How to… Manage Pharma’s Mid-Life Crisis

Kathy Magnuson, EVP and Managing Director for Brand Pharm, looks at managing the mid-lifecycle crisis in pharmaceutical promotion.

Ideally, the lifecycle management of a brand is developed proactively, simultaneously with launch planning, which should forestall mid-lifecycle crises.

But, suppose you’ve planned out a brand vision, a positioning evolution, and a strategic message platform, and still the brand experiences a mid-lifecycle slump. What next? By determining the root cause of this crisis, marketers can focus on attenuating the emerging problems facing their brands. A deep understanding of the marketing and promotional parameters that define a brand, and indicate the relative efficacy of the brand message is critical. These parameters include market share, sales, market trends or conditions and customer attitudes. Ongoing knowledge of these factors can detect where there is a shift in market perception toward a brand, or reflect an enthusiasm for a potential new competitor. Like any good diagnosis, the earlier that any shift within these ‘markers’ is detected, the sooner countermeasures can be taken, whether they involve repositioning, message evolution, new channels, or customer segmentation. There are many areas of consideration for resolving mid-lifecycle crises, any one of which, or combination thereof, may be relevant to a given brand at a given time.

The message
A common cause of mid-lifecycle crisis is a failing message. It could be an issue of focus. If different customers attribute different or even multiple messages to your brand, the problem could very well be a lack of single-mindedness and consistency in the brand position and promotion. Go back to your original brand vision, and brand blueprint, and eliminate messages on brand attributes that do not contribute to the customer’s decision-making process. A working knowledge of current customer attitudes and insights is critical. Don’t fall back on the assumption that “we know our customers as well as they know themselves.” The right research, conducted in a timely fashion will tell if their beliefs, perceptions and attitudes about your brand have changed.

It’s possible that the message no longer has impact or a competitive edge. Here there are several options. Research if there is an alternative aspect to your brand that is more impactful and relevant and incorporate that into the message platform. Another approach would be to strengthen the brand through external associations, such as patient education, co-promoted brands, or a value-added program focuses on areas important to your customer. Or you can even compensate for a weakened message with more creative media choices, revised targeting, or capitalizing on cultural affinity.

The medium
Another way to jump-start a brand is through creative use of media. Media itself can say something about your brand (e.g. creative, cutting edge, etc.) and can speak to your customer in an environment where there’s less competitive noise. It is also possible to find specific media that may be more relevant to a specific target audience based on their own cultural heritage, and align your brand in that way. This type of affinity marketing can increase loyalty in specific groups because it brings their cultural biases to bear on their decisions. It adds a positive halo to the brand – and corporation with the sensitivity to appreciate a cultural insight.

The target
When a brand hits the mid-lifecycle stage, the brand’s impact with one segment may diminish, yet remain the same or even better with another segment. This can be ascertained through formal and informal research. If and when this occurs, an opportunity worth exploring is the viability of investing a disproportionately higher percentage—if not all—of promotional budget with the more productive segment, assuming sufficient room for growth within that segment exists. Perhaps even exploring an under-targeted customer segment (e.g. pharmacists, nurses, PAs, etc.) could create new opportunity for a flagging brand.

In depth understanding
In an optimal situation, a long-term brand vision is developed prior to launch, and positioning, messaging and strategic direction are evaluated routinely against that vision throughout the brand’s lifecycle. Unfortunately, the real world often intervenes, and brand teams face the challenge of reacting to market factors and the need to re-launch a brand.

Ongoing evaluation of financial parameters, as well as the softer, qualitative parameters that drive a brand success, can detect downward trends earlier, while providing a clearer understanding of the reasons for those trends. Avoiding the common trap of assuming we know what the audience believes – and the right agency partner to help challenge the accepted thinking – can help to ensure that the repositioning of the brand increases its relevance for the audience. Strong market knowledge and in-depth understanding of the customer are essential to brand teams, and their partner agencies in a repositioning exercise. It will target their creative thinking, keep the message focused and relevant, and determine the ideal solutions for managing any brand mid-lifecycle crisis that may arise.

Brand Pharm is a full service advertising agency that focuses on bringing alternative thinking to new and established brands, to (re)position and (re)launch brands for maximum success. Brand Pharm is a member of the Publicis Healthcare Communications group of companies.