Free Cialis Case Study Solution | Assignment Help

MBA Staff Writer
Written by Gary F. Smith
Publish Date: 2024-11-03

Harvard Case - Cialis

"Cialis" Harvard business case study is written by Mark Parry. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Feb 11, 2004

At Fern Fort University, we recommend that Lilly adopt a multi-pronged strategy to address the challenges and opportunities presented by the Cialis launch. This strategy should focus on building brand awareness, establishing Cialis as the leading ED treatment, and ensuring long-term market dominance. This will require a combination of innovative marketing approaches, strategic pricing, and effective communication to target audiences.

2. Background

The case study focuses on Eli Lilly and Company's launch of Cialis, a new erectile dysfunction (ED) treatment, in 2003. Cialis presented a significant opportunity for Lilly, as it was the first once-a-day ED treatment available, offering a potential competitive advantage over Pfizer's Viagra. However, the launch faced challenges, including the stigma surrounding ED, the need to educate both patients and physicians about the benefits of Cialis, and the competitive landscape with Viagra already established in the market.

The main protagonists are:

  • Eli Lilly and Company: The pharmaceutical company responsible for developing and launching Cialis.
  • Dr. David R. Fink: Lilly's senior vice president of global marketing, tasked with leading the Cialis launch strategy.
  • Pfizer: The competitor with the established ED treatment, Viagra.

3. Analysis of the Case Study

To analyze the case, we can apply a framework that considers both internal and external factors influencing Cialis's success. We will use a combination of:

  • SWOT Analysis: To identify Lilly's strengths, weaknesses, opportunities, and threats.
  • PESTEL Analysis: To assess the political, economic, social, technological, environmental, and legal factors impacting the ED treatment market.
  • Porter's Five Forces: To understand the competitive landscape and the bargaining power of buyers, suppliers, and potential entrants.

SWOT Analysis:

  • Strengths: Lilly's strong research and development capabilities, a well-established brand reputation, and a robust sales force.
  • Weaknesses: Limited experience in the ED market, potential for high marketing costs, and the stigma associated with ED.
  • Opportunities: A growing market for ED treatments, the potential for a once-a-day dosage to be a key differentiator, and the possibility of expanding into new markets.
  • Threats: Competition from Pfizer's Viagra, potential for generic competition, and regulatory hurdles.

PESTEL Analysis:

  • Political: Government regulations on pharmaceutical advertising and pricing.
  • Economic: Economic downturn could impact consumer spending on non-essential healthcare products.
  • Social: Increasing awareness and acceptance of ED as a treatable condition, but also the stigma associated with the condition.
  • Technological: Advancements in drug development and delivery mechanisms.
  • Environmental: Environmental concerns regarding pharmaceutical manufacturing processes.
  • Legal: Patent protection for Cialis and potential legal challenges.

Porter's Five Forces:

  • Threat of New Entrants: High barriers to entry due to regulatory hurdles and the high cost of research and development.
  • Bargaining Power of Buyers: Moderate, as patients have limited options for ED treatment, but they are sensitive to price.
  • Bargaining Power of Suppliers: Low, as there are many potential suppliers for raw materials and manufacturing processes.
  • Threat of Substitutes: Moderate, as there are alternative treatments for ED, including lifestyle changes and other medications.
  • Competitive Rivalry: High, with Pfizer's Viagra being the dominant player in the market.

4. Recommendations

To achieve long-term success, Lilly should implement the following recommendations:

1. Build Brand Awareness and Differentiate Cialis:

  • Targeted Marketing Campaigns: Develop marketing campaigns specifically tailored to different segments of the ED market, including men of different ages, lifestyles, and cultural backgrounds.
  • Direct-to-Consumer Advertising: Utilize print, television, and online advertising to increase awareness and educate consumers about Cialis.
  • Physician Education: Develop programs to educate physicians about the benefits of Cialis and its unique features, including the once-a-day dosage.
  • Partnerships and Sponsorships: Partner with relevant organizations and events to reach target audiences and build brand credibility.

