Building up a brand in an unprecedented environment

Building up a brand in an unprecedented environment

Nov.2016

A.Vogel in Greece

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1. Introduction

2. The country: Greece [& Cyprus]

3. The organization: ICP

4. ICP„s strategy and implementation

5. Conclusion

A.Vogel Brand Case Study

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“History” / starting point 2009 A.D.

1.1

We are not allowed to forget our boundary conditions, and at the same

time we have to keep handling “noise” caused by external factors.

A.Vogel Brand Case Study

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A.Vogel Brand Case Study

1.2

Seven years ago we started structuring a new

for the local standards model of organization,

to deliver solutions to the health and beauty

market. Some people said it couldn‟t be done!

“When the going gets tough,

the tough get going” Wall Street motto applicable to the current tough Greek

reality

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A.Vogel Brand Case Study

1.3

1. WHO: ICP

2. WHAT: Penetration / sustainability / growth of A.Vogel brand

in Greece and Cyprus

3. WHERE: Greece and Cyrpus

4. WHEN: 2009 onwards

5. WHY: Function of [tradition, innovation, quality]

6. HOW: People mainly – because everything in life is

developed / applied by people

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ICP has managed to deliver Growth through: • disruption / “my way or highway” [Pat Riley]

• innovation and

• adaptability

1.4

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The most rewarding things you

do in life are often the ones that

look like they cannot be done.

Arnold Palmer

1.5

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1.6

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Acropolis of Athens: the core element of the cradle of

western civilization

A.Vogel: the core element of both Bioforce and A.Vogel

brand

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The country

2.1

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[The bright side of it]

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2.2

Greece‟s outlook / key facts

• Even a “blind” person can easily realize that Greece is a place of

testing “innovative” policies.

• Population 10,8 million

• GDP: 170 billion € [30% less than the beginning of crisis]

• Number of pharmacies 10.300

• Average annual turnover of pharmacies has gone down to slightly

above 400K € in 2015, from more than 700K € back in 2009, (fall in

the range of 40%)

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Parameters / factors of the performance evaluation of a

partner:

- Quantitative: - Years of cooperation

- GDP per capita variation

- Population of the country

- Qualitative: - Psychology

- Stability of the country / market and

risks associated

2.3

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ICP Profile ICP commercializes top notch parapharmaceutical products of proven quality, safety and efficacy.

Company Background:

• Founded: 2003

• Based in Moschato, 5km from Acropolis

• Golden section of mgt by objectives and mgt by example

• 24 Employees, 16 of which with University degrees

• Subdistributors: In Thessaloniki – 8 people (5 salesmen), Crete and Cyprus

Portfolio of Innovative Products

10.300 pharmacies, out of which >3000 are ICP‟s customers

Values:

Integrity and Quality = Consistency and Continuity

Mission:

To offer safe, effective and or premium quality products to our customers / end-consumers in the area of nutritional /

food supplements and parapharmaceuticals in general so as to fully cover their needs building a trustworthy and long-

lasting relationship. To efficiently support our direct customers (pharmacists) contributing substantially in strengthening

/ enhancing their operation.

Vision:

To position / establish the brands of its portfolio in the market as the first choice in their respective

categories and as a result to be regarded as the most reputable supplier in the field

3.1

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Sales / scientific team of 13 persons (sales & medical

rep) for Central-Southern Greece (external distributor

for areas of Northern Greece & Crete)

- Personnel visits both pharmacies and doctors

- 2 people dedicated to doctors in private hospitals

- Person who educates staff of key customers and

communicates the brand values to consumers in large

POS

What substantially matters in an organization is whatever

crosses its borders

3.2

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ICP has “adopted” Alfred Vogel’s philosophy

“We do not sell products – we offer services

of high quality to both mid-customers and

end-consumers.” [i.e. diffusion of knowledge

/ communication and relationships]

3.3

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3.4

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Ecosystem of ICP:

Besides both suppliers and customers

- Internal: Direct: - Management

- Sales force

- Business development

- Marketing

- Warehouse

Indirect / outsourcing:

- Legal

- Logistics

- Regulatory

- Accounting

- IT

- Media / SoMe 3.5

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Ecosystem of ICP:

- External: - Market / end consumer

- Competition

- Regulatory authorities

- Taxation / VAT

3.6

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ICP adds significant value and support as a strategic

partner to its customers and end-consumers

People: we value people at every level who lead by example, take pride in what

they do and inspire others.

Teamwork: we value working together to achieve common goals which is the

foundation of our success.

Proven track record: demonstrated through past performance.

Able to deliver an affordable solution without complexity: Ad-hoc brand

management.

Flexible and bespoke: listening to the exact needs.

Work ethic: committed to excellence and how we achieve it.

Integrity: we do what is right for our customers, clients and ourselves.

3.7

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Our strong corporate values drive our business and

we seek the same values in both our customers and

suppliers

3.8

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VISIONARY

We think differently and are not afraid of

competition.

KNOWLEDGEABLE

We have – considering our size – the strongest

team in our field. Our language is confident but

friendly. We avoid jargon and put the customer

first.

