To Grow the Sales of Viagra - Case Study Example

Table of Contents Table of Contents 1 Executive Summary 1 Viagra: Growth Strategy Executive Summary The key aim of this report is to examine some of the growth strategies that can be employed to grow the sales of Viagra. This report will propose several marketing strategies that can be employed by the Pfizer pharmaceutical company in order to increase the sales of Viagra and maintain the competitive edge of the drug in the market. The findings depicted in this report have been established by reviewing secondary information from different textbooks, journals and website sources. Through a review of various secondary sources it was established in this report that, Pfizer is faced with challenges revolving around marketing Viagra due to increasing competition and extensive regulation in the marketing and distribution of prescription drugs. Revatio and Caverject Impulse are among the drugs produced by Pfizer that present competition to Viagra. The company markets these drugs Pfizer in order to diversify its product portfolio and provide consumers with a variety of options to choose from depending on their personal preferences and needs. It is essential for the company to develop new and effective marketing strategies in order to grow the sales of Viagra and enhance the competitive edge of the product in the market. This report recommends that the company should tap into the global market by addressing the different needs of the global market. The company should also identify and segment the global market into different market segments with similar consumer characteristics so as develop effective promotional strategies that will effectively appeal to each segment. Moreover, this report recommends that Pfizer should employ promotional strategies such as educational campaign and celebrity endorsements in order to effectively sensitize the public how they can become proactive in addressing medical problems associated with sexual difficulties through the use of Viagra. Pfizer should consider the strategies proposed in this report mainly because they are evidence based and are bound to being about positive results. Introduction Viagra is a well-known pharmaceutical brand name that is commonly recognized as a drug used for erectile dysfunction treatment. Sildenafil is the general term of the chemical compound incorporated in Viagra. Originally, this compound was developed to treat a heart condition known as angina pectoris. However, following numerous clinical trials, it was established that Sildenafil has little effect on the treatment of angina pectoris but has substantial impact on penile erections. This compound is a phosphodiesterase-5 (PDE-5) inhibitor that works by facilitating blood flow to the penis thus enabling the erection of the penis during intercourse (Boollel et al 1996; Vardi & Nini 2007). Consequently, it was brought to the market under the name “Viagra” by a United States-based company known as Pfizer. Following its entrance to the market, the product realised an outstanding annual worldwide sales exceeding US $1billion. The exceptional sales performance realised by the product in only two years since its entry to the market can be attributed to the fact that the product more effectively addresses consumer’s needs as compared to other existing products in the market (Conrad 2007). Nevertheless, Pfizer is faced with challenges revolving around market segmentation and targeting of Viagra due to the increasing regulation in the marketing and distribution of prescription drugs like Viagra. In addition to this, new competition has emerged over time (Salyer 2004). It is therefore essential for the company to develop new and effective marketing strategies in order to grow the sales of Viagra and enhance the competitive edge of the product in the market. This report seeks to propose several marketing strategies that can be employed by the Pfizer pharmaceutical company in order to grow the sales of Viagra. Secondly, it will examine whether two products marketed by Pfizer namely Revatio and Caverject impulse are in the same product category as Viagra and whether these products present competition to Viagra. Furthermore, it will examine why Pfizer supports these drugs. In addition, this report will discuss the marketing mix that should be used to address doctors as the primary target of Viagra. Marketing strategies In order for Pfizer to grow the sales of Viagra, it is essential for the company to incorporate marketing strategies that will attract new customers and help to maintain the existing customer base. It is very important for the company to understand its market base, the existing differences and the needs of different market segments in the global market. Therefore, one of the strategies that the company can use to grow the sales of Viagra is effective market segmentation. Effective market segmentation involves grouping or categorising the market based on the specific consumer needs, characteristics or trends (McDonald & Ian 2007). It is worth noting that over time, Viagra has become a global brand that is used by consumers with different needs and consumers from different nations, cultures, ethnic and socio-economic backgrounds. Consequently, a universal marketing approach cannot effectively appeal to the different segments in the global market. Hence, effective market segmentation is crucial. In order for the company to effectively segment its global market, marketers should evaluate the needs and preferences of consumers. Furthermore, marketers should put into account the cultural and socio-economic aspects revolving around different global markets (Moschis, Euehun&Mathur, 1997). Once the company identifies and segments its global market into different market segments with similar consumer characteristics, it will be easy for the company to develop effective promotional strategies that will effectively appeal to each segment. This strategy can help to effectively market and increase the sales of Viagra since it enables the company to effectively target specific market segments that may not