Branding Indian pharma

As more MNCs buy into the Indian pharma market, home grown companies will need
to look at strategies to protect their share of the market and mind share of their
customers/ patients. In most cases, products of domestic companies do match up
those of MNCs in terms of quality and benefits, but when it comes to image and
branding, the latter are in a league of their own. This image has not been created
overnight. It is the result of decades of careful corporate branding exercises, carried
over to each product. Some Indian companies have assiduously built up a strong
equity base among the medical community, but this is not enough when it comes to
non-prescription ie. over the counter (OTC) products. Here, the patient can self-
medicate and substitute depending on his preferred price point as well as his
perceived image of the company. And this is where domestic companies could lose
out, if they do not work fast now. Our cover story analyses how Indian companies
are slowly increasing their spend on building brands and playing by the new rules of
the game.

The OTC market is where the action is going to be, and with that, the importance of
chemists/ pharmacists is also increasing. Pharma companies who do not heed
studies like the COMPASS survey ( also in this issue) of Indian retailers, have only
themselves to blame.

Given that analysts are predicting that the next 18 months

could see at least two more Indian pharma companies taken
over by MNCs, it is fair to say that the contours of the Indian
pharma industry are being re-drawn. What does this mean for
the Indian patient? Our Debate section features opinions
broadly reflecting the different reactions to Abbott Labs'
acquisition of Piramal Healthcare's formulation business. While
one school of thought believes this will not result in pricier
medication, another is equally convinced that Indian patients
will soon find key medicines out of reach. The jury is still out on
this issue, and we will have to hope that Indian companies will
use these opportunities wisely. Promoters of the Piramal Group
have already demonstrated this, with their plan to reward
employees with a special bonus as well as buy the assets of
BioSyntech, a bankrupt Canadian medical device firm in which
the Group already owns 17 percent. Both moves contribute to
the brand image of Piramal Group as an employee-friendly
company as well as a savvy global player

Branding is positioning...

One of the chapter headings in an interesting book called Forensic Marketing is

‘Interrogate a brand till it confesses its strengths’! Should it not spur us to think,
asks U Narayanadas

Better than Shakespeare?

George Bernard Shaw captioned Caesar and Cleopatra’s preface with the poser:
Better than Shakespeare? Shaw and Shakespeare may appear incongruous in an
article on branding but consider this: poets and artists, playwrights and politicians all
vie to have the public interested in their work. To achieve this, firstly their work has
to have intrinsic merit and secondly it should have distinguishing features.

Bernard Shaw’s prefaces written in powerful prose are as popular as his plays. Shaw
did not mean any disrespect to the Bard of Avon as the first sentence of his preface
clarifies: “I shall be remembered as long as Shakespeare and Aristophanes or shall
be forgotten a clown down the turn of the century.”

Bernard Shaw had merely positioned his play as different from Shakespeare’s. There
is a popular criticism that Shakespeare portrayed his male characters as weak-kneed
and his plays had only heroines, no heroes. In contrast, Shaw’s delineation of Caesar
was sharper and more masculine. Who would read Shaw’s play if it were to be in the
same mould as Shakespeare’s and on the same subject?

Mona Lisa a break from tradition

Some art critics believe that Leonardo da Vinci’s Mona Lisa became as popular as it
did because the ‘subject’ was a ‘departure’ from tradition. Divinity or nobility were
subjects of art till then. da Vinci introduced a common housewife as his subject in
Mona Lisa (She was the wife of a poor nobleman who commissioned the painting but
could not pay da Vinci for it).

Positioning and political content

During the election 2004, Indian media was agog about political parties marketing
their icons and philosophies as brands. The new age of marketing infected the media
into branding (pun intended) political parties but political parties have all along been
indulging in it explicitly or implicitly.

From Indira Gandhi’s Garibi Hatao to the BJP’s (in)famous India Shining, all such
slogans have been positioning statements. India Shining was a case in point where a
political party’s positioning statement did not find favour with its target audience and
the brand was rejected. And in the US, presidential election campaigns are virtually
conducted by Madison Avenue.

The concept of positioning and popular perceptions

The concept of positioning is closely inter-related with market segmentation, target

marketing, product differentiation, consumer benefit and brand image. Brand image
is what the consumer perceives of the attributes of a brand vis-a-vis brand identity -
what the marketer intends to portray.

Chloromycetin is a good example of consumer perception as it is often confused with

its generic content chloramphenical. Or the brand name Tossex, which is not a sex
stimulant.

The expression Ivy League is often misperceived in India as standing for scholastic
excellence akin to Harvard or Oxford. The facts are different: eight universities in the
US north-east joined in a league to play annual sports tournaments. As the
universities, which formed the league, have green ivy on their walls the tournaments
are called Ivy League tournaments.

