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EDITOR’S NOTE<br />

of a brand proposition.<br />

BRANDEQUITY<br />

It takes an<br />

assortment<br />

of elements<br />

to drive the<br />

success of<br />

any brand or<br />

guarantee the<br />

acceptance<br />

To operate successfully under prevailing<br />

conditions, the assortment must include<br />

innovation, the pursuit of differentiation, a<br />

willingness to embrace new technologies and<br />

an attitude that is primed to snub convention.<br />

It’s the last element in the list that triggers<br />

curiosity. A head-on assault on established<br />

convention and other social values may invite<br />

serious repercussions.<br />

But Unilever’s experience continues to prove<br />

otherwise. The lead story details as much how<br />

a collision with convention, when fronted by<br />

strategic insights and clever execution, can<br />

deliver great results.<br />

This issue also features a company that<br />

is encouraging brand builders to push the<br />

boundaries of communications even further.<br />

Pemara Labels offers nifty solutions that<br />

facilitate direct brand-consumer dialogue.<br />

And MNC Wireless continues to harness the<br />

power of mobile technology to better manage<br />

the brand-customer interface.<br />

Everything aside, the assortment needs the<br />

inclusion of one more element – the propensity<br />

for taking calculated risks.<br />

Food for thought – how risk-sensitive is your<br />

brand building team?<br />

Cover Story 08<br />

<strong>Brand</strong>Law 16<br />

B2B <strong>Brand</strong>ing 04<br />

<strong>Brand</strong> Evolution 00<br />

<strong>Brand</strong> Communications<br />

42<br />

CONTENTS<br />

Published by:<br />

perception<br />

media<br />

Perception Media Sdn Bhd 3-3, Jalan 11/48A, Sentul Raya Boulevard, 51000 Kuala Lumpur Tel : 03 4043 0500 Fax : 03 4043 7648<br />

Publisher : James Selva Executive Publisher : RT Selvi Publishing Director : RS Kumar<br />

Group Editor : CGN Raghunath (email:brandman@tm.net.my) Staff Writer : Chris Krishna<br />

Contributors : Cseng Lim, George Aveling, Jane Prior, Jeff Zweig, R. Venkateswaran Marketing Manager : A Veerasingam, Anenda Sharma,<br />

Senior Graphic Designer : N Hemalatha Graphic Designer : G Kayathri, V A Kanmani<br />

Dtp Artist : S Savithri Production Coodinator : R Sangeetha, IT Executive : Vani Sri Administration : Kavitha<br />

Printed By : BHS Book Printing Sdn Bhd Lot 17-22 & Lot 17-23, Jalan Satu, Bersatu Industrial Park,Cheras Jaya, 43200 Cheras, Selangor<br />

