1. Problem Statement: CSP is faced with a decision to come up with the best pricing strategy for the launch of their new weight loss pill named Metabical in order to better address the needs and wants of their targeted consumers and optimize profit.
2. Situation Analysis:
Company
• 400 million in Research and Development for the new diet pill Metabical
• Highly experienced marketing manager (20years in the pharmaceutical field)
• Metabical is FDA approved
• Metabical is the first prescription drug approved specifically for overweight individuals.
• Metabical has less side effects than other diet pills on the market
• Not compatible for individual having a BMI of 30 and over
Customers
• Metabical is designed only for moderate weight loss goals (10-30 lbs.) with BMI less than or equal to 25
• Overweight consumers are dissatisfied with current offering on the market due to strong side effects
• Consumers had bad experience with previous dietary drugs
• Weight lost drugs are not covered by insurance companies
Competitors
• Competition comes from Alli, OTC and herbal supplements, Weight Watchers, Jenny Craig, Gym Membership
• For safety concerns with OTC weight-loss drugs, many overweight individuals shifted to other options such as diet plans and healthy eating habit and exercise.
• Competitors product has more side effects than Metabical
Context
• Weight loss is a high concern for the U.S society
• 35% of overweight Americans are looking to lose weight
•
The amount of obese and overweight individuals is increasing every year in the United States. With 33.9% of American adults obese, and 34.4% overweight, but not obese, more and more people are looking for any alternative to lose weight (Anonymous 2011). If someone told you that they knew of a weight loss pill that actually works, would you consider it?
Choosing a marketing strategy involves making “decisions about price, channels of distribution, product, communications, and customer relationship management” (Winer & Dhar, 2011, p. 36). In order to develop a marketing strategy, the CEO of MM must know “who the customers are, why they buy, how they make purchasing decisions, where they purchase products, and when they buy” (Winer & Dhar, 2011, p. 126). For quarter 4 of 2012, the CEO decided to use a price optimization strategy, which focus on the target market and
When providing a service, people get paid for the service, so why are college athletes not paid for performing a service with their athletic abilities? Almost anyone who is involved with sports, whether it be watching them or playing them, has an opinion on whether or not college athletes should be paid. My opinion on this controversy is that college athletes should be paid. College sports make billions of dollars, so there is definitely room for athletes to payed in some way. There are three main reasons as to why I believe college athletes should be paid. One is the athletes do not have enough time to hold a steady job because they are constantly practicing or playing the sport they are involved in. If they can work there are rules as to what they can make. The second reason is the colleges the athletes play for and the NCAA both make money off all of the athletes’ names and the coaches of the athletes are paid very well. The last reason is the scholarships of some athletes can be taken away if they do not meet the performance standards of the college they play for.
There are only several other weight-loss options in the market competing with Metabical. The first is prescription drugs. These are prescribed for use only by obese and severely obese individuals. This meant that only individuals with BMI of over 30 who were prescribed weight-loss drugs were using appetite suppressants and fat-absorbing blockers. They had serious side effects associated as well, which meant only a doctor could approve them. But these prescription-drug options did not account for the overweight segment with
Since Metabical is a prescription drug for weight loss which can only be bought via a prescription, the overweight patients are not the only decision makers involved. The health care providers are also decision makers in this process for they are the ones who prescribe the drug.
