Branding

DOES BRANDING WORK IN PHARMACEUTICAL MARKETING? EXECUTIVE

S U M M A R Y:

Whether it’s Rx, OTC, or Rx destined for OTC makes a difference, according to this roundup of advice from eight leading pharmaceutical marketers. by Julie Laitin

B Julie A. Laitin is president of Julie A. Laitin Enterprises, Inc. She can be reached at 360 Lexington Avenue, New York, NY 10017. Tel. 212 2862424; fax: 212 286-2345.

randing. It’s the buzzword of advertising. The be-all and end-all of consumer marketing. The force that drives the sales that keeps Coke, Nike, and BMW at the top of their markets. But what is branding? Does it work? More to the point, can it work in the complex and closely regulated world of medical marketing? As a member of the Program Committee for the Healthcare Marketing & Communications (HMC) Council, and chairman of a program on branding, I set out to learn the answers to those questions. I approached eight leading healthcare marketers and asked them for their views, looking for a broad perspective on what branding is about, whether it makes sense in

pharmaceutical marketing, and, if so, how to do it most effectively. Of particular interest was exploring some of the limitations that are implicit in medical marketing — limitations imposed by patent expiration, FDA guidelines and the duality of the doctor-patient audience — and asked the participants whether the benefits of branding can justify the cost and increase the return on investment. There was broad agreement on what constitutes successful branding in the healthcare arena. Tylenol and Claritin were cited over and over as the most effective brands, in OTC and ethical products, respectively. But there was a wide divergence of opinion on other issues. Here are some of the most interesting comments that were given.

Matt Giegerich, President of The Quantum Group, defines branding as the combination of thoughts and feelings evoked in the consumer when confronted by a product name or imagery. “Many marketers overlook the emotional component in healthcare branding,” he says. “That’s ironic, because healthcare is a very emotional issue. The key element is insight. Unless you understand how the patient feels about a category, and then show how your product can respond to that feeling, the execution is jargon.” Insight, he adds, is based on research, not unsupported hunches. “Most advertising agencies work backward. They present a range of concepts to consumers and ask for feedback. Consumers rate the concepts and choose one. Then the agency refines it into a final campaign. I call this deductive methodology. “Inductive methodology, on the other hand, consists of starting out without any preconceived notions. You find out what consumers think and want and construct the brand promise from there.” Another common mistake made by marketers is to believe that branding is the result of consistency alone. “People think that by using the same colors, taglines and images, you achieve branding. But that’s nonsense. You can be consistent — but consistently meaningless.” With the right insight, Giegerich says, you can brand anything. Even water. “Look at Evian and Poland Spring. Both brands have become bywords for purity, yet they are essentially the same thing as tap water, which is free.” Painkillers provide the same analogy. “Tylenol has consistently delivered on the insight that, when it comes to OTC medications, there is no more powerful motivator than trust. That’s why the brand continues to dominate the category, despite competition from other drugs with similar performance.”

With pharmaceuticals, the problem is more complex, he explains. “As marketers, we expect to highlight the good and minimize the bad. But full disclosure means that we can’t masquerade the down side of drug therapy.” If the negative features are too grim, then the solution, he suggests, might be to brand the product and market it exclusively to the professional. “Branding and DTC are not the same thing,” Giegerich points out. “Branding is a universal idea, not bound by category or audience. Branding is essential if a product is to stand out among the competition and survive generic substitution.”

“Loyalty to a brand can outweigh price, forcing even the biggest managed care organizations to change their formulary preferences. It can also drive the sale of a two-dollar bottle of water.” -Matt Giegerich, President, The Quantum Group

The issue of timing, he says, is shortsighted. “You can’t judge the future by the past. We’re seeing that the threat of managed care and generic-driven formularies hasn’t materialized fully. That’s because consumers have power. Patients will switch their healthcare plans if they are unable to get the branded medications they want.”

