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Marketing and BrandingStrategies:

The Use of Trademarks and IndustrialDesigns for Business Success; Case

Studies

Guriqbal Singh ai!a

Director

SM"s Di#ision$ %I&'

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Mala!sian Te(tile Com)etition

The dependence on contract manufacturingmeans thatMalaysia is weak in terms of design and productplanning capabilities, distribution and marketing

capabilities.

Instead of creating original Malaysian brands or names,Malaysian manufacturers produce for major world brandnames, including:Adidas, Arnold Palmer, Actie !ear,

"#M $%uipment, &alin 'lein, &hristian (ior, )ucci,)uess, (onna 'aran, *+, ei-s, ike, Padini, Polo,/alph auren, /eebok, +la0enger, Pierre &ardin, &amel,Mi0uno andMontagut.

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Marketing and &roduct

Differentiation

1 (I22$/$TIATI3 is the act of

designing a set of meaningfuldifferences to distinguish thecompany4s offering from competitors4

offerings. 5 'otler 67889

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*e! Differentiating

+actors for a ,e- &roduct

1 The product represents a functional im)ro#ementoncompeting or substitute products

1 The retail5selling price is considered to be adantageous

1 The product and;or its labeling has an attracti#e design

1 The new product is properly branded, promoted andadertised

1 The new product is readily aailable to customers in the

main retail shops

1 A number of after5sales serices are proided that makethe product appealing to consumers

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clusiity oer their use=

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The .ns-er/

1 Innoation 5 functionalimproement of a

product1 (esign 5 deelopment

of the ornamentalfeatures of a product

1 "rand 5 for marketingthe product

Patents or #tilityModels

Industrial (esigns

Trademarks

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1 &atentfor the fountain pen thatcould store ink

1 Utilit! Model for the grip and

pippette for injection of ink1 Industrial Design: smart design

with the grip in the shape of anarrow

1 Trademark: proided on the

product and the packaging todistinguish it from other pens

+ource: ?apanese Patent 3ffice

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&orporate Image, Product

Positioning and "rand $%uity

1T/#+T and /$ATI3+

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"uilding Trust and /elationships

1A "rand is a consistent, holistic pledgemade by a company, the face a company

presents

1A "rand seres as an unmistakable symbolfor products and serices

1"usiness cardB a company proffers on thecompetitie scene to set itself apart from therest

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Trustis to "usiness, as

Trademarkis to "rand

1"rand $%uity built on the foundation of a

protected Trademark1"rand;Trademark can:

6a be disposed off separately from other

company assets 62ree5standingInstitutionsC and

6b gie rights that can be legally protected

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Brand0Trademark1Trademark: egal concept

1"rand: Marketing concept1/egistration of a trademark adds alueas it protects its other inherent assets

1"rand profile and positioning may aryoer time, but trademark protection

remains the same

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!

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Any (istinctie !ords, etters, umerals,

Pictures, +hapes, &olors, ogotypes,abelsIn some countries: +ounds, +mells and

Three5dimensional marks

1 $>amples:

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http://metrojaya.com.my/emailers/emailerjul2k6.htmlhttp://www.khind.com/http://pkukmweb.ukm.my/~pkonvo/image/adabi.gifhttp://www.ayamas.com.my/http://images.google.ch/url?q=http://www.ey.com/global/CCR.nsf/Images/20116F67CA334C5748256F31000978EE/%24FILE/naza-logo_nbsp__ci_.JPG&sig=__wtAGCVCUqYU-t4y3dZ5h9krsbSg=http://www.ftsm.ukm.my/irpa/EA012/imej/Perodua.jpghttp://images.google.ch/imgres?imgurl=http://clabedan.typepad.com/photos/uncategorized/proton.jpg&imgrefurl=http://www.leblogauto.com/vw/index.html&h=309&w=308&sz=18&hl=en&start=3&tbnid=2GmxfJ7o3l4qoM:&tbnh=117&tbnw=117&prev=/images%3Fq%3Dproton%26svnum%3D10%26hl%3Den%26lr%3D

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Definition of a Brand

67 (efines the differential features

of a product or serice:

1/eal or Imaginary

1/ational or Irrational

1Tangible or Intangible

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Definition of a Brand Contd111

6E &onstitutes an image that creates apersonal e>perience:

1 3wn

1 Third party1 Imaginary

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Definition of a Brand Contd111

6F !ith conscious and unconscious contents

that the consumer projects and deposits on itC6G &onstitutes part of and builds up his;heridentityC

6H )enerates certain perceptions, attitudesand behaiors and enables fulfillment in theirlies

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Brand Identit!

1 Mind share 2cogniti#e le#el3

1 4eart Share 2"motional relationshi)3

1 Bu!ing intention share1 Self share 2self5e()ression and self5

design3

1 6egend Share 2cultural5sociological)ro)osition; legendar!; m!thological3

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/ole of "rands: 2or the &ompany

In a highly competitie world, where

manufacturers are losing their pricingpower, branding is seen as a way of

clawing back some of the lostinfluence.

