Marketing Analysis - Eli Lilly and Company

Abstract
This paper presents a comprehensive analysis of Eli Lilly and Company, a leading
pharmaceutical firm, using ten key marketing models: SWOT analysis, PESTLE analysis, Five
Forces analysis, customer segmentation, customer journey mapping, AIDA model, Ansoff
Matrix, Brand Equity model, McKinsey 7S Framework, and Value Chain analysis. Through the
application of these models, a thorough evaluation of Eli Lilly's strategic position, competitive
advantage, and marketing strategies is conducted.

The SWOT analysis highlights the company's internal strengths, weaknesses, as well as external
opportunities and threats. The PESTLE analysis delves into the macro-environmental factors
impacting Eli Lilly, while the Five Forces analysis assesses the competitive landscape of the
pharmaceutical industry.

Customer segmentation provides insights into different customer groups, enabling targeted
marketing approaches, while customer journey mapping unveils the customer experience and
touchpoints for optimization. The AIDA model guides the company in effectively capturing
customers' attention, interest, desire, and action through tailored marketing communications.

The Ansoff Matrix offers growth strategies for Eli Lilly, including product development, market
penetration, expansion, and diversification. The Brand Equity model emphasizes the importance
of building a strong brand through awareness, associations, perceived quality, and loyalty.

The McKinsey 7S Framework evaluates the alignment of strategy, structure, systems, shared
values, skills, staff, and style within the organization, ensuring a cohesive and effective
approach. Lastly, the Value Chain analysis identifies critical activities contributing to Eli Lilly's
competitive advantage and customer value proposition.

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 Marketing Analysis - Eli Lilly and Company

Introduction
The pharmaceutical industry plays a critical role in improving global healthcare outcomes, and
companies operating within this sector face unique challenges and opportunities. This paper aims
to provide a comprehensive analysis of Eli Lilly and Company, a prominent player in the
pharmaceutical industry, using various marketing models. By examining factors such as the
company's strategic position, competitive advantage, and marketing strategies, this analysis will
offer valuable insights into Eli Lilly's operations and its ability to navigate the dynamic
pharmaceutical landscape.

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 Marketing Analysis - Eli Lilly and Company

Industry Overview

The pharmaceutical industry is a highly regulated and competitive sector that focuses on the
research, development, production, and distribution of drugs and therapies. It plays a vital role in
improving patient outcomes, extending life expectancy, and addressing public health challenges.
The industry is characterized by significant investments in research and development, stringent
regulatory requirements, and ongoing advancements in medical science and technology.

The pharmaceutical market is influenced by factors such as evolving healthcare policies, patent
expirations, pricing pressures, and shifting consumer preferences. The industry is also witnessing
an increased focus on personalized medicine, innovative therapies, and emerging markets.

About Eli Lilly and Company:

Eli Lilly and Company, founded in 1876, is a global pharmaceutical company headquartered in
Indianapolis, Indiana. The company has a rich history of developing innovative drugs and
therapies that address critical medical conditions such as diabetes, cancer, neuroscience
disorders, and immunological diseases. Eli Lilly is committed to improving patient outcomes
through scientific research, clinical trials, and partnerships with healthcare professionals.

With a diverse product portfolio and a strong focus on research and development, Eli Lilly has
established itself as a trusted name in the pharmaceutical industry. The company operates in
various regions globally, leveraging its expertise and resources to serve patients worldwide. Eli
Lilly's success is attributed to its commitment to scientific excellence, patient-centric approach,
and a culture of innovation.

As the paper progresses, the analysis using marketing models will delve deeper into Eli Lilly's
strategic position, competitive advantage, and marketing strategies, providing valuable insights
into the company's operations and its ability to thrive in the competitive pharmaceutical
landscape.

Eli Lilly's marketing strategies focus on the following areas:

• Product innovation: The company invests heavily in research and development to
develop new and innovative medications. Eli Lilly has a long history of innovation, and
its products have helped to improve the lives of millions of people around the world.
• Value-based pricing: Eli Lilly believes that patients should have access to innovative
medications, regardless of their ability to pay. The company offers a variety of pricing
options to make its products more affordable for patients.

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 Marketing Analysis - Eli Lilly and Company

• Patient education: Eli Lilly provides patients with information about its products and how
to use them safely and effectively. The company also offers support programs to help
patients manage their chronic conditions.
• Healthcare provider education: Eli Lilly provides healthcare providers with information
about its products and how to prescribe them effectively. The company also offers
training programs to help healthcare providers stay up-to-date on the latest medical
research.
• Policy advocacy: Eli Lilly advocates for policies that support patient access to innovative
medications. The company works with policymakers to ensure that patients have access
to the medications they need to live healthy lives.

