Company introduction:

Cambridge science pharmaceuticals is an international healthcare company with over $25

billion sales in 2007. They develop, manufacture and markets products to treat issues like
metabolic disorders, gastrointestinal deficiencies and immune deficiencies. Their new
product Metabical is an initiative to enter into the new markets as a weight loss drug.

Product:
It is the first prescription drug specifically approved for overweight individuals specifically
between BMI 25-30. It contains an appetite suppressant, a fat blocker and calorie absorbent
agent. These ingredients are far more superior to current drugs. It is proven to have less
adverse effects.

Marketing challenges:
Positioning of the product is the major challenge concerning this product. The market mix
which includes product, place, pricing and promotion are the issues faced by Metabical and
needs focussing.

Competitors:
Severe obese drugs currently in the market. Direct competitors are Meridia which is used as
appetite suppressant and Xenical which is used as fat absorption blocker. Both these drugs
have serious effects. Alli is the only approved OTC drug and all the other over the counter
medicines for weight loss are herbal powders or dietary supplements.

SWOT:
Strengths:
 Active compounds in Metabical have less adverse effects than other drugs in the
market.
 Active at low doses.
 Prescription drug than OTC
Weakness:
 Not effective for obese individuals
 Side effects when taken with fat food
 Product must be taken at same time everyday
Opportunities:
 Only prescription weight loss drug with FDA approval.
Threats:
 Target market is limited.
 Financial loss if the drug is not well accepted.
Pricing:
 Price based on OTC Alli is $75.
 Price based on CSP drug price margin is $125.
 Price based on the target market it $150.

Packaging:
Blister style packing as the drug must be taken at same time every day. It’s a 12 weeks pack
which must be completed as per the program for enhanced results.

Placement and Promotion:

The target audience are college educated, overweight females and with ages between 35-65.
It’s a safe drug when compared to other drugs on the market. It should be promoting
the positivity and self-esteem.
A proper product line is necessary to maintain the product name in the market. Promotion by
nutritionists and pharmacy stores are necessary. Advertising the feedback from
customers and showcasing the self esteem elements in people. Focussing on target
population and convincing them to use a 12-week plan.

Recommendation:
CSP should price Metabical at a price that will at least break even by year 5. CSP should
finalize the price at $135.