Metabical: Positioning and Communications Strategy Case Study

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Decision Making Process for Metabical

Metabical is a prescription drug for controlling weight loss for overweight individuals, and a product of Cambridge Sciences Pharmaceuticals (CSP). CSP is a healthcare researcher that focuses on developing, manufacturing, and selling drugs that treat health disorders. Its drugs cure health disorders, which include immune deficiencies, metabolic, acute, and chronic disorders.

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Researchers found the drug to be effective for overweight persons bearing body mass index (BMI) of 25 to 30. It combined calosera, an appetite supplement compound with meditonan, fat blocking, and calorie absorbing agent. The combination enhanced weight loss for overweight individuals. In addition, the drug had optimal effects when used in low dosages, which have minimal negative effects on the liver as opposed to other drugs.

Additionally, researchers also introduced a different perspective of the drug, which allowed the users to use only a single pill daily. Just like other prescription drugs, metabical has negative side effects that patients felt after the consumption of high-level calories and fats.

The drug was clinically tested and the results showed that the drug was effective with majority test participants achieving their goals for weight loss by twelve weeks. Tests revealed that persons with BMI of 25 to 30 lost at least twenty-six pounds after taking Metabical. Metabical was also effective in the modification of behavior and healthy eating habits.

Test participants on Metabical dosage had a mean of less than 10 per cent of weight shedding in a period of three years. However, researchers found the drug to be less effective to individuals with BMI of above 30 since they lost low weight, and thus not recommended for that group.

After the approval of its use in over the counter, CSP embarked on pricing models in order to come up with the favorable price for Metabical. However, it estimated to have a retail price of approximately $3 to $5 per pill.

In the United States, the majority in the population have overweight problems, which compelled the medical insurance plans not to cover the health rated problems to overweight risks. Hence, patients bought the drugs without the involvement of reimbursements from the medical insurance cover plans.

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There were expectations that few prescriptions would cover the cost of Metabical, but Printup thought of launching a campaign to persuade health care insurance plans to include the cost of Metabical in the drug plans from review of the first six months performance of sales. CSP planned to launch Metabical in January 2009 after successive approval by the Federal Drug Authority (FDA) of the United States.

FDA approved Metabical as the first drug for overweight individuals. The researchers gave time for the development of reliable positioning strategy and associated marketing communication plans for the new drug. The overall marketing duties fell on the hands of Barbara Printup, the head of marketing department at CSP.

CSP made various decisions on the development of Metabical. CSP also had planned to assist individuals who succeed in achieving the desired weight results to adopt healthy eating habits in order to keep the weight in check. CSP expected to carryout development of support program on which it could spend $200,000.

In addition, it expected the cost of producing the program for year 1 to be at least $2 million but the estimated cost of the program was to be lower than 10% of the marketing budget for year 1. The program would include online referencing materials, which included; online weight-control tools, personal support, meal plans, and exercise plans.

There was no trial testing for the decision of the support program before its implementation and therefore, studies had not measured its impact for further decision making.

However, Printup, senior marketing director at CSP, was optimistic that the program would assist the Metabical users to attain and maintain their goals of weight loss. Yet, there was anxiety on how she was going to highlight the program within communications strategy.

Consumer Segmentation

By 2000, overweight population formed 34 per cent of the total population in the United States with adults being the most affected, and 4.5 per cent falling into the category of being severely obese. Studies on the vice showed that obesity of adults’ population increased with advancement in age for both men and women.

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The studies found highest incidences for each gender disparity to be ages between 65 and 74 for men, and 55 and 64 for women (Dewhirst and Davis 90).

Secondly, studies on the vice also found low-level education to be a great factor that facilitates the increase in the cases of obesity. Population of people with less than the high school level education was greatly affected by the cases of obesity, but excess weight affected all demographic segments.

However, health service providers were opportunistic about the prospect of Metabical, which could aid overweight individuals to shed off their weight and establish exercise habits and healthier eating habits. In addition, they said that it was a hard task of taking a pill everyday, but the support program was an excellent idea that would complement the idea of achieving obese free population (Weinstein 118).

In 2007, Print commissioned a market survey of overweight individuals. Results showed interesting findings from the respondents who were overweight individuals. Nearly, 70 per cent of them indicated that they were not satisfied with their body weights. In addition, 35 per cent of the overweight population indicated that they were actively trying to lose excess body weights.

In addition, 15 per cent of individuals in that segment indicated that they were comfortable using drugs for controlling body weights. Lastly, 12 per cent were desperately in need of an appointment with a health service provider for a prescription.

