1. Table Of Contents
1.0 Introduction
2.0 Executive Summary
3.0 Situation Analysis
3.1 Identification Of The Problem
3.2 Market Analysis
3.3 SWOT Analysis
3.4 Target Market
4.0 Marketing Communication Strategy
4.1 Marketing Communication Plan/Objectives
4.2 Marketing Budget
4.3 Schedule for Key Marketing Communication Activities
4.4 Promotional Strategies
4.4.1 Advertising Strategies
4.4.2 Promotion and Public Relations
4.4.3 Sales Force
4.4.4 Comprehensive Support Program
4.5 Product Strategies
4.6 Distribution Strategies
4.7 Pricing Strategies
4.7.1 Potential Customer
4.7.2 Sales Forecast
4.7.3 Return on Investment (ROI)
5.0 Conclusion
1

2. 1.0 INTRODUCTION
Cambridge Science Pharmaceuticals (CSP) was an International health care
company with a focus on developing, manufacturing, and marketing products that
treat metabolic disorders, gastrointestinal diseases, immune deficiencies, as well as
other chronic and acute medical conditions. The company captured over $25 billion in
sales in 2007. Barbara Printup is the senior director of marketing of CSP who is
responsible for the most successful product by CSP, Zimistat. CSP had assigned
Printup to be in-charged of the upcoming U.S product launch of CSP¶s newest
prescription drug, Metabical.
Barbara Printup, Senior Director of marketing for Cambridge Sciences
Pharmaceuticals (CSP) will be the person who is responsible in the product launch of
Metabical which scheduled for January 2009. It was now February 2008, and
Printup¶s first order of business was to develop a viable positioning strategy and
associated marketing communications plan for Metabical.
2.0 Executive Summary
Cambridge Science Pharmaceuticals (CSP) came out with the first prescription drug
approved by the FDA specifically for overweight individuals called Metabical. The
majority of Metabical trials participants reached their weight-loss goals by week 12.
Although pricing had not been finalized, CSP estimated the retail price for the drug
would be approximately $3 to $5 per day, with the average course treatment lasting
12 weeks.
In this report, we will conduct an analysis for CSP¶s product, Metabical starting from
the analysis of the industry. We will then elaborate the issues regarding overweight
and obesity in the United States and analyse the market survey done by the
company regarding overweight issues in order for us to decide which is the best
market segmentation that we should target.
The second focus in this report would be the positioning strategy which we will state
the point of parity and point of differences of Metabical and come out with the
positioning strategy and target market.
The third focus will be the the SWOT analysis of the product which we will state the
strengths, weaknesses, opportunities, and threats of Metabical which lead us in
deciding which marketing communication strategy need to be taken next.
Finally, we will discuss on marketing communication strategy which best suit with the
product so that CSP able to communicate well with the target consumer.
To decide the best positioning strategy and marketing communication plan, CSP had
spent so much time and money in R&D and on FDA trials for Metabical. Printup was
well aware that in order to recoup this massive investment, the drug need not only a
successful launch, but also long term, steady demand. If Metabical were not
successful with initial consumers, credibility of the drug would be in question and
FDA approval would mean little.
Printup still needed to flesh out the optimal segmentation, targeting and positioning of
the drug, Then she could move on to assessing her current marketing
2

