Monday, April 1, 2013

How much is a brand worth?

IN a blink of an eye, we are already in the second quarter of 2013... time really flies! How I wish I have the super power to stop time, just enough to encompass the moment to sit and reflect on how my life has changed ever since I embarked on this journey to do my bit in assisting small businesses.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/HAFS/Article/
Published: April 01, 2013

Indeed, these little business entities are like own children. My life's little pleasures are watching them grow from start-ups to become local and, thereafter, global champions. I watch their every little success as they etched their mark, the challenges they go through and the triumphs they get from winning contracts. The joy and satisfaction of being with them as they move from zero to hero is indeed immeasurable!

Creating global champions from local companies was never heard of before. And, no one has ever given a thought to a Malaysian local company becoming a multinational corporation (MNC) in another far away land! Who says that it is impossible? In any case, if we break the words of "impossible" into three parts, it becomes "I m possible".

Much has been done recently to elevate SMEs to another level - to enhance the acceptance of "Made in Malaysia" products, to diffuse the perception that Malaysian products are of low quality, has unattractive packaging and inconsistent supplies. More often than not, we often hear that Malaysian companies and brands have to prove themselves in international markets first before being accepted by Malaysians.

With that in mind, SME Corp decided to undertake an initiative to sway the minds of the Malaysian public in accepting Malaysian products and brands on local shores. To me, branding gives a company identity, makes it recognisable and marks the beginning of a company's expansion efforts.

Today, Malaysia is proud to have its own home-grown brands such as AirAsia, CIMB, Proton, Parkson, Axiata, Lewre, Jimmy Choo - brands that have made their mark in the international market.

Meaningful brands are pivotal for a sustainable future, and if this aspect of marketing, branding and packaging is not up to mark, it will hinder the growth and marketability of a product.

David Ogilvy's definition states that branding is "the intangible sum of a product's attributes - its name, packaging, price, history, reputation and the way it's advertised".

Creating a brand does not mean you need to be big in size and heavy on your pocket, but an effective marketing strategy that is well thought through from A-Z is essential. It is also apparent that good packaging and brand has a special bond with the customer and the product.

Ultimately, the inherent value of a brand concludes the rise or fall of an enterprise.

In line with the government's aspiration to change the perception that Malaysian products and services are of inferior quality compared with bigger international brands, the National Mark of Malaysian Brand was developed in collaboration with SIRIM QAS International Sdn Bhd.

Launched in 2009, the objective of this initiative is to enhance the visibility of Malaysian products and services in both local and international markets through the depiction of quality, excellence and distinction of these products and services.

It aims to create globally-competitive companies through raising the importance of branding as a means of improving competition and gaining market share. The strategic initiative will provide market access for SMEs that have proven to be capable suppliers of products and services.

Only deserving companies will be awarded the National Mark of Malaysian Brand for their products and services as the "mark" involves very stringent audit and monitoring processes so as to ensure conformity to the standard criteria.

One of the key audit assessment criteria is brand management and as an entry prerequisite, firms must be brand-registered and ISO-certified.

Upon receiving the "mark", the companies are given the priority to participate in local and international trade promotion activities organised by Malaysia External Trade Development Corporation (Matrade), with entitlement to incentives provided by SME Corp Malaysia.

Since its inception, the National Mark of Malaysian Brand has been successful in enhancing the visibility of Malaysian products and services in both the local and international markets.

For example, brands such as Smart Reader Kids and Smart Reader Kids Junior, which were recipients of the National Mark of Malaysian Brand in 2010, have made their mark in the Philippines, Thailand, China and the Middle East.

Revive, a consumer product, was also a recipient of the brand having spread their businesses internationally.

To date, 59 SMEs have been certified with the National Mark of Malaysian Brand.

In fact, during the recent Networking Session for National Mark of Malaysian Brand recipients and related agencies, themed "Meet in the Sky", SME Corp Malaysia had officially launched a new website that is dedicated to providing information and updates on the certification scheme.

The website at www.nationalmark.gov.my carries information on the scheme, including benefits of certification, participation criteria and the evaluation and audit processes.

The site lists successful brands that have been awarded the rights to use the National Mark of Malaysian Brand on their product packaging and in their marketing communications.

I urge companies interested in participating to check out this site.

This year, the recipients of National Mark of Malaysian Brand will be announced during the Malaysian Brand Forum in October.

In this journey of elevating Malaysian brands to an international level, I can't help but relate it to my favourite gadgets that keeps me connected 24/7 - none other than my iPad and iPhone, whose brand is Apple! If we were to ask an Apple user to switch to other brands, chances are they won't. In fact, with conviction and confidence they will say, "Once you go Mac, you never go back."

Musing over Apple's unparalleled journey, I stop to ponder if they can do it, why can't we? Malaysian SMEs are an innovative lot and we can achieve and create global competitive brands. It's about "thinking-out-of the box', daring to be different, challenging the status quo, willing to create an experience and always striving to stay at the leading edge.

Branding and packaging are two of the most important components of marketing. I am confident that our SMEs have the element of resilience, creativity and determination to unleash their potential to build their brands to greater heights.

I am just being reminded what Howard Shultz said in "I Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time": "In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable; their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic."

Have you got what it takes become the next Jimmy Choo?

Datuk Hafsah Hashim is the chief executive officer of Small and Medium Enterprises Corporation Malaysia (SME Corp Malaysia)

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