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Case asalysis - Assignment Example

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Cambridge Sciences Pharmaceuticals (CSP), an international healthcare company, has successfully developed Metabical, a prescription drug for overweight (BMI between 25 and 30) patients. The company describes Metabical as revolutionary and the only FDA approved prescription drug…
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Case asalysis
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Download file to see previous pages 12 percent of the respondents claim they would immediately consult a health care provider if the option of a weight-loss prescription drug was available. The results of the clinical trials are also pretty encouraging. All these aspects have prompted CSP to seek a nod from the Food and Drug Administration’s (FDA) approval for manufacturing and marketing Metabical.
Two major decisions pertaining to packaging and pricing of Metabical still need to be taken. Both these decisions are to be taken by Barbara Printup, senior director of marketing for CSP. The company expects Metabical to be approved as a 12-week treatment plan. CSP contemplates that a days-of-the-week, ‘blister’ style wrap up would be the optimal package for the drug. The quantum of medicine to be put in one pack is dependent on the price and paying capacity of the target market. The final decision on pricing is to be taken on one of the three models; competition based pricing, mark-up pricing and value based pricing. In the ultimate analysis, these important decisions would determine the demand (unit value) for Metabical.
Market research suggests that the condition of being overweight is all pervasive. It affects people of all demographic profiles. Both men and women, young and old are overweight. Thus CSP can segment the potential Metabical consumers on various segmentation variables including demographic, socio-economic and behavioral.
CSP can use multiple criteria to segment the customers. At the outset the behavioral segmentation can be deployed to identify the customers who are willing to avail the benefit of weight loss. Printup has valuable information on important parameters like age, gender, education level, income level and prevalence of obesity in the United States. This data will enable Printup take an informed decision on segmentation of customers.
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