Cialis Case Study

The Problem The joint venture company between Eli Lilly and ICOS has been successful in completing development of a male impotency drug with significantly improved benefits over the market leading drug in the category – Viagra1. However, the company is faced with the challenge of launching the drug in a market with a highly successful and established brand. Positioning of the drug, and marketing its value proposition to the most appropriate target market is key to the successful launch of the product, and the biggest problem faced by the Company at this time.Solution Lilly ICOS Marketing team has a challenge to build a brand in a market which may already see a new drug (Levitra1) that can capture a niche market.

The team has the following options: OptionProsCons Target all market segments and create an “All Benefits” value proposition. This includes significantly long lasting effects, better absorption even after a high fat meal, and safety. 1. Huge market that includes all patients with ED provides a much bigger opportunity. 2.

Highlights R&D achievements by listing all breakthrough benefits that Cialis1 can offer. . Directly targets patients not satisfied with Viagra. 1. Competes head to head against a an established brand – Viagra. 2.

Increased marketing cost to convert both doctors and patients. 3. Does not focus on a key differentiator. Some benefits like longer duration may not be of concern to patients. 4.

Doctors will still hold the key and may not be convinced enough to recommend drug to their patients. Target Viagra dropouts and other large number of patients unsatisfied with Viagra. 1. Recognizes that the customer has a better alternative. . Provides direct differentiators against the competing brand.

3. Number of Viagra dropouts and unsatisfied patients is big. Research supports patient inclination to try new product. 1. New drug Levetra1 will target and possibly capture niche market of patients with Diabetes.

2. Induces increased competition on Marketing and Advertising. 3. Does not create a compelling value proposition. Target a specific market segment position Cialis as quality of life drug 1. Focuses on parent (Lilly)’s strength as innovator of quality of life rugs.

2. Demonstrates research and understanding of customers priorities. 3. Provides a distinctive Value Proposition. 1.

Targets a smaller market segment 2. Increased marketing cost as Brand awareness 3. Maximum Risk as it could flare uncomfortable discussions most males relate with sexual disorders2 Recommendation Given the existence of an established brand in the marketplace, my recommendation for Lilly ICOS will be to not go head to head and advertise all possible improvements it has over Viagra.The team should consider positioning the product as a quality of life product and target a smaller market segment of mature middle age to senior couples that lays greater emphasis on flexibility. The positioning will demonstrate: •Point of parity that the product can compete in the marketplace.

•A clear differentiator (long lasting) and a compelling value proposition for which the customer will be ready to pay the same, if not higher price than the competing brand. •Sophisticated understanding of customer needs by targeting women who have indicated inconvenience with Viagra2 but addresses the delicate balance of male personal embarrassment