Cialis Case Study
Do not be Shy! No Personal Questions! BUT…..you know…… y
Background
•Pfizer launched Viagra 1998 •Treatment of erectile dysfunction (ED)(Male impotence) (ED)(Male impotence) •30 million US, 150 million men wo rldwide suffer(50% of all between age 40 and 70) •Immediate success – 600000 pres criptions filled in first month criptions filled in first month •Viagra set back – death reported •Viagra regained confidence •1.5 billion sales (2001)
Pioneer vs New comer
Strength S h Weakness W k •Long onset time (30‐60mins) Long onset time (30 60mins) •Short duration (4hrs) •Side effect with high fat meal •Bad history of causing death y g •Hard to shift technology or customer needs •Depressing and ugly color •Buyer switching cost •Side effect with nitrite
Viagra
•Pioneer in market Pioneer in market •Proven effectiveness •Mature market channel •Preemption of brand p awareness
Cialis
•Shorter onset (30mins) •Longer duration (36) •No side effect with high fat No side effect with high fat meals or alcohol •New, fresh, easy image build up
Value is the key
Market Segment Target market Product positioning Product Place Promotion
Customer acquisition C t i iti Customer Retention
Creating Value
Sustaining Value
Price
Capture Value
As a New Comer
Segmenting the market g g Positioning the product Communicating the product value g p Pricing the product Market response p
Segmenting the market S ti th k t
Age Current Viagra users Viagra dropouts Have never used Viagra
Segmentation: Age
Average ED patient is in his 50s with over 80% having a sexual partner. Less than half of those who perceived th ey had ED consulted a doctor.
Young people: Believe it is temporary Old people: Believe it is natural aging process The rest: Feels embarrassed and believe it is temporary
Segmentation: Current Viagra Users
Willing to try new medicines Care about the duration Small segment S ll t willing to continue ED treatment willing
Background
•Pfizer launched Viagra 1998 •Treatment of erectile dysfunction (ED)(Male impotence) (ED)(Male impotence) •30 million US, 150 million men wo rldwide suffer(50% of all between age 40 and 70) •Immediate success – 600000 pres criptions filled in first month criptions filled in first month •Viagra set back – death reported •Viagra regained confidence •1.5 billion sales (2001)
Pioneer vs New comer
Strength S h Weakness W k •Long onset time (30‐60mins) Long onset time (30 60mins) •Short duration (4hrs) •Side effect with high fat meal •Bad history of causing death y g •Hard to shift technology or customer needs •Depressing and ugly color •Buyer switching cost •Side effect with nitrite
Viagra
•Pioneer in market Pioneer in market •Proven effectiveness •Mature market channel •Preemption of brand p awareness
Cialis
•Shorter onset (30mins) •Longer duration (36) •No side effect with high fat No side effect with high fat meals or alcohol •New, fresh, easy image build up
Value is the key
Market Segment Target market Product positioning Product Place Promotion
Customer acquisition C t i iti Customer Retention
Creating Value
Sustaining Value
Price
Capture Value
As a New Comer
Segmenting the market g g Positioning the product Communicating the product value g p Pricing the product Market response p
Segmenting the market S ti th k t
Age Current Viagra users Viagra dropouts Have never used Viagra
Segmentation: Age
Average ED patient is in his 50s with over 80% having a sexual partner. Less than half of those who perceived th ey had ED consulted a doctor.
Young people: Believe it is temporary Old people: Believe it is natural aging process The rest: Feels embarrassed and believe it is temporary
Segmentation: Current Viagra Users
Willing to try new medicines Care about the duration Small segment S ll t willing to continue ED treatment willing