VIDEO
CASE
7
eNS Breathe Right® Strips: Going GIOba~
naive to treat 'international' as one big market-pararly within aTC," explains Marti Morfitt, president
CEa of CNS, the company that manufactures Breathe
;ht® nasal strips. "There are many discrete, unique
cets, and local expertise is needed to understand the
ics within each and address them effectively."
aTC" refers to over-the-counter medical products,
as aspirin or cough syrup, that customers can buy
ut a doctor's prescription. Breathe Right nasal strips
as an aTC product. But, that does not mean there
a lot of technology and medical science behind it.
reathe Right nasal strips are innovative adhesive
with patented dual flex bars inside. When
ched to the nose, they gently lift and hold open nasal
ages, making it easier to breathe. Breathe Right
are used for a variety of reasons, all to help
- e better through the nose: athletes hoping to play
- best (particularly when wearing mouth guards);
rer (and their spouses hoping for a quiet night's
I: and allergy, sinusitis, and cold sufferers looking
rug-free relief from nasal congestion.
tries asking where they could buy these strips. In 1995,
C S decided to take advantage of the global interest
and introduce Breathe Right strips internationally.
What countries did CNS choose to enter with its
Breathe Right strips? "Countries we focus on are those
with a large aTC market, high per-capita spending in
the aTC market, and future prospects for growth," says
Kevin McKenna, vicepresident for international at CNS. All
these factors relate to
market size. "But the
real key to success in a
market is a local partner that is entrepreneurial and has an
ability to execute in
terms of achieving distribution and sales."
IMPORTANCE
OF LOCAL
PARTNERS
W IT ALL
BEGAN
e Right strips were invented by Bruce Johnson, a
ic nasal congestion sufferer. At times, Johnson put
- or paper clips in his nose at night to keep his
passages open. He eventually came up with a
type for Breathe Right strips. He brought his
ion to CNS, Inc., which recognized its market
ial. CNS took the strips to the U.S. Food and
Administration for approval of claims for relief of
g and nasal congestion.
_-S, a small company, had a limited marketing
et. However, it got a big public relations break
Jerry Rice, the wide receiver for the San Fran-lgers, wore a Breathe Right strip on national TV
ored two touchdowns during the 4gers' 1995
Bowl victory. Demand for the strips soared.
fiat really helped sales of Breathe Right strips
t CNS had done a very effective job of getting
kits in the hands of news and sports media," says
. "When people on television asked, 'What is
nny looking thing on his nose?' the reporters
talk about how the strip was an effective conproduct for everyone. And a $1.4 million busi.umed into a $45 million business in just one
he explains.
r
DECISION
TO
GO GLOBAL
areness and trial were building domestically,
gan to get inquiries from people in other coun-
Dynamic world market changes in the last 30 years
have influenced opportunities for global sales of
Breathe Right strips. Key trends include increased
availability of aTC products formerly available only by
prescription and a global push toward self-care, spurred
by the increasing cost of health and medical care.
Additionally, aTC products have extended beyond
the traditional boundary of the pharmacy and into
grocery and other channels; and the role of the pharmacist has expanded from that of medical professional to
one that includes selling and marketing aTC products
to consumers.
At the same time, changes were taking place within
CNS. When Morfitt joined CNS in 1998, she began
pulling together a new management group with extensive experience in marketing consumer packaged
goods, including globally. CNS began seeking "hungry" international partners who would bring greater
localized market expertise and direct-selling capabilities than past partners. Morfitt also wanted partners
with demonstrated entrepreneurial spirit to match that
of the new management team.
The company's partner in Italy, BluFarm Group,
uses its local knowledge and direct selling skills to
partner with pharmacists to teach them how to increase
sales of Breathe Right strips in their stores. In Italy, as
throughout much of Europe, aTC products, such as
antacids, aspirin, and nasal strips, are typically placed
behind pharmacy counters and therefore not visible to
customers. The only way to sell a product is for a
Understanding
MANAGING
Stage 1: Explore/Test
Stage 1 to Stage 2 Criteria
Screen
• Relevant market: Cough/cold
category size, GDP and GDP
growth
• Quality of partners
• Product acceptance
• Oost to launeh/support
• Political stability
Stage 2: Establish
the Product
Sta!iJe 2 to Stage 3 Criteria
Screen
• Proven partner and distribution
strength
• Effective consumer ad and
education programs
• Met initial trial and repeat
targets
• Clear path to profits
Stage 3: Manage the Product
customer to ask for it by name. BluFarm Group recognized the importance of in-store advertising and sales
execution to build awareness and created point-of-sale
materials, such as window and counter displays (see
photo) to let customers know that Breathe Right strips
were available in the store. "BluFarm's ability to capture consumers' awareness of Breathe Right strips as
they walk in the retailer's door has beneficial results
for CNS, BluFarm, pharmacists, and consumers," says
McKenna.
"Working with an experienced local partner helps
overcome surprises in global markets," says Nick Naumann, senior marketing communications manager at
CNS. One surprise: Universal Product Codes (UPC) on
packaging are not "universal"-they
are used only in
the United States and Canada. "Different forms of those
codes in other countries can take a few weeks to six
months or more of government review to obtain," he
says.
Even the same packaging colours do not work
around the globe. Research with domestic consumers
revealed that they wanted darker packaging to suggest
the strips' use at night by snorers and those with stuffed
noses. '''Too grim and negative' Asian and European
consumers told us," says Naumann. Breathe Right
strips in those countries have a lighter, airier look than
the domestic packages, to convey the open feeling one
gets from the nasal strips.
I:::!uyers and Markets
GLOBAL
PART TWC
GROWTH
Today, Breathe Right strips are sold in over 25 countries, and global sales make up a growing percentage o;
CNS business each year. To ensure the Breathe Righ;
brand continues to meet growth expectations, CNS no
uses a three-stage approach to penetrate and develo
new markets:
• Stage 1: Explore/test the concept
- Use screening criteria to identify high-potentia.
markets
- Identify potential partners
- Validate concept with research
- Develop strategy and launch test market
• Stag~ 2: Establish the product
- Penetrate the marketplace
- Refine messages for local market
- Evaluate partnership and marketing strategie
• Stage 3: Manage the product
- Achieve sustainability/profitability
- Exploit new product and new use opportunitie
Overall, this approach starts with what works domestically and extends it into new markets, paying clo e
attention to local needs and customs. Throughout the
three stages, CNS conducts market research and make
financial projections.
As shown in the figure, at each stage of the marke
development process, performance must be met for th
product to enter the next stage. Once success wit
Breathe Right nasal strips is established in a country
the groundwork is laid and international partners haw
the ability to introduce other Breathe Right products.
such as Snore ReliefTMThroat Spray, and Vapor Shot'?
personal vaporizer.
LOOKING
FORWARD
"We believe the Breathe Right brand has great potential, both domestically and around the world," says
Morfitt. "Growth will come both from further expansion of Breathe Right nasal strips and from other drugfree, better-breathing line extensions," says Morfitt.
QUESTIONS
1 What are the advantages and disadvantages for eNS taking Breathe Right strips into international markets?
2 What are the advantages to eNS of (a) using its threestage process to enter new global markets, and (b) having
specific criteria to move through the stages?
3 Using the eNS criteria, with what you know, which countries should have highest priority for eNS?
4 Which single segment of potential Breathe Right strip
users would you target to enter new markets?
5 Which marketing mix variables should eNS emphasize
the most to succeed in a global arena? Why?