Pricing, Packaging and Demand Forecasting
Case Brief
Demand
Forecasting
Packaging and Count
Decision
Pricing
Strategy
Introduction of new weight loss drugMetabical
What is the expected demand?
What are the factors deciding packaging count decisions? How many tablets in a packet of drug?
What should be the pricing strategy?
ROI
Demand
Forecastin
g
Case Brief
Packaging and Count
Decision
Pricing
Strategy
ROI
Demand Forecast: Option One
Population Actively
Overweight
trying to lose weight
Population Percentage
Year
(35% of Overweight
(Million)
(BMI 25Users)
30)
(Million)
2008
230
35%
28.175
Time
Frame
People
Comfortable with
Weight Loss Drugs
(Million)
4.2265
Forecast
Second
Percentag
First
Final Supply
Net
ed
Supply
e Market
Supply
Demand
Demand
Consume
Demand
Forecaste
Demand
Forecast
Forecast
rs
Forecast
d to be
(Million
( Million
(Million
(Million
Captures
Packs)
Packs)
Packs)
(Million)
Packs)
Year 1
10%
Year 2
15%
Year 3
20%
Year 4
25%
Year 5
30%
0.42262
5
0.63393
8
0.84525
1.05656
3
1.26787
5
0.422625
0.633938
0.84525
1.056563
1.267875
0.25357
5
0.38036
3
0.50715
0.63393
8
0.76072
5
0.050715
0.726915
0.076073
0.10143
1.090373
1.45383
0.126788
1.817288
0.152145
2.180745
15% of survey respondents comfortable with using drugs
Pros:
• Covers all potential users.
• Makes good use of population and BMI trends. Cons:
• 15% of survey respondents being comfortable with using drugs does not signify they will visit health care provider.
They might prefer OTC.
• Income level of potential users is ignored.
• No narrowing down w.r.t education, age and gender.
• Psychographic segmentation ignored.
Demand
Forecastin
g
Case Brief
Packaging and Count
Decision
Pricing
Strategy
ROI
Demand Forecast: Option Two
Year
Population
(Million)
Overweight
Percentage
(BMI 25-30)
Potential
Users
(Million)
People Comfortable with Weight Loss
Drugs (Million)
2008
230
35%
80.5
9.66
Time
Frame
Second
Percentag Forecaste