Branding: When One is Not Enough

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Branding: When One is Not Enough

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Overview

Launching a second brand is a marketing strategy to address an unmet need distinct from the current brand. In the pharmaceutical industry there are several instances of manufacturers marketing a drug for different indications as independent brands. However, in addition to the “new brand for new indication” approach, drug manufacturers have also frequently re-launched a drug as a distinct second brand within the same indication.

As pharmaceutical companies look beyond core markets in search of growth, a second brand strategy can be a powerful means of maximizing value creation and revenue potential.

In this article we lay out five objectives that make it worthwhile to pursue a second brand strategy. We provide case studies of companies that have successfully applied the second brand strategy and also highlight potential risks that should be addressed while crafting a dual brand strategy.

The second brand

In traditional business parlance, a second brand strategy typically implies that a company introduces a new product line to address a new market segment. Examples include Levi Strauss introducing Dockers as casual-workplace apparel, Toyota competing in the luxury automotive market with Lexus, and Black & Decker launching DeWalt to serve the construction and manufacturing industry. In most cases, the new brand has a distinct value proposition (quality, functionality, etc.) that positions it above or below the existing brand, if not in a different market altogether.

Source : http://www.pharmexec.com/branding-when-one-not-enough