There are many definitions of positioning in marketing literature but the most apt
seems to be the one given by Beckman, Kurtz and Boone in Foundations of
Marketing: ‘Product positioning refers to the consumer’s perception of a product’s
attributes, use, quality and advantages and disadvantages in relation to competing
brands’. The operative part of this definition lays stress on the consumer’s perception
of a brand’s attributes.

If you are sure, go for the enemy’s jugular...

The note on H2 receptor antagonists in the British National Formulary mentions that
cimetidine, ranitidine and famotidine have similar pharmacological and safety
profiles. Cimetidine (Tagamet) the first to be introduced was a real chart buster and
obviated the necessity for surgery for peptic ulcers by almost 90 per cent.

As the first to be introduced, Cimetidine had undergone post marketing surveillance

by the time ranitidine made its appearance. For the introduction of ranitidine
(Zantac), Glaxo needed a platform to overcome entry barriers and challenge the
incumbent.

Side effects - especially its binding androgen receptors - observed with ’long term
use of cimetidine in high doses’ (Goodman and Gilman qualifies its warning) came in
handy to ‘knock its block off’, as the Americans would say in boxing parlance. Glaxo
seized the opportunity and positioned Zantac as an anti peptic-ulcerant with a better
safety profile.

The rest, as they say, is history! Tagamet lost 50 per cent of its market share in the
year Zantac was launched. Zantac usurped Tagamet’s Guinness Book slot and the
entire top brass including the Chairman of SKF the company that launched the
wonder drug (that probably rendered many surgeons jobless), lost their jobs.

...Or choose to be a big fish in a small pond

In India when Glaxo made a foray into the ‘vitamin B complex with C’ segment, the
company positioned Cobadex as a ‘co-prescription B complex’. The suggestion
inherent in the brand name seems to be the obvious explanation. (Interestingly,
Nancy Powers’ pocket medical dictionary includes Cobadex as a steroid cream in its
list of proprietary medicines marketed in Europe).

But a more logical marketing explanation would be the company’s intention to piggy
ride with the antibiotic market, which accounted for 20 per cent of the pharma
market (then).

The company had to contend with a very strong number one in Becosules, followed
by Surbex-T at number two, Becozyme C Forte, Beplex Forte and Stresscaps et al
grouped together at a lower level.
Glaxo apparently sacrificed myriad indications (in which a ‘B complex with C’ could
be prescribed) to be exclusively remembered as a co-prescription B complex. Pfizer
launched an epic ’fight-back’, but was forced to make a course shift grouping
Becosules and Terramycin together in all its subsequent promotions, a subtle
acknowledgement of Glaxo’s positioning of Cobadex.

Glaxo’s aggressive entry however could not dislodge Becosules from its number one
perch but achieved the company’s secondary objective of making the brand a big fish
in a small pond. Marketing battles between the two - which may be called the Indian
pharma equivalent of the famous Cola wars - expanded the market with Cobadex
eventually settling at number two.

Start a new category

Jack Trout and Al Ries recommend in their Twenty-two Immutable Laws of

Marketing, starting a new category as the best way to launch a new product
successfully. If it is not possible to start a new category, they say, start at least a
new sub-category.

The advent of Schedule V in the eighties brought about changes vitamin formulae.
Zinc became a cameo as companies made a virtue of what they were allowed to
include to compensate for trimming down vitamins. Similarly anti-oxidants was a
successful attempt at sub-categorisation as multi-vitamin mineral supplements
always had the few ingredients seen in anti-oxidants, but biotin and selenium, which
were not considered important earlier, were assigned cameo roles in the new (sub)
category.

The proof of the pudding...

The objective of any positioning is to gain the elusive perceptual position in the
consumer’s mind, often described as the black box.

The success of the strategy depends on the marketer’s ability to communicate the
concept to the consumer and win instant recall. One of the chapter headings in an
interesting book called Forensic Marketing is ‘Interrogate a brand till it confesses its
strengths’!

Should it not spur us to think? Taglines and mnemonics should emerge from a
thorough audit of the strengths of a brand vis-a-vis competition.

The writer is a Hyderabad based practising manager and marketing consultant.

Email: unarayanadas@yahoo.com
Branding in pharma

A brand is something that exists inside the consumer mind; it is a

physical product that is combined with symbols, images and feelings to
produce an idea which is more than the physical product itself, says
Uday Arur

THERE is a big churn taking place in the world of pharma marketing in

India. With the new patent regime just over the horizon, companies
are taking different routes to equip themselves for the post-2005 scenario. Some of
them are entering into emerging categories, such as lifestyle diseases to build up a
future-proof portfolio, while others are shooting from the hip with a barrage of
products to be present in every possible category before P-Day hits!

In this high voltage scenario, how important is Brand Management as a strategy? A

lot has been written and discussed in these columns as well as other forums as to
why Brand Management is an imperative in the current pharma environment. The
challenge is how.

