2007 bhbia brand equity hargroves winters intro 2011

Noah Built the Ark Before the Flood; Can We Apply His

Climatic Prescience to Quantitative Brand Equity

Measurement?

Peter Winters Tom Hargroves

BHBIA Conference, April 2007

About our BHBIA 2007 Brand Equity paper

Within the pharmaceutical industry, there is ongoing interest in how to measure the impact of physician emotions in driving prescribing, and there are different approaches to do this. Coincidentally, within the past couple of weeks I have met with Brian Attig of Psyma, and Monica Marantz, of Ipsos Health who have also both prepared presentations in this area

• Brian’s paper, prepared with Alison Clabaugh, is called “Quantifying Emotional Driver’s in Physician Attitudes & Behaviours” and presented at PBIRG 2009. It is available to view online as an on-demand webinar.

• Monica’s paper, with John Hallward, is called “The Power of Emotions in Driving Physician Prescribing Behavior”, and presented at the Canadian Pharma Market Research Conference 2011.

These two meetings prompted me to make available online the charts for a paper I prepared with Tom Hargroves of Novartis for the BHBIA conference, 2007 . The conference

had a climate change theme and went by the title “Noah Built the Ark Before the Flood,

Can We Apply His Climatic Prescience to Quantitative Brand Equity Measurement?”

Peter Winters, April 2011

The main story to our BHBIA 2007 paper

Challenge:

“I had been tasked with quantitatively measuring the brand equity of one of the companies biggest brands and its competitors. Previous quantitative research had shown there to be no differences between the brands in the market, however, intuitively and in qualitative research, there are clear differences.” ~ Tom Hargroves, Senior Market Analyst, Novartis

Solution:

“It is possible to measure how one brand differentiates from another, but the associations, emotions and values that a respondent has to a brand is best understood within the context of their specific relationship with that brand. It is the number and strength of these relationships between doctors and pharmaceutical brands, which we believe, can be considered as a useful measure of brand equity.” ~ Peter Winters, MD, BHI Validation

Conclusion:

“Although there is still more work to be done in developing this methodology, we are confident that it is an accurate way to measure brand equity, and the results have been very useful to the marketing team” ~ Tom Hargroves, Senior Market Analyst, Novartis

Theoretical inspirations to our BHBIA 2007 paper

Brands as Relationships

“It should be remembered that, when researching brands, it is extremely important to make a distinction between the users and non-users of a brand”

~ Giep Franzen, Margot Bouwman, The Mental World of Brands, (2001) Final Reflections, p.437

“Brand-Feeling seems to reflect the long-term brand-person relationship that has been built up historically. … These feelings encapsulates the relationship and determine brand choice. This is what ultimately translates into brand equity. Brand-Feeling emerges as a large and stable brand resource that is, in general, only slowly influenced by advertising and other day-to-day marketing activities.”

~ Spike Cramphorn, How to Use Advertising to Build Brands: In Search of the Philosopher’s Stone, Add+Impact International, IJMR, Vol. 48, No. 3, 2006

Universal Needs Map

The theory of the Universal Needs Map comes from ‘Brands Laid Bare’, (2005) by Kevin Ford (Ipsos)

And now to the charts we used at BHBIA 2007 …

Noah Built the Ark Before the Flood; Can We Apply His

Climatic Prescience to Quantitative Brand Equity

Measurement?

Peter Winters Tom Hargroves

BHBIA Conference, April 2007

In a Nutshell

Solution:

Innovative methodology using qualitative-style enabling techniques and brand-sensitive analysis

Situation:

Previous quantitative and qualitative research did not agree in terms of brand differentiation / equity for ARB/AIIA drugs

Challenge:

How to track brand equity, regularly, cost effectively, and accurately on the internet

Branding: Past, Present and Future

Nowadays consumers are bombarded with brands

Importance of being a memorable and well differentiated brand is paramount

“In the twenty-first century, branding ultimately will be the only unique differentiator between companies. Brand equity is now a key asset”

http://creative.gettyimages.com/source/Search/9','9','1','

Brand Equity…..it’s a Relationship

“the sum total of learning's about the brand by all stakeholders…It includes all that people feel and think about the brand as a result of direct experience, word of mouth and moments-of-truth with the brand and the brand marketing activities” (Tim Ambler, 2000)

Positive Brand equity drives profit through;

- Commanding price premium

- Allowing for brand extensions

- Protection from generic competition

- Obtaining and retaining loyal customers

The Power of the Brand….