PP11255/4/2007<br />

A Member Of<br />

B B BRANDING<br />

Labels that Deliver a Great Experience<br />

COvER STORy<br />

‘Dirt is Good’<br />

CATEGORy BRAND LEADER<br />

A Heritage that Soothes<br />

BRANDLAW<br />

Apple’s iPhone Conundrum<br />

NIELSEN MEDIA UPDATE<br />

Ad spending Exceeded Expectations in 2006<br />

MEDIA STRATEGy<br />

Matching Motives, Moments & Media<br />

MOBILE MARkETING<br />

Cost Effective Communications with Go!SMS<br />

WEB MARkETING<br />

Ways to Use RSS for Your <strong>Brand</strong>, Part 2<br />

BRAND AUDIT<br />

Market Research, <strong>Brand</strong> Audit<br />

and <strong>Brand</strong> Valuation - The Differences<br />

PUBLIC RELATIONS<br />

‘This Old Relationship Tangle…’<br />

BRAND DIRECTION<br />

Creating & Delivering the Best<br />

INTERACTION MARkETING<br />

An Innovation Web Campaign for Brylcreem<br />

BRAND COMMUNICATIONS<br />

BBDO Malaysia Conceives Great Ideas for KFC<br />

BRANDED CUSTOMER SERvICE<br />

Creating the On-<strong>Brand</strong> Experience<br />

04<br />

08<br />

13<br />

16<br />

19<br />

24<br />

28<br />

32<br />

34<br />

36<br />

38<br />

40<br />

42<br />

46


<strong>Brand</strong> <strong>Equity</strong> B2B BRANDING<br />

By Raghunath<br />

BRANDEQUITY<br />

Arthur Lai & Ngooi Pei Ling


Allan Lo<br />

Let’s say you’d like to intensify<br />

consumer-brand affinity with a keen<br />

eye on cost efficiency.<br />

So ideas and related problems pop<br />

up in the mind. How about a contest<br />

(forms are chucked in the car’s<br />

backseat, or out of sight at the retail<br />

end, some strewn around the garbage<br />

bin perhaps, reservations about<br />

absolute support of retailers).<br />

Provide additional information<br />

about the product (leaflet in the<br />

backseat again, the garbage<br />

bin, or delivered to the wrong<br />

audience); festive season is<br />

around the corner, and you’d<br />

like to tickle consumers with<br />

new recipes. The information<br />

consumes four letter-size<br />

pages (logistical issues,<br />

missing at the retail end,<br />

lost & found at the garbage<br />

dump…).<br />

A decision impasse<br />

looms. Then a team from<br />

Pemara Labels shoves a 36-page<br />

booklet replete with recipes into your<br />

hands and says they can affix it on the<br />

bottle!<br />

They insist its going to look great,<br />

is logistics friendly, very secure, and<br />

cost-effective. Wastage is minimal,<br />

and the recipes can hang on the<br />

bottle in the chiller as well.<br />

And sure you can dump the four<br />

letter-size pages. Better yet, your<br />

company has the opportunity to<br />

communicate directly with consumers<br />

in an exciting way.<br />

And what about consumer-brand<br />

affinity? ‘That will be delivered’, they<br />

insist. The point of difference? It’s<br />

now a teeny-weeny but eye-catching 4<br />

X 4 cm booklet. Tear the security seal,<br />

and out pops the smartly folded 36<br />

pages.<br />

Tracing its roots back to Australia,<br />

the innovative Pemara Labels<br />

is an international<br />

supplier<br />

of high<br />

quality labels as well<br />

as a wide array of promotional<br />

solutions.<br />

In Malaysia, its customers include<br />

Unilever, Johnson & Johnson, Sara<br />

Lee, GlaxoSmithKline and among<br />

others, Quaker Products. And<br />

customer relationships are regionally<br />

aligned.<br />

About delivering value to<br />

customers, Arthur Lai, the company’s<br />

Group GM, Asia explains, ‘Our point of<br />

differentiation is the ‘Pemara <strong>Brand</strong><br />

Experience’. Customers must see<br />

and feel the quality that we deliver<br />

consistently with smart processes and<br />

superior technology through our brand<br />

experience.’<br />

Back to the 36-page recipe booklet.<br />

Dubbed Fix-a-Form, this star product<br />

from Pemara Labels is a multi-page<br />

leaflet-label system that can be<br />

custom-made to support a variety of<br />

brand communications activities.<br />

‘The patented Fix-A-Form<br />

is versatile and can be used for<br />

contests, redemptions, discount<br />

vouchers, recipes and delivering<br />

detailed information about<br />

products. It is a hit among brand<br />

owners in Malaysia,’ says Ngooi Pei<br />

Ling, GM, Pemara Malaysia.<br />

Pemara’s product repertoire<br />

includes decorative labels with hot<br />

stamp, holograms, Trust Seals®,<br />

postage stamps, rub-n-sniff labels as<br />

well as Fix-a-Form.<br />

Much of Pemara’s initiatives<br />

