Cialis Free Essays

Cialis Case Analysis I. Problem: Lilly ICOS LLC (â€Å"Lily†), a young biotech start-up, is going to launch a new drug Cialis for male impotence treatment. In the existing ED drug market, Viagra has gained a huge success and Pfizer is accelerating its marketing pace. We will write a custom essay sample on Cialis or any similar topic only for you Order Now The problem with Lily is which patient segment to target and how to position itself in the marketplace in launching the Cialis. II. Alternatives: ) Follow a Beat Strategy and Come Up with a Differentiated Positioning + High profit prospect by reaching a broad market including current users, dropouts and new users + Easy to build the brand by differentiation of 36-hour effectiveness, more flexibilities and rare visual irregularities + Consistent with Lily’s innovative marketing strategy of integrating into product development and introduction (i. e. first-† and â€Å"best-in-class†) – High risk as a new entrant due to Viagra’s domination in the ED treatment marketplace – Significant marketing investment and innovative marketing tactics are required to make the differentiation – Lack of competency to convince the physicians of its superiority and difficult to persuade the current Viagra users to switch to Cialis 2) Follow a Compete Strat egy and Go Head-to-Head with Viagra’s Positioning + Seize the competitor’s users and re-capture the dropouts as 90% of Viagra currents users and 84% dropouts are interested in trying the new drug + Quicken its prevalence by making analogous positioning, i. e. similar level of price and target customer, etc. + Save marketing costs on segmentation and targeting Fierce competition to confront directly with the ED treatment giant Viagra which has five-year history – Me-too positioning is not consistent with Lily’s focus on development of innovative drugs and competitor may fight back – The characteristics such as flexibility and less onset time may be ignored by customers 3) Follow a Niche Strategy and Target a Specific Segment + Modest competition and lower risk by targeting a specific segment (i. e. the dropouts from Viagra) + Less investment in marketing and sales force + Easily accepted by this specific targeted segment – A limited market sh are restraining the profits – Need to price much cheaper than competitors – Difficult for future growth and expansion to other segments III. Recommendation: Lily should adopt a beat strategy with a differentiated positioning to pursue a broad market. The current needs of the customers for ED treatment are primarily longer duration and flexibility. By targeting the ED patients and their partners demanding for a quality life, Lily should position Cialis as a â€Å"quality-of-life† drug which is best-in-class and more than a treatment drug. To patients, Lily may emphasis the 36-hour effectiveness and intake without regard of food, which offers great flexibility for men. Meanwhile, Lily can educate the female partners to identify the cause for their male partners’ ED and implicate that Cialis can improve their relationship with high satisfaction. To the physicians, it’s important for Lily to convey the information of Cialis’s effectiveness and safety, such as less onset time and rare visual irregularities. It’s advisable to employ the direct-to-consumer advertising, beyond the media reports, to arise both the patients’ and partners’ attention to ED problem and address Cialis’s prowess of creating flexibility. In addition, Lily should price Cialis a little bit cheaper than Viagra or the same as Viagra. It will label Cialis as a premium product and gain a comparative advantage over Viagra. Moreover, offering free samples to customers can accelerate the acceptance and prevalence of Cialis. How to cite Cialis, Essay examples Cialis Free Essays They have DEED problems- which lead to feeling personal embarrassment; Question their role In their relationships; Sense of unfairness to their female partners; trained relationships; Self-identity problems; questioning role in all contexts of life; questioning place in the world. Where? From a local drugstore; directly from a Doctor; from a mail order drugstore; Not usual drug store; another party getting it; in other countries. How? They intake prescription to engage in intimacy with sexual partner. We will write a custom essay sample on Cialis or any similar topic only for you Order Now SOOT Analysis Strengths: 1 Eli Lily and CICS is a great source for product team. Eli Lilly have plenty experience to bring drugs to the market. CICS have strong technical competence with proven trench in clinical result. 2 Compared to Vicarage, Scalia can last up to 36 hours, unaffected by meals, rare visual Irregularities etc. 3 Good operationally and financially positioned to enter the market. Weakness: 1 Low compound Annual Growth Rates (CARR) In Germany (3. 6%) and France (14. 8%) Much lower value than comparable countries such as the US. This may lead to low return in these markets. Brayer’s likely positioning as a â€Å"niche† drug treating diabetes along with DEED, limits the strategies that Lilly CICS LLC can explore ND employ. 3 CICS have no marketing competence to date. How much control will they realistically have marketing decisions given their lack of experience? Will their lack of marketing competence slowdown elements of the launch/ complicate processes? Opportunity 1 . Promoting to couples (both married and living together) in a comb ined campaign. 2. The high dropout rates of Vicarage after first year offers potential targeting for Lilly CICS LLC. Threats: 1 . Little evidence of market research conducted in Brazil, Canada, Mexico and Australia. 2. Competitive reaction of Pfizer could prohibit Lilly CICS LLC Clans† compete with the advertising â€Å"blitz† that Pfizer have exercised? Marketing strategy suggestion Price Since Scalia is going to face to face compete with Vicarage, we highly recommend it launch at the same price with Vicarage. It is easy for customer to accept a safer and longer-lasting DEED drug at the original price. Distribution Channels Management 1. Wholesalers: Lilly CICS LLC are in charge of manufacturing the drug, at which point they distribute he drug to wholesalers. Given the unattractiveness of the channel for wholesalers and the low margin that is obtained, a 5%increase may give Lilly CICS LLC more influence over the terms of the arrangement. This would also encourage the wholesaler to distribute more extensively and effortlessness more favorable terms such as buying back stock unsold. 