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Eli Liily

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They failed to market the new product right, the price was set too low: on realizing the mistake they set out to increase the price quickly more than 30% in two years in US. However, this action wasn't possible in Europe's price controlled countries; clearly, the perceived value and future potential of the product had not been recognized or properly communicated prior to launch.

The global market for Insulin hasn't been extensively explored; looking back in history, Lilly should have done a much better job in promoting the new product than they did. And In order to expand the market, Lilly shouldn't just concentrate in North-American market; instead they should have gone for a global vision of marketing strategy.

Other mistakes on the product development efforts was that the market research they did wasn’t not very extended; this was a because they thought they didn’t need it because of their market share and brand positioning Lilly had.

In my personal opinion I think that they should emphasize more on the research...

Ely Lilly originally pioneered the diabetes care market. It had some prosperous years, but eventually failed.

In 1995, Novo, a major competitor, dominated the European market, and was building a new plant in the US, in order to produce insulin cartridges for its pen. Simultaneously, Lilly was working on its own pen, seeking to reverse its decline.

The basis of competition evolves from functionality, to reliability, to convenience, and then price.

The shift from functionality to reliability, results from product innovation overshooting market need; product performance progresses faster than the market is able to absorb. Hence, markets become

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