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 P’s
• 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 P’s

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 “You’ll 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 men’s 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
doctor’s 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
Lilly’s company mission, strategy and objectives, when
designing marketing tactics to implement the
marketing plan.