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Global Marketing…
Our Objectives Today
Understanding global brandingWhat is it? Why do it? What are the benefits?Global vs local branding
Creating global brands: key success factorsBrand buildingMarket buildingBest practices
Characteristics of successful global brandsExecutions and approachesCase studies
Our Objectives Today
Understanding global brandingWhat is it? Why do it? What are the benefits?Global vs local branding
Creating global brands: key success factorsBrand buildingMarket buildingBest practices
Characteristics of successful global brandsExecutions and approachesCase studies
So What Is Global Branding?
A global brand is one whichis perceived to reflect the same set
of values around the world
What Is a Global Brand vs a Global Campaign?
FontColorSymbolLogoTaglineIllustrative stylePersonalityFootprint/brand essence
The advertising execution
Springboards off idea/insight
Executed locally
Delivery of the brand’s core message
Global CampaignGlobal Brand
The Global Top 10
Business Week: July, 2004.
$67 b
61 b
54 b
44 b
34 b
27 b
25 b
24 b
23 b
22 b
Brands Brand Value
What are the world’s most valuable brands?
What About Big Pharma?
Med Ad News, Sept 2005.
The top 5 companies have 6 of the top 10 pharma brands
$187B
184B
136B
114B
112B
Company Market Cap
The world’s 5 most valuable pharmaceutical companies
Pharma’s Top 10 Brands
Ranked by revenue; Med Ad News, 2005.
$10.86
$5.20
$4.50
$4.46
$4.42
$3.88
$3.59
$3.36
$3.35
$3.33
Brands Brand Value
Top 10
Global Branding Evolves…
DecentralizedMultidomestic
CentralizedProduct Position
CentralizedBrand Position
GLOBAL BRAND
5 years ago, there were different global “philosophies”
Martini
L’Oréal
Coca-Cola
UPS
Cereal Partners Worldwide
Bacardi
Tiffany
Levi'sExxonMobil
Black &Decker
J&J
Nestlé
MasterCard
GSK
AstraZeneca
CathayPacific
Pfizer
Nescafé
General Motors
Microsoft
Novartis
Nescafé
Martini
L’Oréal
Coca-Cola
UPS
Cereal Partners Worldwide
Bacardi
TiffanyGeneral Motors
Levi'sExxonMobil
CathayPacific
Black &Decker
J&J
Nestlé
Microsoft
MasterCard
Since then, even “Radically Decentralized” companies are pushing for global brands
AstraZeneca
GSK
Novartis
Pfizer
DecentralizedMultidomestic
CentralizedProduct Position
CentralizedBrand Position
GLOBAL BRAND
“Market leaders continuously change the rules of the game.
By changing the rules, you control the game – and the marketplace.”
MIT Sloan Management Review
Why the Change?
Why Global?
Megabrands are worth more.
Global megabrands are the most valuable.
Flagship brands in corporate portfolio
Economies in branding, packaging, purchasing, marketing, and manufacturing
Transfer best practices faster and easier
Ability to launch new products and services multinationally
Within the pharmaceutical industry…
The key driver for global marketing communications is part of a larger trend
towards consolidation…
Maximizingefficiency
Enhanced information and control
Better production cost-efficiencies;
quality values
Greater synergy
Better best practices sharing
…it comes from the overwhelming need to maximize value over the patent life cycle by maximizing efficiency
But what about the local argument?
There can be a trade-off between maximizing efficiency and consistency with relevancy of culture, brand, and
patient/physician preferences
Marketers need to balance the demands of centralization with local needs
It is not simply N.I.H. (Not Invented Here)
Global vs Local
Tipping the balance
While the local/regional argument is compelling,
the balance has tipped toward global branding
LocalLocal relevance
Brand, culture, product, consumer, marketing,
messaging
Competitive flexibility
Patient/Physician preferences
Global
Information transparency
Competition
Maximize efficiency
Tipping the Balance
Exposure Awareness Diffusion
Local markets can readily see and are impacted by global information
Information transparency
Significantly increased exposure to global information
Awareness of world icons and brands
increasingly dominant in local markets
Instant dissemination of news (positive and negative) to
patients and physicians
Tipping the Balance
Crowded Local Markets
High Brand Awareness in Local
Markets
Key to success is share of mind, not product on shelf
Competition in all therapeutic categories
Dominance of “me too” drugs
High awareness of world icons/brands
“Best in class” does not translate into sales dominance
Increasing competition
Critical Marketing Mass Through Efficiency
Global marketing may be the most effective way to consolidate
Tipping the Balance
When it works, the economies of scale are significant…
Generates cost savings
Increases resources for marketing priorities
Speed to market
Maximize efficiency
Conclusions
Inevitably greater brand value and net marketing impact
Global branding can add a major competitive edge
and generate efficiencies
Progress Check
Understanding global brandingWhat is it? Why do it? What are the benefits?Global vs local branding
Creating global brands: key success factorsBrand buildingMarket buildingBest practices
Characteristics of successful global brandsExecutions and approachesCase studies
Global Blockbusters Are Created by Brand Building and Market Building
OWNDifferentiate: create a unified DNA
SHAPEShape the market by influencing the treatment paradigm to maximize the opportunity for your Brand
GROWIncrease size of the market
Market buildingmomentum
Brand buildingdifferentiate
Brand Buildingdifferentiate
A unified global DNA defines a Brand’s core competency and primary purpose
Bespeaks itsvalues
Declares its character
Exudes itspersonality
Celebrates itsuniqueness
Globally, audiences are now buying conceptual and symbolic differences instilled in different brands — the DNA — rather than functional
product differentiators
You Know the Brands. What’s Their DNA?