Very little has been written on building Pharma brands (statements open to
correction, in case readers think differently). One of the few books written on the
subject - Brand Medicine authored by a director of the well-known brand rating
company Interbrand, talks predominantly about the importance of brand building in
the context of pharma products migrating to the OTC channel. Examples of brand
building cited are relevant to the Western context, but very little to the Indian one.

So, how does pharma differ from FMCG brand building in the Indian
context?

What’s the difference?

Let us look at some of the concepts of consumer brand management and assess how
far they are relevant to pharma brand management. According to the 4th law in the
book, The 22 Immutable Laws of Marketing, by Al Ries and Jack Trout, ‘Marketing is
not a battle of products; it’s a battle of perceptions’.

According to the authors, ‘‘there is no objective reality, there are no facts, there are
no best products, all that exists in the world of marketing are perceptions in the
minds of the customers or prospects’’.

In other words a brand is something that exists inside the consumer mind; it is a
physical product that is combined with symbols, images and feelings to produce an
idea which is more than the physical product itself. Readers will note that this is a
situation which is equally true to our pharma situation.

This process of producing an idea which is more than the physical product itself, is
the process of creating brand value, which as Figure 1 shows, comprises six factors:
Personality, Values, User-Imagery, Usage, Relationships and Top of Mind. Readers
might note that except for Personality - which may be a tad difficult to build (as we
shall see later), the others are elements as equally applicable to building pharma
brands as they are for consumer brands. The emphasis and the mechanics of
execution may however differ.

Let us examine each of these in detail:

Personality: In this exercise, the marketer attempts to assess what kind of human
qualities the brand possesses in the minds of the brand user. There are several ways
of assessing the brand personality; one way is to ask them questions that if the
brand were a human being,

• Would it be male or female?

• How old would he/ she be?
• What newspaper would he/ she read...?

And so on and so forth. The attempt here is by the

marketer to understand what kind of person users
think of, when the brand is mentioned.

This knowledge and understanding gained is then

used to enhance the value proposition for the brand.
The personality of a pharma brand to a large part is
influenced by the nature and quality of the medical
representative’s interaction with the doctor. In a
consumer promotion situation however, the buyer’s
Figure 1: The Brand Value Sextet
perception of the brand is shaped largely by
advertising.

Therefore, knowledge of how past advertising has shaped the brand’s human
qualities in the minds of users, is of great value to consumer advertising. However,
the usefulness of the personality building exercise in pharma promotion is debatable.

Values: The brand also says something about the manufacturer’s values. Just as
Mercedes stands for well-engineered products, likewise the efficacy and safety of a
pharma brand would invest these very qualities onto the brand - and therefore the
manufacturer. However, given the current commoditised nature of pharma brands
and the consequent brand parities, the values differentiator could be more the
nature of the manufacturers strategic thrust, viz; his image as being an original
research company, reverse engineering expert, presence in number of foreign
market, a me-too manufacturer etc. Hence, in a pharma situation, the company
would have to rely substantially on the kind of the image it has built for itself over
the years, and what new strategic thrust it has adopted to meet the challenges of
the times.

User Imagery: This element seeks to find out what the usage of the brand makes
the prescriber feel. Frequently used by the MR by citing peer usage to boost
prescriber self esteem.

Usage: Since the promotion is not to end-user, the prescriber makes the decision on
his behalf. Therefore, usage convenience is not a directly experienced brand value.
Hence, this element may not be as important as in consumer promotion.
Relationship: As in consumer promotion, relationship with the brand is a function of
the various types of efforts made by the company to build bonds with the user -
which in the pharma case is the prescriber. Pharma companies off late are also
making attempts at reaching out to the patient himself by making personal visits to
them to ensure adherence to drug regimen. In both instances, the principal strategy
driver is the MR, and next in importance come the nature of the company’s strategic
initiatives, and their effective implementation by the MR. These factors would
determine the nature of the prescribers as well as the patient’s relationship with the
brand.

Top of the mind: In this case again, the MR’s own initiatives, the effectiveness of
the company’s sales promotional material and its effective use by him, would
determine how successfully the objective is achieved.

Brand establishment priorities

It would be evident then, that to effectively establish pharma brands, companies

would have to give priority to the following areas:

• Comprehensive training in strategic and tactical sales and behavioural skills to

the sales force
• Devising creative strategic (not only tactical) strategies
• Producing imaginative communication aids to translate the strategy into
practice.

The question is - are they? Point to ponder!

