Case Study Of Medi Cult

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Case study of Medi-Cult: Customer Oriented Pricing for a Radical Innovation
University Student
University of the People

When innovations are made, companies sometimes struggle with pricing. The innovations may or may not meet the consumers desires. Medi-cult developed In Vitro Maturation (IVM) technique of making women pregnant. However, the success rate is low. Furthermore, the women are reluctant to repeat the process once the first trial fails. It is also expensive. A major threat to Medi-Cult is the stiff competition by other pharmaceutical companies. Good pricing criteria should be adopted to compete effectively while improving on meeting consumers’ demands.

Customer-Oriented Pricing
The case …show more content…

For instance, the IVF technique involves use of hormonal stimulation using the follicle stimulating hormone (FSH). Looking at the pregnancy outcomes following IVM, you find that implantation rate is about 18% and live birth rates ranges from 15.9% to 33% per cycle (Chang et al, 2014). This item of information shows that the value delivered by the technique does not meet the customers’ expectations. This is a typical example of Price > Cost > Perceived Value as explained by Winer and Dhar (2011 p.251). Medi-Cult’s competitors include the large scale pharmaceutical companies like Wyeth who supply the hormones, FSH, used in IVF technique and Medi-Cult company which supply Cell culture media just like IVM.
Question 1: What are the sources of economic value for IVM vs. IVF?
Economic value refers to the maximum amount that a consumer is willing to pay for a product in a free market economy (Investopedia, 2017). Therefore, women will be willing to pay for IVM services unlike IVF because of various reasons. First, IVM method does not involve the use of hormones which are known for causing side effects like nausea and in some cases this treatment will require extra medical attention. This implies that the cost of IVM process is lower compared to IVF hence lower price for consumers.
Additionally, IMV technique is faster because the time required for egg maturation is reduced from 30 days in IVF to 2 days for

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