Viagra Falls

Viagra helps men who suffer from E.D., Erectile Dysfunction, but it looks like Viagra suffers from M.D. ... as in Marketing Dysfunction.

Today I learned Viagra is introducing a loyalty program where after six prescriptions are filled, the seventh prescription is free. Pfizer is calling this program the Value Card and is hoping this tactic will arrest their declining market share that rivals Levitra and Cialis have been aggressively capturing.

Janice Lipsky, U.S. Viagra Marketing Director, was quoted in the Wall Street Journal saying, “This is like a frequent-flier program, where we are building a relationship with our patients for the long term.”

This sounds like a desperate attempt by Viagra to stay competitive.

Viagra, launched in 1998, was the first-mover and first-prover in this category. However, Viagra has not been quick to respond to scientific advancements in erectile dysfunction drugs. It takes Viagra anywhere from 30 minutes to an hour to work but Levitra improves upon that by working in 16 minutes. And Cialis improves upon Levitra by being able to last up to 36 hours.

The Viagra loyalty program is not about building a long-term relationship with their patients as their marketing director says. Instead, this is clearly a scheme by Pfizer to milk what is left of the Viagra brand.

I sure hope that the Pfizer R&D department is working on Viagra 2.0 because if they aren’t, Viagra will continue to lose market share to better, more effective options from Levitra and Cialis. And no loyalty program - no matter how clever - can be expected to solve, in a sustainable way, for the shortcomings of a poor product.

Back to that Viagra frequent-flier program comment from their marketing director … will Mile-High Club members get special perks?

Comments

[Jonathan Greene]

Not sure I fully agree with your post... From what I've read the new drugs are good, but each person is unique and while shorter time to start (Viagra is very similar more like 15-30 min) and a longer window of opportunity are good, it seems it's all about what works for the individual.

I caught a stat (from Pfizer) in the mix today that said Viagra patients are about 80% likely to stay with Viagra after trying the other drugs in the category.

It will be interesting though to see what happens next for Pfizer. We'll see if Viagra 2 (which must be in development now) will just be a Clarinex or a sincere whoppper.

[Jonathan Greene]

it's actually about 80& of Viagra patients trying other drugs and 96% sticking with Viagra.

http://www.pfizer.com/are/investors_releases/2004pr/mn_2004_0122.cfm

[johnmoore (from Brand Autopsy)]

Jonathan ... I respect your opinion, each E.D. drug maker appeals to somewhat different user needs.

From your post, it looks like 80% of Viagra users have tried other E.D. drugs with only 4% of those switching away from Viagra.

THAT'S IMPRESSIVE.

So impressive that if true, I wonder why Viagra is feeling the pressure to implement a "loyalty" program to protect them from the 4% of users that switch after trying other E.D. drugs. A 4% customer defection rate seems minimal considering the competition.

Jonathan ... you posted a link that doesn't link. Please repost a working link. I'm interesting in reading the Pfizer press release where you reference the 4% switching figure.

[Jonathan Greene]

Try this link...

http://tinyurl.com/2msh4

I'm not sure why they decided to do the loyalty program... If you believe the numbers then something else is going on.

The numbers themselves are from Pfizer, so take that for what it is.

The sales this year for Cialis (especially) have been very strong and I am sure they are really trying to cut back on the growth however possible. The pills are also expensive (~$10/per) and are not fully covered by most insurance, so a loyalty program that rewards usage is just good thinking...

I caught yet another stat today (yes I am doing some research not just reading this for pleasure) and found that by lowering price 10%, you get about a 3% increase in sales... http://tinyurl.com/2gxrs

[johnmoore (from Brand Autopsy)]

A moment of clarity has come over me regarding this Viagra loyalty program that rewards usage.

What reward could be better than the reward Viagra already delivers?

[Jonathan Greene]

Exactly!

[Bob G]

How is this Marketing Dysfunction? I think your analysis is dysfunctional.

So what do you do when your product is trumped by another? Do you instantly create an even better Viagra that lasts 48 hours? How many years and billions of dollars will that take?

This may be the only strategy they can do now. I'd love to see your other ideas for the Marketing Department - who are stuck with an inferior product. Don't blame the "messengers"!

Bob

[johnmoore (from Brand Autopsy)]

Bob, thanks for adding your voice to this conversation.

Some of the best 'marketing dollars' a company can spend is to make the product and the product experience better. And given that Viagra's product may not be as remarkable as their competitor's products ... I don't think Viagra should spend marketing dollars to make their commercials better.

Instead, I think they should make their product better.

It is my opinion that the cost of doing business in a rapidly evolving space like prescription drugs and technology is you need to continuously seek ways to improve your product so as not to become obsolete.

[Corbin Mull]

Isn't Viagra being studied as a possible treatment for various ailments and diseases. From pulmonary hypertension to preeclampsia and as preventative heart attack treatment. Formerly a vasodilator, the blue pill is now being touted as a hemodynamics agent.

[Dick Thomas]

What moron hired this marketing director? Those "Viva Viagra" commercials are painful to watch and beyond moronic. I could poop a better set of commericials.
Should I ever meet who is responsible for those stupid fucking commericals I will promptly shove their heads up their asses and kidnap them. Never to be found again so that they can never pollute this world with this garbage again.

[Allan]

Exactly!