The Life Cycle of Drug Brands: Concept to Market Share
The Life Cycle of Drug Brands: Concept to Market Share
The match is on. The goal is in sight. Yet the rules of the game are shifting.
For the $60 billion pharmaceutical marketing industry, keeping up with the changing nature of brand marketing requires increasing agility, skill and knowledge.
The problems facing the industry are well-known. Pipelines for major drugs are weak and generics are increasingly holding sway over government policies, while the impact of new legislation such as the Obama administration’s Healthcare Reform Bill and demands for transparency in dealing with key opinion leaders (KOLs) are also being felt. As industry pundits anticipate that advertising budgets will continue to shrink at least until 2011, due to patent expirations, regulatory restrictions on new product approvals and large numbers of patients without health insurance, one thing is increasingly clear: the industry must develop new rules to play the game.
In some quarters, the call for change is already being vocalized. According to IMS Health Consultants, the solution is to reallocate $15 billion in promotional expenditure across the top eight markets. A 2009 report suggested that the industry fails to use new technologies effectively or efficiently in focusing on payers and doctors. Meanwhile, others say the industry should follow the lead of large service companies like Microsoft in developing global drug branding.
What is the solution? According to industry experts, as policy makers and payers become increasingly important, their concerns and mistrust of gloss brand support materials must be addressed. Brand messaging must be consistent—yet tailored to global and local markets. Word-of-mouth, new technology and social media must be better utilized, to gain deeper market penetration. And above all, they say, the industry must build—and pay close attention to—their reputation.
Key insights from marketing industry experts
FirstWord’s compelling new report, The Life Cycle of Drug Brands: Concept to Market Share, offers play-by-play insight into how the rapidly evolving regulatory and legislative environment is impacting the rules of marketing engagement. From the current state-of-play to critical insight into the successes, failures, strengths, weaknesses and dynamics that are now affecting drug product marketing, the report offers key lessons and observations from a changing landscape. Based on extensive interviews, analysis of two questionnaires, research from websites, articles and industry reports, the dossier invites the industry to examine how drug branding is changing—and offers a possible a rule book for the future.
The report investigates drug branding practices to assess:
The report
Key quotes from the report
“Companies are being challenged when you measure the ROI of the sales force. The companies must start marketing like other marketers; you don’t see the ratios of sales force to clients in other industries. At one stage, there were 100,000 prescribers in the (US) and 100,000 representatives, so there was one rep to one doctor. The first rule of medicine is, and should be, do no damage with marketing.” Terry Nugent, Vice President of Marketing, Medical Marketing Service
“Unless there is endorsement that branding is at the heart of activities and culture in the organization, it’s difficult from a global perspective because then there is a lack of support necessary to launch via the affiliates. If they are not launching it in the same way that the global company is, there will be inconsistencies.” Elisabeth Mostofi Nejad-Duernsteiner, Senior Global Product Manager, Boehringer Ingelheim
“The industry generally is very good at corporate branding, but how that supports individual brands’ communications is a different issue. I support the industry when it gives the franchise or product teams space within the corporate way of the individual company.” Tim Mustill, Commercial Director, Fishawack Communications
The match is on. The goal is in sight. Yet the rules of the game are shifting.
For the $60 billion pharmaceutical marketing industry, keeping up with the changing nature of brand marketing requires increasing agility, skill and knowledge.
The problems facing the industry are well-known. Pipelines for major drugs are weak and generics are increasingly holding sway over government policies, while the impact of new legislation such as the Obama administration’s Healthcare Reform Bill and demands for transparency in dealing with key opinion leaders (KOLs) are also being felt. As industry pundits anticipate that advertising budgets will continue to shrink at least until 2011, due to patent expirations, regulatory restrictions on new product approvals and large numbers of patients without health insurance, one thing is increasingly clear: the industry must develop new rules to play the game.
In some quarters, the call for change is already being vocalized. According to IMS Health Consultants, the solution is to reallocate $15 billion in promotional expenditure across the top eight markets. A 2009 report suggested that the industry fails to use new technologies effectively or efficiently in focusing on payers and doctors. Meanwhile, others say the industry should follow the lead of large service companies like Microsoft in developing global drug branding.
What is the solution? According to industry experts, as policy makers and payers become increasingly important, their concerns and mistrust of gloss brand support materials must be addressed. Brand messaging must be consistent—yet tailored to global and local markets. Word-of-mouth, new technology and social media must be better utilized, to gain deeper market penetration. And above all, they say, the industry must build—and pay close attention to—their reputation.
Key insights from marketing industry experts
FirstWord’s compelling new report, The Life Cycle of Drug Brands: Concept to Market Share, offers play-by-play insight into how the rapidly evolving regulatory and legislative environment is impacting the rules of marketing engagement. From the current state-of-play to critical insight into the successes, failures, strengths, weaknesses and dynamics that are now affecting drug product marketing, the report offers key lessons and observations from a changing landscape. Based on extensive interviews, analysis of two questionnaires, research from websites, articles and industry reports, the dossier invites the industry to examine how drug branding is changing—and offers a possible a rule book for the future.
