Metabical Harvard case study

56
Meh – Tuh – Bye – Cal Lukman Kresno O. 29110394 Yohanes De Deo Tedo 29110399 Anggi Fitrining Tyas 29110400 Ronaldo Bagus Putra 29110404 Wisnumurti Rahardjo 29110412 METABIC AL

description

Metabical Harvard case study

Transcript of Metabical Harvard case study

Page 1: Metabical Harvard case study

Meh – Tuh – Bye – Cal

Lukman Kresno O. 29110394Yohanes De Deo Tedo 29110399

Anggi Fitrining Tyas 29110400Ronaldo Bagus Putra 29110404

Wisnumurti Rahardjo 29110412

METABICAL

Page 2: Metabical Harvard case study

Metabical (Meh – tuh – bye –cal)

Metabical proved to be safe and effective in stimulating weight loss for moderately overweight individuals

CSP focus on developing, manufacturing, and marketing product that treat metabolic disorders, gastrointestinal disease, immune deficiencies, as well as other chronic and acute medical conditions

Sales over $25 billion in 2007

Printup had over 20 years of experience marketing

Page 3: Metabical Harvard case study

Medical scheduled launching for January 2009

Today is February 2008 and Printup’s first order of business was to develop a viable positioning strategy and associated marketing communication plan for Metabical

Issue

Page 4: Metabical Harvard case study

BMI has three categories for adults:

Overweight (25 to 30)

Severely obese (over 40)

Obese (30 to 40)

Page 5: Metabical Harvard case study

• 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

Health and Social Issues

Page 6: Metabical Harvard case study

Weight Loss Drugs• Only OTC drug named Alli had been

approved by the FDA• Negative side effect of Alli included

gastrointestinal conditions such as loose stools, increased defecation, incontinence, abdominal pain, and liver damage

• Other OTC weight-loss solutions were categorized as herbal or dietary supplements by the FDA and unregulated by the agency

• Herbal remedies and dietary supplements did not require stringent FDA testing and approval

• The dietary supplement ephedra was linked to several cases of sudden cardiac death and other serious health risk

Page 7: Metabical Harvard case study

Metabical

Advantage:Fat-blockingCalorie-absorption agentReducing stress on heart or liverControlled-release feature

Disadvantage:Gastrointestinal discomfortNot effective to be consumed with excess fat and calories

Page 8: Metabical Harvard case study

Metabical create behavior modification and healthier eating habit

Metabical not very effective in helping individuals with BMI of 30 or greater

CSP estimates that Metabical would be prices at $3 - $5 per day, with the average course of treatment lasting 12 weeks

Trial participant reached their weight-loss goals by week 12

Page 9: Metabical Harvard case study

The goal was to enable individuals to achieve better result than they would from the pill alone

It would teach lifestyle skills for healthy weight maintenance after the initial weight loss achieved

SUPPORT PROGRAM

Page 10: Metabical Harvard case study

• Reference materials

• Online weight-control tools (weight-loss tracker, food diary, nutritional and calorie calculator)

• Personal support (community forums)

• Meal plans (menu planner, grocery lists, thousands of recipes)

• Exercise plans (weight training and cardio routines)

The Support Program Would Include :

Page 11: Metabical Harvard case study

MARKET RESEARCH

Page 12: Metabical Harvard case study

Overweight (25 ≤ BMI < 30)

Obese (30≤BMI<40)

Severely Obese (BMI≥40)

1999 to 2000 34.0 25.8 4.7 209 in 20001988 to 1994 33.0 20.1 2.9 185 in 19901976 to 1980 31.6 14.4 no data 163 in 1980

U.S. Adult Population (millions)

% of U.S. Adults 1999-2000 Men (BMI≥25) Prevalence

(%)

Women (BMI≥25)

Prevalence (%)Overall Age

(years)67.0 62.0

20 to 34 58.0 51.535 to 44 67.6 63.645 to 54 71.3 64.755 to 64 72.5 73.165 to 74 77.2 70.1

75+ 66.4 59.6Education Level 2001 Obesity (%)Less than high school 27.4

High School 23.2Some College 21.0

College 15.7

Income Level 2001 Obesity (%)Less than $25000 32.5

$25000-$40000 31.3$40000-$60000 30.3

More than $60000 26.8

Trends : Percentage of Overweight, Obese, and Severely Obese Adults in the U.S. 1976-2001

Page 13: Metabical Harvard case study

30%

35%actively trying to

lose weight

15%using drugs

70%

Not Satisfied with Weight

Page 14: Metabical Harvard case study

Had tried and failed to lose weight in past five years

Want to change their behavior to live a healthy lifestyle

Visit health

care50%

Others50%

Women

Visit Health

care30%

Others70%

Men

Visited a health care provider

Page 15: Metabical Harvard case study

Current weight loss in the market..

