Marketing Group Marketing Slides_Final[PUBLISH]

1. CIALIS CHEE LIUNG WUN LIM SHIEH CHERN NG YEE JIE TERRENZ LEONG WINNY LOW

2. Video Video viewing is intended for this slide. The video clip is stored in the CD named Cialis.wmv.

3. Introduction A group of marketing strategies & research project to study undertaken at Eli Lilly to identify one of the core product Cialis, by evaluating the product from marketing perspective, issues, challenges and new targets for Cialis. To improve Cialis current market scenario as Market Challengers & take over the Market Leader position. Recommendations on solutions and remedies on the most urgent and crucial challenges.

4. Content Team Members The Company Eli Lilly The Product - Cialis Erectile Dysfunction (ED) The Current Market Scenario 1. Introduction Product Price Promotion Place / Distribution People 2. Current Marketing Mix 5 Ps SWOT Analysis Competitors Analysis Market Share Analysis 3. Value-Added Analysis Market Segmentation Identifying Target Market for Cialis 4. Market Segmentation Product Price Promotion Place / Distribution People 5. Recommendations Conclusion 6. Conclusion

5. Introduction

6. Team Members Chee Liung Wun 2821927 Lim Shieh Chern 2821959 Ng Yee Jie 2821942 Terrenz Leong 2821913 Winny Low 2821920

7. The Company - Eli Lilly & CoAboutUs Global, research-based pharmaceutical company and one of the world's largest corporations. Origin Founded in 1876 by a pharmaceutical chemist, Eli Lilly. Global headquarter in Indianapolis, United States Mission To makes medicines that help people live longer, healthier, more active lives

8. Eli Lilly & Co Today, Global employees number approximately 40,000, and its medicines are marketed in 143 countries. Major research and development facilities in 8 countries and conducts clinical trials in more than 50 countries. The 10th largest pharmaceutical company in the world and have steadfastly remained independent, but not isolated .

9. Senior Management

10. The Product Cialis Introduced in 2003 For Erectile Dysfunction (ED) Main Market Challenger to Pfizer's blockbuster Viagra Work as fast as 30 mins & maintains an active period of 36 hours Available in more than 60 countries & more than 10 mil patients treated successfully

11. Erectile Dysfunction (ED) Repeated inability to keep an erection firm enough for sexual intercourse and reproduction - aka "impotence- stress, relationship problems, self-esteem. Most men embarrassed to talk ED 70% cases not diagnosed More common in older men, can occur at any age: 40-year-old: 5% 65-year-old: 15-25 % Estimated: 1.68 million Malaysian men >40 years experiencing ED. In March 1998, FDA approved Viagra. Since then, tadalafil (Cialis) and vardenafil hydrochloride (Levitra) also approved.

12. Current Market Scenario Currently only 3 major players: 1) Viagra - Pfizer (>50 %) 2) Cialis - Lilly (40 %) 3) Levitra Bayer (8 %) Regulated by Sales of Drug Act (MOH) Can only be sold in Pharmacies, Hospital and Clinic with prescription. Huge Market High incidence of ED and widespread lifestyle misuse of ED drug (performance enhancer X genuine ED)

13. Current Market Scenario Many unlicensed online pharmacies selling direct. Parallel imports, dealers of other illegal generic or counterfeit products.

14. Current Marketing Mix 5 Ps

15. Product In the Malaysia market, the only dosage form for Cialis is the 20 mg preparation. All others relevant attributes to product features among the 3 major brands are not much different. The key selling point for Cialis edged over its 2 competitors is duration effect of 36 hours.

16. Branding Currently, the brand equity is leveraged on the strength of Eli Lilly as an ethically company to uplift its profile. Well known in pharmaceutical industry add confidence on Cialis potential for customers.

17. Packaging Hologram sticker on the blister pack. Carton box with Lilly logo to confirm the genuinely. To avoid counterfeit products flooded in the market. Unique almond shape tablet.

18. Labeling Cialis is prescription drug and therefore the labeling is focusing on the safety of consumers. Potential risk associates with Cialis must be approved by FDA (US Food & Drug Administration). Potential risk of sudden hearing loss with ED drugs displayed prominently.

19. Price Having strong competition from Viagra & Levitra. Cialis adopted Competitive Based Approach in price setting. Cialis is using Market Penetration as the pricing strategy. Discount Allowance free trial pack that attached with normal packing as bonus to new patient Promotional Price offer new dealers with substantial promotion samples to lower their average cost when making initial purchase for stocking.

