Cialis Case Study free essay sample

What are the most relevant dimensions along which to segment the patient market for ED treatment (i. e. , what are the different ways you could divide it up)? Of the segments identified, which would you target initially with Cialis? With a potential total of 150M men worldwide (30M in the United States alone) suffering from medical Erectile Dysfunction, there is a wide range of factors identified as the potential causes: * Caused my other medications * Medical diseases Lifestyle factors (Smoking, Obesity, Alcohol) * Psychological effects (Stress, Depression are 20% of ED cases) * Age With the launch of Cialis, the focus should be put on targeting the two groups who can most benefit from the product in more than a single way. While solving the primary purpose of Cialis holds the key to the drug’s release and sustained success, the impact at release can have a greater impact to increase brand awareness. 50% of men between ages 40-70 suffer from ED, and this age bracket should be the primary target upon release. Unlike other segment groups who may be difficult to target such as those with Lifestyle factors involved, seeking out men in a particular age bracket is fairly straight forward. In addition, those with Psychological Effects also make up 20% of the market for ED medication, and the fear of interference with drug interactions is not nearly as high as those with Medical Diseases or ED caused by Medication itself. The positive effects being caused by successful sexual stimulation will also presumably positively affect stress and depression as well in these cases. It was evident in the United States by the end of the 2nd quarter 2002 that Viagra sales are not slowing down, with gross margins topping 90%. Pfizer employing more than 30,000 salespeople to push their products with a budget of over $100M for Viagra alone is testament to their focus on marketing. Part of the failure of their intense marketing is their seemingly inability to target their market effectively, as the following statistics show a weak point in their planning: Per every million medical patients who inquire about the use of Viagra: * 30,000 had untreated diabetes * 140,000 had untreated high blood pressure 50,000 had untreated heart disease Whether intentionally or not Pfizer seems to be marketing Viagra to the masses through their marketing machine, as opposed to targeting healthy adults who suffer from ED. In addition, after one year of treatment with Viagra only 25% of patients continue to refill their prescriptions. This may correlate to Viagra being a short-term fix with patients, as opposed to a true treatment of ED for an extended period of time. I would characterize the Viagra brand as being one in which the patients clearly are looking for a different alternative, but are simply overwhelmed by the Pfizer branding nd household name Viagra comes with at this point. Positioning: 3. What would be the most effective way to position Cialis in the marketplace, relative to its competitors? While Viagra was first to market and its total sales have been enormous, they are hampered by reports that 76% of ED patients would be open to a new treatment. While they continue to find more patients effectively, they are not able to keep them for extended periods of time. Levitra was released by Bayer an alternative to Viagra, but quite simply is to similar and reported a 2% decrease in sales in 2001, and a quarterly net-loss as well. While Levitra was thought to target a niche group of men with diabetes related illness, for which it was safer than Viagra, it did not materialize to creating its own segmented market. Cialis should be positioned as a ‘Game-Changer,’ and not so much as a competitor. While the two drugs share the common goal of treating ED, they accomplish it in a much different manner and Cialis should be touted as an upgrade from the first drug of its kind to enter the market in Viagra. Viagra Facts: * Effects last 4-6 hours after dosing * Higher doses taken Effects nullified if taken with high-fat meal leading to slower onset time Cialis Advantage * Up to 36 hours of effectiveness * Lower dosing * Not affected by food intake * Comparatively favorable safety profile * Not been linked to deaths Cialis marketing has to take these advantages into account when going to market by playing off of Viagra’s weaker effects and potentially less flexible use by the patients. Marketing Mix: 4. What marketing mix activities should accompany the launch of Cialis? a. What would be the most important message to communicate to the target patients? To physicians? To partners? The most important message to communicate is going to be that Cialis covers more ground than Viagra and Levitra do. It lasts longer, is taken in smaller doses, isn’t impact by food and timing, and has not been linked to any serious complications as Viagra has. Cialis lasts for up to 26 hours, as compared to 4-6 hours by its competition. The flexibility to not be forced into a small time to be intimate is a major marketing advantage. The facts say that more than 75% of Viagra users want a different option, and this is it. b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each? Physicians feel that Viagra is a suitable option that they are comfortable with. As such, Cialis should make their primary method of marketing as having as much contact with the potential patients as possible through television and print advertising. The idea here would be to alert the patients that there is a new alternative out there and that it has major advantages over its predecessor. Creating inquiring patients to go to their doctors asking about Cialis should be the goal. At the same time, Cialis should not (And can’t afford) to attempt to duplicate Viagra’s allocation to send monstrous sales teams out to doctors to win them over through presentation. This works in part for Viagra because of Pfizer’s other products being industry mainstays, such as Lipitor. Cialis should allocate to inform doctors of their products in a limited manner through this method, but should rely on discounting initial prescriptions and offering sampling rebates through pharmacies in order to win business. With 75% of Viagra users looking for an alternative, letting them know that drug is now here and available is the approach that should be taken; as they will initiate their interest thereafter with their physicians. c. How would you price Cialis? (assuming no health care coverage) What type of promotions would you offer? Since ED medication has been primary labeled as a Quality of Life optional medication by insurance companies, the price of Viagra averages about $10 per pill. The chart below shows that the majority of people has to pay the full amount out of their pockets, or get some shared costs due to discounts, coupons, and very limited insurance coverage. Because ED is a long-term issue for most men, free samples extending up to a month’s worth of pills should be given for a first-time user. This is to both tap into Viagra’s patient base by taking the money out of the equation during the trial period, but also to garner the interest of new users of ED medication. I would Price Cialis at $15 a pill because of the competitive advantages it has over Viagra in most categories. While the common opinion may be to offer a â€Å"Clean Sweep† with a better product that is safer and costs less, it limits the future ability to maximize gross revenue. Cialis is the better product and should be marketed as such in every way. Competitive Response 5. What competitive response do you anticipate from Pfizer? From Bayer-GlaxoSmithKline? Bayer’s Levitra will respond to this by attempting to be an intensely niche-based medication, strictly for men with Diabetes complications. It would be unwise with their already limited patient base and financial limitations to try to complete as a full player in this competition. They may be better off simply conceding in most aspects and targeting that patient base through physician education. Viagra will no doubt unleash their $100M + marketing machine to keep their market share and their Number One spot with physicians. With their past experience using celebrities to sell their product, more of the same should be expected; and should not be duplicated by Cialis. While Cialis should battling to be the alternative, Pfizer will be expected to advertise as if there is no alternative to Viagra worth speaking about.