Successful Multibrand stratergy case in Pharmaceutical company

 or "Sometimes the most unbelievable strategy works the best"'

When company launch a new medicine or new formula, they have patent protection for 15-20 years.  At the time company has their patent protection, they are the only player in the market and it means a very good profit for company. But what to do after the patent date for the product  has been expierd? A lot of other competitors copy this product. In that case there are 2 options. It’s time to develop new formula, because it’s the fastest way to get profit for the company or the second- to fight with competitors and try to get the biggest market share as possible. But, how to get a good market share if there are more than 50 players?

I had a wonderful lesson with Andrea Tomasini which has worked in pharmaceutical industry for a lot of years and he said that the strategy he applied and let him get the biggest market share for his pharmaceutical company, is the multi-brand strategy.  

Multi-brand strategy refers to a marketing strategy when 2 or more similar products of one company are putted under different brand names. It is based on principle that if the first brand has became successful, than the company develop the second brand without a lot of expenses. Also a very good advantage is to get a bigger shelf-share and leave little share for the products of competitors. It also gives possibility to generate different price and quality gaps. Because as we all know, customers are like prostitutes, going from one brand to another one. So this is a good strategy to “fight” with customers who are not always loyal to your brand. The worst scenario of multi-brand strategy  is cannibilization. 

So, how multi-brand strategy works in Pharmaceutical company?

From my great teacher experience, he launched 2-4 brands which was actually the same product  inside. He made different positioning for each brand, and there was one person of each brand who took responsibility for this brand. Also he never forgot the Pareto principle.

For each brand there was only one responsible person, so that made this person get in love with the brand. Of course the brand managers were "fighting," also inside the company, but the clever strategy influence this ""fight" in a positive way, because they felt a very high responsibility for their brand, so to escape from too big competition inside one company, Tomassini gave the same investments for all managers. And the most important thing he did- he never played with price. Price for all the brands (for the same product) was exactly the same. Tomassini: “The innovation, in my case, consisted in setting up an organizational structure and culture that maximized the opportunities offered by the market at the less relevant cost.”

He gave the same investment for every brand manager to develop the brands and what is more interesting- he gave the freedom them to choose, which would be the best activities and strategy for each brand. So you may think that the Internal Competition could make you lose focus on the market, but in some cases it really works. Also the decision about the price is quite interesting. If we are taking other example like Procter and Gamble, they are also making very successful multi-brand strategy by putting different prices and quality, but this Pharmaceutical company case is different, because there was no price strategy., the price of all the brands was the same. And there was no case in A. Tomassini long year experience, that the multi-brand strategy would cannibalize the first brand. Never. And that is really incredible. And what makes the whole story more appealing, is that with every case launching a new brand for the same product, he always succeeded taking away  a big market share of their competitors, but never from their own brands.

This in my opinion is a very good case to study from and to keep in mind that sometimes also most incredible and even unpopular decisions might work and make you the leader in your market.

Read more:

Positive and negative aspects of multi-brand strategy

Multi-brand strategy

How to work in a group

This article is about my experience and thoughts about this hard job- working in the TEAM. It’s about how person should or shouldn’t act with their group members.

The moral of the article is that never, never forget that you are a human first and only then (or in the university- you are trying to be) the professional in your field.

My experience and observation

In my IED experience I have worked in 3 groups with different people and also I have observed have other groups are working and I have absolutely different experience.

Advices to a better group work despite what I have experienced:

1. Don’t cut other people ideas just because it doesn’t go together with the strategy you imagine or it’s something you didn’t think before. Of course it makes you feel uncomfortable a little bit, because that means you need to come out from your comfort zone and maybe think in some other direction, so actually you are afraid a bit of this idea and you just don’t want to accept it because it makes you think again and look to your project from other horizon, but it can make your project better.

2. Don’t cut other people ideas even if you think the idea is stupid, because it’s only your perception and maybe it’s not the best one. Try to discuss it, develop it and you will see, it will lead you to a new idea! Try to understand group needs and characteristics, what every person of group can give. What are their strong characteristics which can be useful.

3. If you are not discussing ideas other group members’ advice, or you just cut them, they will be afraid to tell you something next time, so the whole climate in the group will be destroyed and they will not be able to give as much contribution they actually could. Listen, listen, listen! The climate in the group is essential important to succeed. There are always people in the group, who try to lead through creating a climate for fear, competition and that in my opinion is the straightest way to have problems. Try to lead by creating positive atmosphere.

4. Don’t be afraid to admit you are wrong, make joke on yourself. Group members appreciate person who admit his own mistakes because after all it’s a human quality and then other members of group will not be afraid to tell their thoughts, opinion, even if they are not sure about it.

5. When it comes to the presentation, let your group members talk if they want! Let them grow! (Come on, guys, it’s a school!) Not keeping the bad climate, atmosphere by not letting your member speak! Image how much energy you spend? If you are a member of a group (especially in the university) what gives you the right to decide- who will talk and who will not? You are all equal and if you can help your group member to grow- let him do it! And if before the presentation you say him: “Our asses are on fire because of you!”, do you think you will really help him to be the best on presentation after that kind of words? I have a big doubt. In every single step try to support your group member and let them feel your shoulder! And after- be happy if he did a great job, because you let him grow.

6. Sometimes students in university, when it comes to a group work, try to have a certain role. I absolutely agree in the group there should be a person, who is putting together all the ideas, like the responsible one. BUT- that doesn’t give you a power to decide, what you will put on the presentation and what not. You are just a secretary who put everything together not the person who gives the green or red bottom for your group member ideas.

7. The last but not least- humanity. I have seen some students are really punishing themselves because they are not use to be the “bad persons” who are trying only to tell their opinion and the rest one they don’t matter. I also was the bad person in one of my projects. That made me feel bad and I was so happy that I finished that project. So, the question is: “How to “fight” whit such kind of person? Why you need to be bad, to make them respect you?” I still don’t have the answer to this question.

Team success is usually the reason of combined hard work with the respect of your team members and that’s the key to success.

P.S. I'm not sure that the attitude I wrote is professional, but I’m sure it’s human.