linked in facebook twitter rss

  • Interbrand
  • Brandchannel

your chance!
your chance!
 
 
 
 
 

 

  Pharmaceuticals Go to the Dogs   Pharmaceuticals Go to the Dogs  Edwin Colyer  
         
 
Pharmaceuticals Go to the Dogs If you have a pet, chances are you’ll spend as much on your vet bills as you do on your own healthcare. Animal health may be the poor cousin of human healthcare, but it is still a big business.

So it is no surprise that the same companies who make your medications are also in on the animal act too. Some names, like Pfizer, you might recognize, while others -- Intervet, Elanco, Merial -- may be new; but look behind these animal-only brands and you’ll still find big pharma: Akzo Nobel, Eli Lilly and Aventis/Merck respectively.

 
Of course the ties between animal and human health are strong. “We’ve been in the animal business for 45 years,” says Bob Fauteux of Pfizer Animal Health. “It’s not a new development. It arose quite clearly that some medicines for people had good clinical utility in animals.”

Animal health is profitable for the pharma business in many ways, not just on the bottom line. The financial impact of animal health divisions may be small -- usually just a few percent of total revenues -- but the divisions offer synergies and maximize investments in R&D; they sell products and have good PR potential.

So why have some companies chosen to keep the animal and human identities separate, while others place them under the same corporate brand?

Pfizer is openly committed to the close bond between its animal and human divisions. CEO Hank McKinnell points to Pfizer animal health as part of the company’s commitment to a healthcare continuum, with both the largest human and animal health R&D investments.

“The animal health R&D is much smaller, but it leverages the range of research on the human side,” says Fauteux. He believes that his division benefits from the corporate Pfizer brand too. “Anecdotal evidence suggests that people have become more aware of Pfizer because of our human operations. Familiarity with Pfizer Inc certainly helps to support people’s perception of Pfizer Animal Health. We’ve never heard a comment to the opposite, where people are confused by the human and animal aspects having the same brand. We’re absolutely committed to staying under the same corporate identity. It’s a decision we made without any hesitation.”

Those companies using the same corporate brand for both human and animal operations may start to see some brand synergy in years to come. The area of companion animals is perhaps where the branding has its strongest overlap. “There’s real room for growth in the pets business. People expect the same treatment for Fluffy and Fido as for Freddie and Jennifer,” comments Helena Spedding, Deputy Editor of Animal Pharm Newsletter. “Consumers widely understand that if animals can get the same bugs as us, it’s pretty obvious that they will need a similar form of treatment. I wouldn’t think they would have a problem with the same company selling both.”

The wider recognition of pharmaceutical companies stems from direct-to-consumer (DTC) advertising of human pharmaceutical products. “Before we had DTC advertising there was probably not much to say on this subject at all,” Spedding continues. “You went to the vet and the vet picked the drug. There was little relationship. But since DTC there is a relationship been drug firms and the end consumer. For example, if you take Bayer’s aspirin, you may notice Bayer makes your dog’s pills too. There’s a transfer of trust, some kind of halo effect. You do get some knock-on effect, but only in companion animals where there’s an influence. If someone has a dog with osteoarthritis and the drugs don’t work, if the doctor prescribes them a drug from the same company for their own osteoarthritis they may refuse it.

“Pfizer, for instance have done a lot to build their corporate image, and there must be some carry over into animal health,” Spedding explains.

Not everyone believes that these crossover brands will have any real advantage, though. Tim Evans, head of animal health consultancy at Wood Mackenzie, says that the important thing is for companies to find synergies between their operations. He doubts that the corporate brand plays much of a role. “After all, in DTC the corporate brand is very small. What is important is the product brand, not who makes it.”

 
Dr. Joachim Hasenmaier, head of Boehringer Ingelheim’s animal health division, agrees. “It is important to have a brand that conveys a company image. Animal health is fairly distinct from human pharmaceuticals, but if the human side has a strong image then it will carry over to animal health. But I don’t think that not having the crossover damages an animal health company’s chances. What is important is the branding of individual products. These are much more important. It would be a disaster if we lost our product brands.”

The rise of Merial shows that independent animal health corporate identities have every chance of success. In 1997 Merck and Aventis both undertook a strategic reorganization of their operations. They merged their two animal health divisions into a single joint venture company, Merial, effectively creating a new brand in animal care. In half a decade the brand has grown to be the third largest animal health company in most markets.

Many of the other companies with separate brands for their animal care operations would simply highlight the historical nature of the company name -- most have been in existence for decades, when the marketing climate was different. They have built up their brand equity and now is not the time to change. Besides, incorporating the parent company’s name now would inevitably cause unnecessary confusion.

Hasenmaier suggests that, despite the current vocal support for animal health and his own company’s commitment to retaining the Boehringer Ingelheim name, most publicly owned pharmaceutical companies would still prefer to keep animal health separate from human pharmaceuticals. “If there’s going to be a trend I think it is still towards independent animal health companies. At the moment companies are keeping them mainly because there are no strategic buyers offering the right price. And as animal health is profitable, they are welcomed, but I think most would prefer to see animal health as a separate brand. Animal health has become so marginal that they don’t want the risk of animal health damaging the human pharmaceuticals brand or business.”