Table 1: Difference between pharma and consumer promotion

Pharma promotion
Medical Representative helps doctor make
prescribing decisions
It is measurable and accountable
More loyalty because of direct engagement
Talks to well defined, appropriate segments.
Engages single doctor in separate individual
dialogue
Doctor involved in the marketing process
because of interactive, collaborative activity
Medical representative controls the style and
force of message
Promotion is not to end user
Consumer promotion
No personal selling involved. Buying decisions
are influenced by the advertising in print,
electronic and other media
Advertising is not as directly measurable
Advertising has to do all the hard work
Target audience is dispersed and the reach is not
as focused
Engages a mass audience
Buyer-Seler collaborative activity is minimal
No control possible
Promotion to end user

The writer is a communications consultant.e-mail: udayarur@columnist.com

Building Big Pharma Brands

http://www.expresspharmaonline.com/20100715/market01.shtml

With an eye to become more visible to their customers, Indian pharma companies
realise that they need to get into a major branding exercise, especially as attention
shifts to the over the counter (OTC) sector. Usha Sharma analyses ...

The Indian pharmaceutical industry has emerged as one of the most attractive
markets globally as its growth continues to outperform the growth of the global
industry and particularly markets such as US and in the EU. According to the Ministry
of Commerce, domestic investment in the pharma sector is estimated at $ 6.31
billion.

With intense competition, it is becoming more important to build an emotional

bonding and a relationship of trust and comfort with the customer to ensure loyalty
and hence consistent sales. Hence there is a need to differentiate a product from
competition and establish a positive image of the drug and the company in the eyes
of the customer.

In fact, a distinct brand image is the best security a company is likely to have
against competition. Therefore companies are spending more and money with an
extensive effort on brand building. This is seen mostly in pharma companies which
have over-the-counter (OTC) products like Dabur, Paras, P&G, J&J, GSK, Pfizer,
Emami , Piramal, Ranbaxy and Heinz are some of the leading players in the Indian
OTC segment. Overall, well renowned brands like Revital (Ranbaxy), Smyle, Glycodin
(Alembic), Crocin (GSK), Moov, Ring Guard, Itch Guard, D’Cold, Krack (Paras
Pharma), Lactocalamine, Supractive, i-pill (Piramal), Digene (Abbott), Gelusil
(Pfizer), Sugar free (Zydus),etc. have succeeded in establishing customer loyalty and
positive brand images. The importance of branding in the pharma industry is also
evident from the several brand acquisitions in the recent years. The fact that 25
percent of Pfizer's revenues come from one brand (Lipitor) has often been cited as
the importance of branding.

“While no amount of marketing can yield profits for a failed product,”explains Hitesh
Gajaria, Executive Director – KPMG, “it is also true that attractive graphics and
design, good packaging play a role in prescription medication, as there are a large
number of products that the physician is exposed to on a daily basis. The sustainable
growth is driven by strong socio-economic drivers luring several domestic
companies, many of which have been predominantly export market-focused, to
expand their presence and build a stronger foothold in the Indian market. “

Gajaria emphasises on thrust of the pharma OTC branding in the current scenario, “A
brand can be termed successful in the pharma sector if doctors are motivated to
prescribe it. It may be important to link a desired emotion with the brand because it
is often observed that the best way to grab attention is by evoking an emotional
response. Most importantly, it is vital that the product should be efficacious and able
to deliver.”
Shakti Prasad Chakraborty, President of India Region Formulation Lupin shares
Lupin's branding strategy and highlights the product relevance in the market,
“Lupin’s flagship brand 'Suprax' in the US or 'Tonact' in India will still resonate with
paediatricians and patients alike, so it is important to us to form this association.
Branding pharma products is much like any other brand-building initiative. The goal
is to make your own brand distinguishable against products that are becoming
increasingly similar in the decision-maker’s mind. However, there are some
peculiarities to branding in the pharma industry.”

Building brand equity

"A decade ago the The differentiating factor is that pharma companies deal
product brand used to with an intermediary, ie the doctor, controlling what
be the strongest point
of recall but we have
consumers might or might not end up purchasing . So
observed a gradual most branding activities in the Industry do take that
move towards into account and most marketing and communication
association with the
corporate brand name.
programmes are focused on building brand equity with
Pharma companies and its products the doctor, reasons Chakraborty. “If you are marketing
are not consumer goods and the the fifth or the 15th drug in a therapy class, the task at
demand for most of them is need-
based so the emphasis on both the
hand becomes all the more complex and difficult to
corporate and product (identity) is make sure doctors remember your brand,” he says.
that much stronger"