20. Promotion Personal Selling Personal Selling by sales representative to respective reselling segments (Pollitt, 2004). Advertising A&P to reputable periodic and medical magazines. Public Relations Use of Public Relation figures like prominent urologists to provide reliable testimonies. Giving a lot of samples to General Practitioner (GP) & hospitals for trial testing to potential patients. Online Marketing Established an official web site to provide medical information. Sales Promotion The "Cialis Promise" Lilly gives men three free tablets of Cialis. If not satisfied Lilly will pay for three free tablets of Levitra or Viagra.

21. Promotion

22. Promotion

23. Place / Distribution The current Place / Distribution efforts by Cialis are as follows: Personal selling by appointed distributor to General Practitioner (GP) Hospitals Pharmacies Regional marketing and sales support offices

24. Place / Distribution The Conventional Marketing Channel (official channel). A preferred traditional distribution channel, mostly recommendation through word-of-mouth and good self- experience of Cialis. Eli Lilly Cialis Zuelleg Distributor Doctor / GP / Pharmacy Patients

25. Place / Distribution Hybrid Marketing Channel Networks (multichannel) Facing challenges from unlicensed pharmacy online website and parallel importer (PI). No effective enforcement available to ward off the illegal sellers at this moment. Samples of online purchase of CIALIS

26. People The current People efforts by Cialis are as follows: Engaged the prominent urologists to conduct seminars to educate and promote Cialis. Engage Train and equip the sales personnel with best selling tools to deliver long term positive sales performance. Train To work closely with the GP/Hospitals/Pharmacies who are actually distributors and able to convince and sell effectively by word-of-mouth. Associate Continuous awareness to maintain the philosophy of Eli Lilly alliance-management process being innovative & strategize: FIND IT GET IT CREATE VALUE! Awareness

27. Value-Added Analysis

28. SWOT Analysis Strengths and Weaknesses

29. SWOT Analysis Opportunities and Threats

30. Competitors Analysis Product Name Viagra Levitra Cialis Generic Sildenafil Vardenafil Tadalafil Manufacturer Pfizer Bayer GSK Lily Icos Approval Date 27 Mar 1998 9 Aug 2003 21 Nov 2003 Effective period up to 4 hours up to 6 hours up to 36 hours Time taken before effect 30 minutes 25 minutes 30 minutes Common side effects Headache, facial flushing, altered or bluish vision Headache, facial flushing Headache, myalgia dyspepsia or upset stomach, back pain Recommended consumption Empty stomach With food but limit alcohol With food but limit alcohol Spokesperson Baseball star, Rafael Palmeiro Football star, Mike Ditka None

31. Market Share Analysis U.K. (2004) 21% U.K. (2005) 26% U.S.A. (2004) 20% U.S.A. (2005) 23% Malaysia (2004) 35% Malaysia (2007) 42% Viagra 73% Levitra 6% Viagra 66% Levitra 8% Viagra 68% Levitra 12% Viagra 59% Levitra 6% Viagra 65% Levitra 12% Viagra 50% Levitra 8%

32. Market Segmentation

33. Market Segmentation Geographic MARKET SEGMENTATION VARIABLES FOR CONSUMER MARKETS Variable Typical Breakdowns Geographic Region The product is mainly focusing Malaysia market. Our target regions are Klang Valley, Selangor, Penang, Melaka, Seremban (Negeri Sembilan), Johor, Ipoh (Perak), Alor Star (Kedah), Kuala Terengganu (Terengganu), Kota Bahru (Kelantan), Kuching, Sandakan (Sabah), Kota Kinabalu, Tawau, Miri (Sarawak). City Size States within Malaysia that have a population of 100,000 & above Density Urban and Suburban Climate Centre, Eastern, Northern & Southern Region

34. Market Segmentation Demographic MARKET SEGMENTATION VARIABLES FOR CONSUMER MARKETS Variable Typical Breakdowns Demographic Age Elder market group age range between 40 years and above; Young and energetic group age range between 35 years and above Sex Applicable for male consumption only Family Life Cycle At least 18 years and above, single, married, young, senior citizens. Income Medium to high end income group with an average income of $5k and over Occupation Elder market - retiree, professionals and business owner. Young market professionals, managers & entrepreneurs. Education All level ranging from primary school, high school, college and university graduate Religion All religions from Buddhist, Muslim, Hindu, Christian, Free Thinker, etc Nationality Malaysian-male only

35. Market Segmentation Pschyographic MARKET SEGMENTATION VARIABLES FOR CONSUMER MARKETS Variable Typical Breakdowns Psychographic Socioeconomic ED patient, sexual active lifestyle group Status Well educated, professional, good income group Values, attitudes and lifestyle groupings Western thinking, open, enjoy life Personality Male with strong self-esteem, egoistic or another group that is lack of self confidence on sexual performance

