Medi-Cult Case Study: In Vitro Maturation Pricing and Market Analysis

This case study analysis focuses on Medi-Cult, a biotech company that developed In Vitro Maturation (IVM) as an alternative to In Vitro Fertilization (IVF). The report examines the company's pricing strategy, considering factors like customer value, competitor pricing, and cost. It discusses the sources of economic value for IVM and IVF, including the bargaining power of suppliers and customers, the threat of substitute products, and the intensity of competition. The analysis explores appropriate methods for determining customers' willingness to pay, such as offering a second attempt at a reduced price and maintaining the credibility of the IVM method. Ultimately, the report suggests a pricing range for IVM based on the three C's pricing policy (consumer, cost, and competitor), balancing profitability with market competitiveness. Desklib provides access to this and other solved assignments to support student learning.

Running head: CASE STUDY ANALYSIS
CASE STUDY ANALYSIS
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CASE STUDY ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Sources of economic value..........................................................................................................2
Appropriate methods for determining customers willingness to pay..............................................3
Price that can be charged for IVM...............................................................................................3
Conclusion.......................................................................................................................................4

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CASE STUDY ANALYSIS
Introduction
The reports analysis the case study which is based on Medi-Cult, which has developed In
Vitro Fertilization ( IVF) and In Vitro Maturation (IVM) which helps to fertilize the eggs and
mature it in just 2 days time. It analysis the pricing strategy of the firm based on customer value.
It determines the pros and cons of the sales promotion and discusses on the different bases of
setting price. Multicult offers a treatment to the infertile couples, it reduces the maturity time.
(Smith, 2013). It is a hormone free treatment. This treatment can relief the women from
numerous psychological and physical side effects. This report offers a critical analysis of the
products offered. It provides the methods that are appropriate for the customer’s willingness to
pay.
Discussion
Sources of economic value
The sources of economic value of IVF and IVM are the bargaining power of the suppliers; it
influences the economic value of the suppliers. The bargaining power of suppliers influences the
price of Medi Cult. If the bargaining power of the suppliers is high, they will influence higher price
extraction from Medi Cult. The bargaining power of the customers determines a source of economic
value. If the bargaining power of the customers is high, they will bargain for price cuts which will
eventually pull down the profit margin of the firm. The threat of substitute products also determines
the economic value of the firm. If there are too many substitute products in the market, the firm will
be forced to reduce its price. The profit margin will decline. If the competition is high, it will be
difficult for the firm to increase its profit. Strong threat from new entrants will also reduce the profit
margins of the firms. To reduce the threats of the new entrants, the firms will be willing to reduce the
profits. These sources determine the economic value for IVM and IVF ( Piquette, 2016).

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CASE STUDY ANALYSIS
Appropriate methods for determining customers willingness to pay
While considering the pricing strategy, a couple will be willing to pay considering the quality
of service provided, there degree of satisfaction. The company needs to maintain the credibility of the
IVM method. The customers must be provided another opportunity so that if it fails in the first
attempt, they will be provided with second chance and the price would be 50% from the base line
price that is the company should take only the operational cost only. The customer needs to be
informed before if the process fails (Child et al., 2013). The company should facilitate and direct the
customers to attain the desired goals. The customer will ready to pay, once they are satisfied that
there will be a follow up action. Medi Cult must highly concentrate on IVM products as it is less
priced, so customers will buy this product more than IVF. This will enable a higher profit for the
firm. The IVM can be launched at a price which is lower than the usual price so that the IVM can be
further promoted in the market and can gradually achieve the industry standard. Later the improved
versions can be sold at a higher price to increase the profit margin (de Matos, Furnus, & Moses,
2017).
Price that can be charged for IVM
The three C’s pricing policy that is consumer, cost and competitor can be used to
determine the pricing of the service. Price is the most crucial part of any product or service as the
consumers and the competitors are highly sensitive to this. If the price is kept too low, the profit
margin of the firm will decline, keeping the price too low, the credibility or quality of the service
will be questioned. If the price is kept too high, the prospective customers will be diverted. Loss
of customer will eventually decline the profit and sustainability of the firm (Popeet al., 2017).
Considering the channels, regulations, insurance the price charged for the IVM treatment should

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CASE STUDY ANALYSIS
be $ 5000 to $10000. Considering the cost of hormones $ 300, the lab operations cost $ 250 and
other various cost $ 250 ( Segers, 2015).
Conclusion
Therefore from the above analysis it can be concluded that various forces such as
supplier’s bargaining power, consumer’s bargaining power, threats of new entrants, rivalry
among the existing firms determine the economic value of the service offered. Further,
considering the cost, consumer and competitor the methods considered for the consumers’
willingness to pay are determined.

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CASE STUDY ANALYSIS
References
Child, T. J., Phillips, S. J., Abdul-Jalil, A. K., Gulekli, B., & Tan, S. L. (2013). A comparison of
in vitro maturation and in vitro fertilization for women with polycystic
ovaries. Obstetrics & Gynecology, 100(4), 665-670.
de Matos, D. G., Furnus, C. C., & Moses, D. F. (2017). Glutathione synthesis during in vitro
maturation of bovine oocytes: role of cumulus cells. Biology of reproduction, 57(6),
1420-1425.
Piquette, G. N. (2016). The in vitro maturation (IVM) of human oocytes for in vitro fertilization
(IVF): is it time yet to switch to IVM-IVF?. Fertility and sterility, 85(4), 833-835.
Pope, C. E., McRae, M. A., Plair, B. L., Keller, G. L., & Dresser, B. L. (2017). In vitro and in
vivo development of embryos produced by in vitro maturation and in vitro fertilization of
cat oocytes. Journal of reproduction and fertility. Supplement, 51, 69-82.
Segers, I., Mateizel, I., Van Moer, E., Smitz, J., Tournaye, H., Verheyen, G., & De Vos, M.
(2015). In vitro maturation (IVM) of oocytes recovered from ovariectomy specimens in
the laboratory: a promising “ex vivo” method of oocyte cryopreservation resulting in the
first report of an ongoing pregnancy in Europe. Journal of assisted reproduction and
genetics, 32(8), 1221-1231.
Smith, G. D. (2013). In vitro maturation of oocytes. Current women's health reports, 1(2), 143-
151.