Branding, Giegerich concludes, is a powerful tool that has implications far beyond DTC. “Loyalty to a brand can outweigh price, forcing even the biggest managed care organizations to change their formulary preferences. It can also drive the sale of a two-dollar bottle of water.” Mark Severini, president and CEO of Gramercy Group, disagrees. He sees branding, particularly for prescription drugs, as an elusive goal. “A solid brand is like money in the bank,” he says. “But building a brand, like any good savings plan, requires an investment, both in time and money. Both are equally important, but with pharmaceutical products, you don’t have the luxury of time. You have an average of seven years to market from FDA approval to the loss of patent protection. That’s not enough time to build brand equity.” Severini points to Coke as the paradigm of brands. “Coke has been around for over a hundred years and has spent billions in advertising and promotion dollars to get where it is. Pharmaceuticals don’t have the life expectancy of true brands.” That is why when Coke has a product recall or a misstep like the one with Classic Coke, the whole franchise doesn’t fall apart. Equity that has been “saved up” over the years pays off. Branding — or more specifically, brandbuilding — can work, he says, both for OTC and for ethical drugs that are destined to go OTC. These tend to be the broad-based products — allergy remedies, such as Claritin, for example — where timing is not an issue. In fact, companies planning to take their products OTC will often invest in branding, knowing that the payoff will continue when the drug is available without prescription. For drugs that are not likely to go OTC, there are other problems, according to Severini. The most daunting of these is the

absence of packaging and its bedfellow, shelf space. On average, half the total impressions for all brands are generated at retail through packaging. With Rx products, there are no visuals, such a color or shape. The product itself lacks organoleptics, or an appeal to the senses, such as taste, touch, or smell. These sensory appeals are essential to developing a brand because they help build a brand personality, he adds, pointing out that the sense of touch was critical in building Charmin’s brand character. “Most Rx pharmaceuticals are dispensed in the same bottles that the pharmacy provides,” he says. “They all look the same — no logo, no packaging — and generally they have no taste or smell. There’s nothing to distinguish one from another. Just as important, they are never displayed, but are “hidden” from the consumer behind the pharmacist’s register. Pharmaceutical marketers may incorporate branding elements and techniques in their advertising, but they cannot actually build a brand. Those who are trying to do so are kidding themselves and don’t truly understand the meaning of brand.” For those pharmaceutical products where branding doesn’t pay — and that includes most prescription drugs — Severini recommends a number of marketing techniques that are designed to create a dialogue with the patient. The goal is not just to elicit trial, but to develop patient compliance, resulting in a significant ROI on consumer spending. These techniques — which appeal to the patient’s lifestyle — include Direct Response TV (DRTV), which is really direct marketing; newsletters; videos; value-added coupons; certificates for doctors’ visits and tie-ins with health-oriented organizations. Another approach is the Direct Response TV ad that doesn’t mention the name of the product. Instead, the spot indicates the disease or condition to be treated and the alternatives that the consumer should know

about. Most important, it initiates a dialogue with the consumer which, if done correctly, strengthens over time.

“… Pharmaceutical marketers may incorporate branding elements and techniques in their advertising, but they cannot actually build a brand. Those who are trying to do so are kidding themselves and don’t truly understand the meaning of brand.” -Mark Severini, President/CEO, Gramercy Group

Although this approach has been abandoned by many marketers in favor of the branded DTC, it still allows for creativity, according to Severini. With few FDA requirements to meet, and no nasty side effects to broadcast, the marketer can show the emotion of bonding, add music or imagery and use copy that is free of medical jargon. “DTC is a contradiction in terms,” he sums up. “It is aimed at the consumer, but it isn’t direct. The consumer is often confused or turned off by the very nature of the communication. And the patient can’t make the buying decision anyway.”