3. communications strategy and developing a timeline for the key activities. The case
study had led us in analysing and deciding who was the ideal target consumer? How
should each participant in the decision-making process to be addressed? How could
these participant best be reached? What was the appropriate message to convey to
one of them? What was the role of the support program? What was the optimal
rollout schedule for the key marketing communications activities?
In this report, Printup will provide all recommendations for the successfull marketing
communication strategy and to ensure the long-term steady demand for Metabical.
3.1 IDENTIFICATION OF THE PROBLEM
OVERVIEW OF OVERWEIGHT ISSUES IN THE UNITED STATE
Excess weight is considered a public health crisis in the U.S, with
approximately 65% of the entire adult population categorized as overweight,
obese, or severely obese. Being overweight is related to a number of serious
health complications, and according to the American Obesity Association in
2005, ³the second leading cause of preventable death in U.S. In addition to
health risks, overweight individuals endure a significant social stigma as well
as outright discrimination. Laziness and self indulgence are common
stereotypes associated with this group. Many overweight people feel like
social outcasts. The professional life of an overweight individual could also be
negatively affected, as excess weight has been found to adversely influence,
hiring decisions, wages, and promotions.
Researchers and health care professionals measure excess weight using the
Body Mass Index (BMI) scale. The BMI scale, which calculates the
relationship between weight and height associated with body fat and health
risk, is appropriate for both men and women. It has three BMI categories of
excess weight for adults:overweight (25 to 30); obese (30 to 40); and
severely, or morbidly obese (over 40).
According to CDC National Centre for Health Statistics in 2002, 65% adults
age 20-74 are overweight. Overweight can give negative impact to the
people¶s life such as coronary heart disease, endometrial, breast and colon
cancer, gynecological problem, stroke, liver disease, sleep apnea and
respiratory problems, hyper tension and many other diseases.
People are getting fatter almost everywhere in the world. In 2005, 1.6 billion
adults in the world are overweight while 400 million are obese. The World
Health Organization predicts there will be 2.3 billion overweight adults in the
world by 2015 and more than 700 million of them will be obese.
3.2 MARKET ANALYSIS
Marketing survey
An extensive market survey had been conducted in 2007 which included
1,000 men and 1,000 women age ranging from 18 to 70 with BMIs of 25 to
29.9 from various socioeconomics levels. The objective of the market survey
is for CSP to understand the consumer¶s behaviour and what they actually
want.
3

4. At first 70% of respondents surveyed were not satisfied with their current
weight.35% 0f them said were actively trying to lose weight but just 15% of
them mentioned that were comfortable using drugs to help their weight-loss
goals.
When we described the benefits of Metabical to participants, 12 % of them
immediately ask us to make an appointment with health care providers and
request a prescription.
In terms of satisfaction with their current weight in each gender, 75% of
women and 65% of men mentioned were dissatisfied with their current weight
and appearance, whereas 50% of women and just 30% of men visited a
health care provider for annual physical test. Base on survey which
respondents mentioned 55% of women and 40% of men wanted to change
their behavior to live a healthy lifestyle. While 60% of women and 30% of men
said tried and failed to lose weight in past five years. The survey results reveal
65% and 35% of respondents were dissatisfied with current weight-loss
options on the market for women and men respectively. In our data pool
educational level of respondents as they mentioned was that 75% hold a
college degree and 45% hold high school diploma and they were aware of the
health risks associated with being moderately overweight.
Based on respondents¶ report, 65% of 18 to 35 years old respondents said
that they wish to lose weight to look better and the rest (35%) of the same age
group respondents said that they wish to lose weight to improve their overall
health. While respondents with 35 years old and above have percentages
40% answers for good looks and 60% for better health.
According to survey results 5%, 11% and 20% of respondents who have
income level less than $40000, between $40,000 and more than$80,000
respectively mention that they would be willing to pay ³out of pocket ³for a
prescription weight-loss drug.
Therefore according to the survey there is a need for a better weight loss drug
which is proven and safe to lead a health lifestyle.
Market Research
Based on statistic on adult population in United States between 1976 and
2000 obviously we can see the percentage of obese and overweight steadily
increasing. The percentage of overweight population who had BMI between
25 and 30 which categorized in overweight group was 34% in year 2000.while
in the same year 25.8% of U.S. populations categorized as obese and 4.7%
into severely obese. Also the percentage of obesity were rise steadily with
age in both gender with the highest occurrence among men age 65 to 74 and
women age of 55 to 64 and with overall more prevalence in men rather than
women. As we can see the percentage of obese had inversely related with
education level and income level. The highest obesity percentages were in
less than $25,000 with 32.5% and level of education less than high school
with 27.4%.
Through this experience and strong need to cater the moderately overweight
people, health care providers saw their potential customers in them who want
to lose unhealthy pounds. Health care providers went ahead to produce the
drug and recommend them to use it besides getting help from diet and
4

