positioning cialis fall07
TRANSCRIPT
1Ganesh Iyer
Product Team CialisSummary
Week 2,
EWMBA 206
2Ganesh Iyer
Part 1: Product PositioningExecution Toolkit
Product Manager’s Positioning Strategy Toolkit
1: For whom am I? Identify the Target Consumer Segment.For _____________, (Target Market)
2: Who am I? (value proposition, usp)our product/service is ______________________________________________ (Most Important Claim/Unique Selling Proposition)
3: Why buy me? (support)because ___________________
(Single Most Important Support)
4: And not the competition? (competitive set)among all ___________________
(Competitive Set)
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The Four Positioning Questions
1. For whom am I? (Target customer segment)
2. Who am I? (Value proposition, USP)
3. Why buy me? (Support)
4. And not the competition? (Competitive Advantage)
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Positioning a New Product in a Market with an Incumbent
Where will demand come from? » increase primary category demand (new customers) » steal from competitors (existing customers of rival) » re-capture dissatisfied customers (not happy with existing brand/solution)
Which of the above segments are able to perceive as relevant a given way of positioning benefit/improvement? (Learning, Self-selection)
With whom can we leverage dimensions that are objectively measurable?
With whom can we leverage dimensions that are not objectively measurable?
Evolution of Positioning: » In what phase to target each segment? (Build category vs. build brand vs.
protect brand)
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Erectile Dysfunction Drugs– Vertical Positioning
Levitra (Bayer/GSK)
4h ~4h
36h
Viagra(Pfizer)
A benefit associated with a performance or quality
Attribute, typically objective, for which consumers differ in valuation.
Examples in Automobiles, PC, Retail Markets
Cialis(Lilly/Icos)
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Erectile Dysfunction Drugs– Horizontal Positioning
Attitude towards sexual relationship
RomanticNaughty/Mischievous
A benefit that is a matter of “taste” or “attitude” often associated with psychographics, lifestyle, or underlying attitude
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Competition & Vertical vs. Horizontal Positioning of New Products
- Well defined objective benefit where more of is better
- Consumers know how much improvement is worth to them
- Difference in willingness to pay for improvement
- Segmentation based on tradeoff between particular benefit(s)
and willingness to payOne firm at low end
One firm at high end
- Price sensitivity not a primary issue
- More is not necessarily better for everyone
- Heterogeneity in tastes, attitudes
One firm offersbenefit BOne firm offers
benefit A
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Leverage Unquantifiable Dimensions- Vertical
Reliability/Consistency/Count on it
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Target Market Selection and the Incumbent Firm
Presence of Incumbent firm creates a new layer of segmentation
(users, drop outs, never tried but aware, never tried not aware)
= Behavior- based segmentation.
Does dis-satisfaction with existing = high willingness to try something new?
User of incumbent brand = hard to switch = last resort?
Who has advantage with those that never tried?
How do other relevant parties/influencers factor in?
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Evolving Positioning
CourageSympathyFight condition
MachoWinningSuccess
ExcitementWildNaughty
Building Category Building Brand Protecting Brand
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Importance of Positioning
Becoming more important in pharmaceuticals:
78% of drugs that entered the market in past six years were classified by FDA: » “not likely to be improvements over drugs already sold to treat the
same condition”.» Prevalence of lifestyle/Quality of life drugs
Positioning is not what you do to the product but what you do to the mind of the consumer!
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Positioning Strategies
Product Quality: (Ford: Quality is job 1)
Class of Users: (Pepsi generation).
Owning the category (Coke: The Real thing)
Against a Competitor (Avis) » Repositioning Hertz
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Positioning Strategies
Away from Competition (7-Up the Uncola)
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ATTRIBUTE 7Up Coke Pepsi Good for snacks 39 62 61 Good with meals 32 47 44 For active people 38 60 66 For mixing 66 18 4 Good for indigestion 60 17 8 Thirst quenching 60 30 28 Good tasting 58 62 59
Customer Analysis: Market Research Study
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Tell consumers 7Up possesses soft drink attributes» point of parity (see also K&K p. 312-314).
Emphasize fresh, clean taste (and no caffeine)» point of difference
Options
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7Up: “The Uncola”
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Positioning Traps (1)
Positioning on unimportant/irrelevant attributes
1992
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Positioning Traps (2)
Positioning with the wrong attributes
Diet Beer Gablinger’s Introduced in 1967 as a “low calorie” diet beer
Lite beer by Miller Less filling…means you can drink more!
» Everything you wanted in a beer » (like getting drunk)…and less. » 1/3 calories means you can drink 2 extra and call it even!
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Positioning Traps (3)
Positioning on someone else’s benefits…positioning is sticky
Burger King unable to claim “fast.” Already taken by McDonalds.
Mercedes Benz and General Motors unable to claim “safety.” Already taken by Volvo.
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Part 2: ED Market Updates: Global Performance
8%51%41%FebruaryAustralia
7%62%31%NovemberCanada
12%65%23%NovemberUSA
22%42%36%AugustMexico
17%45%38%MayBrazil
23%48%29%MarchSpain
15%37%48%FebruaryFrance
17%47%36%MarchItaly
19%46%35%FebruaryGermany
8%66%26%FebruaryU.K.
Viagra®
Cialis®
Share of PDE5 Market – Dec 2005
Cialis®
Launch Date 2003
Country
Levitra®
• Is Cialis better off with or without DTC in the launch phase?
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Cialis and ED Market- An Update
In the US 2004 ($1.03Billion)Viagra 65% ($672 million)
Cialis 20% ($206.6million)Levitra 11% ($112 million)
In the US 2005 ($1.1Billion) Viagra 61% ($665 million)Cialis 25% ($273million)
Levitra 14% ($140 million)
Worldwide 2004 Viagra $1.7Billion Cialis $552million
Levitra $265 million
Cialis in 2005 $746.6million
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ED Market Competitive Reactions
Advertising in the US first 11 months of 2004: » Viagra $98million» Cialis $151million» Levitra $147million
The “Cialis Promise” – Lilly gives men three free tablets of Cialis. If not satisfied Lilly will pay for three free tablets of Levitra or Viagra. If satisfied another round of Cialis. A Comparative Trial (92% ask for Cialis again)
Viagra “loyalty program” for every six prescriptions- get seventh free
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ED Market Further Updates:
Medical Experts: Men with ED problems = 30 million in US. Men who are interested in being treated probably half of that.
Worldwide (a modest 5-10% increase in 2004, likewise in 2005)
Number of new prescriptions is going down in US: 10% fewer in October 05’ compared to October 04’
GlaxoSmithKline sold marketing rights outside the US back to Bayer– “The ED market hadn’t grown as fast as the company had hoped…tough to sell the drugs without the help of consumer ads” (in most of Europe direct-to-consumer advertising is prohibited)
Sexual performance drugs likely to be covered by Medicare’s new prescription benefit beginning next year (limited quantities, only when medically necessary).
Lilly sets deal to acquire ICOS for $ 2.1 Bn.
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Competitive Advantages
First-Mover Advantages» Lock customers in.» Association with category» Network effects (among
influencers, consumers)» Economies of scale
Second-Mover Advantages» Free-ride on first-mover’s
costs of educating the market
» Learn from leader’s mistakes
» Learn the market size
Parallel Entry» Market may pay more attention when two companies are entering
together.– Benefit from increased category awareness
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Learning
Positioning is not what you do to the product but what you do to the mind of the consumer!
Good Positioning is an integrated answer to 4 questions 1. For whom am I? (Target customer segment)
2. Who am I? (value proposition, usp).
3. Why buy me? (support)
4. And not the competition? (competitive advantage)