2. Patients: Directly sell drugs to the patients who have DEED problem via doctors would be a very good way to reach target consumer. . Website: Sell drugs on Physician website or Patients and partner website. Promotion 1. Free sampling: Since Scalia is the direct competitor of Vicarage, send free sampling to Vicarage user would be a very good way to reach target consumer. 2. Advertisement in hospital Scalia is a safer and longer-lasting DEED medicine, patient in hospital can get more advice from doctors after they saw the advertisement. 3. Website advertisement Physician website or Patients and partner website would be a very good way to add exposure of the new product. How to cite Cialis, Papers Cialis Free Essays 1. Why was Viagra so successful? Viagra’s success was due to: * Viagra was the first orally taken drug that addressed ED. Other alternatives that had already existed in the market were: penile implants, vacuum pumps , ED injection and urethra suppository, none of them were really user friendly. We will write a custom essay sample on Cialis or any similar topic only for you Order Now * Viagra was the first affordable solution for ED, its retail price was $10/dose, whereas Caverject injection cost $25/dose, vacuum pumps $300 to $500, and the most expensive, penile implants ranged from $12,000 to $18,000. Pfizer employed advertising which reached out to all men. They featured celebrities in their ads, such as Bob Dole, Raphael Palmiero, Mark Martin. Seeing these celebrities publically confess to having ED, made men feel more comfortable in acknowledging their own ED issues and communicating it to their physicians. * Unlike injections, Viagra could be taken everyday. * Some people saw recreational usage to Viagra. * Viagra was approved by Medicaid in 11 states. * There was a huge market for ED drugs. In 1996 the number of ED prompted doctor visits was at the all time high of 1. 3 million visits. 2. Draw a perceptual map that summarizes the positioning strategies adopted by Viagra, Levitra and Cialis and evaluate those strategies. Viagra’s positioning strategy: Pfizer first started out by featuring older celebrities, like Bob Dole, trying to capture attention of their target market. Statistics showed that over 50% of Viagra’s customers were men over 50. Later, Pfizer changed its strategy and started featuring young celebrities, such as a baseball player, NASCAR driver. They wanted to show that even â€Å"manly mans† could have a problem and they also wanted to put out a message that Viagra is not only for older men but for men of all ages, who might even only have a slight problem. Basically, their message to men was â€Å"you’re not too young for Viagra†. I think this was the right move on Pfizer’s side since it expand their target market to men of all ages, at the same time maybe draw out men who didn’t feel comfortable with the subject. Levitra’s positioning strategy: Bayer and Glaxo positioned Levitra as a way of enhancing the sexual experience. It was not about the number of times a man could have sex, it was all about quality. They also wanted to educate the public about ED and about their solution to it. Their reps spent 50% more time talking to doctors about Levitra than Pfizer’s did about Viagra. This was a good positioning strategy for Bayer and Glaxo. With Levitra, coming to market after Viagra, they had to differentiate themselves somehow. And doing this from a quality angle, I believe they hit the right note with a lot of men. Cialis’ positioning strategy: Lilly Icos, after doing several years of research and seeing both, Viagra and Levitra’s performance in the market, decided to position Cialis as a stress-free, more spontaneous, fitting into an every-day lifestyle type of a solution to ED. Men didn’t have to feel stressed to perform because of the time constraints. They can live their normal lives, with Cialis kind of in the background. I believe it’s a really good strategy, given the characteristics of Cialis. People with ED want to put their problem out of their mind and not think about it. And Cialis would be the perfect solution – there’s no pressure to perform, they can have sex at their own convenience. No major changes would need to be made to their lives. 3. How can the product attributes of Cialis be translated into a successful positioning platform for the product’s launch? Cialis differentiated itself from the rest of the available ED treatments in the following ways: * Cialis took faster effect than Viagra and remained effective longer than Viagra (around 36 hours and the effect kicked in only when needed). This was a huge plus on Cialis’ side since it was so flexible. It had effect even after eating fatty foods. It could also be taken by patients who had high blood pressure, and it could be taken along with alpha blockers. The bottom line – it accommodated most everyone under most every circumstance. * Cialis had less physical side effects than its competitors, Viagra and Levitra. Outlined below are some of the different way s Lilly Icos could have positioned Cialis: * To men of any age and of any physical condition with any level of ED severity. * To men who love their routines and don’t want to change them. Emphasize on the fact that men’s partners don’t even have to know that they’re taking drugs for their condition. This might especially be important to men who start dating a new person; they might not want their partner to know about their condition, at least maybe not right away. * Can be taken before/after any type of activity: work, sports, romantic dinner out. * Can be taken by men of many different lifestyles (busy professionals, busy parents, retired, etc. ) * End benefit is that anyone with any sort of ED dysfunction can feel problem-free again! It works for any man, anywhere, anytime! How to cite Cialis, Papers