Schering-Plough Powerpoint presentation example - PDF

							“Realizing the Promise”
Self-Care in the Global Marketplace

19 November, 2008



Tom Booth
VP CHC International


                                         11/26/2008
                                      Author/location
Current Environment
Increased Pressure on the Global Health Care System
Highlights the Need for Increased Self-Care
                               Increasing
                               challenges
                             developing new
                          blockbuster Rx drugs




Pending patent expiries
  for late-stage drugs                           Increased uncertainty in
                                                    Health Ministries’
   Increased patent                                Regulatory approval
    challenges from                                     processes
 generic manufacturers



                             Increased de-
                             reimbursement
                               challenges

                             Government-
                                                                11/26/2008   2
                           mandated price cuts
Macro Global Trends Bode Well for Self-Care

 Aging population

 Growing middle class in developing markets / increased purchasing power

 Consumers increasingly are taking charge of their own healthcare needs

 Increased consumer interest in lifestyle and wellness products

 Movement towards self-selection

 Opening of non-pharmacy channels in pharmacy-only markets

 Favorable Regulatory environment for Rx-to-OTC switches

 Favorable Regulatory environment for chronic therapy products

                                                                     11/26/2008   3
Innovation is at the Center of All We Do


                Rx-to-OTC Switches – A Great Example of Innovation
                          Leading to Increased Self-Care


                  Customer Centered Product Flow



Discovery    Exploratory                                      Growth
Research    Development    Development   Filing    Launch   Maintenance




                              Rx to OTC Switch



                                                                          4
Rx-to OTC Switch Considerations

 Cherish your equity

 Know the “new” consumer
  Self-Selecting “Consumer” vs. a Physician’s “Patient”

 Study the “new” environment
  “Open Retail Shelves” vs. “Physician as Gatekeeper”

 Leverage the importance of the pharmacist

 Surround the target consumer with consistent imagery
  and messaging that reinforces product efficacy and safety

 Prepare for success
                                                           5
Leverage Factors That Lead To
A Successful Rx-to-OTC Switch


First-to-market

Unique product offering

Advantages over existing therapies

Meets an unmet consumer need

Ownable and protectable elements

Foundation allows for a build-out of the product line




                                                         6
Implications of an Rx-to-OTC Switch


 Can represent a step-change in the portfolio…

 …But does not guarantee success

 Difficult to execute

 Requires multi-disciplinary analysis and constant reiteration and
  refinement

 Begins with Regulatory, but after dossier approval…

 …The “switch” ends and the “Brand” begins




                                                                      7
 Your Brand is an Asset
 Strong Brand Equity is a Competitive Advantage


 Continue to build on your Rx brand equity with the physician
  and the pharmacist

   In many cases, the physician and the pharmacist play
    critical roles in advocating OTC treatment and even specific
    OTC brands.

 Ensure that your Rx brand has a well-defined, consistent, sustainable
  consumer positioning




                                                                          8
Equity Building
Starts Before the Switch


                           U.S Example: Rx Claritin

                        Most prescribed allergy medicine

                        Strong consumer awareness

                        Popular with patients

                        Over $500 million invested in DTC TV
                         advertising as an Rx




                                                                9
Brand Awareness Is Critical

                                                  Brand Awareness Study, 2002




          96%        92%
                               89%
                                           86%

                                                       71%




     Claritin   Crayola   Craftsman   Neosporin   7-up


                                                                                10
As You Move From Rx to OTC…
Evolve From Functional Benefits to Higher-Order
Emotional Benefits

    Rx Claritin                          OTC Claritin




                               Claritin is the only brand that provides
  Non-drowsy
                               powerful, long-lasting relief without
  Relieves allergy symptoms
                               unwanted side effects, so that allergy
  24-hour
                               sufferers can live as if they are
                               condition-free
                                                                    11
Strong Brand Equity is a Competitive Advantage



Determine whether or not your present positioning for is “ownable” and is
 sufficiently differentiating from your key competitors.

Determine how to make your brand’s positioning ownable and unique
  Imagery
  Colors
  Claims
  Taglines




                                                                        12
Strong Brand Equity is a Competitive Advantage


Help your patients develop a relationship with and an affinity
for Rx brand

 Does your Rx brand have a clear and compelling consumer positioning?

 Do the package graphics embody this consumer positioning?
  What do the graphics communicate?
  What imagery do they conjure?




                                                                     13
Claims Matter!

         In the arena of self-selection, product claims are important


 Product claims separate your brand from the competition

 Claims make your product ownable and unique

 Conduct marketing research to determine the optimal bundle of claims

 Work with Regulatory to determine whether or not you can support the optimal
  bundle of claims




                                                                                 14
The Importance of Global Brands




                                  15
Global Brands Matter




                       16
Global Brands


• Where’s the Value?

• Focus on the Consumer

• Importance of Innovation




                             17
Where’s the Value?

 For Consumers, Global Brands have:


  1. A Quality Signal
    – Manufacturer resources
    – Reputation to uphold


  2.Endorsement Value
    – Worldwide acceptance


                                      18
Where’s the Value?
For Manufacturers, Global Brands have:


  1. Scale
   – Financial leverage
   – Development amortization


  2. Shared Learning
   – Best practices from local application
   – Competitive response

                                             19
Where’s the Value?
                  Brand Equity

    SOURCES                 OUTCOMES

    Familiarity                  Loyalty

  Associations &             Profitability
   Interactions



                                             20
Focus on the Consumer



           INSIGHT


     Emotion         Behavior




                                21
Focus on the Consumer

              INSIGHT

 Emotion                Behavior
 • Trustworthy          • Effective
 • Cutting Edge         • Convenient
 • Caring               • Taste
 • For “Me”             • Natural



                                       22
Focus on the Consumer




    Behavior                  Emotion
    • Non-Drowsy              • Alert & Focused
    • 24 Hour                 • Live as if allergy free
    • Symptom Relief
    • Quality of Life Study

                                                          23
Focus on the Consumer



Build Brand Equity by better fulfilling consumer
               needs & desires:

                REMARKABLE
                 INNOVATION



                                               24
TRANSFORM
CONSUMER
EXPERIENCE
             25
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 Importance of Innovation


• Product
• Packaging/Delivery
• Claims
• Positioning/Communication




                              28
Importance of Innovation


                    Dove Shampoo

                    Dove Deodorant

                    Dove Body Lotion

                    Dove Soap



                                     29
PM

CHILDREN’S

Rapid Release

Cold & Flu




                30
Global Competitors


   J&J
   J&J         Wyeth
               Wyeth                                                       Novartis
                                                                           Novartis




   Bayer
   Bayer        P&G
                P&G                                                               GSK
                                                                                  GSK




                      *List is a sampling of brands; not meant to be exhaustive         31
Successful Global Brands
• Create Value

• Focus on the Consumer

• Create remarkable Innovation




 Build Brand Equity & Profitable Growth


                                          32
In Summary

 Macro global trends bode well for self-care and the CHC industry

 Rx-to-OTC switches - Innovation leading to increased self-care

 Brand equity drives success in the marketplace

 Consumer-centric focus is the key to success

 Successful brands can grow into perpetuity

 Innovation can extend the product lifecycle

 Global brands drive value of CHC portfolios

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