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 VAT I O N LAW
PHILIP MENDES BRADLEY THOMAS (ASSOC)
Level 3, 380 Queen St
Brisbane QLD, Australia
Ph + 61 7 3211 9033
Fax + 61 7 3211 9025
Philip@innovationlaw.com.au
Bradley@innovationlaw.com.au1
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 ?
2
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
3
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
4
Economic benefits of a trade mark
Customer Recognition
 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
5
Economic benefits of a trade mark
Customer Loyalty
 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
6
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
7
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
8
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
9
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
10
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
11
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
12
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
13
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
14
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
15
Geographical Indications
Appellation of Origin
 Portuguese Port
16
Geographical Indications
Appellation of Origin
 Scotch Whiskey
17
Geographical indications
 Swiss watches
18
Geographical Indications
 Indian Banarassi Sari
19
Geographical Indications
 Cuban Cigars
20
Geographical Indications
 Darjeeling Tea
21
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
22
Making the most Effective use of your Trade Mark
Case Study: Ozgene Pty Limited
I N N O VAT I O N LAW
PHILIP MENDES BRADLEY THOMAS (ASSOC)
Level 3, 380 Queen St
Brisbane QLD, Australia
Ph + 61 7 3211 9033
Fax + 61 7 3211 9025
Philip@innovationlaw.com.au
Bradley@innovationlaw.com.au
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
24
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
25
Snapshot of Ozgene’s 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
2000
420K
2.1m
2001
2002
3.2m
6.5m
200326 2004
What is responsible for such
outstanding success and revenues ?
A unique business
Outstanding technical expertise of CEO
Innovative branding and use of trade mark
27
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
28
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
29
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 30
prevent that disease
Ozgene at Work
Movie
31
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
32
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
33
Ozgene’s Board of Directors
 Initial Board
 Frank Koentgen
 Gabi Suess
 Philip Mendes
 Zisi Fotev
 Kevin Fahey
 Present Board
 Frank Koentgen
 Philip Mendes
 Zisi Fotev
34
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
35
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
36
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
37
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
38
Ozgene’s labs – stage 1
June 2003 – Ozgene completed Stage 1 and moved in
39
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
40
Ozgene’s labs – next stages
 Stage 2 deferred until late 2005. May build stage 3 at the same time
41
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
42
Ozgene’s customers
43
Ozgene’s
customers
 March 2004
 Major Milestone:
 USD $ 8.5 m five
year contract
with United
States National
Institutes of
Health
44
Ozgene’s 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 research
community
 How did Ozgene establish a global reputation and global recognition
Outstanding technical expertise of CEO
Innovative branding and use of trade mark
45
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
46
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
47
Innovative branding
- with a sense of humour
 Mouse characters started to have themes
 Bio 2002 in Toronto
48
Innovative branding
- with a sense of humour
 Bio 2003 Washington DC
49
Innovative branding
- with a sense of humour
 Bio 2004 San Francisco
50
Innovative branding
- with a sense of humour
 Transgenic Mouse Conference 2004 Nashville
51
Innovative branding
- with a sense of humour
 2004 Marketing Tour Japan
52
Innovative advertising
in scientific publications
 Promoting viral delivery technology
53
Innovative advertising
in scientific publications
 Spring special price promotion
54
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 at55 presentations
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
56
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
57
Ozgene’s sense of humour
58
The Ozgene team
59