Product Team Cialis

Syndicate 5 :Rangga Tri Raeros

Joseph EnricoRia Agustriana

Agung MahendraKarina Soedjati

Background

Erectile Dysfunction (ED)• Erectile Dysfunction also

called male impotence, describes as a man’s inability to achieve and maintain an erection because the distraction on their blood flow for attaining an erection impaired.

• Most cases of ED are associated with another medical diseases, certain medications, or lifestyle such as smoking or excessive alcohol consumption.

• 50% of all men between the ages of 40 until 70 experienced some form of ED.

• An estimated 30 million men in U.S and 150 million worldwide experience chronic ED.

Company overview

1990

•ICOS, small biotech start-up, develop therapeutically in form of  PDE5 inhibitor.

•This company focus on the discovery and development of innovative drugs

1998

•Finding a partner to work in a collaborative joint venture with Eli Lilly and Company

•Signed a contract and the profit from future sales in U.S and Europe would be split 50 / 50.

2001

•Company was submitted a new drug application (NDA) for Cialis to U.S Food and Drug Administration (FDA) and European Agency for the Evaluation of Medical Products.

2002

•Launching Cialis the innovate new drug  for the treatment of male impotence in market , has successful phase III clinical trial for treatment ED for men.

CialisCialis is a medicine treatment

for men with erectile dysfunction (ED) produced by Lilly ICOS LLC company

Have a good prospect business since the huge successful of Viagra, generated over 1 billion in sales for three consecutive years.

Cialis works a bit faster less than 30 minutes, and the effects last much longer - up to 36 hours.

Many men (age 40-70) in US and worldwide experience chronic ED

Competitor Analysis

Viagra A little blue pill called Viagra was

the first pharmaceutical treatment for ED and become phenomenon.

Produced by Pfizer in 1998 and 600,000 prescription in their first month launch.

Prescription medication in the form of 25, 50, and 100 mg tablets.

It has 30 min to 1 hours onset time and half-life about 3 – 5 hours.

In 2000, the revenue of Viagra is $ 1,3 billion.

Known for its marketing prowess, fierce and sustained marketing campaigns post launch.

Levitra¸ Bayer release Levitra in 2000¸ Focus to diabetic men considered hard to treat

segment.¸ Proved to be very effective at lower dosages

than Viagra (as low as 5 and 10mg).¸ Levitra take effect quicker than Viagra and has

half-life of 4 – 6 hours.¸ Had a very good marketing coverage in Europe

while in US was relatively week.

ED Market Share

Physicians• Divided into two groups:

urologist and primary care physician (PCPs)

• Efficacy was the most important followed by safety and duration.

• Urologist are more familiar with the medical causes and medicine of ED and were more comfortable discussing ED with patients compare to PCPs.

70%

30%

10%

ED Market by Physicians

Efficacy & safetyOtherDuration

Patients

• A screening survey was administered to 32,644 patients.

• The prevalence of ED increased with age

• In all countries the average ED patient was in his 50s with over 80% having a sexual partner.

28,022

2,1723,450

didn't suffer from EDsuffering & sought treatmentsuffering ED but not sought treatment

Physician Consulted

49%

43%

4%5% 1%

Family doctor

Urologist or men`s specialist

Cardiologist

Psychiatrist

Internet doctor

US France Germany Italy Spain UK46

48

50

52

54

56

58

60

58.4

50.7

53.5

55.4

50.7

56.9

Average Age of ED Patients

Demographics Information of ED

Patients

Health Care Transaction Model (HCTM)• To gain deeper understanding of the

drivers of consumer behavior, a follow-up questionnaire was administered to those screened to have ED.

Perceived they have condition

Consult their doctor about

condition

Receive a perception

Fill the perception

Actually take the

medication

Intend to refill

prescription

•Younger man expressed higher level of embarrassment in talking about the condition and were waiting to go away•For older men the belief that this was a normal phenomenon of aging seemed to create reluctance to seek treatment•For those who seek treatment, Viagra was the most commonly suggested medication.

Key Drivers Influence Treatment Seeking

29%

15%4%9%5%

7%2%

3%

2%

1%2%

22%My spouse or sex patnerNewspaper or magazineTV, radio or movie commercialA TV or radioshowA newspaper or magazine adA friend or relativeSomething that was mailed to meA sex counselor or psychologistPharmacistTelephoneThe InternetSought treatment entirely on their own

21%

21%17%15

%

5%4%9%

3%7%

Barriers to Seeking Treatment (ages 20-39)

Waiting to see if the condition will go away

Doesn`t happen all that often

Embarrassed to talk about it

Don`t want to take drugs for this condi-tion

Afraid that underlying problem might be se-rious

Couldn`t easily about it

Condition is not that important to me

Don`t believe that any-thing can be done about it

Believe that the condi-tion is a normal part of aging

18%

21%

19%10%

4%6%5%4%14

%

Barriers to Seeking Treatment (ages 40-49)

Waiting to see if the condition will go away

Doesn`t happen all that often

Embarrassed to talk about it

Don`t want to take drugs for this condition

Afraid that underlying problem might be se-rious

Couldn`t easily about it

Condition is not that important to me

Don`t believe that any-thing can be done about it

Believe that the condi-tion is a normal part of aging

21%

18%13%

10%

5%1%7%5%

20%

Barriers to Seeking Treatment (ages 50-59)

