METABICAL

Pricing, Packaging and Demand

Forecasting

Group -2:
Prajakta Talathi
Aryan Bhojnagarwala
Chinmal Athavle
Gautam Sachdev
Manoj Megotia
 Demand Forecast
Process: Time series regression analysis used to forecast
total population and target population of overweight people

Total Population in millions % of overweight population

245 35.8
240 35.6
235 35.4
35.2
230 35
225 34.8
220 34.6
 Demand Forecast
Approach 1
Approach 1 - Demand Forecast
2.50
2.00
1.50
1.00
0.50
0.00
2009 2010
2011 2012 2013

Focused on target consumers who were comfortable with

weight loss drugs
 Demand Forecast
Approach 2
Approach 2 - Demand Forecast in
Millions
6.00

4.00

2.00

0.00
2009 2010
2011 2012
2013

Focused on individuals who were immediately willing to go

to the health care providers for a prescription
 Demand Forecast
Approach 3
Approach 3 - Demand Forecast in
Millions
6

0
2009 2010
2011 2012 2013

Focused on the ideal target consumer: educated females,

35-65 of age with BMIs between 25 and 30
 Preferred Approach
Comparison of total
demand for 5 years for the
3 approaches (Millions)

Maximum demand in
Approach-2

Consumers are in 17.36

more advanced state 16.856
of readiness 7.59

1
2
3
 Packaging

Attributes of
Packaging
 Why Packaging

A new package can make an important difference in a new

marketing strategy

Packaging can tie the product to the rest of the marketing

strategy

Packaging sends a message

 Factors to be considered
while Packaging

Consumer Usage and Payment capacity

Unit Price of the pill

Number of pills in a strip

Effective Dose

Easy Tracking
 Recommended Package Size

12 weeks dose
Pinch in the Pocket
Smaller packages
Noticeable results in 4 weeks
Consumer happy
Willing to complete the dose
Busy-bee: whole 12 weeks dose
 Typical 4 weeks strip

For effective and easy to understand

Blister style packaging

Days-of-the-week packaging
 Pricing Strategy

Keeping Alli as a benchmark, Metabical should be

sold at a premium price

Pricing is done in such a manner so that the

company is not only able to achieve the desired
ROI but also is able to capture a larger market
base

Concentrated on the value to consumers who

successfully complete the program
 The Price Strategy

$ 75 for 4 weeks

$ 125 for 4 weeks

$ 150 for 4 weeks

 Approach 1 - $ 75 for 4
weeks
Advantage
1. Low price
2. High demand

Disadvantage
1. Priced near Alli and hence unable to differentiate itself to
being a FDA approved prescription drug
2. Financially lower returns forecast
 Approach 2- $ 125 for 4
weeks
Advantage
1. Priced above Alli
2. Premium factoring Prescription drug with FDA
approval
3. Higher financial forecast

Disadvantage
1. Chance of missing out on getting maximum price
 Approach 3 - $ 150 for 4
weeks
Advantage
1. Maximum profit

Disadvantage
1. Lower demand due to high price
 Finalised Price - $125
Option 1 shows lower 450
400
profit margin while
350
Option 3 shows higher 300
profit margin which is 250 $50
not . 200 $83.33
Therefore we will go for 150 $100
100
Option 2 having a retail 50
price $125 and 0
Manufacturing Price
$83.33.
Impact of Pricing on
Profitability
 ROI

Formula:

Earnings = Total Revenue Fixed Cost Variable Cost

Initial Investment = Research and Development cost &
Preliminary Marketing Budget.
THANK YOU