Building Brand Equity: The Mucinex Story - DTC … Casale Presentation.pdf · Building Brand...
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Building Brand Equity: Building Brand Equity: The The Mucinex Mucinex Story Story Bob Casale June 4, 2009
Transcript of Building Brand Equity: The Mucinex Story - DTC … Casale Presentation.pdf · Building Brand...
Building Brand Equity:Building Brand Equity:
The The MucinexMucinex StoryStory
Bob Casale
June 4, 2009
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Small Company GrowthSmall Company Growth
Compound Annual Growth RateFrom 2003 – 2008: 102%
Philosophy IB, LLP 2008
•2004
•$61
•2005
•$160
•2006
•$239
•2007
•$331
•2008
•$468
•2003
•$14
•REV
ENU
E IN M
ILLION
S
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QuestionQuestion
How did this happen????
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How Did Mucinex Get To Market?How Did Mucinex Get To Market?
Immediate/Extended Release GuaifenesinOld Ingredient Unapproved Rx ProductMultiple Brand Names – Generic Pricing
Drug Delivery Strategy - 12 Hour Duration of Action
Adams filed NDA based on pharmacokinetic studiesSought FDA removal of unapproved productsBridge to OTC monograph for safety
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The Mucinex Story The Mucinex Story –– Extended Release GuiafenesinExtended Release Guiafenesin
Good News – FDA approved product and takes all other single
ingredient products off the market
“Bad News” – FDA approves Mucinex OTC
Opportunity – Consolidate $130MM Rx Market
Real Opportunity -Tap $3 Billion+ OTC market
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Consumer Market Before MucinexConsumer Market Before Mucinex®®
OTCCough/Cold/Allergy
Market
Complex>10 ingredients aloneand in combination
Growing(with Claritin)+25% since 2000
Big$2.8bn annual sales
Crowded45 SKUs each
Sell >$10MM/year
ConfusingTop 40 SKUs=36% of sales
Basic Characteristics
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7 Manufacturers Controlled 70% of the7 Manufacturers Controlled 70% of theCold/ Flu/Allergy Market Cold/ Flu/Allergy Market
Pfizer, Inc. $350M
P&G 290M
McNeil Consumer Products 260M
Whitehall-Robins 260M
Novartis Consumer Health 250M
Schering-Plough 150M
Bayer Consumer 120M
Private Label 500M
20022002
Clutter ReelClutter Reel
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Play Clutter ReelPlay Clutter Reel
mucinex clutter reel.wmv
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Mucinex Success FactorsMucinex Success Factors
Single minded focus
Small experienced team
Rapid decision making
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TimelineTimeline
April 2004…Board approves $20MM advertising spendProjected on-air date…November 15, 2004
May 2004…Qualitative Research, develop positioning, brief ad agencies, select ad agency
June 2004…Quantitative Research, Creative development
July 2004…Quantitative Results (Uh Oh), refine creative, produce animatics
August 2004…Copy test results (Uh Oh), media planning, select campaign, board approval
September/October 2004…produce commercial including animation, worry
November 15…2004…On Air
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Mucinex ClaimsMucinex Claims
THE ONLY 12 HOUR FDA APPROVED EXPECTORANT
Immediate/extended release bi-layer tablets
Relieves chest congestion
Makes coughs more productive
Thins and loosens mucus
Convenient tablet vs. messy syrup
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Single Minded FocusSingle Minded Focus
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Brand PositioningBrand Positioning
Educate consumers that mucus is the “root cause”of upper respiratory problems
Downplay specific symptoms
Simplify in a confusing category
Take Mucus out of the closet
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MUCUSThickExcess Tenacious Thinner Expelled Normal
Head Congestion
Nasal Congestion
Painful Sinuses
Sneezing
Post Nasal Drip
Chest Congestion
Tight Cough
Sinus Pressure
Frequent Cough
Symptoms
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Mucinex Core EquityMucinex Core Equity
Mucinex = Mucus Out
Mucinex In. Mucus Out. ™
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Strategy TestStrategy Test
White Card Concept Test: Mucinex In, Mucus Out
Results:
BELOW AVERAGE
NOW WHAT?????
