Bayer Aspirin: History of Advertising and Business Practices - Research Paper Example

Here Here with and number here here Bayer Aspirin, a history of advertising and review of businesspractices and use Bayer Aspirin has been a household name for 112 years; this product has been shown to be useful for many health reasons and is a long standing staple of many people’s medicine cabinets. The use of advertising for this product and consequently understanding its sales appeal is important to understanding the business practices of Bayer. In the following paper the company history, the product history, advertising history and marketing practices surrounding Bayer Aspirin will be addressed. The journey through highly successful advertising practices and the obvious benefits attached of Aspirin, specifically Bayer Aspirin is one of note. Bayer AG according to the Bayer AG website was originally founded as, “The general partnership "Friedr. Bayer et comp." was founded on August 1, 1863 in Barmen - now a district of the city of Wuppertal - by dye salesman Friedrich Bayer (1825-1880) and master dyer Johann Friedrich Weskott (1821-1876). The object of the company was the manufacture and sale of synthetic dyestuffs.” (“Bayer AG” 1) Originally medicines were not something that this company desired to promote and it did quite well in the promotion of its synthetic dyes. Growing from three original employees to over 300 by the time it became a joint stock company. This rapid growth was almost directly attributable to the success and ability of its founders in marketing and advanced approaches to products. “Sterling Drug benefited from World War I. Because supplies of drugs from Germany were cut off by the Allied blockade, they set up the Winthrop Company to manufacture the active ingredients. After the war, Sterling acquired the American Bayer Company. They established a separate subsidiary, the Bayer Company, to market Bayer Aspirin” (“Sterling Drug, Inc.” 1). It was not until 1994 that Bayer AG was able to reacquire the full rights to Bayer Aspirin. These rights gave Bayer AG full control over Bayer Aspirin in Canada and the United States. Another step in 2003 enabled Bayer AG to better maintain its large number of acquisitions and product names while reducing liability to the parent corporation. “Bayer AG transformed into a management holding company and the related hive-down of business operations into legally independent companies, the number of employees dropped from 36,010 at the beginning of 2003 to 590 on December 31, 2003.” (“Bayer AG (BAYRY)” 4). This reorganization reduced the direct workforce and enhanced the ability of the parent holding corporation to better separate assets as well as increase overall profitability. Aspirin was the result of massive efforts towards research within the original Bayer organization and in 1899 Aspirin® was developed by Felix Hoffman and quickly became known as the drug of the century. According to Massachusetts Institute of Technology Lemelson program, Hoffman’s “miracle drug” was the result of solid research and hard work. On August 10, 1897, he succeeded with this endeavor: By combining acetylating salicylic acid with acetic acid, he created acetylsalicylic acid, or ASA, with the right characteristics for consumer use. The substance had the ability to relieve fever, pain and inflammation, all without upsetting the patient's stomach (“Aspirin” 1) Prior efforts had made this a difficult drug for people to use as it had irritated the stomach severely. Now it was able to be used regularly and did not cause the irritation to the stomach that had occurred before. The advertising behind this wonder drug also showed the desire of the manufacturers to promote it as in 1917 patents regarding the manufacture of this drug expired. In July 1916 a journal titled, The Pharmaceutical Era included the following information regarding the advertising campaign being conducted by The Bayer Company, Inc. This journal stated that, “The Bayer Company, Inc., which for some months past has been manufacturing aspirin, powdered and in tablets, in this country, has completed plans for a national advertising campaign in which newspapers in cities of 20,000 and over will be used to popularize Bayer tablets of aspirin”(Kennedy 277). In addition to the advertising campaign carried out by Bayer at this time, they initiated the use of “branding” and began distributing the tablets in