I recommend B2C which is more effective in enhancing product access and consumption. Currently, many different diets, exercise regimens, and prescription and over-the-counter treatments are available for weight loss. Therefore, the producers of these products were forced to pay $25 million by the Federal Trade Commission in 2007 to resolve claims that the results were falsified. The three-month supply of these additional OTC medications costs around $300.00. Additional weight-loss options include exercise regimens, nutritional supplement products like Slim Fast, weight management plans like Weight Watchers, and pre-portioned food delivery programs like Nutrisystem and Jenny Craig.
While pre-portioned food programs like Nutrisystem and Jenny Craig would cost between $1000 and $1600 for three months, Weight Watchers membership costs would be under $120. The pharmaceutical company Cambridge Sciences Pharmaceuticals (CSP) thought there was a market for overweight people seeking alternatives or unsatisfied with their present options. The first prescription medication particularly authorized for obese people with a BMI of 25 to 30 who want to lose 10 to 30 pounds is called Metabical.
Pros and Cons of Print up Forecasting Method
The first strategy involved counting the number of overweight Americans with a BMI of 25 to 30 and then reducing the population to the proportion of people actively attempting to lose weight. 35% of people were actively attempting to reduce weight, according to a CSP poll. 15% of the people in this sample felt at ease utilizing weight-loss medications. Although this strategy is highly organized, it is incredibly wide. There is no specified income, education, or gender range. If the product is released widely, they may miss out on possible target audiences. The calculations are as indicated in table 1 below.
Table 1: 5-Year Demand Forecast
Packaging Size Analysis
Some of the considerations include the following:
- In the FDA studies, people completed their weight loss targets in twelve weeks
- Due to the low dosage formula, the drug would have to be given at the same time each day. The efficacy would be greatly decreased if consumers missed a day.
Recommendations
I advise using packaging with a 28-day, 4-week supply. The proposed container would be compact enough to allow the user to choose between buying a 12-week supply in one go or a 4-week supply. The four-week package might be beneficial for those who may not be able to buy all 12 weeks at once because insurance companies are not paying for the prescription.
Pricing Strategy
Options, competitive pricing, premium pricing, were all things Printup was investigating and could have utilized.
Option 1 Advantages: Competitive Pricing: A new entrant would have an easier time entering the market if there were competitive pricing, enabling them to compete in a market with much competition.
Option 1 Disadvantages: Competitive Pricing: Once the price is lower, there may be a decrease in sales and profit margins.
Option 2 Advantages: Premium Pricing: It would help generate immediate income that may eventually be used to offset the $400 million overall R&D expenses.
Option 2 Disadvantages: Premium Pricing: This cost may drive away customers with lower income levels.
Recommendations
I would advise using a premium pricing structure. The company will be able to swiftly recoup its R&D costs because of the higher sale price. Additionally, this tactic could revitalize their brand. Customers who want to reduce weight and seek a higher-quality product will be drawn to this cost. Customers believe the product is the greatest if the price is high. The product might always be discounted later once it has gained more traction. This consumer will purchase a four-week supply that they will replenish more frequently, increasing sales.
Impacts of Pricing Decision
For every year and every target category, premium pricing provides a profitable return on investment. Notably, the target group of people with a BMI between 25 and 30 had the highest ROI at 184% for the premium pricing as indicated in table 2 below.
Table 2: Quantitative Analysis: Gross Margin Forecast, Cost Estimates, Return on Investment