address the concerns of brand owners.<br />

Explains Pei Ling, ‘Contest entry forms<br />

can be affixed on the package. The<br />

consumer does not have to waste time<br />

heading for the redemption counter.<br />

More importantly, the form remains<br />

accessible anytime so long as the<br />

consumer keeps the product. And they<br />

have more time to decide whether to<br />

participate.’<br />

‘The materials that we use are<br />

versatile as well. The labels do not<br />

disintegrate or peel off surfaces that<br />

condense. This would be a concern<br />

with soft-drink cans,’ she adds.<br />

The past few years bore witness to<br />

the rising concern for security; a trend<br />

BRANDEQUITY


not missed by Pemara’s radar. ‘Most<br />

scratch & win labels out there do not<br />

match the quality we deliver. With<br />

inferior quality, prizes can be visible<br />

under strong light. The hot stamping<br />

process we use for such labels is very<br />

secure,’ says Allan Lo, Pemara’s Sales<br />

Manager.<br />

Categories such as cigarettes,<br />

alcohol beverages, agrochemicals,<br />

pharmaceuticals tend to fall prey<br />

to counterfeiting activities. Allan<br />

recommends the use of Trust Seals® to<br />

preserve the integrity of packages as<br />

well as promo activities.<br />

‘The product is licensed from<br />

a German company and is used on<br />

currency notes as well. It can be<br />

applied on cash or gift vouchers<br />

and incorporated into Fix-a-Form<br />

labels as well. More importantly, it is<br />

difficult to imitate,’ he says.<br />

Arthur adds that customer<br />

BRANDEQUITY<br />

engagement does not stop with a sale.<br />

‘We also organize seminars to inform<br />

customers about the innovative ways<br />

they can use our products to enhance<br />

their customer brand experience<br />

as well. Some occasions it is done<br />

in collaboration with the Chartered<br />

Institute of Marketing, Malaysia’ says<br />

Arthur who is the Honorary Secretary<br />

in the council.<br />

He also says that Pemara is<br />

committed to collaborating with<br />

its strategic partners for delivering<br />

solutions that set new standards<br />

for performance, reliability and<br />

sustainability.<br />

Partners include the industry’s<br />

respected names in pre-press and<br />

print technology. The list includes<br />

Tycine Colour Separation, Xsys Print<br />

Solutions Malaysia, Leonhard Kurz<br />

from Germany as well as Multifoil Sdn.<br />

Bhd.<br />

Arthur says that their brand<br />

experience is facilitated by state-ofthe-art<br />

technology. ‘Technology has<br />

helped implement the ‘One Pemara’<br />

concept. Jobs that are repeated or<br />

implemented in different countries<br />

deliver identical quality while<br />

managed from a central location.<br />

We can deliver quality proofs to<br />

customers while our machines are in<br />

operation as well,’ notes Arthur.<br />

Product or process, quality plays<br />

a key role in delivering the Pemara<br />

<strong>Brand</strong> Experience.<br />

And as you admire the label or<br />

affixed note on your favorite shampoo<br />

brand, or wine, or liquid car polish,<br />

chances are that the intense signal it<br />

emits may bear the signature of the<br />

Pemara brand experience.<br />

Please direct your enquiries<br />

to info@pemara.com.my


<strong>Brand</strong> <strong>Equity</strong> COVER STORY<br />

By Raghunath<br />

BRANDEQUITY


So what’s wrong with dirt, challenges<br />

Breeze, a stellar brand delivered from<br />

the belly of global consumer goods<br />

juggernaut Unilever.<br />

Intent on changing the rules of the<br />

game, the company has been launching<br />

compelling offensives against<br />

deep-seated mores as well as social<br />

values that are not in tune with the<br />

times.<br />

Lately, Unilever’s in-your-face<br />

campaigns have been daring consumers<br />

to recast their beliefs; and in the<br />

process, inciting doubts about out-ofform<br />

values.<br />

So they are urging people to get<br />

out there and celebrate life with a<br />

dash of vitality, toss out inhibitions<br />

about their personas, challenge the<br />

pressures they have to deal with (such<br />

as how they look), and to get real<br />

about happenings in the slices that<br />

make up their lives.<br />

That explains the shift in the brand<br />

philosophy of Breeze.<br />

Sze Tian Poh<br />

Breeze is<br />

ProDirt<br />

Explains Sze Tian Poh, Unilever’s<br />

Chairman & MD for Malaysia &<br />