5. exercise schedules. Based on reports which were obtained from health care
providers one of their major concerns about weight-loss drug was that
patients would get back weight when they stopped taking pills.
We try to achieve psychographic segmentation of overweight. According to
research which was done on females, they have verity of aims to lose weight.
In age 18 to 30 with high school education and under $40000 income have
low self-esteem and unrealistic expectation to look like a movie star. And in
age group between 25 to 40 with college education and income level $50,000-
$80,000 said willing to alter current behavior to get back to their old physic.
While age 35 to 65 with college education plus and more than $80,000
income mentioned ready to make change to be healthier. In age group 45 to
65 with some college education and income $40,000 to $60,000 want to lose
weight but if it is easy. In age group 40 to 65 with some college education and
income $30,000-$50,000 they accepted their overweight and they don¶t want
to change the lifestyle.
Printup also commissioned a study to analyse psychographic segmentation of
overweight individuals. The study revealed that women demonstrated the
most distinct segmentation. Out of five psychographic profiles, we feel that
CSP should focus into two of it segmentation which is as follows:
SEGMENT DESCRIPTION TYPICAL DEMORGRAGPHIC
PROFILE
³I want to be healthier´ Want to lose weight to feel Age 35 to 65, college
better and live longer. education plus, household
Knowledgeable about the income $80,000+
importance of nutrition and
exercise. Ready to make a
change.
³I want to wear my skinny Focused on gold of Age 25 to 40, college
jeans´ reclaiming former weight. education, household income
Motivated and willing to alter $50,000 - $60,000
current behaviour.
To support the above findings, in February 2008 focus group study revealed
their dissatisfaction with current weight-loss options and the desire for a
proven and safe way to drop excess weight. This focus group participants
also expressed the desire for a prescription±strength drug with FDA approval
and clinical result to back up weight-loss claim.
5

6. 3.3 SWOT ANALYSIS
SWOT Analysis is a Strategic Planning method that is used to evaluate the
strengths, weaknesses, opportunities and threats of a business. It involves
monitoring the internal and external marketing environment.
Table 1 : SWOT Analysis
STRENGTHS WEAKNESSES
i. FDA approval i. Negative side effect-gastrointestinal
ii. Safe and effective in achieving discomfort.
significant weight loss. ii. Not effective for individual with
iii. Less harmful compared to other BMI>30
products.
iv. One pill per day
v. Average course treatment lasting12
weeks
vi. Combination of Calosera and
meditanan created dramatic effect for
weight loss.
vii. Strong and Comprehensive marketing
strategy
viii. Experience marketing and R&D team
ix. Allocate substantial amount of money
in marketing budget
OPPORTUNITIES THREATS
i. Comprehensive support program i. FDA imposed stringent regulation
ii. Health care plans to include Metabical due to negative side-effect cases.
in their prescription drug program ii. Increasing herbal / dietary
iii. 65% of adult population categorized as supplements
over weight, obese or severely obese. iii. Deceptive marketing claims.
iv. No prescription ± drug options for
overweight segment (BMI 25-30)
available in 2008 except drug Alli
approved by FDA
v. Market research indicated of high
indication of people wanting to loss
weight.
3.3.1 STRENGTH
CSP believed that its prescription drug, Metabical, is far more superior than
any weight-loss solution on the market because Metabical would be the first
prescription drug approved by the FDA specifically for overweight individuals
(i.e., those with BMI of 25 to 30).
The combination of calosera and meditonan produced dramatic weight loss
for overweight individuals and it is find to be less harmful as compared to
other weight loss drugs. It worked in a low dose formulation, thereby reducing
stress on heart or liver function than other weight loss drugs tended to
produce.
Metabical also contained a controlled release feature that required only one
pill to be taken per day with average course of treatment lasting 12 weeks. It
also helps in changing people behavior to a healthier eating habits.
CSP is an international company with a strong and experienced marketing
and R&D team. CSP has developed a comprehensive marketing strategies
and have allocated substantial amount of money in marketing budget.
6

