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Main Subject - Branding Blunder—Creative Technology's Mistakes
Recently I was interviewed by Marketing Magazine, a local magazine in
Singapore that keeps close tabs on the marketing strategies companies of
all sizes use to reach out to their consumers. I thought that this is
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
an excellent case study of how important positioning, branding and
marketing are for your business.
For their feature story on Branding, the magazine asked for my comments on Creative Technology’s (renowned for i
For their feature story on Branding, the magazine asked for my comments on Creative Technology’s (renowned for i
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
s sound card and MP3 players,
and most recently for its legal tussle with Apple) branding efforts.
While I’m a fan of Creative, I have to say that their branding leaves
much to be desired. In particular, comparin
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
g the arch rivals of Creative
Tech’s MP3 players vs. Apple’s iPod, it is easy to see where Creative’s
branding efforts had gone wrong. Below is a simple comparison of its
rival’s branding moves.
Apple
(A ma
Apple
(A ma
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
keting and branding savvy company)
1. Understands the target market—young people want to be hip and cool. So they created a hip and cool positioning for iPod.
2. Very sleek and minimalist cover design—enhan
1. Understands the target market—young people want to be hip and cool. So they created a hip and cool positioning for iPod.
2. Very sleek and minimalist cover design—enhan
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ing the hip and cool
image.
3. Great ultra hip and cool TV ad, using black dancing silhouettes (all the better to contrast with Apple’s corporate white) against a colorful background + hit song of the moment
3. Great ultra hip and cool TV ad, using black dancing silhouettes (all the better to contrast with Apple’s corporate white) against a colorful background + hit song of the moment
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
‘Hey Mama soundtrack performed by
one of the hottest groups, the Black Eyed Peas.
4. Very focused in the beginning, starting with only one color, one model: The white iPod. This makes it very recognizable and
4. Very focused in the beginning, starting with only one color, one model: The white iPod. This makes it very recognizable and
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
easy to brand.
5. Special edition signed by U2 (very hip and cool band).
6. Featured in many hip TV shows.
Creative Tech
(A tech focused company)
1. Don’t understand their consumers’ desires, p
5. Special edition signed by U2 (very hip and cool band).
6. Featured in many hip TV shows.
Creative Tech
(A tech focused company)
1. Don’t understand their consumers’ desires, p
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
eferring to focus on
product features, etc (appealing to logic, instead of emotions) and with
no strong positioning.
2. Tacky cover designs. Responding to iPod’s sleek design, they asked their own engineers
2. Tacky cover designs. Responding to iPod’s sleek design, they asked their own engineers
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
to design their new cover design! Huge mistake!
Naming their products ‘Zen’ doesn’t mean that they will inherit the Zen
essence.
3. Bizarre TV ads that consumers can’t relate to: one series of ad went along
3. Bizarre TV ads that consumers can’t relate to: one series of ad went along
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
he lines of ‘something you really need’ and ‘Panda Rhapsody’, an
ad using a panda bear listening to its MP3 player.
4. Unfocused and fragmented: Zen Jukebox, Zen Nano, Zen Touch, MuVo Slim, MuVo TX.. etc (con
4. Unfocused and fragmented: Zen Jukebox, Zen Nano, Zen Touch, MuVo Slim, MuVo TX.. etc (con
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
using consumers with too many choices)
5. Special edition signed by Creative Technology’s CEO Sim Wong Hoo… (what?!?)
6. Almost non-existent.
While Creative Technology first came up with MP3 players,
5. Special edition signed by Creative Technology’s CEO Sim Wong Hoo… (what?!?)
6. Almost non-existent.
While Creative Technology first came up with MP3 players,
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
they lost out
their pioneer status advantage due to incompetent branding and
marketing strategies. Apple has always been an innovative company when it comes
to technology. But more important than that, it has alw
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ys been a
company that is close to their consumers, understanding their desires.
On the other hand, Creative has no strong retail experience. Its earlier massive success, the SoundBlaster, was a technological brea
On the other hand, Creative has no strong retail experience. Its earlier massive success, the SoundBlaster, was a technological brea
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
through,
but it was not really a retail consumer product. Most people who buy
computers don’t know whether the soundcard inside their CPU is a
SoundBlaster or not. Of course, there are those who demand technologi
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
cal
excellence and insist on having the SoundBlaster. Unfortunately, they form
the minority.
Sadly for a hip product such as an MP3 player, Creative chose to take the same approach—focusing on technology only, i
Sadly for a hip product such as an MP3 player, Creative chose to take the same approach—focusing on technology only, i
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
stead of combining it
with a massive branding and marketing campaign. It is important to note
that Creative’s MP3 players have received many awards and critical
acclaims. BUT it sorely lacked the ‘street cred’, t
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
e approval from the
target market. How many times did you hear someone say “I really want to
get the Zen / MuVo / Jukebox”? You don’t hear much of that because they
all want an iPod.
That is why Apple’s iPod hol
That is why Apple’s iPod hol
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
ds near to 90% market share. Just take a
look at the TV ads from both rivals and you’ll understand what I mean by
Apple understanding the consumer’s mind, while Creative missed it
totally.
So the next time you t
So the next time you t
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ink that by focusing only on delivering the best
product, you will be guaranteed success, think again. Creating powerful
positioning, branding and marketing strategies for your business can
make a HUGE difference
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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