Singapore, ‘Play offers the opportunity<br />

to learn in every child’s growing<br />

years. Children need to play to<br />

develop their creativity, enhance their<br />

motoring skills and cultivate positive<br />

values such as teamwork and healthy<br />

competition. Therefore, we are urging<br />

Malaysian parents to encourage their<br />

children to play without the worry<br />

of dirt as Breeze will be at hand to<br />

remove stains effectively.’<br />

But it’s a direction that’s been<br />

realized with fitting moves as well.<br />

Breeze was the only detergent brand<br />

to share the football fever during the<br />

World Cup period. The promotional<br />

activity launched the Breeze Splat<br />

Balls, which carried the signature of<br />

international footballer, Ronaldhino.<br />

The company embarked on a<br />

charity drive to build safe playgrounds<br />

for orphanage homes as well. Another<br />

is on its way.<br />

But there is an affirmed obsession<br />

of sorts that drives the brand<br />

builders at Unilever. ‘We embrace a<br />

philosophy that persuades us to focus<br />

more on consumers rather then the<br />

competition, to be fanatical about<br />

consumer needs and deliver them<br />

when they need it,’ says Sze.<br />

The Mission<br />

‘We want people to feel good, look<br />

good and get more out of life itself,’<br />

he adds. ‘We want to focus on new<br />

consumer opportunities to grow our<br />

business. Our mission is to add vitality<br />

to life.’<br />

And vitality to consumers can showup<br />

in the form of clean hands, healthy<br />

smiles, clean homes, getting noticed,<br />

having more time for themselves and<br />

BRANDEQUITY


others, or even pampered skin.<br />

So Unilever’s new mantra seeks to<br />

spurn conventional brand <strong>market</strong>ing<br />

practices and propositions while<br />

maneuvering their brands into<br />

uncontested arenas.<br />

Sure it sounds very much like<br />

its business as usual. But it needs<br />

a trained eye and mind to spot<br />

opportunities, and risk venturing into<br />

any uncontested space, and with<br />

everyone watching.<br />

Where’s the<br />

Hair?<br />

Sample this – two years back Sunsilk<br />

fired a different broadside that raised<br />

many eyebrows. They were the first<br />

to advertise a shampoo brand with<br />

every strand of hair out of sight. That’s<br />

taking a risk; calculated or not remains<br />

a different matter.<br />

A killer insight that homed into the<br />

nuances of Muslim women donning the<br />

10 BRANDEQUITY<br />

headscarf led the way. Again, it’s a<br />

trained eye that was spot-on with the<br />

uncontested area.<br />

Be Life<br />

Confident<br />

At the moment Sunsilk is getting<br />

cuddly with teenagers experiencing<br />

predicaments while making decisions<br />

concerning many aspects of their<br />

lives. The brand insists that it<br />

understands that growing up is<br />

all about facing challenges and<br />

dilemmas.<br />

So in comes a 15-minute<br />

interactive entertainment program<br />

with a social cause that helps<br />

disseminate good moral values to<br />

young Malaysians. It’s a drama series<br />

that showcases how a character goes<br />

through her life filled with challenges<br />

and dilemmas as a teenager. The<br />

character resonates with Sunsilk’s<br />

personality – warm, friendly and<br />

vitality to<br />

consumers can<br />

show-up in the<br />

form of clean hands,<br />

healthy smiles,<br />

clean homes,<br />

getting noticed,<br />

having more time<br />

for themselves and<br />

others, or even<br />

pampered skin.<br />

approachable. And her life situation<br />

reflects the life of Malaysian<br />

teenagers.<br />

A supporting SMS campaign invites<br />

viewers to suggest what the character<br />

should do next, and prizes are given<br />

away for spotting the ‘moral of the<br />

story’ which reflects Sunsilk’s values.<br />

The upside? Sunsilk leads with over<br />

30% share of the <strong>market</strong>.<br />

Dove is ProAge<br />

A tale about an all-out assault on<br />

convention is worth telling. The<br />

contemporary consumer culture is<br />

replete with elements that are hellbent<br />

on gratifying the desire for great<br />

looks, while ‘great looks’ remain<br />

beyond reach to many hopefuls.<br />

It’s all out there – Botox, eyelid<br />

lift, liposuction, breast augmentation,<br />

chemical peel; and add the tendency<br />

for consumers to cave-in to messages<br />

from peers and role models.


