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8/12/2019 Metabical Case solution Havard Business School review
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Introduction:
Cambridge Science Pharmaceuticals(CSP),an international health care company with
a focus on developing ,manufacturing and marketing products that treat metabolic
disorders, gastrointestinal diseases, immune deficiencies, as well as other chronic
and acute medical conditions, is about to launch a prescription drug, Metabical
which is proved to be safe and effective in stimulating weight loss for moderately
overweight individuals.
Target Market :
FDA approved CSPs Metabical for the overweight individuals (with a BMI of 25 to
30).So that should be the primary target segment.
CSP had conducted an extensive market survey of overweight individuals in 2007. Inthe survey men and women responded differently to a number of questions. Women
said more often than men that they wanted to change their behaviour to live a
healthy lifestyle and that they were dissatisfied with current weight-loss options on
the market. According to that there were 75% women, compared to 65% of men,
who were not satisfied with their current weight, 20% more women than men
visited a healthcare provider for a yearly physical exam, 15% more women than men
wanted to change their behaviour to live a healthy lifestyle, 30% more women than
men tried and failed to lose weight in the past five years, 30% more women than
men were dissatisfied with current weight-loss options on the market. According tothe above facts its evident that women are most likely to buy Metabical.
Although the pricing had not been finalized, the estimated price would be $3-$5 per
day, with the average course of the treatment lasting 12 weeks. Which made the
cost for 12 weeks to be $252-$420.But many health insurance plans excluded anti-
obesity drugs from coverage. So that meant the drugs had to be purchased in cash.
So the target market should have a high household income.
According to the psychographic segmentation study of overweight individuals, the
female group demonstrated the most distinct segmentation. Out of the 5 segments
identified, 2 seemed to be most relevant to Metabical. I want to be healthier and
I want to wear my skinny jeans.The I want to be healthier segment was more
relevant to Metabical as these women were ready to make a change along with the
knowledge about the importance of nutrition and exercise. They would want to work
for the change while using the support program. Along with that they were college
educated with income of $80000+. The I want to wear my skinny jeans segment
was also college educated with household income of $50,000 - $80,000. So, women
aged 25 to 65 represented all of the above.
8/12/2019 Metabical Case solution Havard Business School review
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Advertising:
Direct-to-consumer advertising was somewhat new but effective phenomenon in the
drug industry. A sum of $13 million had been allocated for the push and pull
advertising. So, in the first year CSP should spend more on the advertising to Direct-
to-consumer to create brand awareness and the knowledge about the product.This
DTC includes television, online, radio advertisements, medical publications, press
conferences .
Metabicals strategy should target the professional medical community including
healthcare providers, doctors with direct marketing. They should plan several
campaigns, medical publications, social media advertisements to make people aware
about the drug.
As celebrity spokespeople were quite common in the weight control industry andwere becoming very influential with their mannerism, style, cosmetics thus a well-
known celebrity can be very useful in order to attract more customers.
Positioning:Metabical is unique from other drugs as it is FDA approved, very useful and effective
for moderately overweight people. Unlike other drugs it has minor and avoidable
side effects. Its unique as it can be used only when its prescribed by the doctor and
that makes this drug trusty as people trust their doctors. All these factors give
Metabical big benefit over other drugs. Men and Women who didnt have success
and specially those who were not happy with the products available in the market
should be prescribed Metabical saying that losing weight is tough and you will look
at your best with Metabical. The appropriate tag line could be lose those extra 20
pounds. Couple of years down the line Metabical will be considered the most relied
, efficacious and prescribed weight loss drug for all.
Role of the support program:CSP had planned for a support program to complement the Metabical pill. The aim
would be to support that the customers need after the initial weight loss. As the cost
of the support program in year 1 was $2 million, CSP should make a website
containing the weight loss calculator, tracker, materials, blog, and forum where
customers could discuss among themselves and consult with doctors. It might
include social media functionality as well. They should also distribute CDs having all
the support materials and guidelines.
8/12/2019 Metabical Case solution Havard Business School review
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Optimal Rollout Schedule:
One year in advance: Advertising.
6 months in advance: Promotion and campaigning.
3 months in advance: Marketing to distribution channels, doctors and healthcare
providers .
1month in advance: Social Media marketing
At the time of launch: Viral campaigning, press release.
Conclusion:
Most of options available for weight loss were either not helpful or had side-effects.
Metabical, having FDA approval, and the fact that it can only be used only when its
prescribed by a doctor, will always be advantageous than its competitors.Alongwith these factors Metabicals marketing strategy focused mainly on brand
awareness and its benefitsto the targeted group . Based on the market survey and
market research its evident that Metabical will be a huge success.