Cialis †Harvard Business School Case Essay

1.Problem StatementLilly- ICOS LLC is round to set a new and modernistic product intended to help men suffering from Erectile disfunction (ED). Because of the unique product features, Cialis the product has good chances of becoming successful change surface though it is entering a segment, where Pfizers sildenafil citrate is the undisputed foodstuff leader. In this context, Lilly- ICOS LLC must decide on a grocerying strategy, in particular which groups to only ift end and which positioning thus which confabulation strategy to choose.2. pip Analysis (refer to Exhibit 1+2)Lilly- ICOS LLC is a joint venture amongst ICOS, a small biotechnological start up (no FDA registration experience and no merchandiseing capabilities) and Elli Lilly Company, a large pharmaceutical company with strong competencies in developing innovative quality of breeding medicines.Competitive product Viagra has strongest brand recognition of any pharmaceutical brand in the world, very much the s ynonym for ED (product well established in market, dissolved taboo). Pfizer similarly known for fierce and sustained marketing campaigns post launch (exceptionally mellow marketing budget) and largest sales force in industry.Competition from Bayers Levitra not relevant, expected to mainly target niche market of diabetics. forwarding Communication focus on classic media print/ billboard denote mainstream magazines (i.e. news magazines) to target couples, female magazines to address partners and (conservative) male magazines (careful selection not to tap in playboy medicine trap) TV prime quantify shows that reach target audience, male specific i.e. sports advertising no celebrities, bonny couples as centre of communication. Communication message should focus on communication/ dialogue as the key to a healthy sex life + kind, ED is treatable, encourage couples to talk openly about the condition and wait a doctor/ seek treatmentCialis as the pill for couples tail end help to r ediscover intimacy and endearment in a mature relationship furthermore multifaceted below the line marketing actions physician salute take advantage of trained sales force (help dissolve insecurities about addressing condition), show distinct advantages of Cialis from medical point of view (almost no side effects), make sure approach is differentiated from Pfizer sales force (soft strategy aggressive), distribute POS material + free samplesPlace as Cialis is a prescription drug drug it will be available at pharmacies and local drug stores. get word stock before campaign launch, so demand can be met and potentiality buyers arent driven away by unavailability. Free samples at doctors and hospitals, issue voucher through website redeemable at pharmacies/ drug stores.5.ImplementationWe consider in the advantages of our product and therefore are confident that we can go for a strong market entry in the US market. Considering our potential target segment and relying on past Viagra s ales and market share we believe that we can initially gain a 15% market share within 1st category and are expecting to change state 10% annually over the next 5 yrs. With an initial hurt of $12 per pill (bundled in packs of 6 reflecting current customer role habits) we remain affordable to the average customer but we are explicate our premium status. Thus we expect sales of $700Mn and a profit of $630Mn (margins = Viagra) (see submit 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 allocate $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 doable treatments (especially for patients who have recently been diagnosed, pop the questions privacy + anonymity), include physician finder to good access treatment close to home direct mailing 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.