Marketing and Branding Strategies for Lipitor by Pfizer

Introduction

Target markets, branding, marketing strategy, execution, and product positioning all directly contribute to the market share and profitability of a product. In the marketing and selling of healthcare-related products, brands must communicate a viable and realistic solution to a patient's condition in order to be seen with credibility and trust (Angelmar, Angelmar, & Kane, 2007). The intent of this analysis is to evaluate the marketing strategies of Lipitor, a best-selling drug of Pfizer Corporation used for treating high cholesterol and its related heart disease effects. This drug generated $10.7 billion in the company's latest fiscal year according to their annual report and is also considered one of the top-selling drugs throughout the entire pharmaceutical industry. Beginning with an analysis of the Lipitor target market and progressing through their branding strategies, analysis of product success, and recommendations for future marketing strategies, this paper provides a framework for understanding the Lipitor brand and managing it to success in the future.

Lipitor Target Market Analysis

A target market is defined as a group of potential customers on whom a business concentrates its efforts to sell products and services, using a wide variety of techniques to attract, sell to, and serve them. In the healthcare products and services industries, target markets can be comprised of people with specific medical conditions (Angelmar, Angelmar, & Kane, 2007) or identified through the use of demographics and psychographics — the study of how consumers group themselves by common interests (Leeflang & Wieringa, 2010). Target markets rarely stay the same throughout the lifecycle of a given product, often changing both in structure and in unmet needs. Target markets also frequently change how they choose to learn about products, which translates into a continual challenge for marketers to stay current on how prospective customers prefer to access and use product information (Krion & Shockley, 2011).

The target market for Lipitor was analyzed using Quantcast.com, an online analytics service that translates clickstream data and site visits into demographic profiles (Raab, 2011). The majority of Lipitor customers are women over 50 years of age, most of whom are Caucasian, have no children, earn less than $30,000 per year, and do not hold college degrees.

Lipitor's primary target market was specifically chosen because of these consumers' conditions of high blood pressure and cholesterol levels deemed harmful by their physicians. Because Lipitor is prescribed by physicians and monitored as part of treatment programs, Pfizer had to create an exceptionally strong brand to motivate members of the target market to specifically request this drug. Studies have shown that physicians in 70% of cases will recommend a drug that has an incentive associated with it — such as free samples, volume price breaks, or other programs drug companies use to sway recommendations (Black, 2005). This is why branding is so critical for reaching the target market, not only for Lipitor but for all Pfizer products. The same study found that physicians successfully changed patients' preferred drug choices only 15% of the time, which underscores just how powerful branding is in establishing customer loyalty and lifetime customer value (Black, 2005). In selecting this target market, Pfizer determined through clickstream analysis that these women are key influencers over their families and friends, meaning that every dollar spent communicating with them would have a multiplicative effect (Krion & Shockley, 2011).

This strategy of defining a target market also illustrates how decisions about which market to pursue must be balanced with an understanding of key influencers and sources of word-of-mouth recommendation (Angelmar, Angelmar, & Kane, 2007). It is not enough to define a target market using demographics, psychographics, or — in the case of healthcare products — health conditions alone. Marketers must also identify who the influencers are within the target market, how their trust can be earned and maintained, and how to create the right foundation for their ongoing endorsement of the brand. This approach to selecting and managing a target market is further predicated on the relative growth of sales over time, with the potential to correspondingly increase product revenues. All of these factors must be taken into account when selecting and managing a target market.

Analyzing the Lipitor Brand

A brand is, by definition, the name, symbols, graphics, imagery, and key messages that distinguish and differentiate one product or service from another — the unique identity and persona of a given offering. The most powerful aspect of healthcare and pharmaceutical brands is the potential to serve as a trusted source and advisor for alleviating the conditions and medical challenges patients face (Griffiths, 2008). Of all industries, healthcare and pharmaceutical companies encounter the greatest challenge in winning and retaining customer trust while also continually expanding their product portfolios (Black, 2005).

The Lipitor brand is the best-known cholesterol treatment drug globally, and its branding messages concentrate on being a trusted advisor of information on preventing and treating heart disease. Lipitor's messaging and marketing focus on the preventative aspects of care, providing valuable content on how to reduce major heart disease risk and lower cholesterol through activity and exercise. True to the goal of being a trusted advisor, Lipitor dedicates nearly 30% of its website and online properties to the detection and prevention of heart disease. The direct selling message is framed as a recommendation for the patient to ask their doctor about Lipitor. There are also many downloadable assessments and documents available to the public that demonstrate the value of a healthy lifestyle. All of these elements are used to communicate and reinforce the brand's role as a trusted advisor, with messaging that is subdued and serious in tone, focused on establishing credibility.

The branding resonates with the target market because these women influence their husbands and others in their demographic group to try the drug and remain loyal to it. This is clearly evidenced by the $10.7 billion in annual sales the drug generates, as reported in the Pfizer annual report. The images Pfizer uses to promote the brand further emphasize personal health responsibility, often depicting men and women over 50 enjoying sports activities together. A recent Lipitor television commercial reinforces this message: no matter what you look like on the outside, it is your cholesterol that matters most.