The level of education

Age

Page 16: Metabical Harvard case study

Focused heavily on both the end consumer (the patient) and the healthcare provider

Marketing Communication Strategy

Advertising

Promotion and Public Relation

Sales Force

Advertising Promotion & PR Sales Force

Page 17: Metabical Harvard case study

Objective:

Raise awareness and educate patients

AdvertisingAdvertising Promotion &

PR Sales Force

CSP’s Direct To Consumer (DTC) Concepts

Losing Weight is Tough Look Your Best

Those Extra 20 Pounds could be Killing You

Included a DTC Television, Online, Radio, Print Media Blitz at the time

of drug’s launch and heavy advertising throughout the first year to

establish the Metabical name

Page 18: Metabical Harvard case study

AdvertisingAdvertising Promotion &

PR Sales Force

Featuring Celebrity Endorser

Target Professional

Medical Community

Push Advertising

(Less than 5% of Total

Marketing Budget)

Advertising Concepts• Give your weight patients

a safe alternatives• Your overweight patients

are dying for help• Introducing Metabical –

Short-term drug therapy and comprehensive support program for overweight patients

Aimed at health care providers

Page 19: Metabical Harvard case study

PromotionAdvertising Promotion &

PR Sales Force

Direct Mail Campaign

• Planned a mailing for 100.000 health care provider (pamphlet and reply card offering a sample)

Viral Marketing Campaign

• The Metabical Challenge• On-line contest

Social Networking Sites and Contestant

Blogs

• Create Buzz about Metabical

If done correctly, social and viral marketing had the potential to be an

extremely valuable, cost-effectife medium

Page 20: Metabical Harvard case study

Public RelationsAdvertising Promotion &

PR Sales Force

Focusing on health issues for overweight patients About $4.3 million would be spent for Public Relations

Firs

t Eve

nt Occur one month before the drug’s launchA roundtable discussion involving prominent through leaders in medical community

Seco

nd E

vent Medical research

symposium that was open to media and to medical professionalsOccur at the same week as the drug’s launch

Page 21: Metabical Harvard case study

Sales ForceTo develop sales scripts and presentations providing

clinical information

Advertising Promotion & PR Sales Force

Visited targeted medical offices four times a year to discuss the drug and provide samples

The Methabical sales team consisted of 32 sales representatives who called on approximately

3.200 medical offices

Page 22: Metabical Harvard case study

Conclusion

Printup knew that poor positioning of the drug could spell disaster

Printup needed to flesh out the optimal segmentation, targeting, and positioning of the drug

CSP had spent in R&D and on FDA trials for Metabical in 10 years and $400 million

Consumer research showed great promise for Metabical

Page 23: Metabical Harvard case study

THE PROBLEMS

Page 24: Metabical Harvard case study

Question• Who was the ideal target consumer?• How should each participant in the decision-making process be

addressed?• How could these participants best be reached?• What was the appropriate message to convey to each one of them?• What was the role of the support program?• What was the optimal rollout schedule for key marketing

communications activities?

Page 25: Metabical Harvard case study
Page 26: Metabical Harvard case study

Identify and Establish Brand Positioning and Values

Plan and implement Brand Marketing Programs

Measure and interpret brand performance

Grow and sustain brand equity

Brand Management Steps

Metabical

Page 27: Metabical Harvard case study

STEP 1. Identify and Establish Brand Positioning and Values

4 W

Competitor

TARGETING

Page 28: Metabical Harvard case study

4W

What :Safe drug for weight-lossHelped with behavior modification & healthier eating habitsCalosera + Meditonan = Dramatic weight-lossIt had a few negative side effects

For whom :Specifically overweight individuals (BMI of 25 to 30)

Why :Proven by clinical researches as a drug which give significat weight-loss than other and you only need 1 pill a dayIt worked in a low-dose formulationIt had approved by FDAreducing stress on heart or liver functions that other weight-loss drugs tended to produce