Branding transcends DTC, according to Rich Levy, President of Adair-Greene Healthcare Communications. He sees it as an essential technique for reaching both the doctor, through professional advertising, and the patient, through DTC. “A brand is more than a great product,” Levy explains. “It’s an identity. Branding a product allows you to establish a value beyond the product’s utility. It creates a perception of quality in the mind of the buyer, regardless of whether that person is writing the prescription or making the purchase.” The goal of branding, he adds, is to build equity, and thus wealth, for the manufacturer. “The brand is a product’s personality. Unlike a product ad, it can’t be copied. It’s singular and unique.” How marketers actually develop branding strategies is an issue for Steve Barrett, Executive Vice President and COO of Consumer Healthworks, a division of Harrison and Star. According to Barrett, “We often do a poor job of defining what we want our brand to be. Too often, clients provide a litany of one-word adjectives such as personable, caring, responsible, or protective.” The problem with that approach, Barrett says, is that a list of superlatives provides neither substance nor focus. Nor does it offer direction to the creative team. If establishing a clear definition of the brand’s character is the critical first step, committing resources to making that character distinct and universally recognized is another key requirement. “Most people think that great brands are mostly a function of brilliant creative,” he says. “But if you don’t put major media dollars behind it — forget about it. As a brand, you need to be relevant, believable, and perceptive

about your sufferers’ needs. If your message can’t be heard above the cacophony of talking lizards and someone saying ‘McDonalds’ — nothing will stick.” Beyond spending sufficiently to realize a brand’s vision, Barrett cites honesty as another prerequisite for successful brand-

plays in the consumer’s life. It’s characterized by a hard-to-articulate but unmistakable bond. It goes beyond benefits and protects your franchise and reinforces loyalty.” Barrett feels that the success of Claritin, for example, owes much to its crystal clear imagery, conveying the perception of a

Lazur cites Advil’s triumph over Nuprin, a case where two similar painkillers were introduced at the same time, and the current success of Claritin. “Successful branding to patients may also keep a product from being overwhelmed by generics,” Lazur notes. “When

“I call it the personification of a product. A brand is what sticks to the roof of your customer’s brain. It’s memorable. And it’s what differentiates a product in the marketplace … Branding is an exercise in perception. … Positioning says the product is square. Branding says the same thing with flair.” -John J. Nosta, VP/Creative Director, Catalyst Communications

ing. “As marketers, we must manage expectations and deliver what we promise. A brand should never claim to be something it’s not. Nothing undermines the impact of well-produced TV commercial more than promising benefits you can’t deliver. The hallmark of successful brands, says Barrett, is self-restraint. On the other hand, if you’re Prilosec and can stand behind the promise of 24-hour relief, by all means, tell everyone about it.” If branding is struggling to find its way in DTC, Barrett feels, it’s virtually ignored on the professional side. “Marketers assume that consumers need understanding, but doctors don’t. Physicians have emotional hot buttons, too. Marketers who use substantial doses of empathy and understanding — much as they provide in consumer marketing — can enhance their effectiveness to the professional audience,” he says. Positioning and branding, he adds, are two words often used interchangeably. Yet they’re radically different. “Positioning is all about perception — how you want consumers to think about your target. It’s an unemotional, arms-length exercise. “Branding, on the other hand, is all about relationships — the role the brand

haze being lifted. Both doctors and patients perceive the product as more than an allergy remedy. Other brands, claiming more strength, have tried, and failed, to knock Claritin off its pedestal. Barrett sees perception as a way to extend a product, creating a persona for it. Glucophage, a diabetic drug, spends far less on advertising than Claritin. But the ads, which are targeted to a narrow audience, focus on lifestyle changes that the patient must make. The perception conveyed is that Glucophage is a pill, plus everything else that helps you to lead a healthy life. For Michael Lazur, Executive Vice President and Chief Creative Officer Worldwide at Torre Lazur Healthcare Group, branding is more than perception. “We create the perception,” he says. “But this perception must be backed up by the product’s real, demonstrable attributes. The doctor will be influenced by his or her perception of the factors that lead to prescribing or recommending a drug: safety, efficacy and cost. That’s when branding will make the difference.”