Printup had the mandate to carryout market segmentation. In carrying out the market segmentation, she considered various factors, which included population age, level of education in a population, and the size of affected proportion in a population. Beginning with the population age, studies found that the majority of the affected individuals are adults of ages between 55 and 74 for both men and women.

Therefore, this insight formed a market segment, which comprises of adults near retirement age and old aged. Secondly, the level of education was a factor that determined the severity of overweight in a population. Hence, it is a crucial factor in the formation of market segment for the Metabical drugs.

The task was to identify the market segments by considering the populations literacy levels. The studies showed that individuals with low-level of education, less than high school education, were the most affected by the severity of overweight cases.

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Thirdly, clinical tests found Metabical to be most effective for overweight individuals with BMI of between 25 and 30. Therefore, Printup could choose individuals with BMI of between 25 and 30 to be an effective market segment. In addition, this segment formed the only market for the Metabical and thus of crucial importance to CSP.

Lastly, market segment can be determined by putting into consideration all the above factors, and their effects on the entire population. Low level of education in a population contributes to overweight due to ignorance on the effects of unhealthy eating habits.

In addition, most people are unemployed and stand high chances of spending a lot of time eating due of idleness. Shockingly, unemployed population does not afford the cost of buying organic foods and thus consume a lot of fast food, which is unhealthy.

Position of Metabical in the Market Place

Cambridge Sciences Pharmaceuticals (CSP) can easily identify the differential advantages of Metabical in the marketplace. It was the first overweight drug that the Federal Drugs Authority of the United States approved for use in the health sector, which was after successful clinical tests in which respondents responded positively by losing their weight.

In addition, the majority of people in the entire overweight population were desperately in need of consulting health service providers for prescription.

Therefore, metabical stood a high chance of selling well in the market by being a monopoly. In addition, Alli and other preexisting drugs failed to eliminate the overweight problems without harmful effects to patients and as a result, FDA eliminated them from the market (Dewhirst and Davis 90).

In addition, Metabical has a chance of getting into the health assurance plan due to its effectiveness in reducing the risks of overweight to a victim. Successful incorporation of Metabical into the medical plans would help the researchers to get a large market share for there are no close substitutes in the market.

Moreover, medics praised the drug for being a major breakthrough to a health disorder that has affected many people with no cure, which shows that metabical will find its way into health facilities as a recognized prescription unlike its predecessors.

Communication Strategies

The drug in question required an effective communication that would include every player in his or her making of decisions. The effective plan ought to focus on two parties for the drug, viz. the end of application use, who is the patient and the health care officer offering the prescription.

In addition, the health care providers ought to be the one who supplement the metabical prescription with the recommendation of the right support program depending on the nature of the patient’s case (Carlton and Blaise 77). The drug was a major breakthrough for the CSP because it gave an opportunity for researchers to dominate in the overweight drug market.

Therefore, the launching budget for the drug ought to be higher than the ones of the previous launches that the researchers have had in the past. However, there was going to be a close relationship between the budget for the Metabical and the most recent launched drug.

Hence, the current budget was going to be a fine tune of the previously used budget with the major differences being in the costs of things that have changed due to inflation in the economy (Carlton and Blaise 82). In addition, in the generation of a market timeline, I planned to perform a comprehensive test of advertising and product promotion campaigns in the first year of the drug launch.

The test would involve respondents who are conversant with marketing medical drugs for specific market segment. Their feedback would be a great milestone in the making of a comprehensive market budgeting plan for metabical and the support program for patients who are under the medication program.

Advertising is the most important marketing strategy for a new product in the business. Medical drugs require a specific advertising strategy depending on the target customers. Metabical targets both the patient and the health care provider and thus direct-customer advertising strategy could be the best method of advertising for it would reach the targeted customers effectively.

However, FDA had allowed the drug producers to use media and other channels for advertising drugs and thus television, online, and print media could be the best choice of advertising methods for the case of metabical. Over the first year of launch, the drug needed to have heavy advertising in order to achieve a comprehensive market sensitization within a short time frame.

Therefore, I would recommend for the utilization of more than two-thirds of the first year’s total marketing budget on direct–customer forms of advertising. This assertion holds because the main objective is to create awareness of the existence of metabical in the drug market and more so to the target market segments that CSP had identified earlier before the launching.

The most effective form of direct-consumer form of adverting for metabical ought to have three most important initial concepts, which include sensitizing patients that weight loss is tough and thus it cannot be done by oneself. This move could help to win the willingness of patients to purchase the drug as assistance in achieving their weight loss goals (Quelch and Beckham 89).

