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WHAT IS A BRAND?
A brand is an identifying symbol, words or mark that differentiates a company’s product with its competitors’. Branding is the creation of a relationship between a product and its consumers. The perception of the market towards a company’s products and services determines its brand image. Therefore, the manner in which a company manages its brand and advertising is crucial in positioning its product in the market as intended. Branding has become more and more important to differentiate a company’s product from the others in the market.
According to Malaysia External Trade Development Corporation (MATRADE), products and services are easily replicable in today’s environment and hence, the biggest challenge is for companies to differentiate their products from the competitors to compete in the market. All other things being equal, the only feature that will help consumers identify and differentiate the product in the market is the brand. Product quality and price are no longer product differentiators as discerning consumers expect quality products at competitive prices. A strong brand image is the only asset a company can develop that cannot be replicated. Thus, companies must make a serious commitment to develop a brand strategy for their products and services. Advertising and promotions are vital elements of branding. Companies should work with agencies that can provide professional advice on how to develop, promote and manage their brands to ensure that the brands are well positioned in the market.
Even a generic product can be branded. For example, Double A paper has managed to differentiate its paper from other brands in the market and has successfully portrayed its product as being of superior quality. Other examples in Malaysia include Gardenia, which has successfully branded its breads and has set itself apart from its competitors.
MALAYSIA’S 30 MOST VALUABLE BRANDS 2008
The annual list of Malaysia’s 30 Most Valuable Brands is based on the valuation study commissioned by the Association of Accredited Advertising Agents Malaysia (4As) and The Edge, and conducted by Interbrand, one of the largest international brand consultancy firms. The list for 2008 below gives you a good idea of how much a local brand can be worth.
WORLD’S TOP 30 MOST POWERFUL BRANDS 2008
Interbrand also compiles the annual list of the world’s top 100 most powerful brands. The top 30 for 2008 is as listed below:
THE ADVANTAGES OF HAVING A STRONG BRAND NAME
There are many advantages associated with having s strong and recognisable brand name. For starters, such products can command premium prices, especially if the products are positioned as high quality ones, as consumers are willing to pay more for the perceived value and prestige. Consumers are often loyal to and swear by their favourite brands. Hence, you’ll have a captive market that’s unlikely to switch brands, provided that you keep them happy with your products. These are just a few of the many advantages enjoyed by famous brands.
TIPS ON BUILDING A BRAND
• Ask yourself these questions: “What does your brand stand for?” and “Who is your target market?” The answers to the above questions will help you to correctly position your brand.
• Do your homework before coming out with your brand name. Make sure that the name does not have any negative connotations, even in other languages. The name must be absolutely suitable for your product.
• Focus on emphasizing on your product’s unique selling proposition (USP). For example, Domino’s doesn’t claim to make the most delicious pizza but instead highlights their ability to deliver their pizzas within 30 minutes. If they are late, you get a free pizza with your next order. This brand promise appeals to people who are hungry and want to have their pizzas fast.
• Stand out from the crowd by being different from your competitors. People will remember your brand better if it greatly differs from the rest, rather than be just one of many in the market. Expose your brand to your target market as often as your budget will allow. The more people see your brand, the better they’ll remember it.
• Be consistent in presenting your brand, ie the logo must be of the same colour and the same design. For example, if you have a tagline, stick with it until it is ingrained into people’s minds. They will get confused if your keep on changing your brand’s image.
• Protect your intellectual property by registering your logo, tagline, etc as a trademark.
GOVERNMENT INCENTIVES FOR BRAND-BUILDING
The Government has set up numerous incentive programmes to help Malaysian companies undertake their branding activities. These incentives include:
• Tax Incentives for companies undertaking Integrated Market Support Services (IMS) which include activities of branding, market research and customer relationship management.
• Double Tax Deduction for the promotion of exports of products and services as well as for the promotion of domestic homegrown brands.
