Branding Pharmaceutical Drugs in China
Did you know according to the Chinese Association for Pharmaceutical Equipment group that the Chinese pharmaceutical industry has been growing at an average annual rate of 16.72% over the last few decades?
And that growth isn’t going to slow down anytime soon.
China stands at the cusp of a modern society with an increasingly affluent and growing population. And it’s this growing population that is demanding better services and quality of life – but how will this impact the pharmaceutical industry in China – particularly in regards to branded pharmaceutical drugs?
Not just in the pharmaceutical industry, but for all industries across the board, China has become the must win market. An aging population, increasingly affluent younger population, and the rise of diseases in China all create an emerging need for drugs, which is why The IMS Institute has predicted that by 2016 China will overtake Japan as the second largest pharmaceutical market in the world. So it’s no wonder why billions of dollars a year are being invested in the country.
Many foreign players such as AstraZeneca, Pfizer, Bayer and GSKhave already established themselves firmly in the market and are expanding their services regularly within the country. But with the entry of foreign players in the industry, the competition amongst these players will continue to increase. China has more than 5,000 pharma companies, and in 2010 was the leading country filing pharmaceutical trademarks – even beating out the United States, one of the most mature pharmaceutical markets by nearly 10,000 trademarks filed. Even though China is the global leader filing pharmaceutical trademarks, the majority of the drugs manufactured in China are generic. But as China’s consumer mindset continues to mature and grow, so will the branded pharmaceutical sector.
Why the continued growth?
Specifically for pharmaceuticals, powerful product brand names are important tools to offset competitive pressure from generics and to build customer loyalty. Though heavily regulated by state legislations, in China’s case the SFDA, brand naming for pharmaceutical products is unique, and can greatly affect marketing decisions.
In highly competitive environments, a strong brand will rise above the clutter and demand attention. With a strong brand, you secure a unique position of credibility in the consumer mind, have more influence on your market and motivate customers to purchase from you.
From a marketing perspective, brand naming for a pharmaceutical product may take into consideration aspects such as the chemical/biological nature of its active ingredient, composition/formulation, therapeutic indication, associated medical condition, benefit and adherence to the corporate identity.
From a communication point of view, pharmaceutical branding specialists must decide whether to focus on the functionality or the end-user benefits. It is also from the same angle that pharmaceutical naming is usually considered of great complexity, as most of the time, both audiences should be targeted.
Chinese regulations on pharmaceutical drug naming frown upon utilization of characters that are either indicative of curative effect, intended use, target audience or may imply efficacy.
Regardless of the market you’re in, developing a strong pharmaceutical name is tough, but in China it can be particularly challenging. You must keep in mind translations, the use of characters and regulatory conditions. Biological and pharmaceutical products rely heavily on the protection of intellectual property rights, so it’s essential for foreign companies to gain thorough understanding of China’s IPR protection system before entering the market.
Multinational companies have greatly expanded their businesses in China over the years and have aligned with local pharmaceutical companies, which has proven to be a winning strategy for both parties. And as these companies and other foreign players continue to expand their footprint in China, competition will become fierce as each seeks to penetrate the market. Pricing, intricate knowledge of regional markets and developing strong brands will determine who gets ahead and who doesn’t.
Is Fido the Next Ideal Target Audience Member? A look at brands that have extended into the world of pet products
Brand extensions are a common way for established brands to profit from untapped markets that their current product line does not appeal to. By entering into an entirely different product category, these brands can attain these customers and, if done correctly, the extension can be a very lucrative endeavor. For example, Ralph Lauren’s Polo brand successfully extended from a clothing line to home furnishings, such as linens and towels, and beyond. But if a brand extension fails, the parent brand runs the risk of diluting or damaging its brand image and equity.
So why would a well-known brand enter into an entirely unrelated product category, such as pet products? In an interview with Extendonomics, Maria Peevey, CEO and Creative Director of SimplyShe, a leader in the pet lifestyle category, said, “Pet parents increasingly want the same treatment options for their pets as they have for themselves.” These “pet parents”, not pet owners, will go beyond the basic pet needs such as kibble and vet visits and strive to pamper their pets. Brands, such as Martha Stewart, have extended into this category in order to reach these pet-centric customers and provide them with products that allow them to share everyday human luxuries with their pets. Now you can sit on your Martha Stewart couch and read your Martha Stewart Magazine while your pooch lounges on his Martha Stewart dog bed.
When brands consider making the leap into a new category, they must decide if the move is a good match for their brand’s mission and goals. For luxury salon brand Paul Mitchell, moving from human hair care to pet shampoos seemed like a natural extension. This belief brought to life John Paul Pet, a company dedicated to providing “pet care with a salon pedigree.” While there are mixed reviews about the success of this brand extension, with some critics stating that this decision significantly eroded the luxury salon brand, others argue that if pet parents want their dog, cat of even horse to use these high-quality, pH balanced products, then they should have the option. Both brands have banned animal testing on their product lines and John Paul Pet supports non-profit organizations including The Humane Society of the United States and the Best Friends Animal Society.
