Marketing Strategy, Pricing, Packaging and Demand Forecasting Case Study

1. METABICAL
Pricing, Packaging and Demand
Forecasting
Group -2:
Prajakta Talathi
Aryan Bhojnagarwala
Chinmal Athavle
Gautam Sachdev
Manoj Megotia

2. Demand Forecast
• Process: Time series regression analysis used to forecast total
population and target population of overweight people
220
225
230
235
240
245
Total Population in millions
34.6
34.8
35
35.2
35.4
35.6
35.8
% of overweight population

3. Demand Forecast – Approach 1
0.00
0.50
1.00
1.50
2.00
2.50
2009 2010 2011 2012 2013
Approach 1 - Demand Forecast
• Focused on target consumers who were comfortable with
weight loss drugs

4. Demand Forecast – Approach 2
0.00
2.00
4.00
6.00
2009 2010 2011 2012 2013
Approach 2 - Demand Forecast in
Millions
• Focused on individuals who were immediately willing to go
to the health care providers for a prescription

5. Demand Forecast – Approach 3
0
2
4
6
2009 2010 2011 2012 2013
Approach 3 - Demand Forecast in
Millions
• Focused on the ideal target consumer: educated females,
35-65 of age with BMIs between 25 and 30

6. Preferred Approach
• Maximum demand in
Approach-2
• Consumers are in
more advanced state
of readiness
1
2
3
7.59
17.36
16.856
Comparison of total
demand for 5 years for the
3 approaches (Millions)

7. Packaging
Attributes of
Packaging

8. Why Packaging
• A new package can make an important difference in a new
marketing strategy
• Packaging can tie the product to the rest of the marketing
strategy
• Packaging sends a message

9. Factors to be considered while Packaging
• Consumer Usage and Payment capacity
• Unit Price of the pill
• Number of pills in a strip
• Effective Dose
• Easy Tracking

10. Recommended Package Size
• 12 weeks dose
• Pinch in the Pocket
• Smaller packages
• Noticeable results in 4 weeks
• Consumer happy
• Willing to complete the dose
• Busy-bee: whole 12 weeks dose

11. Typical 4 weeks strip
• For effective and easy to understand
– Blister style packaging
– Days-of-the-week packaging

12. Pricing Strategy
• Keeping Alli as a benchmark, Metabical should be
sold at a premium price
• Pricing is done in such a manner so that the
company is not only able to achieve the desired
ROI but also is able to capture a larger market
base
• Concentrated on the value to consumers who
successfully complete the program

13. The Price Strategy
• $ 75 for 4 weeks
• $ 125 for 4 weeks
• $ 150 for 4 weeks

14. Approach 1 - $ 75 for 4 weeks
• Advantage
1. Low price
2. High demand
• Disadvantage
1. Priced near Alli and hence unable to differentiate itself to
being a FDA approved prescription drug
2. Financially lower returns forecast

15. Approach 2- $ 125 for 4 weeks
• Advantage
1. Priced above Alli
2. Premium factoring Prescription drug with FDA
approval
3. Higher financial forecast
• Disadvantage
1. Chance of missing out on getting maximum price

16. Approach 3 - $ 150 for 4 weeks
• Advantage
1. Maximum profit
• Disadvantage
1. Lower demand due to high price

17. Finalised Price - $125
• Option 1 shows lower
profit margin while
Option 3 shows higher
profit margin which is
not .
• Therefore we will go for
Option 2 having a retail
price $125 and
Manufacturing Price
$83.33.
0
50
100
150
200
250
300
350
400
450
$50
$83.33
$100

18. Impact of Pricing on Profitability

19. ROI
• Formula:
Earnings = Total Revenue – Fixed Cost – Variable Cost
Initial Investment = Research and Development cost &
Preliminary Marketing Budget.

20. THANK YOU