Pfizer Inc's Lipitor: The Celebrity Endorsement Controversy

Authors: Srinivasa, Adapa; Purkayastha, D.
Source: ICMR Center for Management Research
Year: 2008
Number of pages: 22

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Abstract:

In 2006, Pfizer, Inc, the world's largest pharmaceutical company, was facing a big challenge in sustaining the sales of its cash cow Lipitor. Though the marketing of Lipitor had attracted criticism and many lawsuits, Pfizer's marketing muscle had ensured that Lipitor was the highest selling drug in history with sales of US$12.19 billion in 2005. However, the problem for Lipitor in 2006 was sustaining the high sales of the brand and fueling further growth as it faced intensified generic competition as two of its main competitor drugs went off patent. Among other initiatives, Pfizer banked heavily on its strategic move of getting Robert Jarvik (a medical scientist who is better known as the founder of the artificial heart) as its brand ambassador. Though the campaign featuring Jarvik was considered by many as a successful campaign, it also attracted huge controversy. In addition to giving a comprehensive background of Pfizer's marketing of Lipitor and the various controversies Pfizer faced regarding its marketing of Lipitor, the case discusses in detail the controversy surrounding the celebrity endorsement by Jarvik. In early 2008, Pfizer decided to pull the campaign and put a new campaign in place. The case objectives are: (1) to understand the issues and challenges in sustaining the sales of a cash cow, particularly a prescription drug; (2) to understand the pros and cons of using celebrities to endorse a brand in general, and specifically with regard to a prescription drug; (3) to understand the challenges in ethical marketing and promotional practices for pharmaceutical companies, and explore ways in which pharmaceutical companies could achieve a balance between commercial interests and ethical considerations; and (4) understand the reasons behind the controversy over the Lipitor ad campaign involving Jarvik and the reasons that prompted Pfizer to pull the campaign. This case is meant for MBA / MS students as part of the product management / marketing management curriculum. The teaching note includes the abstract, teaching objectives and target audience, teaching methodology, assignment questions, feedback of case discussion, and suggested readings and references. It does not contain an analysis of the case.