Another well-known human luxury brand, Omaha Steaks, has ventured into the world of pet products and now offers Omaha Steaks Pet Treats. These cat and dog treats are made from genuine USDA meats and often require refrigeration after opening, a fact that may cause some confusion among pet parents who are looking for some steaks to grill. In her interview, Peevy noted that it is easy for brands to transition into the pet market because they can use excess materials to make the products- leftover fabrics are used to make pet clothes, unused leather from a belt makes a great dog collar and meat that wouldn’t live up to a human’s expectation from Omaha Steaks can be made into a yummy dog treat.
Successful pet brand extension companies all have one thing in common- they know they are selling to humans. These pet parents want their companions to have the same things they love, whether that’s clothes, furniture or grooming products. Tell us what you think of these brand extensions in the comments below.
Mixed by Lily Brock
For Your Best Night Ever, The Secret is Clear
If you are anything like me, you love the scoop on the latest and greatest hair and beauty products. Or maybe you enjoy relaxing by catching your favorite show on T.V. or browsing the internet. Either way regardless of your interests or media consumption preference, you have probably heard or seen some type of advertising for the new premium hair care brand Clear Scalp & Hair Therapy. Recently launched by Unilever, Clear Scalp & Hair Therapy is already sold in 42 different countries and has just recently made its way to the United States market, and already it’s making a splash.
One of the first things that came to my mind upon discovering this new line was wondering how exactly a new brand of shampoo and conditioners distinguishes itself from their abundance of competition. If you’ve been down the hair care isle at your local store lately, you know that it can be overwhelming with the large variety of options there are to choose from. To combat this issue Unilever is taking a new (and extremely interactive) approach to promote their brand and get the consumer’s attention. In their promotion for Clear, NBCUniversal’s Integrated Media along with Creative Partnerships & Innovations Group and Mindshare Entertainment have created one of the largest social television advertising campaigns to date. “In today’s crowded marketplace, it is more important than ever to rise above the clutter with breakthrough creative that engages audiences in new and unexpected ways” says John Shea, Vice President and Chief Marketing Officer of integrated media at NBCUniversal.
Advertising for Clear Scalp & Hair Therapy is focused around a multi-part mini-series that will air across several different TV networks including NBC, Bravo, E!, Oxygen, and Style as well as their online websites. Named “The Best Night Ever,” viewers follow two club-goers on their quest to gain access to the VIP room and have, well, their best night ever! Jane Krakowski, Giuliana Rancic, Andy Cohen and Tim Meadows are among the characters within the commercials. “Ultimately as our characters and celebrities prove, the secret to having your best night ever is not befriending the bouncer or getting to know the bartender, it’s about the confidence that great hair brings” says David Rubin, U.S. haircare marketing director for Unilever.
Viewers can tune in to watch segments of the series air during different programs on different networks and are then directed to go online to Clear’s Twitter or Facebook pages. Once there, viewers can gain access to an online video platform that allows viewers to make choices that affect the course of the series in real time. While viewers are there they can check out the latest information on the product and leave their comments and questions as well. “This is audience engagement at its best. By infusing entertainment into the Clear Scalp & Hair Therapy message, the campaign becomes a fun, shareable, impactful experience,” notes Barbara Biangiardi, Senior Vice President of Creative Partnerships and Innovation.
Marketing your brand this way allows access to direct consumer communication and allows your company to be more attuned to the ever changing trends in the market. Only time will tell how successful Clear Scalp & Hair Therapy will be in the United States, as the last part of the mini-series is set to air June 11th. With such an innovative marketing strategy where viewers are engaged with multiple screens yet exposed to only one product, it would be hard to imagine anything other than success for Unilever. As their campaign suggests, you can accomplish anything as long as your hair looks great!
Contributed by: Nicole Juliano
Google’s Cover Band
Uh oh. Looks like Google Music showed up to the party wearing the same outfit as iTunes. Unfortunately for Google, the outfit looks better on iTunes. Not to mention Google brought the less attractive date (Google+).
For anyone who isn’t aware, Google recently launched its much anticipated digital music application, Google Music (original name, I know). Finally another music marketplace to rival iTunes – sounds great. But what makes Google Music different? Well, song costs are comparable to iTunes and the layout isn’t anything new. And unfortunately Google wasn’t able to get Warner Music Group to sign on the dotted line, which leaves a huge hole in their music offering (Cher, Cee Lo, Diddy, Green Day, Van Halen, to name a few). But Google knew all of this before launch, so I was curious to see how it would position itself in order to get consumers excited.
So what does make Google Music stand out? The short answer is: Nothing. After taking a look around the application, Google Music seems to be positioning itself as the “instant-anywhere, shareable music place.” It sounds accurate, but is it unique? Let's take a look.
- Instant-anywhere – This is no longer ownable. Although it’s extremely important, the ability to download songs and instantly listen on any device has become an expected feature. As a player 8 years late to the game, it’s unrealistic for Google Music to position itself around this idea.
- Shareable – This is a more interesting approach. iTunes is not known for being a social proponent, so there is some opportunity here. Google Music does have some cool share features; however, everything links to Google+, which has been a social wasteland since its launch. It also doesn’t help that Facebook’s strong partnership with Spotify seems to be changing the way people share and discover music.
All in all, Google Music isn’t giving consumers a strong enough reason to switch to their services - just an eerily similar alternative. They have a foundation, now they just need to find their niche and own it.