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METABICAL

Pricing, Packaging and Demand
Forecasting

Group -2:
Prajakta Talathi
Aryan Bhojnagarwala
Chinmal Athavle
Gautam Sachdev
Manoj Megotia

Demand Forecast
• Process: Time series regression analysis used to forecast
total population and target population of overweight people

Total Population in millions % of overweight population
245 35.8
240 35.6
235 35.4
35.2
230 35
225 34.8
220 34.6

00 1.50 0.00 0.50 1. Demand Forecast – Approach 1 Approach 1 .00 2009 2010 2011 2012 2013 • Focused on target consumers who were comfortable with weight loss drugs .50 2.Demand Forecast 2.

00 2.00 2009 2010 2011 2012 2013 • Focused on individuals who were immediately willing to go to the health care providers for a prescription .Demand Forecast in Millions 6.00 0. Demand Forecast – Approach 2 Approach 2 .00 4.

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

59 1 2 3 .36 more advanced state 16. Preferred Approach Comparison of total demand for 5 years for the 3 approaches (Millions) • Maximum demand in Approach-2 • Consumers are in 17.856 of readiness 7.

Packaging Attributes of Packaging .

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 .

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 .

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 .

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

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 . Pricing Strategy • Keeping Alli as a benchmark.

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

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

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

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

. 200 $83. Finalised Price .$125 • Option 1 shows lower 450 400 profit margin while 350 Option 3 shows higher 300 profit margin which is 250 $50 not .33 • Therefore we will go for 150 $100 100 Option 2 having a retail 50 price $125 and 0 Manufacturing Price $83.33.

Impact of Pricing on Profitability .

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

THANK YOU .