Slides used in pharmaceutical brand equity paper presented at BHBIA 2007, by Tom Hargroves, Novartis and Peter Winters, BHI

1. Noah Built the Ark Before the Flood; Can We Apply His Climatic Prescience to Quantitative Brand Equity Measurement? Tom Hargroves Peter Winters BHBIA Conference, April 2007

3. 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

4. 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

5. 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” ~ GiepFranzen, 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)

6. And now to the charts we used at BHBIA 2007 …

7. Noah Built the Ark Before the Flood; Can We Apply His Climatic Prescience to Quantitative Brand Equity Measurement? Tom Hargroves Peter Winters BHBIA Conference, April 2007

8. In a Nutshell 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 Solution: Innovative methodology using qualitative-style enabling techniques and brand-sensitive analysis

9. 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”

10. 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

11. The Power of the Brand….

12. 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)

13. High Global Patent Losses ($72bn 2007-2010) Value of products at risk 2006-2010 $22bn $23bn $19bn $16bn $15bn Source: IMS MIDAS, MAT Dec 2005 New Market Segmentation Feature

14. Fewer Global NCEs, so Maximising In-Line Brands and New Launches is a Priority Source: MI Team Analysis October 2006

16. Strong brand equity can help obtain and retain loyal customers

17. Protecting off patent business is worthwhile

19. Going Beyond Words… New Enabling TechniquesQ. Please select an Archetypal role that works as a metaphor for product X? Traditional Brand Equity Research:Q. Please choose the characteristic that best describes product X?Old-fashionedCapableEffectiveNothing newBoringPractical Base: All respondents, 53 Carer

20. Relevance of Metaphors in ARB/AIIA Market Core values Healer Carer 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 Base: All respondents, 53 Source : BHI ARB study 2006

21. Relevance of Metaphors in ARB/AIIA Market Caretaker Fireman Runner Manager Organiser Policeman Scientist Prophet / Visionary Statistician Teacher Strongman Knight Differentiating values Core values Healer Carer 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 Base: All respondents, 53 Source : BHI ARB study 2006

22. Relevance of Metaphors in ARB/AIIA Market Caretaker Fireman Runner Manager Organiser Policeman Scientist Truck Driver Exterminator Prophet / Visionary Statistician Teacher Strongman Knight Differentiating values Irrelevant values Irrelevant values Core values Healer Carer 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 Base: All respondents, 53 Source : BHI ARB study 2006

23. Brand-Experience Leads to More Emotionally Relevant Role for a Brand Drug Z Drug Y Drug X Drug W Attached (26) Attached (27) Attached (29) Attached (17) Not attached (27) Not attached (26) Not attached (24) Not attached (36) 31% 19% 30% 19% 48% 13% 65% 42% Carer 38% 19% 33% 15% 41% 33% 41% 31% Healer 13% 8% 13% 11% 12% 10% 11% 9% Average of other archetypes Definition: “Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients Source : BHI ARB study 2006

24. Brand Rooms Paradise Unclear / grey Wood-panelling Source : Novartis ARB study 2006

25. Drug N Drug M Drug L Attached (32) Attached (46) Attached (31) Not attached (88) Not attached (74) Not attached (89) 0% 11% 0% 25% 0% 24% Unclear and Grey 39% 32% 52% 39% 38% 23% Wood panelling, fireplace, traditional 20% 7% 23% 3% 25% 7% Paradise, butterflies, waterfall 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

26. Correspondence Analysis amongst those Attached to each Brand: Universal Needs Map Curiosity Ideals Liberty Harmony Excitement Self- Expression Love Challenge Closeness Structure Stability Practicality Base sizes: Attached to each drug (sample from 17 to 29) Definition: “Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients Source : BHI ARB study 2006

27. Correspondence Analysis amongst those Attached to each Brand: Universal Needs Map Curiosity Ideals Liberty Harmony Excitement Self- Expression Love Challenge Closeness Structure Stability Practicality Base sizes: Attached to each drug (sample from 17 to 29) Definition: “Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients Source : BHI ARB study 2006

28. Majority of GPs are in Relationships with ARB/AIIAs Base: All Respondents (53) Definition: “Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients Source : BHI ARB study 2006

30. Polygamous Attached to you & many others

31. A bit on the side Attached to others & uses you

32. Casual Not attached to any & uses you

33. No relationship Non-user of your brandGP Relationship with your Brand And howstrong is that relationship? Definition: “Attached” are those who use a drug, and perceive that it has (at least) real benefits for some of their patients

34. Drug HSegmentation & Strength of Brand-Feeling Brand-Feeling Mean score of how much would miss (1 to 7) 5.9 1.7 4.7 3.2 2.7 Attached to other ARB, 26% User of other ARB, 4% Celebate, 0% Base: All Respondents (53) Source : BHI ARB study 2006

35. Brand Equity: Some marriages are stronger than others .. Drug I Drug H Drug J Brand-Feeling (mean score of how much would miss amongst those married to each brand) Drug K Increased Brand Equity Key Target Penetration (% married to your brand) Base sizes: Married to .. Drug H (7) Drug I (11) Drug J (9) Drug K (8) Source : BHI ARB study 2006 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)

36. 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

37. 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

38. Coincidence?

39. Coincidence?

40. Coincidence?