UT Case Analysis Discussion

1.Read Case 3 “Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug”

  • Answer the following questions:

a.Discuss Metabical’s points of differentiation compared to current weight-loss options? Discuss what these points of difference mean to consumers (Hint: what benefits/value they provide to consumers)? Please use the table below to summarize your analysis. (10 points)

Points of differentiation How it compares to current weight-loss options What benefits/value is provided to consumers

b.Evaluate each of the three forecasting methods presented by Printup? (Hint: critique the reasonability of the assumptions made across the three forecasts and the reliability and generalizability of data sources (primary vs. secondary). What’s missing from the forecasts? How the forecasts could be improved?). (10 points)

3.Answer the following questions:

a.Calculate the Gross Margin estimates for the first five years for the different price options and demand forecast scenarios (use Table B in the next page as a guide; the demand forecasts are given to you in Table A below). (10 points)

b. What is the ROI* over the first five years for each of the pricing strategies and demand forecast scenarios (see Table C below for fixed cost estimates)? (10 points)

c.Given your ROI results (from 3b.), which pricing option would you recommend? Why? Justify your response (10 points)

* ROI = (5yr cumulative gross margin – 5yr cumulative fixed costs)/5yr cumulative fixed costs

Your case write-up will be evaluated and graded according to the rubric posted in the syllabus


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