Campaigns that exploit the power of association<br />

often feature models with archetypal looks that most<br />

women can only dream about!<br />

But Dove took the diametrical route; and<br />

challenged convention. The brand decided to get<br />

honest with in-your-face visuals and messages<br />

that told women that whatever their skin type, or<br />

body shape, or age, or color, or looks – the need to<br />

conform or otherwise is a matter of confidence, and<br />

choice.<br />

The ‘Campaign For Real Beauty’ as it was dubbed<br />

urged women to accept the fact that there is beauty<br />

in diversity, and in natural looks.<br />

It urged women to reexamine their values, and<br />

assured them that there is a certain beauty about<br />

them that they can revel in, and treasure. Much was<br />

done to elevate their self-esteem.<br />

The campaign persuaded women to speak-up,<br />

enter into a dialogue and eventually feel beautiful.<br />

The result? Dove’s assault has developed into one<br />

of the world’s most innovative, iconic and universally<br />

acclaimed campaigns of modern times. It became a<br />

PR triumph, set it well apart from rival brands and<br />

won acclaim from women worldwide.<br />

The Campaign For Real Beauty took off in Malaysia<br />

at the end of 2005. Shot in Bangkok, it raised new<br />

debates around traditional Asian stereotypes on beauty, in<br />

contrast to the Western executions of 2004. Single eyelids and<br />

short hair were added to the debate.<br />

‘This year the Campaign For Real Beauty will get into high<br />

gear in Malaysia,’ says Sze.<br />

HIRAMEKI, a State of<br />

Inspiration<br />

And what gives with Lipton, the world’s leading tea brand<br />

and global <strong>market</strong> leader in leaf and ready-to-drink tea? An<br />

