1.
Cialis:Getting
Ready
to
Market
Case
Study
Case
Analysis
by
Taposh
Dutta
Roy
HBS
9-­‐505
038

2. Cialis:Getting
Ready
to
Market
HBS
9-­‐505
038
Case
Analysis
submitted
by:
Taposh
Dutta
Roy
Mark
Barbato,
the
executive
director
and
global
product
team
leader
had
to
launch
a
new
male
impotence
medicine
in
a
market
with
an
established
leader
“Viagra”.
Rob
Brown,
Global
Marketing
director
for
Cialis(Lily),
Leonard
Blum,
vice
president
of
sales
and
marketing,
ICOS
and
Beebe
(US
Brand
Leader)
were
responsible
to
come
up
with
recommendation
on
the
Go
To
Market,
strategy
for
Cialis.
The
main
task
was
to
identify
the
target
market
and
position
it
against
the
competition.
The
total
market
was
estimated
to
be
around
30
million
men
in
US
and
150
million
men
worldwide.
The
world
wide
focus
was
segmented
into
5
affliliate
groups
–
US,
Europe
(
France,
Germany,
Italy,
Spain
and
UK),
Mexico,
Canada,
Australia
and
Brazil.
Each
affiliate
group
was
given
the
ability
to
take
tactical
decisions.
The
main
decisions
to
be
made
were
–
determining
how
to
segment
the
market,
tactical
allocation
of
marketing
budget
for
affiliates,
competitive
positioning
and
pricing.
Recommentation
#1
:
Market
Segmentation
I
would
recommend
targeting
Cialis
to
current
users
of
Viagra
and
Viagra
Dropouts
for
US
and
European
countries.
This
is
based
on
the
analysis
below.
At
a
strategy
level,
the
market
was
segmented
to
five
affiliate
groups
–
US,
Europe
(
France,
Germany,
Italy,
Spain
and
UK),
Mexico,
Canada,
Australia
and
Brazil
–
to
divide
the
global
market
of
150
million
men.
At
a
tactical
level,
there
was
still
a
need
to
segment
the
market
on
the
basis
of
demographic,
patient,
physican
and/or
current
Viagara
usage.
Viagra
had
a
monopoly
and
was
available
for
all
segments,
being
the
only
player
in
the
market.
Further,
there
were
heart
related
issues
on
using
Viagara
and
around
130
deaths
were
associated
to
it.
Product
comparision
between
Viagra
and
Cialis
is
given
below.
Consumer
research
found
that
efficacy,
safety
and
duration
were
important
considerations.
Cialis
is
a
better
product
based
on
the
features
needed
by
the
consumers.
Segmentation
of
users,
based
on
current
Viagra
users,
Viagra
Dropouts
and
not
had
used
Viagra
was
done.
This
was

3. Cialis:Getting
Ready
to
Market
HBS
9-­‐505
038
Case
Analysis
submitted
by:
Taposh
Dutta
Roy
done
across
US
and
Europe.
The
results
indicated
that
people
who
were
currently
using
Viagra
were
more
eager
to
try
the
new
Cialis
than
the
ones
that
had
never
taken
any
drug
for
ED.
Thus,
targeting
current
Viagra
users
and
dropouts
made
sense
for
the
initial
launch.
Recommentation
#2
:
Sales
and
Marketing
Budget
Allocation
with
a
revenue
goal
of
$500M
or
higher
is
below.
This
is
based
on
the
analysis
below.
The
revenue
goal
for
Cialis
was
atleast
$500
million.
Further,
based
on
their
company
financials,
for
year
2000,
about
48%
was
their
Sales
and
General
Administrative
expenses.
Considering
this
to
be
a
new
block
buster
product
for
Eli
Lily,
I
would
assume
the
total
spend
for
Sales
and
Marketing
to
be
around
$240
million.
Pifzer
spent
around
$108
million
in
advertising
for
Viagra
in
2000.
Entering
as
an
incumbent
to
Viagra,
Cialis
product
team
should
spend
atleat
$120
million
for
advertising
and
remaining
$120
million
for
total
world
wide
sales.
Sales
force
could
be
divided
depending
on
market
cap
of
various
countries.
About
33%
(1/3)
of
the
adults
that
saw
about
the
drug
on
TV,
discussed
the
drug
with
their
doctors.
Around
44%
of
these
patients,
who
discussed
with
their
doctor
were
recomeneded
with
a
prescription
drug.
This
means
advertising
should
be
two
fold.
I
would
recommend
spending
$80
million
on
advertising
on
TV,
print
and
web.
Various
goal
driven
campaigns
could
be
made
and
reaction

4. Cialis:Getting
Ready
to
Market
HBS
9-­‐505
038
Case
Analysis
submitted
by:
Taposh
Dutta
Roy
should
be
measured.
Around
$40
million
should
be
spend
on
marketing
drugs
to
doctors.
Free
samples
should
be
provided
for
the
doctors
to
give
patients.
This
will
enable
our
target
segment
that
currently
uses
Viagra
to
give
a
test
drive
to
Cialis.
Recommentation
#3
:
Launch
Strategy
Cialis
should
launch
at
a
price
of
$12/pill,
slightly
higher
than
Viagra,
but
gives
a
36
hour
window.
Also,
TV
ads
should
highlight
the
extra
duration,
with
real
people
active
in
sports.
TV
ad
should
highlight
that
this
drug
is
safe
for
heart
and
the
patient
can
wait
for
the
right
time.
Physicians
should
be
given
free
samples
and
more
guidance
about
the
benefits
of
the
drug
and
any
results
of
tests
done
by
FDA.
This
is
based
on
the
analysis
-­‐
Viagra
had
a
five
year
lead
and
many
physicans
and
patients
were
used
to
it.
Also,
there
was
a
history
of
side
effects
generated.
When
Cialis
comes,
there
will
be
no
history.
Further,
Cialis
remains
in
the
system
for
a
longer
duration,
which
is
good
for
the
product,
but
there
is
a
chance
of
side
effects
for
a
longer
duration.
In
order
to
launch
Cialis,
the
doctors
should
be
first
convinced
and
given
the
right
direction
to
decide
what
is
right
for
their
patients.
Given,
the
clinical
trials
did
not
produce
any
side
effects,
the
TV
ads
should
highlight
the
duration
–
“time
is
right”
within
the
36
hour
window.
This
will
give
a
competitive
edge
over
Viagra.
Celebraties
always
have
impact
on
the
audience.
However,
since
Viagra
already
did
this,
Cialis
should
show
regular
people
engaging
in
sports
and
are
active.