To successfully market a Brand’s DNA…
Establish and exploit a compelling “Need Connection” between its specialness and the core desire
of its most likely constituency
Market shaping is a core capability
Market Segment A
Market Segment B
Market in 5 Years
BrandX
Market Today
BrandX
Market Buildingmomentum
Shaping the market to maximize the opportunity for your brand Growing the size of the market
At least 10 of the top 20 retail brands have Market Building characteristics
Market Building Characteristics
Source: IMS analysis to identify market building brands 1993-2003.
Contributed >20% of positive volume growth of defined market for 2 consecutive years
andContributed >40% of positive value growth of market for more than 2 consecutive years
Brand Building was also a key factor(neither is mutually exclusive!)
Better Market Building Requires…
Real insight into disease and patient treatment needs to shape a marketUNDERSTANDING
Passion to search for expanded market opportunities
(Growth — not just share gain!)AMBITION
Excellent thinking in picking the right levers in the right sequenceEXECUTION
Up front and sustainedINVESTMENT
Ambition and Understanding: Shaping and Growing a Market
Source: Detailed analogues assessment by AT Kearney study for GSK in 2003.
19860
1,000
2,000
3,000
4,000
5,000
6,000
Fosamax Zometa Actonel Optinate Aredia
2,000 BMD Tests/yr
Merck establishes Bone Measurement Institute to promote
BMD tests
18,000 BMD Tests/yr
Merck funds landmark National Osteoporosis Risk Assessment Study,
reaffirming need for prevention
1.8MM BMD Tests/yr
National Osteoporosis Foundation established to educate patients and public
about osteoporosis prevention
$ M
M
Global bisphosphonates market
FosamaxDTC campaign
MAT Dec 1994
MAT Dec 1995
MAT Dec 1996
MAT Dec 1997
MAT Dec 1998
MAT Dec 1999
MAT Dec 2000
MAT Dec 2001
MAT Dec 2002
MAT Dec 2003
Execution: Right Levers, Right Sequence
Shape Product Prepare Market Grow Product
Pre-clinical Phase 1 Phase 2 Phase 3 Launch
Grow andManage
Life Cycle
ThoughtLeader
Segment
Global Thought Leaders
Country Thought Leaders
Regional Thought Leaders
Local Thought Leaders
Payer Influencers
Patient Advocacy Leaders
Manage thought leader segments to shape commercially focused products and ensure optimal market impact
Investment: Sustained and Up FrontPower Hitter Approach to Drive Sales Uptake
Ma
rke
tin
g I
nv
es
tme
nt
An
nu
al
Sa
les
YearLaunch 1 2 3 4 5
Launch 1 2 3 4 5
Ma
rke
tin
g I
nv
es
tme
nt
An
nu
al
Sa
les
Year
Launch 1 2 3 4 5
Launch 1 2 3 4 5
Power Hitter ApproachConventional Approach
Engage Management Best Practices
Critical Success Factors
Management Commitment
Shared Learning/Best Practices
Centers of Excellence
Accountable Coordination
Local/Regional Involvement In
All Phases
In Summary
Success in creating a true global brand
Building a brand, building the market, and engaging management best
practices are crucial components for pharma to focus on
Progress Check
Understanding global brandingWhat is it? Why do it? What are the benefits?Global vs local branding
Creating global brands: key success factorsBrand buildingMarket buildingBest practices
Characteristics of successful global brandsExecutions and approachesCase studies
Global Brand Expressions Vary
Global Brand
Minor adaptation of global campaign Still essentially One Sight, One Sound
Re-execution of global idea for local relevance
New local creation in line with Brand Footprint
Free local creation to local strategyLOW
HIGH
Creative consistency
One Sight, One Sound, One Sell Titling changes only
Different Companies, Different Approaches
Minoradapt
Re-executeglobal idea
Local creationto global footprint
FREE LOCAL CREATION
OSDeutsche
Bank
RJR
GlaxoSmithklin
e
Nescafé
Classic
Gold Blen
d Vaseline
MSN
ReckittBenckise
r
MastercardDure
x
Pfizer
Novartis
UPS
Black & Decker
GM
Cathay Pacific
Boots
Lucent
AstraZeneca
L’Oréal
Merck
Which approach is right?