initiative by Lipton is further communicating the goodness of<br />

tea to consumers.<br />

The ongoing HIRAMEKI campaign extols the virtues of<br />

another natural ingredient in tea that claims to further<br />

enhance its goodness to the human body.<br />

An alliance with Oxford University has established the<br />

presence of theanine in every cup of Lipton. Theanine is<br />

purported to give a relaxed but alert state of mind – thus the<br />

state of inspiration known as HIRAMEKI.<br />

Says Sze, ‘We expect two distinct groups of consumers<br />

to benefit from our findings; the thriving youth who want to<br />

perform well at school and at work, and the aging community<br />

who want to maximize and maintain cognitive abilities.’<br />

Moo!<br />

Persuading a child to down a glass of milk can be<br />

exasperating. And everyday that too. So manage that aversion<br />

for milk by hunting for a suitable substitute.<br />

BRANDEQUITY 11


Deliver the Calcium through a product as well as<br />

experience that children will clamor for. The challenge<br />

inspired the introduction of the ice-cream brand ‘Moo’<br />

in Indonesia. Sze says that the successful brand has<br />

made a promising presence in Malaysia.<br />

Best Practices Shared<br />

A flurry of ceaseless activities continues to elevate the<br />

competencies of Unilever’s brand builders.<br />

Explains Sze, ‘Our Intranet is well engineered to<br />

facilitate global sharing of information, knowledge<br />

and ideas. There are dockets for every brand and each<br />

carries information about best practices. A manager in<br />

Malaysia can contact a counterpart in any part of the<br />

world to inquire about best practices relevant to their<br />

brand.’<br />

Lessons Learnt<br />

There’s much to be inferred from Unilever’s quest for<br />

<strong>market</strong> ascension.<br />

Being obsessed about consumer nuances must be a<br />

springboard for every decision and campaign. <strong>Brand</strong><br />

imprints must have a heart, and celebrate people as<br />

well as life itself.<br />

The consumer-brand connection must be absolute,<br />

and forged with an essence that must be extended to<br />

all <strong>market</strong>s worldwide. And brand footprints must be<br />

extended to cover many parts of the world. Decisions<br />

are more global with some room for responding to local<br />

nuances.<br />

Besides, brands that continually opt for pertinent<br />

differentiation have a better shot at succeeding. The<br />

overall well-being of the consumer has to play a major<br />

role in determining the direction of the brand.<br />

And aping the competition will deliver, but only in<br />

the short term. Strategic moves must be accompanied<br />

by that propensity for risk-taking.<br />

More importantly, challenging convention can deliver<br />

great results.<br />

Moving Forward<br />

Well into his 19 th year with Unilever, Sze is the first<br />

local to assume the Chair. It has been over two years,<br />

and the man operates with all eyes on cash flow as well<br />

as the terminal value of Unilever’s brand repertoire.<br />

So what’s the team gunning for? ‘We want to bring<br />

some meaning to our brands and that will make our<br />

work meaningful. And at the same time grow the<br />

business as fast as we can to support the meaningful<br />

work we are doing,’ says Sze.<br />

And his candid message for aspiring brand builders?<br />

‘Strive to inject meaning into your brand building<br />

activity. You will then be willing to suffer for what you<br />

are doing. Otherwise, just don’t do it.’<br />

12 BRANDEQUITY<br />

Being obsessed<br />

about consumer<br />

nuances must be<br />

a springboard for<br />

every decision and<br />

campaign. <strong>Brand</strong><br />

imprints must<br />

have a heart, and<br />

celebrate people<br />

as well as life


<strong>Brand</strong> <strong>Equity</strong> CATEGORY BRAND LEADER<br />

By R. Venkateswaran<br />

BRANDEQUITY 13 13


Would you believe that a popular<br />

throat drop brand available at your<br />

friendly grocer had its origin outside<br />

of Asia just about 140 years ago?<br />

Better yet, the very same ‘miracle<br />

lozenge’ was conceived to give relief<br />

to fishermen who suffered from<br />

coughs, colds and other bronchial<br />

difficulties while battling the elements<br />

at sea.<br />

In the early days, Fisherman’s<br />

Friend offered one variant. It last<br />

recorded worldwide sales of over<br />

US$350 million through eight flavors<br />

made available in more than 130<br />

countries. In Malaysia, it claims<br />

leading position with 21% share in the<br />

throat drop category.<br />

Fisherman’s Friend is propositioned<br />

as a ‘daily use’<br />

brand. The<br />

product range<br />

is classified as a<br />

‘functional candy’<br />

that is throatfriendly.<br />

Among<br />

others, it is said<br />

to help clear<br />

throat irritations,<br />

alleviate coughs<br />

and colds, unblock<br />

nasal passages<br />

and relieves sore<br />

throats.<br />

‘The consistent<br />

flavor and the<br />

benefits it delivers continue to<br />

be a draw for a broad spectrum<br />

of customers in the urban as well<br />

as semi-urban areas,’ says Mohan<br />

Alagappar, General Manager of<br />

GBA Corporation, which distributes<br />

Fisherman’s Friend in Malaysia.<br />

‘The popularity of this product is<br />

14 BRANDEQUITY<br />

also reflected in the target customer<br />

profile – mostly male or female adults<br />

who want to clear their throat,<br />

and if they are smokers, mask<br />

any unpleasant odor. Presently,<br />

many want the benefit of fresh<br />

breath from drops that come<br />

without the usual calories<br />

found in typical sugar<br />

candies. Others simply<br />

suck the lozenges for<br />

inspiration,’ shares Mohan<br />

who also adds that many<br />

undergraduates splurge on their<br />

brand to stay alert.<br />

In addition, the rising concern<br />

for well-being has helped the brand<br />

with the introduction of sugar free<br />

variants. But product development<br />

initiatives have<br />

encouraged<br />

sensitivity<br />

to culture<br />

inspired<br />

flavors.<br />

Asian<br />

flavored<br />

SKU’s have been<br />

introduced as well.<br />

Key Asian distributors<br />

have inspired the<br />

development of two<br />

fusion flavors; apple<br />

& cinnamon and<br />

mandarin & ginger.<br />

And Fisherman’s Friend is well<br />

distributed nationwide through a<br />

variety of retail establishments; from<br />

hypermarts to traditional stores.<br />

Impulse purchases account for a<br />

sizeable chunk of sales, especially<br />

through pharmacy chains, petrol<br />

stations and convenience stores.<br />

It last recorded<br />

worldwide sales<br />

of over US$350<br />

million through<br />

eight flavors made<br />

available in more<br />

than 130 countries.<br />

In Malaysia, it<br />

claims leading<br />

position with 21%<br />

share in the throat<br />

drop category.