• Brand Promotion Grant which is provided to companies that undertake the development and promotion of Malaysian brands.
• Grant for Enhancing Marketing Skills is provided to encourage small and medium enterprises (SMEs) to improve their marketing strategies, to compete in both the domestic and export markets. The Grant provides assistance to SMEs to train their employees in areas related to marketing strategies and planning, pricing, distribution and brand development.
• Grant for Enhancing Product Packaging to assist SMEs improve product appearance and presentation by enhancing product packaging, design and labelling.
• Other incentives, which indirectly support branding and which include deductions for the establishment of sales offices overseas, halal certification, registration of patents and trademarks, product licensing in foreign countries and the development of websites.
MATRADE, the national trade promotion agency, administers the Brand Promotion Grant (BPG) to help companies in their branding efforts. The objective of the BPG is to develop and promote, in the international market, brand names owned by Malaysian companies for products and services originating in Malaysia.
SMEs can apply for either:
• A 100% reimbursable grant of up to a maximum of RM1 million per company per brand, or
• A combination of 100% and 50% reimbursable grants (maximum grant of RM2 million per company per brand.
For more information, please contact:
Malaysian External Trade Development Corporation (MATRADE)
Menara MATRADE
Jalan Khidmat Usaha
Off Jalan Duta
50480 Kuala Lumpur
Malaysia
Tel: 603-6207 7077
Fax: 603-6203 7037 / 7033
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website: www.matrade.gov.my
Building Malaysian Brands for the World
The Branding Association of Malaysia is a not-for-profit organisation with the objective of promoting and encouraging the development of Malaysian or own company brands. The Association aims to support the promotion, development and introduction of Malaysian brands in the global markets, to advance such a cause that will benefit the entire spectrum of industries and businesses, and to support such efforts that will stress the added value of Malaysian brand images and their uniqueness.
Any company incorporated in Malaysia with its own product brand or brands, or any such company that supports and agrees with the objectives of the Association and promotes its products with the aim or purpose of entering the international market place may apply to become a member.
For more information, please contact:
Branding Association of Malaysia
Units 3-27 and 3-28
3rd Floor, FAS Business Avenue
1, Jalan Perbandaran
Kelana Jaya
47301 Petaling Jaya
Selangor Darul Ehsan
Malaysia
Tel: 603-7880 7010 / 603-7880 7050
Fax: 603-7880 7009
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website: www.brandingmalaysia.com
The BrandLaureate-SMEs Chapter Award
The annual BrandLaureate-SMEs Chapter Award is organized by the Asia Pacific Brands Foundation, a not-for-profit organization dedicated to the promotion and improvement in branding standards in Malaysia and Asia Pacific. The Award takes cognizance of the important role that SMEs contribute to the development of the nation and that of brand building. It is also in line with the government’s objectives of nurturing and facilitating the growth of the SMEs to be global brands. As most of the SMEs are from a range of industries, the development of good brands will help to enhance the respective industries’ growth and make Malaysia more competitive in the global market. Visit www.thebrandlaureate.com for more information.
FURTHER THOUGHTS ON BRANDING
The Ministry of International Trade and Industry (MITI) advises that the road to international recognition and acceptance must be systematically charted, and effective strategies put into place. Every effort must be made to nurture, promote, market and sell the relevant brands. Market studies, undertaken properly, can provide the basis for promoting a brand in niche market segments or as a mass-market brand. Where competition is keen, the advantage would lie in the ability of any product, to be positively differentiated from the competition.
Brands promoted based on exclusivity and premium pricing have to defend their brand identity and focus on the high disposable income group. Reducing prices during hard times, only serve to damage such brands. The right branding strategy is important in deciding the market niche that you wish to serve.
While promoting a brand is important, it cannot detract from the fact that there must indeed be a superior product or service behind the brand. A product must meet the expectations of the target market, or market niche. These expectations would basically revolve around quality, reliability and integrity of product, as well as catering to market trends.
