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    I N N O V A T I O N L A WPHILIP MENDES BRADLEY THOMAS (ASSOC)

    Level 3, 380 Queen St

    Brisbane QLD, Australia

    Ph + 61 7 3211 9033

    Fax + 61 7 3211 9025

    [email protected]

    [email protected]

    Marketing and Branding Strategies: Use of Trade

    Marks, Geographical Indications, Industrial Designs

    for Business Success: Case Studies

    Shanghai

    15 December 2004

    mailto:[email protected]:[email protected]:[email protected]:[email protected]
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    Tools to promote

    the business of an SME

    Tools

    Trade marks

    Industrial designs

    Geographical indications

    How do these branding tools help promote the business of an SME ?

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    What is a trade mark ?

    A mark that

    is associated with a particular product or service

    helps to distinguish it from other products and services,

    use of the mark in marketing and advertising,

    Achieves distinguishing from other products or services

    creates economic advantages to the trade mark owner or trade mark

    licensee

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    What can be a trade mark

    A trade mark is not limited to a sign or words

    Can be:

    Words

    Letters

    Numerals

    Drawings

    Shapes

    Colours

    Logo Audible sounds

    http://images.google.com.au/imgres?imgurl=www.dotcomlogotypes.com/logos/harley-davidson-com.gif&imgrefurl=http://www.dotcomlogotypes.com/search.asp%3FLetter%3DH&h=170&w=170&prev=/images%3Fq%3Dharley%2Bdavidson%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3http://images.google.com.au/imgres?imgurl=www.buyvideotape.com/images/red_fuji_logo.gif&imgrefurl=http://www.buyvideotape.com/&h=190&w=228&prev=/images%3Fq%3Dfuji%2Blogo%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8http://localhost/var/www/apps/conversion/tmp/scratch_7/stories/en/10923.html
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    Economic benefits of a trade mark

    Customer Recognition

    Customer recognition

    A customer will be able to recognise the SMEs product or service

    and distinguish it from a competitors product or service

    A customer that was satisfied with the product when the customer

    used it on a previous occasion, will recognise that product again,

    and purchase that product again, instead of a competitors

    If that brand recognition was not there, a customer would be unable

    to recognise the product to be able to buy it again

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    Economic benefits of a trade mark

    SME Image

    SME Image

    Trade mark of a product or service will enhance the reputation and

    standing of the SME

    A customer that is satisfied with one product that the customer recognises,will consider purchasing a different additional product from the same

    SME

    http://images.google.com.au/imgres?imgurl=galeon.hispavista.com/vazquez-lugo/nissan-logo.gif&imgrefurl=http://galeon.hispavista.com/vazquez-lugo/&h=368&w=498&prev=/images%3Fq%3Dnissan%2Blogo%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8http://images.google.com.au/imgres?imgurl=www.livermorehonda.com/shared/corporate_content/dg/white/images/vertical_logo.gif&imgrefurl=http://www.livermorehonda.com/corporate_index.html&h=161&w=225&prev=/images%3Fq%3Dhonda%2Blogo%26svnum%3D10%26hl%3Den%26lr%3D%http://images.google.com.au/imgres?imgurl=www.geocities.com/theriverofkings/toyota.gif&imgrefurl=http://www.geocities.com/theriverofkings/buttom.htm&h=255&w=300&prev=/images%3Fq%3Dtoyota%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8
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    Economic benefits of a trade mark

    SME Goodwill

    What is goodwill ?

    The reputation and standing of a business

    Customer recognition

    Customer loyalty

    Customer trust

    Customer attachment

    The economic value of the expectation of loyal customers buying

    again, expressed as a lump sum amount of money

    An asset on the SMEs balance sheet

    An asset against which an SME can borrow

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    Economic benefits of a trade mark

    SME Goodwill and trade marks

    Goodwill is therefore almost entirely dependent upon trade marks

    It is often the difference between the total value of a business, less the

    value of its physical assets, and that can produce a very high number

    How valuable can trade marks be ?

