M E T A H B I C A LPositioning 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

65% entire adult population overweight, obese or severely obese

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

Social Issue

stereotype : Overweight = lazy & self-indulgence

professional life :Overweight negative impact on hiring

decisions, wages and promotions

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 XenicalUsers 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 failurein patients who had taken Alli and Xenical between 1999 & 2008

Other OTC Weight-Losse.g : hoodia, chromium, gree-tea extract, conjugated

linoleic acid, bitter orange, etc.

FDA categorized them as :HERBALor Dietary Supplements UNREGULATED BY THE AGENCY

NOT require stringent FDA Testing & Approval CAN NOT DISCOVER HEALTH COMPLICATION OF THEIR USE BEFORE THE PRODUCT HIT THE MARKET

FDA ban purchase sale of “Ephedra” LINKED TO SEVERAL CASES OF SUDDEN CARDIAC DEATH & OTHER SERIOUS HEALTH RISK

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

METABICAL (Meh-tu-bye-cal)

Clinical trials proved : effective in achieving significant weight-loss for overweightAverage course of treatment lasting 12 weeksFew negative side-effect helped with behavior modification & healthier eating habitsNOT very effective in helping individuals with BMIs of 30 or greater lose weight NOT recommended for this group

35%actively trying to lose

weight

15%using drugs

Not satisfied with weight

Market Research

Their current weight..

75%

25%

Women

Not satisfiedOthers

65%

35%

Men

Not SatisfiedOthers

Visited a health care provider..

Visit health care50%

Others50%

Women

Visit Health care30%

Others70%

Men

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

Want to change

55%

Others45%

Women

Want to change

40%Others

60%

Men

Had tried and failed to lose weight in past five years

Tried & Failed60%

Others40%

Women

Tried & Failed30%

Others70%

Men

Current weight loss in the market..

Dissatisfied65%

Others35%

Women

Dissatisfied35%

Others65%

Men

The level of education

75%

25%

College Degree

Aware of Health RiskOthers

64%

36%

High School Diploma

Aware of Health RiskOthers

Age

65%

35%

18-35 years

Lose weight to look betterLose weight to improve their health overall

40%

60%

+35 years

Lose weight to look betterLose weight to improve their health overall

The level of income..

5%

11%

20%

64%

Willing to pay weight loss drug

less than $40,000$40,000-$80,000>$80,000Others

The Problem

Identify and Establish Brand Positioning and Values

Plan and implement Brand Marketing Programs

Measure and interpret brand performance

Grow and sustain brand equityBarbara Printup

Senior director of marketing for CSP

SegmentingTargeting

Positioning

Who was the ideal target consumer ?How should in the decision-making process be-addressed ?

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 ?

DTC ads

• Losing weight is tough• Look your best• Those extra 20 pounds

could be killing you

Health Care Provider

• 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 unhealthy eating habits…Introducing Metabical– short term therapy.

Advertising Concept

End-User ADULT(aged from 18 to 70 years old)

Health Care Providers

Segmenting

Targeting

OVERWEIGHT INDIVIDUALS(BMI from 25 to 30)

POP & POD

Point Of Parity

• Weight-loss drugs• Approved by FDA• Have some side-effect

(associated with excess fat & calories)

Point Of Differences

• 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 weeks

Perceptual MapApproved by FDA: weight loss drugs

OTC weight loss drugs approved (dietary supplement)

Low m

edical riskHig

h m

edic

al ri

sk

Xenycal

TrimSpa& Others

Alli

Hoodia, green tea extract & others

4 - W

MEHTUBICAL as

Superior Weight-Loss

Solution

WHY

WHAT

FOR WHOM

AGAINST WHO in weight-loss drug : ALLI, XENICAL, generic-drugs, Other OTC drugs, Weight Watcher

in overweight segment : NONE !

Overweight individuals ( 25 < BMI < 30 )

a) Superior prescription drug to any weight-loss solution on the market.

b) Few negative side effects.c) Helped with behavior modification &

healthier eating habits.

reason for a : Calosera + Meditonan = Dramatic

weight-loss Proved by clinical trial effective

in achieving significant weight-loss reason for b&c : Worked in low-dose formulation Controlled-release feature = 1 pill /

day Approved by FDA

Positioning Statement

For you who troubled with overweight problem

Metabicalis a prescription weight-loss drug

Which gives the most superior weight-loss solution, safe-alternative 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 weight-loss than other and you only need 1 pill a day

OurEvaluation !

• SEGMENTINGthey also need to approached the “OBESE” group !

OurEvaluation !

• SEGMENTINGthey also need to approached the “OBESE” group !

Exhibit 1 :

OurEvaluation !

• Targetingthey also need to target those who use … as a way to loose excess

weight and target not only health-care provider but also …

Overweight

Health Care Provider

Doctors

Self-Effort

Gym Instructor

Overweight

Drugs

Gym

Using weight-watcher

Herbal, natural prescription

OurEvaluation !

• Positioningthey’re just fine !

MarketingCommunication

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 ?

ObjectivesBuilding awareness of METABICAL, the weight-loss drug – a new product of CSPo Successful with initial consumers (a successful product launch) optimal STP, success marketing communication

o Recoup the massive investment

o Long-term, steady demand

TRADITIONAL• TVC• Event Sponsorship• Print Media (magazine, newspaper, flyers, brochures, medical

journal)• Billboard• Radio• Public Relation• Sales Promotion

NON-TRADITIONAL• Interactive website (online)• Podcast• Direct Email• Social Media Networking• Partnership

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 drug-rep visits.

How Many is Enough ?Information :R&D and FDA expenses = $ 400,000,000Marketing budget (FY 01) = $ 23,146,000Estimated retail price = within $3 to $5User 1 pill / dayTreatment 12 weeks = 84 days

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

How Much is Enough ?Information :R&D and FDA expenses = $ 400,000,000Marketing budget = $ 23,146,000Estimated retail price = $3 , $4 or $5User 1 pill / dayTreatment 12 weeks = 84 daysUS adult population (2008) = 230,000,000 persons

2000 209 Million 34% 71.06 Million2008 230 Million 37.5% 86.25 Million

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

35% actively trying to lose weight35% x 86.25 Million peoples = 30 Million peoples

15% of those actively using drugs to lose weight15% 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 :

* From Exhibit 2 , if our assumption what happen in focus group also happen in real-world then we can get that :

PROFITPrice X Sales = $3 X (84 x 2.25 Million) = $ 567 Million EFFECTIVENESS

Profit : Marketing Budget = $ 567M : $23.146M = $ 24.49

FOR EVERY $ 1 Marketing Budget GENERATE $ 24.49 PROFIT

THANK YOU !