Cialis Case Study

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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 to continue ED treatment

Segmentation: Viagra Dropouts

Care more about onset, this may  Care more about onset this may coursed by the side‐effect of Viagra. Duration could be the factor but  may not be the critical. Small segment

Segmentation: Have never used Viagra

Large segment Duration not important, but safety b f Need further motivation and enco Need further motivation and enco uragement to try.

Positioning & Pricing

36 is much better than 4? Your value may not value your customers l l Any other factors? Sexual preference .etc Pay more for better performance?

Positioning – research & analysis
Sexual Desire in 24 hrs

Male Female

Survey by

Positioning – research & analysis (cont)

Place preference
1% 9% 14% 52% 24% Sofa Bathroom Kitchen others Bedroom

Survey by

Recommendation R d ti
Segmentation Product Positioning Communicating Product value Pricing Implementation

Segmentation - Recommendation

Initial Launch focus US market Men between 45‐ 74 with sexual partner (average US ED p atient is 58 yrs old)  &    spouses/ sexual partner B2B strategy to free PCPs from awkwardness of addres sing and prescribing ED medication g p g • Pro – allows approaching US segment of almost 10Mn men (estimation abo ut potential customers considering current Viagra users/ Viagra dropouts and o t t ti l t id i t Vi / Vi d t d verall ED patients), 

•Con ‐ potential threats of going into direct competition to Viagra

Positioning - Recommendation
Focus on product attributes that make Cialis unique: 

longer duration, shorter onset(as fast as 30min + up to 36hrs). The flexibility th at brings to couples. at brings to couples

Psychological implication ‐ Cialis as the pill for couples who helps regain a norm al and healthy sex life (no pressure to perform for both patient + partner).

Fit for different Sexual preference and desire remind and encourage p Fit for different Sexual preference and desire remind and encourage p...
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