Cialis case study

What r the most relevant dimensions along which to segment the patient market for ED market? o Demographic dimensions - Age (60+ and 50-59 groups), Employment (full time and Retired), Marital status (married or living together), have sexual partner, yearly income (low for Europe and medium & high for US), education (post graduate in US and primary & secondary in europe) o Viagra dropouts people who discontinued to using Viagra. By end of 2001, 6 to 7 million Viagra dropouts compared to 3 million Viagra current users, which indicates a fertile market for cialis as a substitution to Viagra. Also Table B shows high willingness to try it across countries. o Compared to Viagra it provides more values like faster onset time, longer duration of effect, no side effects like in case of Viagra and lack of interaction with high-fat meals. (exhibit 10) o Comorbidities associated with ED o To whom it should be targeted for marketing: Doctor - As cialis is a prescription drug. Also Urologists and family doctors (exhibit 7a) Patient - As it is a quality-of-life drug, doctor alone will not ensure success. Also, patient awareness about ED is also important. (exhibit 7b) Partner of ED patient as partners impact is high in perception (perceive the ED problem) and evaluation (intend to refill prescription) phases of HCTM. (exhibit 7b) Print media (exhibit 7b) Drugstore (exhibits 9b)

Of the segments identified, which would u target initially with cialis? o Viagra dropout o Demographic segments - Age group of 50-59 and 60+ having sexual partner, either full time employed or retired, married or living together, in US mid and high income group and in Europe low income group o Urologist and family doctor Devise marketing plan to launch cialis and anticipating competitive reaction. o Threat of new entrant high entry barriers (like FDAs approval) dont allow many competitor in ED treatment market. So cialis can be a new threat to Viagra in its monopoly type market with a better drug.

o Threat of substitute products Till cialis launch, Viagra has no substitute in ED treatment market. o To win share of market, cialis must win share of mind and share of heart from Viagra. As there r many Viagra dropouts and also current users like to try cialis with high willingness, cialis initially try to capture share of mind and heart market which further brings share of market to them. For that, they should provide good product awareness (through print media and TV-Radiomovie commercial), product quality (values like less onset time, etc), availability (local as well as big drugstore and direct from doctors), technical assistance (urologist and family doctors). o Treat Viagra dropouts and less satisfied users as valuable and not vulnerable customers o Act as market challengers not as market followers or nichers. o Price should be same to Viagra or may be little more (5 to 7%), as there r only two competitors. Also, low price compared Viagra may send signal of law quality product compared to that of Viagra to the consumers in such quality of life product. Also, Pfizer can reduce its prices to compete on price front after enjoying high margins (gross margin - 90%) for number of years and that will ultimately reduced cialis earning and profit and delay breakeven phase. If high price is kept to take advantage of better values then may be not bought by all customers as no medical insurance for it. o Viagra has settled in its product life cycle and now doctors revealed a certain degree of contentment with Viagra. Also Pfizer is a big pharmaceutical player who can spend more on R&D, marketing and advertisements. So to compete them on that front is not a good option. So, during marketing, company must focus on better values provided by cialis. o Levitra provides less threat as its segment is target to diabetic patients with ED and also it has tied up with glaxosmithcline for US market, a new market for them. o US market is the main one with more than 60% share in global market and so it is most heavily advertised. So company should considered advertisement as a one of the major tools and spare good budget for it. Also decide the theme based on high energy level i.e may be sports related. Also hire a celebritie corresponding to final segment. o