Waiting to see if the condition will go away

Doesn`t happen all that often

Embarrassed to talk about it

Don`t want to take drugs for this condi-tion

Afraid that underlying problem might be se-rious

Couldn`t easily about it

Condition is not that important to me

Don`t believe that any-thing can be done about it

Believe that the condi-tion is a normal part of aging

11%8%

10%

14%4%3%12%

7%32%

Barriers to Seeking Treatment (ages 60+)

Waiting to see if the condition will go away

Doesn`t happen all that often

Embarrassed to talk about it

Don`t want to take drugs for this condition

Afraid that underlying problem might be se-rious

Couldn`t easily about it

Condition is not that important to me

Don`t believe that any-thing can be done about it

Believe that the condi-tion is a normal part of aging

Interest In Trying Cialis

Viagra current users Viagra dropouts0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% 90%84%

97%

68%

97%89%

58%52%

70% 70%

100% 100%

USFranceGermanyItalySpainUK

PartnersCommon aspects of partner response was the lack of information about ED prevalence and the potential reason for it’s occurrence.

Some women believed : ED was causes by stress, work-related stress, medical conditions.They felt they were not attractiveLess physical intimacy with their partner, as a result more tense relationship

Most couples were uncomfortable to join discussion ED.

The most common sources of ED drugs information was media reports and word of mouth

Problem Analysis

Problem Analysis

How Cialis gain market share and compete with existing market leader Viagra?

Should Cialis be priced higher or lower than Viagra?

How Cialis choosing the strategy to compete with Viagra :

- Niche strategy- Direct compete (head to head competition)

- Beat strategy (differential Positioning)

SWOT Analysis

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

• The absorption of the drug was not affected by food intake

• Cialis has a shorter onset time and the effects up to 36 hours.

• Rare incidence of visual irregularities

• Record submission time of Phase III to FDA

• Has a great Global Marketing Sales organization to improve Cialis

• Cialis is a new entrance•  Low Compound Annual

Growth Rates (CAGR) in Germany and France. This may lead to low return in these markets.

• The banned direct-to-consumer in Europe will lead to inconsistency in the marketing and present greater difficulties in targeting in countries.

• High CAGR n the US, UK, Italy, Spain, Canada, Mexico and Brazil. There is a opportunity to gain market share in these regions.

• The high dropout rates of Viagra after first year offers potential targeting for Lilly ICOS LLC.

• Current Viagra users and dropouts user willing to try Cialis

• Positioning by considering love and intimacy

•Viagra and Levitra as current competitor

•Upcoming new competitor •Bad experience of using Cialis

•Barriers to seeking treatment

•Viagra well positioned and well known, but Cialis unknown

Internal factors

Externalfactors

STP Cialis

Segmenting

• Men with Erectile Dysfunction in United States and Europe (France, Germany, Italy, Spain, and United Kingdom) and age 20 – 65 years old.

Targeting

•Age :•Core Target Age 50 – 59, 60+ age group•Additional Target Age 20 – 39

•Income : Middle to Low •Employment : Employed full time and retired•Marital status•Primary : Married or Living together (76,5%)•Secondary : Single, Never married (10,5%) & Divorce or separated (10,3%)

Positioning

• Cialis, for male who suffer from Erectile Dysfunction will help you to be more intimate with your partner and quality of life because of its durability, shorter onset and flexibility with meal taken.

ProductProduct

Brand name : Cialis

Form : Tablet

Serving size : 10 mg, 20 mg

Cialis is only available with a prescription and have to consult with Primary care physician/ urologist first.

ProductPrice

Slightly lower than Viagra ($10/pill) Cialis set the price on $ 9 / pill

To attract people that Cialis is better than Viagra even the price is less. It has better durability and more safety because all product are sell with doctor prescription.

ProductPrice Net Sales Growth

Net Sales Growth

1996 1997 1998 1999 2000 Average Net Sales

Percentage Growth

- 15,9% 8,4% 7,32% 9,58% 10,3%

In Millions 7.346,6 8.517,6 9.236,8 9.912,9 10.862,2 -

Forecast Net Sales (From average 10,3%)

Year 1 Year 2 Year 3 (15% Growth)

Year 4 (20% Growth)

Year 5 (25% Growth)

In Millions 11.948,2 13.178,9 15.155.735 18.186,9 22.733,6

Forecast

ProductPlace

☺Drug store☺Clinical Pharmacy☺Hospital Pharmacy☺ Online Pharmacy

Below the line• Distribute of Cialis product to

doctor -> family doctor, urologist. Since they have big percentage in ED consulted.

• Influence doctor to use Cialis product to their patient.

Promotion

Above the line Media advertising : To increase the brand

awareness of CialisTV advertisement

Promotion

Above the lineTV advertisement

Promotion

Above the lineMagazine Ads: Woman

magazine like Cosmopolitan, Allure and Male Magazine like : FHM, GQ, Maxim, MensHealth.

Sponsorship : Sponsoring the health

sexology seminar and health consultant.

Held an event to introduce Cialis and giving free consultation by doctor s, physicians.

Promotion

Above the line Online media

Make a website and Online store. People can seek the information about ED and how to solve the problem.

Put the advertisement about Cialis product corporate with online Male and Female Magazine

Promote the product to healthy website Customer Service

Maintain customer from New Customers to Loyal CustomersHandle customers complainInform events and programsFree consultation

Promotion

CONCLUSION

“With low price, long durability (36 hours) and fast sensitivity (15 minutes), Cialis will have a big

successbecause another competitor only

have short durability, such as Viagra, the market leader.

Even they dominate the market, Cialis can take over the market

from Viagra”

THANK YOU!