Eli Lilly's marketing strategies are designed to help the company achieve its business goals of
improving the lives of patients and making a difference in the world.
Here are some of the specific marketing strategies that Eli Lilly uses:
• Advertising: Eli Lilly advertises its products through a variety of channels, including
television, print, and digital. The company's advertising campaigns are designed to raise
awareness of its products and their benefits.
• Public relations: Eli Lilly uses public relations to generate positive media coverage about
its products and the company. The company's public relations efforts are designed to
build trust and credibility with patients, healthcare providers, and policymakers.
• Direct marketing: Eli Lilly uses direct marketing to reach patients and healthcare
providers directly. The company sends direct mail, emails, and other communications to
targeted audiences.
• Salesforce: Eli Lilly has a large salesforce that is responsible for building relationships
with healthcare providers and selling the company's products. The company's salesforce
is trained on the company's products and how to use them effectively.

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 Marketing Analysis - Eli Lilly and Company

SWOT Analysis of Eli Lilly and Company

Strengths
• Strong brand reputation
• Diverse product portfolio
• Research and development capabilities
• Global presence
Weaknesses
• Patent expirations
• Reliance on a few key products
Opportunities:
• Aging population and increasing healthcare spending
• Expansion in emerging markets
Threats:
• Intense competition
• Pricing pressures and healthcare reforms
• Regulatory challenges

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Marketing Analysis - Eli Lilly and Company

PESTEL Analysis

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 Marketing Analysis - Eli Lilly and Company

Five Forces Analysis

Threat of new entrants:
The pharmaceutical industry has high barriers to entry, including extensive regulatory
requirements, high research and development costs, and the need for significant investment in
manufacturing capabilities. However, new entrants can still pose a threat, especially in specific
therapeutic areas or niche markets. Overall, the threat of new entrants in the pharmaceutical
industry is moderate.

Bargaining power of suppliers:

Suppliers in the pharmaceutical industry include raw material suppliers, contract manufacturers,
and providers of specialized equipment. Eli Lilly, being a large pharmaceutical company,
typically has strong bargaining power over its suppliers due to its scale and ability to source from
multiple suppliers. However, in certain cases where there are limited suppliers or unique
ingredients, suppliers may have some leverage. Overall, the bargaining power of suppliers for Eli
Lilly is moderate.

Bargaining power of buyers:

Buyers in the pharmaceutical industry are mainly healthcare providers, distributors, and
government agencies. They have significant bargaining power due to their ability to negotiate
pricing, volume discounts, and reimbursement terms. Additionally, as the industry shifts towards
value-based healthcare, buyers are increasingly focused on cost-effectiveness and outcomes.
However, certain life-saving or innovative drugs may have higher buyer dependence, reducing
their bargaining power. Overall, the bargaining power of buyers for Eli Lilly is moderate to
high.

Threat of substitute products:

In the pharmaceutical industry, substitutes can include alternative treatment methods, generic
drugs, or non-pharmaceutical approaches. While generic drugs can pose a threat to branded
pharmaceuticals, Eli Lilly's strong brand reputation and focus on innovation help mitigate this
risk. However, the emergence of novel therapies or disruptive technologies may create
substitutes that could impact the company's market share. The threat of substitute products for
Eli Lilly is moderate.

Competitive rivalry:
The pharmaceutical industry is highly competitive, with numerous global and local players. Eli
Lilly faces competition from other large pharmaceutical companies, as well as smaller biotech
firms. Intense competition is driven by factors such as the development of new drugs, pricing
strategies, marketing efforts, and the ability to secure market exclusivity. The competitive rivalry
in the pharmaceutical industry is high.

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 Marketing Analysis - Eli Lilly and Company

Power of Buyers

Rivalry among existing firms Power of Suppliers

Low Moderate High

Threat of Substitutes Threat of new entrants

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 Marketing Analysis - Eli Lilly and Company

Customer Segmentation

Customer
Description
Segment

Eli Lilly sells its products worldwide. It adapts its marketing methods
and product emphasis in various countries to meet local customer
needs and comply with local regulations. Its products are available in
Geography
over 120 countries. For example, the company may focus on
educating patients about the benefits of its products in countries
where there is a high level of disease awareness.

Eli Lilly's customers are typically adults who are diagnosed with a
chronic disease or who are at risk for developing a chronic disease.
Demographic The company's products are also used by children and adolescents.
For example, the company may focus on marketing its products to
women who are at risk for developing osteoporosis.

