Case study notes



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Case study notes


There are many stories that have emerged over the years concerning Pfizer’s product Viagra. Some of these are true, but many are simply fictional stories developed to try and reinforce a particular argument. One of the most common stories is that Viagra was the result of luck. This case study explores the long 13-year journey from laboratory to the marketplace and explores some of the key challenges faced by Pfizer: most notably, project evaluation considerations, when the available market research evidence suggests a small market for the product; and, product launch considerations, when impotence is such an unpopular topic that it is almost impossible for advertisers to refer to it without alienating the very consumer base they are trying to reach.

Case study questions


1. Was Viagra the result of serendipity or is this journalistic licence to help sell a story, where the real story is a complex one of difficult decisions full of risks?

It is true that the general press has consistently presented Viagra as an innovation that was the result of luck and an accident. This is a good illustration of the problem of the public perception of science (discussed in Chapter 1). It is true there is an element of good fortune (as with all research) and it originated from another research project, but fundamentally this research can be traced back to novel prize winning science. This is not good luck and fortune; it is hard work and dedication. Moreover, the case illustrates that at every turn the Pfizer team was faced with very difficult decisions and it was very effective management that eventually delivered a successful project; good management at the R&D level and at the marketing level.



2. Explain why it was so necessary to ensure marketing was involved in the early stages of this new product development project.

As the case illustrates, although there were technical challenges, one of the most difficult decisions was whether to proceed with a new product development project for a product where there was no established market. It was marketing’s input that helped convince the team that it may be possible to educate the market and build a brand around a drug for impotence.



3. Explain how despite the enormous resources of Pfizer a lack of available information made the evaluation of the new product proposal so very difficult.

This refers to market data and market knowledge. Put simply, because up to the mid 1990s impotence was considered a psychological condition and certainly not treatable with a drug, there was no market data available and there was no market for impotence drugs. This complete transformation of viewing the condition as treatable with a pill revolutionised not only this sector of medicine but many others as well.



4. Explain how the Viagra case needs to be viewed as a successful example of excellent applied science but also an excellent example of good marketing.

The applied science part is worth highlighting as it illustrates how attention to detail can reveal opportunities. In this case, it was the clinical trial scientist who noted and explored further the strange side effects of the angina drug. This was not simply dismissed but explored further, leading to a research project, etc. On the marketing side, it played an equally important role by not only exploring the possibility of uncovering a market but also by educating it and developing a brand. This is a highly sensitive area. In the US, sex is something that is not discussed openly and in many ways the US is very conservative, especially by European standards. The idea that a company could launch television ads or billboard ads openly discussing impotence was almost unbelievable at that time. But the marketing team succeeded in a very difficult task by handling it carefully and very sensitively.



5. How can Pfizer manage the threat posed to Viagra by new entrants to the market?

This will require students to draw on their marketing knowledge. Branding and advertising will help, but as the competition is also improving its products, Viagra will also need to improve its quality and performance or it will lose its market share. It seems the competitors have already improved their products and in some tests achieved better results than Viagra. More R&D may help, but price cutting may also help. In addition, the firm is considering loyalty schemes and other promotional campaigns such as buy one get one free, and so on.



6. How has Pfizer helped create a market for Viagra and thereby contributed to disease mongering?

This is clearly a serious allegation. The evidence from Australia would seem to suggest that Pfizer is guilty, but that is for others to decide. What this case reveals is the whole aspect of disease mongering and the scale and size of this issue. On one hand, we have health supplements such as vitamin pills where the producers claim benefits that the medical professional is doubtful of. And on the other hand, we have more serious drugs with genuine side effects that once again are being promoted as delivering benefits and the producers make wild claims that may or may not be true. There is a fine line between sales and education. On the other hand, one may argue the pharmaceutical industry is simply applying the marketing concepts from FMCG markets to drugs.



Case study notes


CSI and genetic fingerprinting: A case study

The US drama ‘CSI: Crime Scene Investigation’ (CSI) has been one of television’s greatest success stories of all time. It is a huge hit all over the world. The show's popularity owes a great deal to the writers and actors who bring the stories to life. But another intriguing element is the cutting-edge technology used by the crime lab trying to solve crimes. Collecting and analysing DNA evidence tops the list of the lab's forensic toolkit, and its ubiquity in shows like ‘CSI’ and the UK’s ‘Silent Witness’ and ‘Waking the Dead’ has increased public awareness to the point that many jurors in real-world courtrooms expect to see DNA evidence presented – whether a case calls for it or not. Indeed, such television programmes as CSI have come in for fierce criticism from police chiefs and prosecutors who argue that they portray an inaccurate image of how police solve crimes. There have, however, been some positive outcomes of the so-called CSI effect and that is the bringing of science to a mass audience and encouraging interest in science amongst children.

The extraordinary growth in the business of DNA fingerprinting has been matched only by the mass appeal of the CSI television shows. In just a few years the industry has grown into a 20 billion dollar technology intensive colossus. But where and when did this all begin? This case study shows how a UK scientist – Alec Jeffreys, driven by curiosity, uncovered a technique for DNA fingerprinting. First, we need to look at the background to this development.


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