A study research report on marketing mix, product life cycle and SWOT analysis for a iconic pharmaceutical brand, Lipitor.

1. Marketing Mix
Product Life
Cycle (PLC)
SWOT
Analysis
A Case Study of a Pharma Brand:
“Lipitor”

2. Why Lipitor ???
• World’s bestselling medicine.
• Pfizer Inc. was getting ¼th of its total annual revenue from Lipitor
alone for years together.
• Life time sales of this iconic drug is around $131 billion.
• So, its worthy to explore marketing management of this brand.

3. Marketing Mix
 4Ps of marketing mix :
• Product
• Price
• Place
• Promotion
 Additional 3Ps :
• People, Process, Physical environment

4. Marketing Mix : Product
 Introduction: It contains statin class of medication, Atorvastatin as API. It’s Chemical
formula and molecular weight are C33H35FN2O5 and 558.64, respectively.
 Medical Use: Used in following treatments,
• In dyslipidaemia: Lowers the LDL-C ("bad” cholesterol) and triglycerides and increases
HDL-C ("good" cholesterol).
• Cardiovascular diseases: Prevention of heart attack / stroke.
 Mode of Action:
• Statin is a competitive inhibitor of HMG-CoA reductase by which it is controlling the rate-
limiting step in hepatic cholesterol biosynthesis.
• By this also increases LDL uptake by the hepatocytes and decreasing the amount of LDL.
• Reduces triglycerides and slightly increases HDL-cholesterol in blood.

5. Marketing Mix : Product
 Pharmacokinetics / Pharmacodynamics:
• Rapid absorptivity: Tmax = 1- 2 h, Bioavailability = 14%,
Systemic availability = 30%
• Highly protein bound: ≥98%
• Elimination half-life = 14 h, Half-life for systemic activity = 20 - 30 h
• Primary site of action: Liver
 Contraindication: Active liver disease, Pregnancy, Breastfeeding
 Side effects: Arthralgia, Diarrhoea, Dyspepsia, Myalgia, Nausea
 Adverse effects: Diabetes mellitus type 2, Myopathy, Rhabdomyolysis

6. Marketing Mix : Product
 Formulation: It’s atorvastatin calcium tablets available in following
strengths.
• Dosage rage: 10 to 80 mg once daily, orally.
 Packaging: Alu-alu blister pack strips and
HDPE bottles for different strengths.
 Quality:
• Clinical experience of 20 years
• GMP, quality/safety standards of Pfizer

7. Marketing Mix : Price
• Pfizer decides cost of medicine based on: in-depth cost and benefit analysis,
market and risk analysis, costumer interest in a particular medicine, balance
price between competitors or generics and R&D cost for new products.
• Pfizer keeps their products slightly costlier against assurance of high safety
and quality.
• Lipitor, atorvastatin was a 5th statin molecule when introduced in 1996. Pfizer
priced Lipitor little below the other brand-name statins available at that time
for penetration in market. But, kept it above their generic versions available.

8. Marketing Mix : Price
• Lipitor benefited 14 years till patent expiry in June 2011 without competition, but
Pfizer developed strategies to protect and extent sales of Lipitor after patent
expiry too.
– “Pay-for-Delay” Agreement with Ranbaxy Laboratories, first to file generic
manufacture of atorvastatin. (Delayed generic launching to benefit brand price)
– “Authorized Generic” Agreement with Watson Pharmaceuticals. This generic
can compete first to file generic during 180 days marketing exclusivity period of
first to file generic manufacturer. Again saved some of the loss due to generic
launch.
– “Lipitor for you”, a coupon program to provide price discount and reduce cost
to consumer.
– Rebate agreements with health insurance providers to prioritize Lipitor over its
generic.

9. Marketing Mix : Price
Retail price increase: Retail price increase near patent expiration, helps to
maximize benefit from absence of competition and also reduces the impact of
financial loss after generic competition.

10. Marketing Mix : Place
 Pfizer operates worldwide in so many countries. USA, UK, Other European countries,
Australia, India, New Zealand, Brazil, Russia are few of them. So, Lipitor was also placed
worldwide.
 Patents rights of Lipitor may vary based on intellectual property laws in different regions.
 Global sales and trade policies for distributors and wholesalers.
 Website: Wholesale distributors can order products online from Pfizer website.
• Website also provide detailed information of product, availability, packaging sizes etc.
• It facilitates tracking of orders / invoices too.
• There is a dedicated website for Lipitor, which provides detailed information of product
and facilitates patients to locate pharmacy near them in USA.
 Pfizer manages it global supply chain and frequently assess performance of their suppliers.

