metabical presentation - final
DESCRIPTION
Case Study SolutionTRANSCRIPT
Metabical GROUP 2
How you define Obesity?
Is obesity a disease?
Obesity AwarenessVIDEO CLIP
• Excess weight approximately 65% of the
entire adult population
• Being overweight is related to a number of
serious health complication
• Overweight individual endure a significant
social stigma
• Laziness and self-indulgence are common
stereotypes associated with overweight
• The professional life negatively affected the
hiring decision, wages, and promotions
Health and Social Issues
BMIFormula
Catagories:
Over Wight: 25 to 30
Obese: 30 to 40
Severly Obese: ≥ 40
MetabicalCASE INTRODUCTION
Market DynamicsFew weight loss drugs
Only one other drug approved by FDA (Alli)
Negative side effects of Alli these drugs including liver damage & heart diseases
Alternate herbal products / dietary supplements which are unregulated and not approved by FDA
Serious side effects of these supplements including heart disease (Ephadra banned by FDA)
Deceptive marketing
Low market credibility
Unsubstantiated weight loss claim
Federal Trade Commission penalized weight loss drug manufacturers with a fine of 25 million dollars
Cambridge SciencePharma.International health care company
Expertise in developing and manufacturing products that treat metabolic disorders gastro intestinal diseases and immune deficiencies
Over $25 billion sales in 2007
Strong financial position
High focus on R&D
Geographical Distribution of Overweight & Obese
BMI Trends in US Population
1976 to 1980 1988 to 1998 1999 to 20000.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
BMI Trends in US Population
Overweight25 ≤ BMI ≤ 30
Obese31 ≤ BMI ≤ 40
Severly ObeseBMI ≥ 40
Obesity vs Ethnicity & Education
Metabical – Obesity Killer
Weight loss drugApproved by FDA12 week weight loss program with intake of 1 pill per dayLess side effects Effective in behavior modification Ineffective with people having BMI of over 30Average weight loss of 26 pounds in 12 weeks (BMI level of 28 to 30)Average weight loss of 15 pounds in 12 weeks (BMI level of 25 to 28)
Metabical PromotionVIDEO CLIP
SWOT Analysis
Strengths• Approved by FDA• Lesser Side effects• Low dosage required• Positive results within
time
Weakness• Not effective on people
with over 30 BMI level• Gastro intestinal
discomfort on high fat and calories consumption
Opportunities• 65% adult population
obese• Social stigma for
overweight people• Obesity a major cause of
death in US
Threats• Competitors can come
up with similar or better products
• Less consumer awareness
• Low credibility of weight loss products
Marketing Strategy
TargetMarket
Consumers
Gender: Male & Female
Demography: 25 to 70 years
Focus: 25 ≤ BMI ≤ 30
Income: Medium to High Income Level
Health insurers
Doctors
Health care advisors
Positioning Statement
Communication Strategy
Promotion◦ ATL Campaigns
◦ TV advertisements◦ Radio◦ Billboards◦ Print Ads (Newspapers & Medical
Journals)◦ BTL Campaigns◦Awareness Seminars◦ Social Media◦ Personal Selling (Doctors &
Health Providers)
Availability & PricingPRICING
• 1 weeks package
(5$ per capsule)
• 4 weeks package
(4.5$ per capsule)
• 8 weeks package
(4 $ per capsule +
Support program CD)
• 12weeks package
(3.5 $ per capsule +
Support program CD)
PLACE
• Pharmacy
• Hospitals
Price SimulationParticulars Metabical Alli (Competitor)
Estimated Retail Price $3 to $5 per pill $ 120 per pack or $ 2.40 per pillDosage 1 pill daily 1 pill daily
Treatment 12 weeks (90 days) 50 days
Estimated Retail PricePrice per pill ($) 3 4 5 Revenue per month ($) 90 120 150 Revenue per month ($) 1,080 1,440 1,800
Potential Consumer Reach aSales Forecast
YearsPopulation Overweight Potential Users Respondent % of
consumers actually buying
Consumers Reach
(Millions) 25<BMI<30 (Millions) (Market Survey) (Millions)
2007 220 37% 74.80 12% 10% 0.90 2008 230 39% 89.70 12% 10% 1.08
Assumption:- Through Market survey it is confirmed that average 12% respondent make appointment with health care provider.- It is assumed that 10% of total population actually buying the product.
Estimated Number of Packs to be sold:
Years Consumers Pack (90 days program)
Sales Pack(in Millions USD)
Sales $ 120/pack(in Million USD)
2007 0.90 3 2.69 323.14
2008 1.08 3 3.23 387.50
Return on Investment
* Average Return on Investment is 167%* Payback Period 1.27 years
Return on Investment Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Sales Turnover ($ million) - 348 382 420 463 509
Initial Investment (400) - - - - -
Marketing Expense (24)
(24) (20) (18) (11) (15)
Net Cash Flow for the year (424) 324 362 402 452 494
Accumulated Cash Flow ($ million) (424)
(101) 262 664 1,116 1,610
Return on Investment -24% 62% 157% 263% 380%