NHS Increasingly Cost-Sensitive

“Angiotensin-II receptor antagonists (AIIRAs) are newer, more expensive drugs similar in action to the older angiotensin-converting enzyme inhibitors (ACEIs) – the majority of which are now off patent and available as cheaper generic formulations. NICE guidance states that AIIRAs should only be used for patients intolerant of ACEIs” (DoH)

“we identified over £500 million of expenditure in 2005 that could have been put to more cost effective uses.”

(OFT report)

0

5

10

15

20

25

2006 2007 2008 2009 2010

CO

NS

TA

NT

US

$ B

NHigh Global Patent Losses ($72bn 2007-2010)

Value of products at risk 2006-2010

$22bn$23bn

Source: IMS MIDAS, MAT Dec 2005 New Market Segmentation Feature

$16bn$15bn

$19bn

14

2418 19 19

15 14 1521

29

3721

25 2217

2116

715

8

5

22

0

10

20

30

40

50

60

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006(F)

2007(F)

NC

E L

AU

NC

HE

S

Specialty Initiated PC InitiatedSource: MI Team Analysis October 2006

Fewer Global NCEs, so Maximising In-Line Brands and New Launches is a Priority

The importance of strong brand equity is acutely important and set to become even more important because;

- Pharmaceutical drugs are competing in an ever increasingly cost conscious NHS

- Strong brand equity can help obtain and retain loyal customers

- Protecting off patent business is worthwhile

- Declining number of NCE’s being brought to market

The Climate is Getting Hotter

http://images.google.co.uk/imgres?imgurl=http://www.cse.ohio-state.edu/~vargase/hell%27s%2520flames.jpg&imgrefurl=http://www.cse.ohio-state.edu/~vargase/%3FM%3DA&h=1024&w=1365&sz=133&hl=en&start=1&tbnid=zcuZPL34_RMXHM:&tbnh=113&tbnw=150&prev=/images%3Fq%3Dflames%26gbv%3D2%26ndsp%3D20%26svnum%3D10%26hl%3Den%26sa%3DN












The Role of Neuroscience, or“People aren’t Computers”

Going Beyond Words…

Base: All respondents, 53

Traditional Brand Equity Research:

Q. Please choose the characteristic that best describes product X?

Old-fashionedCapableEffectiveNothing newBoringPractical

New Enabling Techniques

Q. Please select an Archetypal role that works as a metaphor for product X?

Carer

Core values

Source : BHI ARB study 2006

CarerHealer

Relevance of Metaphors in ARB/AIIA Market


Key:Core values – 65%+Differentiating values – 20-64%Irrelevant values – under 20%% of all GPs who mention each archetypes with respect to Amias, Aprovel, Cozaar and/or Diovan


Core values

Knight

Differentiating values

Manager

Scientist

Caretaker

Organiser

StatisticianStrongman

Fireman Policeman

Runner

Teacher

Prophet / Visionary


CarerHealer






CarerHealer

Knight

Truck Driver

Exterminator

Core values

Differentiating values

Irrelevant values

Manager

Scientist

Caretaker

Organiser

StatisticianStrongman

Fireman Policeman

Runner

Teacher

Prophet / Visionary

Irrelevant values


Attached

(26)

Not attache

d

(27)

Attached

(27)

Not attache

d

(26)

Attached

(29)

Not attache

d

(24)

Attached

(17)

Not attache

d

(36)

13%8%13%11%12%10%11%9%Average of other archetypes

38%19%33%15%41%33%41%31%Healer

31%19%30%19%48%13%65%42%Carer

Drug ZDrug YDrug XDrug W

Brand-Experience Leads to More Emotionally Relevant Role for a Brand


Definition:“Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients

Brand Rooms

Source : Novartis ARB study 2006

Wood-panelling

Unclear / grey

Paradise

Attached

(46)

