from professor on Pfizer part 2 discussion post Superb input to the discussion, leaving me with really nothing to say (hard to believe, I know). However, I wonder who determined the initial market for inhaled insulin and if it was ever re-evaluated and validated. Answer: it was Nektar's invention that happen before Pfizer made discoery on diabetes insulin. need more analysis on the initial market and completion ?? answer in less than 500 works with reference. Can we also point the source of answer from lecture notes 3 and ofcourse outside source. Running head: Eli Lilly Case 1 INDIVIDUAL ASSIGNMENT Eli Lilly case Study Radha Muthukrishna AD 741 September 25, 2016 INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 2 Abstract The main objective this paper is to understand the demand of the diabetic drugs in the US as well as in world market. The population of diabetic patients is increasing rapidly. Many companies are coming with innovative drugs to trap this market. With the help of this paper, we will study the marketing strategies of the Pfizer and Eli Lilly which these companies employed to get success in the diabetic drugs market. With the help of different marketing concepts we will try to find out the reasons behind the failure of the Pfizer and Eli Lilly products. INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 3 There is huge market for pharmaceutical companies in USA especially for companies who deal in the manufacturing of diabetic drugs. Diabetes affects nearly 24 million people in the U.S. and an estimated 246 million adults worldwide and is the 5th leading cause of death by disease in the U.S. A new report by vision gain predicts the world market for diabetes medications will reach $55.3bn in 2017. The antidiabetic medicines industry generated $35.6bn in 2012, and its revenues will show strong growth to 2023.( http://www.visiongain.com/Report/1033/Diabetes-TreatmentsWorld-Drug-Market-2013-2023) Figure 1 - Author (source : In order trap this market both Eli Lilly and Pfizer came their own diabetic drugs named Humilin and Exubera respectively. Unfortunately both drugs failed to fulfill the expectations of the customers. To gain an understanding and find some possible explanations, we will analyze the situation from different points a view. INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 4 Figure 2: Author, Source Be big and arrogant It has been observed that despite having the advantage of strong brand image, economies of scale, substantial market share, big companies failed to grow as they concentrate more on defending their market share rather than on innovation. Such companies focus only on processes and product creation instead of listening to customers (Christensen, 1999). For example, prior to 1980, Eli Lilly had market share of around 80% of the US insulin market. But they failed to maintain their hegemony in this segment as they showed reluctance in introducing new products such as insulin pens because potential cannibalizations risks (Christensen, 2004). Same is the case with the Pfizer. Company introduced the world's first inhaled insulin named Exubera. But due to poor response from the customer, company decided to withdraw its inhaled insulin brand Exubera. For this failure company blamed the marketing strategy of the company. For them the product was excellent (Simons, 2007), that is, the problem was outside the company. INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 5 Did not listen to customers pain Eli Lilly and Pfizer invested millions of dollars generating innovative products related with insulin, like Humulin that was supposed to be the \"supreme breakthrough in insulin product\" (Christensen, 2004) or Pfizer with their Exubera, the \"next big thing in drugs\" (Weintraub, 2007). Both companies failed to understand the true needs of the customer. In case of Humulin the patients were not dissatisfied with animal insulin (no pain) and were not willing to pay price premium for a 100% pure product (Christensen, 2004) that had the same functionality, reliability and convenience of the traditional one (Christensen, 1999).Simultaneously the Exubera at 30 percent premium. It was around $1-3 a day more than the injectable insulin. This means consumers had to pay around $70-100 extra per month for this drug throughout life. Comparing its benefits with the price, consumer found this drug to be very expensive. The basis of competition There is no doubt that the drugs of both Eli Lilly and Pfizer were very innovative. Product tried revolutionized the insulin market. When these companies introduced their product there was hardly any competition. Humulin was considered to be 100% pure insulin. Unfortunately market did not absorb this innovation because at that time the basis of competition in insulin market was in the dimension of convenience and the new innovation was related with reliability. (Christensen, 2004). People found no point in paying premium price for this product as traditional insulin was fulfilling their needs in much lower price. The Exubera case was different from the Humulin. With the introduction of humulin, Pfizer tried to shift the basis of competition. The company came with a product which was painless. But, products had lot of short comings. The drug was