Building
Mega Brands in the Pharmaceutical Industry
DTC Perspectives Magazine
Article
Brand Building
In order to build
"mega brands" in the pharmaceutical industry equal emphasis must be
placed on gaining awareness and education amongst both the physician and
consumer markets. Included are examples of pharmaceutical companies that have
embraced this opportunity and now have pharmaceutical name brands that are
leaders in their category.
The role of a brand manager
in today’s marketplace is constantly evolving. In response to updated FDA
guidelines, brand managers must now not only focus on the traditional
prescription marketing channels, they must also respond to a new dimension that
has surfaced - DTC (direct-to-consumer) advertising. DTC advertising has
changed the face of pharmaceutical brand name management. The FDA’s 1997
guideline changes have not only been overwhelming to consumers being bombarded
with media messages, they have also opened eyes of manufacturers in the
pharmaceutical world. To build pharmaceutical name brand equity, brand managers
now not only focus on physicians as a critical target audience; they also focus
on consumers. Pharmaceuticals are much more than pills to consumers; they are
life enhancers. Communication is key when marketing pharmaceutical brands to
consumers and physicians. Certain pharmaceutical companies have embraced this
opportunity and have built "mega brands" in the industry.
When the FDA issued new
guidelines on August 17, 1997, the ruling represented a breakthrough for
pharmaceutical companies involving consumers in healthcare. Since that time,
certain blockbuster drugs have become household brand names, one of which is
Claritin.
Brand Building
Brand Building
One
of the best and most-widely recognized media blitzes on behalf of
pharmaceutical companies was produced by Schering-Plough for Claritin. In 1998,
Claritin was the most-advertised drug brand (exhibit 1). Schering spent $182.9
million on targeting consumers, and another $75 million on targeting medical
professionals, yielding $1.7 billion in sales.[2] How does media spending
evolve into sales? Mariola Haggar, pharmaceutical analyst for Deutsche Bank
Securitites, attributes Claritin’s rapid growth to advertising. [3] The “Blue
Skies” advertisements are everywhere. Consumers relate with Joan Lunden and her
seasonal allergies. She is a believable celebrity endorser who appeals to the
target market. Claritin has achieved what all brand marketers strive for –
brand recognition.[4] Consumers not only know that this pill makes their lives
more livable by relieving allergy symptoms, they know to ask for it by brand.
Brand name recognition, faith in the product/proven results, and believable
advertisements stem from superior marketing efforts. Schering is looking long
term, and continues to push their brand name to the limit by constantly backing
advertising dollars to their brand positioning. Claritin brand managers have a
grasp on the identity of their brand, and are able to effectively communicate
with their target audience.
Brand Building
When
initially deciding whether or not a DTC strategy is applicable for an offering,
many market elements should be explored. The market can be expanded when the
new offering is distinct from other products currently existing in the pharmaceutical marketplace,
and it treats needs that have not yet been met or recognized. To integrate a
DTC strategy, all elements of the marketing mix must be addressed, including
public relations. Bristol-Myers Squibb extensively promoted Pravachol with a
DTC program, but did not fully promote the offering to doctors. So when
patients asked doctors for prescriptions for lowering cholesterol, doctors
prescribed Lipitor instead of Pravachol. [5] This was not exactly the result
that BMS was anticipating. As a result, Lipitor has gained incredible share of
mind in the marketplace in a short period of time (exhibit 2). Lipitor,
marketed by Warner-Lambert (a wholly owned subsidiary of Pfizer), surpassed the
$1 billion worldwide sales threshold in just eleven months since its launch in
the United States, making it the first pharmaceutical product ever to achieve
$1 billion in worldwide factory sales in its initial year on the market. [6]
Pfizer has generated great success in testing consumer-marketing messages
during the development phase with physicians by routing feedback through the
sales force. This process builds pharmaceutical brand awareness early on, and
physicians are not surprised by consumer inquiries. [7] Brand recognition is
extremely important in the marketing process, and brand managers must recognize
that a one-time advertising blitz is not going to build long-term brand
recognition. Many times perceptions of consumers have to be changed and
consumers must be inspired to behave differently.
