We don't have the money
This is a constraint that many companies face. In this case, the problem was traced to a traditional brand management system in which each brand competes for funding dollars.
Before a company can sell ophthalmic products to an HMO, the drugs have to be included on each HMO's individual formulary. CIBA-Vision’s brands were absent from the largest formulary in the state. As a result, their brands suffered from poor recognition among healthcare providers. Despite the above, the business unit adopted a brand management structure with the goal of gaining share in the lucrative managed care market.
A traditional brand management structure typically includes a marketing budget for each of the brands. In essence, they compete internally for dollars. With the goal of increasing sales among managed care customers, we developed a “branded promotion” to create value across all the brands and gain customer acceptance. This became the "pure focus" program.
CIBA-Vision supplied the materials and personnel to provide free eye-care screenings for a program that was managed by a targeted HMO. The HMO leveraged this program to create value for their own customers during their fall enrollment program. In turn, they placed CIBA-Vision products on their formulary.
This pilot partnership gained a formulary account valued at $3 – 6 MM in annual revenues for CIBA-Vision. The company realized a 200% gain in return on marketing investment since all brands participated in one promotion.