absorbed through the lungs; it excluded patients suffering from lung disease. Most of the physician found this drug as unsafe for lungs as this drug had the tendency to decrease lung capacity. Prior to taking this drug, every consumer had to undergo pulmonary test which made this whole process very expensive. Consumer shifted towards competitors as they found whole process to be very time consuming and complex. ((Lawsuit Guru, 2008).) INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 6 The influence of stakeholders The stakeholder in the pharmaceutical industry plays a very important role in the success of any medicine. One of most important stakeholder in the pharmaceutical industry is physicians. In case of Eli Lilly and Pfizer new products, physicians did not showed any interest in prescribing the drugs to the patients. (Christensen, 1999). In the case of Pfizers Exubera was critical, because they did want to know about the product. They said that it was uncomfortable and difficult to use (Simons, 2007). Figure 3: Author, Source: Conclusions In the end, we can say that both products failed only because they were not designed as per the needs of the people. Both companies Eli Lilly and Pfizer focused only on the products and forget the customers. They did not consider the customers' convenience prior to introducing the product. As a result, patients found it very difficult to adopt these products in their daily life style. Companies did not carry out proper homework prior to introduction of this product. There were serious problems with the business model of these companies which resulted in the failure of their products. INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 7 These two products had serious problems to fit customers' convenience, with poor result in adapting to patients lifestyle, not listening to their pain. Both companies where focused on the product, blaming the market for their failure, having serious problems with the business model, centered in the physicians as stakeholders. Recommendations In today's innovative market, companies cannot relax. They need to do constant innovation to order to grow. Over the last few years, Eli Lilly has failed to come with innovation products. They need to increase their focus on the R&D department. I recommend that the company should create new division for developing new products. This will increase productivity in the company. The company should focus on decreasing the bureaucracy and increase the flexibility. Apart from this, the company should motivate the employees to come with new idea. Recently, company decided to focus on core therapeutic areas and key geographies. 2015. As per Eli Lilly Financial Guidance, the company is expected the revenue for 2015 to be between $20.3 billion and $20.8 billion (https://investor.lilly.com/releasedetail.cfm?ReleaseID=890008). Pfizer already have such type of organization structure which is proposed above. The company just need to focus on the finding the needs of the customers. Pfizer has to improve the ways they test the new products and validate the market, rather than developing new drugs by their self. The company needs to do proper marketing research prior to introduce new product in the market. The pricing of the product also play a very important role in the success of the product. Hence, the company should price the product as per the target market. Whenever any company came with the new product, it should carry market validation. For market validation, the companies can take the help of Adamss (2002) Pyramid of Influence. INDIVIDUAL ASSIGNMENT - ELI LILLY CASE 8 Appendix References: Adams, R. (2002). A good hard kick in the ass: Basic training for entrepreneurs. New York, NY: Random House/Crown Business Christensen, C.M. (1999). Innovation and the general manager. Boston, MA: McGrawHill Irwin Christensen, C.M. (2004). Eli Lilly and Company: Innovation in diabetes care. Boston, MA: Harvard Business School Publisher Gutierrez, C. (2007, October 18). Pfizer washes its hands of Exubera. Retrieved on May 27, 2012 from http://www.forbes.com/2007/10/18/pfizer-earnings-closer-marketsequities-cx_cg_1018markets47.html Lawsuit Guru (2008, Jun 27). FDA approves first inhaled insulin. Retrieved on May 28, 2012 from http://www.youtube.com/watch?v=gOy12-VIWI4 Simons, J. (2007, October 19). How the Exubera debacle hurts Pfizer. Retrieved od May 27,2012 from http://money.cnn.com/2007/10/19/magazines/fortune/simons_ pfizer_erbitux.fortune/?postversion=2007101916 http://lifescienceintelligence.com/market-reports-page.php?id=A376 http://anthony-romano.com/media/61821faed1a1e04bffff953effffe41e.pdf https://www.visiongain.com/Press_Release/405/Diabetes-drugs-market-will-reach-553bn-in-2017-with-further-growth-to-2023-predicts-visiongain-in-new-report jsb_intelligence.pdf https://investor.lilly.com/releasedetail.cfm?ReleaseID=890008s The transtutors website is going through updation for next three month. If you need any help on the current assignment done by me, then you can contact me on ruchidhiman 76 at the rate of gmail dot com The transtutors website is going through updation for next three month. If you need any help on the current assignment done by me, then you can contact me on ruchidhiman 76 at the rate of gmail dot com