Danger in staying the course for Theragran

Bristol-Myers Squibb multivitamin Theragran is one of China's true brand pioneers. When Theragran first went on sale 15 years ago, the idea of taking a man-made pill to supplement your diet was not only new, but also radically different to the prevailing medical ethos which stressed the importance of combining natural ingredients.

Theragran's initiative paid off, however. The far-reaching social and economic changes that started to take hold in China during the '90s fostered new attitudes and new audiences and, slowly, the multivitamin concept started to take hold. Like other brand pioneers such as Motorola, which did the same for mobile phones, Theragran effectively created a new category, and by defining it, went on to lead it.

Theragran today, however, is suffering the fate of many of its contemporaries, seeing its share eaten away by younger rivals with fresher marketing plans, such as current market leader Centrum from Wyeth, making the incumbent look old-fashioned. The turning point for Theragran came in 2003, when the Sars outbreak jumpstarted both major demand and competition in the sector. More than 20 new brands entered the market in the space of four months, while 2003 sales soared 30 per cent.

The category, set to double in volume over the next five years, has been enjoying healthy growth rates since then, far beyond the levels recorded in mature markets. The sector is expected to remain vibrant, bolstered by China's aging population and the 2008 Olympics, expected to bring leisure issues, including awareness of health and nutrition, to the fore. Theragran remains well-placed to take advantage of this. It has lost its lead, but only because consumers have found a more attractive alternative, not because they lost trust in the brand.

While the multivitamin market is experiencing growth mainly from urban office workers, sales are still tiny compared to traditional remedies, promising a huge opportunity to marketers who get it right. Now is the time for Theragran to re-energise its marketing and present a fresh alternative of its own.