How about consumption? ‘Most of<br />

our customers finish a pack in 3 to<br />

4 days,’ says Jamie Loh, Marketing<br />

Manager of GBA. She added that the<br />

unique paper gloss finish package<br />

helps retain freshness for the<br />

duration once it has been opened.<br />

The popular 25gm pack available<br />

in all flavors retails for RM3.50.<br />

Flanking that on the shelves is a<br />

compact 11gm pack, which retails for<br />

RM2.00.<br />

In order to retain its premium<br />

brand positioning in the <strong>market</strong><br />

vis-à-vis other similar brands,<br />

GBA executes timely and unique<br />

promotional activities, supported by<br />

an annual A&P spend of more than<br />

RM3 million.<br />

Key ground initiatives to position<br />

the brand include free sampling<br />

programs at high traffic outlets,<br />

concerts, pubs, sporting events and<br />

Mostly male or<br />

female adults who<br />

want to clear their<br />

throat, and if they<br />

are smokers, mask<br />

any unpleasant<br />

odour. Presently,<br />

many want the<br />

benefit of fresh<br />

breath from drops<br />

that come without<br />

the usual calories<br />

found in typical<br />

sugar candies.<br />

exhibitions. Supporting wholesaler<br />

programs do their bit as well.<br />

The activities are supplemented<br />

by the annual ‘National Sales Blitz’<br />

in which the entire sales team walk<br />

the street, swoop down to over 1000<br />

outlets, clean up merchandise at<br />

existing outlets and use the occasion<br />

to rope in new distribution points.<br />

In an increasingly competitive<br />

<strong>market</strong>, Jamie believes Fisherman’s<br />

Friend’s USP of consistent taste, no<br />

irritating cough, fresh breath and<br />

the fact that it is sugar free topped<br />

with a nominal cost places it at more<br />

than arm’s length from its nearest<br />

competitor.<br />

And by demonstrating concern for<br />

Asian palettes, ongoing R&D as well<br />

as <strong>market</strong> intelligence has helped<br />

Fisherman’s Friend to stay ahead<br />

and sustain leadership position in its<br />

category.<br />

BRANDEQUITY 15 15


<strong>Brand</strong> <strong>Equity</strong> BRANDLAW<br />

16 BRANDEQUITY<br />

By Benjamin J. Thompson<br />

& V. Mugunthan<br />

Welcome back to the <strong>Brand</strong>Law<br />

Column of <strong>Brand</strong> <strong>Equity</strong>!<br />

In the new series, we will be discussing<br />

cases of <strong>Brand</strong>s running into problems<br />

with the Law, with the hope that we might<br />

learn some important lessons through the<br />

experiences of others.


