Cialis

1) What are the most relevant dimensions along which to segment the patient market for ED treatment? Of the segments identified, which would you target initially with Cialis?

The relevant dimensions are: age, occupation, marital/partner status, level of education, level of income and ED medication use habits (i.e. Viagra dropout).

Within these segments, the populations to target are:

• Age: Men ages 50+ (slight market with men ages 40-49)

• Occupation: Retired or employed full time

• Marital Status: Married or living together with a partner / have a sexual partner

• Education: U.S. вЂ" high level of education; Other countries вЂ" secondary to primary level of education

• Income: U.S. вЂ" mid to high level of income; Other countries вЂ" low to mid level of income

• ED medication use: Viagra dropouts

2) What is Viagra's positioning in the marketplace in 2002? How would you characterize the Viagra brand?

In 2002, Viagra is:

• Well-established market leader (5 years of success on market; 9 million men have used drug)

• Monopoly

• Aggressive in marketing and sales force (NASCAR ads, 30,000 direct sales representatives, many of whom are former military)

• Markets to men but targets their female partners

• Has 3 million users (and approx. 7 million dropouts)

3) What would be the most effective way to position Cialis in the marketplace?

Cialis marketers should pursue a primary strategy to �beat’ Viagra by differentiating itself as �better’ and gaining more market share than Viagra. To do so, it should promote the following attributes of Cialis:

• Longer duration and shorter onset time: Cialis has a half life of 17 hours and can last up to 36 hours (as opposed to 3 to 5 hours for Viagra). In addition, Cialis has an onset time of 30 min (Viagra is 30min вЂ" 1 hr and onset can be slowed by high fat foods).

• Fewer side effects / safety factor: Cialis does not cause blue-tinted vision like Viagra, nor is its onset time inhibited by fatty foods (as mentioned above).

• Effectiveness as an ED drug. Cialis is actually superior to Viagra.

ICOS and Lilly should:

• Target a market of 50+ men who have sexual partners, are married and/or living with someone and are retired or working full time

• Market to partners as well as to the men

• Assemble a direct sales force that is large enough to compete with Viagra and send them out to market directly to primary care practitioners and urologists

• Set Cialis price per pill at slightly higher than Viagra, to indicate superior quality and remind of longer duration

4) What marketing mix activities should accompany the launch of Cialis?

a. What would be the most important message to communicate to the target patients? To physicians? To partners?

o Cialis is better, safer, has fewer side effects and lasts longer. Cialis is a drug for people like you (ED can and does happen to many people).

b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?

o Through PCP and Urology offices, directly marketing to these physicians

o Through magazine advertisements in men’s magazines and magazines that might target the female partner population

o Through television advertisements run at times when a 50+ male audience (or their partners) would be watching

c. How would you price Cialis? What type of promotions would you offer?

o Product:

 Cialis вЂ" a superior erectile disfunction drug

 Green pill (means go)

o Price:

 Slightly higher than Viagra

 Packaged in 4 pills at $12 per pill

o Promotion:

 Market to couples, again, to 50+ working or retired men who are married and/or living with someone and who have sexual partners and to their partners

 Market to Viagra dropouts

 Emphasize time (longer duration and shorter onset time lead to freedom to choose when, ability to approach activities with more relaxed attitude, less pressure), convenience and safety

 Market using large direct sales force, ads in key magazines and on key TV channels, billboards near locations that attract target market

o Place:

 Cialis should pursue a worldwide market, US (largest consumers of ED drugs), UK, Canada and other countries in Europe.

5) What competitive response do you anticipate from Pfizer? From Bayer-GlaxoSmithKline?

Pfizer will most likely play up its 5-year track record as safe and effective drug, will play up its brand recognition and will fight competitors aggressively.

Bayer will most likely pursue a niche strategy to gain market share of ED patients with diabetes.

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