1. PHILIP MENDES BRADLEY THOMAS (ASSOC) Brisbane QLD, Australia
Marketing and Branding Strategies: Use of Trade Marks, Geographical Indications, Industrial Designs for Business Success: Case Studies
Shanghai
15 December 2004
I N N O V A T I O N L A W
PHILIP MENDES BRADLEY THOMAS (ASSOC)
Level 3, 380 Queen St
Brisbane QLD, Australia Ph
Fax

2. Tools to promote the business of an SME
Trade marks
Industrial designs
Geographical indications
How do these branding tools help promote the business of an SME ?

3. 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

4. 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

5. Economic benefits of a trade mark Customer Recognition
A customer will be able to recognise the SME’s product or service and distinguish it from a competitor’s 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

6. Economic benefits of a trade mark Customer Loyalty
Customer loyalty is more than recognition for the purpose of buying again
A customer that is a repeated user of the same product or service will become a loyal customer
Customer trust
Customer emotional attachment
All based on the qualities or attributes of the desired product
A loyal customer may stick to the familiar, trusted product, even if a technically superior product enters the market

7. Economic benefits of a trade mark 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

8. 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 SME’s balance sheet
An asset against which an SME can borrow

9. 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

10. 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
Customers will also want to buy it

11. 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

12. 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

13. Attractive and appealing industrial designs
                                                    
A customer that finds a product’s 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

14. 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

15. 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

16. Geographical Indications Appellation of Origin
Portuguese Port

17. Geographical Indications Appellation of Origin
Scotch Whiskey

18. Geographical indications
Swiss watches

19. Geographical Indications
Indian Banarassi Sari
                      
                      

20. Geographical Indications
Cuban Cigars

21. Geographical Indications
Darjeeling Tea

22. Branding Tools All of these Trade Marks Industrial Designs
Geographical Indications
are 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

23. Making the most Effective use of your Trade Mark
Case Study: Ozgene Pty Limited
I N N O V A T I O N L A W
PHILIP MENDES BRADLEY THOMAS (ASSOC)
Level 3, 380 Queen St
Brisbane QLD, Australia Ph
Fax

24. Ozgene Pty Limited Its Trade Mark: Outline: What Ozgene’s business is
Its outstanding growth
How its use of its trade mark has contributed to its outstanding growth and success

25. 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

26. Snapshot of Ozgene’s revenues
2000
2001
2002
2003
2004

27. What is responsible for such outstanding success and revenues ?
A unique business
Outstanding technical expertise of CEO
Innovative branding and use of trade mark

28. What is Ozgene’s business
Ozgene’s 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 a fertilised egg

29. 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 diseases – because of genetic defects or mutations
Cystic Fibrosis, Haemophilia, Huntington’s disease

30. 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 a gene 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

31. Ozgene at Work
Movie

32. Ozgene’s 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 of Asia
Incubated within the Western Australian Institute for Medical Research
It provided
laboratory space,
first staff
Initial capital to kickstart operations

33. Ozgene’s CEO Founding CEO: Dr Frank Koentgen – 36 years old
Worked in the mouse facilities of Roche in Switzerland – one of the world’s largest pharmaceutical companies
Set up mouse facilities for Roche’s 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 gene
from a Black 6 species mouse

34. Ozgene’s Board of Directors
Initial Board
Frank Koentgen
Gabi Suess
Philip Mendes
Zisi Fotev
Kevin Fahey
Present Board

35. Ozgene’s capital requirements
Ozgene has always operated from cash flows
No debt capital – no borrowings
No equity capital – no venture capital - Ozgene remains privately owned
How was that possible:
Incubation from Western Australian research for Medical Research which provided initial capital, (and continues to receive a royalty, until the royalty cap is reached)
Cash flows from first orders
When Ozgene first graduated from incubation it did seek out venture capital investment.
One road show only
As weeks and months passed the drop dead zero cash date was extended out, until it was within everyone’s comfort to keep going without capital injection

36. Ozgene’s 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
6 – 9 months instead 2 to 3 years
100% success rate, as opposed to the high failure rate of others
Customers are paying for Ozgene’s expertise, efficiency, and track record
Customers pay USD $70,000 per knockout mouse strain

37. Ozgene’s technical intellectual property
Micro injection and other techniques are public domain
Ozgene’s 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 Ozgene’s competitive
advantage

38. Ozgene’s premises
2000 located at Western Australian Institute for Medical Research
2001 – June 2003 located at Animal Resources Center
January 2003 – bought land to build own laboratories
January 2003 – designed 4 stage new laboratory facilities

39. Ozgene’s labs – stage 1
June 2003 – Ozgene completed Stage 1 and moved in

40. Ozgene’s labs – next stages
In 2004 critical decision – how to accommodate growth ?
Staff already 51 strong
A challenge was whether Perth’s universities could train staff at the rate that will support Ozgene’s needs and future growth
Choices:
Build stage 2, or
Invest in robots
Decision to invest in two robots, the price of which were approximately equal to the cost of having built stage 2
Robots undertake repetitive work, such as analytical test preparation in high volumes, leaving skilled staff to do more value added work

41. Ozgene’s labs – next stages
Stage 2 deferred until late May build stage 3 at the same time

42. Ozgene’s 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

43. Ozgene’s customers

44. Ozgene’s customers March 2004 Major Milestone:
USD $ 8.5 m five year contract with United States National Institutes of Health

45. Ozgene’s success Outstanding technical expertise of CEO
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 research community
How did Ozgene establish a global reputation and global recognition
Outstanding technical expertise of CEO
Innovative branding and use of trade mark

46. Innovative branding - with a sense of humour
Ozgene’s 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

47. Innovative branding - with a sense of humour
Put the trade mark onto T-shirts, web sites, and presentations
Not just the trade mark – but some mouse characters as well

48. Innovative branding - with a sense of humour
Mouse characters started to have themes
Bio 2002 in Toronto

49. Innovative branding - with a sense of humour
Bio 2003 Washington DC

50. Innovative branding - with a sense of humour
Bio 2004 San Francisco

51. Innovative branding - with a sense of humour
Transgenic Mouse Conference 2004 Nashville

52. Innovative branding - with a sense of humour
2004 Marketing Tour Japan

53. Innovative advertising in scientific publications
Promoting viral delivery technology

54. Innovative advertising in scientific publications
Spring special price promotion

55. The branding strategy The branding strategy was
to promote the trademark and the “globe” design
using eye catching humorous cartoons
that had a relationship to the company and its business
that captured attention
that were instantly recognisable and connected to Ozgene
Use of the cartoons on T shirts, advertising, presentations
T shirts that were given away at Bio in limited numbers and were sought after
T shirts that are given to each customer and at presentations

56. 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:
“You’re the guys from Ozgene”
Ozgene’s 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 market’s attention
Reminding the market of Ozgene’s existence
Reinforcing in the market Ozgene’s reputation

57. 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 attention capturing branding
Attention capturing branding was something that Ozgene’s 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

58. Ozgene’s sense of humour

59. The Ozgene team