Emotional Branding in Pharma Industry

Emotional Branding in the Pharmaceutical Industry |

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  As opposed to the FMCG industry, the pharmaceutical industry has not been as efficient in leveraging the power of their brands. This is primarily because drugs have always competed against each other based on functional attributes (clinical and product related features). However with patent expiry, this has become a difficult situation as generics create competition in the market.

Additionally, the switch of drugs from prescription to over-the-counter is making it similar to consumer goods. The author of this study attempted to find out if pharmaceutical drug manufacturers could utilize similar methods used in the FMCG industry to connect with consumers at an emotional level, in order to build in brand loyalty and prevent the switch into branded and generic manufacturers of the same drug. The objectives were to investigate the functional and emotional benefits and values that are important to consumers who purchase hay fever medication.

As drugs switch from prescription-only medicines to being sold over the counter (OTC), consumer power in the healthcare industry is increasing exponentially. Many pharmaceutical companies are slowly realizing that drugs are increasingly becoming like FMCG goods. Higher healthcare costs and the rise in consumer healthcare knowledge have forced the government to promote consumer self-medication in UK.

Several challenges face pharmaceutical brands today. R&D expenses have risen significantly and the success rate of products is not high. Hence it is difficult to constantly rely on new product development to achieve competitive advantage. Also, as patents expire, me too products (generics) are available in the market. Lower priced generic product sales have an advantage, as they are supported by public authorities who are trying to control health spending all over the world. This leads to erosion of sales for branded products, which are...