According to Chakraborty, “Doctors and patients both

- Shakti Prasad Chakraborty
President of India Region
tend to recall of the corporate brand and then drug
Formulation Lupin name. A decade ago the product brand used to be the
strongest point of recall but we have observed a
"OTC products are
comparatively cheap as gradual move towards association with the corporate
compared to ethical brand name. Pharma companies and its products are
branded products. In not consumer goods and the demand for most of them
today's scenario, the
whole world is looking is need-based so the emphasis on both the corporate
for reduction of and product (identity) is that much stronger. Moreover
medicine cost and all in some markets globally, beyond patent expiry, drugs
big Indian pharma companies"
compete on price alone. Pharmacists can substitute
- Vinod Chitalia
cheaper generic products for name brands on a
Chief Executive Officer patient's script (unless otherwise stipulated by the
Lifeline Industries prescribing doctor). Yet even if the product dies, the
"Branding exercises for brand still lives. It is not possible to roll the brand over
pharma products in to a new product unless it is a reformulation, but you
India do not have any can keep certain elements of previous brands.”
specified guidelines.
there are regulations
for marketing. Vinod Chitalia, Chief Executive Officer Lifeline Industries
Currently, there is no
specific law which remarks positively on OTC branding through an
prohibits the advertising of explanation of successful companies name, “OTC
products are comparatively cheap as compared to
prescription drugs although industry
practice is not to advertise
prescription-only drugs" ethical branded products. In today's scenario, the whole
world is looking for reduction of medicine cost and all
- Hitesh Gajaria big Indian pharma companies like Ranbaxy, Cipla,
Executive Director Wockhardt, etc,have developed separate OTC generic
KPMG divisions. MNC’s like Novartis, Abbott are also trying to

enter the OTC generic market in a big way considering the percentage sale of OTC in
the long run.”
S C Sehgal, Chairman of the Ozone Group of company says, “OTC branding helps the
company earn greater revenue and also there is a large customer base in today’s
market. OTC brands are well known by the consumers and people do not have to
have a doctor’s prescription for these medicines. They have been delivering high on
consumers requirements and therefore have an impression in the minds of the
consumer. People prefer more usage of these products and thereby helping the
company to earn more revenues.”

Corporate expansion is a strategic decision and should be related to a firm's

objectives and mission. Various critical factors that need to be considered are market
risk, returns from a new set-up, opportunity cost, resource availability, dominant
market, etc. Hence, marketing strategy that should be considered during an
expansion plan should be able to relate to the new target customer base and the
market. This strategy can be devised only after a thorough analysis of the new
market and customer base. Hence, while devising such a strategy, it is important to
consider several factors such as demand for the product, brand image of the
company, spending capacity of the new market customer base, etc.

Smitesh Shah, Chairman and Managing Director, Calyx Chemicals and

Pharmaceuticals Ltd, gives details on branding expenditure saying, “The brand spend
always differs from company to company and its products reach, however most
companies in the growth phase would need to budget for a minimum of 25-30
percent of sales as branding cost. There’s a huge opportunity as the market is
substantially under-penetrated for OTC products. For a country of our size, a $ 1.9
billion market is tiny to say the least. It would need to be a mix of all as finally each
one of these affects the corporate identity in its own unique way. However, from a
domestic market perspective, the critical differentiation continues to be branding and
marketing skill sets.”

He further emphasises that besides investing in creation of global assets and

brands ; investments in fixed assets expenditure like quality control and SHE
(Safety, Health & Environment) are crucial and are the need of the hour.

“The corporate and product branding helps the company to sustain its market value
by creating the brand in the doctors’ clinic and thereby increasing its visibility to the
patient visiting the doctor and also to the doctor for prescribing the medicine. The
pharma companies should opt for product branding as it pays you more as it leaves a
mark in the mind of the consumer whenever he/ she visit the doctor. ,” adds Sehgal.

Gajaria says, “Sales of OTC medicines in India are forecast to increase from $ 2.14
billion in 2008 to $ 5.05 billion in 2014, representing a CAGR of 17.69 percent.
According to AESGP data, leading OTC categories include vitamins and minerals,
cough and cold, gastrointestinal medications, analgesics, dermatologicals and herbal
medicines. However, many prescription (Rx) drugs can be purchased without
prescription, which has meant that OTC switching is not actively promoted. Sales of
vitamins and minerals generated 24.2 percent of the Indian OTC pharma market's
value. Product branding is an effective technique of increasing the sales of a
particular product. Effective product branding can establish the presence of the
product in the market and create a positive image of its use and efficacy without any
necessary holding to the company name.”
He further elaborates with an example that, “i- pill has very strong brand strength.
Although the product was previously owned by Cipla and now belongs to Piramal
Healthcare, it is still able to generate sales and has a hold on the emergency
contraceptive market.”

