Metabical – Pricing, Packaging and Demand Forecasting for a New-Weight Loss Drug

CASE STUDY- 3

METABICAL – PRICING, PACKAGING AND DEMAND FORECASTING FOR A NEW-WEIGHT LOSS DRUG.

QUESTION 1:

Discuss Metabical’s points of differentiation compared to current weight- loss options?

METABICAL:

The Cambridge Sciences Pharmaceutical (CSP) believes that Metabical is by far superior to  any other weight loss solution currently available in the market. The product combines an appetite-suppressant compound with a fat-blocking and calorie -absorption agent and manages to produce dramatic weight loss results. Metabical has been proven to be safe and effective in stimulating weight loss for moderately over-weight individuals.These pills have to be taken once a day, unlike its competitors product which has to be taken thrice a day.  It has been inferred that the pills have to be taken for a period of 12 weeks in order to lose weight on a average of 10 to 30 pounds. They designed for overweight individuals with BMI of 25 to 30 (obese) and not above.

FEATURES AND BENEFITS:

➢        Metabical would be the only product to receive FDA approval for moderate weight loss category. This FDA approval creates a competitive advantage for the firm by offering quality product. The consumers are assured that the product meet the requirements of the consumers with causing any harmful effect.

➢        Metabical consists of a dual-layer, first layer consists of an appetite-suppressant while second layer consists of a fat blocker and calorie absorption. These created a superior value than the other CSP's drug products.

➢        Metabical caused less negative effects as compared to other drugs which caused side effects like hypertension , heart palpitations etc.

➢        It creates a behaviour modification and healthier eating habits in the consumers.

➢        Metabical would be priced at $3 to $5 per day, with average course lasting to 12 weeks.

➢        The product comes with a support plan which helps the individual achieve better results than they would from the pill alone.

COMPETITORS AND POINT OF DIFFERENTIATION:

Current weight-loss drugs can be classified as Prescriptive drugs or Over-the-counter (OTC). The OTC drugs (Herbal remedy)  were less famous among the consumers due to its lack of regulations as it was not FDA approved, thus causing concerns regarding its safety. It was found that the herbal and dietary supplements did not require any stringent FDA testings and hence they ignored to view the health complications caused by them.

The major competitor of Metabical in the market was  Alli. Alli was the only drug approved by FDA for over-weight individuals. But this product had a lot of side -effects : blocking the body's absorption of fat, leading to weight-loss. The dietary supplements ephedra was linked to various cases of sudden cardiac deaths and other health risk. Other weight loss options included :