7. 3.3.2 WEAKNESSES
Despite of its strength, Metabical has few negative side effects associated
with excess fat and calories in the diet. It occurs when users consumed high
level of fat and calories. These side effects were similar to the gastrointestinal
discomfort caused by Alli, only less severe.
Metabical¶s formulation however is not very effective in helping individuals
with BMIs of 30 or greater and was, therefore, not recommended for this
group.
3.3.3 OPPORTUNIES
Excess weight is considered a public health crisis in the U.S and
approximately 65% of the entire adult population categorized as overweight,
obese or severely obese. With these large population, it creates an even
bigger market share for Metabical. In addition, no prescription drug option
specifically for the overweight segment (BMI of 25 to 30) were available in
2008 except for drug Alli had been approved by the FDA for weight loss used.
Meaning there will be no strong competitor for Metabical for the time being.
From the market survey and market research conducted by CSP, it showed
high indication of people actively wanting to lose weight and live a healthy life
style with comprehensive support program will enable individuals to achieve
better results than they would from the pill alone. In addition, the support
program would teach lifestyle skills for healthy weight maintenance after the
initial weight loss was achieved.
3.3.4 THREAT
The drug industry faced several safety concerns with regard to weight-loss
drugs and had been accused of deceptive marketing claims that dempened
enthusiasm for the products. This deceptive marketing claim had damaged
the industry credibility and to regain consumer¶s confidence would be another
big challenge to the drug industries.
The rising in the numbers of dietary supplements and herbal products had
worsened the situation due to its unregulated condition by the FDA and the
products negative side effect such as sudden cardiac death and other serous
health risks had reduse people confidence in weight loss drugs.
3.4 TARGET MARKET
In developing a viable positioning strategy in order to determine the right
target market, CSP had conducted an extensive market survey of overweight
individuals in the year 2007. Under the market analysis, Barbara Printup also
carried out a study to analyze psychographic segmentation of the overweight
individuals and they found out that women demonstrated the most distinct
segmentation.
Based on these findings from the market survey, market research and the
psychographic segmentation, we suggest that the target market for Metabical
are as the following:
7

8. 1) Specifically for overweight individuals with BMI of 25 to 30.
2) Women with age ranging from 25-65
3) Women with household income between $50,000 - $80,000
4) Women with college education and above
5) Concern with health issues caused by overweight and actively trying
to lose weight
6) Willing to change current behavior and to live healthy lifestyle
4.0 MARKETING COMMUNICATION STRATEGY
The communication strategy of a prescription weight loss drug such as Metabical had
to address all participants in the decision making process.
Therefore, the communication strategy must focus on two main targets firstly, the
Healthcare Providers and secondly direct to consumers who would be prescribing the
medication.
The marketing communication strategy should also address the concern of the
healthcare providers which is µthe patient would regain weight after they stop taking
the pills¶ and to include in the communication process by providing solution through
Metabical and its continuous support program.
As far the end consumers the communication process must address their concern
which is µwant to lose weight to feel better and live longer¶.
The initial Metabical launch budget is as per Table 2 below:
Table 2 : Marketing Budget
YEAR 1
ADVERTISING
Push (Prescriber) $ 1,000,000
Pull (Direct To Customer) $ 12,000,000
--------------------
Total Advertising $ 13,000,000
PROMOTION
Development of Support Program $ 200,000
Lunch & Learn Seminars / Other Promo $ 600,000
Production of Support Program $ 2,000,000
Training / Promotion Materials $ 500,000
Direct Mailing To Health Care Providers $ 200,000
--------------------
Total Promotion $ 3,500,000
PUBLIC RELATIONS
Medical Education Meeting and Event $ 3,500,000
Press Release / Materials $ 800,000
--------------------
Total Public Relations $ 4,300,000
Market Research $ 600,000
Sales Force Allocation $ 1,491,000
Product Management Allocation $ 255,000
TOTAL BUDGET $ 23,146,000
It is also very important for the marketing communication strategy to have the
timeline for the key marketing activities and we proposed the optimal roll out
schedule for key marketing communications activities to be as follows:
8

