D

Approach 1
Number in million
No of overweight
between BMI 25 &30
Actively trying to
loose weight

24.871

People Comfortable
with drugs

3.73065

Year
1st Year
2nd Year
3rd Year
4th Year
5th Year

71.06

% Capitalization
10%
15%
20%
25%
30%

Total
Capitalization in
Total number
million
0.373065
373065
0.5595975
559598
0.74613
746130
0.9326625
932663
1.119195
1119195

Demand Forecasting
Approach 2
Number in million
No of overweight between
BMI 25 &30
Actively trying to loose
weight
People Comfortable with
drugs

Year
1st Year
2nd Year
3rd Year
4th Year
5th Year

71.06
24.871

2.98452

% Capitalization
10%
15%
20%
25%
30%

Total
Capitalization Total number
in million
0.298452
298452
0.447678
447678
0.596904
596904
0.74613
746130
0.895356
895356

Approach 3
Number in million

Ideal Target Potential

Year
1st Year
2nd Year
3rd Year
4th Year
5th Year

4.3

% Capitalization
30%
35%
40%
45%
50%

Total
Capitalization in Total number
million
1.29
1290000
1.505
1505000
1.72
1720000
1.935
1935000
2.15
2150000

Demand Forecasting
Approach 1
Number in million
No of
overweight
between BMI 25
&30

78.2

Actively trying
to loose weight
People
Comfortable
with drugs

Year

27.37

4.1055

% Capitalization

1st Year
2nd Year
3rd Year
4th Year
5th Year

10%
15%
20%
25%
30%

Total
Capitalization in Total number
million
Repeat Purchases Total Purchases
0.4146555
414656
298552
713208
0.628203083
628203
452306
1080509
0.845980151
845980
609106
1455086
1.068049941
1068050
768996
1837046
1.294476528
1294477
932023
2226500
Total Purchases
7312349

Pricing strategy
Total Fixed Cost
Option 1
Contribution Margin
Revenue
fixes costs
Marketing
R&D
ROI
Option 2
Contribution Margin
Revenue
fixes costs

429000000

24.8
181346255
6000000
23000000
400000000
-247653744.8
-57.73%

58.13
425066847.4
6000000

Option 3
Contribution Margin
Revenue
fixes costs

74.8
546963705.2
6000000

Marketing
R&D
ROI

23000000
400000000
-3933152.63
-0.92%

Marketing
R&D
ROI

23000000
400000000
117963705.2
27.50%

Approach 2
Number in million
No of overweight
between BMI 25
&30

78.2

People
Comfortable with
drugs

9.384

Year
1st Year
2nd Year
3rd Year
4th Year
5th Year

% Capitalization
10%
15%
20%
25%
30%

Total
Capitalizat
Total number
ion in
Repeat
million
Purchases
Total Purchases
0.947784
947784
682404
1630188
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Purchases
1630188

Pricing strategy
Total Fixed Cost
Option 1
Contribution Margin
Revenue
fixes costs
Marketing
R&D
ROI

429000000

24.8
40428662.4
6000000
23000000
400000000
-388571337.6
-90.58%

Option 2
Contribution Margin
Revenue
fixes costs
Marketing
R&D
ROI

Option 3
58.13
94762828.44
6000000
23000000
400000000
-334237171.6
-77.91%

Contribution Margin
Revenue
fixes costs
Marketing
R&D
ROI

74.8
121938062
6000000
23000000
400000000
-307061938
-71.58%

Approach 3
Number in million
Ideal Target Potential

Year
1st Year
2nd Year
3rd Year
4th Year
5th Year

4.3

% Capitalization
30%
35%
40%
45%
50%

Total
Capitalizat
Total number
ion in
Repeat
million
Purchases
Total Purchases
1.29
1290000
928800
2218800
1.52005
1520050
1094436
2614486
1.754572
1754572
1263292
3017864
1.993632
1993632
1435415
3429047
2.237299
2237299
1610855
3848154
Total Purchases
15128351

Pricing strategy
Total Fixed Cost
Option 1
Contribution Margin
Revenue
fixes costs
Marketing
R&D

ROI

429000000

24.8
375183104.8
6000000
23000000
400000000
-53816895.2
-12.54%

Option 2
Contribution Margin
Revenue
fixes costs
Marketing
R&D
ROI

Option 3
58.13
879411043.6
6000000
23000000
400000000
450411043.6
104.99%

Contribution Margin
Revenue
fixes costs
Marketing
R&D
ROI

74.8

1131600655
6000000
23000000
400000000
702600654.8
163.78%