Monday, March 23, 2009

Relationship OR Brand Building: What is your customer strategy?

Last time when you went for shopping, you picked up PearsTM bathing soap and MaggiTM tomato ketch up without much thought or research. Was it because of your perception on the respective brands or because of your relationships with Unilever and Nestle? Of course, this would not be exactly the same when it comes to pharmaceuticals and buying drugs. I agree. Still I think a thought on this from the Indian pharma scene is worth it.
In India we have been focusing (more than needed) only on physician all these years. A company launches a product, decides the promotional plan and promotes it to physician for generating prescriptions. Hardly any focus or thought is given on the patients’ side (this is another issue, which we will ponder later). Companies are busy building relationships with physicians rather than building brand! But one cannot complain on this, as the industry set up was not conducive for a brand building exercise. Asking me why? OK. Here it is… Take an example of an antibiotic drug. If a company is launching a latest cephalosporin (pre 1995 registered) in the market, the company is very sure that there will be at least 5 players in the market in the first month itself and more in the months to follow at different price points, trade offers, campaigns etc. In such a scenario what would bring the business? Is it the company’s relationship with the doctors or the brand image one would build on the product, which is exactly the same as all the other competitors’? The features, benefits, scientific data etc. of the product are all downloaded and talked by all the companies. The English might change but this might not build a brand very often. So in a branded generic market with lot of competitors fighting for the same mind share, relationship marketing is more important and sensible than brand building. I would say it is 90% relationship and 10% brand building.
But times are changing. Think about a company launching an antihypertensive drug (with market exclusivity as it is registered post 1995) in the market. Company is sure that there is no generic competition here and it is only one player in the market promoting the drug. Now the competition is other molecules targeted at the same condition and the differentiator is the key scientific data and benefits of the product over the competitor products. Now here is a scenario, where doctors will not prescribe just on relationships. They need to know the value of the product, the benefits the product will offer to his patients, how the product compares with other products for the same indication etc. In short company needs to build a brand, which pulls the physician to prescribe the product. The equation would change to 90% brand building and 10% relationship.
The MNC’s who have come to India with a new focus, in the current product patent era, are all focusing on building their brands in India rather than just goody relationships with the physicians. Even the Indian companies, who launch exclusive products through licensing, acquisitions etc. should also follow this path to build their excusive assets. As a pharmaceutical marketing professional, I see this market evolution with lot of interest and hope that brings in lot of challenges and value-based ethics to the profession and industry as a whole.
Cheers!!!