Company Measures taken

New entry in India- specialises in medications for

Allergen Inc
infectious diseases

In 2009, raised its stake in Novartis India . from

Novartis
50.9percent to 76.4 percent

In 2009, increased stake in Pfizer India, from 41.2

Pfizer
percent to ~71 percent

Mylan Acquired Matrix Laboratories to strengthen generic

Laboratories presence

Daiichi Sankyo Acquired Ranbaxy to strengthen generic presence

Sanofi Pasteur Acquired Shantha Biotechnics via Mérieux Alliance

Foreign companies too, in recent years, are increasing their focus on India as a key
market. Besides Abbot, which very recently did a multi-billion dollar deal to acquire
the domestic formulations business of Piramal, the table below illustrates efforts of
some other global pharma giants to increase their presence in India:

Kiran Das, General Manager - Exports and Herbals, Anglo-French Drugs & Industries
further elaborates Gajaria's view commenting, “The pharma companies with its
brands that have gained an OTC status (products that technically are to be dispensed
only with prescription but have patients asking for them by brand name), due to
usage over a long period of time, focus on bettering the brand image through various
branding exercises. These companies also focus on the corporate branding at the
retail and wholesaler front. The segments that have good support for OTC sales are
vitamins, dermatological, analgesic, cough syrup and anti inflammatory. We can see
lot of branding activities being carried out for these products. The focus of branding
in these segments remains on doctors and retailers. Visibility and availability play an
important role here.

Chitalia highlights the brand value of pharma products and brand loyality
commenting that “In the pharma industry, a product is sold by brand name, it’s like
a wine. Pharma industry enjoys royalty by way of brand value creation. All MNC's or
big pharma companies earn their maximum top line and bottom line from the first
few brands. It is seen from the sale of companies like Ranbaxy and Piramal
Healthcare.” He predicts that, “In the coming six to eight months one more Indian
pharma giant is about to follow a similar path. Hence Indian pharma companies want
to develop brands which can sustain the company’s profitability forever.”

In fact, corporate branding initiatives impact individual product branding initiatives

and need to go hand in hand, and can help organisations leverage their positive
image on the retailer and patient front, this is one of the biggest reasons why
pharma companies dealing with OTC products focus extensively on building
corporate image. They do this with product branding followed by corporate branding
through commercial advertisements in media. The focus is to highlight both the
product and the corporate brand.
Joy Chatterjee, Manager - Product, Mankind Pharma , emphasises on brand image
and its thrust in the competitive market. For Mankind Pharma a well known name in
the OTC branding sphere, he says, “Branding is an extremely important marketing
strategy in the Indian pharma Industry. It is important to build an emotional bonding
and a relationship of trust with the customer to ensure loyalty and hence consistent
sales. Indian market is highly fragmented and hence a distinct brand image will
make brand equity.”

Some leading companies and their brands

Sr. Company Product Therapeutic use
No

1 Pfizer Corex, Becosule "The focus on branding

Cough Multi Vitamin
is getting higher as
2 GlaxoSmithKline Vicks Action 500, there is a general shift
Cough and cold Fever
Crocin observed in the power
of the consumer to
3 Nicholas Piramal i- pill Emergency directly take
contraceptive medication and seek
alternatives when at
4 Ranbaxy Revital the and
Energy retailer's"
fatigue

5 Novartis Voveran Analgesic - Kiran Das

General Manager
Exports and Herbals
Ethics of pharma marketing Anglo-French Drugs & Industries

"Branding and
The major legislation for pharma regulation is the marketing would most
Drugs and Cosmetics Act, 1940 (DCA) and its certainly help a
company to go a long
subordinate legislation, the Drugs and Cosmetics way, however
Rules,1945 (DCR). Drug Prices Control Order, 1995, sustainable and
Drugs (Magic Remedies) Objectionable Advertisement profitable growth would
largely come from
Act, 1954 and Pharmacy Act, 1948 are other continuous focus on quality"
regulations which have a bearing on the pharma
business in India. The legislations apply to the whole of - Smitesh Shah
India and to all categories of medicines, whether Chairman and Managing Director
imported or manufactured in India. The legislation is Calyx Chemicals and Pharmaceuticals
Ltd
regulated by the Central Government (Ministry of
Health & Family Welfare) in New Delhi, which is "The Pharma
companies should opt
responsible for its overall supervision and enforced by for product branding as
State Government through its Food and Drug it pays you more as it
Administration (FDA). Trade names are regulated by leaves a mark in the
mind of the consumer
the Trade and Merchandise Marks Act (TMMA). whenever he/ she visit
the doctor. Branding
Gajaria points out that though “Branding exercises for also helps in the visibility of the
product and the company"
pharma products in India do not have any specified
guidelines, there are regulations for marketing.” The - S C Sehgal
industry is mostly self-regulated with industry Chairman of the Ozone
organisations formulating guidelines, which again Group of company
impact only their members.

Giving more details Chatterjee reveals that,“The Drug and Magic Remedies
(Objectionable Advertisement) Act mentions a list of ailments for which no
advertising is permitted. The DCG(I), in collaboration with the OTC committee of the
Organisation of Pharmaceutical Products of India (OPPI) has also decided that OTC
advertisements for categories like digestives, antacids, cough liquids, vitamins
tonic/cap, analgesic/ cold tabs, antiseptic creams, glucose powders, band-aids, baby
gripe water, medicated skin products can be broadcast on TV.”

