BRANDING IN PHARMACEUTICALS: INTERNATIONAL EXPERIENCE AND KAZAKHSTAN REALITY

ABSTRACT

Branding is an art, and therefore, for the creative formation of a high-quality brand, not only investments of time, effort and finances, but also talent are necessary. This topic has become interesting to consider due to the fact that in the modern world branding acts as a key factor contributing to differentiation and establishing relationships with consumers, which is of particular importance for companies in the pharmaceutical sector. In this industry, the ability to create a strong brand has a profound impact on the perception of medicines among the population, stimulating their interest. This article will review the international branding experience in pharmaceuticals and analyze the branding situation in Kazakhstan.

It is also important to emphasize that the level of awareness about the company is a critical indicator that requires constant attention. It is not enough to limit ourselves to the development of corporate identity, packaging and logo. The process of brand implementation and promotion requires continuous monitoring of metrics, evaluation of the effectiveness of advertising and marketing campaigns, as well as optimization of the growth and development strategy of the organization. Ignoring the basic methods aimed at attracting attention to the company's brand can lead to a decrease in sales of pharmaceutical products or even their complete absence, as well as the transition of consumers to competing companies and drugs.

In this article, the main purpose was to study the experience and opportunities of branding in the pharmaceutical industry of different countries.

The tasks when writing the work were the following:

The study of the general characteristics of branding, the study of its importance and ways to promote brands;

Analysis of international experience and comparison of the situation in the pharmaceutical market of Kazakhstan.

When writing the article, the methodological basis was scientific works, publications of special literature, articles from international exhibitions.

АННОТАЦИЯ

Брендирование представляет собой искусство, и поэтому для творческого формирования качественного бренда необходимы не только вложения времени, усилий и финансов, но и талант. Данная тема стала интересной к рассмотрению в связи с тем, что в современном мире брендирование выступает в роли ключевого фактора, способствующего дифференциации и установлению взаимосвязи с потребителями, что имеет особенное значение для компаний в фармацевтической сфере. В данной индустрии умение создать прочный бренд оказывает глубокое влияние на восприятие медикаментов среди населения, стимулируя их интерес. В данной статье будет рассмотрен международный опыт брендирования в фармацевтике и анализ ситуации брендирования в Казахстане.

 Важно также подчеркнуть, что уровень осведомленности о компании представляет собой критически важный показатель, который требует постоянного внимания. Недостаточно ограничиться лишь разработкой корпоративного стиля, упаковки и логотипа. Процесс внедрения и продвижения бренда требует непрерывного мониторинга метрик, оценки результативности рекламных и маркетинговых кампаний, а также оптимизации стратегии роста и развития организации. Игнорирование базовых методов, направленных на привлечение внимания к бренду компании, может привести к снижению объемов продаж фармацевтических товаров или даже полному их отсутствию, а также переходу потребителей к конкурирующим компаниям и препаратам.

В данной статье основной целью являлось исследования опыта и возможностей брендирования в фармацевтике разных стран.

Задачами при написании работы стали следующие:

Исследование общей характеристики брендирования, изучение его важности и способов продвижения брендов;

Анализ международного опыта и сравнение ситуации на фармацевтическом рынке Казахстана.

При написании статьи методологической базой выступали научные труды, публикации специальной литературы, статьи из международных выставок.

Keywords: pharmaceuticals, branding, pharmaceutical products branding, branding methods, international branding experience, branding in Kazakhstan.

Ключевые слова: фармацевтика, брендирование, брендирование фармацевтических средств, способы брендирования, международный опыт брендирования, брендирование в Казахстане.

Introduction

To develop an effective brand promotion strategy, it is essential to conduct an in-depth analysis of the current pharmaceutical market landscape and thoroughly grasp the concept of branding. In the modern stage of economic development, numerous major brands encounter the phenomenon of value deflation. This situation is attributed to the deceleration of GDP growth in countries with developed market economies. Such a phenomenon influences consumer sentiment as individuals, concerned about income instability, become more cautious in their expenditures and start accumulating funds. Consequently, demand diminishes, leading to decreased sales volumes and reduced business profitability. It's worth noting that this phenomenon affects essential goods sectors to a lesser extent, including the pharmaceutical industry.

Over time, consumers develop a certain brand perception. Among positive brand attitudes, three levels can be distinguished:

• Recognition: Consumers are familiar with the product, making it more likely for them to purchase it.
• Preference: If the product is available, consumers buy it out of habit; however, if the product is unavailable, they opt for alternative options.
• Brand loyalty: In the absence of the product, consumers reject alternatives and continue their search for the specific item.

