Lipitor (B)

Published 01 Oct 2006
Reference 5404
Topic Marketing
Industry Pharmaceuticals
Region Global
Summary

With 2005 sales of $12.2 billion, Lipitor was the world's largest pharmaceutical product and, by itself, would have been the 14th largest pharmaceutical company. The (A) case describes the market entry and rise to market leadership of Lipitor. Positioned as a more effective product, Lipitor was the fifth entrant into a well-established category with strongly entrenched competitors and highly satisfied customers. The (B) case analyzes the challenges to Lipitor posed by competitor repositioning, a product safety crisis potentially affecting the entire category, and the planned entry of a new competitor intent on beating Lipitor at its own game.

Teaching objectives

Product positioning starts years before product launch Product positioning involves shaping customer needs, repositioning competitors, and positioning one's own product using customer inference-making The importance of focus and consistency over time in positioning Strategies for pioneers and followers Turning threats (product safety crisis) into opportunities Changing the rules of the game

Keywords
  • RD0906
  • AR0607
  • AR2006
  • HMI
  • Pharmaceutical and Medical Device Sectors