Pharmaceutical companies used to rely on medical data (mainly efficacy and safety) to differentiate their products. Lately, the industry has changed, and the competition has intensified. The R&D efforts do not bring breakthroughs anymore and pipelines are drying. Therefore pharmaceutical companies started to follow branding strategies to differentiate their products and extend the life cycle. What was proven effective in the FMCG world is being transferred to the pharmaceutical industry. Brand equity is becoming more critical than ever before.
What is branding?
According to American Marketing Association, a brand is a name, term, symbol, design or a combination of them intended to identify the goods and services of one seller or a group of sellers and to differentiate from those of competition.
The importance of branding:
more drugs are being sold over the counter (OTC), competition of generic drugs, alternative and complementary treatments.