Background
The case relates to a firm that is in the process of innovating and launching a new drug with the brand name Cialis in the market. The drug is aimed at treating impotence in men (Product team Cialis: get ready for the market, 2006, ¶ 3).
Problem
Method of launching the product in the market
The central problem faced by the firm involves formulation of a strategy that would result into effective launching of the new drug and penetrate the market. This is by ensuring that the drug is well differentiated and positioned in relation to its competitor drug, Viagra. In introducing the drug to the market, the management of the firm faced a dilemma in relation to the best partner with whom to form a joint venture. Some of those in management proposed that the drug should be handed over to another company that would test and launch the product independently. On the other hand, some of the executive managers were proposing that the firm had to be self sufficient in relation to launching and marketing the drug despite entering into partnership.
Goals and Objectives
Developing of high quality drugs
The management of the firm is concerned has a goal of Integrating the marketing of the drug with its production. This is through conduction of a market research to determine the needs of the consumers. To ensure that the drugs produced are of high quality, a series of tests aimed at quality control would be conducted. This would ensure that the drug production process meets the standards. This would help in eliminating the possible risk upon taking the drug.
Analysis
In order for the new drug to be effectively launched in the market, there are three main strategies available to the firm. These strategies include beat, direct compete and the niche strategy (Product team Cialis: get ready for the market, 2006, ¶ 4).
Direct competition method
The direct competition method would enable the firm effectively compete with Viagra which is already well positioned in the market. This is through ensuring that the production of the new drug that meets the same qualities as those of Viagra. However, through this strategy, the new drug may not be integrated effectively by the consumers. This is due to the fact that the consumers might not perceive additional value in the drug.
The beat strategy
Through this strategy, the firm will be able to position the new drug in the entire market. This is through introducing the new drug into all the market segments penetrated by Viagra. This would enable the firm meet the demand of the entire market since the needs of the consumers are fragmented. This strategy will ensure that the drug competes effectively in the market. In adopting this strategy, there is a risk of the drug losing since a large number of consumers have already established customer loyalty to Viagra.
Niche strategy
The firm would target a small market segment and develop a drug that meets their demand. To effectively meet the needs of the identified market, the firm will use various segmentation variables such as the age in producing the drug. This is beneficial since the firm will be able to address the demands of these customers more effectively. However, the strategy is narrow and hence the drug will not penetrate the entire market.
Recommendation
The firm should invest heavily in research and development. Research and development should be in relation to the drug production and marketing. Through market research, the firm will be able to understand the changes in consumer behavior. This would enable the firm integrate these changes in the production of the drug. On the other hand, research and development will enable the firm to innovate a drug that is not risky to consumers.
Reference list
Elie, O. (2006).Product team Cialis: get ready for the market. Harvard Business School: Massachusetts