Eli Lilly's customers are typically motivated to improve their health

and wellbeing. They are often willing to pay for high-quality,
Psychographic
innovative medicines. For example, the company may focus on
marketing its products to people who are active and health-conscious.

Eli Lilly's customers typically have a high level of healthcare literacy.

They are often proactive in managing their health and are willing to
Behavioral seek out information about new treatments. For example, the
company may focus on sending promotional emails to customers who
have previously purchased its products.

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 Marketing Analysis - Eli Lilly and Company

It can be broadly categorised as follows:

The end-user of Eli Lilly's products is the patient who needs them. This segment is
End-user further segmented by disease state, such as diabetes, oncology, and cardiovascular
disease.

The payer is the entity that reimburses the patient for the cost of Eli Lilly's
Payer products. This segment is further segmented by type, such as government, private
insurance, and cash pay.

The prescriber is the doctor who decides whether or not to prescribe Eli Lilly's
Prescriber products to their patients. This segment is further segmented by specialty, such as
internal medicine, oncology, and cardiology.

The distributor is the entity that sells Eli Lilly's products to the end-user. This
Distributor segment is further segmented by type, such as wholesalers, retail pharmacies, and
hospitals.

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 Marketing Analysis - Eli Lilly and Company

Customer Journey Mapping

Following are the key steps involved in customer journey mapping
• Awareness: At this stage, potential customers become aware of Eli Lilly's products and services
through various channels, such as healthcare professionals, online research, advertising, or word-
of-mouth. The company may employ targeted marketing campaigns to raise awareness about
specific therapeutic areas and treatment options.

• Research and Evaluation: Once aware, customers engage in research to gather information
about the products offered by Eli Lilly. This can involve exploring the company's website,
reading educational materials, consulting healthcare professionals, and seeking peer reviews. Eli
Lilly can provide comprehensive and easily accessible information to assist customers in their
evaluation process.

• Decision Making: In this stage, customers weigh their options and make a decision regarding the
use of Eli Lilly's products. Factors influencing the decision can include efficacy, safety, side
effects, cost, and convenience. Eli Lilly can support customers during this stage by offering clear
product information, comparative data, and patient testimonials.

• Purchase: After making a decision, customers proceed to purchase Eli Lilly's products. This can
involve obtaining prescriptions from healthcare professionals, ordering through pharmacies, or
using online platforms. The company can ensure seamless availability and distribution of its
products, offering assistance in locating authorized retailers or facilitating online purchases.

• Product Usage: Once customers have purchased Eli Lilly's products, they enter the product
usage stage. Here, the company can provide support and educational resources to help customers
understand the correct dosage, usage instructions, potential side effects, and any necessary
precautions. This can be achieved through patient support programs, medication guides, online
resources, and customer service channels.

• Customer Support and Engagement: Eli Lilly can focus on building long-term relationships
with customers by providing ongoing support and engagement. This can include regular
communication to ensure adherence to medication, addressing customer concerns or inquiries,
and offering additional resources for disease management. Customer support programs, mobile
applications, online forums, and personalized communication channels can be utilized for this
purpose.

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 Marketing Analysis - Eli Lilly and Company

• Feedback and Loyalty: Eli Lilly can actively seek feedback from customers to understand their
experiences, satisfaction levels, and identify areas for improvement. This can be done through
surveys, feedback forms, or social media listening. Based on customer feedback, the company
can make necessary adjustments to enhance the customer experience and foster customer loyalty.

Awareness

Research and Evaluation

Decision
Making:
Purchase
Product Usage
Customer Support
and Engagement

Feedback and Loyalty

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 Marketing Analysis - Eli Lilly and Company

AIDA Model

• Capture attention through targeted advertising, medical conferences, and online

campaigns.
• Use attention-grabbing headlines, compelling visuals, and thought-provoking content.

• Generate and sustain interest by providing detailed and informative content about
products.
• Showcase the value and effectiveness of Eli Lilly's products through engaging materials
and interactive platforms.

• Highlight unique selling points and differentiators of Eli Lilly's products.

• Emphasize the company's commitment to innovation, quality, and safety.
• Provide testimonials, positive outcomes, and address customer concerns.

• Facilitate action by providing clear information on how to obtain products.

• Direct customers to healthcare professionals for prescriptions.
• Offer information on authorized retailers and online purchase options.
• Simplify the purchase process through user-friendly interfaces and support programs.

