• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18
  19. 19
    19
  20. 20
    20
  21. 21
    21
  22. 22
    22

Viagra. As Pfizer had spent a heavy R&D on Viagra and to make sure the success of it preceding its competitors, it had to think of ways to outperform them and always maintaining itself in the leading position and profitability.

Extracts from this document...

Introduction

1.0 CASE SUMMARY Pfizer is currently the world's largest drug company with revenues of $32.4 billion and an R&D budget of 7.1 billion as in year 2003. It became the world's largest pharmaceutical company, after its merger with Warner-Lambert in July 2000. It is also considered as the industry's best marketer. The company has three business segments, they are, health care, animal health and consumer health. Pfizer's products are found in over 150 countries. Pfizer is the first company which highlighted erectile dysfunction (ED) as a curable sickness and came out with their famous blue pill, Viagra. It had spent close to $2.5 billion for this pill in R&D and another $185 million annually to promote it. The marketing channel used is via medical sales representatives who promote Viagra to medical practitioners (doctors) and pharmacies. Viagra was considered a success in the first five years when it was introduced into the market in the 1990's. However, later on, competitors such as Bayer/Glaxo SmithKline Beecham and Eli Lilly had also introduced their version of pills for ED. This had threatened Pfizer's previously monopoly market. The case study had a detailed description on Viagra, Pfizer as well as its competitors. Challenges were also highlighted in the case and Pfizer would have to reconsider a change or modification of its marketing strategies in order to maintain as the leading company in providing solution for ED, and to recap the heavy R&D investment it had done previously. 2.0 PROBLEM STATEMENT As Pfizer had spent a heavy R&D on Viagra and to make sure the success of it preceding its competitors, it had to think of ways to outperform them and always maintaining itself in the leading position and profitability. ...read more.

Middle

4.3 Enhance Marketing This is done by heavily investing in advertisement, highlighting the product and outperforms rivals by making other products insignificant by building strong brand equity. 4.4 Dropping price This is one of the competitive strategies where Pfizer would drop Viagra price in order to remain relevant in the market. Pfizer has made huge profit since its launching of Viagra, but its competitors are still trying to breakeven. Dropping price would make its competitors suffer. 5.0 EVALUATION OF ALTERNATIVE STRATEGIES 5.1 Medical Sales Team Advantages: * Effective and efficient Currently Pfizer has spent a lot of capital to train its sales team to approach and service medical practitioners and pharmacies in order for them to provide information and Viagra to the end user. This strategy has been proven successful. * Professional endorsement As medical practitioners and pharmacies has the knowledge power to influence patients or end users to subscribe Viagra for their needs, the endorsement from these professional expertise are viewed to be an invaluable source and channel to market Viagra. Disadvantages: * High Cost Cost to maintain medical sales team as well as payment of commission to medical practitioners are high. Consequently, it resulted in high price of Viagra to end users. * Could not apply mass market penetration Consequent to maintaining medical sales team, mass marketing could not be applied as an implied agreement has been agreed upon the sales team and these professional practitioners. 5.2 Pre-empt rivals Advantages: * Block rivals on distribution channel Once the exclusive agreement has been signed by medical practitioners and pharmacies, they are not allowed to sale drugs of the similar function for certain period of time. Therefore, competitors would not be able to penetrate this market within the time frame. ...read more.

Conclusion

* Dropping price in stages Test market can be done on responses on demand versus price at each level. Pricing can be finally fixed at a level where profit and quantity are justified. * Restructure production & distribution strategy This is needed in order to match strategy 3 and 4 as production is expected to increase to meet rising demand. * On-line purchasing and distribution by website Viagra is a suitable product to be purchased and distributed on-line by looking at the light weight and size. This would also allow Viagra to reach global market much more quickly and cost effective. Long-term * Sponsoring global events Sponsor global events such as AIDS prevention, sports and health awareness programme. Sports events such as Formula 1 racing, football, basketball and other popular events normally draw a lot of audience and these events serve as good location to promote Viagra. Sports events also go through television channels and viewed internationally. Pfizer can expect a fast growth in sales with this move. * Enhance R&D on Viagra Currently, Viagra has many side effects and the features are similar to competitors. This move is seen to be vital to outperform competitors' products. However, drugs are tightly controlled internationally due to its impact on health. The improved version of Viagra could take years to reach the market. * R&D on Viagra for external usage / application This alternative should be given attention as some patients or end users are allergic to taking drugs or pills. External used application is said to be less risk inversed, and should function more quickly and more convenience. * R&D on Viagra for women As women might also face their own kind of problem as faced by men, huge potential market is seen in this area as female consists of almost equal percentage of population compared to male. ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. The Diversity of Distribution Channels in the Retailing Industry

    This is because Tesco has to pay there goods to be delivered to UK which is expensive they all so have to pay insurance ECT Suppliers Without suppliers Tesco would have not been successfully, Tesco relies on suppliers because of its Reputation, Brand Name and Image.

  2. What are the micro and macro environmental forces which may pose direct or indirect ...

    All these elements are seen in the government control of the licensing of the restaurants in the respective states of the country. For example, the existence of meat in menus in India is apparently offensive to the Hindu religion in the said market.

  1. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    This can be invaluable to a business when it is looking to expand its operations or overcoming deep, underlying management issues within the business. However, all this support often comes at a very high price which means that it can be out of the reach of smaller organisations such as ours.

  2. The Impact of Migration on the Reduction of Poverty

    We have again recapitulated very briefly the reasons for the choice of Mexico as our case study. Mexico provides an ideal ground for testing varying hypothesis relating to migration, remittances, poverty etc because of her closeness to the U.S.A. thus satisfying major condition of primarily a rurally poor economy providing

  1. Microsoft Case Study. Objectives, structure and marketing.

    A product is simply anything that meets customer needs. The product life cycle goes through many phases of its lifetime such as development, maturity and decline. In another words a product life cycle is a business model in which shows the life of a product in the market. After the product is launched in the market it will start

  2. PEST is a planning tool which is used by a business to evaluate and ...

    the hours they can drive otherwise they could be at risk from having prosecutions against Ginsters and their employees, as it is a criminal offence to not stick to these rules. Also Ginsters will need to ensure that all their van drivers have drivers card otherwise Ginsters could get into

  1. Investigating Internet Marketing

    Also the customer can buy products online and pay for standard delivery which takes 2 days (usually). Basically all companies sell on the internet and offer the latter service. Land's End (internet link www1.landsend.co.uk) This website was suggested by our lecture Derek Summers and there was a link to this website on citybit2 website.

  2. Unit 32 P3 explain how the developments in the consumer market have impacted on ...

    Tesco has released a click and collect service so that they can meet these changes to ?stay on top of their game?. Other radical changes include changes that have occurred when there is a change that has occurred in products that are acceptable for instance product that are like food

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work