The traditional pharmaceutical branding model is flawed strategically, tactically and financially. In this presentation we review the different branding models available to pharma with a focus on the disadvantages of the current pharma Brand as Product model

1. Increasing Physician Perceived Clinical Value:
Therapeutic Franchise or Range Brand Strategy

2. Selling a Product or Promoting an Experience?
or…
Buying a motorcycle
Buying youthful rebellion
Buying the outlaw culture

3. Selling a Product or Promoting an Experience?
or…
Buying insurance
Piece of Mind

4. Selling a Product or Promoting an Experience?
or…
Selling a Pill
Successful Treatment Outcome

5. Let’s Discuss Branding
& Pharma Branding

6. What is a Brand?
• Name, sign, symbol, intended to identify
goods & services of one seller from
another
• Branding is decommodification of
product

7. Brand Elements
• Intangible Attributes
• Product Quality
• Emotional Benefits
• Values
Pharma definition of BRANDING is flawed:
• Culture
“The words, pictures and symbols that
resonate most deeply with the target, and
imprint the positioning in their minds.
• Image
Graphic Representation is the Last Step

8. Building a Brand
• Distinguishing brand from others – value
proposition
• Brand promise (brand identity) must match
brand delivery (brand Image)

9. Branding Options (Pharma Relevant)
Brand Function:
Indicator of Origin
Endorsing Brand
Range Brand
Line Brand
Product Brand
Brand Function:
Product Differentiation

10. Branding Options - Examples
Endorsing Brand
Range Brand
Line Brand
Product Brand
1 product

11. Product Brand
• Assigns a particular name to one, and only one,
product as well as one exclusive positioning.
• The result of this strategy is that each new product
receives its own exclusive brand name
 Procter & Gamble- soap market by Camay, Zest
etc.

12. Product Brand – Pharma Disadvantages
• CPG model - Focus on selling pills
• Not effective for late-entry products
• Clinically insignificant features/benefits & no advantages
• Lifecycle defined by patent
• Negative financial impact:
• Transferring brand equity rare
• Re-build customer base with each launch
• Brand recognition is low (<7%)
• Agency Focus on Awards…

13. Product Brand – Pharma Disadvantages
The cover of this sales aid for Latuda uses the
image of a man that's been torn to pieces and
reassembled to illustrate how schizophrenia
can tear patients apart.
Inside, the image is still fragmented but the
cracks are less prominent, showing symptom
improvement. Study data is reviewed in clean,
open spreads.
“Great visuals with clear logical progression,”
said one judge. “Relevant, clear presentation
of data.”
The agency reported Latuda “is on track to
succeed” in its very competitive category.

14. Product Brand – Pharma Disadvantages
• ~3-5% market share
 $364 million sales forecast
 $12.6 billion category
• 3 promoted products
• Category treatment failure
rate - >50%

15. Product Brand – Pharma Disadvantages
or
Brand Recognition?

16. Product Brand – Pharma Disadvantages
Transfer Brand Equity
Success rate / Cost of transfer

17. Branding Options - Examples
Endorsing Brand
Range Brand
Line Brand
22 products
Product Brand
1 product

18. Line Brand
• This strategy involves the exploitation of
successful concept by extending it but by staying
very close to the product
• For example, L’Oreal hair line products
• The goal is to cross-sell consumers to other
products within the brand

19. Line Brand

20. Line Brand – Pharma Application
mometasone

21. Branding Options - Examples
Endorsing Brand
Range Brand
S,E,C, and A Class
Line Brand
22 products
Product Brand
1 product

22. Range Brand
• A single brand name promoted through a
single promise a range of products belonging
to the same area of competence
• Customer seen as assets to be managed
• Provide customers with multiple ways to
engage with the brand

23. Range Brand Model
The Brand
Brand Promise
Products:
A
B
C
D …N

24. Range Brand Model

25. Range Brand – Pharma Application
• Shifts the focus from selling pills to selling
successful treatment outcomes
• Recognizes that the pill is the cornerstone of
the treatment outcome, but adds clinically
significant value to enhance treatment
success.

26. Range Brand – Pharma Application
Potential Therapeutic Franchises

27. Branding Options - Examples
Endorsing Brand
Individual Products
Range Brand
S,E,C, and A Class
Line Brand
22 products
Product Brand
1 product

28. Endorsing Brand
• Gives approval to a wide range of product, line and
range brands
• Endorsing brand acts a guarantor of the brand
promise
• Individual product brands - have distinctive
personalities, positions, promises, and packaging.
• Endorsement drive sales

29. Endorsing Brand

30. Endorsing Brand: Pharma Example
The “Merck Effect”
1980’s
“We prescribe anything Merck brings out”
Physician quote, 1988

31. Let’s Discuss Branding
& Clinical Value

32. Range Brand and Clinical Value
• Recognizes that the pill is
the cornerstone of the
treatment regimen, but
adds clinically significant
value to enhance
treatment success.
• Products
• Programs
• People

33. Physician Perceived Clinical Value Is Critical
• Physicians prescribe, or
support a company, for the
same reason consumers
buy: VALUE
• They perceive the value of
their choice to be superior
to the value delivered by
other choices.
Value and Revenue Are Linked

34. Physician Perceived Clinical Value Is Critical
Efficacy/Benefit
Price/Risk
Brand A
Attribute 1
Attribute 2
Attribute 3
Attribute 4
Attribute 1
Attribute 2
Attribute 3
Attribute 4
People
Attribute 1
Attribute 2
Attribute 3
Attribute 4
Programs
Attribute 1
Attribute 2
Attribute 3
Attribute 4
Product
Value
Brand B
Brand C
Clinical Value
Brand D
Brand E
Brand F
Company
Value
Clinical Value Criteria
Brand B

35. Hope You Found This Interesting