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 Marketing Analysis - Eli Lilly and Company

Ansoff Matrix
• Market Penetration:
• Increase market share in existing markets with existing products.
• Expand distribution channels and strengthen relationships with healthcare
providers.
• Enhance promotional efforts and customer loyalty programs.
• Product Development:
• Introduce new products or improve existing ones to target existing markets.
• Invest in research and development for innovative drugs and formulations.
• Address unmet medical needs and cater to evolving customer demands.
• Market Development:
• Enter new geographic regions or target new patient segments within existing
therapeutic areas.
• Establish strategic partnerships and conduct market research.
• Understand unique needs and preferences of new markets.
• Diversification:
• Enter new markets with new products or services.
• Explore adjacent therapeutic areas or invest in personalized medicine and
healthcare technology.
• Leverage existing capabilities and expertise while reducing risk.

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Marketing Analysis - Eli Lilly and Company

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 Marketing Analysis - Eli Lilly and Company

Brand Equity Model

Brand Awareness:
• Eli Lilly has established a strong presence in the pharmaceutical industry, with a history
dating back over 140 years. Its longevity and reputation contribute to brand recognition.
• The company employs various marketing channels and campaigns to increase brand
visibility and awareness among healthcare professionals, patients, and the general public.
• Eli Lilly's extensive product portfolio and therapeutic areas of focus, including diabetes,
oncology, neuroscience, and immunology, contribute to its brand awareness.

Brand Associations:
• Eli Lilly has strategically communicated its brand values and attributes to establish
positive brand associations. These values include innovation, scientific excellence,
patient-centricity, and ethical practices.
• The company's marketing efforts emphasize its commitment to advancing medical
science, developing breakthrough treatments, and improving patient outcomes.
• Collaborations with renowned healthcare organizations, partnerships with advocacy
groups, and endorsements from respected industry experts help strengthen positive brand
associations.

Perceived Quality:
• Eli Lilly's emphasis on rigorous research and development, adherence to regulatory
standards, and commitment to patient safety contribute to the perceived quality of its
products.
• The company invests significantly in clinical trials, quality control measures, and
manufacturing processes to ensure consistent product efficacy and safety.
• Positive experiences and testimonials from healthcare professionals and patients further
enhance the perceived quality of Eli Lilly's offerings.

Brand Loyalty:
• Eli Lilly focuses on building strong relationships and trust with customers to foster brand
loyalty.
• The company provides ongoing support and engagement through patient support
programs, educational resources, and disease management tools.
• Excellent customer service, including responsive communication channels and
personalized assistance, helps cultivate loyalty and advocacy among healthcare
professionals and patients.

Regular Assessment:
• Eli Lilly regularly conducts surveys, market research, and feedback analysis to measure
brand equity components.

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 Marketing Analysis - Eli Lilly and Company

• Customer satisfaction surveys and brand perception studies help evaluate the
effectiveness of marketing efforts and identify areas for improvement.
• The company uses data-driven insights to develop targeted strategies and initiatives to
strengthen its brand positioning and enhance customer loyalty.

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Marketing Analysis - Eli Lilly and Company

McKinsey 7S Framework

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 Marketing Analysis - Eli Lilly and Company

Value Chain Analysis

Primary Activities:
• Research and Development:
- Eli Lilly invests significantly in research and development to discover and
develop innovative pharmaceutical products and therapies.
- This activity is crucial for maintaining a competitive edge and addressing unmet
medical needs.

• Manufacturing and Operations:

- Eli Lilly has robust manufacturing facilities and processes to ensure the efficient
production of high-quality pharmaceutical products.
- The company emphasizes adherence to regulatory standards, quality control, and
supply chain management to deliver reliable and safe products to customers.

• Marketing and Sales:

- Eli Lilly's marketing and sales activities focus on promoting its products to
healthcare professionals and patients.
- The company employs various strategies, such as targeted advertising, sales
representatives, and educational programs, to drive product awareness and uptake.

• Distribution and Logistics:

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 Marketing Analysis - Eli Lilly and Company

- Eli Lilly has a well-established distribution network to ensure its products reach
healthcare providers and patients in a timely manner.
- Efficient logistics and supply chain management are critical to meet customer
demand and maintain product availability.

Support Activities:
• Procurement:
- Eli Lilly engages in strategic sourcing and procurement practices to secure raw
materials, APIs (Active Pharmaceutical Ingredients), and other necessary inputs
for its manufacturing processes.
- Collaborative relationships with suppliers help ensure the quality and reliability of
the supply chain.

• Human Resources:
- Eli Lilly values its workforce and invests in attracting, developing, and retaining
top talent.
- The company provides training programs, career development opportunities, and
a supportive work environment to foster employee growth and engagement.

