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-quit after about 3 minutes and never lets me upload anything. Yes, I need a new computer. The marketing plan does a great job of summarizing all of the aspects of the case and I actually really like the fact that it was a PDF and the cover look very professional… like a real marketing plan. Most of the facts presented in the case were correct, however there were some parts of the plan that I believe may have some flawed assumptions. The plan suggests that Metabical create a support program. This is already underway at Metabical and will be ready to launch when the pill is launched. This case is taking place in 2008 (we know this because of3rd paragraph of the case study and the mention of the 2008 focus group on page 5), which means that the timeline needs to be amended because 1-year from the launch has already past. Also, I am interested to know why you would start advertising the drug and creating awareness prior to the launch. The budget is not allocated for prior to launch, it is earmarked for year 1 of the product. The goal of the campaign isn’t to just create awareness, but to drive trial and sales of the product, therefore, in order to maximize the use of the funds, they should only be used when the product is available to the public. Several times throughout the document you say that the pill is a 12 week program, however that is not exactly true. During testing, subjects lost their desired weight in 12 weeks, however, when advertising the product, Metabical must be careful not to state that it is a 12 week program. Not all users will lose weight at the same rate and therefore, Metabical could face lawsuits if they position it that way. For sales analysis, Metabical should use the 12 weeks as an average time a user will purchase the product, but should not advertise it as such. In your market and consumer analysis section, you talk about the marketing budget and the sales force. Although these are important factors, I don’t think that they belong in this section. Here we should be concerned with the sales of company being $25 million, however we lack data from that case that says what percentage of those sales came from related segment. CSP has experience in products that treat metabolic disorders, gastrointestinal diseases, immune deficiencies, and other chronic and acute medical conditions. I went to the drug store tonight to look at the competitor brand. Walgreens is currently selling the OTC Alli for $69.99 for a 120-pill pack. Your plan did not mention how long that supply would last so I checked… it is a 40-day supply. Alli requires 3 pills a day, which gives Metabical yet another leg –up on the competition. At that price, Alli is running about $1.75/day and includes the online support plan for free. In regards to Price: The price of the product will be about $4 per day, which is about $336 for a 12 week program. The marketing plan mentions a bundle, however, the purchase of the product should already include the support materials. Alli and other weight loss supplements offer this as a bonus to the purchase of the product. Metabical should not charge extra for this. In regards to distribution: Metabical is only available through prescription. Your plan discusses
Health food stores. Late night TV blocks are cheap.direct-to-consumer distribution. however.the Pull Strategy. Shifting to a younger demo is a good idea. The initial purchasers of the product will not be the healthcare providers but will in fact be the patients. You also mention that relationships with health food stores and pharmacies are important. but not sure how that would go over with the schools. They probably can’t be associated with an Rx on campus.that is illegal. but I feel that the “risk” as you refer to it. Contingency plans: Infomercials are crazy cheap. These patients however have to convince their doctors to prescribe the medicine first. They will have to call or go online for a list of doctors in their area. The sales professionals cannot take orders for the product. however. I have seen this on TV recently. yes. They sell to pharmacies that stock the product based on doctor demand. This method urges consumers to “ask your doctor about product X. You would be amazed at the amount of money an overweight person will be willing to spend on a magic pill. or an informational packet etc. is more external and should actually belong in the threats category. I also want to point out an additional weakness… This product is NOT OTC. this is simply informative. health food stores cannot carry the product for sale since it has to be prescribed by a doctor. most gyms will not promote a magic pill because then their customers might cancel their memberships. Metabical is not in the business of direct sales. that would come directly from pharmacies and wholesale purchases cannot be made by doctors to give to clients. I think there is some kind of legal limitation. Gyms like overweight people that struggle with weight loss.” These ads prey on the insecurities and/or hypochondriacs of the world. but I think that we landed somewhere similar. no. so I fully support this angle. I read your explanation as to why it is a weakness. however. Someone offering $20 off the first Rx. so maybe we offer a coupon for your first Rx. you mention New Product Differentiation in both strengths and weaknesses. which means that . SWOT: The list of strengths is well-done. Samples can be made available to doctors upon request which is why the direct mail piece will go out prior to the launch as planned. again this should be free. In regards to promotion: You seem a bit wishy-washy on the target market. I recommended a younger and multi-gender group to begin with. I can’t remember ever seeing antidepressant or anxiety medications ads on campus and that would be a target market for those drugs. This section of the action plan is off to me because of the timeline. Advertising at universities is a good idea. They cannot call to order or to get a sample. You mention the bundle being discounted here. Patients will not be able to “purchase from the company directly via the traditional retail methods of online or on the phone” since this requires an Rx. I think that advertising in gyms is an excellent idea however. Pharmaceutical products have a unique marketing strategy that is a recent development.which pretty much pays the co-pay for the doctor visit in order to get the Rx. so pharmaceutical companies have to convince both the patient and the doctors. which is illegal for this product. not for the consumers of the product. Pharmacies. I don’t think that HHI is a deciding factor. I do not think that creating excitement (like with the iphone) is the way to use the money. The promotion events are for medical professionals and intended to educate them on the product.
