Launching a second brand is a marketing strategy to address an unmet need distinct from the current brand. In the pharmaceutical industry there are several instances of manufacturers marketing a drug for different indications as independent brands. However, in addition to the “new brand for new indication” approach, drug manufacturers have also frequently re-launched a drug as a distinct second brand within the same indication. In traditional business parlance, a second brand strategy typically implies that a company introduces a new product line to address a new market segment. Examples include Levi Strauss introducing Dockers as casual-workplace apparel, Toyota competing in the luxury automotive market with Lexus, and Black & Decker launching DeWalt to serve the construction and manufacturing industry. In most cases, the new brand has a distinct value proposition (quality, functionality, etc.) that positions it above or below the existing brand, if not in a different market altogether.

Pharmaceutical manufacturers have also adopted the second brand strategy. The global healthcare landscape shows two adaptations of the second brand strategy in the pharmaceutical industry. The first adaptation, also the more common strategy, is to market a drug for different indications as distinct brands. Classic examples of this strategy are Pfizer’s launch of Viagra® and Revatio®, where sildenafil citrate is packaged in different dosages for erectile dysfunction and pulmonary arterial hypertension respectively, and Merck’s Propecia® and Proscar® that were introduced in different doses of finasteride for treating male pattern balding and enlarged prostate, respectively.

The Second brand strategy is to re-launch a drug as a distinct second brand in the same indication. In many such instances, this leads to an interesting scenario where two versions of the same product are being sold in the same market to treat the same condition, albeit as different brands with a strong price differential. As opposed to the Viagra® and Revatio® example discussed above, Pfizer’s introduction in New Zealand of a chemically identical version of Viagra® as Avigra® but at less than half its price, is an example of the second adaptation of a dual brand strategy and is the focus of this article.