• Technological Development:
- Eli Lilly leverages technology and digital solutions to support its research and
development processes, data analytics, and digital marketing initiatives.
- Continuous technological advancements help enhance operational efficiency and
support innovative approaches in healthcare.

• Infrastructure:
- Eli Lilly has robust infrastructure, including research facilities, manufacturing
plants, distribution centers, and information systems, to support its operations
effectively.
- Investment in state-of-the-art infrastructure ensures the company's ability to
deliver products and services efficiently.

By analyzing these activities and identifying opportunities for improvement, Eli Lilly can
optimize its value chain, enhance operational efficiency, and deliver greater value to customers.
The value chain analysis helps the company identify areas of competitive advantage and areas
where it can differentiate itself from competitors.

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 Marketing Analysis - Eli Lilly and Company

The main competitive advantages can be summarized as below:

• Research and Development:

- Eli Lilly's significant investment in research and development allows the
company to discover and develop innovative pharmaceutical products and
therapies.
- This focus on R&D gives Eli Lilly a competitive edge by enabling the
introduction of new treatments and addressing unmet medical needs, setting it
apart from competitors.
• Manufacturing and Operations:
- Eli Lilly's emphasis on adherence to regulatory standards, quality control, and
efficient supply chain management ensures the production of high-quality
pharmaceutical products.
- This commitment to manufacturing excellence and operational efficiency helps
maintain product reliability and consistency, enhancing the company's
competitive advantage.
• Marketing and Sales:
- Eli Lilly's targeted marketing and sales strategies, including advertising, sales
representatives, and educational programs, contribute to its competitive
advantage.
- By effectively promoting its products to healthcare professionals and patients, Eli
Lilly can increase product awareness, preference, and market share, positioning
itself ahead of competitors.
• Distribution and Logistics:
- Eli Lilly's well-established distribution network and efficient logistics capabilities
play a crucial role in maintaining a competitive advantage.
- By ensuring timely and reliable product delivery, Eli Lilly can meet customer
demand, enhance customer satisfaction, and outperform competitors with more
efficient distribution operations.
• Human Resources:
- Eli Lilly's focus on attracting, developing, and retaining top talent in the
pharmaceutical industry provides a competitive advantage.
- A skilled and engaged workforce contributes to the company's ability to drive
innovation, maintain operational excellence, and deliver superior products and
services.
• Technological Development:
- Eli Lilly's utilization of technology and digital solutions supports its competitive
advantage.

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 Marketing Analysis - Eli Lilly and Company

- By leveraging technological advancements in research, data analytics, and digital

marketing, the company can enhance operational efficiency, gain insights, and
reach customers more effectively than competitors.

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 Marketing Analysis - Eli Lilly and Company

Conclusion
• The analysis of Eli Lilly and Company using 10 marketing models provides
comprehensive insights into the company's strategic position and competitive advantage.
• SWOT analysis reveals the company's strengths, weaknesses, opportunities, and threats,
helping to identify areas of focus for strategic planning.
• PESTLE analysis examines the external factors impacting Eli Lilly, including political,
economic, social, technological, legal, and environmental aspects, enabling the company
to adapt to market changes.
• Five Forces analysis evaluates the competitive forces within the pharmaceutical industry,
guiding Eli Lilly's strategy formulation and market positioning.
• Customer segmentation identifies distinct customer groups, allowing Eli Lilly to tailor its
marketing efforts and develop targeted products and services.
• Customer journey mapping provides a holistic view of the customer experience, helping
Eli Lilly understand touchpoints and improve customer interactions.
• AIDA model outlines the stages of customer engagement - attention, interest, desire, and
action - guiding Eli Lilly's marketing and communication strategies.
• Ansoff Matrix suggests growth strategies for Eli Lilly, including market penetration,
product development, market expansion, and diversification.
• Brand Equity model emphasizes the importance of brand awareness, associations,
perceived quality, and loyalty in establishing a strong brand for Eli Lilly.
• McKinsey 7S Framework evaluates the alignment of strategy, structure, systems, shared
values, skills, staff, and style within Eli Lilly, enhancing organizational effectiveness and
performance.
• Value Chain analysis identifies critical activities in Eli Lilly's operations, such as research
and development, manufacturing, marketing, and distribution, contributing to its
competitive advantage and customer value proposition.

Overall, the analysis of Eli Lilly using these marketing models enables the company to make
informed strategic decisions, capitalize on its strengths, address weaknesses, seize
opportunities, and navigate industry challenges. By leveraging these insights, Eli Lilly can
enhance its market position, deliver value to customers, and sustain its success in the
dynamic pharmaceutical landscape.

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