Not attache

d

(74)

Attached

(31)

Not attache

d

(89)

Attached

(32)

Not attache

d

(88)

20%7%23%3%25%7%Paradise, butterflies, waterfall

39%32%52%39%38%23%Wood panelling, fireplace, traditional

0%11%0%25%0%24%Unclear and Grey

Drug NDrug MDrug L

An Unclear/Grey Brand Room is All About the GP’s Relationship (or lack of!) with the Brand

Definition:“Attached” are those who use a drug regularly or most often Source : Novartis ARB study 2006

1

2

34

5

6 7

8

9

10

11

12

13

Drug Q Drug P

Drug S

14 Drug R

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

-1.5 -1 -0.5 0 0.5 1 1.5

Dimension 1 (54% inertia)

Dim

ensi

on

2 (

32%

iner

tia)

Correspondence Analysis amongst those Attached to each Brand: Universal Needs Map

Base sizes: Attached toeach drug (sample from 17 to 29)

Structure

Curiosity

Harmony

StabilityPracticality

Excitement

Challenge Closeness

Self-Expression

Liberty

Love

Ideals



1

2

34

5

6 7

8

9

10

11

12

13

Drug Q Drug P

Drug S

14 Drug R

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

-1.5 -1 -0.5 0 0.5 1 1.5

Dimension 1 (54% inertia)

Dim

ensi

on

2 (

32%

iner

tia)

Correspondence Analysis amongst those Attached to each Brand: Universal Needs Map

Base sizes: Attached toeach drug (sample from 17 to 29)



Structure

Curiosity

Harmony

StabilityPracticality

Excitement

Challenge Closeness

Self-Expression

Liberty

Love

Ideals

% of respondents

Not attached to any ARBs, 11%

Attached to at least one ARB,

89%

Majority of GPs are in Relationships with ARB/AIIAs

Base: All Respondents (53)



GP Relationship with your Brand And how strong is that relationship?

Married Attached to you (& maybe one other)

Polygamous Attached to you & many others

A bit on the side Attached to others & uses you

Casual Not attached to any & uses

you

No relationship Non-user of your brandDefinition:“Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients

Drug HSegmentation & Strength of Brand-Feeling

% of respondents

A bit on the side, 30%

No relationship, 30% Married, 13%

Polygamous, 19%

Casual, 8%

Base: All Respondents (53)

Brand-FeelingMean score

of how much

would miss (1 to 7)

4.7

1.7

3.2

2.7

5.9Attached to other ARB, 26%

User of other ARB, 4%

Celebate, 0%


4

4.5

5

5.5

6

6.5

7

0% 5% 10% 15% 20% 25%

Brand Equity: Some marriages are stronger than others ..

Key Target Penetration (% married to your brand)

Brand-Feeling (mean score of how much would miss amongst those married to each brand)

Increased Brand Equity

Source : BHI ARB study 2006Base sizes: Married to ..Drug H (7)Drug I (11)Drug J (9)Drug K (8)

Despite small sample sizes, there is a statistically significant difference between Drug K and Drug I in terms of Brand-Feeling (and at 90% confidence between Drug K and Drug H, and Drug K and Drug J)

Drug HDrug IDrug J

Drug K

Main Take-Away Points

Measuring brand equity is about measuring the relationships your target audience has with your brand

Understanding the associations, emotions and values of a respondent to your brand is best understood in the context of their specific relationship with your brand

Strong relationships have momentum; measuring these relationships can help us forecast, and manage, the future

Answering the Question!

Noah Built the Ark Before the Flood; Can We Apply His Climatic Prescience to Quantitative

Brand Equity Measurement?

Brand Equity Measurement Can Give Us A Glimpse of The Future & Building Strong Brands Can Help Us Ride The Waves

Coincidence?

Product with highest brand equity

Price premium?

Brand extensions?

Brand protection from patent loss? N/A

Obtaining and retaining loyal customers?

2007 bhbia brand equity hargroves winters intro 2011

Health & Medicine

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