The ultimate goal of any company striving for success is to establish a profound level of brand-consumer relationship. Strong brand loyalty relies heavily on the quality of the offered product. Consumers associate the brand with specific product attributes that fully satisfy their needs. This is why brand advertising emphasizes these unique qualities. For example, if an advertisement for a medicinal product highlights fast pain relief, pleasant taste, safety, and ease of use, the consumer acquires not only the product but also a unique combination of these characteristics [1].

Leading global pharmaceutical companies have long recognized the importance of branding for achieving competitive advantages. However, this domain comes with its own specifics tied to ethical norms, regulations, and patient safety. World pharmaceutical brand names aim to create recognizable and trusted images associated with reliability and safety. This is especially relevant for drugs intended to treat serious illnesses. An important aspect of branding in this domain is patient education and information provision to enable informed decisions about their health.

In Kazakhstan, the pharmaceutical sector is also exploring new opportunities for more active adoption of branding practices. Nonetheless, there are several factors limiting the full application of global methods. The first significant aspect is the complexity of advertising medical products. Regulation in this field is extremely strict, driven by the desire to protect consumers from misinformation or inaccurate information. This effectively means that companies need to exercise special caution in shaping advertising strategies and creating informational materials.

The second crucial factor is the unique cultural perception of health and medicine in Kazakhstan. Often, citizens rely on the opinions of doctors and personal experiences rather than advertising influences when choosing medications. This implies that branding strategies should focus on education and trust-building rather than flashy exteriors. Thus, in the context of Kazakhstan, pharmaceutical branding is influenced by several factors requiring unique approaches and adaptations to achieve effectiveness and consumer recognition.

1. The Role of Branding

The segment of branded generics is well-developed. However, the current market is undergoing a paradigm shift, compelling pharmaceutical companies to reconsider their business strategies and existing drug design. Hence, it is particularly crucial for pharma brands to possess a distinctive identity that stands out on crowded pharmacy shelves and is easily verbalized. Why introduce verbalization potential into pharmaceutical product design? The reason is that if a customer happens to forget the product name but remembers distinctive details like an orange package with a large blue triangle in the center, they can describe what they are looking for independently. For instance, if someone needs a sore throat medication, they might not recall the name, but they'll remember that there was a scarf, helping them choose the right medication (Fig. 1).

Figure 1. Example of drug branding

The task of proper design is to ensure recognition occurs after the initial encounter with any product from that brand. This is achieved by highlighting the corporate brand and creating an identity that distinguishes and communicates its uniqueness [2].

Figure 2. An example of corporate branding of medicines

2. Status and Challenges in Branding Development in Kazakhstan

The development of commercial brands is increasingly vital in transmitting and affirming national culture. Today, brands are actively employed to shape perceptions of national identity in the eyes of consumers, making them essential tools of cultural communication.

Effectively establishing a national brand identity adds significant value. National branding encompasses much more than simply affixing a "Made in..." label to a product. A product's origin from a specific country is a significant branding aspect that can sometimes outweigh the brand's reputation. The link between the country-of-origin effect and a company's market viability has been known for a while. However, in contemporary conditions, national identity becomes even more crucial.

Prominent flagship brands can also contribute to shaping a country's reputation. Despite the absence of such flagship brands in Kazakhstan and the fact that Kazakhstani companies have yet to occupy potentially promising niches—partially due to the country's young business landscape and the dominance of raw material and extraction companies in the economy—this approach to national branding through flagship brands doesn't always lead to a deep understanding of national culture. Intense international competition and limited awareness of Kazakhstan and its products beyond its borders make a focus on product and company branding especially important, considering the dynamic nature of the market. Despite its current developmental stage, Kazakhstan lacks an effective system to support the branding of Kazakhstani goods. Nonetheless, many Kazakhstani companies aim to become leaders in their segments.

Evidence of this is seen in the 28th Kazakhstan International Healthcare Exhibition (KIHE) held in Almaty from May 17 to 19, 2023. The conference "Pharmaceutical Industry of the Republic of Kazakhstan: Realities and Opportunities," conducted during the exhibition, brought together government representatives, businesses, and the pharmaceutical community to discuss the current state of the national and global pharmaceutical market, healthcare issues, and ways to address them.

Analyzing the state of the pharmaceutical market in Kazakhstan, V.N. Lokshin highlighted significant achievements over the past decade: a 20.1% increase in the state budget for medication provision in 2022 compared to 2021, expansion of the orphan drug list from 92 to 162, and a savings of 192.6 billion tenge through centralized procurement. However, alongside these positive aspects, a number of pressing issues remain unresolved, such as the long-term integration of innovative drugs into the market, price regulation of OTC drugs, legislative volatility, an underdeveloped patent protection system, logistical challenges, registration difficulties, and overseas product awareness.

