Cialis Market Launch strategy Harvard Case Solution & Analysis

Cialis Market Launch strategy Case Study Solution

This case illustrates and examines the rising issues of health which are male oriented like Erectile dysfunctional, which is an eminent issue prevailing in the market but no one talks about it clearly.

Pfizer, an early entrant in the industry of ED, has made tremendous revenues and success by the launch of Viagra,which is synonym with ED. In 2002, Viagra positioned itself as a remedial solution for ED in older people by putting an old politician in the advertisement, however, after 3 years, it re positioned itself as a remedial solution for the young people who suffered from ED naturally.

Analyzing the whole situation, the marketing head and global director, Mark Bar bato, has to launch Cialis a male impotence medicine in competition with the well-established market leader,Viagra. The product Cialis has been developed by the joint venture of Lilly ICOS LLC, who after careful consideration named the medication Cialis so it may not directly produce connotation with Impotency disease, in order to gauge and analyze the effect and acceptability of new product in the market against Viagra.

Cialis has dug very deep into the market and analyzed the strategy and positioning of Viagra, in order to find the gap for its successful launch and then sustainable growth. The findings include the side effects that Viagra produces like blue-vision sight, dissatisfaction and less than 6 hours of effectiveness. Moreover, in recent years the medication had been associated with the scandal of deaths due to the use of Viagra. However, after the incident, the company re-branded itself and made the use of product clear.

Cialis recognized the trend in the market and found the gap that about 6-7 million people have left or never used Viagra even with the disease of ED, while the growth has been only 3 billion. This is the key indicator for the success and acceptability of Cialis only if it successfully launches, positions and differentiates itself from Viagra.

The Unique selling proposition identified in the case about Cialis is that it offers greater time of erection after the first in take for around 72 hours which makes it convenient and satisfying for the customer to get sexually intimated when he actually wants to, without the obligation of getting intimated within the 6 hours of first intake-(Viagra case).The other unique selling proposition is its rarity of initiating or encouraging heart attacks, which is an excellent feature, as most of the population of the US suffers from Heart issues at age of 40-50 years.

The issues identified in the case are how to position the product, which means should be used, which market should be applied and which business strategy shall be pursued. Furthermore, a key differentiation strategy has to be set and a new set of value proposition has to be offered in order to sustain and cut the market share of Viagra who have strong hold in market through its strong brand recognition positioning and distribution strategy.

Problem Statement

Lilly-ICOS LLC is planning to launch a new medication to derive the patients of ED, after 10 years. The problem is in determining which positioning and marketing strategy shall be pursue din order to attain the alignment with the business strategy set by the top management for Cialis. The company has to devise such strategy which could differentiate from Viagra.Moreover, a strong positioning and distribution strategy has also to be devised in order to compete and sustain in the market.

The issue is Viagra has first mover advantage, which has made a strong position in the customer mind, even with the scandal of death cases. The main reason is it synonym with the Male impotency disease. However, there is still a room and a market to tap which can guarantee the sustainability of Cialis in the industry.

Situational Analysis

Lilly-ICOS LLC established a joint venture in order to develop a new medicine to counter the impotency disease found in Man. The major markets identified were UK, USA, France, Spain and Germany; however, among them the largest market constituted US population with market including males of age 50-80 years of age who were the quick and current users of Viagra.

According to the research set by Cialis, majority of the population at the age of 40 started facing problem of ED, while about 35% of the young generating countered the disease. Among them, the majority of the customers used Viagra as an easy solution to the problem. About 3 million people increased the market share of Viagra every year, while the gap was found in the rising number off drop out which was 7 million.

Analyzing the situation, the marketing manager and global director of Cialis planned to launch a new product in same category with pursuing the strategy of offering the product which will fill the gaps of the market. The current gaps identified in the market were such as Viagra half-life lasted only for 6 hours, which became less effective if an individual took fatty food, and above all, it did not cater the market suffering from sugar, heart disease and other problem and may affect badly on such users on the use of Viagra.

Cialis Market Launch strategy Harvard Case Solution & Analysis

 

However, Cialis will offer a greater half-life of effectiveness (72 hours) which would give the user the convenience and high level of satisfaction. The other key feature will be it will be taken with any type of male,and will be available in little doses which will be more effective than Viagra.The main features that will create the competitive advantage for Cialis will include cater the patients of the heart diseases, as according to the Research the cases of heart attack are very rare with the use of Cialis, hence making a big market to tap and offer the product.............

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