Chakraborty shares his expert knowledge on advertisement ethics saying, “Safety is

a major concern when the FDA considers reclassifying a prescription drug as OTC.
Most OTC drugs—unlike health foods, dietary supplements including medicinal herbs
and complementary therapies -have been studied scientifically and extensively.
However, all drugs have benefits and risks, and some degree of risk has to be
tolerated, if people are to receive a drug's benefits. Defining an acceptable degree of
risk is a judgement call. Labels on OTC drugs, which are required by the FDA, can
help people understand a drug's benefits and risks as well as how to use the drug
correctly. Often, the labels of OTC drugs do not list the full range of possible side
effects, which is a cause of major concern as consumers may buy the drug on the
basis of the brand name alone which may not necessarily be the appropriate
medication for their ailment.”

Product branding for global markets is an entirely different ball game. There is a vast
difference in the branding strategies for regulated and semi-regulated markets and
hence no uniform strategy can be applied. Most regulated markets such as US and
EU are highly commoditised or are gradually moving towards commodity generics.
Hence, ‘product branding’ doesn’t have much role in these markets. Yet, despite
these significant changes in the worldwide pharma market, the greatest advantage
of such a branding exercise is its potential for improved financial performance. Global
branding and shareholder value go hand in hand.

Chakraborty also reveals global regulatory practices saying,“The regulatory

environment is becoming more standardised between countries. With the
establishment of the European Medical Evaluations Agency (EMEA), which approves
drugs for all the members of the EU, the borders are coming down. Japan has also
adapted its approval system to facilitate the entry of Western products. And then
there is direct to consumer (DTC) advertising. While doctors and healthcare
professionals remain the targets for pharma marketing, companies are preparing for
the spread of DTC and consumer-style branding beyond the shores of the US. The
introduction of global branding anticipates the transition to a more consumer driven
market.”

Das point outs, “The OTC branding and advertising guidelines are not very well laid
out at the moment and will get defined over a period of time. With few product
advertisements (i-Pill – CIPLA, Unwanted – Mankind, etc) having stirred up consumer
groups and prominent doctors and individuals into action, it is only a matter of time
before a guideline comes into place. Most advertisement and branding activities are
highly individual company driven and will remain so in the future also.”

Das shows the benchmark of successful branding in India, “The focus on branding is
getting higher as there is a general shift observed in the power of the consumer to
directly take medication and seek alternatives when at the retailer's. The easy
availability of information on various conditions also has helped expand the self
medication market. Time constraints in meeting a doctor for minor ailments also
leads to expansion of OTC sales. Pharma companies realise the importance of the
change and are hence actively pursuing branding initiatives to expand business
growth.”
Das admits that not many studies have been done to evaluate branding strategies
conducted by companies. According to him, “The pressure of market competition and
challenging targets push such studies to the back burner. The easiest way to
evaluate impact of strategies is by monitoring internal sales performance and market
share gain as reported by IMS. Marketing strategy of an organisation largely depends
on product portfolio and is guided by the future directions set out in terms of
segments and products of interest. The IFPMA (International Federation of
Pharmaceutical Manufacturers and Association) code is an excellent guideline set out
for ethical medical marketing. The guideline will be suitable for all marketers who
have focus primarily on the Doctors to generate prescription sales.”

“With severe pressure to contain costs, companies need to build brands to overcome
these pressures, “opines Chakraborty. ” The mega mergers were a way to contain
costs and find new products, yet big companies still need about five new blockbuster
products each year to return the promised growth. Companies need to get their
marketing right, and get it right sooner rather than later, and global branding cuts
marketing costs and allows a much faster and higher profile roll-out. There are more
similarities than differences in attitudes between countries. Providing you do your
market research properly, global advertising – the best way to establish global
branding – will finally be possible,” he says . Shah however makes an important
point hen he concludes , “Branding and marketing would most certainly help a
company to go a long way However sustainable and profitable growth would largely
come from continuous focus on quality.”

Mission brand building

The branding game is 'in' and Indian pharma industry is playing along. Suja Nair
tries to analyse how pharma companies are following this trend of building brands
of their own as never before

'Branding' is what it takes in today's competitive world for any products to sell and
pharma companies do not wish to lag behind. As big deals become more expensive
almost all companies are strategising innovative opportunities to fill gap in their
product. According to Aditi Kare Panandikar, Director, Business Development and
HRD of Indoco Remedies, "Brand building for a pharma company is as important as
in any other industry, as it is the brands which help to build volume and sales of a
company. It helps in differentiating from competition and creating positive mental
association as well as emotional relationship with the customer and also helps to
develop business through long term customer loyalty. Indian pharma sector has
always been focused on building brands. We have classical examples of Liv-52,
Revital, Omez, and Taxim, etc and more recent Zifi, Nise etc."

