4.2.3. Challenges for sellings generics

To truly retain customers, it requires more than just the product itself. Especially in competition with other generic drug suppliers, offering a high-quality product is not enough since this quality is by definition presupposed by the customer.

Frederik Herzberg⁵¹ developed the so called two-factor theory, that distinguishes between motivators that give positive satisfaction and hygiene factors, that do not give positive satisfaction but dissatisfaction if absent. These factors sometimes are not even recognized or noticed but if absent, a huge lack is felt.⁵²

As already mentioned before, this high quality and comparability with the innovator drug is taken as a fact and thus is a so called “hygiene factor”. It is the minimum the company must offer. Applying this principle to the generic market, it means that high quality will prevent dissatisfaction, but will not automatically revert in satisfaction. This theory is supported by the Kano model, which was previously described in chapter 2.3.1 so that hygiene factors are similar to the “Must-have” requirements of Kano’s theory.

This means, that something special has to be offered in order to differentiate from competition. It needs to be something, which is unique and offers an added-value to the customer, so that he sees himself in the center of all company activities.

As all generic drugs are the same and exchangeable and prices have eroded to a minimum it is obvious, that this so called “USP” is missing. The USP (unique selling proposition) is an outstanding feature, which clearly differentiates one company from competition. “It needs to be something the competition cannot or does not offer.”⁵³

If the generic drug itself cannot offer any USP, other “Dellighters” have to be found. This can only be achieved, if a company has knowledge about their customers, their expectations and their requirements.

⁵¹ Frederick Irving Herzberg (April 18, 1923 – January 19, 2000) born in Massachusetts was an American psychologist who became one of the most influential names in business management. He is most famous for introducing job enrichment and the Motivator-Hygiene theory.
⁵² http://en.wikipedia.org/wiki/Two_factor_theory [04 June 2013]
⁵³ http://en.wikipedia.org/wiki/Unique_selling_proposition [04 June 2013]