the patient asks for a particular drug, it’s hard for the doctor to say ‘no’. Especially if the product is as good as others and has a recognizable brand name.” John J. Nosta, Vice President and Creative Director at Catalyst Communications, has a simple definition of branding: “I call it the personification of a product. A brand is what sticks to the roof of your customer’s brain. It’s memorable. And it’s what differentiates a product in the marketplace.” As Nosta sees it, while marketers seek out market share, brand-makers seek out mind share. The brand ‘signature,’ or personality, is based on sound strategic thinking. Positioning — deciding the way you want the audience to perceive your product — is the first step in successful branding. “Branding is an exercise in perception,” he says. “Positioning says the product is square. Branding says the same thing with flair.” Nosta believes that branding applies equally well to prescription and OTC drugs, but with different strategies. “If it’s an ethical drug, time is a problem. You

have to develop the brand very fast, before the patent runs out. Or be very creative.” The campaign for Fludara, a cancer drug to treat chronic leukemia, is a good example of creative professional branding. The word remission — as in “Remission Accomplished,” a pun on a commonly used phrase — is used in all the medical journal ads. The play on words reminds doctors that in cancer, remission is the prime benefit. Another approach for pharmaceuticals is corporate branding — allowing the company name to drive the brand. This provides an ethical component, which in turn inspires trust on the part of both the physician and the consumer. “Johnson & Johnson is the best example of this,” Nosta explains. “Because of their handling of the Tylenol tampering case, they have a powerful positive image, creating instant equity for any product they launch.” As J&J demonstrates, even on the OTC side, corporate branding can play a role. “Tylenol is one of the most powerfully branded product of all time,” he says. “People don’t say acetaminophen, they say Tylenol. It’s become a household word.” Branding also builds patient and physician advocacy, which can be a powerful weapon in fighting managed care formularies. “Every MCO wants to keep its customers happy,” says Nosta. Rita Sweeney, President and COO, Dorland, Sweeney, Jones, believes that branding means making a promise and keeping it. According to Sweeney, the way to solve the problem of a short life expectancy with pharmaceuticals is to think “afterlife” instead. “The pharmaceutical marketer must plan ahead for when the patent runs out. Ask questions,” she advises. “Will we switch to OTC? If not, can we create line extensions? Or produce our own branded generic?”

Lederle, Teva, and Geneva (a division of Novartis/Ciba) have all done very well with branded generics, she says, beating out “true” generics by being first on the market or least expensive. This helps to keep the brand alive — and the profits rolling in.

Sweeney recommends three elements in branding: communicate the product’s differentiation from its rivals; price it competitively and — for physicians — emphasize its performance with “tons of data.”

Sweeney recommends three elements in branding: communicate the product’s differentiation from its rivals; price it competitively and — for physicians — emphasize its performance with “tons of data.” Branding is key when marketing to physicians, she feels. “If and when you go DTC, you want to launch the product into a friendly environment. By going to the gatekeeper first, you build brand recognition, brand preference, and ultimately brand insistence.”

Like Nosta, Sweeney believes that with prescription drugs, corporate branding is often more effective than product branding. “You can’t come out with a product that isn’t strongly branded. But if the market is small and the budget limited, a campaign that builds on the company’s heritage may be the best way to go.” Branding, she concludes, is an investment. To generate a return on that investment takes money, a commitment to doing it right and strong brand managers who are willing to stick with the product beyond its launch. A strong believer in branding for all healthcare products, Michael Guarini, Managing Director of Ogilvy Healthcare, sees OTC branding as easier than its Rx counterpart, partly because there are fewer restrictions. “The relative lack of restrictions means that in OTC, the message can be fairly consistent for the M.D. and the consumer,” he explains. With prescription drugs, however, the messages are different. For example, a drug for chemotherapyinduced anemia is a case in point. For medical journals, the ads include full information on its application, the patient population it’s intended for, its mode of action, side effects and other issues. For consumer ads, the message is much simpler. The key issue, according to Guarini, is to make the patient comfortable enough to initiate a dialogue with a physician. The patient may be reluctant to take a relatively common problem — such as fatigue — to an oncologist or a surgeon. A visit to the primary care physician, armed with a brand name, is less threatening. Guarini’s point, which echoes those of most of his colleagues in this article, is that branding and DTC are not the same. And while DTC remains a questionable technique in healthcare marketing, branding plays an increasingly important role in the promotion of ethical and OTC products. ■