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Cialis Case Solution

Solution Id Length Case Author Case Publisher
2837 1774 Words (7 Pages) Mark Parry Darden School of Business : UVA-M-0685
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The case "Cialis" revolves around the launch of a new medication, "Cialis," into the market to treat the condition of erectile dysfunction. The new product by Lilly Icos would have to face lots of challenges in the form of competing players already doing well in the same domain. Viagra, the biggest competitor, has established itself as a big brand in the market with a huge customer base. Therefore, targeting the right audience and positioning Cialis is key for the brand to acquire customers and build trust. The idea is to segment the market into different groups and evaluate the benefits of targeting them. The dimensions such as age, income, and marital status are the foundation for forming groups. Moreover, Cialis has a task to position itself as a unique and distinct brand as compared to Viagra, with its products showcasing value for the customers. The benefits include effectiveness, longer duration, minimal side effects, and stress-free pills for a better sexual relationship. Hence, it requires the right marketing mix, effective communication to different parties, utilizing different channels such as TV ads and magazines, and the right pricing and promotions strategies to compete with Viagra and acquire market share for sustainable growth.

Following questions are answered in this case study solution:

  1. What are the most relevant dimensions to use to segment the patient market for ED treatment? Select only the most relevant! Of the segments identified, which would you target initially? Why?

  2. What is Viagra positioning in 2002? How would you characterize the Viagra brand?

  3. What would be the most effective way to position Cialis in the marketplace?

  4. What marketing mix activities should accompany the launch of Cialis?

    a. What would be the most important messages to communicate to the target patients? To physicians? To partners?

    b. What medium would you use to reach each of these parties and what would your relative resource allocation be?

    c. How would you price Cialis? What type of promotions would you offer?

  5. What competitive response do you anticipate from Pfizer? From Bayer-GlaxoSmithKline?

Case Study Questions Answers

1. What are the most relevant dimensions to use to segment the patient market for ED treatment? Select only the most relevant! Of the segments identified, which would you target initially? Why?

The most relevant dimensions to segment the patient market would be based on demographics such as age, marital status, income, education, employment, usage pattern, life stage, and health condition. Age has a strong correlation with ED (Erectile Dysfunction), as men with higher ages face this problem more, as depicted by the case. Marital status or having sexual partners is another important dimension to consider in the ED. Similarly, income and education allow for exploring the aspect of purchasing power. Lastly, the usage patterns accounting for categories involving those who are using Viagra, are dropouts, and have never used it, are also important. Based on the above variables, the first segment would be young adults between the ages of 20 to 30, who have never used Viagra, have greater sexual commitments, and have education with lower incomes. The second group would be husbands between the ages of 30 to 65 and boyfriends with long-term relationship commitments. They have significant education levels along with greater incomes. The third and last segment would be retired seniors above the age of 65, having greater savings, are current users of Viagra, and possess strong values.

Among these three, the one that I would target initially is the segment of husbands since it is important to differentiate from the competitors, which in this case is Viagra, which has gained a reputation in the segment of retired seniors. Despite this group of 30 to 65 age is not the most suffered group from ED, the husbands have a stable relationship and value it with their partners. Moreover, husbands in this age group tend to lose focus due to other work and connections; Cialis would become relevant and offer to help them in their relationships. It would improve their sexual performance and provide them with a sense of freedom without any pressure, increasing their level of happiness and comfort.

2. What is Viagra positioning in 2002? How would you characterize the Viagra brand?

The drug Viagra launched by Pfizer was initially targeted toward the group of elder people who had coronary conditions. Therefore, the officials from Pfizer were not interested in prescribing it for recreational use, such as in the case of ED. By 2002, they started targeting other segments, such as middle-aged men, but the focus remained on older people. As far as their positioning and marketing strategy is concerned, they have been very aggressive in capturing the market, thus becoming the only brand to have such a reputation for ED products. Moreover, they were perceived among men as playboy drugs directed toward masculinity. The focus of advertising shifted in a way to not mention Viagra as a drug to treat ED but rather as a drug to bring happiness and stability.

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