Cialis †Harvard Business School Case Essay

1.Problem StatementLilly- ICOS LLC is about to launch a new and innovative product intended to serving men crucifixion from Erectile Dysfunction (ED). Because of the unique product features, Cialis the product has good chances of becoming successful even though it is entering a segment, where Pfizers Viagra is the unchallenged securities industry leader. In this context, Lilly- ICOS LLC must decide on a market strategy, in particular which groups to guide and which positioning thus which communication strategy to choose.2. status Analysis (refer to Exhibit 1+2)Lilly- ICOS LLC is a joint venture between ICOS, a small biotechnological start up (no FDA registration experience and no marketing capabilities) and Elli Lilly Company, a large pharmaceutical company with strong competencies in developing innovative quality of animateness medicines.Competitive product Viagra has strongest brand intuition of any pharmaceutical brand in the world, practically the synonym for ED (produ ct well established in market, dissolved taboo). Pfizer also known for fierce and sustained marketing campaigns post launch (exceptionally high marketing budget) and largest sales force in industry.Competition from Bayers Levitra not relevant, expected to mainly target niche market of diabetics.Promotion Communication focus on classic media print/ billboard advertising mainstream magazines (i.e. news magazines) to target couples, fe anthropoid magazines to address partners and (conservative) male magazines (careful selection not to tap in playboy drug trap) TV prime time shows that clear up target audience, male specific i.e. sports advertising no celebrities, average couples as centre of communication. Communication message should focus on communication/ dialogue as the key to a healthy sex life + relationship, ED is treatable, encourage couples to talk openly about the condition and see a doctor/ seek treatmentCialis as the pill for couples rear end help to rediscover intimacy and endearment in a mature relationship furthermore multifaceted below the line marketing actions physician come on take value of trained sales force (help dissolve insecurities about addressing condition), show distinct advantages of Cialis from aesculapian point of view (almost no side effects), make sure approach is differentiated from Pfizer sales force (soft strategy aggressive), distri exclusivelye POS material + free samplesPlace as Cialis is a prescription drug it will be available at pharmacies and local drug stores. Ensure stock before campaign launch, so demand can be met and potential buyers arent driven away by unavailability. Free samples at doctors and hospitals, issue voucher through website redeemable at pharmacies/ drug stores.5.ImplementationWe believe in the advantages of our product and therefore are confident that we can have a strong market entry in the US market. Considering our potential target segment and relying on past Viagra sales and market share we believe that we can initially gain a 15% market share within 1st year and are expecting to grow 10% annually over the next 5 yrs. With an initial price of $12 per pill (bundled in packs of 6 reflecting current customer consumption habits) we remain affordable to the average customer but we are clarifying our premium status. Thus we expect sales of $700Mn and a profit of $630Mn (margins = Viagra) (see exhibit 4). In order to reach our ambitious goals we are convinced that a strong marketing budget is essential for reaching immediate market penetration and gaining market share. We want to portion out $100Mn for launch and first year (distribution negotiable, 50% classical advertising).Below the line marketing measures internet launch specific online portal that provides information about medical condition and possible treatments (especially for patients who have recently been diagnosed, offers privacy + anonymity), include physician finder to easily access treatment close to home direct notice to households resembling target group, establish customer loyalty club who get discounts on prescription + are informed about newest research development of condition but also life style news e.g. travel and restaurant tips incentives i.e. offer weekend- couple hideaways to revitalize relationship to i.e. Cialis Mountain Cabin, Cialis Yacht etc.