Dariusz Goźliński

"First, do no harm!"- This should be, the first rule for the communication activities in the field of pharmaceutical and legal.

Who am I?
Passionate about marketing and advertising. Strongly associated with the pharmaceutical industry and related. I create and I manage advertising campaigns including the use of social media in activities dedicated to doctors and patients. Professionally, I am the founder and managing director of the agency GreyTree. From 2002 r. I am associated with a limited marketing and advertising law. Among other things, worked with companies such as: Unilever, Jelfa, Sanitas Group, Adamed Healthcare, Blue Farma, Chance, Genexo, GAL, Heel Poland, Symphar, Sun Farm, Admiral, Ipsen, HiPP, Alpen Pharma or Krewel Meuselbach.

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Dariusz Goźliński
such. +48 22 628 53 61
e-mail: d.gozlinski(at)greytree.co

Marketing strategies in the pharmaceutical market

15 December 2011
Marketing strategies in the pharmaceutical market

To ensure the development of enterprises, operating in the pharmaceutical market, constantly setting takes new objectives and defined ways of achieving them. This way of thinking and acting in relation to marketing and its relationship to the development of the company is treated as a strategic marketing.

The process of building strategies, which dynamization development of the company in the market, vexes farmamarketerów. One recommendation talks about creating your own, as a unique market. Choosing OTC market, Rx, supplements or some combination thereof largely determines the mode of operation of the company. These methods may be contingent on the company's history (previous findings, patents, therapeutic systems) or result from the assumed orientation (for example,. to undertake the production of generic drugs). In order to expand options for action, large companies take over smaller players, assuring access to new markets, knopw-how, innovative molecules, patents, production technologies. On the home market may be mentioned even acquisitions Polpharma and Adamed.

Marketing strategies implemented by companies operating in the pharmaceutical market are located in one of the cleanest conventional divisions or strategies are combinations of different strategies. You can specify two classic divisions:

– shaping the field of market strategy

– competitive strategies.

Shaping the field of market strategy is based on two variables: Product and Market.

In the analysis of the relationship between these two factors Ansoff matrix is ​​used, which allows the separation of the four groups of strategies. Product-market strategies are related to the choice of the target market and product positioning. Of the product, in turn, determines the use of various instruments marketing-mix and determines the intensity of its use. What is important, This strategy combines the two essential elements of the market - competitors and patients.

Fig.1. The strategy of shaping the field of market

Art-seweryn-2Market penetration strategy (increase sales of the same drugs in the same market segment) use manufacturers, who seek to change the category of Rx to OTC.
This strategy is also implemented by these companies, drugs which have been approved for non-pharmacy sales, in shops and petrol stations. Drugs are widely available and are often purchased by.

Polish pharmaceutical market are used in virtually all market development strategies:

  • direct and indirect exports to the Polish market (Eli Lilly, Merck)
  • setting up branches in Poland and construction of production facilities (KRKA)
  • mergers, takeover (GSK bought Polfa Poznan, Sanofi-Aventis and Zentiva NEPENTES, the sale of individual Polfa companies by Polish Pharmaceutical Holding).

Strategy different from the spatial development strategy is the development of the market by reaching out to other segments of the market, or modification of the product to meet the needs of different segments (Aflofarm: Valerin it, soft, strong, max).

Product development strategy (at the current market) may take the following forms:
increase the quality level of the drug while maintaining its existing properties
broadcasting drugs new properties by using different additives, increasing the amount of active substance (active, max, strong, night, Day like.)
facilitate the use of the drug: offering it in various forms and shapes (tablets, slices, drops, suspension, suppositories, ampoules etc.), as well as in "smart" packagings (birth control pills with a calendar for easy taking)
improve the aesthetics of the drug by changing the visual identity.

Modification of drugs is a response to changes in market conditions. The main premise of this are changes in the preferences of buyers and the emergence of competing products, which can better meet the expectations of patients. Modification of the product strategy is based primarily on building competitive advantage and avoiding (by varying the drug) confrontation with competitors.

Strategy based on the marketing of new drugs carries a high risk of, as it is a lengthy process and the high risk is at each of its phases. An interesting example is the action of innovative companies, that after the expiry of the patent the same time introduce reproductive medicine. They do this through their dependent generics companies or alliances with other companies (Sandoz – Novartis, Pfizer- Schwartz Pharma).

Diversification strategies rely on the search capabilities of enterprise development with the introduction of new formulations. It occurs through its own resources companies, through mergers with other entities or their acquisition

It is worth mentioning vertical diversification strategy in the pharmaceutical market. It occurs mainly in the commercial sector (pharmaceutical wholesale integration of detail - pharmacies).

Next to the product and strategy - market, there is competition in the form of strategies:

  • low cost (low prices)
  • differentiation (high-quality)
  • concentration on a selected segment of the market.

The rationale for selecting either of the above. an analysis of the forces that govern competition.

Sketch. 2. The main forces that govern competition in the pharmaceutical sector

Art-seweryn

Marketing Strategies

The basic types of competition and competitive przewago types:
competition and price advantage - price and promotion instruments have a buyer interested in the material benefits of the acquisition of the product (more medicine pack for the same price).
Competition and quality advantage - emphasis on the elements of the marketing mix, mainly the product, distribution, but also the staff (doctor, medical representative, pharmacist).
Competition and prevalence information - use the force brand, stipulating that advertising, PR, sales promotion tools. The reference to the non-material aspects of buyer interest (effectiveness, taking safety).

The pharmaceutical market is one of the markets with extremely intense competition processes. A producer may have a portfolio of original and generic drugs, competing. A large number of intermediaries specialized causes overlap between the activities (Wholesale, pharmacy). The choice of competitive strategy is simply a difficult decision.

The strategy of dominant position in terms of low cost is not the same with a low price strategy. It is based on performance and experience as a result most often associated with a high proportion of the company's market. Sanofi –Aventis, producent No-Spa, having gained a high share for this drug in its segment, may use a low cost strategy, purpose of this distinction in terms of price.

The company applies differentiation strategy focuses on high-quality drugs, achieves a high efficiency of marketing activities, maintain a good image of the company (brand). This strategy has a good chance of success in certain circumstances:

  • patients' needs are diverse and can not be satisfied by a drug or a standard formulation
  • there are many opportunities to differentiate drug, and new forms are recognized and accepted by patients
  • diversity effect can not be easily and quickly copied by competitors
  • the cost of the drug is high diversity, but customers accept a higher price of the product.

Concentration strategy is to focus the company on a selected segment of the market. This is related to product and service specialization chosen market segment, highlighted mostly due to the nature of the disease entity or demographic characteristics (babies, women like.). For example,, Homeopathic company for a long time focused on the segment of the pediatric.

Pharmaceutical companies generally mixed strategies. Intensifying competition phenomena and new behaviors are a key differentiator buyers of these changes.

On what strategy will put your company?

Those interested in the article explore issues refer to the book H. Mruk,
B. Pilarczyk, M. Michalik Strategic marketing in the pharmaceutical market, ed. Wolters Kluwer Polska. In preparing the article, I supported the content of the 12 Chapter books.

It is a welcoming entry Seweryn May, enthusiast of modern technology, farmamarketera working in a pharmaceutical company Heel Poland Sp. z O. The.

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