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    Bus 5112

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    The document discusses a marketing analysis for Medi-Cult, a biotech company developing a new infertility treatment called in vitro maturation (IVM). Key points include: 1) IVM is a lower-cost and shorter alternative to in vitro fertilization (IVF) that does not require hormone usage. 2) Medi-Cult's target markets are areas with high infertility rates and it aims to attract both high- and low-income customers. 3) The company's marketing strategy focuses on cost, customers, and competitors, aiming to price the product accessibly while establishing its value for customers.

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    Bus 5112

    Uploaded by

    Yousif A
    44 views5 pages
    The document discusses a marketing analysis for Medi-Cult, a biotech company developing a new infertility treatment called in vitro maturation (IVM). Key points include: 1) IVM is a lower-cost and shorter alternative to in vitro fertilization (IVF) that does not require hormone usage. 2) Medi-Cult's target markets are areas with high infertility rates and it aims to attract both high- and low-income customers. 3) The company's marketing strategy focuses on cost, customers, and competitors, aiming to price the product accessibly while establishing its value for customers.

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    BUS 5112

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    The document discusses a marketing analysis for Medi-Cult, a biotech company developing a new infertility treatment called in vitro maturation (IVM). Key points include: 1) IVM is a lower-cost and shorter alternative to in vitro fertilization (IVF) that does not require hormone usage. 2) Medi-Cult's target markets are areas with high infertility rates and it aims to attract both high- and low-income customers. 3) The company's marketing strategy focuses on cost, customers, and competitors, aiming to price the product accessibly while establishing its value for customers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    44 views5 pages

    Bus 5112

    Uploaded by

    Yousif A
    The document discusses a marketing analysis for Medi-Cult, a biotech company developing a new infertility treatment called in vitro maturation (IVM). Key points include: 1) IVM is a lower-cost and shorter alternative to in vitro fertilization (IVF) that does not require hormone usage. 2) Medi-Cult's target markets are areas with high infertility rates and it aims to attract both high- and low-income customers. 3) The company's marketing strategy focuses on cost, customers, and competitors, aiming to price the product accessibly while establishing its value for customers.

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    of 5

    ssume that you are a sales consultant for a local product or service.

    Prepare an analysis for


    the company and address the following:
    1. Provide a brief background of the company and mention the major markets.
    2. What are the striking benefits, as mentioned in the study for marketing these products
    or services to consumers?
    3. Briefly describe the company's marketing strategy model.
    4. What other product-pricing strategies, if any, would you recommend maximizing
    profit in the short and long-term?

    WRIITEN ASSIGNMENT UNIT 5, BUS 5113

    Assume that you are a sales consultant for a local product or service. Prepare an analysis for

    the company and address the following:

    1. Provide a brief background of the company and mention the major markets.

    2. What are the striking benefits, as mentioned in the study for marketing these products

    or services to consumers?

    3. Briefly describe the company's marketing strategy model.

    4. What other product-pricing strategies, if any, would you recommend maximizing

    profit in the short and long-term?

    RESPONSE

    Description of the Case and Identification of Major Issues


    Medically a woman can get pregnant by Vitro Fertilization (IVF). Keeping this in mind,
    Medi- Cult, a biotech company based in Denmark, has developed a new alternative to IVF
    called Vitro Maturation (IVM). IVF costs more and has a longer time than IVM, yet both
    have the same success rate. Medi intends to produce IVM medium in the form of a single
    dose sufficient for one cycle at a low price (Winer, n.d.). Major issues that the company
    would have to deal with are larger competitors, challenges to introduce new products in the
    market, and regulatory constraints.
    Description of the Case and Identification of Major Issues

    Medically a woman can get pregnant by Vitro Fertilization (IVF). Keeping this in mind,
    Medi- Cult, a biotech company based in Denmark, has developed a new alternative to IVF

    called Vitro Maturation (IVM). IVF costs more and has a longer time than IVM, yet both

    have the same success rate. Medi intends to produce IVM medium in the form of a single

    dose sufficient for one cycle at a low price (Winer, n.d.). Major issues that the company

    would have to deal with are larger competitors, challenges to introduce new products in the

    market, and regulatory constraints.

    Mention the major markets for Medi products


    The company would thrive where the infertility rate is high. Medi targets both high-end and
    low-end market segments. Any woman willing to have a child is a potential customer.
    Besides, women, hospitals, general practitioners, physicians, and health insurance companies
    could be a possible targeted market too. Medi major markets include France, Great Britain,
    the United States, and Denmark (Herdiansjah n.d.).
    What are the benefits, that’s mentioned in this study for marketing the products to the
    end user?
     The most significant benefit is that IVM takes only two days instead of thirty days
    for an egg to mature.
    Mention the major markets for Medi products

    The company would thrive where the infertility rate is high. Medi targets both high-end and

    low-end market segments. Any woman willing to have a child is a potential customer.

    Besides, women, hospitals, general practitioners, physicians, and health insurance companies

    could be a possible targeted market too. Medi major markets include France, Great Britain,

    the United States, and Denmark (Herdiansjah n.d.).

    What are the benefits, that’s mentioned in this study for marketing the products to the

    end user?