So the spotlight is really on the few pharmaceutical companies -- and Pfizer in particular -- that use the same corporate brand. These companies must prove that the operational synergies between animal and human healthcare are further enhanced by sharing the same brand. Otherwise Freddie and Fido may no longer share the intimacy of getting their drugs from the same manufacturer.    

[15-Sep-2003]

 
  
  

Edwin Colyer is a science and technology writer based in Manchester, UK.

     
 commenting closed Add Social Bookmark bookmark  print
 suggest topic  recommend ( 7 )  email

  brandchannel home archive   2013  |  2012  |  2011  |  2010  |  2009  |  2008  |  2007  |  2006  |  2005  |  2004  | 2003  |  2002  |  2001
 
 
Dec 22, 2003 Are We Still Lovin' It? -- A.K. Cabell
  What is McDonald’s strategy for getting back to the business of international success?
   
 
Dec 15, 2003 Will E-Government Click with Its Constituents? -- Stephen Gardner
  Electronic services cannot grow without attracting the public on more than just functional benefits.
   
 
Dec 8, 2003 Products that Rise Above Their Corporate Brands -- Edwin Colyer
  How important is the corporate brand compared with the product brand? We may request our Prozac by brand name but do we care who makes it?
   
 
Dec 1, 2003 When Imposters Knock Off Profits -- Diane O’Brien
  From street corners to websites, knock-offs rip off fashion brands.
   
 
Nov 24, 2003 Low-Carbs: Are Brands Losing It? -- Dale Buss
  Food and beverage brands deal with the latest trend to hit the industry: the low-carb frenzy. Is it time to throw your entire product line down the trash disposal over a trend?
   
 
Nov 17, 2003 Hip Marketing: Targeting a New Audience -- Randall Frost
  Medical product brands are skipping trials and heading straight for a jury of their patients.
   
 
Nov 10, 2003 Is Bologna Bologna if It's Not from Bologna? -- Michael Standaert
  The EU brings trademark law to the table as it cracks down on the generic use of terms such as Parmesan, Burgundy, Chablis, Bologna, and Feta.
   
 
Nov 3, 2003 The Fundamentals of Branding -- Vincent Grimaldi de Puget
  A definitive breakdown of what branding is, why it is, and what it has to do with you.
   
 
Oct 27, 2003 Navigating the Economic Upturn -- Dale Buss
  Baby steps or giant leaps? As the economy slowly improves what’s the best strategy for your marketing plan?
   
 
Oct 20, 2003 Taking Advantage of Women -- Edwin Colyer
  Would you like a loyal customer from cradle to grave? Pharmaceutical companies are missing out on opportunities for a long-term product line for women.
   
 
Oct 13, 2003 Are French wines screwed? -- Emilie Boyer King
  Is France’s reputation enough to sell a brand of wine? Or is this strategy causing French wines to slip behind in global sales?
   
 
Oct 6, 2003 Made where? -- Ron Irwin
  English roses grown in Kenya, American skis built in China, Italian shoes made in Romania? Home brands insist offshore production is the only route for survival.
   
 
Sep 29, 2003 Turning Over a New Leaf? -- Edwin Colyer
  We care about our staff and the environment… right? Are businesses really improving their records on environmental responsibility? Or is this cynical marketing at work?
   
 
Sep 22, 2003 Who Is Securing Your Identity Online? -- Randall Frost
  Brands from Amazon.com to IKEA have exposed sensitive customer information on their websites. Are these events hindering the growth of e-commerce?
   
 
Sep 8, 2003 Can Bosch spark its OEM brand? -- Brad Cook
  Could OEMs in the automotive industry apply the Intel Inside approach to their products?
   
 
Sep 1, 2003 Are Your Employees the Solution? -- Edwin Colyer
  Is branding a waste of your company’s money?
   
 
Aug 25, 2003 Viral Marketing: It's Infectious! -- Randall Frost
  Is your brand contagious? Some brands promote through viral marketing and let their customers do the talking.
   
 
Aug 18, 2003 Promoting Brand Allegiance Within -- Edwin Colyer
  Can your employees behave on brand? Brand management is nothing without internal buy-in.
   
 
Aug 11, 2003 Marketing Beauty Products From the Inside Out -- Dale Buss
  Brand owners dig deep to bring skin care to the surface of consumers’ minds.
   
 
Aug 4, 2003 Me Incorporated: Your Own Magnetic Brand -- Randall Frost
  Is there power in a personal brand?
   
 
Jul 28, 2003 Samsung Shows its Strength -- Robin Rusch
  Five years ago Samsung Electronics was a cheap Korean brand; today it’s a quality name that climbs to number 25 in Interbrand and BusinessWeek’s top global brands survey.
   
 
Jul 21, 2003 Taking a Closer Look at Your Customers -- Edwin Colyer
  Ethnography breaks the boundaries of conventional branding.
   
