Metabical Case

In 2008, a marketing and positioning strategy was needed for Cambridge Sciences Pharmaceutical’s (CSP) new weight loss drug called Metabical. Metabical was touted as being a revolutionary weight loss drug with fewer negative side effects than the usual medicinal weight loss remedies.

This would help optimize demand of the product, not leaving profits on the table but also not pricing out consumers who are willing to pay a reasonable price for a weight loss drug.

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?

“Obesity is a disease that affects more than one-third of the U.S adult population (approximately 78.6 million Americans). The number of Americans with obesity had steadily increase since 1960, a trend that has slowed down in recent years but show no sign of reversing”.

Obesity remains an extremely serious issue worldwide. Once considered a problem for wealthier counties, overweight and obesity are now dramatically increasing in low and middle income countries (WHO, 2011). In American, the rates of obesity continue to soar. CDC (2009) recognizes obesity as a risk factor for diabetes, heart disease, high blood pressure, and other health problems. According to NHANES over two-thirds of the US are overweight or obese, and over one-third are obese (CDC, 2009). Treatment for this illness varies; it may include the incorporation of diet, exercise, behavior modification, medication, and surgery. Since there is no single cause of all overweight and obesity, there is no single way to prevent or treat overweight

To assist patients who have a (BMI) of >30 to achieve a weight loss of at least 5%.

About 40 to 50% of adults in America are at risk for diseases such as stroke, kidney failure, heart attack, heart failure and obesity. Most of these diseases are brought on by hypertension which is brought on by unhealthy eating choices, poor diet and little to no exercise which has devastating effects on the body. Approximately 7 out of 10 Americans is prescribed or takes a prescription pill daily, half of those are diet related illnesses such a diabetes and one third of those individuals is obese. Two trillion medical-care costs are because of chronic diseases most of which are lifestyle habits/choices. Obesity in America costs about taxpayers about $123 billion via Medicare and Medicaid. Now that obesity has risen at an alarming rate, in some cases obesity is considered a disability for those that are physically or mentally impaired by it. Debatably a preventable disease with proper education on food, diet and exercise

Adult overweight and obesity have become a worldwide issue that has very dangerous consequences on health. World Health Organization defines obesity as the “epidemic of the 21st Century”. WHO reports show that 1.9 billion people with 18 years age and older are overweight, and 600 million of them are obese. In the United States, obesity is a serious problem today that results from overconsumption of high-fat food and sugary food with lack of exercise. The Centers for Diseases Control and Prevention reports show that the obesity rates are above 20 percent in all states. Overweight and obesity have become a major public health issue because of their high rates of mortality and morbidity. People who are considered overweight or obese are at increased

Obesity has become increasingly more prominent in American society. The Unites States has even been termed an overweight nation. Some twenty to thirty percent of American adults are now considered obese (Hwang 1999 and Hirsch et al 1997). With this in mind, Americans constantly look around themselves determining their weight status as well as that of those around them. While some Americans do fit the healthy category, others enter the underweight, overweight, and even obese categories, all of which can be unhealthy.

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.

The trend of health care costs is still primarily based on treatment and less on prevention. Adult obesity is a significant cause of preventable chronic diseases and one cause of increased health care costs in the United States. The cost of obesity impacts each state and community. Adult obesity can be associated with chronic diseases like diabetes, heart disease, stroke, osteoarthritis, and some cancers, just to name a few, and account for more than 75 percent of U.S. health care cost. Currently, costs range from $147 billion to nearly $210 billion per year. If this trend continues, obesity-related medical costs alone could reach 66 billion a year by 2030.

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.

In consideration of the ROI, it is my recommendation to pursue a more forceful approach and take into account the entire US population. In this case, the 209 million people and multiply 34% of it to include people who are overweight equaling 71.06 million. Next, utilizing the 12% (target audience) and equaling it to 8.527 million. With this, Metabical will capture 10% in year one, 15% in year 2, 20% in year 3, 25% in year 4, and 30% in year 5.

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

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