Customers will be able to utilize the low pricing structure giving Metabical a better chance to sell its predicted volume. It is important to remember, Metabical’s marketing team cannot always predict how a specific demographic (women ages 35-65) will react to their product and still expect large revenues. Individuals who are ready to take a pill to lose weight can also be included in this demographic along with other similar markets (perhaps a percentage of overweight women of other age groups possibly buying the Metabical product)
In this report, Printup will provide all recommendations for the successfull marketing communication strategy and to ensure the long-term steady demand for Metabical. 3.1 IDENTIFICATION OF THE PROBLEM OVERVIEW OF OVERWEIGHT ISSUES IN THE UNITED STATE Excess weight is considered a public health crisis in the U.S, with approximately 65% of the entire adult population categorized as overweight, obese, or severely obese. Being overweight is related to a number of serious health complications, and according to the American Obesity Association in 2005, ³the second leading cause of preventable death in U.S. In addition to health risks, overweight individuals endure a significant social stigma as well as outright discrimination. Laziness and self indulgence are common stereotypes associated with this group. Many overweight people feel like social outcasts. The professional life of an overweight individual could also be negatively affected, as excess weight has been found to adversely influence, hiring decisions, wages, and promotions. Researchers and health care professionals measure excess weight using the Body Mass Index (BMI) scale. The BMI scale, which calculates the relationship between weight and height associated with body fat and health risk, is appropriate for both men and women. It has three BMI categories of excess weight for adults:overweight (25 to 30); obese (30 to 40); and severely, or morbidly obese (over 40). According to CDC
The following paper explores the subject of the Garcinia Cambogia Extract Diet Pills, and how this supplement’s main ingredient, hydroxycitric acid (HCA), contrary to manufacturer advertising, does not lead to weight loss. In fact, both Garcinia Cambogia and HCA can prove to be harmful to health if taken in large doses or for a long period of time. Because it is a supplement and not considered a drug, the Food and Drug Administration does not monitor it. Garcinia Cambogia was also an active ingredient in Hydroxycut products, but due to the high numbers of people developing liver failure while taking the Hydroxycut pills or formula, the ingredient was removed and the products were re-marketed and resold.
Metabical is the first prescription drug approved specifically for overweight individuals (BMI between 25 and 30), those individuals who have weight-loss goals of approximately 10 to 30 pounds; other prescription weight-loss drugs were approved for use in both obese (BMI >30) and severely obese (BMI>40) individuals. Metabical is a dual-layer formulation: the first layer contained an appetite suppressant and
Barbara Printup, Senior Director of Marketing for CSP, is in charge of managing the upcoming launch for Metabical. After an analysis of a 2007 survey of overweight individuals, it concluded that 70 percent of respondents are not satisfied with their current weight, 35 percent are actively trying to lose weight, and 15 percent are comfortable using prescription drugs to help reach their weight-loss goals. Out of these respondents, 12 percent said they would immediately make an appointment with their health care provider and request a prescription. The ideal Metabical consumer was determined by Printup and found to be overweight college-educated females ages 35 to 65.
People around the globe struggle with excess weight, but Americans exceed the rates of obesity in other first world countries by thirteen percent (Overweight). According to Overweight and Obesity Statistics, 68.8 percent of the population is overweight or obese in America. Although the number of overweight and obese people is higher than ever before, many are not willing to work to lose weight. Americans want to sit back, relax, and lose weight. Fad diets have become very popular for this reason. Fad diets allow people to simply sit back and take a pill to provide quick weight loss but this weight loss only lasts temporarily. (Fad Diets). On the other hand, few people choose healthy dieting methods, which take longer to see results and
When you are searching for a snappier approach to shed undesirable pounds it is crucial to separate between safe eating regimen pills and possibly unsafe eating regimen pills - this demonstrates very imperative and fundamental. What's more, this is particularly so on account of our present eating routine prevailing fashion filled society and over-the-counter, bunched commercial center. Presently, what makes this separating considerably to a greater extent an errand is the amount you need to deal with, specifically this said group. With such a large number of eating routine pill choices accessible, it can be somewhat dreary to consider and deal with all of them. All things considered, you should do some exploration, some observation before acquiring and taking any sort of weight reduction item.
In countries, such as the United States, weight control is a common, yet, dire issue. Especially, in a society where thin is in, but for many, so are fatty foods and infrequent exercise, there is a huge and growing demand for quick, easy schemes to lose weight. However, the true
But there are people who find it hard to go to the gym or simply cannot resist eating more than they need to. To lose weight, they often look for weight loss pills which they
Society today has become a place where appearance is regarded as very important. It is believed that beautiful people are the happiest and most successful and when it comes to weight and physique size matters. Another social norm in our society is smoking. Whether it stems from the ideal that smoking is cool or from mere addiction, smoking has become so common that it is no longer frowned upon generally speaking however being overweight is. Women today especially want to fit into society’s perception of what the “ideal woman” looks like and will do almost anything it seems to gain this satisfaction. From gym memberships, extreme diets and exercise programs to the latest diet pill or supplement craze. Women will endure almost anything to be the ideal weight. Among these conceptions is the idea that smoking can prevent a woman from gaining weight or can assist in keeping the weight off. One familiar mindset is “what better way to stay thin than to smoke?” and it is a widespread idea. Though smoking can in fact be tied to benefits such as weight control, stress reduction and improved mood, it is still the number one cause of preventable disease and death.