Central or Local?An Objective, Not Subjective Process
International Campaign Development Model: The Evaluation Matrix
Corebrand idea MATRIX
Centralcampaign
Local campaign
Adapted orre-executedcampaign
Category Target Company
High High High
Medium MediumMedium
Low Low Low
= Minimal Adaptation
=New
Selling Idea/Refocused Brand
Footprint
=Adaptation or
re-execution of Selling Idea
The “Like-Mindedness” Matrix
An Informed Decision-Making Process
Category Target Company
High
Medium
Low
Minimal Adaptation
New Creative Idea/
Refocused Brand Footprint
Adaptation or re-execution of
Creative Idea
First in a disease or therapy area
Uniform label across countries. Global
rollout.
“Conceptual target” and “core desire”
the sameThey view products and brands similarly.
Company is highly disciplined,
used to high degree of central control
Has same brand objectives
Some cultural differences
Minor variations in understanding,
attitude, or experience
Minor product differences
Similar role and usage, brands in similar positions
Company used to central strategy, local execution
Different brand position, but same
objectives
Decentralised, not used to central
strategic directionTotally different brand
objectives
Different attitudes, desires
Perception of brands,
or advertising literacy
Different products/brands dominate marketUsage different, or brands differently
positioned
Building and dominating the global bisphosphonates market
Background
Create a market for osteoporosis prevention through education, advocacy, and KOL partnerships
Just a decade ago, there was no osteoporosis market. It was not defined as a disease until 1994.
Globally, osteoporosis affects 1 in 3 women and 1 in 5 men older than 50, with an estimated 75 million cases
in Europe, USA, and Japan
Strategy for SuccessIf You Build It, They Will Come
Increase awareness and understanding of osteoporosis
Motivate people to take action
to prevent, diagnose, and treat
osteoporosis
Support national osteoporosis
societies in order to maximize their
effectiveness
Build market by increasing accessand availability to BMD testing
Establish Fosamax as the foundation therapy for the prevention and treatment of osteoporosis
ChallengesHigh underdiagnosis and undertreatment of disease
Denial of personal risk by postmenopausal women
Lack of dialogue between patients and doctor
Low awareness/use of BMD testing
A World Without Osteoporotic Fractures Creative Executions That Differentiate and Build…
Australia
Germany
Spain
UK
The Result: Merck Builds the Market…
Source: IMS analysis to identify Market Building brands, 1993-2003.
Blockbuster sales in the osteoporosis bone calcium regulators market, 1993-2003
.0
.5
1.0
1.5
2.0
2.5
3.0
3.5
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Sa
les
(L
CD
, $
bil
lio
ns
)
OthersFosamax
…Leading to the Current Dominance of Bisphosphonates, With Fosamax as the World’s Most Prescribed Osteoporosis Medication
Source: Internal GSK database.
1995 1996 1997 1998 1999 2000 2001 2002 2003
Blockbuster sales in the osteoporosis bone calcium regulators market, 1993-2003
Bisphosphonates Menatetrenone Calcitonins Evista est HRT est
0
50
100
150
200
250
Pa
ck
un
its
/m
STRATEGY(insights, positioning)
MESSAGE(copy, language)
VISUAL(logo, color, design)
TONE
RESULTS
Foundation therapy for prevention and treatment of osteoporosis
Freedom from the “inevitability” of osteoporosis
Prevent fractures/Reverse bone lossImprove QOL/Reduce hospitalizationFewer missed work days
Educating, demonstrating, motivating
The world’s most prescribed osteoporosis medication
Global Branding “Score Card”
Consistent logo, colors (green/yellow), subjects
Shaping and growing the Asthma market
Background
Globally, up to 300 million patients suffer from asthma
When patients achieve Total Control, it is a life-changing moment
Despite availability of effective medicines, around half of all asthma patients are
not controlled at any time
Strategy for SuccessThe Seretide Moment — Total Control
Capitalize on insight that patients “feel a
difference” with Seretide vs other asthma products
Build on strong empathetic relationship
existing between doctors and asthma patients
Shape and Grow the asthma market by demonstrating Total Control is now possible
Challenges
Most patients do not expect Total Control with asthma therapy
Many patients do not properly use asthma treatment
Compliance/adherence with treatment may be low
Creative That Shapes and Grows…With A Consistent, Focused Message
UK
Germany
Mexico
UK
Australia
The Result: Blockbuster Growth!
