Cialis Marketing Plan

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Cialis Marketing Plan 4/11/2012 Bakr El Allali - 341654 Michiel Mak  - 345098 Asaad Dan Bayan 343160 Léopold Bailby - 343603

Transcript of Cialis Marketing Plan

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Cialis Marketing Plan

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Bakr El Allali - 341654

Michiel Mak  - 345098

Asaad Dan Bayan – 343160

Léopold Bailby - 343603

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Cialis is a new product from the joint venture of ICOS and Eli Lilly that helps people who are suffering

from erectile dysfunction. However this product has to go in a market where Viagra is already an

established name for ED sufferers and Levitra, a new drug ED drug. Cialis’ launch is very important for 

both the companies in the joint venture and everything must be done with care to assure its success.

Market Segmentation

Considering ED is the main cause for patients to use Cialis, it is important to see that age plays a very

significant role. For example at the ages of 20-39, less the 10% of the people had ED, while for

respondents of 60+ the chances of ED were between ~40%-60. A gradual increase is observed as age

increases. Thus it is evident that the market should be segmented by age. As people get older, they are

more likely to suffer from ED and thus become the target market for Cialis. Another important feature of 

people who were patients of ED is that over 80% of them had a sexual partner. The sexual partner was

also the main cause for seeking ED treatment with an average of 43% over six countries. And 70% of the

patients were married, thus it can be a target segment for the product. Thus, people with a sexual partner

are another market segment for Cialis. Geographic distribution is also an important segmentation of the

market. The United States of America are by far the highest source of income for Viagra. Considering

Viagra was the main ED drug, their market is almost the same as Cialis’ market. It is to be noted that the

family doctors and urologists were the main sources for getting ED treatment. They should be considered

when trying to gain market share.

Viagra

The main competitor of the product Cialis will be Viagra from Pfizer. It is the most widely known drug to

be used for erectile dysfunction. However, not all patients who are using Viagra are completely satisfied.

Only 25% of the patients who start using Viagra continue using it after a year. There are many complaints

and one of them is that it puts too much pressure on the couple to initiate sex, because the window of 

opportunity is only 4 hours. Additionally, Viagra’s active ingredient targets many PDE enzymes and

causes side effects, such as blue-vision. The average price of a pill is 10$ for Viagra and in most cases it

has to be paid by the patients as it is not covered by other institutions. Over 85% of the people who use

Viagra were willing to try Cialis and over 77% of the Viagra dropouts were also willing to try Cialis. The

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market size of the Viagra dropouts is however much larger than the current approximate of 3 million

users. Considering the main reasons for people to cancel Viagra can be avoided with Cialis and made

known to the public through effective marketing, even more of the dropouts might be willing to try it.

Marketing Plan

Cialis should be positioned for beat strategy of differentiation as it offers much better effects than the

current market leader, Viagra. It does not have most of the side effects as it is focused on the PDE 5

enzyme and doesn’t affect others as much. Additionally, it has a much wider window of opportunity of 

almost 36 hours, thus removing the pressure of having immediate sex. The sexual partner doesn’t need to

feel like she has to engage in immediate intercourse just because the drug was taken. It can be taken one

day and be used for the second one. Thus, it can even be taken discretely without the sexual partner’s

knowledge, nullifying the pressure effect. One study showed that 70% of the most important

characteristics are safety and efficacy, while only 10% is duration. However, considering the main

reasons of dissatisfaction with Viagra, duration might have a much higher percentage of importance. To

sum up, it is important to focus on proving the importance of duration and the clear superiority of Cialis

over both Viagra and Levitra in this respect, subsequently sending this message to both physicians and

patients. Additionally, it important to also show the fact that Cialis has a much shorter list of side effects.

As concerns, Levitra, it has chosen a niche strategy and it focuses on people with diabetes. Moreover, it

has only a weak influence in the US, where the strongest market for ED lies. It is thus not as important as

Viagra in terms of competition. GMSO would have to organize the market planning. Considering much

research is already done, it is important to focus on transmitting the message to the physicians and

potential patients. It should focus almost half its resources for gaining the trust of the physicians and just

as much for the patients. Considering it is following a beat strategy, the price should be around the same

price of Viagra or even higher. However, considering it is important to gain market share, many

promotions could be offered and also a discount for continued use of the product. Considering Pfizer has

the biggest share of the market and has a lot of resources, its response can be significant. It is important to

keep our marketing strategy as efficient and effective as possible, because the product is clearly a better

choice and it must be made known to the end-users. Levitra is also an important drug for the companies

involved, however it does not fix the main problem of Viagra, duration and thus it is not as big of a threat.

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 Appendix

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BibliographyMorales A, G. C. (1998). Clinical safety of oral sildenafil citrate (VIAGRA) in the treatment of erectile

dysfunction. International Journal of Impotence Research.

Opek, E. (2010, July 28). Product Team Cialis: Getting Ready to Market. Harvard Business School .

Wikipedia. (2012, April). Sildenafil . Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Sildenafil