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Cialis Case Study

732 words - 3 pages

Cialis case study
* What r the most relevant dimensions along which to segment the patient market for ED market?
* Demographic dimensions - Age (60+ and 50-59 groups), Employment (full time and Retired), Marital status (married or living together), have sexual partner, yearly income (low for Europe and medium & high for US), education (post graduate in US and primary & secondary in europe)
* Viagra dropouts – people who discontinued to using Viagra. By end of 2001, 6 to 7 million Viagra dropouts compared to 3 million Viagra current users, which indicates a fertile market for cialis as a substitution to Viagra. Also Table B shows high willingness to try it across countries.
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* Threat of new entrant – high entry barriers (like FDA’s approval) don’t allow many competitor in ED treatment market. So cialis can be a new threat to Viagra in its monopoly type market with a better drug.
* Threat of substitute products – Till cialis launch, Viagra has no substitute in ED treatment market.
* To win share of market, cialis must win share of mind and share of heart from Viagra. As there r many Viagra dropouts and also current users like to try cialis with high willingness, cialis initially try to capture share of mind and heart market which further brings share of market to them. For that, they should provide good product awareness (through print media and TV-Radio-movie commercial), product quality (values like less onset time, etc), availability (local as well as big drugstore and direct from doctors), technical assistance (urologist and family doctors).
* Treat Viagra dropouts and less satisfied users as valuable and not vulnerable customers
* Act as market challengers not as market followers or nichers.
* Price should be same to Viagra or may be little more (5 to 7%), as there r only two competitors. Also, low price compared Viagra may send signal of law quality product compared to that of Viagra...

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