Getting Ready to Market
Q1. In 2002, Viagra was the only clinically proven, FDA approved medication for Erectile Dysfunction (ED) on the market (Cialis – Dec 2003, Levitra – Sept 2003). Viagra had the highest brand recognition of any pharmaceutical product on the market. It had generated over one billion dollars in annual sales for 3 consecutive years since its introduction in 1998. In 2002, Viagra accounted for 5.3% ($1.73 billion) in sales of Pfizer’s annual Revenue of $32.37 billion, compared to 4.3% ($1.3 billion) of total revenue ($29.5 billion) in 2000. Viagra was expected to continue to lead the ED market due to its unsurpassed medical profile. Future Viagra sales growth was expected to come from increased patient presentation and physician diagnosis. Direct-to-consumer advertising has been effective in encouraging more customers to see a physician about ED. Even though Lilly ICOS and Bayer were in the process of bringing their products to market, Viagra was the front-runner and expected to retain its advantage in the ED market. A short half-life of approximately 4 hours, interactions with fatty foods, blue visions, and interactions with other medications like nitrates, are considered some of the weaknesses of Viagra Q2. Our strategic Market segmentation for ED treatment is based on the types of population, by age and sex (socio demographic segmentation).
The options available for market segmentation are: the concentration strategy, multi segment strategy, usage segmentation, and cohort segmentation.
We believe Cialis should target the following segments: Usage segmentation - Lilly ICOS has the advantage of knowing which group is using ED medications (data from PCP’s, urologists and pharmacies). By using this data readily available, they can not only target the current users, but also the dropouts and dissatisfied customers. A large percentage of Viagra users did not refill the prescription. A...