BRAND PROFILE

Tiger Balm:
Earns its stripes in China
Tiger Balm is one of the world’s most significant topical analgesics. The brand remains a consumer
favourite in Asia thanks to its connection with traditional Chinese medicine and it performs well alongside
more modern presentations. Tiger Balm has had mixed fortunes in Asia but has retained its status as a
higher-tier brand and in 2007 posted growth in many of its markets. It continues to show promise for the
near future despite high-level competition from domestic and international players trying to recreate the
successful Tiger Balm branding formula.

topical analgesics. Haw Par’s efforts are expected to

Tiger Balm: Key facts
escalate in the near future to make the most of this
Owner: Haw Par Healthcare (Singapore) beneficial environment and gain a larger foothold in
Global OTC sales 2007: US$36.3mn, +5% the market.

Asia OTC sales 2007: US$23.5mn, +4.5%

Presentations: Tiger Balm Red, Tiger Balm White, Tiger
INDIA
Balm Ointment, Tiger Balm Muscle Rub, Tiger Balm Tiger Balm is marketed in India through a j-v with Elder
Medicated Plaster, Tiger Balm Arthritis Rub
Pharmaceuticals, and is the sixth-largest topical analgesic
in India, posting low-level growth over the past few years.
Tiger Balm has shown continuous growth in Asia for a
Tiger Balm has had limited local promotion over recent
number of years. Buoyant sales in China helped the brand
years. Historically there have been high volumes of
post overall growth despite declining sales in a few of its
copycat presentations and Elder Pharmaceuticals has
smaller Asian markets.
previously been reluctant to increase A+P investment for
Tiger Balm when a number of presentations with similar
CHINA sounding names threatened to capitalise on its
Over the past few years Haw Par’s focus has been directed established branding and adspend. It is estimated that
towards driving sales in two of Tiger’s key markets, China these me-too presentations have eroded 30% of Tiger
and India. Despite being a foreign brand, Tiger Balm fits in Balm sales over the past five years. However, since
with Chinese consumer preference for TCMs and stands successfully blocking production of the majority of the
out with its highly-recognisable branding. Recently in
China there has been heavy investment in mass media FIG 1 TIGER BALM:
A+P for the full Tiger range including Tiger Balm, Tiger Asian OTC sales by country 2007
Balm Muscle Rub and Tiger Balm Medicated Plasters. The
effect of this has been evident, as the brand continued to China 34% •
grow above the rate of its competitors in 2007. Even so, India 20% •
Tiger Balm still lies just outside the top-five ranking topical Malaysia 9% •
analgesics. Since the implementation of Order 24 in 2007, Singapore 9% •
systemic formats have been more heavily regulated than Hong Kong 8% •
Japan 8% • •
DATA SOURCE: Nicholas Hall’s Insight based on industry estimates
(MSP), 12 months to December 2007 unless otherwise stated
Others 12%

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JANUARY 2008 3
TIGER BALM
copycats Elder drastically increased A+P for Tiger Balm in
2007. Elder put its marketing skills behind the brand by
promoting the whole range via mass media. To attract
new consumers, a 3g tinlet was launched to encourage
trial purchases. Elder is predicting the activity will drive
growth by over 30%.
In recent years Elder Pharmaceuticals has stepped up its
OTC operations to concentrate on “fast moving health
goods” including pain management, hair, skin and oral
care presentations. As part of this strategy, Elder
introduced several initiatives to boost the fortunes of Tiger
Balm following the brand’s previous low-key status. Tiger
Balm White was introduced into the country in 2005,
followed by a back rub, joint rub and medicated plasters
over 2006 / 2007. Tiger Balm Red and Tiger Balm White
both see sales peaks in the monsoon period (June – July)
and winter (December – February) with line extensions
driving sales in the rest of the year.
Tiger Balm’s geographical roll out will see it introduced in
India’s neighbour, Pakistan, in the near future – where
Elder will license out distribution to an overseas partner.
SINGAPORE
Singapore is Tiger Balms home market and remains
important to Haw Paw despite the fact other markets
have overtaken it in terms of value. Tiger Balm’s domestic
fame has not diminished and it has won numerous
accolades over the past few years including Singapore’s
Most Valuable Brand Award for 2005, Heritage Brand
Award 2005 as well as high ranking in Singapore Brand
Awards 2006.
Line extension Tiger Balm Neck & Shoulder Rub was
launched in Singapore in 2005 as part of Haw Par’s efforts
FIG 2 Tiger
Balm White
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4 JANUARY 2008
FIG 3 Line extension Tiger Medicated Plaster
takes a small share of Tiger brand sales
to reach a more youthful consumer base than the
traditional balm formula attracts. The launch coincided
with TV ads featuring a young, hard-working office worker
and the tagline, “A massage on the go”.
JAPAN
Tiger Balm is present in the lower-tier of the topical
analgesics category in Japan but has seen declining sales
for a number of years. Haw Par Healthcare has a joint
venture with Ryukakusan, a domestic pharmaceutical
company responsible for the development and marketing
of Tiger Balm in Japan. The j-v was initiated to enhance
distribution channels for Tiger and boost sales in the
country. Topical analgesic remedies have achieved a high
level of consumer trust in Japan, which is now Asia’s
biggest market for topicals. However, the category is close
to saturation and sales have been flat in recent years.
A large category share has remained elusive for Tiger Balm
and in light of this Ryukakusan has been reluctant to roll
out line extensions.
FUTURE
Tiger Balm is renowned for its quality, effectiveness and
clear branding and has historically been heavily reliant on
its heritage and existing consumer base. Line extensions
have proved a hit with consumers and have provided Tiger
Balm with much needed growth potential from both
existing and new consumers. As well as organic growth in
line with the Asian market the brand is likely to be
boosted by additional A+P in individual countries and the
geographical roll out of line extensions into countries
where original Tiger Balm is already established.