the pricing and packaging strategies all plays a significant role in determining the long-term success of Metabical because the drug market is intensely competitive and only those products which are marketed with innovative strategies can survive in the market. Packaging decision is the first thing that needs to be taken care of. Since FDA trials showed that most of the people were able to achieve their weight loss goals by week twelve, the drug would be approved as a twelve- week treatment plan. The major issue that Printup needs to consider is the number of pills that would be included in each pack. Packing the entire twelve- week supply in one package does sound like a good plan but CSP should not forget that packaging plan directly ties in with the pricing plan and can have a huge effect on the number of potential customers. Even though the twelve- week supply package will enable the customers to complete the twelve- week cycle without dropping out, it does limit the potential customers to only those who can afford the entire medication program with one-time pay. Exhibit 1 shows that the highest percentage of obese people is in the lower income bracket. 32.5% of the obese people earn less than $25000.