Brand medicine: Use and future potential of branding in pharmaceutical markets

Abstract

Successful pharmaceutical companies are rich in intellectual property. Historically, this property has taken the form of patents, and a company's skill in acquiring such assets has been instrumental in driving its share price. But with the huge increase in public interest in and access to hitherto restricted pharmaceutical products and information, it is clear that the industry's approach to marketing must change. Couple this with the increasing elusiveness of breakthrough new products, and it becomes clear that the fundamental business model of the leading companies must change too. Strong brands, which help support a product's market position long after its patent has lapsed — or provide a platform for the OTC arena — can add layers of sustainable value because they ‘connect’ with doctors, patients and consumers alike. Thus careful brand management will play an increasingly important role in the future of value creation in the pharmaceutical industry — much as it does in the majority of industries where the supply of goods and services is unrestricted and consumer choice is paramount.

How different are branding strategies in the pharmaceutical industry and the fast-moving consumer goods sector?

“…8 A strong base of loyal consumers would give additional time to maximise the return on investment. 9 The explanation is relatively straightforward: patent expiry often coincides with peak sales for a product, and therefore, at its simplest, for every month a pharmaceutical brand with annual sales of $1.2bn is maintained, the revenue upside is $100m. A six-month delay is therefore worth over $0.5bn.…”

Exploring the Influences of Internal Branding on Employees' Brand Promise Delivery: Implications for Strengthening Customer–Brand Relationships

“…Blackett and Harrison, 2001;Ryder, 2004;Webster, 2000). It creates an intimate bond with customers based on its value proposition or a brand promise (Barnes, 2003;Muniz and O'Guinn, 2001).…”

Branding of prescription and non-prescription drugs

“…Given today's technology and sciences, when a new molecule discovery is made, which is more effective for a certain treatment, existing brands lose their importance 6 . Weston has suggested that 'super brands' are capable of surviving patent expiration and can achieve "a bond with the consumer at a level transcending mere functional performance" 15 .…”

“…The value is recognised as one of the most vital part of branding, which in itself has three types: functional, expressive and central values. Normally, successful brands have a combination of value types 3,[6][7] .…”