Pharmaceutical companies used to differentiated their products relying on medical data and facts like efficacy and safety. Lately, the industry changed and the competition intensified. The R&D efforts do not bring break throughs anymore and pipelines are drying. Therefore pharmaceutical companies started to follow branding strategies to differentiate their products and extended the life cycle. What was proven effective in FMCG world is being transferred to pharmaceutical industry. Brand equity is becoming more important 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.