The Perception of Kenyan Doctors on the Various Differentiation Strategies Used by Multinationals to Build Brand Equity within the Pharmaceutical Industry

Abstract

Pharmaceuticals Industry invests large resources in Research and Development (R & D) so as to develop potential products that eventually turn to blockbusters. Unlike most other industries that enjoy a twenty- year patent period, the pharmaceutical industry enjoys a much shorter period of between 12 to 15 years. Therefore, in order to maximize their returns, most multinationals invest in brand equity so as to retain brand loyalty even way past the expiry of the patent period. Brand equity has received significant academic attention since the mid- 1990s (Elena D.B, Jose L.M., 2005 pp. 187-196). This has been driven partly by changes in international accounting standards as they relate to the reporting of the financial value of intangible assets. A more prominent driver concerns the impact of marketing, and of marketing communication activities in particular, on brand performance. This research being an exploratory study examines from the doctor's perspective the various brand differentiation strategies employed by multinational companies to develop brand equity. The study paper then reports the findings seeking to explore the synergy between differentiation strategies and brand equity in the Kenyan pharmaceutical industry.