1.In this case,over-weight situations are divided into three catalogues according to the National Institutes of Health on Body Mass Index.Adults with BMIs over 25 are considered“overweight”;adults with BMIs over 30 are categorized as“obese”;and those adults with BMIs over 40 are considered as“severely(or morbidly)obese.With this kind of categorization,CSP analyzes the current weight-loss products with different weight-loss theories,different levels of side effects,different target customers and different ways to reach the products.
Firstly,Metabical is different from the current weight-loss options with its weight-loss theories.For the most common and well-known weight-loss drugs available in the markets are Meridia,Orlistat and Alli.The former one works to suppress appetite through increasing levels of serotonin and catecholamine in the body.The latter one works to block the body’s absorption of fat.Alli works as the same way as Orlistat,but with a reduced-strength version.However,Metabical combines the current weight-loss theories into one.It suppresses the appetite and at the same time,blocks the body’s absorption.
Secondly,Metabical has less side effects comparing with the current products.Unlike Meridia,Orlistat and Alli,which share a lot of potential side effects while taking the drugs,hypertension,tachycardia,severe stomach pain,kidney stones,and liver failure for example,Metabical only has side effects when users consume high levels of fat and calories.
Thirdly,Metabical targets its customers on the scale of“overweight”,which means that adults with BMIs ranging from 25 to 30.Also,Metabical targets the well-educated women aging from 35 to 65.However,for most of the weight-loss products,they are especially for people who suffer from“obese”and“severely obese”,with no preferences for education levels.
Fourthly,Metabical belongs to a prescription medication.It can only be reached through the approval of doctors,while other current weight-loss drugs are available over the counters.It potentially secures the safety of usage of Metabical.
3.As a new product in the market,with unstable customers in the markets,I will suggest Printup to explore several pricing strategy approaches,including cost-based pricing,value-based pricing and competition-based pricing.For the first one,cost-based pricing,the prices based on fixed costs and variable costs.Printup needs to figure out the target profit before pricing and calculated the break-even volume.The advantage of it is easy to set the price and it is commonly used by retailers and wholesalers.But it is difficult to determine an effective markup percentage and it separates pricing from other business functions.For value-based pricing,the prices are set primarily on the value perceived or estimated to the customers.The advantage of this method is that it can bring more profit to the company.However,the value perceived or estimated to the customers is difficult to be understood by the sellers and it is not helpful for the companies in the long run.For competition-based pricing,prices are determined by considering what competitors charge for the same product.This pricing method allows company to set prices quickly with relatively little effort,since it does not require accurate market data.Also,it makes distributors more receptive to the products because they are priced within the range the distributor already handled.However,company may lose potential profit if they have outstanding products that customers are willing to pay more for.
For the three pricing options for a 4-week supply,I will recommend Printup the option 2.The reasons are as followings.
First,Printup targets its customers on the well-educated females aging from 35 to 65.For this group of people,they already have a stable and relatively-high income that can afford them to but the products.Compared with Option 1,Option 2 charges$50 more each month,which is,less than$2 more per day.Especially,in 2001,according to the survey,there is 26.8%of obesity who receive income for over$60,000.The 26.8%of people is likely to be the target customers of Printup given the positive relationship between income and education level.With a stable and relatively-high income,which is probably$60,000,the target group will not turn to other products because of$2 more for each day.
Secondly,for many who suffer from the overweight,the determined adults among them will always combine and try several weight-loss methods at the same time.They are likely to take the drugs,but keep on a diet and go to gym at the same time to achieve the goal and reduce side effects brought by the drugs.For this kind of people,their spending on losing weight is more than the cost of drugs only which is about$190 for three months and$65 for four weeks.The cost may be double or triple according to the methods tried at the same time.Now the Metabical is tested and will be approved by the FDA to ensure the outcome and secure the safety.The target group may only use one method only to lose their weights.Also,the cost is less than the spending in Option 3,which is the value brought to the customers once they lose their weights.
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