Medi-Cult Case Study: IVM Product, Market, and Pricing Strategies

This case study examines Medi-Cult, a biotechnology company specializing in In Vitro Maturation (IVM) technology, a hormone-free alternative to In Vitro Fertilization (IVF). The analysis covers major markets like China and Japan, highlighting the benefits of IVM over IVF, including reduced treatment time and lower costs. The study outlines Medi-Cult's marketing strategy model, which emphasizes a single-dosage approach and addresses competition from pharmaceutical companies. It also explores pricing strategies, recommending a cyclical pricing model to maximize profits and maintain product demand. The case study analyzes the "Three C's pricing" model (Cost, Consumer, and Competitor) and discusses how Medi-Cult can adapt its pricing based on the business cycle to optimize profitability and customer accessibility. The analysis is based on the assignment brief, focusing on market analysis, product benefits, and pricing strategies.

Running head: MEDI-CULT CASE STUDY 1
Medi-Cult Case Study
Name
Institutional Affiliation

MEDI-CULT CASE STUDY 2
Mention the Major Markets for Medi-Cult Products
Medi-Cult is a biotechnology company that has made major strides in the
development of IVF and IVM. The target consumers of the IVF and IVM treatments include
insurance companies, government health services, infertile couples, and healthcare providers
involved in vitro procedures including general practitioners and specialist physicians. The
IVM technology represent timely solutions to sustain the population levels in the rapidly
declining fertility rate. The most prominent market is in China which represented the largest
fertility products market, with an expected increase to $1.5 Dillion in the fertility industry in
the year 2022. Also, there is a shortage in the IVF skills in China; hence resulting in a
competitive advantage for foreign fertility service providers. Additionally, China recently
relaxed the one-child policy and the government has increasingly supported the IVF
treatment; hence increasing the growth of the IVF market in the country (GlobeNewswire,
2019). Therefore, the markets can adopt IVM for its benefits compoared to IVF.
Japan is also another market for IVM that has registered reduced fertility rates and a
high adoption of IVF treatment. The market is facilitated by the increased government
support and high disposable income among the populations in Japan. Consequently, the Asia-
Pacific market has also increasingly adopted the treatment. The increased lifestyle changes in
the region are likely to change the trends of delaying pregnancy; hence propelling the growth
of the Indian market (GlobeNewswire, 2019). Therefore, the countries also have the potential
to support IVM treatment as a better infertility solution over IVF
What Are The Striking Benefits Are As Mentioned In The Study For Marketing These
Products To Consumers?
IVM provides a better and friendlier solution in terms of cost, benefits of using it and
the effects associated with its use. The benefits of marketing the IVM products include
reduction of the time required for the maturation of an egg significantly from 30 days to 2

MEDI-CULT CASE STUDY 3
days. Additionally, the women are spared from injecting themselves with hormones as IVM
is a hormone-free treatment. Therefore, women do not have to experience major physical and
psychosocial side effects associated with injecting oneself with hormones. Also, IVM
significantly reduces the cost of treatment compared to IVF. The hormone costs fall by 90%,
while the lab work and miscellaneous costs drop by 50%. Therefore, IVM has numerous
benefits for consumers.
Briefly Describe Medi-Cult Marketing Strategy Model
Medi-Cult has a marketing strategy model that entails marketing the IVM medium as
a single dosage that is to be administered in one cycle. Medi-Cult faces competition in the
from pharmaceutical companies that such as Wyeth, Merck and Schering-Plough that
supply hormones for IVF use and have a market worth of $1 billion
globally. Additionally, Media-Cult faces competition from similar
companies that develop cell culture media such as IVM. The company
intends to have more than 2 to 3 years as the first company offering the
services.
Pricing is important because it helps Medi-Cult to balance between
profitability, credibility, and meeting the consumers’ needs. Apart from
the benefits associated with IVM over IVF, Medi-Cult has a pricing strategy
that involved the “Three C’s pricing”, which include Cost, Consumer and
Competitor. Medi-Cult can use the three aspects to set the most
appropriate prices based on the market. According to De Toni, Milan, Saciloto,
and Larentis (2017), the management and balancing of information regarding customers,
competition and cost to achieve the optimal and most appropriate price It is essential for the
company to ensure customer value-based pricing, competition-based and cost-based pricing.

MEDI-CULT CASE STUDY 4
What other product-pricing strategies, if any, would you recommend for Medi-Cult to
maximize profit in the short and long-term?
I would propose the cyclical pricing strategy as an important additional model that
can help Medi-Cult to maximize its profit. The pricing strategy entails setting the prices
depending on the stage of the business cycle. The recessionary phase of the business cycle is
characterized by lower demand due to declining incomes of the consumers. During the boom
period of the business, consumers may demonstrate high incomes and consequently higher
prices. The advantages of the cyclical pricing strategy is that there is an increased product
demand even during the recessionary phase of the business. Also, the company can maximize
its profits during the boom period (Deshpande, 2018). The use of price elasticity ensures that
the consumers can access the products at all times regardless of their financial status.
However, when adopting the strategy, Medi-Cult should be aware of how to deal with the
shortcomings of the strategy such as loosing consumers who may be uncomfortable with
price elasticity.

MEDI-CULT CASE STUDY 5
References
De Toni, D., Milan, G. S., Saciloto, E. B., & Larentis, F. (2017). Pricing strategies and levels
and their impact on corporate profitability. Revista de Administração (São
Paulo), 52(2), 120-133.
Deshpande, S. S. (2018). Various Pricing Strategies: A Review. Journal of Business and
Management, 20(2), 75-79. Retrieved from
http://www.iosrjournals.org/iosr-jbm/papers/Vol20-issue2/Version-8/
K2002087579.pdf
GlobeNewswire (2019). Asia-Pacific's In-Vitro Fertilization (IVF) Market 2019-2029:
Anticipated to Grow at a CAGR of 10.13%. Retrieved from
https://www.globenewswire.com/news-release/2019/08/23/1906120/0/en/Asia-
Pacific-s-In-Vitro-Fertilization-IVF-Market-2019-2029-Anticipated-to-Grow-at-a-
CAGR-of-10-13.html