The pharmaceutical industry's reputation has declined dramatically over the years (see chart on left showing Harris Interactive survey of 1,000 registered voters).
Pucci believes the industry has just sat back and "taken it" and like the frog sitting in a tepid pot of water slowly being heated, the industry has acclimated itself to the increasing heat of negative publicity.
The pharma industry, says Pucci, needs to recognize that the climate around it is changing and it better get out of the pot!
"The consequences of having a reputation nearly as bad as the tobacco industry," says Pucci, "are threefold:
In this case, however, I agree with the main tenet of Mr. Pucci's strategy -- engage employees to spread the word by talking positively, sharing what they are doing, and explaining the value. Pucci even agreed with my suggestion that pharma should sponsor blogs written by employees.
As I have said before (see, for example, "Who Should Pay for Merck's Obstructionism?" and "Vagelos Speaks. Will Pharma Listen?"), when pharma or other companies lose the public's trust not only do the shareholders suffer, but the employees also suffer.
GlaxoSmithKline, under Pucci's leadership I assume, has been doing a good job using their employees as spokespeople. TV ads feature GSK scientists, for example. Scientists are good pharma spokespeople. They are usually dedicated to doing good, which comes across as a genuine characteristic in the ads, and they represent the image that big pharma wants to promote -- i.e., that they are research based.
This national media campaign, however, is just one leg of Mr. Pucci's and GSK's strategy for the company's "Value of Medicine Campaign." The other legs are:
- A grassroots campaign using the sales force and medical & executive speakers
- WebMD Collaboration
The key messages of the campaign are the familiar ones heard from other pharma execs (e.g., see "A Call to Action: A Mea Non Culpa by Big Pharma"):
- Today's miracle drugs finance tomorrow's breakthroughs.
- Prescription drugs help us all live longer, better and more productive lives.
- Pharmaceutical therapy in chronic disease treatment is the best value in healthcare delivery.
- The pharmaceutical industry cares about people who can't afford their medicine.
Anyway, for me, the real story is the tactics GSK is employing to get these messages across:
- Regional Medical Scientists target medical and pharmacy schools
- Sales force targets friends, family, neighbors, community organizations, local politicians and HCPs
- Value of Medicine champions target state conventions and health care symposiums and train local sales representatives on messaging
- Trade organization targets distribution channel
- Employer group targets local and national business groups on health and employee benefit managers of major companies
- Reputation committee formed to coordinate and purchase national media spots in all US markets
- Executive VP available to speak nationwide
- WebMD contracted to create Value of Medicine website with links to patient assistance and disease management programs
Side Benefit: Boost to Employee Morale
Pucci' s call to action is to entice other pharma companies to copy GSK's campaign and he encourages them to copy the messaging and tactics. So far, Pfizer and Eli Lilly have taken him up on his offer. Interestingly, Lilly did so primarily to boost the morale of its employees.
Role of PhRMA
A couple of members of the PHARMA-MKTING Online Discussion Group suggested that PhRMA should get involved. Terry Nugent, for example, stated "I commend GSK, but where is PhRMA? Each company continues to do its own thing. The divided are conquered."
Ann Poorboy had this to say: "Individual pharma companies have long touted their "citizenship" efforts and their helpful attitudes towards ensuring all patients receive quality care. But the industry must come together. If PhRMA isn't working to improve the condition of industry, have they met their objective?"
The main advantage of GSK's strategy -- the use of credible EMPLOYEES to get the messages across in a grassroots campaign -- cannot be directly exploited by PhRMA.
Pucci included a slide (see CHART below) that showed that the credibility of corporate communications (communications issued by companies, company website, or CEOs and CFOs) was very low among US consumers (only 11% cited CEOs as credible sources of information) compared to colleagues, friends and family, and regular employees (25% cited regular employees as credible sources). [Source: Pharmaceutical Executive Magazine, April 2003.]
Communications from PhRMA are probably even less credible than from company CEOs! However, PhRMA could and probably should "orchestrate the activities of all the companies" as Terry suggests. "whatever the strategy," Terry says, "all the companies need to act in concert to maximize effectiveness. It's PhRMA's job to orchestrate that -- or it shoud be, in my opinion."
OK. Either that or one company such as Glaxo can take the lead and orchestrate it. What's the difference? As long as it's done right.
Another idea suggested by Terry was to use celebrities like Oprah Winfrey. I don't think this is a good tactic, even though celebrities probably are very credible sources of information among consumers. I am not sure how well it would work, especially if the celebrity revealed that PhRMA was paying her to deliver messages concocted by the pharmaceutical industry. And if the celebrity does not reveal the financial ties, that would be even worse -- it's bound to come out sooner or later! For more on this topic, see "Celebrities & Buzz Revisited".