Metabical - Positioning and Communications Strategy

METAHBICAL Positioning and Communication Strategy for a New Weight-Loss Drug 

Let ’ s Calculate Our

!

B M I BMI = kg m2

CALCULATE : Does your HIPS = ½ your WEIGHT ??

Overweight Adults in US

Health Issue

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§ 65% entire adult population 

overweight, obese or severely obese

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§ Overweight number of serious health complications (2nd leading cause pf preventable death in US)   

Social Issue

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§ stereotype : Overweight = lazy & self-indulgence 

Weight-Loss Drugs NO PRESCRIPTION - DRUG OPTION SPECIFICALLY FOR THE OVERWEIGHT SEGMENT !

plethora of over-the-counter weight-loss existed, yet ONLY “alli” had been approved by the FDA !

**

Reduced strength version of Xenical Users took 1 pill with each meal Negative Side - Effect : gastrointestinal conditions  loose stools, increased defecation, incontinence & abdominal pain ** side-effect worsened when the patient’s diet included too much fat !

FDA reviewing 30 reports of liver damage, including 6 - cases of liver failurein patients who had taken Alli and Xenical between 1999 & 2008

Other OTC Weight-Loss 

e.g :

hoodia, chromium, gree-tea extract, conjugated linoleic acid, bitter orange, etc.

FDA

categorized them as : HERBAL or Dietary Supplements  UNREGULATED BY THE AGENCY

NOT require stringent FDA Testing & Approval

CAN NOT DISCOVER HEALTH COMPLICATION OF THEIR USE BEFORE THE

FDA ban purchase sale of “ Ephedra ” 

LINKED TO SEVERAL CASES OF SUDDEN CARDIAC DEATH & OTHER

METABICAL (Meh-tu-bye-cal)  1st : prescription drug approved by FDA which targeting “overweight” segment  Combined by : CALOSERA + MEDITONAN  Plus “controlled-released feature” only 1 pill be taken per day  Worked in a low-dose formulation reducing stress on heart / liver function

C lin ica ltria ls p ro v e d : e ffe ctive in a ch ie vin g sig n ifica n t w e ig h t-lo ss fo r o ve rw e ig h t A ve ra g e co u rse o f tre a tm e n t la stin g 1 2 w e e k s Fe w n e g a tive sid e -e ffe ct  h e lp e d w ith b e h a vio r m o d ifica tio n & h e a lth ie r e a tin g h a b its N O T ve ry e ffe ctive in h e lp in g in d ivid u a ls w ith B M Is o f 3 0 o r g re a te r lo se w e ig h t  N O T re co m m e n d e d fo r th is g ro u p

Market Research

Their current weight..

Visited a health care provider..

Want to change their behavior to live a healthy lifestyle..

Had tried and failed to lose weight in past five years

Current weight loss in the market..

The level of education

Age

The level of income..

The Problem

Barbara Printup Senior director of marketing for CSP

Segmenting Targeting Positioning Who was the ideal target consumer ? How should in the decision-making process beaddressed ? 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 ?

Advertising Concept 

DTC ads

• Losing weight is tough • Look your best • Those extra 20 pounds could be killing you

Health Care Provider

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• Give your overweight patients a safe alternative… Introducing Metabical – a clinically proven weight-loss drug. • Atherosclerosis, coronary artery disease…Introducing Metabical – FDA approved weight-loss drug. • Empower your patients to lose excess weight, change their

Segmenting O V E R W E IG H T IN D IV ID U A L S ( BMI from 25 to 30 )

Targeting  

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End-User  ADULT

(aged from 18 to 70 years old)

Health Care Providers 

POP & POD Point Of Parity

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• Weight-loss drugs • Approved by FDA • Have some side-effect (associated with excess fat & calories) 

Point Of Differences

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• Weight-loss drug approved by FDA specifically for overweight individual • contain ‘calosera’ + ‘meditonan’ = dramatic weight-loss • Less severe of gastrointestinal discomfort • Average course of treatment = 12

Perceptual Map Approved by FDA: weight loss drugs

Alli Low medical risk

Xenycal High medical risk

TrimSpa& Others

Hoodia, green tea extract & others OTC weight loss drugs approved (dietary supplement)

