Product Team Cialis: Getting Ready to Market – Case Solution

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Product Team Cialis: Getting Ready to Market Case Answers

1. What are the most relevant dimensions along which to segment the patient market for ED treatment? Of the segments identified, which would you target initially with Cialis?

The most relevant dimensions along which to segment the patient market for ED treatment are:

• Sex at birth: transsexual people use ED treatment differently than males by birth, and hormonal balance is crucial.
• Age: strong age correlates with the ED condition.
• Marital Status / Sexual Partner: partner impact is high in the perception phase (helping men recognize they suffer from ED) and moderate in prompting one’s partner to consult a doctor and seek treatment.
• Income: for the vast majority of ED patients, the drug would not be fully covered by their health insurance plan. Therefore, we need to estimate the purchasing power of our patients.
• Employment is correlated both with age and income.
• Education: U.S. ED patients seemed to be more highly educated than in other countries.
• Usage patterns: current Viagra users and dropouts show similar interest, but the communication to target these segments should differ.
• Health condition: most cases of ED are associated with another medical disease, certain medications, or lifestyle factors such as smoking or excessive alcohol consumption, plus psychological factors. Still, there is a lack of information on ED prevalence and the potential reasons for its occurrence.

Cialis has 3 marketing approaches to go with:

1. follow a “niche” strategy, whereby a specific and relatively narrow segment would be identified and targeted
2. follow a direct “compete” strategy and go head-to-head with Viagra’s positioning
3. follow a “beat” strategy and try to come up with a differentiated positioning that would allow it to pursue a broad market.

The third strategy appeals to me the most because we clearly see what positively differentiates Cialis. Additionally, we have some fruitful insights from the studies that explain how Viagra is perceived and who it is targeting. The pharmaceutical industry is in many ways about the marketing of negatives, and to grab patients on the market with an established leader, the rhetoric of Cialis should significantly differ. See Exhibit 1.

Of the segments identified, I would recommend targeting non-single males and their partners. Cialis treatment offers a significantly greater window of opportunity to choose the right moment of intimacy. Therefore, it relieves the pressure and urges from the patients’ partners, which is one of the comparative advantages of Cialis. We know from the studies that Viagra has an image of a “playboy” drug. Therefore, Cialis should be positioned as a more long-lasting relationship drug with an image of a relationship saver. Such medication would fulfill the need for stability and intimacy.

Moreover, Cialis should target more young adults who haven’t used Viagra but discovered their ED condition and do not believe that it is a normal part of aging. Therefore, they feel more embarrassed and less confident to talk about the issue with their doctor. A part of Cialis’s communication strategy may be raising awareness about potential causes, especially mental health conditions, which are rarely acknowledged as the reason.

Cialis could print leaflets with infographics and distribute them around cabinets of PCPs, urologists, and mental health specialists. Such leaflets should communicate by inviting the patients to discuss the health issues that can cause ED during their next visit and reassuring them that there is nothing to be ashamed of. That is not a direct advertisement, just branded information that can be absorbed while patients are registering and waiting for their appointments.

As for the traditional market of men in their 50s and above, I would say that among them, Cialis should target Viagra dropouts and current Viagra users by highlighting comparative advantages. See Exhibit 1.

Cialis should target mid and high-level-income patients in the US and low to mid-income patients outside the US (taking into consideration that in those countries, patients are more likely to pay for the ED medication themselves). See Exhibit 2.

Cialis should target employed full-time or retired patients.

Cialis should target post-secondary educated patients in the US and primary plus secondary educated patients outside the US.

Cialis should target both Viagra’s current users and dropouts but communicate them slightly differently.  For example, we can explain to the current users that Cialis offers better flexibility in choosing the moment of intimacy and can help to avoid asking whether or not to take the pill.

And for dropouts, the range of messages should differ depending on the reason for dropout. For example, Cialis could put banners near McDonald’s saying, “Your previous ED medication did not work after Big Mac, so your girlfriend hates McDonald’s now? Cialis is here so that you don’t have to choose between pleasures”, highlighting better absorption with fat meals.

2.        What is Viagra’s positioning in the marketplace in 2002? How would you characterize the Viagra brand?

Viagra has been targeting…