Case Analysis on the Statin Market (Anti-cholesterol Drugs)
Read the case, Crestor (by Tim Calkins), available from the hbsp course packet. Moreover, refers to Ching, Clark, Horstmann and Lim (2016) for additional supporting information.
Ching, A.T., R. Clark, I. Horstmann and H. Lim (2016), “The Effects of Publicity on Demand: The Case of Anti-cholesterol Drugs,” Marketing Science, vol.35(1), pp.158-181. https://pubsonline.informs.org/doi/pdf/10.1287/mksc.2015.0925
In order to plan how to market Crestor, it is important to understand why Lipitor succeeds. The questions below are designed to help you develop a better understanding about the market. You need to form a group of two or three to work on this case analysis. Each group only needs to submit one write-up. Please state all members’ names on the cover page of your write-up.
** Provide justifications for your answers. Refer to the evidence presented in these two articles (or additional research that you conduct) to justify your answers. **
** You may use bullet points to explain your answers. **
Q1. Figure 1 of Ching, Clark, Horstmann and Lim (2016) shows that the statin market has grown very rapidly from 1993 to 2004. What are the main factors that drive the expansion of the statin market? (5 points)
Q2. It turns out that the increase in statin sales is mainly due to Lipitor. Propose a detailed explanation to reconcile why Lipitor primarily attracts new patients, and that patients who have been using other statins are reluctant to switch to Lipitor? (5 points)
