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Metabical - Cambridge Science Pharma

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Adam Wielowieyski-Ipnarski

on 27 July 2013

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Transcript of Metabical - Cambridge Science Pharma

Influencers - Insurers
~ 80% of Americans hold insurance
Top 10 Insurers capture > 50% of the market
Market Analysis & Segmentation
Metabical - Cambridge Science Pharmaceuticals
What comes to mind when
YOU
think about Obesity ?
Positioning & Communication Strategy
Conclusion & Message
Critical success factors:
FDA approval still pending
Few side effects and convenient dose

Advertising:
Direct and indirect towards consumers (pull)
Strong PR & sales team to convince skeptical but essential influencers (push)

Promote four messages:
It's a disease that can be treated
Full support with 24-month program
Only safe drug in the segment
Treat now to maximize your life

Medical Disease
American Medical Association -
Debating to classify obesity as a disease

World Health Organisation -
Obesity is... "of epidemic proportions"

Can we treat it?
Consumer Segment #1
These women want to lose weight to feel better about their selves and to live longer. They are knowledgeable about the importance of nutrition and exercise and are ready to make a change. This segment consists of ages between 35 and 65, have a “college education plus” and have a household income of + $80,000.
Consumer Segment #2
These females are focused on reclaiming their previous weight and are motivated and willing to alter their current behavior. Ages of this segment range from 25 till 40, they have a college education and a household income between $50,000 and $80,000.
78.6 million overweight people in the US
70% of overweight people in the US are NOT satisfied with their current weight
35% of overweight people are ACTIVELY trying to lose weight
15% of those "actively trying to lose weight" are comfortable using drugs to help reach their weight-loss goals
it represents a "passive" potential market size of
3 MILLION CUSTOMERS
when informed about the benefits of Metabical the market size could reach
9.5 MILLION CUSTOMERS
so which segments to target?
Influencers - Doctors
113,250 Family and General Practitioners in the US
Push - Doctors
Significantly skeptical channel.

We should promote:
Reduced visits and shortened queues at surgeries
'Not just a pill' = Metabical's 24-month support programme helps promote a change in lifestyle

PR & Promotion:
Organise conferences and symposiums for medical professionals to discuss the threat of excess weight
Direct mailing of Metabical trial results and informational pamphlets

Salesforce:
Target hospitals & medical centers. 3,200 visits / year
Recruit 'brand ambassadors' to promote Metabical
Push - Insurers
Skeptical, careful audience.

We should promote:
Long-term health care savings
Low likelihood of relapse due to behaviour modification
24-month weight-loss programme

PR & Promotion:
Symposiums and conferences
Direct mailing of positive trial results and doctor recommendations

Salesforce:
Target top-10 insurers to ensure maximum benefit
Receptive audience.

Aim to raise awareness, build interest and generate demand across both target segments.

Target with direct and indirect advertising:

Establish Metabical name and deliver our message
Safe, FDA approved - counter Alli
Initiate discussion of the dangers of being overweight, and promote a healthy life using indirect advertising across both print and television.
Television, Print and Online

Consumer Advertising
Television:
Advertising segments - promote safety of drug and healthy aspect of losing weight
A disease that can be treated
Promotional talk show with doctor 'brand ambassadors'
Indirect promotion of hazards of obesity

Newspaper & Popular Journals:
Direct promotional articles & advertisements
Indirect articles to highlight dangers of leaving it too late and benefits of losing weight

Online / Viral Marketing:
Utilise social media to generate hype
'The Metabical Challenge' - a real-life version of 'The Biggest Loser'
PR & Salesforce
PR & Promotion:
Direct mailing of positive test results
Direct mailing of information on obesity and weight-related conditions
Symposiums and conferences
Importance of 24-month support programme

Salesforce:
32 salespeople, able to target 3,200 medical centres per year.
Re-enforce brand, inform doctors & insurers on Metabical support programme & success rate.
Control evaluation and push towards trial

Is it a concern?
'Nothing seems to take off those extra pounds ... I would give anything to lose [them]”

— Tamara Jinkens, 42: focus group participant
Synopsis
It is now February 2008...
Barbara Printup, Director of Marketing for CSP has to develop a viable positioning strategy and associated marketing communications plan for Metabical scheduled to launch in January 2009.

Metabical is the first approved drug to target the overweight (BMI 25-30) market
We will position Metabical in various ways depending on the segment to ensure:

• Awareness and Interest - we need to build acceptance.
• We communicate the value proposition in the most favorable way
• We optimise return on investment

“I want to be healthier”
“I want to wear my skinny jeans”
Pull - Consumers
Financial Outlook
Average Cost per Pill: $4
Per day dosage: 1 pill
Average course of treatment: 84 days
Total cost per individual session: $336
Individual Income: $25,000 / year
Metabical: Only 1% of annual income….
Competitors
Direct competitors
- Alli
- Herbal Supplements
Indirect competitors
- Xenical
Metabical has far fewer severe side effects than Alli, its main competitor.
Alli is being investigated by the FDA for causing liver failure.
� Distinguishes itself from competitors by providing comprehensive 24-month support programme to promote a lifestyle change
� Metabical has 10 year patent on this specific formulation.
Initial Investment:
R&D: $400M
Marketing: $23M

Payback period: approx. 15 months

For every $1 we spend in Marketing, we receive $14 profit
End-Customers
Influencers
When informed about the benefits of Metabical, market size would triple, generate $2B potential revenue and over $1B gross profit margin
Biggest decider in choice of drug and volume.
Trusted by patients - building support within the general practitioner segment will have a significant impact on sales and allow us to realise full potential market.
Insurers typically have not subsidised cost of weight-loss formulations. Significant driver of volume if full cost of treatment were covered.
Payback
Revenue Outlook
Full transcript