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Prize winner
Case
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Reference no. IMD-5-0537
Subject category: Marketing
Published by: Institute for Management Development (IMD)
Originally published in: 1999
Version: 31.05.2021
Revision date: 28-Jul-2021
Length: 13 pages
Data source: Field research

Abstract

'Medi-Cult: Pricing a Radical Innovation' is a case that highlights the issues involved in the launch of an infertility product and procedure, which allows women to become pregnant without having to undergo unpleasant hormone stimulation or experience dangerous side-effects. In bringing its product to market, Medi-Cult, a small biotechnology company, must deal with regulatory constraints, larger competitors, and the challenges of introducing a new product into the local and global marketplace. Questions raised are: Should the product be priced according to its perceived value? Should Medi-Cult pursue a penetration or market skimming strategy in pricing the new product? How will the contribution margin be affected if a global, regional, or multinational pricing strategy is chosen? What are the ethical issues in pricing pharmaceuticals?

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in 1998.

Geographical setting

Region:
World/global
Country:
Denmark

Featured company

Medi-Cult
Employees:
51-200
Turnover:
USD 3 million (1997)

About

Abstract

'Medi-Cult: Pricing a Radical Innovation' is a case that highlights the issues involved in the launch of an infertility product and procedure, which allows women to become pregnant without having to undergo unpleasant hormone stimulation or experience dangerous side-effects. In bringing its product to market, Medi-Cult, a small biotechnology company, must deal with regulatory constraints, larger competitors, and the challenges of introducing a new product into the local and global marketplace. Questions raised are: Should the product be priced according to its perceived value? Should Medi-Cult pursue a penetration or market skimming strategy in pricing the new product? How will the contribution margin be affected if a global, regional, or multinational pricing strategy is chosen? What are the ethical issues in pricing pharmaceuticals?

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 1998.

Geographical setting

Region:
World/global
Country:
Denmark

Featured company

Medi-Cult
Employees:
51-200
Turnover:
USD 3 million (1997)

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