Managing Brand Portfolio in a Crisis: The Case of a Pharmaceutical Company in Egypt

Managing Brand Portfolio in a Crisis: The Case of a Pharmaceutical Company in Egypt

Rafic Nadi (American University in Cairo, Egypt) and Ahmed Tolba (American University in Cairo, Egypt)
DOI: 10.4018/978-1-4666-7393-9.ch011
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Abstract

Branding in pharmaceutical markets is more challenging than any other market due to the enormous regulations and restrictions from governmental bodies like MOH, Ministry of Health. This case tackles a real challenge that one of the leading pharmaceutical companies in Egypt is facing. Since the company has a well-established brand that has been in the market for more than 30 years, this brand has strong brand equity and is well known by consumers, end users. In the past 5 years with the devaluation of the Egyptian currency, the price of the active ingredients increased. Accordingly, the gross margin of the brand was highly affected, to the extent that it reflects losses in the net operating income. In any other market, it might be an option to increase the price and enhance the gross margin, but in the pharmaceutical industry, companies are price takers and only MOH has the right to set the price.

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