New Data Shows What it Will Take for Pharma Giants to Soar Post-Covid
Throughout the pandemic, as people across the world have experienced unprecedented upheaval, the way they perceive many corporations has undergone rapid change. In no other sector has this been more profound than the pharmaceutical industry. Amid devastating times of loss, sickness and fear, pharma companies have stepped up. They’ve delivered vaccines in record time, a development that has been described as a “remarkable achievement of medical science.”
This has created a transformation in the relationship between pharma companies and consumers. A year ago, Eli Lilly CEO David Ricks said the pandemic was providing a “once-in-a-generation opportunity to reset the reputation of the industry.” He was right. A recent Harris poll found that positive sentiment for the pharmaceutical industry nearly doubled from 32% in January 2020 to 62% in February of this year.
But the past year has not just reset how people think about the industry as a whole. It has reshaped how they think about individual companies as well. At M Booth Health, we call this phenomenon a “Pharma Brandemic.” It’s a time of heightened awareness and interest in pharmaceutical company brands, when consumers’ perceptions are evolving as they see the rollout of life-saving vaccines.
To find out what this means for these companies as they face the future, we surveyed people across the country. The results show there’s a rare opportunity right now for pharma brands to take the positive recognition they’re getting and build it into lasting relationships with consumers. These companies are well positioned to spark a halo effect -- a brand loyalty for any and all of their medicines. To achieve this, they’ll need to revolutionize not only how they market drugs, but also how they market themselves.
Manufacturer preference will sway medicine choices
Months of news coverage got people looking for and thinking about differences among pharma brands. Now that most Americans are getting vaccinated for Covid-19 (over 230 million doses have been administered in the United States so far), many have their own direct and very personal relationships with Pfizer, Moderna, or Johnson & Johnson. In our survey, nearly three-quarters (74%) of respondents said they now have a preference among these.
This preference does not end with Covid. It’s likely to impact which medications they take for all sorts of other medical needs in the future.
Traditionally, consumers have taken whichever medicines their doctors recommend, or generic versions when possible to save money. They’ve also responded to ads for specific drugs, the kinds with long disclaimers and encouragement to “ask your doctor” if a certain medicine “is right for you.”
But relatively few consumers have cared which manufacturer invested in the R&D that led to the development of a medication. In our survey, half of respondents told us that they have rarely or never bothered to find out. But those days are over. Now, a whopping 80% tell us that they plan to consider who the manufacturer is always, often, or at least some of the time.
They also plan to exert more effort in deciding which medicines they want their doctors to prescribe. In the survey, the majority of consumers (55%) said they now plan to ask their doctor about all of their options instead of accepting the first recommendation. So their preference for one manufacturer over another could spark seismic shifts in sales.
While this effect is strongest for the vaccine makers, it is not limited to them. Our survey found that people are becoming more aware of and educated about pharmaceutical brands in general. They now report preferences for a wide range of brands from Bayer to Eli Lilly to Novartis.
Pfizer the new Nike
In fact, consumers have developed such a strong relationship to pharma brands that nearly half (46%) told us they now want to hear from the leaders of these companies. One-in-three even said they’ve come to view these companies as similar to lifestyle brands like Nike. They want to interact directly with the brands on social platforms and get their questions answered.
To make this work, pharma companies will need to start acting more like lifestyle brands in their marketing. In addition to their reach out to doctors, pharma brands will need to engage even more creatively with consumers and build relationships with them. They’ll need to talk about what they stand for as companies. They’ll need to keep building stronger brand identities.
After more than a year of suffering through very difficult times, consumers are emboldened. They’re looking to health leaders and brands as partners in staying healthy and safe. Pharmaceutical companies that understand this and seize the opportunity will be poised for greater success -- and shareholder values -- in the years ahead.
Mark Westall is Vice President, Research and Planning for MBooth Health.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.