Harvard Business School Case

CICS, a small biotechnological start up (no FDA registration experience and no marketing capabilities) and Elli Lilly Company, a large pharmaceutical company with strong competencies in developing innovative quality of life medicines. Competitive product Vicarage has strongest brand recognition of any pharmaceutical brand in the world, practically the synonym for DE (product well established in market, dissolved taboo). Pfizer also known for fierce and sustained marketing campaigns post launch (exceptionally high marketing budget) and largest sales force in industry.

Completion from Brayer's Levitate not relevant, expected to mainly target niche market of diabetics. Average DE patient is in his ass with over 80% having a sexual partner (estimation 30 Mn in US, 150 Mn men worldwide). Less than half of those who perceived they had DE consulted a doctor, for different reasons: younger men more embarrassed, older men believe Its normal consequence of aging, therefore reluctance for seeking treatment. Turns from physical condition to psychological (severe relationship problems).

Spouse or sex partner most Influential In convincing patient to get retirement for DE vasoconstriction level with Vicarage varies, number of dropouts increasing, interest in trying alternative rising large market potential all doctors have same knowledge about DE, urologists know more, Pops are not too comfortable discussing sexual problems with their patients during yearly checkups  address capitalistically has various product attributes that help establish unique Selling Proposition: long lasting performance (endurance, flexibility), less side effects (efficaciousness, effectiveness; not lessened by high fat meals like Vicarage, safety) retreat product potentials. Alternatives options considered but not pursuedStrategyProsCons"Cheaper & Better"increase consumption per preponderances trust ?+ qualitatively cost with higher sales volunteering product below valedictories actual and potential competition ?+ target Vagrant loyalty will be generated ?+ easily irreparableness price sensibility's create a competitor cover treatments market higher potentialities % of men visit specialization's marketing cost ?+ country specifications less dominant Brayer market leader in Repossess heart problematically sales volume per neutron.

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Reconsideration's (Target segment): Initially for product launch focus on US market, once brand is established European market and rest of world will benefit from synergies (US commonly trend setter), men between 45- 74 with sexual partner (average US DE patient is 58 yr old) + spouses/ sexual partner (mainly women BTW. 35 and 65); BIB strategy to free Pops from awkwardness of addressing and prescribing DE medication (Pro - allows approaching US segment of almost man men (estimation about potential customers considering current Vicarage users/ Vicarage reports and overall DE patients), Con- potential threats of going into direct competition to Vicarage)Product: focus on product attributes that make Scalia unique: long duration (as fast as mini + up to rash) and the flexibility that this brings couples. Scalia as the pill for couples who helps regain a normal and healthy sex life (no pressure to perform for both patient + partner).

Emphasize safety with almost no side effects (compatible with high fat meals; important since American diet in general seems less healthy + 43% of DE patients have high blood pressure and [or high holster)Pricing: Premium pricing strategy; we believe that we can convince the customer that the attributes of Scalia exceed those of Vicarage, therefore the price should not only resemble this, furthermore we are sure that customers are willing to pay a premium for a better product (Con- strategy might backfire if customers aren't convinced by Value Proposition + Scalia USPS, if don't see advantages won't pay excess price; price strategy somewhat alterable in case Vicarage commences price war - general strategic alignment not negotiable)Promotion: Communication focus on lassie media; print/ billboard advertising: 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 drug" trap); TV prime time shows that reach target audience, male specific I. E. Sports advertising; no celebrities, average couples as centre of communication.

Communication message should focus on communication/ dialogue as the key to a healthy sex life + relationship, DE is treatable, encourage couples to talk openly about the condition ND see a doctor/ seek treatment; Scalia as the pill for couples can help to rediscover intimacy and endearment in a mature relationship; furthermore multifaceted below the line marketing actions; physician approach: take advantage of trained sales force (help dissolve insecurities about addressing condition), show distinct advantages of Scalia 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 someplace: as Scalia is a prescription drug it will be available at harmonies and local drug stores. Ensure stock before campaign launch, so demand can be met and potential buyers aren't driven away by unavailability. Free samples at doctors and hospitals, issue voucher through website redeemable at pharmacies/ drug stores.

Implementations believe in the advantages of our product and therefore are potential target segment and relying on past Vicarage sales and market share we believe that we can initially gain a 15% market share within 1st year and are expecting to grow 10% annually over the next 5 yr. With an initial price of $12 per ill (bundled in packs of 6 reflecting current customer consumption habits) we remain affordable to the average customer but we are clarifying our premium status. Thus we expect sales of $Mann and a profit of $Mann (margins = Vicarage) (see exhibit 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 $Mann for launch and first year (distribution negotiable, 50% classical advertising).

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