Mba 671 Csp Metabical Solution

Metabical Case Study Assignment

Richard D. Cooks

MBA 671 Healthcare Marketing

Dr. Ayers

September 27, 2018

Metabical Case Study Assignment

CSP is a healthcare organization that creates, manufactures, and markets drugs that treat both acute and chronic medical conditions.  The company’s revenue in 2007 exceeded 25 billion and the company is continuously looking for ways to grow.  After a thorough environmental scan, CSP identified the weight-loss industry as a niche to conduct disruptive innovation.  As a result, they developed the first FDA approved prescription weight loss drug, Metabical.  This case study solution will focus on the following to identify optimal segmentation, targeting, positioning, and purchasing:  The strategic goals and concerns CSP has for Metabical; the purchasing decision process and potential Metabical users; and the identity and profile of potential market segments for Metabical.

CSP’s Strategic Goals and Concerns pertaining to Metabical

Strategic goals are broad statements and pertain to an organization’s future.  These goals and concerns serve as the constraint for CSP’s strategic choices.  CSP’s strategic goals and concerns for Metabical can be derived using data from its internal and external environmental scan by performing an analysis of Metabical’s strengths, weaknesses, opportunities, and threats (SWOT).  Strengths are: First FDA approved prescription drug specifically for overweight people (BMI 25 to 30); less harmful than competitive options; ten years of research, development, and FDA trials; and alternative use as a behavior modification drug that promotes a healthy lifestyle change.  Weaknesses include gastrointestinal side effects, and only effective for individuals with BMI < 30.  Opportunities include:  Campaign for health insurance companies to provide prescription coverage since approved by FDA; 65% of adult population is overweight or obese; There is no current prescription medication for overweight individuals with BMI 25 to 30; and a comprehensive support program.  Threats include: Strict FDA regulations due to side effects of previous agents on the market; and deceptive marketing practices by competitors in the weight loss drug industry.  

In a time where the drug industry is facing accusations of deceptive marketing practices, the following strategic goals for Metabical can be derived from the concerns identified in CSP’s environmental scan and subsequent SWOT analysis:  1. Successfully launch and ensure long term, steady demand to recover sunk cost of 10 years and $400 million in research, development, and FDA trials, especially while CSP has 10 years of exclusivity before generics hit the market; 2. Position it as the first FDA approved and far superior prescription weight loss drug on the market for overweight individuals with BMI 25 to 30; 3. Recognize Metabical as part of a comprehensive lifestyle program with a support system that promotes healthy lifestyle changes and sustained weight loss; and 4. Simultaneously position Metabical as a behavior modification drug that ensures long term success by avoiding it being pigeonholed as a fad-diet cure; and, 5. Campaign and hopefully obtain prescription drug coverage through insurance companies.