Professional Documents
Culture Documents
Forecasting
Yuxian
Xue
Akshay
Maheshwari
Priyesh
Iyer
Hemant
Manglani
CEO Dashmeet
Singh Bagga
A Group 5 Presentation
Product Attributes
FDA approved prescription drug
Minimal negative side-effects
1 tablet per day
Primary Target
Segment
Age: 35 65 years
College Education
plus
Income > $80,000
Secondary Target
Segment
Age: 25 40 years
College Education
$50,000 < Income <
$80,000
Forecasting Demand!
Our Choice
Approach
Scenario 1
7.06
Scenario 2
16.14
Scenario 3
14.79
Packaging Strategy
Factors to consider
Likelihood of program completion by each customer
Packaging and Pricing of competitive products
Cost per pack
Preferred Time interval between 2 prescriptions by
Doctor
Incentive to
repurchase
Affordability across
primary and
secondary segments
Easy to monitor
monthly progress
Available Alternatives
Price of 12 Week course
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Alli
Jenny Craig
Gym Membership
Higher Demand
Affordable by all target
segments
Disadvantages
Inelastic Demand
Consumers are from a
relatively higher income group
Insensitive to price change
Monopolistic Market
Only FDA approved
prescription drug for
combating obesity
Disadvantages
Prone to competition
Uncertainty of Perceived
Value
High Price could lead to low
demand
Underlying assumption of
no change in customer
preferences in 5 years
Disadvantages
Exploitation of Consumer
Surplus
Target Market is further
compressed
Profit (millions $)
75
394.28
(7)
125
932.25
120%
150
1201.31
184%
Available Alternatives
12 Week course price
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0