4-W WHY

FOR WHOM

üreason for a : Overweight individuals ( 25 < -Calosera + Meditonan = Dramatic weight-loss BMI < 30 ) -Proved by clinical trial  effective in achieving significant weight-loss üreason for b & c : MEHTUBICAL as -Worked in low-dose Superior Weight-Loss Solution formulation -Controlled-release feature = 1 pill / day -Approved by FDA üin weight - loss drug : ALLI, XENICAL, generic-drugs, Other a)Superior prescription drug to any OTC drugs, Weight weight-loss solution on the Watcher market. b)Few negative side effects. üin overweight c)Helped with behavior modification segment : NONE ! & healthier eating habits.

AGAINST WHO

WHAT

Positioning Statement For you who troubled with overweight problem Metabicalis a prescription weight-loss drug Which gives the most superior weight-loss solution, safealternative drugs and even helping you to make a healthy life Because of it had approved by FDA as a safe drugs, proven by clinical researches as a drug which give significat weightloss than other and you only need 1 pill a day 

OurEvaluation ! • SEGMENTING they also need to approached the “OBESE” group !

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OurEvaluation !

• SEGMENTING 

they also need to approached the “OBESE” group ! Exhibit 1 :

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OurEvaluation ! • Targeting they also need to target those who use … as a way to loose excess weight and target not only health-care provider but also …

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OurEvaluation !

• Positioning they’re just fine !    

Marketing Communication Strategy What was the optimal rollout schedule for key marketing communications ? Does the estimate retail price could help company get profit in 10 years ahead ?

Objectives

Building awareness of METABICAL, the weight-loss drug – a new product of CSP oSuccessful with initial consumers (a successful product launch) optimal STP, success marketing communication oRecoup the massive investment oLong-term, steady demand

Modes

ADVERTISING • Direct-to-Consumer (DTC) advertising • 3 initial concepts: – Losing weight is tough – Look your best – Those extra 20 pounds could be killing you.

PROMOTION • Campaign aimed at both the health care providers and the end consumers. • Printup viral marketing campaign: “The Metabical Challenge” • Printup is the most effective way to utilize this mix element and how large a role it should play in the communication strategies.

PUBLIC RELATION • It is not only well-timed pre launch and at-launch press releases, but also two high-profile medical education events and a series of podcasts aimed at physicians. •

SALES FORCE • A CSP sales team responsible for two gastrointestinal drugs was directed to detail Metabical to health care providers in their territories and add it to their existing portfolios. • These resp focuses on offices that were the most geographically accessible and responsive to drugrep visits. •

How Many is Enough ? Information :

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R&D and FDA expenses = $ 400,000,000 Marketing budget (FY 01) = $ 23,146,000 Estimated retail price = within $3 to $5 User  1 pill / day Treatment  12 weeks = 84 days 

BEPsalesTOTAL COST = TOTAL REVENUE= TOTAL TOTAL COST REVENUE $ 400,000,000 + $23,146,000 = (84x1x$3) (X) $423,146,000 = 252X $ 1 , 679 , 150 = X

How Much is Enough ? Information :

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R&D and FDA expenses = $ 400,000,000 Marketing budget = $ 23,146,000 Estimated retail price = $3 , $4 or $5 User  1 pill / day Treatment  12 weeks = 84 days US adult population (2008) = 230,000,000 persons 

2000 2008

209 Million 230 Million

34% 37.5%

71.06 Million 86.25 Million

* Asumpption : US obese - adult population in 2008  0.05%

* From Exhibit 2 , if our assumption what happen in focus group also happen in real-world then we can get that : ü 35% actively trying to lose weight  35% x 86.25 Million peoples = 30 Million peoples ü 15% of those actively using drugs to lose weight 15% x 30 Million peoples = 4.5 Million peoples * If we can captured half of those as our initial consumer in the first year, then : initial customers = ½ * 4 . 5 = 2 . 25 Million peoples . Now, we can calculate Profit : üPROFIT Price X Sales = $3 X (84 x 2.25 Million) = $ 567 Million üEFFECTIVENESS Profit : Marketing Budget = $ 567M : $23.146M = $ 24.49

FOR EVERY $ 1 Marketing Budget GENERATE $ 24.49 PROFIT

THANK YOU !