9. Table 3 : Schedule of Marketing Communication Activities
TIME LINE
Sales Force
Advertising
Road show
To Create Advertising Promotion Continues
Product On Clinical
Brand Branding & Public Support
Launch Information
Awarenes & Image Relation Program
by sales
Knowledge
Pharmacies
Team
YEAR 1
YEAR 2
FEB 2008 JAN 2009
4.4.1 ADVERTISING
A sum of $13.0 million had been allocated for these push and pull
advertising. Direct-to-consumer (DTC) advertising is a new
phenomenon in the drug industry due to the introduction of guidelines
by the FDA in 1997 that opened up the flood gates to the drug
advertisements.
The first year, CSP should aggressively spend on the advertising
activities to DTC in order to create product knowledge and brand
awareness which include television, online (website), radio
advertisements and press conference during the product launch in
January 2009. In order to meet its objective we propose that the
advertisement strategy must go with the tagline ³Losing weight is
tough, You don¶t have to do it alone. Let Metabical and your
healthcare provider start you on the road to a healthy weight and
better lifestyle´.
The Senior Executive of CSP did not agree with the idea of celebrity
endorser but we strongly believe that this celebrity spokesperson idea
is a great idea and able to attract more customers to buy Metabical.
As we know that celebrities have become the trend setter and very
influential in terms of their style of dressing, hairstyle, cosmetic that
they are wearing, their car model and even what they eat. Thus, a
celebrity like Oprah Winfrey can be very influential in attracting more
customers especially when she endorse Metabical in her talk show
program.
Metabical¶s advertising strategy should also target the professional
medical community which is the healthcare provider. For example,
they could create a campaign by print ads in leading medical
publications and interactive ads online related to health issues in order
to raise awareness about the drug and its benefits.
9

10. This advertising concepts which aimed to healthcare provider must go
along with the tagline ³Empower your patients to lose excess weight.
Change their unhealthy eating habits and achieve long term success.
Introducing Metabical short-term drug therapy and comprehensive
support program for overweight patients. It gets results´
4.4.2 PROMOTION AND PUBLIC RELATIONS
The promotion and public relations budget also included campaign
aimed at both healthcare providers and the end consumers. The total
budget allocated for this campaign is $4.3 mil with $1.3 mil was
allocated for promotional campaign in the first year.
Before the Metabical launch, pamphlets and reply card for sample of
support program should be mailed to 100,000 health care providers as
a direct mail campaign. These pamphlets contain information about
Metabical.
The next best campaign that the marketing communication strategy
should focus heavily on is the viral marketing campaign in order to
reach the market globally. This viral marketing involves internet sales,
social network such as facebook, twitter and blogs in order to create
buzz for Metabical. Infact, CSP should set up a team on this viral
marketing campaign in order to reach customers faster and cheaper
globally.
The plan to launch an online contest during Metabical launching day is
a good idea whereby Metabical users would have the chance to
compete who could reduce their BMI¶s by the highest percentage.
Normally in the weight loss industry, people want to see results and
testimonial on the drugs.
` We consider the Public Relations efforts to include pre-launch and at-
launch press release is a good more because it can act as a teaser ad
and to inform the public at large that Metabical is the newly safe
weight loss drug in the market. The roundtable discussion involving
prominent leaders member of media and medical professional in the
medical community and medical research symposium to members of
media and medical professional, is an important strategy because in
order for the weight loss products to be successful, an endorsement
by expert is very likely to increase the confidence level of the
customers.
In addition, the coverage of these high profile events in the leading
news organization shall enhance the marketing communication
strategy of Metabical.
A series of breakout sessions focusing on health issues for overweight
patients shall further strengthening the communication strategy in
product effectiveness and awareness.
10