positively relate to mass promotional strategies. Moreover, Pfizer can grow the sales of Viagra by employing suitable promotional strategies. Pfizer can tap into its vast potential market by promoting Viagra as the solution to medical problems associated with sexual difficulties such as erectile dysfunction. Given the fact that Viagra is a prescription drug, the marketing environment of Viagra is highly regulated. Furthermore, and the direct promotion of Viagra as a drug is prohibited in some countries. Therefore, Pfizer can use promotional strategies that mainly focus on addressing sexual difficulties such as erectile dysfunction. For instance, the company can initiate educational campaigns that seek to sensitise the public on the medical problems associated with sexual difficulties such as erectile dysfunction and the possible solutions for addressing such conditions. Although sexual difficulties are prevalent, a considerable number of the global population lacks adequate knowledge or information on how they can address such issues. To make it worse, in some cultures it is a taboo for men to come out openly or talk about their sexual conditions since it is perceived as a sign of weakness. Therefore, by sensitising the public on medical problems associated with sexual difficulties and the possible solutions for addressing such conditions, the company will empower public members to become proactive in addressing sexually related conditions such as erectile dysfunction by using possible solutions such as Viagra. Different approaches or methods can be used to educate the public depending on the nature of a particular market segment. For instance, in a market segment comprising of middle class and upper population mediums such the internet, print materials and television can be effective in sensitising this population on how they can address sexual difficulties. For market segments with culturally sensitive populations approaches such as focus groups and work shops can provide a suitable platform of educating the public on how to address sexual difficulties through possible solutions like the use of Viagra. In addition to this, Pfizer can use celebrity endorsement as a promotional or marketing strategy to increase the sales of Viagra. Celebrity endorsement is a marketing strategy that involves aligning a particular brand or product to a popular celebrity with the aim of attaining the trust and attention of consumers. According to Khatri (2006) a celebrity endorser is a famous person who uses his or her status to advocate for a brand or a product by advertising or acting as the brand ambassador of a particular product. In this case, the company should contract popular celebrities to act as spokesperson for addressing sexual dysfunction through the use of Viagra. The main focus of this marketing strategy should be based on providing solutions to medical problems associated with sexual difficulties through the use of Viagra. Currently, most companies have realised the influence that popular celebrities on have on the perceptions and habits of consumers. For instance, the findings of a certain research study established that eight out of ten promotions with celebrity appearances realise very high viewing and response from the general public (Taleja 2010). Therefore, Pfizer can capitalise on celebrity endorsements to grow the sales of Viagra. The company can contract with famous musicians, athletes or sports men, who will act as spokesmen and ambassadors for sexually related dysfunctions. In addition to this, the alleged celebrity will endorse Viagra as a possible solution for addressing sexual related dysfunctions such as erectile dysfunction. Revatio and Caverject Impulse Besides Viagra, Pfizer offers two products that are in the same product category as Viagra. Revatio and Caverject impulse are good examples of products that the company markets. Revatio comprises of a compound called phosphodiesterase type 5 (PDE5) inhibitor. This is the same compound found in Viagra (Sildenafil) (Pfizer 2009). Revatio works by helping the muscles to relax and increasing the flow of blood in particular parts of the body. It is primarily used in the treatment of pulmonary arterial hypertension (PAH). It can also help to enhance exercise capacity in both men and women (Drugs.com 2011b). However, due to its compound content it can also lead to prolonged erection (Pfizer 2009). Although, Revatio contains the same compound and can produce the same effect as Viagra, this drug does not present significant competition to Viagra. This is mainly because this drug is primarily used in the treatment of pulmonary arterial hypertension and not erectile dysfunction. In most cases doctors prescribe this drug to treat PAH nevertheless one of the side effects associated with the use of Revatio is prolonged erection (Pfizer 2009). Generally, this drug can prove to be ineffective in the treatment of erectile dysfunction thus it does not present a strong competition for Viagra. On the other hand, Caverject Impulse is mainly used in the treatment of erectile dysfunction or impotence. It can also be used in the diagnosis of some causes of erectile dysfunction. In new born babies with genetically acquired heart conditions, Caverject Impulse is used to improve the flow of blood. Caverject Impulse helps to address erectile dysfunction by relaxing muscles and blood vessels in the penis thus increasing the flow of blood which in turn causes erection (Drugs.com 2011). It comprises of Alprostadil as the naturally occurring form of prostaglandin (PGE1). This drug is commonly administered through the use of injections. Caverject Impulse presents competition to Viagra as a product mainly because it provides to consumers an alternative and preferable solution of addressing erectile dysfunction. Basically, Caverject can be used to effectively treat erectile dysfunction thus it acts as a competitor to Viagra (Pfizer 2006). Pfizer supports Viagra, Revatio and Caverject Impulse mainly because they provide consumers with alternatives of addressing erectile dysfunction. For instance, whereas Viagra is administered orally