tin boxes with the Bayer company logo across the top. One of the early Bayer Aspirin tins can be seen as follows, ("Bayer Aspirin eBay static image") The interesting part of this is the branding that occurred before it was common practice. This approach to advertising outside of normal print versions showed a desire to corner the market regardless of patent rights. One ad from 1949 shows Bayer Aspirin “working in two seconds!” ("1949 Bayer Aspirin Ad") Another newspaper advertisement for Bayer Aspirin lauding the “fast relief” of Bayer Aspirin dated 1959 can be seen here, ("1959 Bayer Aspirin") Original advertising may have had complications due to what was perceived as fraudulent advertising, however, it should be noted that at a time of innovation when there were “miracle” cures being pushed that potentially blinded people the various approaches for Aspirin while possibly incorrect were not necessarily wrong as Aspirin has been found to be one of the best available pain medications given its ingredients and the dosages allowed. According to one article in a national publication, “Patients who have suffered a stroke or heart attack, or are at risk of these conditions, can be prescribed a daily low dose of aspirin because it reduces the risk of clots forming in the blood, according to NHS Direct”(“Health News” 1). Additional health benefits are outlined as well. In 1958 the Bayer Cross, an illuminated sign directly reminiscent of the Bayer Cross logo was set up. “The new illuminated Bayer Cross is not quite as large as its predecessor. It has a diameter of only 51 meters, instead of 72. The giant framework is supported by two 120-meter-high steel masts. In 1958, its 1,710 bulbs shone with a total power output of 65,000 watts - making the individual letters visible from a distance of five kilometers”(“Bayer Cross” 1). The Bayer Cross was originally installed in 1933 however, was dismantled as a result of World War II. “Today there are more than 47 large illuminated advertising sites featuring the Bayer logo, including stationary facilities such as sculptures, as well as revolving Bayer Crosses and large-dimension lettering on the outer facades of buildings” (“Bayer Cross” 1). Ideas such as this have allowed Bayer to gain and hold a premier position as a global conglomerate designed to further medical and pharmaceutical sciences. In the United States however, Bayer AG has additional problems and in 2000 launched a million dollar consumer education campaign to settle Federal Trade Commission (FTC) charges that there have been unsubstantiated claims made in a series of Aspirin ads. “The Bayer ads claimed that a regular aspirin regimen is appropriate for the prevention of heart attacks and strokes in the general adult population. The FTC alleged that since some adults are less likely to benefit from a daily aspirin regime, and some may suffer adverse health effects from taking aspirin on a daily basis, the ad claims were unsubstantiated” (“Federal Trade Commission” 1). The result of this was that advertising from Bayer now includes the phrase, “Aspirin is not appropriate for everyone, so be sure to talk to your doctor before you begin an aspirin regimen.” An example of this ad can be seen at Costco.com, ("Costco.com") While Bayer still uses phrasing like, Aspirin is recommended by doctors for use to fight cardiovascular events, like recurrent heart attacks or stroke, they do include a lengthy set of disclaimers essentially covering themselves legally. Interestingly, due to their advertising approaches early on Aspirin is still seen as a miracle drug and many people take Aspirin simply because they believe it does work miracles and this is in no small part due to the massive advertising campaigns throughout the years. One article of note in the Montreal Gazette from 1983 showed that Bristol Meyer the maker of Tylenol based products and Sterling Drug Inc. the subdivision manufacturing Aspirin for Bayer AG had been having very expensive battles over pain killer supremacy. The ruling from the FTC basically slapped both of their hands and told them what they were doing was wrong. “The FTC said Bristol Myers spent about $20 million a year on advertising Bufferin, Excedrin and Excedrin P.M., between 1971 and 1973 while consumers bought $85 million worth of those drugs annually during that time. Sterling spent an average of $26.7million a year advertising…average annual retail sales for the