Againts who :ALLI, XENICAL, Other OTC drugs (TrimSpa, Xenadrine EFX, CortiSlim, One-A-Day), herbal or dietary supplements

4 W METABICAL

Page 29: Metabical Harvard case study

Competitors

Page 30: Metabical Harvard case study

Head to Head Competitor

• Alli

• Xenical

Others Competitor

• Herbal supplements products

Page 31: Metabical Harvard case study

POP and POD(in this case with alli)

Point Of ParityCategory POP• Weight-loss drugs• Approved by FDA• Have some side-effect (associated

with excess fat & calories)Competitive POP• Few negative side effects• Worked in low-dose formulation

Point Of DifferencesCategory POD• Less severe of gastrointestinal

discomfortCompetitive POD• Weight-loss drug approved by FDA

specifically for overweight individual

• contain ‘calosera’ + ‘meditonan’ = dramatic weight-loss

• Average course of treatment = 12 weeks

Page 32: Metabical Harvard case study

SEGMENTING and TARGETING

Page 33: Metabical Harvard case study

Demography 17 until 70 years old education level : less than high school, high school,

some collage, collage income level : $25,000 - $80,000+

Geography urban and rural people

Behavior : Choose drugs to lose their weight Choose herbal to lose their weight Like sport Loyal to brand Value oriented Health treatment oriented Price sensitive Choose drugs based on advice Check their healthy if there is only damage

Psychography :People who want to look like a movie starPeople who want to be healthierPeople who want to wear the skinny jeansPeople who want to lose weight with easy wayPeople that fine in the way they arePeople with BMI’s score : overweight (25-30), obese (30-40), severely obese (over 40)

Demography25 until 65 years old

Collage$25,000 ++

GeographyUrban people

Behavior Choose drugs to lose their weight Like sport Loyal to brand Value oriented Health treatment oriented Choose drugs based on advice

PsychographyPeople who want to be healthierPeople with BMI score of 25-30

PRIMARY TARGET

Page 34: Metabical Harvard case study

Doctor

• specifically for physicians/ doctors, interlace cooperation with those who already have credibility , so that they can be one of brand endorser of our products. This will facilitate the stage of marketing communications

SECONDARY TARGET

Page 35: Metabical Harvard case study
Page 36: Metabical Harvard case study

Perceptual Mapping

OTC weight loss drugs approved (dietary supplement)

Low m

edical riskH

igh

med

ical

risk

Approved by FDA: weight loss drugs

Metabical

Page 37: Metabical Harvard case study

Weakness :Gastrointestinal discomfort when users consumed high levels of fat and calories.New player in dietary supplement

Opportunity :65% of the entire adult population categorized as overweight, obese and several obese.Overweight is the 2n

d

leading cause of preventable death in USSocial stigma for overweight people in USBad experience of Alli and Xenical effects-

Threats :Competition from Alli, Xenical and Herbal supplementsBad experience of dietary drugsLow awareness from consumersOpportunity for new entry players.

SWOT

Page 38: Metabical Harvard case study

Positioning Statement Choices

Because of it had approved by FDA as a safe drugs with prescription and suggested by clinical researches.

For men and women who concern about their over weight

Which gives the most dramatic weight-loss, safe drugs and helping you to make a healthy life

Metabical is a weight-loss drug with prescription that only consume 1 pill a day

Page 39: Metabical Harvard case study

Positioning Statement

“HEALTHY DIET MEDICINE FOR HEALTHY LIFE”

Page 40: Metabical Harvard case study

STEP 2. Plan and implement Brand Marketing Programs

Page 41: Metabical Harvard case study

ObjectivesModes Impleme

ntMeasureAdjust

Stage of Brand Communication

Page 42: Metabical Harvard case study

Objectives

Messages :For Consumers :

Measure your BMI, go to recommended doctors and get your prescription

For Doctors :It’s all about quality products

Building Brand Equity of Metabical

Page 43: Metabical Harvard case study

Modes

Visual : TV adsNon visual : radio, campaign

Traditional : sales promotion, event sponsorshipNon traditional : mobile marketing, telemarketing, social media