11. 4.4.3 SALES FORCE
The Metabical sales team consisted of 32 sales representatives who
service approximately 3,200 medical offices. These sales team had
been instructed to give product detail of Metabical to the healthcare
providers.
In order for the sales team to be effective in meeting objective of
creating product knowledge and its benefits, they providing clinical
information and to arrange for a visit to at least four medical offices
per day in order to finish up the 3,200 medical offices which are
already in their data base.
CSP also need to increase the number of their sales force team in
order to cover the other 100,000 healthcare providers which are still
untapped by them. This additional sales force team need to attend all
the inquiries that they might receive after the mailing of pamphlets and
sample to the said 100,000 healthcare providers.
4.4.4 COMPREHENSIVE SUPPORT PROGRAM
The most common problem among the weight loss drug company is
that people will start regaining weight once they stop taking the pill
and in some cases, these people will gain even more weight then their
initial weight.
Realising this issue, CSP planned to create a comprehensive support
program to complement the Metabical pill. Its goal is to enable
individuals to achieve better results than they would from the pill
alone. In addition, the support program would teach lifestyle skills for
healthy weight maintenance after the initial weight loss was achieved.
$200,000 will be spent on the development of the support program
and the cost in Year 1 associated with producing the program is
approximately $2 million. It is recommended that CSP to add this
comprehensive support program in their packaging in the form of a CD
in each pack so as to enhance the ability of Metabical users to reach
and maintain their weight-loss goals.
They can also put it in their website and to other form of social
network. The sales force team also need to include this support
program in their presentation in order to convey its benefits to the
healthcare providers.
It must also be well stated in the pamphlets and flyers which they are
distributing.
4.5 PRODUCT STRATEGY
Metabical is the first prescription drug approved by FDA specifically for
overweight individual with BMI of 25 to 30. Clinical trials proved Metabical to
be safe and effective in achieving significant weight loss for overweight
individuals. The majority of trial participants reached their weight-loss goals by
week 12. Thus, CSP need to decide on the best form of packaging by
considering what is the number of pills that would be included in each pack.
11

12. Packing the whole twelve week supply in one package will cause higher
pricing and it will effect the number of potential customers. Even though the
twelve-week supply will enable the customers to complete the twelve-week
cycle in 3 months in a row but it will limit the potential customers only to those
who can afford the entire medication program with one-time pay. Therefore, it
is advisable to pack Metabical with one pack for four week supply which can
make it affordable for everyone. However, there is risk to this one-month
packaging whereby there will be no guarantee that the consumers will
complete the entire treatment.
As such, it is also suggested to have another packaging with 3 pack for 12
weeks supply and as value added, a CD contain comprehensive support
program is attached to it.
By attaching the comprehensive support program to the 3 pack of twelve
week supply it can definitely attract more customers especially those with
higher income bracket of more than $80,000.
4.6 DISTRIBUTION STRATEGY
Being a prescribed weight loss drugs definitely the distribution channels are
limited to places such as Drug store, healthcare Providers, Specialty Store
such as Watson, Pharmacy such as Guardian and the latest trend is the
Internet Sales.
4.7 PRICING STRATEGY
Pricing is another important factor in determining the success of Metabical. In
order to determine the price for Metabical, first we compare with its closest
competitor which is Alli¶s pricing model. We have to also come up with several
other assumptions such as by assuming that consumers will be ready to pay
more for a prescription drug and generally people trust prescribed drug rather
than the non-prescribed drugs. So, to set higher price for Metabical would not
be a problem and would be acceptable by the consumers. Therefore, we
come-up with price simulation as per Table 4 below:
Table 4: Pricing Simulation
METABICAL ALLI
Estimated Retail Price $3 to $5 Per pill $120 Per Pack / $2.40 Per Pill
Dosage 1 Pill Per Day 1 Pill Per Day
Treatment 12 Weeks (90 Days) 50 Days
ESTIMATED RETAIL PRICE
$2 Per Pill $3 Per Pill $4 Per Pill $5 Per Pill $6 Per Pill
Revenue Per Month $60 $90 $120 $150 $180
Revenue Per Year $720 $1,080 $1,440 $1,800 $2,160
To sell at $90 per month is to low because Metabical is a prescription drug.
To capture a larger group the price should not as high as $150 per month.
$120 per month would be the right price for a four weeks supply.
Based on Table 4 above, we set Metabical price at $120 per month which we
assume would be the right price for a four week supply.
12

