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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 the Malaysian 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.
CREATING NEW PRODUCTSBefore deciding on branding, marketing and advertising, an important aspect is the competitiveness of the products. According to the Ministry of International Trade and Industry (MITI), Malaysian exporters can no longer compete on price alone as their close competitors in Thailand, Indonesia, Philippines or China are making strides in improving their product quality.
Efforts in market and product development should now be given priority. This should include and emphasise on the use of high technology in manufacturing processes to enhance efficiency and productivity as well as collaboration with global partners.
Moving up the value chain has become the watchword for manufacturers and exporters. With the intention of creating Malaysian brands with quality, and to differentiate Malaysia’s products in the world market, the government has provided certain incentives and grants. Malaysian exporters can avail themselves of the various incentives and grants, while also working towards reducing their cost of doing business. These include, among others:
- Outsourcing of inputs and processes for business activities, including seeking out lower cost inputs;
- Increasing productivity;
- Upgrading of technology; and
- Business collaboration to enhance production, R&D and marketing
Government initiatives include:
- Creation of a pro-business environment;
- Continuous efforts to improve delivery systems and reduce the cost of doing business;
- Provision of incentives and grants; and
- Better market access through tariff negotiations under the framework of WTO, regional and bilateral arrangements
IMPORTANCE OF BRANDING, ADVERTISING & MARKETING
It has often been said that a good product in itself does not automatically guarantee success. Breakthroughs in R&D need to be supported by an equally good business plan, cost efficiency and marketing.
The earliest effort at branding of Malaysian exports was the ‘Malaysian Sheet Rubber’, which provided a global benchmark for the product. However, other commodities were not able make any headway and found themselves as only part of a regional family of tropical products, not differentiated from those of other producer countries.
The opportunity to forge Malaysian brand names abroad is now provided by the manufacturing sector, particularly where comparative advantages exist. The opportunity is ripe in sectors such as garments and apparel, electrical and electronic products where Malaysian entrepreneurs, as contract manufacturers to sometimes world-renowned brands, have garnered experience and know-how.
Such experiences should help in the ventures of creating our own products, which carry Malaysian designs and brands. With adequate inputs of R&D, in both product and process, the manufacturers may be able to carry their brands into the international arena.
However, 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.
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.
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.
With an increasing number of people graduating from Malaysian art and design institutes as well as technical universities, Malaysian SMEs can move fast to generate innovative products and creative marketing strategies. It is possible for Malaysian brands to gain international acceptance and recognition.
MATRADE, the national trade promotion agency, administers two grants to help companies improve their branding and market development:
1. Brand Promotion Grant
The objective of the Brand Promotion Grant (BPG) is to develop and promote, in the international market, brand names owned by Malaysian companies for products and services originating in Malaysia.
2. Market Development Grant
The objective of the scheme is to provide a matching grant to assist SMIs in undertaking activities for the development of export markets.
Training for Export
MATRADE organises seminars and workshops to nurture new exporters and update existing exporters on trade developments and business opportunities in international markets. The topics covered include export opportunities in new and emerging markets, trade regimes and procedures, brand name development, product promotion, skills in international marketing and e-commerce.
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:
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Website: www.matrade.gov.my
Branding Enhancement for Effective Marketing of SME Products and Services
At its 7th Meeting in September 2007, the National SME Development Council approved the BRAND-SME Development Programme. The objective of the programme is to promote and reinforce the value of individual SME’s brands. The goal is to encourage SMEs to leverage on branding to market their products and services. This programme comprises four core elements; Capacity Building; Certification & Award of a National Mark (a symbol of excellence, distinction and assurance of compliance); Auditing & Monitoring; and Promotion. Qualified SMEs can take advantage of various support and financial incentives provided by government agencies to assist them in developing and promoting their brands.
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:
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Website: www.brandingmalaysia.com
The BrandLaureate-SMEs Chapter Award
The 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.
