3144 words 13 pages
Metabical: Pricing, Packaging, and Demand
Forecasting for a New Weight-Loss Drug

1- Discuss Metabical’s points of differentiation compared to current weight-loss options? After 10 years of testing and spending a significant amount in research and development. Cambridge Sciences Pharmaceuticals (CSP) discovered one of the best weight- loss drug that called Metabical. Metabical has unique characteristics that make it different in market.
People are always concerned about the side effect of any drug and sometime they preclude taking drug just because they are doubtful. Metabicals is differentiated by the Food and Drug Administration (FDA) approval. It is the first and only prescription drug that received FDA approval to meet the
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This method is the most aggressive and optimistic with a cumulative sales units of 16,140,480 for five year period. From a financial point of view, this method has the highest chance to meet the desired ROI. On the other hand, this method has the highest risk and the same too broad audience. In addition to that, this method neglect the fact that not all health care provider have the weight loss drug included in their plan, consequently customer may change mind if they know that they will have to pay for the drug.

The third approach is based on the target market of educated females of 35 to 65 age and with BMI between 25 and 30. In terms of cumulative unit sales, this method is between the two first one with 14,792,000 units for five year period. This method will also have high chance to meet the ROI requirement. Furthermore, the target population can afford paying high price for this product. However, the risk is relatively high in this method and the company is taking extra risk of missing broader potential market as they focus only on educated female between 35 to 65 of age.

3- Metabical could be packaged in counts of 7, 14, 21, 28, (4-week supply), 56 (8- week supply), or 84 (12-week supply).
What considerations should be taken into account when making decisions about the package count?

The considerations that should be taken into account are both what will be most profitable for the company and also most


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