C 7 MM2 Metabical Case Study Excel

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Metabical : Pricing,

Packaging and
Demand Forecasting
Group 1-
C001 Vyom Nagaich: 80512100948
C021 Vishal Padmanabhan: 80512100578
C031 Mohd Fahad Siddiqui: 80512100085
C041 Adwesh Tripathy: 80512100170
C051 Vaishnavi Rathi: 80512100011
How does Metabical compare to current weight-loss
options?

First Prescription drug for


overweight individuals Less Severe Side effects
Therapeutic Strength of ingredients
Individuals between BMI 25 and
calosera and editonan
30
Less severe gastrointestinal
Who had target weight loss goals
Discomfort
between 10 to 30 pounds
helped with behavior modification
and healthier eating habits
Dual Layer Mechanism
First layer- Appetite Suppressant
Second Layer –Fat blocker and
calorie absorption agent
Superior to current obesity drugs
orlistat and Sibutramine
How does Metabical compare to current weight-loss
options?

Alli
Non- prescription OTC Drugs
FDA Approved weight loss drug Herbal Remedy
for overweight individuals No FDA Approval
Liver Damage, Kidney Stone , Lack of Regulation
severe stomach pain Premium Pricing

Jenny Craig Gym Membership


Diet and weight-control program Access to workout facilities
that included prepackaged, Initiation fee
delivered meals and support $245 for three months of
$1000-$1600 for three months program
What considerations should be taken into account when making decisions about the package
count? What package size would you recommend?

Consumer’s purchase power “Blister-packaging”

People get busy and may not


Effective – experience positive
have time to buy it on recurring
long lasting results
basis

Regular 4 week pack Combo 12 –week pack


What are the pros and cons of the forecasting methods presented by Printup? If you had to
estimate demand for this product, how would you go about it? What would your demand (unit)
forecast look like for the first five years?
Option 1
First method is a
more pragmatic
approach as it filters
the potential market
into people who are
actually willing to
buy these drugs
What are the pros and cons of the forecasting methods presented by Printup? If you had to
estimate demand for this product, how would you go about it? What would your demand (unit)
forecast look like for the first five years?
Option 2

Second method assumes that all those who are ready to go to a prescription store are the potential buyers. The market
penetration rule appilied is the same for this method. This can have a potential problem because the forecasts are
dependent on one survey results. The sample taken for this survey can be biased and hence calculations based on this
can be wrong.
What are the pros and cons of the forecasting methods presented by Printup? If you had to
estimate demand for this product, how would you go about it? What would your demand (unit)
forecast look like for the first five years?
Option 3

The third method assumes that the potential market is the ideal user of Women aged 30-65. The problem lies in the fact
that 60/20 repurchase model assumed for this market is the same as the other 2 options. This market consumers can show
different behavioral characteristics in repurchasing which will result in wrong calculations.
What pricing strategy approaches would you suggest Printup explore? What are the
advantages and disadvantages of each strategy? What price would you recommend?

5 % Roi
Price
Packaging Demand within 5
Modelling
years
Option 1- Competitive Pricing strategy
Option 2- Cost Based Pricing Strategy
Option 3- Price Skimming Strategy

This is the recommended pricing strategy :


• Helps the company to maximise its revenue because of the demand that would be generated in the educated women
category. They would be willing to pay the high price of $150
• Once the market gets saturated after 2 years, the company can reduce the prices to expand into other segments
• This strategy also ensures highest ROI which effectively generates maximum profitability

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