Cialis - Harvard Business School Case: Product Team Cialis: Getting Ready to Market
1.Problem StatementLilly- ICOS LLC is about to launch a new and innovative product intended to help men suffering from Erectile Dysfunction (ED). Because of the unique product features, Cialis - the product - 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, Lilly- ICOS LLC must decide on a marketing strategy, in particular which groups to target and which positioning thus which communication strategy to choose.
2. Situation Analysis (refer to Exhibit 1+2)Lilly- ICOS LLC is a joint venture between ICOS, a small biotechnological start up (no FDA registration experience and no marketing capabilities) and Elli Lilly Company, a large pharmaceutical company with strong competencies in developing innovative quality of life medicines.
Competitive product Viagra has strongest brand recognition of any pharmaceutical brand in the world, practically the synonym for ED (product well established in market, dissolved taboo). Pfizer also known for fierce and sustained marketing campaigns post launch (exceptionally high marketing budget) and largest sales force in industry.
Competition from Bayer's Levitra not relevant, expected to mainly target niche market of diabetics.
Average ED patient is in his 50s with over 80% having a sexual partner (estimation 30 Mn in US, 150 Mn men worldwide). Less than half of those who perceived they had ED consulted a doctor, for different reasons: younger men more embarrassed, older men believe its normal consequence of aging, therefore reluctance for seeking treatment. Turns from physical condition to psychological (severe relationship problems). Spouse or sex partner most influential in convincing patient to get treatment for ED → focussatisfaction level with Viagra varies, number of dropouts increasing, interest in trying alternative rising→ large market potentialnot all doctors have same knowledge about ED, urologists know more, PCPs are not
2. Situation Analysis (refer to Exhibit 1+2)Lilly- ICOS LLC is a joint venture between ICOS, a small biotechnological start up (no FDA registration experience and no marketing capabilities) and Elli Lilly Company, a large pharmaceutical company with strong competencies in developing innovative quality of life medicines.
Competitive product Viagra has strongest brand recognition of any pharmaceutical brand in the world, practically the synonym for ED (product well established in market, dissolved taboo). Pfizer also known for fierce and sustained marketing campaigns post launch (exceptionally high marketing budget) and largest sales force in industry.
Competition from Bayer's Levitra not relevant, expected to mainly target niche market of diabetics.
Average ED patient is in his 50s with over 80% having a sexual partner (estimation 30 Mn in US, 150 Mn men worldwide). Less than half of those who perceived they had ED consulted a doctor, for different reasons: younger men more embarrassed, older men believe its normal consequence of aging, therefore reluctance for seeking treatment. Turns from physical condition to psychological (severe relationship problems). Spouse or sex partner most influential in convincing patient to get treatment for ED → focussatisfaction level with Viagra varies, number of dropouts increasing, interest in trying alternative rising→ large market potentialnot all doctors have same knowledge about ED, urologists know more, PCPs are not