Metabical Case Questions

Metabical: Pricing, Packaging and Demanding Forecast for a new Weight-Loss Drug

1. How does Metabical compare to current weight-loss options?

2. What are the pros and cons of the forecasting methods presented by Printup? If you had to estimate demand for this product, how would you go about it? What would your demand (unit) forecast look like for the first five years?

3. What considerations should be taken into account when making decisions about package count? What package size would you recommend?

4. What pricing strategy approaches would you suggest Printup explore? What are the advantages and disadvantages of each strategy? What price would you recommend?

5. What impact does your pricing decision have on profitability? What is the ROI over the first five years for each of the pricing strategies identified?

Pricing was a main concern with this product and several scenarios were run to try and project and forecast where the pricing would make the best return on investment (ROI). The packaging was also something Printup had to consider when preparing this product. The main issue is how to break up the 12 week supply, if at all, to get the best sales results.

The packaging was the first concern we decided to take care of. We decided we should sell the weight loss drug in three four-week packages. We decided upon this since there are many advantages to this while minimizing disadvantages. First, we decided that the four week packaging was at the specific point where the consumer did not have to spend too much money to buy it, yet got invested in the product enough that they would come back to buy the second and third portions.