Metabical

3139 Words May 8th, 2014 13 Pages
Metabical: Pricing, Packaging, and Demand
Forecasting for a New Weight-Loss Drug

1- Discuss Metabical’s points of differentiation compared to current weight-loss options? After 10 years of testing and spending a significant amount in research and development. Cambridge Sciences Pharmaceuticals (CSP) discovered one of the best weight- loss drug that called Metabical. Metabical has unique characteristics that make it different in market.
People are always concerned about the side effect of any drug and sometime they preclude taking drug just because they are doubtful. Metabicals is differentiated by the Food and Drug Administration (FDA) approval. It is the first and only prescription drug that received FDA approval to meet the
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The study shows that people in overweight category had weight-loss goals of approximately 10 to 30 pounds. This advantage will increase the potential market and clarify their target.

2- Calculate the demand (unit) forecast for the first five years for each of the forecasting methods considered by Printup.
Table A in appendix.

What are the pros and cons of the three forecasting methods presented by Printup?
The first method of demand forecasting is based on three elements:
The Overweight population (BMI between 25 and 30), the percentage of individuals actively trying to lose weight in the overweight population and the percentage of individuals who are comfortable using diet pills among the actively trying to lose weight populations.
It’s the most conservative and pessimistic approach with a cumulative unit sales of 7,061,460 for five years, which is more than 50% less than the two others approach. The only clear advantage for this method is its low risk. However, this method has more disadvantages such as: * The type of population (overweight population) that this method focus on is very general with different preferences and differents behaviors. * Due to the low unit sales, this method will have the lower profits and thus will be difficult to meet the desired ROI of 5%.

The second method of demand forecasting is based on a survey made by CSP
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