Corporate brands matter more and more in the global pharma market. We take a look at the “Best Pharma Brands” study by InterbrandHealth to assess what can pharmaceutical gain by investing their time in building their corporate brand value.
Global pharmaceutical giants are now seizing the opportunity to communicate their values and goals not though their product brands, but using their corporate brand. The aim of the game is to influence medical professionals and thus raise sales of the product brands. The results of such a strategy in biopharmaceuticals can be seen in the market data.
Best Pharma Brands report by Interbrand collates global research data, feedback from HCPs, and data-driven insights. A 2013 study demonstrated that a corporate brand’s influence on an HCP’s decision to prescribe or recommend a medication was approximately 7% percent. This year that influence has increased substantially to almost 11% percent, representing a 57% increase in impact. The results can vary across regions and countries. The influence of a corporate brand on decisions made by healthcare professionals is estimated at 14% in Brasil, while in China it’s only 9%. These variations are not only culture-based; they also depend on the purpose of the therapy and whether the brand is recognized as a pioneer of creating new drugs for, e.g. female diseases, or cancer.
Apart from the cultural, geographical and therapeutical factors, other non-financial factors which influence the value of the corporate brand are:
Innovation means being first to the market and, with the right strategy, often remaining the customer’s first choice. Data show that companies that truly deliver innovation in the field rather than offering their own version of an already established product, can expect a higher level of trust and loyalty from healthcare professionals. As a result, the companies can expect their corporate brands to have a greater influence on the prescribing decision by these stakeholders.
2. Understanding regions
What’s good for one market, may be completely misunderstood in another. Having just one corporate brand strategy is not enough. Global giants distance themselves from the competition by understanding and embracing regional differences and therefore paving their way to maximising return on investment (ROI).
3. Corporate Citizenship (CC)
A company’s authenticity can be positively influenced by the fact that it’s local to healthcare professionals or patients. Whether a brand is the first choice or considered a leader in its category is strongly related to its CC efforts and the organization’s brand promise. Stakeholders are more likely to trust and recommend a brand that they see as authentic and local.
Understanding own corporate brand and knowing the organization’s role in certain therapeutic areas are key to building a strong market presence.
For those pharmaceutical companies which have shifted their efforts to building a recognizable corporate brand, the rewards are a marketing dream-come-true: becoming the first choice, customer loyalty, and being a household name associated with innovation and trust.
Brand value on pharma market
(according to InterbrandHealth research in 2016)
- Pfizer / USD $19.985B
- The Roche Group / USD $15.479B
- Merck & Co / USD $13.880B
- Janssen / USD $13.866B
- Novartis / USD $13.496B
- Amgen / USD $13.461B
- Gilead / USD $13.361B
- Novo Nordisk / USD $10.206B
- AstraZeneca / USD $8.123B
- GSK / USD $6.778B