36. Market Segmentation Behavioural MARKET SEGMENTATION VARIABLES FOR CONSUMER MARKETS Variable Typical Breakdowns Behavioural Purchase occasion Regular (ED patient or sexual active group), occasion (Impulse or brand switch buyer), special occasion (First time buyer) Benefits sought Boost male self-esteem and confidence level, enhance sexual performance User status Could be ranging from non-user, ex-user, potential user, first- time user, regular user. Usage rate Light user, medium user and heavy user (depend on individual need and desire) Loyalty status None, medium, strong, absolute Buyer-readiness stage Aware, interested, desirous to try, intending to buy Attitude towards product Positive and enthusiastic and eager to try

37. Target Market Health Related Group Lifestyle Group Casual User Group - Erectile Dysfunction consumers - Men age 40 and above - Senior citizen - Sexually active Consumers - Impulse buyers - First time buyers - Brand switch buyers WHO?

38. Two Potential Target Market The Health Related Group The Lifestyle Group Who has long term business & revenue potential for the company

39. Recommendations

40. Product Branding To enhance 3 levels of brand positioning: 36 hours duration of effect Cialis provide all men and their partners to choose the right moment for intimacy. Change initial message from Cialis for ED Treatment to Healthy sex life with Cialis or Youll not walk alone with ED. ATTRIBUTES BELIEFS & VALUES BENEFITS

41. Product Packaging To develop different packaging for different target group used, for example: Health Related Group Handier packet to be carried for travelling. Lifestyle Group Double Happiness package (2 tablets in 1 packet) Lover usage pack (single tablet)

42. Product-Support Services Enhance Cialis website by setting Q&A or Ask the Expert section. Set up a forum for ED patients, existing or potential users to exchange their view & info on Cialis. Website

43. Price Remain competition-based pricing. Adjust the price in parallel with Viagra Psychological pricing strategy - Customers will perceive Cialis as a better choice due to longer effective period plus it is priced the same as Viagra Discount pricing - further discount when customers purchase Cialis with prescription in order to encourage customers to consult doctors for ED treatment hence not misuse the drug

44. Promotion - Advertising Enhance Cialis advertisement to spur awareness within Malaysian community. Any advertisement that could offend mens ego must be avoided. Advertisement should carrying the product benefit such as Effect time of 36 hours and Intimate relationship & happiness can be portrayed. Eli Lilly must put on new advertisement carefully as Malaysia law prohibits direct comparison between competitors.

45. Advertising - Samples

46. Public Relations Increase the public awareness on ED Educate the public from target market that ED is no longer a bedroom tragedy with the fact that: ED is often associated with impaired blood flow If a patient is experiencing ED, it can be speculated that the patient might have problems in other organs, such as the heart. Organize Health-talks or Seminar to senior citizens & patients with ED.

47. Personal Selling The current marketing channel via sales representatives should be intensified. Continuous training to enable sales representatives to aware of the product and market Cialis to a wider customer base. The sales representatives should be competent & familiar with Cialis benefit, and carry the similar corporate identity & brand image to the public.

48. Sales Promotion 1) Increase sales 2) Gain market share Cialis Promise Loyalty Program Referral Program Buy 5 Free 1 Get Free Pills by Introducing a New Friend

49. Place / Distribution Current Cialis is currently distributed on the pull strategy. Marketing activities and campaigns are directed towards end users with the aim to create awareness and to assist ED patients to recognize their problem. Patients will then demand Cialis from hospitals, clinics, pharmacies or online which in turn will demand the product from Zuellig Pharma and Eli Lilly. Proposed Cialis should adopt hybrid marketing channel network by leveraging on Internet as its new distribution market to provide flexibility and privacy to the buyers. To prevent unauthorized buyers, as a proposed solution, a buyer or patient must present an electronic copy of doctors prescription to buy Cialis online.

50. Hybrid Marketing Channel The process of taking the business to online business is known as Reinter-mediation.

51. People Urologists Collaborate further with Urologists as they are trained in andrology or management of ED. Urology support staffs are experienced in treating men or patients who suffer from ED. Cardiologists Work closely with Cardiologists as ED may leads to cardiovascular disease. As cardiovascular disease is 1 of the main cause of death in the United States, which was proven to be a strong predictor of ED.

52. Conclusion An effective and well planned marketing strategy for Cialis is vital to maximize its strength and resources to develop competitive advantages against its competitors, at the same time satisfy and add values to customers. The marketing strategy should also align with the Eli Lillys company mission, strategy and objectives, when designing marketing tactics to implement the marketing plan.

Marketing Group Marketing Slides_Final[PUBLISH]

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