Executive Summary
The case was set to occur in 2008 and entails a product called Metabical, which is an innovative drug prescribed for weight loss, and Cambridge Sciences Pharmaceuticals (CSP) anticipates it to be approved soon. The drug is programmed to be approved by the Food and Drugs Authority (FDA) within a year, upon, which it may be the only drug in the market prescribed for causing weight loss in people who are moderately overweight and have a BMI of 25 to 30. Barbara Printup, the senior marketing director for CSP is in charge of developing the positioning and marketing approach for the launching of Metabical in the market. However, to effectively and efficiently position the drug for success in the market, Printup will have to do a detailed analysis of the targeted consumers comprising weight, age, income, and educational level, and how they may be marketed to them effectively. Nonetheless, CSP has taken 10 years and spent $400 on research and development and FDA trials. The company has given a large marketing budget for Metabical and any inferior positioning and marketing approach might lead to disaster in this intensely competitive market.
Company Background
CSP is a global medical corporation with its headquarters in Cambridge, Massachusetts and it focuses on developing, manufacturing, and distributing pharmaceuticals that heal metabolic disorders, gastrointestinal ailments, immune deficiencies, and a range of other health conditions. The company has managed to launch several successful products and annual sales revenue for 2007 surpassed $25 billion. The senior marketing director, Barbara Printup has worked for CSP for over 20 years and has wide experience in marketing pharmaceutical drugs for the firm. Printup was the leading marketer for six diverse drug campaign launches comprising the most recent and successful CSP product, Zimistat.
CSP’s Metabical is the first weight loss drug and thriving clinical trials have shown it to be effective to cause an average weight loss of 15 pounds for moderately obese people just using one pill daily for three months period. The drug is low-risk because of its minor and uncommon side effects, which may entail slight gastrointestinal discomforts such as increased defecation, abdominal pain, and loose stools. The company hopes that with the approval of the FDA together with a successful marketing campaign and launch, Metabical may emerge as the most successful product for CSP.
Key Issues
The Target Market
Getting the target market could be a major issue with this Metabical drug because it is effective with moderately overweight people and not others. Further, the drug works for different age ranges, and the United States (US) has a higher proportion of obese people, which must be considered when determining the targeted market. In addition, the household income range influences the percentages of obese people. Additionally, education level is a key aspect, which affects levels of obesity in the US and turn will influence the finding of a target market.
Support programs
The comprehensive support program will enable users to attain greater outcomes than they would utilize the Metabical pill only. In addition, users will be taught how to accomplish a healthier lifestyle that could contribute to sustainable weight management upon the Metabical pill usage and attaining initial loss.
Marketing communication approach
Barbara Printup has been appointed to lead the new product positioning and marketing campaign. She has to develop and create an effective and appropriate positioning of the product in the market approach. Further, Printup has to manage the budget set for a campaign on how to utilize it and partition it among various means and timelines. The marketing communications should focus on clients/patients who will be utilizing the product. The strategy must communicate with healthcare providers who are responsible for prescribing the drug to their clients. Printup needs to determine the, most effective means to reach groups, patients, and healthcare providers through advertisement.
Basic Analysis
A SWOT analysis is used to analyze CSP performance in the market. The tool is focused on two dimensions, which comprise the external and internal environment. The internal environment entails both negative and positive forces and aspects within the corporation, which account for the weaknesses and strengths part of the SWOT analysis. The external environment is the second that comprises aspects, which occur outside the company, although might still negatively or positively influence the firm.
Strengths for CSP
The following entails the positive features and capabilities of CSP, which give the company a competitive edge over its competitors in the industry. CSP is a well-considered and successful company in the pharmaceutical industry. In addition, Metabical is an effective and safe drug for weight loss among moderately obese people that is soon to have FDA approval. The corporation has a well-experienced marketing team under the leadership of Barbara Printup as the senior marketing director and they have been allocated a large marketing campaign budget.
Weaknesses for CSP
The following are some of the weaknesses of CSP, which give the company derail the company in front of its competitors in the industry’s market. Metabical may lead to minor side effects such as gastrointestinal discomfort or pain when using the drug. Further, the drug is ineffective for those people who fall under a BMI of 30 and above or obese people. The limitations put pressure on its market coverage as it focuses on moderately obese individuals in the US.
Opportunities for CSP
The following are opportunities prevailing for CSP to exploit and capitalize on to attain a competitive edge over its competitors in the pharmaceutical. The company can utilize support programs to gain wider coverage for its consumers. Further, there is potential for healthcare providers to engage Metabical in their coverage schemes. In addition, 65 percent of the adult population is categorized as obese, overweight, or morbidity obese. The company can take the opportunity of the aspect that the product of competitors leads to more side effects than Metabical drug.
