User talk:Rajesh Kr Yadav

Branding significance in Pharmaceutical Industry

For long time Branding is of utmost importance for consumer goods. Pharmaceutical industry is relatively late in the field of branding. Traditionally Land and Production facility provide value to the pharmaceutical business. Physicians and other medical practitioners are Brand ambassadors for Pharmaceutical Company. During 1980s and 1990s Pharmaceutical Industry enjoyed double digit growth by using traditional means. Later on with the development in Industry, competitiveness significantly increases and the marketing atmosphere is revolutionized. With this development Branding carve its significance for Pharmaceutical products in modern era. Now it is felt that branding is even more important in Pharmaceutical Industry than other sectors. There are strict regulations and restrictions in the marketing of Pharmaceuticals. So, branding is some what different than other sectors. The emergence of Branded generics, increased OTC (Over the counter) market, provide different dimension to Pharmaceutical branding. Today Brand equity is adding value. So Companies can’t only rely on strong R&D, aggressive defense of patents and powerful sales force. They need to build the valuable brands, which in tern make them valuable.

Branding is an important way to create awareness about potential benefits of drugs and medicines. It differentiates products from competitors with both tangible and intangible benefits. Brands help businesses stand out from the crowd. It is also an emotional connect with the target audience. Brands need to be protected and live longer in the market in the best interests of company. Due to more intense Competitive environment, it is needed to differentiate a product from competition and establish a positive image of the drug and the company in the eyes of the customer. So, Branding can be a new competitive advantage. Therefore Companies are spending more money and effort on brand building. Corex, Viagra, Becosules, and other brands from Pfizer make Pfizer valuable.

Branded Generics are non-patented molecule with brand name, which is other than the innovator’s name, is termed as Branded generics. Chemically, branded generics are identical, or bioequivalent to innovator drugs. Companies from countries like India ,having great proficiency in Branded generics. Recently Ranbaxy launches the Generic version of Pfizer’s block buster Lipitor in US market just with the expire of its patent. Till 2015 about 60 drugs patent will expire in US and Indian companies are eagerly ready to launch their generics.

Top Brands are generally older, as age of brand having significant role in their market share. E.g. Corex from Pfizer, Phensedyl Cough from Piramal Healthcare, Voveran from Novartis, Human Mixtard from Abbott, Augmentin from GSK, Revital from Ranbaxy are brand having top share in Indian Pharmaceutical market.

Brand Acquisitions reveals importance of Branding in Pharmaceutical Industry. E.g. Piramal Healthcare Ltd acquired ‘i-pill’ brand of Cipla Ltd for an aggregate sum of Rs 950 million. Consumer health/OTC market is the third most lucrative healthcare sector after pharma and medical devices/diagnostics. For these products direct advertising is essential. So Brand name may play a significant role.

Now a days, Brand building of a medicine during patent period helps to prolong its commercial life. A strong Brand will benefit from higher customer loyalty. Positioning is the first step to good branding. Corporate branding may be more effective than product branding (e.g. The Himalaya Drug Company). It gives company’s long lasting, significant, valuable position.

Brand extension is a global practice for mature products, and in today's times even for newer products. Novartis' leading brand Voveran has at least six brand extensions. These facts support the increasing significance of Pharmaceutical Branding.

Key notice points for Pharmaceutical branding in current scenario:

Price control, Strict Regulations, Advertising constrains, Security and Brand protection, Patent expiration and Generics, increase intensity of competition are the key points to watch in modern time.