Transcript
Fall Term 2008
Marketing I - Block seminar 2 Product team Cialis: Getting ready to marketDr. Martin WallinJan Henrik SiegPeter JägerRenato Sydler
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Course Overview
2
Exam
09.12
.200
8
25.11
.200
8
11.11.
2008
28.10
.200
8
14.10
.200
8
Guest Lecture 1: EA
30.0
9.20
08
1 Introduction
16.9
.200
8
23.0
9.20
08
21.10
.200
8
04.11
.200
8
18.11
.200
8
2 Segmentation-Targeting-Positioning
3 ProductBlock Seminar 1
Block Seminar 2
4 Promotion
Guest Lecture 2: UBS 5 Place
Guest Lecture 3: Hilti
6 Price & Summary
07.10
.200
8
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch 3
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch 4
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Agenda
Introduction and practicalities
Case work
Wrap-up (in HG F3 at 16.15)
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Introduction and practicalities
Product Team Cialis: Getting Ready to Market
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Background: Viagra
Pfizer launched Viagra 1998
Treatment of erectile dysfunction (ED) (male impotence)
150 million men worldwide suffer(50% of all between age 40 and 70)
Immediate success - 600 000 prescriptions filled in first month
Viagra set back - deaths reported
Viagra regained confidence
$ 1.8 billion sales (2007)7
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Background: New entrants
Cialis from Lilly ICOS LLC
Levitra from Bayer
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Background: First mover vs. Second mover
Introducing a new product on a market dominated by one player
First mover advantage Technological leadership Preemption of assets Buyer switching costs
First mover disadvantage Free rider effects Resolution of technological or market uncertainty Shift in technology or customer needs Incumbent inertia
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
The Cialis case
How to segment the market and position a follower product Viagra well positioned and well-known Cialis unknown
How to communicate to target audience Patients Partners Doctors
How to price the new product
Competitive response from Pfizer
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Case practicalities
Agenda13.15 Introduction & Grouping13.40 Case workGroup 1: HG F3 (Martin Wallin)Group 2: HG F33.5 (Jan Henrik Sieg)Group 3: LFO G 25 (Peter Jäger) Group 4: ETZ E81 (Renato Sydler)
15.20 Case presentation (5 min / group)16.15 Wrap-up (in HG F3)16.30 End (around)
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Solving a case (90 minutes)
10 minutes: browse the case (individual)
10 minutes: read questions, think about solution (individual)
10 minutes: identify information (individual)
20 minutes: information sharing (group)
10 minutes: identify information (individual)
15 minutes: information sharing (group)
15 minutes: prepare presentation (individual/group)
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Case practicalities
Agenda13.15 Introduction & Grouping13.40 Case workGroup 1: HG F3 (Martin Wallin)Group 2: HG F33.5 (Jan Henrik Sieg)Group 3: LFO G 25 (Peter Jäger) Group 4: ETZ E81 (Renato Sydler)
15.20 Case presentation (5 min / group)16.15 Wrap-up (in HG F3)16.30 End (around)
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Marketing analysis
‣ Customer
‣ Company
‣ Competition
‣ Collaboration
‣ Context
The 5 Cs
Wrap-up
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Market segmentation
Target market selection
Product and service positioning
Adopted from Silk (2006)14
Marketing mix
‣ Product
‣ Place
‣ Promotion
The 4 Ps
‣ Price
Customer acquisition
Customer retention Pr
ofits
Creatingvalue
Capturingvalue
Sustainingvalue
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch 15
Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Launching a new drug as a second mover on a market dominated by one main player
Segmenting the market
Positioning the product
Communicating the product value
Pricing the product
Competitive response from Pfizer
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
What have we learnt?
What criteria to use when segmenting a market for a new product
Market with existing player introduces new layer of segmentation: familiarity and usage of existing brand
Objective product attribute improvements do not directly translate into perceived benefit in all target segments
Question traditional thinking that product dissatisfaction opens up for switching products
What data can be relevant to make informed marketing decisions
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Segmentation criteria
Demographics Age Income Education
Viagra usage status Current Viagra users Viagra dropouts Never tried Viagra
Benefit of duration
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Segmentation: Age
Strong correlate between age and reason for not seeking treatment Young patients: Temporary
condition Old patients: Natural aging
process The rest: Embarrassed and
temporary condition
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Segmentation: Usage status
Current Viagra users Experience with ED Good grasp of duration attribute Most willing to try new drugs that offer improvement in key dimension Smallest segment
Viagra dropouts Some experience with ED Duration probably not key dimension for dropout Maybe hard to treat group
Viagra never used Very large segment, but no usage familiarity Duration not important, but safety important
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Positioning and Pricing
Vertical positioning 36 is much better than 4?
Horizontal positioning Attitude towards sex: Wild, naughty activity vs. romance
Viagra is priced at $10 (without health coverage)
Pay more for better performance?
If benefit is positioned more horizontally than vertically, unclear if higher charge is appropriate
If affluent consumer are targeted, higher price OK
If going for broad appeal, consider lower price
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Communication strategy
Communicate to whom? Patients Partners Doctors Insurance companies Regulators Media
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Summing up
How to segment the market and position a follower product
How to communicate to target customers
How to price the new product
Competitive response from the first mover
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Bottom line
Positioning is not what you do to the product but what you do to the mind of the consumer!
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Fall Term 2008 Martin Wallin | Strategic Management & Innovation | mwallin@ethz.ch
Course Overview
25
Exam
09.12
.200
8
25.11
.200
8
11.11.
2008
28.10
.200
8
14.10
.200
8
Guest Lecture 1: EA
30.0
9.20
08
1 Introduction
16.9
.200
8
23.0
9.20
08
21.10
.200
8
04.11
.200
8
18.11
.200
8
2 Segmentation-Targeting-Positioning
3 ProductBlock Seminar 1
Block Seminar 2
4 Promotion
Guest Lecture 2: UBS 5 Place
Guest Lecture 3: Hilti
6 Price & Summary
07.10
.200
8
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