     The most significant benefit is that IVM takes only two days instead of thirty days for an
    egg to mature.
     Medi is a hormone-free treatment that spares a woman from its psychological and
    physical side effects.
     IVM didn’t required any hormonal usages or tests that requires up to multiples self-
    administrated injections that has multiple side-effects such as nausea, mood swings,
    general discomfort, and reduced sexual desire.
     The total cost of an IVF cycle (one procedure) is $9000, whereas the total cost of an
    IVM cycle is an average of $5600. The additional cost analysis is described in Appendix
    A, Table 1

    Briefly describe the Medi marketing strategy model

    Medi 's marketing strategy comprises of 3 C's, i.e., Cost, Customer, and Competitor.

     Cost: Low price of the product can reduce the credibility of the product and impact its
    profitability, whereas a high price might only attract high-end consumers.

     Customer: Since Medi targets both high-end and low-end customers, so they have
    expanded the scope of opportunities. The primary customer for the company is the
    infertile couple wanting to have a child. Medi has an added value of being a leader in the
    market. It is necessary to set the critical customer needs and the features and incorporate
    them into marketing and advertising strategies (Warren, 2018). 2018).

    What other product-pricing strategies, if any, would you recommend for Medi to maximize
    profit in the short and long-term?

    Pricing is ethically is a critical decision for any business as the profit margin is not the same with
    different market or products a penetration (i.e. relatively med to low price) strategy in mixture
    with regional price that would be most efficient for Medi . In the long-term price should be less
    in response to the market conditions (Spindler et al, n.d.). Setting a lower price will lower the
    profit even with high sales. In the market where GOV and insurance companies pay partial and
    full medical bills, the price elasticities can be expected to be lower than the one who pay or
    charge per person by him-self.

    The misunderstanding of an additional step as mentioned above has an additional root causes for
    reduced pricing on the long term. We cannot set our KPIs based on the human nature value for
    women having to complete the procedure in less days instead of long term days. I believe despite
    having added advantages it is not suitable to launch the product at high prices. Currently, IVF is
    considered to be a better method as it has been going on for a long time, so setting high or
    similar prices wouldn't attract many customers.

    Conclusion

    Medi is a benchmark that gives the company an added value. The company is about to

    launch, and standard market research and analysis can support and help the company to take

    over the IVF market. IVM has advantages over IVF, it would be easy to sell the products to
    the customers. The risk is that the product is not well-known yet, so any competitor could

    easily copy and penetrate the market before Medi. Maximizing profit with different pricing

    strategies should be the goal of any company.

    Conclusion
    Medi is a benchmark that gives the company an added value. The company is about to
    launch, and standard market research and analysis can support and help the company to take
    over the IVF market. IVM has advantages over IVF, it would be easy to sell the products to
    the customers. The risk is that the product is not well-known yet, so any competitor could
    easily copy and penetrate the market before Medi. Maximizing profit with different pricing
    strategies should be the goal of any company.
    References
    Herdiansjah, D. (n.d.). Pricing a Radical Innovation: Microeconomics for Form’s
    Competitiveness [PDF file]. Retrieved from
    https://www.academia.edu/18596818/Pricing_a_Radical_Innovation_MediCult_Innovation_
    With_Care_Case_Analysis
    Spindler, T., Voska, T., Kiss, D., & Erfani, S. (n.d.). International Marketing and
    Brand Management. ISPSRO. http://tom.ispsro.sk/study/Medi _finalversion.pdf
    Warren, S. (2018, January 10). Medi Pricing a Radical Innovation 5C Marketing Analysis.
    Essay48. MBA SWOT : Medi : Pricing a Radical Innovation SWOT Analysis & Matrix
    (embapro.com)
    Winer, S.(n.d.).Customer Oriented Exercise. New York University.
    https://my.uopeople.edu/pluginfile.php/923408/mod_workshop/instructauthors/5112WA5.pdf
    References

    Herdiansjah, D. (n.d.). Pricing a Radical Innovation: Microeconomics for Form’s

    Competitiveness [PDF file]. Retrieved from

    https://www.academia.edu/18596818/Pricing_a_Radical_Innovation_MediCult_Innovation_

    With_Care_Case_Analysis

    Spindler, T., Voska, T., Kiss, D., & Erfani, S. (n.d.). International Marketing and

    Brand Management. ISPSRO. http://tom.ispsro.sk/study/Medi _finalversion.pdf

    Warren, S. (2018, January 10). Medi Pricing a Radical Innovation 5C Marketing Analysis.

    Essay48. MBA SWOT : Medi : Pricing a Radical Innovation SWOT Analysis & Matrix

    (embapro.com)

    Winer, S.(n.d.).Customer Oriented Exercise. New York University.


    https://my.uopeople.edu/pluginfile.php/923408/mod_workshop/instructauthors/5112WA5.pdf

    Briefly describe the Medi marketing strategy model


    Medi 's marketing strategy comprises of 3 C's, i.e., Cost, Customer, and Competitor.
     Cost: Low price of the product can reduce the credibility of the product and
    impact its profitability, whereas a high price might only attract high-end
    consumers.
     Customer: Since Medi targets both high-end and low-end customers, so they have
    expanded the scope of opportunities. The primary customer for the company is the
    infertile couple wanting to have a child. Medi has an added value of being a
    leader in the market. It is necessary to set the critical customer needs and the
    features and incorporate them into marketing and advertising strategies (Warren,
    2018).

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