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Plan of ActionPlan of Action
Say the consumers in the test were stupid and did not understand our brilliance
Make the strategy work we still believed in it
Capitalize on Adams culture
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Creative ChallengesCreative Challenges
Need to make single-minded concept of mucus highly memorable
Mucus is a new and potentially risky story
Present “mucus” in an engaging way
Animatic VideosAnimatic Videos
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AnimaticAnimatic
Shortcut to Mr_Mucus.lnk
Video_ts.ifo
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Mr. Mucus Actively Involves the AudienceMr. Mucus Actively Involves the Audience
Philosophy IB, LLP 2008
•8
•7
•6
•5
•4
•3
•2
1%
6%
17%
30%
27%
15%
3%
0.5%
‘Mr. Mucus’ (6.84)
Average (5.14)
OTC Average (5.46)
•Base: 775 USA - English Animatic ads
Database distribution
Active words
interesting, unique, involving, irritating,
unpleasant, disturbing.
nice, boring,ordinary, soothing,
mellow, weak.
Passive words
Rating scale
Finished Commercial Finished Commercial VideoVideo
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Finished CommercialFinished Commercial
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Initial Results: MucinexInitial Results: Mucinex®® SalesSales3/04 3/04 -- 2/05 (Four Week Total Dollar Sales)2/05 (Four Week Total Dollar Sales)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
3/21/2004
4/18/2004
5/16/2004
6/13/2004
7/11/2004
8/8/2004
9/5/2004
10/3/2004
10/31/2004
11/28/2004
12/26/2004
1/23/2005
2/20/2005
Mucinex SE 20s Mucinex SE 40sMucinex DM 20s Mucinex DM 40s
A dvert ising B eg ins
11/ 15/ 0 4
Source: IRI Cold/Allergy/Sinus Trend Ranking Report, February 2005
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ConsumerAdvertising
Professional Detailing
GeneratesConsumerAwareness
GeneratesProfessional
Recommendations
TrialPurchase
Consumer and Professional:Consumer and Professional:Working Together to Build Trial & ConversionWorking Together to Build Trial & Conversion
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Mucinex Success Factors Mucinex Success Factors –– Part 2Part 2
If it ain’t broke, don’t fix it
Actively utilize knowledge of the consumer
Leverage the brand name through innovation
Married to Mucus VideoMarried to Mucus Video
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Keep Pounding Away At MucusKeep Pounding Away At Mucus
Married to Mucus
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Know Your ConsumerKnow Your Consumer
Of the consumers who use Mucinex…
~90% intend to buy it again~30% try more than one type of Mucinex~70% actually plan their purchase~50% would rather make an additional trip to another store if their store did not have Mucinex
Source: Proprietary on-line research conducted 12/06.
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Fiscal 2007
Fiscal 2007
New Products Fiscal 2007 New Products Fiscal 2007
Fiscal 2006
Fiscal 2006
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Expansion Accelerates in FY08Expansion Accelerates in FY08
Fiscal 2008
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Mucinex Circa 2008Mucinex Circa 2008
Children’s line
Nasal Spray
Max Strength
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ChildrenChildren’’s Lines Line
Consumer Need Mucus and Kids…Perfect TogetherGuiafenesin Bitter…Taste Masking Required
Searched US and Europe for taste masking technologyMini Melts!Unique coating technology sourced from Losan (Germany)
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Launch of ChildrenLaunch of Children’’s Lines Line
Tested on Employee’s Children…No other consumer testing
Launched Traditional Liquid and Mini Melts line
Achieved $30 million sales Year 1
#4 Brand in Children’s Respiratory Market
Mucinex MiniMucinex Mini--Melts VideoMelts Video
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Mini Melt CommercialMini Melt Commercial
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Mucinex Nasal SpraysMucinex Nasal Sprays
Full Force
Effective nasal decongestant“Sensory signal” lets consumer know it is working“12 Hour Concentrated Vapor Technology”
Moisture Smart
Effective nasal decongestantSpecially formulated to soothe irritated nasal membranes“12 Hour Membrane Hydration Technology”
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More CommercialsMore Commercials
Nasal Spray
Max Strength
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Maximum Strength MucinexMaximum Strength Mucinex
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More CommercialsMore Commercials
Nasal Spray
Max Strength
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The Future The Future –– BeforeBefore
Other Mucinex Rx and OTC combinations utilizing extended release guaifenesin platform
Continued penetration of US market
Global expansion
New Rx and OTC respiratory products
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The Future The Future -- AfterAfter
Sold for $60 cash per share37% premium to recent share price250% premium over IPO price of $17 per share in July 20057 times FY07 sales
Acquirer Reckitt BenckiserGlobal leader in household products businessSales in 180 countriesWill add significant value in globalizing MucinexWill culture of innovation survive?
