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Topic P1

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on 22 October 2013

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Transcript of Topic P1

METABICAL CASE STUDY
Pricing strategies
Benchmarking
Penetration pricing
Target pricing
Factors kept in mind
Total price of the box
Size of the packaging (should look big)
Contents
Bottle v/s strips
28 pills per packet
Package contents-

“Weight Loss Buddy” Reading Material-
‘How Metabical works’
Benefits of Metabical
Benefit diet plans by Metabical
personal food journal

Packaging
Benchmarking

-compete with the competitor

Price lesser then $3.75 is not enough to fetch profits.
Target Pricing
-a price that if achieved would result in the best possible outcome
“ I want to be healthier” – Age 35 to 65 , college education plus, household income $80,000+
“ I want to wear my skinny jeans” – Age 25 to 40, college education , household income $50,000- $80,000

Target Customers
Average annual income : $65,000
Avg monthly income 65,000/12= $5416
Setting the price as $4.5 per pill($3-$5), one package costs them $126
This shows that they only spend 2.3% of their monthly income on Metabical.
Demand Forecasting
Estimation of future demand of a product
Uses of demand forecasting

Production planning
framing realistic pricing strategy
STRENGTH
FDA approval
fewer negative side effects
low dose formulation



WEAKNESS
occasional gastrointestinal discomfort when users
new player in market
effectiveness will suffer if consumed with high levels of fats and calories
OPPURTUNITIES
65% of entire adult population is over weight, obese and severely obese.
issues people have being overweight
bad experience with competitors products

THREATS:
-
existing market competition
-lack of awareness as it is a new product

COMPETITION
DQ

DIRECT COMPETITORS
Alli - PRICE - 3 per day $120 initially (150 pills for $120 )
Xenical $1.43 per Capsule (84 tablets for 120)

R.O.I
Full transcript