Metabical

GROUP 2

How you define

Obesity?

Is obesity a
disease?

Obesity
Awareness
VIDEO CLIP

Health
and
Social
Issues

Excess weight approximately 65%

of the entire adult population

Being overweight is related to a

number of serious health
complication

Overweight individual endure a

significant social stigma

Laziness and self-indulgence are

common stereotypes associated
with overweight

The professional life negatively

affected the hiring decision, wages,
and promotions

BMI
Formula

Catagories:
Over Wight: 25 to 30
Obese: 30 to 40
Severly Obese: 40

Metabical
CASE INTRODUCTION

Market Dynamics
Few weight loss drugs
Only one other drug
approved by FDA (Alli)
Negative side effects of Alli
these drugs including liver
damage & heart diseases
Alternate herbal products /
dietary supplements which
are unregulated and not
approved by FDA

Serious side effects of these supplements including heart

disease (Ephadra banned by FDA)
Deceptive marketing
Low market credibility
Unsubstantiated weight loss claim
Federal Trade Commission penalized weight loss drug
manufacturers with a fine of 25 million dollars

Cambridge
Science
International
health
Pharma.
care company
Expertise in
developing and
manufacturing
products that treat
metabolic disorders
gastro intestinal
diseases and
immune deficiencies
Over $25 billion sales
in 2007
Strong financial
position
High focus on R&D

Geographical Distribution of Overweight &

Obese

BMI Trends in US Population

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

1976 to 1980

1988 to 1998
Overweight
25 BMI 30

Obese
31 BMI 40

1999 to 2000
Severly Obese
BMI 40

BMI Trends in US Population

Obesity vs Ethnicity & Education

Metabical Obesity Killer

Weight loss drug
Approved by FDA
12 week weight loss program with
intake of 1 pill per day
Less side effects
Effective in behavior modification
Ineffective with people having BMI
of over 30
Average weight loss of 26 pounds
in 12 weeks (BMI level of 28 to 30)
Average weight loss of 15 pounds
in 12 weeks (BMI level of 25 to 28)

Metabical
Promotion
VIDEO CLIP

Strengths

SWOT
Analysis

Approved by FDA
Lesser Side effects
Low dosage
required
Positive results
within time

Opportunities
65% adult
population obese
Social stigma for
overweight people
Obesity a major
cause of death in
US

Weakness

Not effective on
people with over
30 BMI level
Gastro intestinal
discomfort on high
fat and calories
consumption

Threats

Competitors can
come up with
similar or better
products
Less consumer
awareness
Low credibility of
weight loss
products

Marketing
Strategy

Consumers
Gender: Male & Female

Target
Market

Demography: 25 to 70 years
Focus: 25 BMI 30
Income: Medium to High Income
Level

Health insurers
Doctors
Health care advisors

Positioning Statement

Communication
Strategy
Promotion
ATL Campaigns
TV advertisements
Radio
Billboards
Print Ads (Newspapers &
Medical Journals)

BTL Campaigns

Awareness
Seminars
Social Media
Personal Selling (Doctors &
Health Providers)

Availability & Pricing

PRICING

PLACE

1 weeks package
(5$ per capsule)
4 weeks package
(4.5$ per capsule)
8 weeks package
(4 $ per capsule +
Support program CD)
12weeks package
(3.5 $ per capsule +
Support program CD)

Pharmacy

Hospitals

Price Simulation
Particulars

Metabical

Estimated Retail
Price
Dosage
Treatment

$3 to $5 per pill
1 pill daily
12 weeks (90
days)

Alli (Competitor)
$ 120 per pack or $ 2.40
per pill
1 pill daily
50 days

Estimated Retail Price

Price per pill ($)
Revenue per month
($)
Revenue per month
($)

90

120

1,080

1,440

5
150
1,800

Potential Consumer Reach a

Sales Forecast
Population
Years
(Millions)

Overweigh Potential Responden

t
Users
t
25<BMI<3
(Millions)
0

(Market
Survey)

% of
consumers
actually
buying

Consumers
Reach

(Millions)

2007
220
37%
74.80
12%
10%
0.90
Assumption:
2008
230
39%
89.70
12%
10%
1.08
- Through Market survey it is confirmed that average 12% respondent make
appointment with health care provider.
- It is assumed that 10% of total population actually buying the product.

mated Number of Packs to be sold:

Years

Consumers

2007
2008

0.90
1.08

Pack
(90 days
program)
3
3

Sales Pack
Sales $
(in Millions
120/pack
USD)
(in Million USD)
2.69
323.14
3.23
387.50

Return on Investment
Return on Investment Year 0 Year 1

Year 2

Year 3 Year 4 Year 5

Sales Turnover ($
million)

348

382

420

463

509

Initial Investment

(400)

(24)

(20)

(18)

(11)

(15)

(424)

324

362

402

452

494

(424)

(101)
-24%

262
62%

Marketing Expense
Net Cash Flow for the
year
Accumulated Cash
Flow ($ million)
Return on Investment

(24)

* Average Return on Investment is

167%
* Payback Period
1.27 years

664 1,116 1,610

157% 263% 380%