Cialis Presentation

Product Team Product Team Cial Cialis is : “Ready to Market” A Case Study Presentation

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May 1, 2012

Competition Strategies – Which route to take? Direct Compete Strategy

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Pro’s

Con’s

Same Pie of Market share

More Funds needed to sustain competition

No initiation effort required for Current Viagra Users

Risk of “Price-War” with an established market leader

Niche Strategy

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Pro’s

Well-defined target space

Con’s

Risk of limiting market share; impact on long-term growth strategy

High competitive advantage

Beat Strategy

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Pro’s

$$

Easy to market product differentiators to an experienced consumer mass

Requires heavy reliance on product differentiators

Enables growth: Opens scope for a

Requires dedicated effort to turnaround established market perceptions

“compete Strategy” in future

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Con’s

Product Team Cialis : “Ready to Market”

May 1, 2012

Buyer Behavior Model - Patients and Doctors Age Groups

• Younger population: Embarrassed, Low awareness about ED causes • Older population: Prevailing perception of relating ED symptoms to age.

(10% to as high has 48%

• Viagra Users/Viagra Dropouts: No initiation is required. More awareness

Usage Group

Product benefit

Doctor

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towards ED • New Users: High initiation/influence efforts. Purchase exclusively driven by doctors perception.

• Benefits from particular product features drive purchase decisions • Higher tendency of buyers to influence doctor’s decision for future

prescriptions

Safety and efficacy are prime drivers Cialis : “Ready to Market”

May 1, 2012

So which region/geography need we target? National/Private Insurance ~ 45%

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Europe/UK

U S

Highest ED Market share (Revenue ~ 62%) High Education Level (Post-Secondary ~67%) High Income Level (35%…..And > 60k annual) did we •

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Low ED Market share Low Education Level Low Income Level

find any similarities..???

Cost shared b/w individual and partner (US: 33%; UK:15%; Rest of EU: Negligible)

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More openness towards ED (Individuals reaching out to a local drugstore US: 67%; UK: 74%)

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Product Team Cialis : “Ready to Market”

May 1, 2012

So why not segment user groups and their needs? • Younger population: Embarrassed, Low awareness about ED causes • Older population: Prevailing perception of relating ED symptoms to age. Age

(10% to as high has 48%

• Viagra Users/Viagra Dropouts: No initiation is required. More awareness Usage behavior

Product Perception

Doctor

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towards ED • New Users: High initiation/influence efforts. Purchase exclusively driven by doctors perception.

• Benefits from particular product features drive purchase decisions • Higher tendency of buyers to influence doctor’s decision for future

prescriptions

Safety and efficacy are prime drivers Cialis : “Ready to Market”

May 1, 2012

Segmentation Geography based

Usage behavior based

Product Perception based

US

Current Users of Viagra (3 Mm)

Satisfied (91%)

Dissatisfied (9%)

New Users (20 Mm)

For the Market leader to chase

Potential Revenues= Total Segment Size *Differentiation Attribute Factor * Avg. Prescription* Cost of the Drug Potential Buyers=0.16 * Refill Factor

UK

Viagra Drop Outs (7Mm)

Dissatisfied with Viagra due to onset/duration time (55%)*

Mm

Potential Buyers=7*.55=3. 85Mm

Potential Revenue= 0.16*390=62.12 Mm

Potential Revenues= 3.85*390= 1501.5 Mm

Dissatisfied with Viagra due to other reasons (45%)

Total Potential Revenues = 1501.5 + 62.12 = 1564 Mm Approx.

Positioning Strategy: Cialis-”A life style Drug” Cialis removes awkwardness in a relationship through

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Greater Control, Flexibility and Freedom while ensuring greater safety

Communication with the Doctors - Enhanced Safety 

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Communication through key decision makers and experts in the medical community about the enhanced safety of the drug Exploit the strong association of the JV with the medical community, world wide opinion leaders.

Cialis : “Ready to Market”

May 1, 2012

Long Term Growth Strategy Target the Current Viagra User Base through extensive advertising once costs are recovered and brand loyalty is established.

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Cialis : “Ready to Market”

May 1, 2012