Mr. Andrew

Topics: Marketing, Erectile dysfunction, Strategic management Pages: 6 (1851 words) Published: May 26, 2013
Product Team Cialis: Getting Ready to Market

Case Study Analysis


In a world where levels of Erectile Dysfunction (ED) are undergoing a surge of concern, are projected to increase, and Viagra® dominates the market for the treatment of this symptom, Cialis® -Lilly ICOS LLC.’s new brand-faces and increasingly difficult task: to successfully compete in the market. Cialis®’ marketing team’s primary problem concerns how to compete in this market -particularly how to position against the market leader-, determining the best way to segment the market and which audience to target. Fronting this problematic, the following recommendations are further elaborated upon: * Cialis® should focus on a beat strategy

* Cialis® should focus the marketing efforts partially on the female audience * Cialis® should invest in competent sales teams
These recommendations will allow Cialis®’ product marketing team to develop a winning marketing strategy that will positively guide them in their market-entry. In addition, this will aid them sufficiently to differentiate Cialis® from its competitors and will allow them to capitalize on a significant part of the ED market by using a positioning unique to this market. The above given that the shifting market undercurrents demand not only new groundbreaking product solutions but also marketing understanding to seize the targeted stakeholders.

Cialis®’ marketing team’s problem concerns how to compete in a dominated ED market -particularly how to position against the market leader Viagra®-, determining the best way to segment the market and which audience to target. Specifically, the team identified three possible strategies for launching the product; a niche strategy, compete strategy and beat strategy, among which they seek the best one.

Identifying the problem shown in the case, and Cialis®’ unique product features, it has good chances of becoming successful even though it is entering a segment where Pfizer’s Viagra® is the undisputed market leader. In this context, a marketing strategy must be designed, focusing particularly, on which groups to target and which positioning strategy to choose. For this the following situation analysis is elaborated: Company – Lilly-ICOS LLC. is a company based on a joint venture that is planning on entering the pharmaceutical industry’s ED category, with a product called Cialis®. It “promising clinical results” that are going to improve the ability for men suffering from ED to respond to sexual stimulation for a larger period of time than the ones available from its competitors, without significant side effects (See Appendix 1; SWOT Analysis). Collaborators – Lilly-ICOS LLC. is a joint venture, and strong merge of competencies between ICOS, a small biotechnological startup (with no FDA registration experience and no marketing capabilities) and Eli Lilly Company, a large pharmaceutical company with strong competencies in developing innovative quality of life medicines. Customers – The target market chosen by the company consists of men with ED, which are seeking for the most effective and safe solution for their problem in order to improve physical intimacy, and also psychological anxiety problems that arise from it. Even though the decision makers are men, partners can help them realizing their needs and the consequences that it can have in their daily lives (See Appendix 3). Competitors –Cialis® has to contend with Levitra® and market leader, Viagra® which has the strongest brand recognition of any pharmaceutical brand in the world. Pfizer is also known for fierce and sustained marketing campaigns post launch (exceptionally high marketing budget and a strong financial muscle) and largest sales force in industry, posing a threat to new entrants. Levitra® has the potential to be considered an important competitor even though its presence is still very weak in this market, but is expected to...
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