The post-2005 patent regime seems to have encouraged pharma companies to

concentrate more on brand building initiatives for their existing product rather than
launching copycat versions. As Panandikar points out, "As per ORG-IMS, the
number of new introductions have reduced leading to more effective brand building
for existing products. Brand acquisition from targeted companies helps in growth
and portfolio expansion, but currently, there are no good brands available for
purchase".

Thus well-known brands attract attention and in time become the 'object of desire'
of peer companies. An example of this strategy was Maneesh Pharmaceuticals'
acquisition of Kopran's brand Smyle for Rs 52.88 crore this month. In June, 2006,
Kopran had entered into a tie-up with Maneesh for co-marketing and distribution of
the brand. Smyle, with a pan-India presence at major chemist and retail outlets,
enjoys high recall and equity in the market place and with consumers.

Smaller but smarter

In fact Indian pharma's acquisitions in 2007 have been fewer and smaller in value
than the mega acquisition of 2006. While domestic pharma companies executed
more than 40 deals with 32 cross-border transactions worth about $2,000 million in
2006, including big ticket deals like Dr Reddy's acquisition of Betapharm, Germany
for $480 million (Rs 2,550 crore) and Ranbaxy's Terapia buy in Romania for $ 324
million (over Rs 1,250 crore). 2007 witnessed only 25 mergers and acquisitions
(M&As) with 15 cross border transactions totaling to an estimated value of about
$600-700 million.

Some analysts also point out that the big-ticket buys of 2006 are still being
integrated into the company, for example the Betapharm acquisition has dragged
down Dr Reddy's profitability. One big buy scheduled for 2007, Sun
Pharmaceutical's buyout of Taro, has hit a speedbreaker due to shareholders
concerns.

Industry experts cite relatively small deals like Lupin's acquisition of Rubamin
Laboratories, Baroda to enter into the contract research and manufacturing services
(CRAMS) business and Zydus Cadila's buyout of Liva Healthcare of Mumbai to
strengthen its dermatology product portfolio as glaring examples of an emerging
trend of smaller value but strategic buyouts, targeted brand building.

But a brand is not built overnight. It takes years of strategic planning to fashion a
brand out of a product. "Through the process of brand building over the years, we
have created brands like Febrex Plus, Cyclopam, Vepan, Sensodent-K, ATM, Cloben-
G, Cital etc. Recently, we have taken brand building initiatives for Oxipod
(Cefpodoxime proxetil), MCBM 69 (A combination of Methylcobalamin, Pyridoxine
and Folic acid), Methycal (A unique combination of Calcium and Homocysteine
lowering vitamins)." opines Panandikar citing the strategies used by Indoco for
building a niche for their two products (see table below)

In-licensing for brands

The 'brand savvy' Indian pharma companies are also targeting foreign brands. The
latest such deal is Elder Pharmaceuticals’ signing an in-licensing deal with GNOSIS
S p A, Italy, for marketing the finished product supplied by GNOSIS under the
trademark Sampure. Even in the cosmeceuticals segment, we have USV launching
Sebamed, a German skin product in select Indian market. No doubt this exercises
are calculated to help the India players to burnish their own companies brand
image.

To conclude the success of these branding and marketing strategies will play an
important role in fulfilling growth projections. In this scenario, the new brand savvy
attitude seems to be a natural evolution of the Indian pharma industry.

Product Strategy Implementation Result

Oxipod 1. To convert This strategy was The result is
prescribers (especially implemented all over within two
GPs, paediatricians) of India with about 30- years of
Cefixime by 40 GPs and 20-25 launch the
highlighting the paediatricians per MR brand would
balanced gram positive supported with be 11 crore
and gram negative evidence. this June
coverage of 2008.
Cefpodoxime unlike the
weak gram-positive
coverage of Cefixime.
2. Highlighting that the
latest Martindale's —
The Complete Drug
Reference states that
Cefpodoxime is safe
even in infants' 15 days
old.

Methycal To make gynaecologists Strategy was The brand has

prescribe Methycal (a implemented with 20- been well
unique combination of 25 Gynaecs, 20-25 appreciated
calcium and CPs, and GPs per MR. and adopted
homocysteine lowering Scientific reference by
vitamins) in articles, reprints given gynaecologists
postmenopausal to doctors to support and CPs.
osteoporosis and the product
pregnancy (Methycal).
complications where
not only deficiency of
calcium, but also a rise
in homocysteine is
instrumental. This
formulation that
supplements calcium,
and reduces
hyperhomocysteinemia.
is a first time in India

Source: As provided by the company

suja.nair@expressindia.com