Sales in year 2 were +336% vs year 1
Grew faster than other new product launches (including Lipitor, Viagra, Vioxx)
Outselling other leading combo therapy by >70/30
Highest ever “spontaneous recall” in the UK
High physician recognition of “Liberated Patients” campaign, and
associated belief in Seretide’s efficacy
Global Branding “Score Card”
STRATEGY(insights, positioning)
MESSAGE(copy, language)
VISUAL(logo, color, design)
TONE
RESULTS
Liberation from asthma
Total Control that patients can feelNO daytime symptoms, nighttime awakenings, rescue therapy, exacerbations, ER visits, AEs leading to treatment change
Liberating, confident, higher ground
Sales grew +336% in 1 yearWon “Effectivness Award for Product Launch of Year” (2001)
Consistent colors; visuals communicated themes of “total control” and “freedom/liberation. Logos differed by country.
Penetrating and owning the crowded GERD market
Background
Prilosec led PPI category with 40.6% of market in 2001, but faced
patent expiration in Oct 2001 amid heavy competition from
Prevacid, Aciphex, and Protonic
Differentiate and build on heritage of proven Prilosec
Small window of opportunity to convert Prilosec to Nexium
Strategy for Success
Convince Prilosec patients to switch
to Nexium
Maintain leadership position
in market
Establish superiority
of Nexium
Build on the heritage and equity already established by Prilosec — maintain continuity
Emphasize power, efficacy, superiority of Nexium
Challenges
Availability of generic Prilosec
Relatively comparable efficacies among marketed PPIs
Aggressive pricing strategies by competitors
“The ultimate success of Nexium in the United States will be more a function of marketing
than of absolute product superiority.”
Lehman Brothers, 2002
Strategy for Success
Germany
United States
Australia
The Result:
Nexium is #6 best selling medicine in 2004, up from #7 in 2003
This is ahead of forecasts at launch by Lehman Brothers, which originally predicted $3.3 B in peak sales in 2006 based on switching patients from Prilosec
Source: IMS Midas Global Pharmaceutical Sales 2003, 2004.
Sales
$ B
illi
on
s
2004
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
2003$2.00
2002
62%increase
25%increase
$4.8 B
$3.8 B
$2.3 B
Global Branding “Score Card”
STRATEGY(insights, positioning)
MESSAGE(copy, language)
VISUAL(logo, color, design)
TONE
RESULTS
The new purple pill — iconic across the world
Superior. Proven control
Powerful, regal, yet familiar
#1 in category
“Spray” icon to represent innovation. Purple. Consistent logo
Turning a side effect and a “taboo topic”into a Global blockbuster
Background
While 1 in 3 men on the planet suffer from some form of erection difficulties, Viagra was not seen as
a brand for ‘me and what I have’
Acknowledging ED needed to be a normal and positive experience
Viagra was seen schizophrenically: On one side ‘a serious medication for
a serious medical problem’ On the other ‘a joke medication for the
sexually promiscuous’Certainly not for normal guys
Strategy for SuccessIdentifying A Benefit All Men Will Identify With
Inspiring men to action through the
promise of ‘better sex’
Informing men that what they have is normal and worth
treating
Re-invigorating the Viagra brand with
men
Contrary to popular belief, a man’s sex life should get better as he gets older
Challenges
The weight of ‘unhelpful media’ (and millions of Viagra jokes)
ED challenges a man’s identity and self-worth
Doctors were just as embarrassed as sufferers
The Critical Insight: Your Experience + Reliable Erections = Better (and Better) Sex
Mexico
Thailand
Germany
Poland
The Result:
The world’s first global DTC campaign42 countries
21 languages
Became a $1B brand faster than any other drug before
Achieved 96% global awareness within 3 years of launch
Global Branding “Score Card”
STRATEGY(insights, positioning)
MESSAGE(copy, language)
VISUAL(logo, color, design)
TONE
RESULTS
Better sex: a positive promise ALL men can aspire to
All men can aspire to better sex —without having to admit failure
Manly, frank, with integrity
Exceeded all targets — from awareness to sales
Pele becomes the Brand symbol —and living embodiment of a man who is sexually vital
Summary and ReviewWhy Global?
Global megabrands — the most valuable in the world
Singular positioning
Common values
Clear, consistent identity across markets
Strong presence in major markets
Greater control
Greater synergy
Cost efficiencies
Better best practices sharing
Thank You
Slides created by Jacquie Clifton DeVitaContent reused with permission.
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