    All these are valued in excess of hundreds of millions of USD

    Coca Cola

    IBM

    Microsoft

    http://www.physics.georgetown.edu/images/ibm_logo.gif
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    What is an industrial design

    The physical characteristics that makes an article

    Recognisable

    Attractive and appealing

    Recognition

    Customers will recognise your product and buy it

    Attractive and appealing

    Customers will also want to buy it

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    Recognisable industrial designs

    Customers do not buy Coca cola because the bottle is

    attractive

    They buy Coca cola because they like Coca cola

    Coca cola is recognisable By its trade mark

    By the unique design of the bottle that it comes in

    The design of the bottle is an industrial design that can

    be protected

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    Recognisable industrial designs

    Other products with unique recognisable designs:

    Perrier

    Toblerone

    Recognition enables a customer to recognise it, and to choose to buy it,

    in preference to another product

    http://images.google.com.au/imgres?imgurl=www.bottledwaterweb.com/images/perrier.gif&imgrefurl=http://www.bottledwaterweb.com/bott/bt_250perrier.html&h=180&w=145&prev=/images%3Fq%3Dperrier%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8http://images.google.com.au/imgres?imgurl=www.bottledwaterweb.com/images/perrier.gif&imgrefurl=http://www.bottledwaterweb.com/bott/bt_250perrier.html&h=180&w=145&prev=/images%3Fq%3Dperrier%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8
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    Attractive and appealing industrial

    designs

    A customer that finds a products design attractive and appealing will

    want to buy it

    A strong motivator to purchase a product

    Designs are an important part of the branding strategy

    http://pericles.ipaustralia.gov.au/adds2/adds.adds_details.paint_details?p_design_id=97407
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    What is a geographical indication ?

    A sign

    Placed on goods

    To identify their geographical origin

    To identify that the goods have the qualities, characteristics, or

    reputation, associated with that geographical origin

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    Why is a geographical indication

    important ?

    Consumer will buy a product because of the characteristics of the

    product when originating from a particular place

    This is so in relation to agricultural products

    They are influenced by the geographical location of where they are

    produced, and that is what makes them unique

    This is also so in relation to manufacturing skills and reputations in a

    country eg, Swiss watches

    They are: Source identifiers

    Indicators of quality

    They again promote recognition, and customer loyalty

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    Geographical Indications

    Appellation of Origin

    Portuguese Port

    http://news.bbc.co.uk/olmedia/1765000/images/_1768480_portugal_oporto_150map.gif
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    Geographical Indications

    Appellation of Origin

    Scotch Whiskey

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    Geographical indications

    Swiss watches

    http://www.tiscali.co.uk/reference/encyclopaedia/countryfacts/images/maps/large/00002527.gifhttp://images.google.com.au/imgres?imgurl=www.ozdoba.net/swisswatch/bild/swissdef_geneve1.jpg&imgrefurl=http://www.ozdoba.net/swisswatch/swissdef.html&h=248&w=281&prev=/images%3Fq%3Dswiss%2Bwatch%26start%3D60%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3Dhttp://images.google.com.au/imgres?imgurl=micro.magnet.fsu.edu/watches/images/movement21.jpg&imgrefurl=http://micro.magnet.fsu.edu/watches/movement21.html&h=290&w=489&prev=/images%3Fq%3Dswiss%2Bwatch%26start%3D40%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26ohttp://images.google.com.au/imgres?imgurl=www.dimijianimages.com/More-page9-time/watch-macro.jpg&imgrefurl=http://www.dimijianimages.com/More-page9-time/watch-mechanism.htm&h=492&w=641&prev=/images%3Fq%3Dswiss%2Bwatch%26start%3D20%26svnum%3D10%26hl%3Den%26lr%3
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    Geographical Indications

    Indian Banarassi Sari

    http://home.attbi.com/~wwildman/irvine/images/1_04_00_india.gifhttp://www.all-india-tour-travel.com/culture/images-culture/varanasi-saree.jpg
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    Geographical Indications

    Cuban Cigars

    http://www.cnn.com/2000/US/03/28/virgin.mary/florida.cuba.miami.jpghttp://www.virtualvallarta.com/vallarta/shopping/spiritsandcigars/images/cigars.jpg
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    Geographical Indications

    Darjeeling Tea

    http://pws.prserv.net/jpinet.sono0/html/f&m.jpghttp://www.kyelateas.com/images/darjeelinglogo2.gif
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    Branding Tools

    All of these

    Trade Marks

    Industrial Designs

    Geographical Indicationsare business branding tools

    Aimed at

    Promoting product recognition

    Promoting customer loyalty

    Promoting repeat business

    Enhancing the reputation of the product and its producer

    Tools used to capture economic benefits to a business

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    I N N O V A T I O N L A WPHILIP MENDES BRADLEY THOMAS (ASSOC)

    Level 3, 380 Queen St

    Brisbane QLD, Australia

    Ph + 61 7 3211 9033

    Fax + 61 7 3211 9025

    [email protected]

