Customer-Oriented Pricing Exercise1 Russ Winer New York University

Medi-Cult, a biotech company based in Denmark, has developed a new alternative to In Vitro Fertilization (IVF) called In Vitro Maturation (IVM). IVM significantly reduces the time needed to mature an egg from 30 days to just 2 days. Importantly, it is a hormone-free treatment thus sparing women a number of psychological and physical side effects. IVF has 4 steps: 1. Hormonal stimulation: This increases the number of eggs that are matured, lasts for 30 days, and can require up to 50 self-administered injections. The injections of hormones is often accompanied by side effects such as nausea, mood swings, general discomfort, and reduced sexual desire resulting in loss of work days in some cases. In 2% of the cases, 5 days of hospitalization is required. 2. Egg aspiration: The more mature eggs are removed, examined, and placed in a nutrition fluid. 3. Fertilization: After four hours in an incubator, the eggs are fertilized with the male sperm. 4. Embryo transfer: 48 hours later, the embryos are transferred to the uterus. IVF has about a 20% success rate. The total cost of an IVF cycle (one procedure) is about $9,000 broken out in the following way: Cost of IVF treatment: $5,000 (including the cost of a single dose of the IVF medium, sufficient for one cycle); cost of hormones. Once you have read the case study, assume that you are a sales consultant for these products. Do an analysis of the case study and address the following:
1. Mention the major markets for Medi-Cult products.

2. What are the striking benefits, as mentioned in the study for marketing these products to consumers?
3. Briefly describe Medi-Cult marketing strategy model.
4. What other product-pricing strategies, if any, would you recommend for Medi-Cult to maximize profit in the short and long-term?

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