13. Pricing strategy is also directly ties with the demand forecast and sales
forecast. Thus, based on Market Survey and Market research finding we
come up with demand forecast as per Table 4 below:
4.7.1 POTENTIAL CUSTOMER
Table 5 : Potential Customer
YEAR POPULATION OVERWEIGHT POTENTIAL USER
(Million) (25 BMI 30) (MILLION)
2000 209 34% 71.06
2008 230 39% 89.70
FROM MARKET SURVEY
12% - Respondents Immediately Make an Appointment With Their Health Care Provider
and Request a Prescription
YEAR 2000 YEAR 2008
71.06 Mill X 12% = 8.53 Mill 89.70 Mill X 12% = 10.76 Mill
Say Only 10% Consumers Can Be Reached In The First Year
8.53 Mill X 10% = 0.85 Mill 10.76 Mill X 10% = 1.08 Mill
From the above demand forecast, we then come up with the sales forecast as
per Table 6:
4.7.2 SALES FORECAST
Table 6 : Sales Forecast
ESTIMATED TOTAL NUMBER OF PACK TO BE SOLD
From : 2.55 Mill Packs (0.85 Mill X 3 Packs)
To : 3.24 Mill Packs (1.08 Mill X 3 Packs)
Consider Price @ $120 Per Pack
CSP WOULD EARN BETWEEN
$306 Mill to $389 Mill
4.7.3 RETURN ON INVESTMENT (ROI)
Table 7 : Return on Investment (ROI)
INITIAL YEAR YEAR YEAR YEAR 4 YEAR 5
YEAR 1 2 3
SALES TURNOVER ($ Mill) (423.15) 347.40 383.88 424.18 468.72 517.94
ACUMULATIVE
CASHFLOW ($ Mill) (423.15) (75.75) 308.13 732.31 1,201.03 1,718.97
RETURN ON INVESTMENT
(ROI) ( % ) -19% 77% 183% 300% 429%
INTERNAL RATE OF RETURN (IRR) : 515%
NET PRESENT VALUE (NPV) : $2,623.65 MILL
PAYBACK PERIOD : 1.27 YEARS
y ASSUMTIONS
- Product Price : $120 Per Pack (For 1 Month Treatment ± 30 pills)
- Estimated Product Sold in Year 1 : From 2.55 Mill ± 3.24 Mill
(Say On Average 2.90 Mill Packs).
- Turnover Increase by 10% Every Year.
- Investment Cost $423.15 Mill.
13

14. 5.0 CONCLUSION
Print-up had come up with a strong and comprehensive marketing communication
strategy which focus on the brand awareness and Metabical benefits to the targeted
group.
Based on the extensive market survey and market research as well as the focus
group findings, the marketing communication strategy of Metabical will be
successfully creating demand for Metabical.
Furthermore, being known as the only prescription drug with FDA approval and
clinical results to back up weight-loss claims will definitely attract a lot more
customers and steady demand in the future.
14