    [email protected]

    Making the most Effective use of your Trade Mark

    Case Study: Ozgene Pty Limited

    mailto:[email protected]:[email protected]:[email protected]:[email protected]
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    Ozgene Pty Limited

    Its Trade Mark:

    Outline: What Ozgenes business is

    Its outstanding growth

    How its use of its trade mark has contributed to its outstanding growth andsuccess

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    Snapshot of Ozgene

    Its business:

    A biotechnology company making transgenic mice and rats to

    validate potential drug targets

    Formed in November 1999

    Commenced incubated operations in 2000

    Graduated from the incubator in 2001 into rented labs

    Built and moved into its own laboratories in 2003

    Staff in 2000: 2

    Staff in 2004: 51

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    Snapshot of Ozgenes revenues

    7.0m

    6.5m

    6.0m

    5.5m

    5.0m

    4.5m

    4.0m

    3.5m

    3.0m

    2.5m

    2.0m

    1.5m

    1.0m

    0.5m

    0.0m 2.1m420K 3.2m 6.5m

    20012000 2002 2003 2004

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    What is responsible for such

    outstanding success and revenues ?

    A unique business

    Outstanding technical expertise of CEO

    Innovative branding and use of trade mark

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    What is Ozgenes business

    Ozgenes technical expertise is providing transgenic services

    That is, using its technical expertise to produce a mouse or rat which:

    Has had a gene randomly inserted

    Has had a gene removed Has had a gene inserted.

    Specific skills are in

    Construction of gene vectors Micro-injection techniques to insert gene vectors into a fertilised

    mouse or rat egg

    Use a suicide virus to infect or carry a gene vector into afertilised egg

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    Why genetically modify a mouse or

    rat in that way ?

    Human beings have some 40,000 genes

    Genes are a genetic blueprint that determine

    Colour of hair

    Colour of eyes Tall / short

    High matabolism and thin, low metabolism and overweight

    But genes also are responsible for predisposition to disease

    Diabetes, cancer, heart disease, psoriosis

    the cause of specific diseasesbecause of genetic defects or mutations

    Cystic Fibrosis, Haemophilia, Huntingtons disease

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    Why genetically modify a mouse or

    rat in that way ?

    All human beings are 99.9% genetically identical

    The other 0.1% genetic difference accounts for difference in hair colour, eye

    color, skin colour, etc

    Human beings and chimpanzees are 98.5% identical

    Human beings and mice are 97.5% identical

    Gene function that is observed in a chimpanzees or mouse is an indicator of

    the function of that gene in a human being

    Observing a predisposition to a particular disease in a mouse into which agene has been inserted or deleted

    Observing a disease caused by a gene that is inserted or deleted

    will assist the understanding of that gene in human beings, and assist in

    developing a drug targeted at that gene to treat or prevent that disease

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    Ozgene at Work

    Movie

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    Ozgenes beginnings

    Formed in November 1999

    Commenced operations in 2000 in Perth, Western Australia

    Why Perth ?the location of the Animal Resources Center that

    supplies animals for research use throughout Australia and much ofAsia

    Incubated within the Western Australian Institute for Medical Research

    It provided laboratory space,

    first staff

    Initial capital to kickstart operations

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    Ozgenes CEO

    Founding CEO: Dr Frank Koentgen36 years old

    Worked in the mouse facilities of Roche in Switzerlandone of the

    worlds largest pharmaceutical companies

    Set up mouse facilities for Roches US operations in New Jersey

    Set up mouse facilities at Walter and Eliza Hall Institute for Medical

    Research in Melbourne, Australia

    First scientist in the world to

    successfully knockout a genefrom a Black 6 species mouse

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    Ozgenes Board of Directors

    Initial Board

    Frank Koentgen

    Gabi Suess

    Philip Mendes Zisi Fotev

    Kevin Fahey

    Present Board Frank Koentgen

    Philip Mendes

    Zisi Fotev

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    Ozgenes capital requirements

    Ozgene has always operated from cash flows

    No debt capitalno borrowings

    No equity capitalno venture capital - Ozgene remains privately owned

    How was that possible:

    Incubation from Western Australian research for Medical Research whichprovided initial capital, (and continues to receive a royalty, until the royaltycap is reached)

    Cash flows from first orders

    When Ozgene first graduated from incubation it did seek out venture capitalinvestment.