2. Establish Cialis as the Leading ED Treatment:

  • Pricing Strategy: Offer a competitive price point that balances profitability with market share growth. Consider tiered pricing strategies to reach different segments of the market.
  • Product Positioning: Position Cialis as the convenient, effective, and discreet solution for ED. Emphasize the once-a-day dosage and the potential for improved quality of life.
  • Clinical Trials and Research: Conduct ongoing clinical trials to demonstrate the efficacy and safety of Cialis and generate evidence-based marketing materials.
  • Patient Support Programs: Develop programs to provide support and resources for patients taking Cialis, addressing concerns and promoting adherence.

3. Ensure Long-Term Market Dominance:

  • Innovation and Product Development: Invest in research and development to explore new formulations, dosages, and delivery mechanisms for Cialis.
  • Global Expansion: Strategically expand into new markets with significant potential for ED treatment, considering cultural sensitivities and regulatory requirements.
  • Digital Marketing and Social Media: Utilize digital marketing channels and social media platforms to engage with consumers, build online communities, and address potential concerns.
  • Customer Relationship Management (CRM): Implement a CRM system to track patient interactions, gather feedback, and personalize marketing messages.

5. Basis of Recommendations

The recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: Lilly's core competencies in research and development, manufacturing, and marketing align with the goals of launching a successful ED treatment.
  • External Customers and Internal Clients: The recommendations address the needs of both patients and physicians, as well as the internal stakeholders at Lilly.
  • Competitors: The recommendations aim to differentiate Cialis from Viagra and address the competitive landscape.
  • Attractiveness: The recommendations are expected to generate a positive return on investment (ROI) through increased market share, brand loyalty, and long-term profitability.

Assumptions:

  • The ED market will continue to grow in the coming years.
  • Patients will be receptive to a once-a-day ED treatment.
  • Lilly will be able to overcome the stigma associated with ED.
  • The regulatory environment will remain favorable for pharmaceutical innovation.

6. Conclusion

By implementing a comprehensive strategy that combines innovative marketing, strategic pricing, and effective communication, Lilly can successfully launch Cialis and establish it as the leading ED treatment. This will require a commitment to building brand awareness, differentiating Cialis from competitors, and ensuring long-term market dominance.

7. Discussion

Alternatives:

  • Aggressive pricing strategy: Offering a lower price point to attract price-sensitive consumers, potentially sacrificing profitability.
  • Limited marketing budget: Focusing on a smaller target audience and reducing marketing expenditures, potentially hindering brand awareness and market penetration.
  • Ignoring the stigma: Failing to address the stigma associated with ED, potentially alienating potential customers.

Risks:

  • Competition from Viagra: Pfizer could launch new products or marketing campaigns to counter Cialis.
  • Generic competition: Generic versions of Cialis could enter the market, eroding Lilly's market share and profitability.
  • Regulatory changes: Government regulations could impact the marketing and pricing of ED treatments.

Key Assumptions:

  • The ED market will continue to grow.
  • Patients will be receptive to a once-a-day ED treatment.
  • Lilly will be able to overcome the stigma associated with ED.
  • The regulatory environment will remain favorable for pharmaceutical innovation.

8. Next Steps

  • Develop detailed marketing plans: Create detailed marketing plans for each target segment, outlining specific objectives, strategies, tactics, and budgets.
  • Conduct market research: Conduct ongoing market research to monitor consumer preferences, competitor activities, and market trends.
  • Implement CRM system: Implement a CRM system to track patient interactions, gather feedback, and personalize marketing messages.
  • Monitor performance and adjust strategies: Continuously monitor the performance of Cialis and adjust strategies as needed to optimize results.

By taking these steps, Lilly can ensure a successful launch of Cialis and achieve its long-term goals in the ED treatment market.

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Case Description

Lilly ICOS is preparing to launch Cialis, a prescription drug that treats erectile dysfunction, and executives must decide how to position Cialis against market leader Viagra and recent entrant Levitra.

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