Both Metabical cases focus on Barbara Printup, the senior director of marketing, as she determines how to manage the upcoming launch of a new diet supplement called Metabical. You will discuss the first case in this discussion forum and the second case in the writing assignment for week four.

In this first case, “Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug,” you are tasked with making recommendations on pricing, packaging, and demand forecasting. If you recall, in the Strategies of Fiscal Management course you studied financial ratios. All ratios consist of a numerator and a denominator. A ratio of less than 1 indicates that there may be some problems. In such a case you would need to go to the people responsible for the numerator (current assets) and require that they reduce their current assets or you would need to go to the people responsible for the denominator (current liabilities) and require them to reduce the current liabilities — or you could do both. The point is that the ratio indicated where (or who) in the organization should best be able to address the situation.

This first Metabical case is similar. In this case Barbara Printup has several variables that need to be addressed in order to accomplish a successful rollout (forecasting demand which depends on pricing and packaging). Typically, you will need to read through the case several times. As you read through the case for the first time there are several issues you should focus on:

How does Metabical compare to current weight-loss options? What does the competition offer? This is a five forces approach.
What are the pros and cons of the forecasting methods presented by Printup?
Printup examined three different approaches. On your second or third reading you will need to get into the details here. If you had to estimate demand for this product would you choose one of these or suggest another approach? Why?
What are some of the things you would take into account when making decisions about the package count. What package size would you recommend? Why? You may need to use the Excel spreadsheet that came with this case.
What pricing strategy approaches would you suggest Printup explore? What are the advantages and disadvantages of each strategy? What price would you recommend? Once again use the spreadsheet.
What impact does your pricing decision have on profitability?
Your assignment is to use these questions as a guide to writing your analysis of the situation. The analysis should be several well-developed paragraphs and should be divided into two sections. Section one should detail the problems and the decisions that Barbara Printup will need to make. Section two should give details of your recommendations to Barbara. Make sure you supply evidence to support your recommendations. Be sure to clearly label your parts so we know what you are addressing. You may attach in a separate file the spreadsheets used to support your decisions.

You may use this forum to post your analysis in the discussion before you read and comment on the others. You may ask questions about what you do not understand and you may ask for clarifications from the class. You should be ready to provide substantive and helpful responses to help others understand this case.