The Kazakhstani pharmaceutical industry exhibits a clear and transparent hierarchy of processes in the drug circulation sphere, starting from drug registration to dispensing to patients. Thanks to effective state support, the industry has significant potential for attractive investments. Today's success is reflected in the gradual increase in the number of organizations provided by TOO "SK-Pharmatsiya." Domestic producers are also consolidating their positions, and the share of local producers in the country's pharmaceutical market structure approaches 16% in monetary terms. Nonetheless, foreign manufacturers remain influential in the market.

O.V. Sermukhamedova, the director of TOO "FitOleum," emphasized the prospects of the herbal medicine market in Kazakhstan. The global herbal medicine market is growing, reaching 95 billion USD in 2017. Kazakhstan has significant potential in the field of herbal products, yet only a small portion of this diversity is utilized. Despite this, some companies, such as TOO "FitOleum," have achieved global success by developing a complete-cycle production and gaining recognition in different countries.

Thus, the importance of branding in the development of the pharmaceutical industry in Kazakhstan can be noted, which in turn demonstrated not only positive trends but also a range of challenges requiring comprehensive solutions and continued support for further development [3,4].

3. International Branding Experience

Wood Worldwide, a company dedicated to creating brands exclusively for the pharmaceutical market, identifies three stages that drug names have gone through:

• Scientific and medical connotations (Lomotil);
• Sci-fi names from the future (Xanax);
• Lifestyle-oriented names (Claritin).

For instance, the medication "Theraflu" represents one of the most recognizable acetaminophen brands in the market. Its name is characterized by expressiveness, the packaging design attracts attention, and a well-thought-out advertising strategy is evident. As part of a recent advertising initiative, thermal scanner-equipped screens were installed on the streets of Warsaw, serving as innovative tools for detecting cold symptoms. Special visors scanned passersby, instantly displaying their body temperature: whether it was normal or elevated. If an elevated temperature was detected, there was a risk of illness or possibly an already ongoing illness. Participants in the check were encouraged to share their results on Twitter or Instagram with the hashtag #TherafluThermoscanner.

Figure 3. The method of advertising "Teraflu"

Another form of branding involves using unique tablet forms for individualization. Unconventional tablet shapes, such as tablets on sticks, soft gel forms, and other non-traditional variations, give medications distinct recognition. A wide range of shapes, from round to capsule-shaped, as well as oval and polygonal, creates interest and increases customer loyalty to the product. For example, a Prague creative agency designed a boldly distinctive blister packaging for Clavin Ultra, a supplement to enhance male potency. The capsule's shape, protruding from the blister, visually indicates the supplement's purpose and the expected outcome.

An additional method of recognition is engraving the drug's name directly on the tablet. This not only adds uniqueness but also helps prevent counterfeiting. Since packaging remains a key means of differentiation from competitors, its main task is to remain memorable. The design of the vitamin-mineral complex products for reproductive health, "Spematon" and "Pregnaton," is such that they complement each other, forming a cohesive visual presentation.

In conclusion, it can be deduced that branding in the pharmaceutical industry aims to establish precise standards, from technical production aspects to information delivery methods. These standards play an essential role in drug branding, especially given the strictness of the pharmaceutical market [5].

Conclusion

In conclusion, both the pharmaceutical industry in Kazakhstan and on a global scale have recognized the unique aspects of branding. Global experience demonstrates that branding can enhance patient trust in medical preparations and facilitate decision-making. Presently, Kazakhstan is a newly developing economy where branding plays a crucial role. Utilizing branding potential enables competition on the global market, even despite limited influence and the absence of extensive economic, military, or political resources. Today, Kazakhstan holds a prominent position in the CIS in terms of economic development. Nevertheless, for pharmaceutical branding in Kazakhstan, regulatory and cultural factors should be considered when developing branding strategies.

Prior to branding, it's important to identify the target audience and marketing goals. By studying consumers and their interaction with products, one can select the most effective methods to enhance brand recognition, such as content creation, SEO, targeted and contextual advertising, and more.

The most popular methods include:

• Direct marketing: Engaging with the audience through email, SMS, push notifications, and messengers. Informing customers about ongoing promotions, offers, new products, and services.
• Contests and giveaways: Organizing events online or offline using social media platforms and points of sale.
• Loyalty programs: Offering gifts and bonuses to loyal customers. Sharing emotions that are more memorable than any purchase.
• Influencers: Enlisting bloggers, well-known personalities, and experts to influence the audience through individuals consumers are interested in.
• Above-the-line (ATL) communications: Publishing company news in the media, utilizing radio, television, and outdoor advertising to remain consistently visible.
• Gamification and interactive content: Increasing conversion rates by interacting and communicating with the audience. Engaging customers not only in purchasing but also in the story of your brand.

References:

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