Establishing strong brands for over-the-counter drugs

Agus W. Soehadi, Contributor, Jakarta

In Indonesia, the pharmaceutical business is one of the most competitive industries. More than 200 companies fight for a share of the Rp 17 trillion (US$2 billion) market. Out of 200 companies, the market is dominated by less than 40, while the rest struggle to survive.

Even for the major players business is not easy. Heavy promotions with staggering budgets are the order of the day to support sales of over-the-counter medicines.

In spite of these tremendous efforts, not every non- prescription brand succeeds in the market. Antis, a liquid for washing hands, and Notressa, a medicine to relieve stress, are two examples of failures.

The president director of Sido Muncul, manufacturer of medicinal herbs, said one of the most vital keys to successful marketing was gaining the consumers' trust, meaning consumers actually believe the product is effective. Today, when consumers are bombarded with advertisements, along with an abundant choice of products, gaining their trust is a tough challenge for any pharmaceutical company. Hence, creating a strong brand is necessary.

A brand's strength is reflected in consumer awareness and instant recall of the brand. For example, every time a consumer is exhausted and he or she remembers and purchases a certain brand to get fit, that brand is categorized in the high awareness and high recall list. Kratingdaeng and Extra Joss, both energy drinks, are two examples of this, as consumers easily associate the brands and their beneficial properties with their own needs. Therefore, the less a consumer remembers a brand, the lower the sales.

Some aspects of advertising copy, "key words", "catch phrases" or "cues", in advertising lingo, make it easier for consumers to remember brands and thus increase brand awareness and brand recall. Some of the popular catch phrases are "Just komix it" from cough medicine Komix, and "A gift for mama" by Irex, the medicine to enhance masculine prowess. Ease in pronouncing brand names is also important, like Promag, Inza and Bodrex.

Marketers often use four indicators to measure brand awareness. The first is top-of-mind, another advertising term, which means the first few brands that a consumer can instantly mention when asked about a certain product category.

Second is recognition. If a brand enjoys good recognition, it means a consumer can easily relate to its main function or benefits. Indicator number three is choice of purchase. How frequently a consumer makes the brand the first choice of purchase or an alternative is another method for measuring brand awareness. The fourth indicator is choice of consumption. Although a consumer probably uses a competitor's product at a certain time, how often he still remembers his first brand, the brand he generally uses, is an important indicator.

Brand awareness naturally comprises consumers' positive perceptions, which is termed brand association. High recall and awareness without such positive association only means that the brand is the talk of the town while nobody is buying it.

Positive brand association is formed through the superior features or benefits of a product, called brand performance. This is vital in maintaining customer loyalty. In fact, to maintain demanding and fickle customers, brands have to exceed customer expectations.

While brand performance is attributable to its intrinsic features, another element -- brand image-cum-personality -- also helps in many cases. Marketers often use celebrities to convey this element. Joshua, a child star perceived by the public to be smart and successful, is used by Sakatonik ABC to promote its vitamin-filled tonic. Pediasure, producer of high-nutrient supplements, uses Sherina, another child star and singer. Not much of an eater but an achiever in studies and a successful entertainer as well, Sherina has contributed much to the brand image of Pediasure as a beneficial food supplement.

Whatever approach a marketer uses, there are three criteria to follow. Each and every attribute of a brand has to enhance its strength, make it more favorable and emanate a certain uniqueness that is entirely different from competitors.

Tempra is one good example. In liquid form, it is a favorite for treating children with fevers. Parents trust it because most pediatricians recommend the brand.

A conclusion that marketers must arrive at based on these various examples is that to succeed in marketing, especially with over-the-counter products, creating strong brand awareness along with all related attributes is a must. Promotions with huge figures may be necessary, but only if they produce the intended results. Otherwise it's a lot of money down the drain. -- The writer is head of the School of Marketing at the Prasetiya Mulya Graduate School of Management