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Presentation on theme: "PHILIP MENDES BRADLEY THOMAS (ASSOC) Brisbane QLD, Australia"— Presentation transcript:

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

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