through the use of a pill, Caverject Impulse is administered through the use of a syringe. Moreover, although these drugs generally help to address erectile dysfunction they work differently. For instance, Viagra works by facilitating blood flow to the penis, Revatio works by helping the muscles to relax and increasing the flow of blood in particular parts of the body (Conrad 2007). On the other hand, Caverject Impulse helps to address erectile dysfunction by relaxing muscles and blood vessels in the penis (Drugs.com 2011). In addition to this, these drugs have varying side effects. Therefore, by supporting these three types of drugs, Pfizer is able to diversify is product portfolio and provide consumers with a variety options to choose from depending on their personal preferences and needs. Marketing Mix In many countries, the marketing and distribution of prescription drugs like Viagra is highly regulated. As a result, the market environment for prescription drugs like Viagra is extremely complex. Doctors play an imperative decision making role in determining whether or not consumers purchase such drugs. Doctors are the ones to determine what condition a patient suffers from and what type of drug can be used to address the patient’s condition. Therefore, in marketing a prescription drug like Viagra, doctors are the primary target. In order to effectively appeal to doctors and build customer loyalty, the marketing mix that should be used include product differentiation, pricing and placement .It is important for the company to use program differentiation as a strategy of differentiating itself from its competitors. Over time various drugs that present competition to Viagra have emerged. Therefore it is important for Pfizer to carryout product differentiation by producing products that are reliable, effective and well –packaged, this will ensure that Viagra is differentiated from its competition. The key concern of doctors is to ensure that the medical needs of their patients are addressed through the use of effective drugs. Thus by providing reliable and effective drugs Pfizer can effectively target doctors. Secondly, it is essential for the company to use pricing strategies that are suitable for its different market segment around the globe. It is important for the company to use flexible pricing strategies in order to meet the needs of patients from different socio-economic backgrounds. Price is one of the factors that doctors consider when providing prescriptions for their patients. In most cases doctors will provide prescriptions of drugs that are more affordable. It is therefore important for the company to employ flexible pricing strategies that are suitable for market segments with populations from different socio-economic backgrounds. For instance, prices for market segment with lower income population should not be the same as those for market segments with middle and upper income population. In addition, Pfizer should target doctors through placement. The company should ensure that there is constant supply of Viagra, in hospital pharmacies. Availability of drugs is another factor that doctors consider when issuing prescriptions to their patients. Therefore, it is imperative for the company ensure that there is constant supply of drugs in hospitals and pharmacies. This can be realised by developing proper supply chain relationships. In addition, avenues such as the internet can help to ensure constant supply of Viagra. Recommendations In order for Pfizer to grow the sales of Viagra and ensure that the product maintains its competitive edge in the market. It is important for the company to; Tap into the global market by addressing the different needs of the global market. Viagra has become a global brand that is used by consumers with different needs and consumers from different nations, cultures, ethnic and socio-economic backgrounds. Carryout market segmentation. The company should identify and categories the global market into different market segments with similar consumer characteristics. This will make it easier for the company to develop effective promotional strategies that will effectively appeal to each segment. Employ effective promotional strategies that will sensitize the general public on medical problems associated with sexual difficulties and the possible solutions for addressing these conditions such as the use of Viagra. Some of the promotional strategies that can be used include; educational campaigns and celebrity endorsement. Use marketing mix such as product differentiation, flexible pricing strategies and placement. Conclusion Viagra is a drug used for erectile dysfunction treatment. Following its entrance to the market, the product realised an outstanding annual worldwide sales exceeding US $1billion. However, the market environment of Viagra is highly regulated since it is a prescription drug. Moreover, new competition has emerged over time thus it is essential for the Pfizer to develop new and effective marketing strategies in order to grow the sales of Viagra and enhance the competitive edge of the drug in the market. In order for the company to realise this, it is essential for it to tap into the global market by addressing the different needs of the global market. Over time, Viagra has become a global brand that is used by consumers with different needs and consumers from different nations, cultures, ethnic and socio-economic backgrounds. Therefore, it is important for Pfizer to capitalise on the global market in order to grow the sales of Viagra. Furthermore, the company should segment its global market based on different needs and preferences of consumers. This will enable the company to develop effective promotional strategies that will effectively appeal to each segment. In addition to this the company should employ promotional strategies such as educational campaigns and celebrity endorsements in order to sensitise the general public how they can become proactive in addressing medical problems associated with sexual difficulties through the use of Viagra. 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