The report investigates drug branding practices to assess:
- Current marketing tactics including co-promotion, globalization and localization strategies, word-of-mouth approaches and direct-to-consumer advertising
- Key devices to engage payers and physicians into the future
The report
- Examines the current marketing landscape, cast against the backdrop of rapidly evolving regulatory, legislative and payer-attitude environments
- Reviews the key strategies needed to overcome current and future issues
- Offers personal insights from six senior managers and directors at major, medium and small agencies
- Overviews the major strengths and weaknesses of an array of current marketing strategies
- Includes a complete review of key performance indicators and new business analytics
Key quotes from the report
“Companies are being challenged when you measure the ROI of the sales force. The companies must start marketing like other marketers; you don’t see the ratios of sales force to clients in other industries. At one stage, there were 100,000 prescribers in the (US) and 100,000 representatives, so there was one rep to one doctor. The first rule of medicine is, and should be, do no damage with marketing.” Terry Nugent, Vice President of Marketing, Medical Marketing Service
“Unless there is endorsement that branding is at the heart of activities and culture in the organization, it’s difficult from a global perspective because then there is a lack of support necessary to launch via the affiliates. If they are not launching it in the same way that the global company is, there will be inconsistencies.” Elisabeth Mostofi Nejad-Duernsteiner, Senior Global Product Manager, Boehringer Ingelheim
“The industry generally is very good at corporate branding, but how that supports individual brands’ communications is a different issue. I support the industry when it gives the franchise or product teams space within the corporate way of the individual company.” Tim Mustill, Commercial Director, Fishawack Communications
SUMMARY
INTRODUCTION
Massive Investment in Drug Branding
Method
DEVELOPMENT OF DRUG BRANDS
Principles of Creating and Developing a Successful Brand
Co-Promotion
Critical Success Factors
Brand Analysis: Market Research
Market Analysis and Segmentation
Globalized and Localized Branding Strategies
Corporate and Franchise Brands
Evidence-Based Marketing
Targeted Therapy Brands
Communicating Pharmaceutical Brands
Word-of-Mouth: a New Paradigm
Investment in Marketing and Advertising
Sales and Marketing Conflicts
Direct-to-Consumer (DTC) Advertising
Alternative Models
Future of Pharmaceutical Brand Development
Customer-Centric Branding
THE LIFE CYCLE AND DRUG BRANDS
Life-Cycle Management Strategies
Sales Force Structures
Managing Brand Dynamics
Targeting Key Opinion Leaders (KOLs)
KOL Relationship Management
KOL Segmentation
Marketing Line Extensions
Indication Expansion Strategies
Extension to Related Indications
Extension to New Formulations
Extension of Usage Conditions
Pediatric and Special Population Extensions
Drug Repositioning Strategies
STRENGTHS AND WEAKNESSES OF DRUG BRANDS
Strengths of Drug Brands
Weaknesses of Drug Brands
REPUTATION OF DRUG BRANDS
Building the Reputation of Drug Brands
Reputation of the Pharmaceutical Industry
Activists
IMPACT OF DRUG BRANDS
Branding Strategies with Greatest Impact
Strategic Approach
Competition in Therapeutic Categories
Alternative Strategies
Selection of Appropriate Media
Online and E-mail Campaigns
Social Media Marketing
Consumerism, Increased Public Scrutiny and Pressure from US Managed Care
Materials for Sales Representatives
Education of Physicians and their Interaction with Pharmaceutical Companies
The Doctor-Patient Encounter
Access to and Time with Physicians
Key Performance Indicators and New Business Analytics
Measuring Impact
Collection and Sale of Prescription Data
CONCLUSIONS
APPENDIX
Senior Managers and Directors Interviewed
Abbreviations
INTRODUCTION
Massive Investment in Drug Branding
Method
DEVELOPMENT OF DRUG BRANDS
Principles of Creating and Developing a Successful Brand
Co-Promotion
Critical Success Factors
Brand Analysis: Market Research
Market Analysis and Segmentation
Globalized and Localized Branding Strategies
Corporate and Franchise Brands
Evidence-Based Marketing
Targeted Therapy Brands
Communicating Pharmaceutical Brands
Word-of-Mouth: a New Paradigm
Investment in Marketing and Advertising
Sales and Marketing Conflicts
Direct-to-Consumer (DTC) Advertising
Alternative Models
Future of Pharmaceutical Brand Development
Customer-Centric Branding
THE LIFE CYCLE AND DRUG BRANDS
Life-Cycle Management Strategies
Sales Force Structures
Managing Brand Dynamics
Targeting Key Opinion Leaders (KOLs)
KOL Relationship Management
KOL Segmentation
Marketing Line Extensions
Indication Expansion Strategies
Extension to Related Indications
Extension to New Formulations
Extension of Usage Conditions
Pediatric and Special Population Extensions
Drug Repositioning Strategies
STRENGTHS AND WEAKNESSES OF DRUG BRANDS
Strengths of Drug Brands
Weaknesses of Drug Brands
REPUTATION OF DRUG BRANDS
Building the Reputation of Drug Brands
Reputation of the Pharmaceutical Industry
Activists
IMPACT OF DRUG BRANDS
Branding Strategies with Greatest Impact
Strategic Approach
Competition in Therapeutic Categories
Alternative Strategies
Selection of Appropriate Media
Online and E-mail Campaigns
Social Media Marketing
Consumerism, Increased Public Scrutiny and Pressure from US Managed Care
Materials for Sales Representatives
Education of Physicians and their Interaction with Pharmaceutical Companies
The Doctor-Patient Encounter
Access to and Time with Physicians
Key Performance Indicators and New Business Analytics
Measuring Impact
Collection and Sale of Prescription Data
CONCLUSIONS
APPENDIX
Senior Managers and Directors Interviewed
Abbreviations