TRUSTWORTHY

We are honest, approachable and engaging. The

trusted company.

HUMAN

Our world revolves around our customers and

their needs.

3.9

A.Vogel Brand Case Study

ICP manages a wide portfolio of top-notch products.

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Even in this turbulent business environment

we do not stop investing:

Internally: - people

- infrastructure

- IT

Externally / in an organization what really matters is what it

crosses its borders:

- marketing

- SoMe / particular emphasis

If adjustment of costs is necessary this does not affect

quality of service.

3.10

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MARKETING ACTIVITIES

A. ACTIVITIES MATERIALIZED RECENTLY:

• Online marketing

• Offline marketing

• Above the line

• Below the line

B. Activities under consideration:

• Same modus operandi taking into consideration certain constrains / restrictions

Focus on quantifiable vs. non quantifiable means of marketing

Evaluation of ROI = f[money, time, opportunity cost, effort, commitment]

3.11

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SWOT analysis S [trenghts]:

- The personnel of the company / synthesis of the team

- The financial stability [zero debt]

W [eaknesses]:

- Different sites [mgt and warehouse]

- Lag in execution / implementation through sub-distributors

O [pportunities]:

- Shift of consumers towards relative affordable products of undisputed

quality

- perception of the brand by still growing customer basis / pharmacists

T [hreats]:

- Ongoing crisis with considerable reduction of the purchasing power

- New local players in the segment / local pharma companies adopt the

widely applied trend of creation of OTC business units

3.12

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Needs of the market / industry

4.1

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Strong brands have to have clear positioning.

A.Vogel brand is positioned between medicines and

food supplements primarily because it is backed by

science.

4.2

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4.3

ICP vs A.Vogel

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With holistic and coherent approach

With clear policy / planning

With the right execution / implementation

With the right people and mindset

4.4

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The Strategy

For a company to succeed, a clear

pathway aligned to its business

plan and strategy is key.

The strategy is a vital component in

the Company armory. It should

have equal value and importance to

the brands and their protection.

4.5

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Where does the strategy start?

Drill back down to what is important

and what is valuable and start with

two questions:

What is my product?

Where/what are the opportunities?

Sounds simple but....!

4.6

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The wider strategy What defines each? Who controls and regulates them?

Our strategy is a three dimensional tool.

Level 1: Commercial – What is this we want to make happen?

Level 2: Geographical – Full coverage

Level 3: Steps - What are the clearly and precisely defined steps [KISS] to

achieve this?

4.7

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The wider strategy “If you know the enemy and know yourself, you need not fear the result of a

hundred battles.

If you know yourself but not the enemy, for every victory gained you will also suffer

a defeat.

If you know neither the enemy nor yourself, you will succumb in every battle.”

Sun Tzu, The art of War

4.8

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OPTION #1

If You sit down by a river

bank, and wait long

enough, You‟ll see bodies

of Your enemies float by

4.9

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OPTION #2

Master completely a

different way of marketing

4.10

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OPTION #3

Create ecosystems

Ecosystems are determined by parameters

- Fully controlled

- Semi / quasi controlled

- Non-controlled

The goal has to be the optimization of the controlled

and semi-controlled parameters so as to

counterbalance the potential negative input from the

non-controlled ones.

4.11

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OPTION #4

Be the disruptor

4.12

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OPTION #5

“Be the disruptor in things you control.

Be adaptive to things you do not control.”

- SM

4.13

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A yearly planning cycle driven mainly by Marketing

IMC [internal model control] vis a vis planning /

perpetual trial and error process

Brand

plans

Minor

adjustments

Trimester

modifications

Brand

reconsideration

4.14

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4.15

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Right people / organization & mindset / implementation

- execution

4.16

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The final part of the jigsaw – tactics – the way we implement it!

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Brand overview / SWOT analysis

S [trenghts]:

- Knowledge of the caliber of the brand and its specific weight

/ “second nature” by ICP’s personnel

W [eaknesses]:

- Regulatory status

O [pportunities]:

- Optimization of the two parameter function of pricing and

quality.

- Perception from customers and consumers.

T [hreats]: Constraints for efficient marketing due to regulation

and operational gross margins

4.17

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Dominant factors for the growth of the A.Vogel brand

in our market:

- Regulatory compliance [prerequisite]

- Margins [financially coherent P&L] for supporting the

efficient awareness and availability of the brand

4.18

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CONCLUSIONS • People – People – People: the cornerstone / most critical parameter

Give me the right people and I will accomplish [almost] everything. - SM

[Give me a place to stand and I will move the world – Archimides]

• Requirement for common sense [which is not that common], both inside and

outside of ICP’s ecosystem

• Capitalization on past experiences incorporating other partners’ policies

“Man has always learnt from the past. After all, you can’t learn history in

reverse.” – SM

• “Ta panta rei” = [everything is under perpetual variation ie. nothing is constant /

stable = dynamic and not static] -Heracletus

• “I am pessimistic because I am pragmatic and optimistic because I dream.” -

Noam Chomsky

5.1

A.Vogel Brand Case Study

Thank you!