Threats posed to CSP
Some of the threat aspects, that may prevent the company from attaining its competitive edge comprises. The company may have the potential for misguiding marketing promises within the sector. In addition, CSP may encounter a potential threat from new entrants into this new market. There is a growing use of herbal weight-loss supplements, which are easily available and cheaper.
Decision and Justification
The Ideal Customer Segment
In the time of clinical trials, it was revealed that Metabical is effectual for moderately overweight individuals with a BMI of 25 to 30. However, the drug was ineffective in causing people in the obese segment of BMI 30 and more to reduce their weight; hence, we may discard the segments from CSP’s Metabical ideal consumer segment. When we focus on our consumer segments, it is critical to ask who is conscious that they should reduce weight, who is ready to make a change in losing weight, and who may afford to pay for the drug to assist them to cut weight.
According to the survey conducted, only 15 percent of respondents were comfortable with utilizing drugs to help them cut weight, 70% were displeased with their present weight, although only 35% attempted to reduce weight. Another significant disparity is there was a significant distinction between men and women who were surveyed. A greater percentage of women were discontented with their weight and had strived with cutting weight in the past, desired to change their conduct to a healthier lifestyle, and are dissatisfied with existing weight-loss products in the market. In addition, a higher percentage of 75% of people who had a college degree as that those with a high school diploma at 45 percent were aware of the health dangers of one being moderately obese.
Further, a group of people aged 35-65 years old was most worried about cutting weight to be healthier. Income played a critical influence as those people surveyed with an income level of $80,000 and more were more prone to purchase Metabical than other income levels. Therefore, the ideal consumer segment would be women who are falling in the overweight category of BMI of 25-30 aged between 35-65 years with a college education level and earning $80,000 and above.
The Right Groups to Communicate with about Metabical Product
The main two groups of people who CSP should convey their information concerning Metabical drug are the users of this product and healthcare providers accountable for prescribing it to them. Both groups are essential to the process as Metabical is not an over-the-counter medicine. Patients will have to attain approval from their healthcare providers and get a subscription to Metabical to use the drug.
Media Best to Reach the Ideal Target
The CSP emphasizes most of its advertising approach toward direct–to–customer sales promotions. It has been a popular tactic for promoting pharmaceutical drugs since 1997 when the FDA released its guidelines. It will assist to enhance awareness of the product and brand among customers who may then be capable of requesting their healthcare providers concerning Metabical products. CSP might use different types of media, for example, radio, internet, newspapers, and social media, and radio to advertise directly to its customers. However, the major media push must be through television coverage because TV ads are both auditory and visual, which assist customers in better comprehending and remembering the product. Further, social media and the internet are better ways of advertising the product as one can highlight the target audience via online algorithms.
Advertising appeal
Since there seem to be two groups of persons we are attempting to reach, the consumers and healthcare providers, I will appeal to each group according to what they regard as vital to them. For healthcare providers, I will emphasize drug safety and its effectiveness as it should be approved by FDA. Besides, more emphasis will be on the support program, which will accompany metabical. I will explain the tools offered in a support system, which will help by encouraging product users to proceed with a healthy lifestyle after metabical usage. It will be useful to health providers since their aim is for patients to have lasting health other than caring about patient fitting in some clothes or their appearance.
Besides, the customer segment will need a tailored advertising appeal. The factors, which matter to customers, involve things such as safety, effectiveness, cost, and ease of use. To further customize the advertising appeal, the ideal consumer segment being women in the overweight segment should be considered. Most of them range from 35-65 years old, have a college education, and earn over $80,000. This will assist us to assess the three initial conceptions of CSP for the DTC advertisement. The first considers “Looking best” and the way metabical usage will make you more appealing. While it might be helpful for some target audiences, many consumers are more concerned about their health than their appearance. The other ad notion focused on consumer education regarding overweight health concerns saying, “Extra 20 pounds might kill you.” However, if the perfect target segment mainly entails college-educated persons with an awareness of their health issues, the tactic might be redundant. Therefore, I think the best idea for an advert might be; “weight loss Journey seems tough when you do it alone” then it elaborates how metabical will assist you in your journey for a healthier and happier life. I believe the ad will be successful for this target audience since there are people with awareness of their health issues and actively attempting to lose weight but struggling on their own.
Summary
The pharmaceuticals of Cambridge sciences have invested $ 400 million and ten years in research& development for its drug metabical of weight loss. Due to the huge investment, CSP seems to be counting on a more successful launch with sustained lasting within the market. Having the approval of the FDA that this drug is effective for weight loss in persons regarded as overweight with BMI 25-30; its metabical has attained the goal. Although the product demand must be high, its poor strategy of the positioning might have disastrous outcomes for the firm. The strong strategy formation seems to involve defining and knowledge of the target segment, making a decision on the way of reaching them, and determining better advertising appeal. This will position Metabical and CSP in a better place to witness the successful launch while sustaining its future success.
