Calls In the case of Scalia a few questions were raised: target market, relative emphasis on physicians and patients, segmenting.
Furthermore, it was agreed that a lot of attention has to be focused on competitive pressure and company’s responses. In the rest of this article we will discuss these questions by firstly doing a marketing analysis, followed by a strategic analysis (STEP) and a marketing mix analysis. Marketing analysis Customers: The Challis’s main consumers are males suffering from chronic impotence or erectile dysfunction.
Half of the users are men between the ages of 40 and 70. Other customers are doctors, prescribing the drugs for treatment.
Company: The company, Joint venture Lilly CICS LLC, Is focusing on the discovery and development of innovative drugs that improve life quality. Competitors: The competitors of Scalia are Vicarage (Pfizer) and Levitate (Brayer-ASK) owing a large portion of market share. The main path followed by competitors Is embracing a high-risk high-return strategy. Brayer-ASK concentrates mostly on development, whereas Pfizer has a direct-to- customer advertising policy.
Strategic recommendations (STEP) Segmenting: Scalia potential customers are men aged 20+ with impotence or DE. The close observation of the case gives us the understanding of the necessity to segment customers according to their needs and drug’s possibility to Improve the patient’s quality of life. Further segmentation will be based on Vicar’s market share, customer’s unsuccessful experience and other diseases that patients might have. Targeting: As can be seen in the importance-performance model (see appendix 1) the
Vicarage drop-outs, the partners and the males that have DE but do not use medicines are the most attractive segments. Half of Vulgar drop-outs have Indicated that they want to try another drug, partners are also important because they have influence on males. Moreover, the men who have never used the drug fear the side effects of Vicarage and want to try another drug.
Lastly, Vicar’s current customers and Physicians could also be targeted. However, this will probably lead to fierce competition with Pfizer.
Also, data shows that physicians, at this point, tend to value loyalties that are offered by Brayer more. Positioning: We need to position this product as a high quality, high class product. Main message will be that It is more effective, so It would attract Vicarage drop-outs and people who do not trust DE pills. Additionally, it can be positioned as a long duration pill – so couple would not need to adjust intimacy time to pill taking time.
The intended perception should be of a product, which is reliable, efficient and convenient. Marketing mix Scalia has a longer time duration and less side effects.
This makes Calls a high quality product. Therefore, costumers are willing to offer a higher price, even when the health insurance is not covering it completely.
We advise a price above $10. Promotion could be best done by advertising towards the patients and their partners. This will Increase the brand awareness. Internet could help with additional Information, this would allow customers who are shy or reluctant to avoid a direct talk with the doctor. Since Scalia is prescribed medicine the doctors should be 1 OFF Vicarage or Levitate.
Conclusion Lilly CICS LLC should be focusing mostly on the drop-outs of Vicarage, DE patients who eave never tried a drug and partners. It can be seen that by choosing to implement mass marketing strategy The Lilly CICS will risk the possibility to be crushed by market leader – Pfizer. However, multiple segment differentiated approach is the strategy that could help Scalia to take firm ground in the market. Customers should be reached through direct advertisement, internet and by informing doctors. Scalia will be a high quality, high class and effective product.
Attachment 1: importance-performance model.