Merck,
facing the expiration of patents on two of four of its most successful pharmaceutical brand name
products in the next two years, catapulted a blockbuster marketing launch for
Vioxx (the COX-2 inhibitor treating arthritis). Sergio C. Traversa, Analyst
with Mehta Partners LLC, states that “Vioxx is building a bridge to bring the
company into good shape beyond the patent expiry period.” [8] Merck launched a
large-scale direct-to-consumer advertising campaign for the COX-2 in 1999. The
Vioxx marketers were the first to run a full-length television spot including
both pharmaceutical brand name
and indication in it. The drug's tagline is “Vioxx. For everyday victories.”
Danielle Halstrom, manager of U.S. human health public affairs at Merck, says
that “the campaign is not about doing unrealistic things like climbing Mount
Everest or running a marathon, the campaign is about doing simple things like
bending, stooping, walking up the stairs, and playing with children and
grandchildren.” [9] Marketers at Merck have not only done a great job with
instituting a believable message, but they have made it consistent in their
television and print ads. According to Beth Miller, director of CME Health,
this continuity is critical in reinforcing image. “The brand with the image can
win”, she says. “Marketers are finding that the image and brand name can make a
difference with consumers.”[10] The Vioxx launch was huge, fast, and effective
– definite ingredients for success (exhibit 3). Analysts predicted that Vioxx
would break the $1 billion sales mark in 2000, making it the fastest growing
arthritis medication in America. At this time, four out of every ten new
prescriptions for COX-2 inhibitors are for Vioxx. [11]. Refills are growing
steadily, indicating that patients are satisfied with results.
Brand Building
For
consumer brand marketing to be effective, consumers must want to have the pharmaceutical brand name
product prescribed, and doctors must also have an understanding of why that
product brand should be prescribed. Appealing to both medical professionals and
consumers are not always easy, especially given that each audience is searching
for different information. Consumers do not necessarily care about the medical
jargon, they just want something that solves their problems and improves their
quality of life. Merck hit a home run with Propecia by consistently presenting
the brand name in advertisements. An integrated approach is used in which
physicians and consumers see the same visuals in ads, however, the wording is
just slightly enough to cater to each audience. A consistent message is
presented, and it works for Propecia.[12]
Brand Building
We
have only just begun to see the effects of DTC brand marketing. By
demonstrating a commitment to brand management, pharmaceutical companies can take advantage of
this new wave of name brand marketing. The brand name is at the center of a
complex movement, and one that has proven to be a challenge to pharmaceutical
companies. Consumers are searching for a complete experience when shopping for
brands, even pharmaceuticals. Through successful brand management, including
focusing on DTC marketing without losing sight of traditional prescription
marketing, pharmaceutical companies can provide a quality experience that will
keep physicians and consumers loyal to their brands.
James
L. Dettore, President & CEO of Brand Institute, a pharmaceutical branding,
biotechnology branding, and consumer branding consultancy firm in Miami.
Suzanne C. Hoppough, Senior Brand Manager, Brand Institute, New York
Aaron Hamilton, Market Research Manager, Brand Institute, Miami
Brand Building
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[1]
Aitken, M and Holt, F, “A Prescription For Direct Drug Marketing,”
www.mckinseyquarterly.com, August 17, 1997
[2]
Middleton, O, “BioCognizance Forum,” Pharmaceutical Advertising, February 12,
1999
[3]
IBID
[4]
IBID
[5]
Aitken, M and Holt, F, “A Prescription For Direct Drug Marketing,”
www.mckinseyquarterly.com, August 17, 1997
[6]
“Parke-Davis Announces Lipitor Sales Surpass $1 Billion In Just Eleven Months
Since Launch,” www.warner-lambert.com/info/press_january_28_98_2.html,
[7]
Aitken, M and Holt, F, “A Prescription For Direct Drug Marketing,”
www.mckinseyquarterly.com, August 17, 1997
[8]
Brown, J, “Vioxx the Victor,” www.medadnews.com, March 2000
[9]
“Image Makes the Difference,” www.medadnews.com, March 2000
[10]
IBID
[11]
Brown, J, “Vioxx the Victor,” www.medadnews.com, March 2000
[12]
“DTC Brand Consistency Should Be Set Pre-Launch,” The Pink Sheet, February 8,
1999
Brand Building
