Method 1

Number of Americans with 25 > BMI > 30

x 35% actively trying to lose weight
x 15% who are comfortable using diet pills
10% who might purchase Metabical in Year 1
adding 5% each subsequent year
plus 60% buy a second package
plus 20% of these buy a third package
Sales

Method 2
Number of Americans with 25 > BMI > 30
x 12% say they will go to a doctor to request prescription
10% who might purchase Metabical in Year 1
adding 5% each subsequent year
plus 60% buy a second package
plus 20% of these buy a third package
Sales

Manufacturer Gross Margin

Retail Price $75
Method 1
Method 2
Retail Price $125
Method 1
Method 2
Retail Price $150
Method 1
Method 2

10%
Year 1
71060000
24871000
3730650

373065
223839

Marketing Costs
Manufacturing Overhead (1.2 million/year)
R&D (Sunk cost of $ 400 million)
Total Investment

15%
Year 2

20%
Year 3

25%
Year 4

30%
Year 5

71060000
24871000
3730650

71060000
24871000
3730650

71060000
24871000
3730650

71060000
24871000
3730650

559597.5
335759

746130
447678

932662.5
559598

1119195
671517

35%
15%

5%

5%
60%

5%
49.6

5%

5,551,207
5% 8,326,810
11,102,414
13,878,018
16,653,621
55,512,070
185,040,229

-0.20972287

18,504,024
234146000
422,949,120

0.806347834

1,850,402
2,775,604
3,700,805
4,626,006
5,551,207
111,024,135

11,102,414
16,653,622
22,204,829
27,756,036
33,307,234

YEAR 1 Ongoing
Advertising
Push (Prescriber)
Pull (DTC)
Total Advertising

Promotion
Development of support program
Lunch and Learn seminars
Production support program
Training/ promotional materials
Direct mailings to health care provider
Total Promotion

Public Relations
Medical education meetings & events
Press release/ materials
Total Public Relations

Market research
Sales force allocation
Product management allocation

TOTAL BUDGET

1,000,000
12,000,000

1,000,000
6,000,000

13,000,000

7,000,000

200,000
600,000
2,000,000
500,000
200,000

300,000
2,000,000
500,000
200,000

3,500,000

3,000,000

3,500,000
800,000

1,750,000
800,000

4,300,000

2,550,000

600,000
1,491,000
255,000

600,000
1,491,000
255,000

2,346,000

2,346,000

23,146,000

14,896,000

234146000