Metabolic was a new drug, SSP could use some previous experiences to market and manufacture this new drug. According to the Anions Matrix analyses, it is not a totally new product in a corporation. What’s more, the over-the-counter (ETC) weight-loss drugs, such as All, were widely accepted and almost had 1 0 years history. These ETC weight-loss drugs were the powerful competitors.
Secondly, CAPS also faced with another risk that their investigation is not efficient to support their positioning strategy. According to their investigation, the rate of overweight has been increasing stably in the sat 20 years in America.Until 2000, the percentage of the Body Mass Index (IBM) between 25 to 30 had increased to 34% and about 70% of the respondents were not satisfied with their weight. The data also shown the different visions in females.
(John and Heather, 2010) It seems a large market and lots of opportunities for the weight-loss drug companies; and it seems a huge chance for SSP to take part in this market when there was no prescription weight-loss drugs. However, the investigation just shown the responses of females, but did not show any male’s thoughts. Therefore, this investigation is not sufficient to position their target customers.Another risk strategy that when they developed the market, SSP relied on the social media, which they had little experience. It was a dangerous strategy that SSP planed to pay a lot in the communications to enhance the influence and brand, while they used the unfamiliar social media.
In conclusion, it has certain risks for SSP to produce this new weight-loss drug, even though SSP spent 10 years, $400 million and prepared a long time; because they produce the new drugs and their investigation is not sufficient to support their positioning strategy.