11. Marketing Mix : Promotion
 For a medicine, there can’t be a direct advertisement to consumer / patient. Promotions of
pharmaceutical products includes medical representatives (MRs), who are providing information of
products to doctors and other professionals in the healthcare industry.
 MRs advertise the product, provide free samples to medical practitioners and ensure supply of
product to retail pharmacy.
 At the time of launching, Lipitor is promoted as a more effective against competitor statins drugs
available and 80 mg strength approval by FDA, gives medical practitioner a safer side to prescribe
lower strengths with high effectiveness.
 After generic launch, Lipitor is promoted with reduced cost to consumer programme named over
time as “Lipitor for You”, “Lipitorchoice” or “Lipitor savings card”. It gives option to consumers to
choose high quality Pfizer product over generic medicine.

12. Marketing Mix : Promotion
 Unlike most medicines, Lipitor brand is promoted by direct-to-consumer
advertising (DTCA) and one of the medicines most promoted to consumer.
• At the time of Zocor (simvastatin) patent expiry before its own patent
expiry, to avoid doctors prescribing cheaper alternative statin. It’s promoted
to consumer with key points: “Currently there is no generic form of Lipitor. If
your Doctor prescribes you a generic, it is not for Lipitor … If Lipitor is
working for you, why switch?”
• There were a radio and newspaper advertisements of Lipitor targeting
consumers including promotion.
• Website: A dedicated website promotes Lipitor.
 Pfizer is one of the big spenders in advertising in the pharmaceutical industry.

13. Marketing Mix : Promotion
 Here spotted, an advertisement that
doesn’t name any product but
highlighting the science behind their
products.

15. SWOT Analysis
HELPFULL HARMFULLINTERNAL
STREGNTHS
 Patent protection and exclusivity to sale
 Reputation of Pfizer quality and safety standards
 Product claims were supported by 500+ clinical trials with more
than 20,000 patients
 Well established manufacturing, supply chain and marketing
systems of Pfizer
 Big marketing / promotion spending for Lipitor
 Trade / Marketing policies of Pfizer
 Lipitor itself as product was a big strength of Pfizer
WEAKNESS
 Lipitor was developed by Warner-Lambert and initially co-
marketed with it, which later overcame by acquisition
 Like any pharmaceutical company, dependency on R&D with no
guarantee of success.
 Efforts to develop companion product, Torcetrapib were failed
in phase III studies
EXTERNAL
OPPURTUNITIES
 Promising drug class, which already included three blockbuster
products with sales of > $1 B
 More effective than other statin drugs in market by the time
 In 2004, NIH revised treatment guideline, recommended lower
target for bad cholesterol–increased no. of consumers.
 New emerging global markets for Lipitor
THREATS
 Patent expiry of Zocor (simvastatin), doctors may prescribe
cheaper generic statin options, overcame with DTCA
 Generic competition after its own patent expiry, overcame with
pay-to-delay, authorized generic, remittent agreements and other
pricing strategies
 New better drug is always a threat for any medicinal product

16. Bibliography/ References
• "Pfizer product promotion page (Lipitor)": https://www.lipitor.com/
• “Atorvastatin”, article from Wikipedia, the free encyclopaedia: https://en.wikipedia.org/wiki/Atorvastatin
• Highlights of prescribing information: LIPITOR® (atorvastatin calcium) Tablets for oral administration, Initial U.S. Approval: 1996.
• Leigh Purvisa and Stephen W. Schondelmeyer, (June-2013), “Rx Price Watch Case Study: Efforts to Reduce the Impact of Generic Competition for
Lipitor”, AARP Public Policy Institute: https://www.aarp.org/content/dam/aarp/ppi/2015/lipitor-final-report-AARP-ppi-health-june-13.pdf
• “Pfizer Marketing Mix”, a page from MBA Skool: https://www.mbaskool.com/marketing-mix/products/16998-pfizer.html
• “Pfizer page for professionals”: https://www.pfizerpro.com/
• “Lipitor Advertisement a Classic Example of Counter-Promotion Marketing”, a page: https://www.cuttingedgeinfo.com/2011/counter-promotion-
marketing/
• Pat Audet, (July-2012), “Pfizer’s 180-Day War for Lipitor”, a page from PM360 https://www.pm360online.com/pfizers-180-day-war-for-lipitor/
• Simon King, (July-2013), “The Best Selling Drugs Since 1996 - Why AbbVie's Humira Is Set To Eclipse Pfizer's Lipitor”, an article from Forbes:
https://www.forbes.com/sites/simonking/2013/07/15/the-best-selling-drugs-since-1996-why-abbvies-humira-is-set-to-eclipse-pfizers-
lipitor/#368c9b1e6a8d
• “Pfizer SWOT analysis”, (Feb-2011), a page from Free SWOT analysis: http://www.freeswotanalysis.com/health-pharmaceutical-swot/187-pfizer-
swot-analysis.html

17. By: Jaydeep D. Chudasama