MEDI-CULT: PRICING A RADICAL INNOVATION C A S E:

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Agenda Introduction Substantive Issue Exploit the greatest benefit of having IVM IVM Pricing Strategy Price discrimination by doing some sort of monopolistic power Structure conduct performance model analyzing Accept the proposed project or reject?

Introduction

Substantive Issue

Exploit the greatest benefit of having IVM

IVM Pricing Strategy

Price discrimination by doing some sort of monopolistic power

Structure conduct performance model analyzing

Accept the proposed project or reject?

Introduction IVM ïƒ the biggest revolution ever to hit artificial reproductive therapy. IVM ïƒ reduce the time needed to mature egg from 30 days to just 2 days. IVM ïƒ one step forward than IVF method by leaving first step in IVF method which is hormone treatment which has side effects the physical and psychological of woman.

IVM ïƒ the biggest revolution ever to hit artificial reproductive therapy.

IVM ïƒ reduce the time needed to mature egg from 30 days to just 2 days.

IVM ïƒ one step forward than IVF method by leaving first step in IVF method which is hormone treatment which has side effects the physical and psychological of woman.

Substantive Issue High Price Consequences Limited number of the infertile couples who seek treatment each year Big margin Create the industry more attractive for potential competitors and possibility by delivery a lower price Create image that IVM better/quality than IVF method Low Price Consequences Small margin Credibility of IVM questioned Motivate faster adoption of the IVM method by clinics Pricing Strategy to IVM

High Price Consequences

Limited number of the infertile couples who seek treatment each year

Big margin

Create the industry more attractive for potential competitors and possibility by delivery a lower price

Create image that IVM better/quality than IVF method

Low Price Consequences

Small margin

Credibility of IVM questioned

Motivate faster adoption of the IVM method by clinics

Pricing Strategy to IVM

Exploit the greatest benefit of having IVM Public Exploit IVM ïƒ hormone free treatment ïƒ avoid the physical and psychological side effects of woman IVM ïƒ Help couples to achieve their ultimate dream—have a child Business Exploit High possibility to set up price that give MEDI-CULT big profit High possibility to doing monopolistic power in short term

Public Exploit

IVM ïƒ hormone free treatment ïƒ avoid the physical and psychological side effects of woman

IVM ïƒ Help couples to achieve their ultimate dream—have a child

Business Exploit

High possibility to set up price that give MEDI-CULT big profit

High possibility to doing monopolistic power in short term

IVM Pricing Strategy Pricing strategy matrix Economy Penetration Skimming Premium Quality High Low Price Low High IVM

IVM Pricing Strategy (Cont’d) PREMIUM PRICING Set up high price (premium) because IVM is great product, an innovation product that make couples’ dream come true—have a child Set up a high price (premium) to get big profit in several time before other biotech companies develop same product I think there is no price elasticity or price sensitively (cause there are no competitors yet develop same product) because it is about having child GEOGRAPHICAL PRICINNG Set up different price in different countries ïƒ based on exhibit 4 ïƒ UK and US is highly demand

PREMIUM PRICING

Set up high price (premium) because IVM is great product, an innovation product that make couples’ dream come true—have a child

Set up a high price (premium) to get big profit in several time before other biotech companies develop same product

I think there is no price elasticity or price sensitively (cause there are no competitors yet develop same product) because it is about having child

GEOGRAPHICAL PRICINNG

Set up different price in different countries ïƒ based on exhibit 4 ïƒ UK and US is highly demand

Price discrimination by doing some sort of monopolistic power Geographically Pricing MEDI-CULT could set up a higher price in countries that have high volume like UK and USA MEDI-CULT set up an average price in countries that have average or low volume like Denmark and France

Geographically Pricing

MEDI-CULT could set up a higher price in countries that have high volume like UK and USA

MEDI-CULT set up an average price in countries that have average or low volume like Denmark and France

Structure conduct performance model analyzing Market Structure One sellers and big buyers Product differentiation Quite Barriers to entry Outsource by strong procedure (select certain clinics as part of its roll out plan Determines Interdependence Conduct Pricing Strategy Promotion R & D Performance highest value output Profits Monopoly power in short-term Deter- mines Interdependence Deter- mines Interdependence MEDI-CULT IVM is a technology breakthrough IVM Changes in consumer preferences from conventional IVF method, reproductive health product, infertility drugs

Market Structure

One sellers and big

buyers

Product differentiation

Quite Barriers to entry

Outsource by strong

procedure (select

certain clinics as part

of its roll out plan

Conduct

Pricing Strategy

Promotion

R & D

Performance

highest value

output

Profits

Monopoly power in

short-term

MEDI-CULT

IVM is a technology breakthrough

IVM Changes in consumer preferences

from conventional IVF method,

reproductive health product,

infertility drugs

Accept the proposed project or reject? Accept the proposed project IVM is the biggest revolution in reproductive against the conventional reproductive method and reproductive health product Big opportunity of MEDI-CULT to achieve big profit in short-term before the other biotech companies develop same product

Accept the proposed project

IVM is the biggest revolution in reproductive against the conventional reproductive method and reproductive health product

Big opportunity of MEDI-CULT to achieve big profit in short-term before the other biotech companies develop same product

Thank You