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Advice You - Minding Your Own Brand - How Low Can You Go?
While judging a freshman business plan competition at a local university, I noticed a pattern. Each of the student groups said they were devel
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
oping a premium brand, but they would use a low-cost penetration pricing strategy. Even though they were often selling at a loss, they explain
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ed that by entering the market as the low price leader they would gain market share, people would fall in love with their product and they cou
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ld raise their prices once they had built customer loyalty.
I could not think of any company that after entering the market with low-cost pri
I could not think of any company that after entering the market with low-cost pri
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
cing, went on to be a dominate premium brand and could command an above market price. So, as a judge, I reminded them that “using this logic,
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
they will develop a commodity level brand with very little loyalty and being a commodity is a hole few companies could ever hope to dig themse
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
lves out from.”
I know what you’re saying, “they are freshman and have a lot to learn about business.” Hopefully these students have learned
I know what you’re saying, “they are freshman and have a lot to learn about business.” Hopefully these students have learned
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
rom this and will think differently when it really counts. However, this flawed thinking is not reserved for the business school novice becaus
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
e most companies can't get it through their thick skulls that a low-cost pricing strategy doesn't work and does not build customer loyalty.
B
B
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
ig box store “low-price guarantees” are creating a marketplace full of people who are fixated on price. Customers are no longer loyal to most
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
brands and will switch from their “favorite” brand for a few pennies. These customers are loyal to low-price, not a particular brand. Because
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
loyalty cannot be based on price, I would much rather see a company say that they were 10% higher than their most expensive competitor and the
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
n prove that they are well worth the price. This is a better positioning strategy than to bow to the unprofitable pricing practices that the c
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
urrent marketplace demands.
The only companies who have escaped this madness are the ones that realized a low-cost pricing strategy will neve
The only companies who have escaped this madness are the ones that realized a low-cost pricing strategy will neve
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
lead to long-term brand success. Once they stopped worrying about how competitive their price is and started focusing on their brand experien
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ce, they have now avoided being a low-cost provider and have a better chance at gaining customer loyalty. By doing this, they are seen as a pr
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
emium brand which attracts true passionate advocates and builds a lasting relationship with their customers.
Customers will not become advoca
Customers will not become advoca
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
tes if you have lured them in with a low-cost pricing strategy. The only true way to build advocacy is to find a unique way to stand out from
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
the crowd by providing extraordinary brand experiences. Unless you provide an extraordinary brand experience, customers will see you as a comm
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
odity and will lack brand passion. Advocacy only comes from people who create a true relationship with the brand and that loyalty is priceless
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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