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Marketing and Branding Strategies: Use of Trade

Marks, Geographical Indications, Industrial Designs


for Business Success: Case Studies
Shanghai
15 December 2004

INNOVATION 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 ?

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

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

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

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
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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

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
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

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

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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

12

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

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
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Geographical Indications
Appellation of Origin
Portuguese Port

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Geographical Indications
Appellation of Origin
Scotch Whiskey

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Geographical indications
Swiss watches

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Geographical Indications
Indian Banarassi Sari

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Geographical Indications
Cuban Cigars

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Geographical Indications
Darjeeling Tea

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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

INNOVATION 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 Ozgenes business is
Its outstanding growth
How its use of its trade mark has contributed to its outstanding growth and
success
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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

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 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 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, 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 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

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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 of
Asia
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 Koentgen 36 years old
Worked in the mouse facilities of Roche in Switzerland one 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 gene
from a Black 6 species mouse

33

Ozgenes Board of Directors


Initial Board
Frank Koentgen
Gabi Suess
Philip Mendes
Zisi Fotev
Kevin Fahey
Present Board
Frank Koentgen
Philip Mendes
Zisi Fotev
34

Ozgenes 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 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
6 9 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
37

Ozgenes 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

Ozgenes labs stage 1


June 2003 Ozgene completed Stage 1 and moved in

39

Ozgenes labs next stages


In 2004 critical decision how to accommodate growth ?
Staff already 51 strong
A challenge was whether Perths universities could train staff at the
rate that will support Ozgenes 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

Ozgenes labs next stages


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

41

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
42

Ozgenes customers

43

Ozgenes
customers
March 2004
Major Milestone:
USD $ 8.5 m five
year contract
with United
States National
Institutes of
Health

44

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 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
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

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:
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
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 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
57

Ozgenes sense of humour

58

The Ozgene team

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