Written Assignment unit 5 1

Written Assignment unit -5

BUS 5112 Marketing Management

University of the People

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Introduction :

In this discussion, I will describe possible pricing strategies for a brand new pharmaceutical

product Medi- Cult, it is a Danish origin biotechnology company which is renowned for its

specialization in cell culture media. Medi-Cult launched a different option to In Vitro

Fertilization, which is termed as Vitro Maturation (IVM).These techniques help the infertile

couples to have children .IVM remarkably lessen the timeline to mature the egg from thirty

days to two days only. Important part is , this treatment is hormone free so there no

psychological and physical side effects .This technology is mainly used as a clinical

application and industrial application .This research will emphasizes on the marketing and

pricing strategy for the target market .This assignment will describe about author’s standpoint

on pricing strategy to ensure maximum profit margin of Medi- Cult in the short and long run .

Major markets for Medi-Cult products:

IVM by Medi– Cult is a great achievement of assisted reproductive techniques, it leads

many benefits for female infertility treatment .It helps to avoid extra cost, time and health risk

burden and providing an better alternative to the IVM method (Ardian ,n.d). IVM method

offers many facilities for women based on in Vintro Maturation: IVM,(n.d):

 Women should use IVM who are planning to have chemotherapy, radiation therapy or

surgery. IVM can bring benefit to the couple who have been unsuccessful in IVF

treatment ,it also helps the women who has fear to injection .
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 IVM can be used for some cases which leads infertility like tubal obstruction and the

husband wo has a small and weak sperm count.

 IVM technology is very much essential for the woman who has polycystic syndrome

or who has high risk of ovarian stimulation syndrome (OHSS) .

The striking benefits IVM to consumers:

As stated by Ardani(n.d) the IVM provides excellent benefits to the customer .

 IVM method removes step of hormonal stimulations in the process.

 It can helps to get rid of side effect for hormonal stimulation.

 It helps to reduce the cost of lab work; it helps for reduction of cost approximately 90 %

for lab work and 10 % for other costs.

 It helps to reduce the time of maturing cost form 30 days to 2 days.

Apart from the above physical factors, the above benefit can be considered as in terms of

psychology, which can be, describes as mentioned below.

 Reduce pain and secure the safety (For example for the patients of PCOS as this

group has the risk of ovarian hyper stimulation.

 It helps to restrict injection and no hormonal injections.

 Short time period for the treatment.

 It is cost effective comparing with IVF method, approximately 30% less.

Considering the mentioned benefits, it can be said that IVM is a better method for customers .

Medi- Cult marketing strategy model:

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According to Ardani,(n.d) the Medi –Cult Company marketing strategy need to use Hub and

spoke approach .As stated by BTM Micro(2015) the hub and spoke model is used to a content

marketing strategy ,it ties up altogether .Medi – Cult needs to analyze a communication

strategy for every target market .

 Global market: The strategy will emphasize on operating strategy, self-organization or alliance

with a local medical company or sell the IVM technique .Furthermore transmission message

should be localized .The pricing strategy requires to be modified to co-ordinate with the

features in international markets.

 Customer market segment: Medi –Cult requires to make a ‘reason for trust ‘for target

customers ..Confirming the true benefits IVM method helps in the treatment of

infertility .Communication can be applied through social network or it can be done through

organizing a seminar to clarify the benefit of IVM technique.

 The influence market segment - the clinic engaged in vitro process, the government health

services and the insurance companies’ .Medi-cult requires the particular scientific reports to

describe the facilities of IVM method to the patients.

The IVM Medi- Cult is not only the company who have grown the new IVM method , Sage is

another company who has developed the same product .There are many points that Medi- Cult

company should think about when implementing an IVM marketing policy .

The recommend product pricing strategies for Medi- Cult to maximize profit in the

short and long term.:

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Medi – Cult pricing strategy is restricted to the below assumptions .

 The pricing strategy is split into two markets , the ‘US ‘ and the rest of the world.