 
Jul 14, 2003 PR Stirs it Up -- John Karolefski
  Move over advertising and marketing, the spotlight's on PR.
   
 
Jul 7, 2003 Will the Wireless World Connect? -- Vivian Manning-Schaffel
  Cellular service providers vie hard to ring your bell.
   
 
Jun 30, 2003 Delivering Global Brands -- Edwin Colyer
  Global express distribution operators, like TNT and Exel, are consolidating supply chains to better service and win contracts with brands like Deutsche Post, FedEx and UPS.
   
 
Jun 23, 2003 Battle of Biblical Proportions -- Dale Buss
  Zondervan revises the New Testament and faces a challenging marketing effort to convince readers that it’s still a Good Book.
   
 
Jun 16, 2003 Can Hip Hop Cash In? -- Abram Sauer
  Courvoisier, Burberry and Mercedes have all gotten the hip hop treatment. What if that placement were planned and paid for?
   
 
Jun 9, 2003 Pushing Pills to Those Who Pay the Bills -- Edwin Colyer
  Since most patients don’t choose their drugs, pharmaceutical brands typically target physicians, but should these brands be targeting healthcare payors as well?
   
 
Jun 2, 2003 Celebrity Endorsements Reach for the Stars -- A.K. Cabell
  Can celebrity endorsements knock out the competition?
   
 
May 26, 2003 Membership Has Its Privileges -- Brad Cook
  The epitome of brand loyalty can be seen in a phenomenon called "brand communities."
   
 
May 19, 2003 Can Tobacco Brands Extinguish Their Bad Rap? -- Elen Lewis
  Do tobacco companies have any hope of shedding their evil image?
   
 
May 12, 2003 Brands That Go Places -- Patricia Tan
  Forget the passports and plane tickets, did you pack the guidebook?!
   
 
May 5, 2003 Who's Filling Gen-Y's shoes? -- Dr. Pete Markiewicz
  Surprising developments among the so-called Gen-Y or Millennial market in the US could point to future trends worldwide.
   
 
Apr 28, 2003 All Sweeteners Are Not Equal -- Dale Buss
  The substitute sugar wars are not sweet.
   
 
Apr 21, 2003 Crash Course in Auto Branding -- John Karolefski
  Is safety a compelling brand attribute when it comes to car purchase decisions?
   
 
Apr 14, 2003 Brand Leader -- Edwin Colyer
  How closely is the CEO linked with the company's brand?
   
 
Apr 7, 2003 Happily Ever After? -- Dale Buss
  Looking to ally forces in a co-branding relationship? Match-making is a skill fraught with pitfalls, but done right it can expand market and grow opportunities.
   
 
Mar 31, 2003 The Brands We Love to Hate -- David Liss
  What can we learn from the brands we just can't stand? WWE, Jerry Springer and NASCAR aren't as far from Tiffany's or BMW as we may like to believe.
   
 
Mar 24, 2003 The Side Effects of Going Off Patent -- Edwin Colyer
  Can pharmaceuticals retain their brand equity after brands go off patent?
   
 
Mar 17, 2003 Do Online Ads Boost Brands? -- Fiona Harvey
  Combine web advertising with tv and radio, and you've got an effective brand-building tool.
   
 
Mar 10, 2003 The EU Marks Its Territory -- Ed Meikle
  The European Union now offers trademark protection across its member states for managing your intellectual property.
   
 
Mar 3, 2003 Estonia and Belarus: Branding the Old Bloc -- Stephen Gardner and Mike Standaert
  Estonia's exercise in nation branding kick-started tourism and investment. How does Belarus compare and what can it learn?
   
 
Feb 24, 2003 Advergaming Scores -- Dale Buss
  Brands break through online clutter with games and contests to engage the consumer.
   
 
Feb 17, 2003 Life Saving Brands -- Edwin Colyer
  Are branded medical devices the next must-have accessory?
   
 
Feb 10, 2003 Google Ranks First: 2002 Readers' Choice Award Results -- Robin Rusch
  Our readers choose Google.com, Nokia, Target, LG and Corona as global and regional brands for Brandchannel's 2002 Readers' Choice survey.
   
 
Feb 3, 2003 Brand USA: Tarnished? -- Patricia Tan
  How is it that American brands do so well in Muslim countries, while Brand America itself is so tarnished?
   
 
Jan 27, 2003 Big Brand on Campus -- Dale Buss
  Smart brands head back to university, where a captive audience awaits them.
   
 
Jan 20, 2003 Down to the Core: Branding Not-for-Profits -- Patricia Tan
  Why should not-for-profits concern themselves with branding?
   
 
Jan 13, 2003 Is Advertising Effective in Brand Building? -- Robin Rusch
  Could it be that advertising is a very expensive waste of time in building a brand?
   
 
Jan 6, 2003 Urban Consumers Get Phat -- A.K. Cabell
  Can mainstream brands like Motorola tap into urban youth market through co-branding with brands like Phat Farm?