    One road show only

    As weeks and months passed the drop dead zero cash date was extended out,until it was within everyones comfort to keep going without capital injection

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    Ozgenes technical intellectual

    property

    Techniques for making transgenic mice and rats are not no much subject to

    patents as to skill, techniques, and expertise

    Many people throughout the world have the skills to make transgenic animals

    All pharmaceutical companies

    Most universities and research institutes doing medical research

    When all these skills are widely available how has Ozgene been successful ?

    Ozgene expertise is widely regarded

    Ozgene can make a transgenic animal more reliably and faster

    69 months instead 2 to 3 years

    100% success rate, as opposed to the high failure rate of others

    Customers are paying for Ozgenes expertise, efficiency, and track record

    Customers pay USD $70,000 per knockout mouse strain

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    Ozgenes technical intellectual

    property

    Micro injection and other techniques are public domain

    Ozgenes highly skilled use of that public domain knowledge, and trade

    secrets, makes it a preferred supplier

    Pharmaceutical companies have their own transgenic mouse facilities They come to Ozgene for their hard ones

    But Ozgene is also at the cutting edge of new technological developments

    It jointly invented a viral technology that uses a suicide virus to deliver a

    gene to a fertilised egg

    It validated a gene switch

    that turns genes on and off

    This results in Ozgenes competitive

    advantage

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    Ozgenes premises

    2000 located at Western Australian Institute for Medical Research

    2001June 2003 located at Animal Resources Center

    January 2003bought land to build own laboratories

    January 2003designed 4 stage new laboratory facilities

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    Ozgenes labs next stages

    Stage 2 deferred until late 2005. May build stage 3 at the same time

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    Ozgenes customers

    5% of customers in Australia

    95% of customers are export customers

    Located in

    United States

    Europe

    Japan

    Amongst those customers are

    The largest pharmaceutical companies in the world

    The most prestigious universities and research institutes in the

    world

    Ozgenes customers

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    Ozgene s customers

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    Ozgenes

    customers

    March 2004

    Major Milestone: USD $ 8.5 m five

    year contract

    with United

    States National

    Institutes ofHealth

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    Ozgenes success

    How has Ozgene, located in the most remote capital city on Earth

    established a global reputation and competitive edge

    Ozgene could have been nothing more than a boutique biotechnology

    company in Australia, serving only the needs of the Australian researchcommunity

    How did Ozgene establish a global reputation and global recognition

    Outstanding technical expertise of CEO

    Innovative branding and use of trade mark

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    Innovative branding

    - with a sense of humour

    Ozgenes initial marketing effort was attending Bio

    Bio: United States Biotechnology Industry Organisation annual

    Conference and Exhibition

    Capitalised on American inquisitiveness with Australian capability

    Use of Australianisms

    Oz

    Southern Cross

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    Innovative branding

    - with a sense of humour

    Put the trade mark onto T-shirts, web sites, and presentations

    Not just the trade markbut some mouse characters as well

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    Innovative branding

    - with a sense of humour

    Mouse characters started to have themes

    Bio 2002 in Toronto

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    Innovative branding

    - with a sense of humour

    Bio 2003 Washington DC

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    Innovative branding

    - with a sense of humour

    Bio 2004 San Francisco

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    Innovative branding

    - with a sense of humour

    Transgenic Mouse Conference 2004 Nashville

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    Innovative branding

    - with a sense of humour

    2004 Marketing Tour Japan

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    Innovative advertising

    in scientific publications

    Promoting viral delivery technology

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    Innovative advertising

    in scientific publications

    Spring special price promotion

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    Effect of the branding strategy

    Ozgene became well recognisable globally

    On marketing trips staff all wore the familiar T shirts

    Even at airport lounges people would walk up and say:

    Youre the guys from Ozgene

    Ozgenes quick recognition throughout the industry set itself apart from

    competitors

    That is attributed to its trade mark and how it has been used

    Humour and distinctiveness in the presentation of the trade mark resulted in

    Capturing the markets attention

    Reminding the market of Ozgenes existence

    Reinforcing in the market Ozgenes reputation

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    Effect of the branding strategy

    But global success was not because of cartoons of cute mice

    Global success was due to passionate leadership of the CEO,

    outstanding technical staff, outstanding technical success, and

    recognition and reinforcement of technical success by attentioncapturing branding

    Attention capturing branding was something that Ozgenes competitors

    did not do.

    There are only some 6 competitors in the world

    Ozgene quickly captured a large market share in such a specialised

    market because of its technical excellence, and the effective branding

    strategy that constantly reminded people of that

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    Ozgenes sense of humour

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    The Ozgene team