Packaging Analysis • 3 segments • Target – Minimum 5% ROI in 5 years Assumptions • Ideal segment tests • 60%/20% tests Overweight Population Scenario
Overweight Percentage Population (in mil)
31.6 163 33 185 34 209 35.17 230
Current Overweight Population 80.891
Potential Consumers in Segment 1(5 years) Actively trying to lose weight 28.31 Comfortable using drugs 4.25 Total (in Market Share (year) 1 2 3 4 5 mil) First time users 0.42 0.64 0.85 1.06 1.27 4.25 Second time users 0.25 0.38 0.51 0.64 0.76 2.55 Third Time users 0.05 0.08 0.10 0.13 0.15 0.51
Total (in mil) 0.73 1.10 1.46 1.83 2.19 7.30
Potential Consumers in Segment 2(5 years) Ready for prescription 9.71
Market Share 1 2 3 4 5 Total(in mil)
First time users 0.97 1.46 1.94 2.43 2.91 9.71
Second time users 0.58 0.87 1.16 1.46 1.75 5.82
Third Time users 0.12 0.17 0.23 0.29 0.35 1.16
Total(in mil) 1.67 2.50 3.34 4.17 5.01 16.70
Potential Consumers in Segment 3(5 years) Ideal segment 4.3
Market Share 1 2 3 4 5 Total( in mil)
First time users 1.29 1.51 1.72 1.94 2.15 8.60
Second time users 0.77 0.90 1.03 1.16 1.29 5.16
Third time users 0.15 0.18 0.21 0.23 0.26 1.03
Total (in mil) 2.22 2.59 2.96 3.33 3.70 14.79
Case 1 pricing for 5 years 4 week pack Manufacturer Price Total Sales $50 $365.22 mil Cost $672.80 mil Profit -$307.58 mil ROI -46% Case 1 Sales $83.33 $608.68 mil Cost $909.47 mil Profit -$300.79 mil ROI -33% Case 2 pricing for 5 years
4 week pack manufacturer price
Sales $50 $834.80 Cost $672.80 Profit $161.99 ROI 24% Case 2 Sales $83.33 $1391.27 Cost $909.47 Profit $481.80 ROI 53% Case 3 pricing for 5 years 4 week pack manufacturers cost Sales $50 $739.60 Cost $672.80 Profit $66.80 ROI 9% Sales $83.33 $1232.62 Cost $909.47 Case 3 Profit $323.15 ROI 36% Sales $100 $1479.20 Cost $861.49 Profit $617.71 ROI 72% Conclusions • Price at $150 • Target the ideal segment • Maximum ROI • High penetration • Differentiated positioning