P8S 9-303 038

"#$%#&'()**#+, -)$./ *0 1$23)*

"$&) 4*5./
"$&) 6+$%/&#& 7/ 8$90&: ;5**$ -0/

!"#$"%&'())"*+ -(#./ )0 1#23() 456 789:9 :;<
Case Analysls submlLLed by: 1aposh uuLLa 8oy

Mark 8arbaLo, Lhe execuLlve dlrecLor and global producL Leam leader had Lo launch a new male
lmpoLence medlclne ln a markeL wlLh an esLabllshed leader vlagra". 8ob 8rown, Clobal MarkeLlng
dlrecLor for Clalls(Llly), Leonard 8lum, vlce presldenL of sales and markeLlng, lCCS and 8eebe (uS 8rand
Leader) were responslble Lo come up wlLh recommendaLlon on Lhe Co 1o MarkeL, sLraLegy for Clalls.
1he maln Lask was Lo ldenLlfy Lhe LargeL markeL and poslLlon lL agalnsL Lhe compeLlLlon.
1he LoLal markeL was esLlmaLed Lo be around 30 mllllon men ln uS and 130 mllllon men
worldwlde. 1he world wlde focus was segmenLed lnLo 3 affllllaLe groups - uS, Lurope ( lrance,
Cermany, lLaly, Spaln and uk), Mexlco, Canada, AusLralla and 8razll. Lach afflllaLe group was glven Lhe
ablllLy Lo Lake LacLlcal declslons. 1he maln declslons Lo be made were - deLermlnlng how Lo segmenL Lhe
markeL, LacLlcal allocaLlon of markeLlng budgeL for afflllaLes, compeLlLlve poslLlonlng and prlclng.

8ecommenLaLlon #1 : MarkeL SegmenLaLlon
! #$%&' ()*$++),' -.(/)-0,/ 10.&02 -$ *%((),- %2)(2 $3 40./(. .,' 40./(. 5($6$%-2 3$( 78 .,'
9%($6)., *$%,-(0)2: 1hls ls based on Lhe analysls below.
AL a sLraLegy level, Lhe markeL was segmenLed Lo flve afflllaLe groups - uS, Lurope ( lrance,
Cermany, lLaly, Spaln and uk), Mexlco, Canada, AusLralla and 8razll - Lo dlvlde Lhe global markeL of 130
mllllon men. AL a LacLlcal level, Lhere was sLlll a need Lo segmenL Lhe markeL on Lhe basls of
demographlc, paLlenL, physlcan and/or currenL vlagara usage. vlagra had a monopoly and was avallable
for all segmenLs, belng Lhe only player ln Lhe markeL. lurLher, Lhere were hearL relaLed lssues on uslng
vlagara and around 130 deaLhs were assoclaLed Lo lL. roducL comparlslon beLween vlagra and Clalls ls
glven below. Consumer research found LhaL efflcacy, safeLy and duraLlon were lmporLanL
conslderaLlons. Clalls ls a beLLer producL based on Lhe feaLures needed by Lhe consumers. SegmenLaLlon
of users, based on currenL vlagra users, vlagra uropouLs and noL had used vlagra was done. 1hls was
!"#$"%&'())"*+ -(#./ )0 1#23() 456 789:9 :;<
Case Analysls submlLLed by: 1aposh uuLLa 8oy
done across uS and Lurope. 1he resulLs lndlcaLed LhaL people who were currenLly uslng vlagra were
more eager Lo Lry Lhe new Clalls Lhan Lhe ones LhaL had never Laken any drug for Lu. 1hus, LargeLlng
currenL vlagra users and dropouLs made sense for Lhe lnlLlal launch.


8ecommenLaLlon #2 : 8.&)2 .,' ;.(<)-0,/ =%'/)- >&&$*.-0$, #0-? . ()@),%) /$.& $3 ABCC; $( ?0/?)( 02
D)&$#:


1hls ls based on Lhe analysls below.
1he revenue goal for Clalls was aLleasL $300 mllllon. lurLher, based on Lhelr company
flnanclals, for year 2000, abouL 48 was Lhelr Sales and Ceneral AdmlnlsLraLlve expenses. Conslderlng
Lhls Lo be a new block busLer producL for Lll Llly, l would assume Lhe LoLal spend for Sales and MarkeLlng
Lo be around $240 mllllon. lfzer spenL around $108 mllllon ln adverLlslng for vlagra ln 2000. LnLerlng
as an lncumbenL Lo vlagra, Clalls producL Leam should spend aLleaL $120 mllllon for adverLlslng and
remalnlng $120 mllllon for LoLal world wlde sales. Sales force could be dlvlded dependlng on markeL cap
of varlous counLrles. AbouL 33 (1/3) of Lhe adulLs LhaL saw abouL Lhe drug on 1v, dlscussed Lhe drug
wlLh Lhelr docLors. Around 44 of Lhese paLlenLs, who dlscussed wlLh Lhelr docLor were recomeneded
wlLh a prescrlpLlon drug. 1hls means adverLlslng should be Lwo fold. l would recommend spendlng $80
mllllon on adverLlslng on 1v, prlnL and web. varlous goal drlven campalgns could be made and reacLlon
!"#$"%&'())"*+ -(#./ )0 1#23() 456 789:9 :;<
Case Analysls submlLLed by: 1aposh uuLLa 8oy
should be measured. Around $40 mllllon should be spend on markeLlng drugs Lo docLors. lree samples
should be provlded for Lhe docLors Lo glve paLlenLs. 1hls wlll enable our LargeL segmenL LhaL currenLly
uses vlagra Lo glve a LesL drlve Lo Clalls.

8ecommenLaLlon #3 : Launch SLraLegy
10.&02 2?$%&' &.%,*? .- . 6(0*) $3 AEFG60&&H 2&0/?-&I ?0/?)( -?., 40./(.H D%- /0@)2 . JK ?$%(
#0,'$#: >&2$H L4 .'2 2?$%&' ?0/?&0/?- -?) )M-(. '%(.-0$,H #0-? ().& 6)$6&) .*-0@) 0, 26$(-2: L4 .' 2?$%&'
?0/?&0/?- -?.- -?02 '(%/ 02 2.3) 3$( ?).(- .,' -?) 6.-0),- *., #.0- 3$( -?) (0/?- -0+): N?I20*0.,2 2?$%&' D)
/0@), 3()) 2.+6&)2 .,' +$() /%0'.,*) .D$%- -?) D),)30-2 $3 -?) '(%/ .,' .,I ()2%&-2 $3 -)2-2 '$,) DI
O5>:
1hls ls based on Lhe analysls -
vlagra had a flve year lead and many physlcans and paLlenLs were used Lo lL. Also, Lhere was a
hlsLory of slde effecLs generaLed. When Clalls comes, Lhere wlll be no hlsLory. lurLher, Clalls remalns ln
Lhe sysLem for a longer duraLlon, whlch ls good for Lhe producL, buL Lhere ls a chance of slde effecLs for a
longer duraLlon. ln order Lo launch Clalls, Lhe docLors should be flrsL convlnced and glven Lhe rlghL
dlrecLlon Lo declde whaL ls rlghL for Lhelr paLlenLs. Clven, Lhe cllnlcal Lrlals dld noL produce any slde
effecLs, Lhe 1v ads should hlghllghL Lhe duraLlon - Llme ls rlghL" wlLhln Lhe 36 hour wlndow. 1hls wlll
glve a compeLlLlve edge over vlagra. CelebraLles always have lmpacL on Lhe audlence. Powever, slnce
vlagra already dld Lhls, Clalls should show regular people engaglng ln sporLs and are acLlve.