Basic Information of Ciba Consumer Pharmaceuticals' Acutrim: Challenges and Opportunities in Today's Diet Industry
Author: Nancy F. Koehn, Rebecca VoorheisPublisher: HBR
Case Number: 9-795-043
Publication Date: Dec 2, 1994
Course Category: Marketing
Case Summary of Ciba Consumer Pharmaceuticals' Acutrim: Challenges and Opportunities in Today's Diet Industry
Ciba Consumer Pharmaceuticals (CCP) : First & major product – AcutrimObesity in the 1990’s
Three ways to measure obesity:
1. Metropolitan Life weight table: based on combinations of height and weight
2. waist-to-hip ratio.
3. Body-Mess Index
Between 1986 to 1993, average American increased 10 pounds.
Obses girls: grew from 14% to 24%, Boys: 18% to 26%.
-> US = The Fattest Nation in the World”
37% of men and 52% of women think they are over-weight.
Fat = 20% of death in the US
$33 billion on diet products/programs in 1994.
1/7 women, 1/15 men try to lose weight
95% of those who lose weight- > gain all of it back and more in 5 years.
Appetite Suppressants and the Diet Industry
Appetite suppressants became the professional treatment for obesity.
1970: Amphetamines – 80% of all prescriptions written
1972: PPA – Over-The-Counter drug.
26% of all dieters (and 24% of all women) have tried OTC diet pills.
Acutrim
Introduced in 1983 -> became top 6 in only ten years.
Competitor: Thompson.
CCP filed suit against Thompson -> win.
In 1993 -> CCP = 22% of US appetite suppressant sales.
Customers: Demographic Profile:
Women, 18 – 49.
Married w/ children.
High school degree or higher.
Middle—class household.
Wants to lose 5-20 pounds.
Market Research: Segmentatoin.
Group 1. Women who rather lose than maintain weight.
Group 2. Dieters who prefer slower, less restrictive plans to faster, harsher weight reduction regimens. (somehow success, and use Acutrim)
Group 3. Often lost and regain weight several times. (want quick diet & return to old lifestyle.).
Meal replacement is better than appetite suppressants.
Market Stability
Successful: People want fast, easy, one-shot solution to their weight problems.
Problem: Product does not solve the central problem of over-eating.
Concerns: Not steady / long term product.
Fail – Stop buying. (useless)
Successful – Stop buying. (no need)
Use Focus group: To understand the motivations and feelings. & reaction.
All Female
5 - 20 pounds overweight.
Lost/regained as much as 500 pounds over their lifetimes.
Observation:
Many are sad, negative self-image, no confidence
Many believes that if they lose weight, their life will improve.
Embarrassed to pick up kids from school (as fat mothers).
Current Market
Decline market.
Substitutions: meal replacements like Slim-Fast.
Pill are perceived as ‘not natural’, ‘not-healthy’, and ‘not safe’.
Current Performance
Increased market share.
TV advertisement.: Difficult to do. Cannot make fun of over-weight people.
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