Pharmaceutical
Hispanic Market Weekly
December 28, 2005
For the pharmaceutical industry, Hispanics constitute a still unfamiliar segment of the market, but one in which future growth rests. To the prescription drug industry, Hispanics represent a $12.2 billion marketplace, a figure expected to more than double by 2007, according to a Global Insight study. Yet, the industry overall has done little to reach Hispanics. In 1998, following the new FDA guidelines, Schering-Plough's Claritin became the first prescription drug to be advertised in the Hispanic market. But despite indicators that Latinos are receptive to direct-to-consumer advertising, the pharmaceutical companies are putting very few marketing dollars into this group, according to a study commissioned by Telemundo and conducted last year by Cultural Access Group. Somereasons: * the industry is still learning how to reach patients as consumers, *ethnic biases and stereotyping, *low interest in learning about ethnic cultures, *and healthcare related beliefs and behaviors.On their part, in trying to reach Hispanics, pharmaceutical companies claim they face a market with little meaningful data - such as health marketing studies - and slower return on investment. Another hurdle often cited is low numbers in health insurance coverage, which makes it harder to sell any prescription drug.
Who's In?
A few pharmaceutical companies have made strides in targeting Hispanics, and multicultural marketing departments and staffing are beginning to appear. Johnson & Johnson (Ortho Biotech and Ortho-McNeil Pharmaceutical), Pfizer, Wyeth and Bayer are some of the active ones. In 2004, Pfizer was the only pharmaceutical company to appear among the top 100 advertisers in the Hispanic market. It ranked No. 39, investing $21 million (or 2.5 percent of its ad budget) on Latino consumers. However, during the first six months of 2005, Pfizer’s Hispanic media allocation was just over $6 million on television and print. GlaxoSmithKline was ranked No. 169, investing $1.7 million (about 0.3 percent of its total ad budget), according to a study conducted by The Santiago Solutions Group. But during the first six months of this year Glaxo’s buys on Latino television and print were a mere $53,300. This comes at a time when investments by drug giants such as Pfizer, GlaxoSmithKline, Merck & Co., Aventis and Novartis tops $5 billion in the non-Hispanic market. Some other pharmaceutical companies that have taken steps to directly target Hispanic consumers are Schering-Plough, Novartis, AstraZeneca and Sanofi-Aventis, which began working on a diabetes awareness campaign earlier this year after tapping The Neighborhood, the marketing and education focused firm launched by Los Angeles-based cruz/Kravetz:IDEAS.
What Are They Investing?
Together, the top pharmaceutical companies active in the Hispanic market invested over $50 million from October 2004 to September 2005 to reach Latinos. Of this total, $30 million went to television and print advertising aimed at Latinos. Here's a closer look at what the individual companies invested in the year long period beginning October 2004:
Parent Oct'04 - Sep'05
Johnson & Johnson $11,798,000
Pfizer Inc $10,095,000
Merck & Co Inc $4,291,000
Pharmaceutical Research & Mfr/America $1,666,000
Novartis Ag $1,462,000
Gilead Sciences $668,000
Sanofi-Aventis $516,000
Novo Nordisk As $363,000
Schering Ag $347,000
Glaxosmithkline Plc $241,000
Astrazeneca Plc $111,000
Eli Lilly & Co $40,000
King Pharmaceuticals Inc $9,000
Allergan Inc $6,000
Amgen Inc/Wyeth $5,000
Source: TNS Media Intelligence.
Based on Hispanic television and print
Who's Got What?
In 1997, pharmaceutical companies gained permission to market directly to consumers, instead of through doctor's offices and hospitals. Since then, many drug-makers have tapped Hispanic agencies to get the word out to Latino consumers. Here's who is working with whom:
Abbott Laboratories - cruz/kravetz:IDEAS
Astrazeneca - Edelman Public Relations
Aventis - Conill Advertising
Bayer Corporation - Aragón Advertising
Bayer Immunology - cruz/kravetz:IDEAS
Boehringer Ingleheim - WING Latino Group
Efficient Laboratories - Anthony Baradat & Associates
GlaxoSmithKline - Lopito, Ileana & Howie
GlaxoSmithKline - WING Latino Group
GlaxoSmithKline - Bromley Communications
GlaxoSmithKline - Bravo Group
GlaxoSmithKline - San José Group
Johnson & Johnson Merck - Conill Advertising
McNeil Pharmaceuticals - La Agencia de Orcí & Asociados
Novartis - Bravo Group
Novartis - Mindshare
Novartis - WING Latino Group
Novartis Consumer Health Division - CMS Partners LLC
Ortho-McNeil - HispanicWorks
Pfizer - Creative on Demand
Pfizer - Mendoza Dillon
Pfizer - VIVA Partnership
Pfizer - Dieste Harmel & Partners
Pfizer - BVK/Meka
Ross Labs - Bromley Communications
Ross Products - Bromley Communications
Taisho Pharmaceuticals - Acento
Find it. Measure it.
A special report on the Hispanic Research industry
Published: December 12, 2005
