Alternative-branding a PBA option?

Pascual Laboratories played in the PBL from 2007 to 2010 then moved to the PBA D-League for the 2011 Foundation Cup before finally, ending its love affair with basketball. But if love is sweeter the second time around, who knows? Maybe, Pascual may be back in the game sooner or later.

The other day, Pascual Laboratories chairman emeritus Dr. Abraham Pascual spoke about the pharmaceutical company’s innovative orientation. He said thinking out of the box has led to several breakthroughs in Pascual’s history that goes back to over 60 years ago. It showed the way in uni-branding (marketing generics as a way to bring down medicine prices), in putting homegrown natural phytomedicines on the shelves and in developing products with wide-reaching health benefits.

Some of Pascual’s products are Poten-Cee, Pharex, OraCare non-alcohol mouthrinse and herb-based Ascof Lagundi. Pharex and Ascof Lagundi were the brands carried by Pascual in the PBL and PBA D-League.

“We’re very proud of our products,” said Pascual. “For instance, Ascof Lagundi, which is our cough medicine, was developed by the Department of Health but we took it over because the private sector is better equipped for marketing than government. We pay our government a royalty for the medicine so the fee goes back to our people. OraCare doesn’t use alcohol and that’s a big difference.”

Pascual said he saw in basketball a viable marketing vehicle. “We realized that in the PBA D-League, the successful teams had farm links with the PBA,” he said. “Since we weren’t affiliated with any PBA franchise, it became difficult for us to recruit players.” Because the D-League had no draft system in the formative years, the balance of power was heavily skewed. After one conference, Pascual decided to withdraw from the league. Now that a draft system has been put in place, it’s possible Pharex and other companies might take a second look at competing in the league.

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What’s interesting for Pascual is the possibility of alternative-branding in the PBA. “Why not allow a franchise owner to sell the branding rights to his team on a conference-to-conference basis?” he wondered. “It will be like selling billboard space. For the PBA, it could open up opportunities for more franchises. The PBA is a solid advertising vehicle with tremendous media mileage. I’m sure companies will grab the opportunity to be visible in the PBA. The problem is some companies may not be able to afford the franchise fee. A way in is to allow the lease of branding rights.”

Pascual’s innovative idea merits serious consideration. An advertising company, for instance, may purchase a PBA franchise and own a team. If alternative-branding is allowed, the advertising company may defray the cost of operating a franchise by leasing the branding rights of its team to clients on a conference-to-conference basis.

The advertising company may lease the branding rights to a pharmaceutical company for the Philippine Cup, a soft-drink company in the Commissioner’s Cup and a cement company in the Governors Cup. The only restriction is the brands should not compete with any product being promoted by other team owners.

“RFM is a company that has a long history with the PBA,” said Pascual. “ They may not want to rejoin the PBA on a long-term basis but why not give them a chance to market Selecta or some other product in the PBA on a conference-to-conference basis by signing a lease agreement with a franchise owner?”

In a sense, the PBA allows alternative-branding but the products must be owned by the franchise holder. An example is the San Miguel Group which has used Magnolia, San Miguel Beer and lately, Petron as team brands. In the Pascual suggestion of leasing rights, the products are not necessarily owned by the franchise holder.

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Alternative-branding may also open doors for future team owners in the PBA. Once a company experiences the excitement of competing in the PBA for a conference, it may lead to owning a franchise. It’s a way to introduce a company to the PBA without making a long-term commitment. My view is once a company realizes the marketing value of promoting a product through the PBA, it will seriously consider making an investment in the league. The option could be a highway to expansion.

Multi-branding is another possibility where a team may “sub-lease” its sponsorship with another entity while retaining its original product. For instance, a team may enter into an agreement of a conference partnership with an LGU so that Air 21 could be promoted as Laguna Air 21 or Rain Or Shine could be marketed as Pampanga Rain Or Shine. This could create a home-base following for a team like how it was in the defunct MBA. A conference partnership may also be made with another company so that Meralco could be promoted as Meralco-Maynilad. The difficulty with multi-branding is compromising focus. But if that’s something a team owner can live with, why not give him the opportunity to explore it?

The way of the future lies in innovation. Pascual’s success story is proof that thinking out of the box can bring unprecedented positive results in business. With the PBA Board of Governors getting ready for its first planning session under incoming chairman Ramon Segismundo of Meralco in Sydney, perhaps an item in the agenda could be brainstorming ideas for innovation.