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REPUTATION AND IMAGE

Drug industry's lost branding and corporate reputation management opportunity


No company likes to “leave money on the table.” But that is what pharmaceutical companies are doing with their traditional approach to reputation marketing, branding and communications.


By not forging a differentiating corporate reputation this lost value is a missed opportunity, at best, in straitened times. At worst, it is a value bleed that threatens to intensify as the industry environment and structures shift dramatically in the coming years.

Historically, drug brands’ reputations have reigned overall in pharmaceutical companies. Marketing budgets are geared to individual product brands, whether detailing them to physicians or generating direct-to-consumer (DTC) advertising. Relatively little investment has gone into corporate reputation.

In most reputation surveys of the public, the pharmaceutical industry falls below the average for all industries, and typically ranks low overall. In addition, there is little perceived differentiation among the large pharma companies. It is startling that an industry that has contributed so much value does not enjoy a higher level of reputation. And it is more startling that one hears more rationalization than new solutions to change it.

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All you need is love


There may be one or two other ingredients necessary before the pharma industry can claim it is the Beatles of the branding world, but love, or emotional engagement, is top of the list – or so thinks branding guru Jonathan Sands, who was awarded an OBE for services to the UK creative industries in January 2011 and who has led Elmwood since 1989, during which time the agency has successfully redesigned international brands for a huge range of companies such as the BBC, Walmart and Durex.


"If you're in love with somebody, you'll do anything for them," he explains over a cup of tea at Elmwood's London office. Everything about the place reflects the company's values, which include being people focused, entrepreneurial and easy-going: from the light and airy atmosphere to the flowery boardroom chairs to the framed photo of Jerry Garcia, the late lead guitarist of the Grateful Dead. "He's in every building," Mr Sands explains, "because he said something truly profound: 'It's no longer good enough to be the best of the best. You've got to be the only people who do what you do'."

This is a message which should resonate with the pharma industry, especially with the current anxiety over the looming patent cliff. In theory, branded pharmaceutical products have an advantage over consumer goods, because they have years of exclusivity (in line with 'the Jerry mantra') before generics muscle in. This time is crucial in fostering an emotional attachment between patients, doctors and drug brands.

In terms of branding, having an engagement beyond the rational one creates loyalty. "And herein lies the real truth about pharma brands versus other brands; I don't think people have got a love affair with pharma brands. Other than probably Viagra," says Mr Sands. The industry, he suggests, is in need of emotional rescue (to quote another 1960s super-band).

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Keep calm and carry on tweeting


Social media in all its forms can be used not only to reach a larger audience, but to create a crucial relationship with that audience. The key word is 'community', as social media revolves around the concept of interaction and conversation.


However, the pharma industry has historically been wary of embracing Twitter and Facebook, and not without reason. Red Dog, a PR agency with a history of advising companies on social media as part of their reputation and management strategy, says that, "Pharma brands are rightly concerned in some respects, and it’s the lack of any real guidelines that’s the scary prospect. Quite simply, the stakes are much higher due to the prospect of adverse events and the regulations that come with pharmaceutical products."

Despite some progress on the regulatory front, with informal guidelines emerging from associations such as the UK's Prescription Medicines Code of Practice Authority (PMCPA), the FDA's continued silence remains frustrating. This, combined with recent highly publicised changes to Facebook's rules on comments, has led several companies to back away from their burgeoning social media presence.

Previously, many pharma companies denied their members the chance to post comments on their Facebook pages for fear that they would be held responsible for any adverse effects listed. On 15 August 2011, Facebook put a stop to this approach, requiring pharmaceutical brand pages to enable comments from members.

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