Cialis

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 | [email protected]

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

mailto:[email protected]


Fall Term 2008 Martin Wallin | Strategic Management & Innovation | [email protected] 3





Agenda

Introduction and practicalities

Case work

Wrap-up (in HG F3 at 16.15)

5


Introduction and practicalities

Product Team Cialis: Getting Ready to Market

6


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


Background: New entrants

Cialis from Lilly ICOS LLC

Levitra from Bayer

8


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

9


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

10


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)

11


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)

12


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)

13

Marketing analysis

‣ Customer

‣ Company

‣ Competition

‣ Collaboration

‣ Context

The 5 Cs

Wrap-up


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







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

16


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

17


Segmentation criteria

Demographics Age Income Education

Viagra usage status Current Viagra users Viagra dropouts Never tried Viagra

Benefit of duration

18


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

19

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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

20


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

21


Communication strategy

Communicate to whom? Patients Partners Doctors Insurance companies Regulators Media

22


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

23


Bottom line

Positioning is not what you do to the product but what you do to the mind of the consumer!

24


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



Cialis

Documents

jan henrik sieg

strategic management

hilti6 price

15 introduction

hg f3

chcase practicalitiesagenda13

renato sydler

identify information