Promo - February 2009 - (Page 9)

(% OF SALES BY PRODUCT CATEGORY “It’s significant,” says Bonni Shevin-Sandy, president of Dard Design, a supplier that rang up 25% of its $50 million in annual sales by developing branded products for U.S. drug makers. Dard is making up the shortfall by beefing up its international sales. The firm has exhibited in Hong Kong for four years, which helped establish a base of international customers. “As the U.S. market started to fall, I put a lot more attention toward the international marketplace,” Shevin-Sandy says. “I had to figure out a way to pick up the business to make sure we still had the revenue coming in.” If there is a silver lining, it is that PHRMA left a small window of opportunity open in its 31-page “Code on Interactions with Healthcare Professionals.” Suppliers and distributors can offer items designed primarily for the education of patients or healthcare professionals if the items are valued at $100 or less. The products must also not have value to those professionals outside of their professions. As an example of the latter, PHRMA cited a DVD or CD player that could be used to educate patients, but could also be used to play movies or music CDs at someone’s home. “Business is going on, [but] not to the degree that it was, and in some product categories, like pens, it’s not going on at all,” PPAI President Steve Slagle says. “It’s a very narrow window to fit through.” The industry is trying to adapt by developing new products, incorporating existing products into educational materials, and keeping in touch with pharma customers, even if they’re not buying. “We need to get a slice of that pie that’s still on the table before it goes someplace else,” Rosin says. “It was effective for them before, so we need to find educational products and new concepts to get in front of these customers.” On the product side, Dard Design hired a medical illustrator to ensure that its new products are anatomically correct. The firm has developed electronic touch screens and 3D anatomical models for doctors to use with patients to explain certain diseases and how certain drugs can help, such as Diovan, made by Novartis Pharmaceuticals, for high blood pressure, and Botox, made by Allergan. “These prodWriting Instruments 10.39% ucts are more Drinkware 6.32% expensive, orders Desk/Office/Business are few and far Accessories 6.19% between, but they Calendars 5.51% are there and they are high-value dollars,” Source: Promotional Products Association International Shevin-Sandy says. The company is also finding new ways to use inexpensive items like pens and pedometers. For example, a branded patient kit for diabetics could include a journal and pen to record dietary requirements and a pedometer to track steps walked. “You have to put them together and package them so they fit the guidelines,” she says. “You have to figure out how it can benefit the patient who’s taking the drug.” “One attribute of our industry is that [companies] can move on a dime,” ASI’s Andrews says. “They are very good at product design and very good at sales, and suppliers are very nimble in finding sources.” 2007 TOP-SELLING PROMOTIONAL PRODUCTS Wearables 30.71% LEGAL INTERVENTION The drug companies agreed to implement the guidelines to stave off more aggressive legislation being sought by lawmakers in both parties, or possible intervention from a new Democratic President with health-care overhaul a top priority. The prospect of federal legislation is very real. Sen. Charles Grassley (R-Iowa) plans to reintroduce the Physician Payments Sunshine Act of 2007. The bill would provide for transparency in the relationship between physicians and manufacturers of drugs, devices or medical supplies. And there are other similar bills being considered. A growing number of states are also considering or have already passed legislation requiring drug makers to disclose payments to doctors. Minnesota has banned gifts to doctors valued at more than $50. The Massachusetts Department of Health is considering implementing a new code of marketing to ban the use of promotional products by the state. “Massachusetts wants the state law to be tougher than the PHRMA code,” Slagle says. “It could snowball, and we’re seeing the first coating of that right now in Massachusetts. The fear is that whatever happens there could be mimicked in other states.” Much of the resistance to gifts from drug companies— which have included items much costlier than promotional products, like tickets to sporting events and speaking fees— has been pushed by consumer activists who publicly and frequently vocalize concerns that doctors may be swayed to prescribe medications based on the giveaways and not necessarily on the most appropriate medication for the patient. “There’s a good lesson here for suppliers and distributors: Don’t have too many eggs in one basket,” Andrews says. “It’s a good lesson for all of us in this economy.” l P 9 ONLY ON THE WEB PROMOMAGAZINE.COM Steve Slagle, the president of Promotional Products Association International, opines on the challenges the industry faces now that the pharmaceutical industry no longer buys branded giveaways. Visit promomagazine.com/incentives Join the discussion on the Pro Shop Blog Promo / WWW.PROMOMAGAZINE.COM / February 2009 http://www.PROMOMAGAZINE.COM http://www.promomagazine.com/incentives http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - February 2009

Promo - February 2009 Contents Editor's Note A Bitter Pill Moving the Pictures Exclusively Yours Smart Mart Web Watching Tell Your Friends Commentary Second String Q&A: Shop Right Cover Story: Game On! Game On! Resource Center The Agency Center Testing... Testing... Index of Advertisers

Promo - February 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.