Secondly, the concept of encouraging patients to build desire for building physique that is attractive. This aspect could boost the persuasiveness of advertisements for the desire of many humans is to have attractive physique in their lifetime, and thus many patients would choose to buy the drug with physique attractiveness as their ultimate goal.

Lastly is the creation of awareness of the most weight loss that a patient can achieve after taking the drugs. This stage is the most important part of the advertising that tends to create awareness of the targeted patients in the population.

The message could read something like those extra twenty pounds could kill you. This statement implies that patients with more than twenty extra pounds depending on their BMIs would eliminate themselves from the market segment (Weinstein 67).

In addition, it was crucial for the advertising strategy to target the medics. Therefore, a professional advertising method was necessary in order to reach the medics in health care centers and training institutions. The most effective form of advertising for the above goal was advertising in the academic and professional print media such as in the medical journals and reports.

In addition, online advertisements were also crucial and could be effective when done on the websites of CSP, hospitals, health institutions of learning, and other health organizations. These forms of advertising could help in effectiveness of the aligned timeframe of advertising.

One year is a short period for advertising and creating comprehensive awareness for a new drug in the market. Hence, it is necessary to carry out frequent evaluations of the effectiveness of the advertising strategies that were in use.

I would recommend for the adjustments of the advertisement strategy intended for health care providers by touching on three important elements (Quelch and Beckham 89). They include sensitizing the medics, which is done by informing them that Metabical drug is effective and safe weight loss drug for patients, and hence an alternative to the previous prescriptions that were in use.

Second, is emphasizing on the harmful effects of obesity and overweight disorders to the patients. The advertisement should touch on the effects such as diabetes, heart diseases, and others that are fatal for the human life. Thirdly, informing them that the FDA has approved Metabical as the only effective and safe weight-loss-drug in the drug industry of the United States.

In addition, it is crucial to inform them of the findings of the clinical tests whereby the drug was found to be most effective for patients with BMI of between 25 and 30. That information is essential for sensitizing them about the right patient for the prescription. The advertisements ought to inform them of the importance of the support program to the victims who were under the medication (Carlton and Blaise 114).

Lastly, product promotions are very crucial for the promotions of new market products in the business. Therefore, metabical needed product promotion campaigns in order to boost its sales in the market.

Product promotion is more effective than advertisements for the seller gets immediate feedback from the buyers. In addition, the seller is capable of reaching the target customers and directly informs them on crucial information about the product.

However, product promotion does not have a wide coverage of the market when compared with other forms of advertisements, but it has more influence in the market than the other forms of marketing. It is also expensive and time consuming though it has significant long-term advantages for the product sales.

I would recommend that product promotion and public relations for the metabical follow the launch, as they would help to emphasize information about the drug to the public. Within the first year of launch, the marketing department should keep on evaluating the effectiveness of the marketing strategies that the researchers are using.

This move would help to ensure that the cost of marketing strategies does not exceed the estimated marketing budget without significant returns from the market. In addition, evaluation helps in early detection of problems, which otherwise would deter the achievement of the marketing goals and identification of their correction measures before it is too late.

Hence, Printup, the researchers marketing director, ought to have a schedule of regular meetings with the executive of CSP within the first one year of the product launch. In those meetings, she would brief the executive about the sales performance with regard to the successively reached market segments, and tell the plans that are already in place for the unreached market segments.

In addition, she would also give an assurance of whether the marketing budget will be enough to cater for all costs of her marketing strategy. Lastly, she would assure the executive that the aligned period is enough for the planned marketing strategies.

Works Cited

Carlton, Maria, and David Blaise. The power of promotional products: how to motivate prospects, reward performance and create targeted promotions with residual value, New York: Maruki Books, 2007. Print

Dewhirst, Timothy, and Brad Davis. “Brand Strategy and Integrated Marketing Communication (IMC): A Case Study of Player’s Cigarette Brand Marketing.” Journal of Advertising 34.4 (2005): 81-92. Print

Quelch, John, and Heather Beckham. Metabical: positioning and communications strategy for a new weight loss drug, New York: Harvard Business Publishing, 2009. Print.

Weinstein, Art. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, Washington D.C: Haworth Press, 2004. Print

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IvyPanda. 2019. "Metabical: Positioning and Communications Strategy." December 27, 2019. https://ivypanda.com/essays/metabical-positioning-and-communications-strategy/.

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IvyPanda. "Metabical: Positioning and Communications Strategy." December 27, 2019. https://ivypanda.com/essays/metabical-positioning-and-communications-strategy/.

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