Paid : TV ads, radio, Non paid : social media marketing

Local : TV ads, radio

Page 44: Metabical Harvard case study

Target Audience

Demographic Psychographic Distribution point

Media reach

Male and Female ages : 25 – 65 Urban people

People who want to be healthier

People who want to have proportional weight

Pharmacy Drug store

TV (main)MagazineRadioMobileSocial network

Male and Female doctors

People who want to look best

Medical office Sales representative

• Primary

• Secondary

Modes

Page 45: Metabical Harvard case study

Implement

4P

Product Metabical is a weight-loss drug

with prescription that only consume 1 pill a day

Promotion ATL and BTL campaign

Place Pharmacy and Drug store

Price $4.5 / pill

Page 46: Metabical Harvard case study

Marketing Communication Strategy PlanImplement

Above The Line Goals : To introduce metabical; To communicate the proper positioning of Metabical; inform the benefits of Metabical;To attrack the attention from target market.

1. Launch the “Loosing Weight is Tough” campaign invite the doctors to come in doctor’s conference about Metabical talk show for consumers about overweight brand endorser conference about health and overweight

2. TV commercial

3. Radio

Page 47: Metabical Harvard case study

Above The Line Goals : To introduce metabical; To communicate the proper positioning of Metabical; Inform the benefits of Metabical;To attract the attention of target market

5. Print ads

4. Billboard

7. Mobile Clinic and Sport Events

8. Magazine/ Newspaper

Page 48: Metabical Harvard case study

Below The Line Goals : To communicate the proper positioning of Metabical;

Inform the benefits of Metabical

3. Email marketing

2. Social media marketingFacebook & Twitter

1. Personal sellingSPG & Booth event

4. E-advertisement E-solution (Web) Health care articles

5. Create Contest “Miss Metabical”

6. Buzz Marketing

Page 49: Metabical Harvard case study

Timeline ATLNove

mber

2008

Decem

ber

2008

Januar

y

2009

Februa

ri

2009

March

2009

April

2009

May

2009

June

2009

July 2009 August

2009

Septemb

er 2009

October

2009

Novemb

er

2009

Decem

ber

2009

Creating Working

Prototype

Launch Campaign

Talk show

Conference

TV ads

Radio

Magazine

Billboard

Print ads

E-advertisement

Mobile Clinic and

Sport Events

Page 50: Metabical Harvard case study

Timeline BTL

Nove

mber

2008

Decem

ber

2008

Januar

y

2009

Februa

ri

2009

March

2009

April

2009

May

2009

June

2009

July 2009 August

2009

Septemb

er 2009

October

2009

Novemb

er

2009

Decem

ber

2009

Creating Working

Prototype

Buzz Marketing

Personal Selling

Social Media

Email Marketing

Mobile Marketing

Contest “Miss

Metabical”

Page 51: Metabical Harvard case study

FINANCIAL CALCULATION AND CONTROLS

Measure Adjust

Page 52: Metabical Harvard case study

Survey Result

Year

% of U.S. Adults US Adult Population

(million)Overweight Obese Severely Obese

2008* 35.4 31.5 6.5 230 in 2008

1999 - 2000 34 25.8 4.7 209 in 2000

1988 - 1994 33 20.1 2.9 185 in 1990

1976 - 1980 31.6 14.4 - 163 in 1980

Overweight population in 2008 81,420,00070% were not satisfied with their weight 56,994,00035% were actively trying to lose weight 28,497,00015% were comfortable using drugs 12,213,000

12% interesting with Metabical 9,770,400

Page 53: Metabical Harvard case study

Customer Analysis

Potential customer interesting in Metabical: 9.770.400

Total acquiring assumption: 70%: 6.839.280

Per day usage : 1 pillPer package usage : 84 daysPer customer usage : 84 pillsCustomer spending per package : $4.5 * 84 = $378

If a customer has an income of $25000/year, then it’s only takes 6% of income/month for 3 months

Per pill price : $4.5

Page 54: Metabical Harvard case study

Potential revenue 2,297,998,080Marketing cost 23,146,000RnD and FDA cost 400,000,000Production and Other Cost 1,148,999,040

Potential Profit $725,853,040

So, in every dollar spent in marketing cost

would gives $31.36 profit for Metabical

Price / Pill (doctors) : $4Profit Margin : 50%Profit / Pill : $2

Financial Calculation

Page 55: Metabical Harvard case study

Controls

1 sales representative for 100 medical offices

Build relationship with doctors

Discussion about Metabical every 3 months

Insentives for doctors

Page 56: Metabical Harvard case study

THANK

YOU