Sales analysis: I love to look at numbers so this is what I have to say about the budget and projected sales. however. Lastly the threats…You list the insurance providers NOT covering costs. You mention the size of the overweight category as an opportunity. Assuming that the year 1 marketing budget is 20% of projected sales (which is high). The Downstream capture of Market Share is brilliant. Saying that a pill will make you more attractive is not true and could cause issues. I think the case was trying to make us pick one for the marketing plan. we can assume that Metabical expects to generate $115. they have about 15 years total to recoup the initial $400 million investment. metabical should hope to recoup about $80 million per year plus the cost of the marketing budget. Marketing Objectives: Some of the Marketing objectives seem like strategies to me. and likely pay a co-pay for the visit.7 million in year one.seems like a strength. I think that forming a partnership with the insurance companies is a key opportunity for the brand. The threat of competition exists in every market. this product is difficult for market-entry which is a strength (I think?.6% Return on investment. One last opportunity would be a patent. however it starts prior to clinical trials. Year one should generate at least $103 million dollars to break even. but no doctor would ever prescribe me the meds because I’m not technically overweight). Some additional threats that came to mind were the threat of lawsuits due to side effects and consumer attacks. Assuming that Metabical started testing 5 years ago (we know it took a total of 10 years start to finish). This is a weakness that competitors can capitalize on.7 million (based on 20% ad budget) is reached then Metabical will have achieved and 11. A typical drug patent last 20 years. I propose the following objectives: 1) Re-coup initial investment of $400 million within 5 years ($80 million per year) 2) Hit sales goals of $115 million and 345. which is absolutely true. I picked this position because it is not a scare tactic and it does not make false claims. it seems like just a fact.consumers have to visit a doctor. however think that they should try to recoup those funds within the first 5 years. but seems external).400 customers in year 1(based on average cost to consumer of $336 ($4/day for 12 weeks) . I don’t think that the budget is an opportunity. You don’t have to do it alone” positioning) The company cannot take all three positions that were proposed by the ad agency. however that is not really a threat. but this category will continue to grow and has probably grown substantially since the 2000 data (8 years prior to case study). If a person is fat and ugly and takes this pill. Another opportunity would be to create an OTC version that is slightly diluted to reach the “just barely” overweight category (I’m technically in that category based on BMI. they will just be skinny and ugly. This sales figure equates to about 344. Your plan suggests that Metabical can somehow ensure that there are no other market entrants. in order to get an Rx. Granted. Metabical may have a future opportunity to alter the drug to work for the obese segment as well. I assume that they will patent their product formula. but it should be listed here. I would like to expand on that by saying that in addition to the downstream capture. 4) Promote support program as bonus feature of the helping agent . because other drugs could come out that challenge theirs but that is not exactly like theirs.000 3) Position product as a helping agent (utilize the “Losing weight is tough. When looking at the initial investment of $400 million for the product. but no one can ensure competition will not appear. If the sales goal of $115. I.
Print. therefore PR should focus its efforts on getting the information to the healthcare providers and insurance companies.between the ages of 30-55. Radio. they just want to retire and die happy vanity drugs are more effective with younger demos) 6) Target/educate healthcare providers Marketing Strategies: 1) Use pull marketing to reach consumers via internet.3million earmarked for these samples and promotional materials) . 6) In order to target/educate the healthcare professionals.continue the rountable discussions. This new drug is only consumer news-worthy if something is wrong with it. (old people don’t’ care as much about their weight. 4) Use Social media to push-out the information to the younger demographic and to spread the word virally 5) Use PR to push out information to national trade publications.5) Target overweight users-both male and female. TV. etc. Increase sales force visits to ensure that doctors are educated and willing to provide samples to patients(there is already $1. research symposiums. 3) Offer the support program Free for 12 months from the date of the first Rx. Add the direct mail piece that allows the doctor to request samples of the products. ask your doctor for the real thing. Hit them from every traditional media and encourage them to ask their doctor for help 2) Use the Losing Weight is tough” position they can also use print to attack Alli by saying that when your done trying and failing with OTC. This feature will work well with the “metabical is here to help” positioning. and lunch and learn seminars.
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