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  • April 2010
  • Case
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Metabical: Pricing, Packaging, and Demand Forecasting Recommendations for a New Weight Loss Drug

By: John A. Quelch and Heather Beckham
  • Format:Print
  • | Language:English
  • | Pages:9
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Abstract

Metabical is a new weight loss drug from Cambridge Sciences Pharmaceuticals intended for moderately overweight individuals. In anticipation of final FDA approval, the senior director of marketing, Barbara Printup, prepares for the product launch and must make several critical decisions. First, she must select the optimal packaging size for the drug which typically requires a 12-week course of treatment. Next, she must determine the appropriate pricing. Since most insurance companies do not cover weight-loss medications, price has a direct impact on the sales forecast. To establish the initial demand forecast, Printup considers three approaches based on different assumptions. Her final recommendations must consider long term profitability and meet the company's desired return on investment.The case includes a quantitative assignment for students.

Keywords

Return On Investment; Forecasting; Pricing Policies; Demand Planning; Marketing Strategy; Price; Consumer Behavior; Investment Return; Forecasting and Prediction; Product Launch; Planning; Brands and Branding; Pharmaceutical Industry

Citation

Quelch, John A., and Heather Beckham. "Metabical: Pricing, Packaging, and Demand Forecasting Recommendations for a New Weight Loss Drug." Harvard Business School Brief Case 104-183, April 2010.
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About The Author

John A. Quelch

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Related Work

    • April 2010
    • Faculty Research

    Metabical: Pricing, Packaging, and Demand Forecasting Recommendations for a New Weight Loss Drug (Brief Case)

    By: John A. Quelch and Heather Beckham
Related Work
  • Metabical: Pricing, Packaging, and Demand Forecasting Recommendations for a New Weight Loss Drug (Brief Case) By: John A. Quelch and Heather Beckham
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