Entering a New Market, Practice Cases, Pricing Strategies

Hair Raising

Adapted from Marc Cosentino’s Case In Point, 8th Edition, pages 115-118:

The client is a large pharmaceutical company that has discovered a cure for baldness and thinning hair. It is a pill that will restore a full head of hair in three months. The pill needs to be taken every day to maintain the hair’s thickness. Estimate the size of the US market and tell me how you would price the drug.

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