products totaling $73.5 million” (“Anonymous” 1). Advertising battles are not unheard of however; this one seems to be incredibly expensive for the returns generated at the same time. Currently Bayer Aspirin is a household name brand that is a part of a company -Bayer Group- that in “2010 grossed sales of 35,088 million Euros’” (“Annual Report” 2010 2). This organization now contributed to numerous areas of research in medical and pharmaceutical approaches. This is a long stride from the company originally began with three employees and manufactured fabric dyes. With constant innovations and new ad approaches Bayer Aspirin stands to be a household name for many years to come. One modern example of the advertising approach taken with Bayer Aspirin are the stories of several individuals being video recorded with emphasis on the sadness caused by the potential loss of each of these individuals, though each of them has lived through their separate ordeals it is still a heartwarming approach to advertising. There are seven stories in all ranging from Marcie S. to David F., and each was having a heart-attack and chewed or took Bayer Aspirin which helped save their lives. Now they are all on a regimen of Aspirin and thank Bayer Aspirin for their continued existence. One story states, “Marcy took aspirin while she was having a heart attack at 30,000 feet. The paramedics told her it helped save her life. Now she’s on a doctor directed 81mg aspirin regimen to help prevent another one. It’s something she does for herself, so she can do more with her family” (“Aspirin Advertising” 1). Stories like these surface regularly in the news and via the internet and only serve to bolster the prestige that Bayer Aspirin sees as a result. Summary: In conclusion we see that with strong advertising and a solid product it is possible to promote longevity of a brand name. In this case for over 112 years it has been a successful and profitable brand name and product. Bayer AG has proven over time that they are resourceful and capable when it comes to managing conflict on a global and regional scale with regards to the company itself and the product. With the hardships that the World Wars brought to the company and the lawsuits and rulings from government regulatory agencies many companies may have had reason to collapse. In this case due to the use of advanced techniques of advertising, and large amounts of money being spent spreading the idea that is Bayer Aspirin there has been nothing that has been able to stop this products rise and continued success. It would seem that Bayer Aspirin in some ways represents the idea of success in advertising and is most definitely an idea that should be emulated for success. Works Cited "1949 Bayer Aspirin Ad." Period Paper, Original Antiques and Fine Art. Web. 30 Apr 2011. JPEG.file "1959 Bayer Aspirin." Adclassix.com. Web. 29 Apr 2011 JPEG.file Annual Report 2010,. "Bayer science for a better life." 2010: 1 Web. 30 Apr 2011. Anonymous,. "The Best Pain Reliever? Drug Firms ordered to show proof in ads.." The Montreal Gazette. 14, July 1983: 1, Web. 30 Apr 2011. Aspirin Advertising,. "New Bayer Low Dose Aspirin Advertising." Expect wonders. 2010: 1 Web. 30 Apr 2011. Aspirin,. "Inventor of the Week, Felix Hoffman." Massachusetts Institute of Technology Lemelson program. MIT, 2005. Web. 29 Apr 2011. Bayer AG,. "History The early years (1863–1881)." Bayer: Science for a better life. Bayer AG, 15, July 2010. Web. 29 Apr 2011. Bayer AG (BAYRY),. "Bayer AG Financial Statements 2003." Bayer AG, 2003. Web. 29 Apr 2011. "Bayer Aspirin eBay static image." Sports Linkup. Web. 29 Apr 2011. JPEG.file Bayer Cross,. "A Technological Sensation: the Largest Illuminated Sign in the World." Bayer AG., 2011: 1. Web. 29 Apr 2011. "Costco.com." Bayer® Low Dose 81mg Aspirin Regimen . Web. 30 Apr 2011. JPEG.file Federal Trade Commission,. "The Million Dollar Question for Consumers: Aspirin Regimen Therapy - Is It Right For You?." Federal Trade Commission, Protecting Americas Consumers. N.p., 11, January 2000. Web. 30 Apr 2011. Health News,. "Aspirin: The painkiller's many health benefits." The Telegraph. The Telegraph Media Group, 27 January 2009. Web. 29 Apr 2011. Kennedy, The Pharmaceutical Era. 49. 1916. 277. Print. Sterling Drug, Inc.. "Sterling Drug, Inc. Records, 1867-1995.." Smithsonian Institution, National Museum of American History : Archives Center., 2011: 1. Web. 30 Apr 2011. Read More