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1/eal and marketable asset

1

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1Accelerates speed of cash flow1Increases bonding and customer loyalty

1Increased market share

1$ntry barrier1imits growth of competitors

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1/e%uires lower inestment leels

1"etter negotiating position with trade andother suppliers

12acilitates higher product aailability

6better distribution coerage1(ealers order what customers e>plicitlyre%uest

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/ole of "rands: 2or the &ompany1$>tends products4 life cycle

1Allows lower cost brand e>tensions1&an be the basis for international e>pansion

1Proides legal protectionC licensingC

franchising1"uffer to surie market or product problems

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1Dalue of "rands is a key determinant of

enterprise alue and stock marketcapitali0ation

12inancial markets reward consistently

focussed brand strategies1"rand management a ital ingredient forsuccess in corporate strategy

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But1111"rand "uilding /e%uires Time and MoneyCnd MoneyC

1"rand ourishing +hould be a &ontinuous"rand ourishing +hould be a &ontinuousProcessCProcessC

1posure, )reater itsposure, )reater its

DulnerabilityCDulnerabilityC1&an be Target of &ounterfeiting;&riminal&an be Target of &ounterfeiting;&riminal

ActiitiesCActiitiesC

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Time re%uired...

It took seen years of marketing beforecar buyers began to recogni0e that the"M! brand was distinctieB: ?orgint0meyer, board member of

Interbrand, p FF of 23/"$+ )lobal, ?ulyEE, EJJE in The best5drien brandB byigel

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So111The cost of building a brand

can be #er! substantial o#er a

)eriod of time1 That is -h!

bu!ing a brand sometimesmakes sense to man!

com)anies1

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The Im)ortance of Brands

&onsumers are stared for timeandoerwhelmed by the choices

aailable to them. They want strongbrands that simplify their decision

making and reduce their risksB

.re there other good reasons7

'ein ane 'eller, Tuck +chool of "usiness

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+unctions of a Trademark

2or the consumer:

1 $nables consumers to distinguishbetween similar or identical products

1 Products with characteristics that may notbe e>amined prior to purchase

1 Trademark as a guarantee of %uality

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The 8alue of a TrademarkThe 8alue of a Trademark

1 &onsumers are willing to pay a premiumprice for a product bearing a trademark

with a gien reputation1 Mergers and ac%uisitions increasingly

drien by need to ac%uire a trademark to,for e>ample, enter a new market

1 &ompanies outsourcing manufacturingactiities to low5cost locations rely heailyon the trademarks as the main source ofcompetitie adantage

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Choosing a mark

1 2rom a commercial point of iew:

N +hort and simple

N $asy to read, spell, pronounce andremember in all releant languages

N ot to hae undesired connotations inany releant language 6oaB,

TraficanteB, Taco "ellBN $asy to adapt to all adertising media

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Choosing a mark

1 &annot be registered as trademarks:

N )eneric marks 6cases nylonB, formicaB, aspirinB,etc

N (escriptie signsN +igns that may lead to confusion as to the nature of

the product

N +igns contrary to public order

N )eographic signsN +igns that are similar or identical to e>isting

registered trademarks

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+electing a Trademark

1 "est choice:NArbitrary;fanciful N

1 'odakR film, AcrobatR software, $>>onR fuels

N +uggestie N gies a hint of what the productis, but is not merely descriptie N

1 MolyanR, DancoteR

1 &an not be genericor merely descriptive

N @+uper +trong4N (iet &hocolate 2udge +oda

N 'A$ T$T+# R

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&learing a ew Mark

1 SearchingNN )ending trademark a))lications and

granted registrationsN @*nock5'ut4 search

1 /ecommend to follo- u)with outside

search 6Thomson SThomsonR, which willfind phonetically similar marks

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Proper Trademark #sage

1 %h!7N improper use can lead to loss ofe>clusie rights N mark becomes generic,and eeryone can use it

1 Lost5 aspirin, cellophane, escalator,thermos, linoleum

1 SavedN Uero>R copiers, "and5AidR

bandages, /ollerbladeR in5line skates

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Proper Trademark #sage

4o-7

1 (3 ,'T

N #se as a noun or erb1 )ie me a >ero>B

1 I am >ero>ing that nowB

N #se in the plural1 Incorrect 5 Three >ero>es

1 &orrect N Three Uero> copies

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R N when to use1 R indicates that a trademark is

registered in MyIP3. It must not beused unless the mark is registered.

1 It is suggestedto use R whereappropriate 6gies notice to the public,

though it is not required.

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9egistration 23

International route: Madrid system for theinternational registration of marks5 3ne application

5 3ne language5 3ne set of fees

5 99 member states

5 Administered by !IP3

5 3ne system, two treaties

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T-o5dimensional Designs

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Three5DimensionalDesigns

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4onda4onda Case Stud! ContdCase Stud! Contd

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4onda4ondaCase Stud! Contd111Case Stud! Contd111

1 Interestingly, in considering the copyright claim, +ection 96 of the &opyright Act 78Q9 was neitherraised nor dealt with by the court. +ection 96 protects designs that are capable of being registeredunder the Industrial (esigns Act 788 but are not registered.

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