Introduction: introduce case state central issue(second paragraph) key characteristics competitive environment

Consumer Behavior role of partner Exhibit 7b statistics of ED patient behaviors (exhibit 8)

Value proposition higher quality (less side effects) flexibility (24 hour activation time)

Segmentation of Market (look at Exhibit 6) focus on US (regional segmentation) focus on age group couples (men with consistent partners, Exhibit 6) highly educated sexually active

Target Market: Males decide your own age groups Mid to High Income - Exhibit 6 Secondary education - Exhibit 6 Consistent relationship or partner - Exhibit 6 United States Active lifestyle

Price strategy:Higher than current Viagras price because of better value proposition.Data Analysis1. Qualitativea. educated people are more likely to talk to a doctor (Exhibit 6)b. partners are a key motivator for treatment2. Quantitativea. Break-even point analysis using Viagras data

There is a big market for ED medication:30 million/ 138,053,563= 21.73% of men in the US experience chronic ED (138,053,563 is the number of males in the US in 2000. Article states that 30 million men in US experience chronic ED)

Market size3 million current viagra users (90% want to try Cialis)6 million dropouts (84% want to try Cialis)Key metrics In order to reach $500 million in sales:Lifetime Value of hypothetical Cialis customer: $862.73One-year value of cialis customer: $647.05Customer lifetime: 1.33 years772,743 customers needed to reach sales goal

Churn Rate75%

Lifetime1.33

Refill55

Refills per year6.64

Pill cost15

Pills6.5

Prescription Cost97.5

Annually $ 647.05

772,743

Recommendation follow a beat strategy

Action steps create advertisements that aim for correct target age and include partners utilize sales force to communicate to physicians (PCP)

Alternatives Market Strategy Niche market target diabetes ED people Older Market

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