 Real inflation –modified price was steady for a period , therefore increased the legitimacy of

the launch price (Ardani,n.d)

 In US , this product is an inealstic item and there is no price sensivity , it can be considered

that this price can not affect the volume of the market .

 In the rest of the world , particularly in Europe the market is sensitive to the price and the item

is an elastic product .The higher price will allow a lower market volume .

The price strategy of this IVM method need to be considered sensitive to the consumer and

competior (Ardani,n.d):

1. If the price is too low then it impacts the profibility .

2. If the price is too high it might inticed restricted number of infertile couple .

Recommendation for Medi-Cult to maximize profit in the short term:

 For the US: as the USA market has inelastic behavior, skimming price strategy is suitable to

use and this pricing policy will permit Medi-Cult to make the high price and a high profit on

the product sales (Winer & Dhar, 2011). The most essential part is to allow Medi- cult to have

a rapid recovery of the R&D cost, upgrade financial performances to make the trust.

 For Europe markets Value –in – Use method is suitable to use, which uses a cost advantage

calculation considering the comparison with nearest alternative technique at this case, the IVF

method (Winer & Dhar, 2011). Medi- Cult should manufacture the product with less initial
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price to take over large market share and the purpose of this policies to arrive in the big

market in the initial stage of product life cycle .

Recommendation for the “Maximum Profit” in the long term:

 For USA , since the Medi- Cult technique is already is renown in the market ,hence Medi- cult

can reduce the price to capture the larger market and create sustainable benefits .At this

moment Medi –Cult need to utilize a competitive pricing policy to control over the market

(Winer & Dhar ,2011).

 For the market of Europe , when this product is renowned then large market has been

obtained,.Medi – Cult can invent the IVM method that make even more advantages .From

there , high pricing policy need to be implemented for new product to get more profit .

Conclusion :

Implementing a pricing policy to make the price for the product to get the maximum profit is

not an easy task. The product manager required to depend on the market features ,product

advantages and competitors to fix a pricing strategy for individual market .Furthermore, in

future if IVM can gain more popularity and wide spread ,can keep the cost in same line with

the current profit margin and follow ethical sound price practices ,it also help Medi- Cult a

competitive benefit comparing other manufactures (Guo,2012)

References:
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Ardani, R. (n.d.). Pricing a Radical Innovation : MediCult Innovation With Care Case

Analysis.Academia.Retrieved from

https://www.academia.edu/18596818/Pricing_a_Radical_Innovation_MediCult_Innovation_

With_Care_Case_Analysis

BTM Micro (2015). Marketing Strategy: The Hub and Spoke Model. BTM Micro

Incorporated. Retrieved form https://blog.bmtmicro.com/hub-and-spoke-model/

Gallo, A. (2015). A Refresher on Economic Value to the Customer. Harvard Business

Review. Retrieved from https://hbr.org/2015/05/a-refresher-on-economic-value-to-the-

customer

Guo, V. (2012). 5 Must Know Pricing Strategy Ethics Issues. Price Intelligently. Retrieved

from http://www.priceintelligently.com/blog/bid/164830/5-must-know-pricing-strategy-

ethics-issues

In Vitro Maturation: IVM (n.d.) American Pregnancy Association. Retrieved from

https://americanpregnancy.org/infertility/ivm-in-vitro-maturation/

O’Brien, E. (2014). 10 things fertility clinics won’t tell you. New York Post. Retrieved from

http://nypost.com/2014/06/08/10-things-fertility-clinics-wont-tell-you/

Pongsuthirak, P., Songveeratham, S., & Vutyavanich, T. (2015). Comparison of Blastocyst

and Sage Media for In Vitro Maturation of Human Immature Oocytes. US National Library of

Medicine. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4352143/

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Winer, R., & Dhar, R. (2011). Marketing management (4th ed.). New York, NY: Prentice

Hall. Ch. 9.
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