Cialis Case Analysis

Cialis Case Analysis

MKTG 658

Summer 2015

1. Brief background of key facts and situations:

Back in 2002, Mark Barbato, the executive director and global product team leader of Lilly ICOS LLC, despite the existence of a heavy weight leader –Viagra by Pfizer – in the market, was getting ready to launch Cialis as a new medicine for treating Erectile Dysfunction (ED). In order to reach the market, Rob Brown, Global Marketing Director and Leonard Blum, VP of sales and marketing would face some challenges that they needed to overcome. Since Pfizer with the medicine Viagra has been the monopoly in the market for a while, physicians and patients have become loyal to this brand. However, due to existence of number of issues, which had led to 130 deaths, sufferers from ED were not highly satisfied with Viagra. As a result of this loyalty, in order to enter the market, marketing team needed to choose the right strategy not only to be able to compete with Viagra, but also increase Cialis’s market share in the long run.

2. Decision dilemma for leader in case:

        Identifying a target market for Cialis and a way to position it against completion specifically Viagra by Pfizer.

3. Analysis of case facts that:

        3A. Contradicts other facts:

• It was mentioned that Viagra in not safe to be taken with nitrates used to treat certain heart conditions, meaning that due to its functions and mechanism, Viagra may cause some cardiovascular failures. However, after the death of 130 patients taking Viagra, Pfizer took the position that Viagra would not place the user at risk.

        3B. Exhibits case facts or details that I feel are left out and should be there for better            understanding or decision making:

• Even though it was mentioned that substantial percentage of males were not entirely satisfied with Viagra, no information was provided regarding their dissatisfaction  
• Total budget allocated to branding Cialis as well as budgets that could be allocated to affiliates
• Costs on different marketing strategies that is helpful for decision making
• Five-year forecasts provided by GMSO personnel with the aim of assisting the product team could contain valuable information about the future of market

        3C. Mixed with personal insight of your own experience and Kotler text teachings to validate analysis:

In order to reach the market, Cialis needs to identify market segments and the target market. Since there are 150 million men are suffering from ED, reaching to this number of consumers needs great market research to realize their needs, behaviors, as well as their issues with the current treatments. Due to existence of Pfizer with the drug Viagra, secondary data are available that can ease the way for continuing market research needed to reach the right target market. Chapter 8 of Kotler addresses the importance of market segmentation.