Xacc/280 Week 2 Case Analysis Of Metabical

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Situation Analysis. Metabical is a new prescription drug that claims to be a safe and an effective way of losing weight for moderately overweight individuals. This drug has the differentiation of FDA approval and a comprehensive support program for post purchase support. The problem is in deciding what positioning, target market, segment and marketing mix to use as initial rollout of the product, in a time when the consumers are skeptical of weight loss drugs due to of deceptive marketing stigmas. The mix should have a sufficient initial impact and long term viability on sales so as to recover CSP initial investment of $400 million in 10 years. In 2005 the overweight U.S. population was about 209 million Americans. Competitors in the weight loss drugs included Alli, which was an over-the-counter drug with FDA approval, all other competitors were herbal or dietary supplements thus not regulated by any governing body. The legal and social climate at the time was not in favor of the drug industry. As a whole this industry was tagged with deceptive advertising because side effects where not known until after the product reached the market, thus this translated to low credibility from consumer’s and the professional medical community perspective. Desirability, deliverability and differentiation need to be taken into…show more content…
In order to reach both sets off women and the medical community the current mix of both pull and push strategies should be held, but in the longer run the budget would have to be adjusted to 75% Pull, 25% Push of the current $13 million advertising budget. Understandably the budget for Metabical is not that big considering CSP had sales of $25 billion and spent $400 million on R&D for this drug. I would recommend that the initial roll out mirror that of the golf world, advertising few months before the warm weather and sales emphasis during the warmer months, as physical activity increases for the target

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