The merits and demerits of<br />

registering one’s trademark can<br />

be discerned in the Apple/Cisco<br />

controversy.<br />

Most techies will undoubtedly be<br />

aware of the brouhaha surrounding<br />

the launch of the newest member of<br />

Apple Computer’s product line, the<br />

iPhone mobile phone.<br />

The launch of the supposedly<br />

epoch-making product has been<br />

mired in controversy due to the rival<br />

claims of ownership between Cisco<br />

systems and Apple over the name<br />

iPhone.<br />

The following sequence of events,<br />

as gleaned from various articles and<br />

discussions on the Internet, may help<br />

shed some light on the lessons to be<br />

derived from the much publicized<br />

dispute.<br />

In March of 1996, Infogear<br />

Technology Corporation, a technology<br />

and services company focusing<br />

on Internet appliances filed an<br />

application for the US trademark<br />

‘iPhone’, obtaining the registration<br />

in 1999.<br />

The products to which the<br />

trademarks were applied were<br />

computer hardware and software<br />

for providing integrated telephone<br />

communication with computerized<br />

global information networks. This<br />

highfalutin description basically<br />

means a mobile phone which is<br />

capable of surfing the Internet.<br />

In 1998, Infogear released just<br />

such a product calling it the iPhone.<br />

Furthermore, in 2000, Infogear<br />

successfully prosecuted a trademark<br />

infringement claim against the<br />

owners of the iphones.com domain<br />

name.<br />

In June 2000, Cisco Systems<br />

acquired Infogear and its assets,<br />

including the iPhone trademark, and<br />

subsequently launched a range of<br />

Voice over IP (VoIP) sets under the<br />

name iPhone.<br />

Apple launched the iphone<br />

multimedia/Internet-enabled phone<br />

on the 9 th of January, 2007 with an<br />

eye towards emulating the success of<br />

i-Pod portable media players.<br />

Apart from the features that<br />

accompany most models of mobile<br />

phones, Apple’s iPhone has a touch<br />

screen incorporating a virtual<br />

keyboard which requires nothing<br />

more to operate it than bare skin i.e.<br />

one’s fingers. It also has a built in Wi-<br />

Fi enabling it to access the Internet<br />

through its own Safari browser.<br />

Therein lay the seeds of discord<br />

with Cisco. Cisco has contended that<br />

they had been negotiating with Apple<br />

to license their iPhone trademark<br />

and expected Apple to agree to<br />

the final document that Cisco had<br />

submitted on the night of the 8 th of<br />

January.<br />

Apple’s launch was made on<br />

9 th January 2007. On the 10 th of<br />

January, Cisco announced that<br />

it has commenced infringement<br />

Benjamin J. Thompson<br />

proceedings against Apple for using<br />

the iPhone name. Cisco also sought<br />

an injunction in the US federal court<br />

to prevent Apple from using the<br />

iPhone name.<br />

Just as things were beginning<br />

to get exciting, both parties to<br />

the dispute announced that they<br />

had agreed to temporarily suspend<br />

litigation pursuant to talks on<br />

settling the dispute. On the 20 th of<br />

February both parties announced<br />

that they had reached a settlement.<br />

Both parties will be allowed to use<br />

the iPhone name in exchange for<br />

‘exploring interoperability’ between<br />

Apple’s product’s and Cisco’s iPhone.<br />

There has been much speculation<br />

and conspiracy theories on the<br />

various blogs and forums as to<br />

Apple’s real intentions. Chief among<br />

them is that Apple intended to<br />

leverage on their successful iPod,<br />

iBook, iSight, iMovie, iTunes etc.<br />

branding and to lead consumers into<br />

thinking that any brand name with<br />

the prefix ‘i’ naturally belonged to<br />

Apple.<br />

Another is that Apple may have<br />

decided that the risk of Cisco’s suit<br />

was worth the success the product<br />

would have with the magic ‘iPhone’<br />

brand. As conspiracy theories go,<br />

I prefer the one where Cisco and<br />

Apple dreamt up the whole dispute<br />

to guarantee a memorable launch for<br />

the iPhone products, and enormous<br />

exposure in the media ... who knows<br />

for sure?<br />

This dispute, more than anything<br />

else underscores the importance<br />

of registering a brand or mark as<br />

proof of ownership. The mere fact<br />

of registering a mark gives rise to<br />

a cornucopia of rights (including<br />

sale and licensing) that might be<br />

of pecuniary benefit in the most<br />

unimaginable circumstances.<br />

Could Cisco have foreseen that<br />

owning the iPhone mark could in<br />

any way lead to this new alliance<br />

with Apple? Would Cisco have faired<br />

so well if Infogear had not had the<br />

prudence to legally lock down their<br />

rights to iPhone way back in 1996?<br />

The registration system also<br />

affords the mark owner the strongest<br />

protection available for their mark.<br />

Had Apple continued with the sale<br />

of the iPhone without reaching an<br />

agreement with Cisco, they would<br />

be in clear violation of Cisco’s<br />

proprietary rights in the iPhone<br />

mark and Cisco would have been able<br />

to enforce their rights in a court of<br />

law.<br />

The Cisco-Apple saga neatly<br />

illustrates the benefits that accrue<br />

to a mark owner upon registration of<br />

the mark. Let us hope that it serves<br />

as an object lesson to both potential<br />

mark owners and infringers.<br />

To the former, REGISTER your<br />

mark to protect it. To the latter, if a<br />

mark is registered, stay clear of it.<br />

Ben Thompson, a registered<br />

trademark, patent and industrial<br />

designs agent can be contacted at<br />

brandlaw@thompson.com.my<br />

BRANDEQUITY 17 17


<strong>Brand</strong> <strong>Equity</strong> NIELSEN MEDIA UPDATE<br />

HEAVY ADVERTISING<br />

IN THE SECOND<br />

HALF LED TO A<br />

STRONG YEAR<br />

Gross advertising expenditure in 2006 exceeded<br />

expectations, recording four percent growth and<br />

closing the year at RM4.7 billion, according to latest<br />

figures released by The Nielsen Company.<br />

While the FIFA World Cup 2006 kept the Malaysian<br />

advertising <strong>market</strong> afloat in the first half of 2006, the<br />

second half saw increases in adspend from categories<br />

such as mobile network services, local government<br />

institutions, furniture retail and credit cards, turning<br />

the whole year into one of good advertising growth.<br />

BRANDEQUITY 19


20 BRANDEQUITY


The advertising <strong>market</strong> in<br />

Malaysia continues to be dominated<br />

by traditional media like Newspaper<br />

(58%), Terrestrial Television (31%),<br />

Radio (4%), <strong>Magazine</strong>s (3%) and<br />

Outdoor (2%) etc. (see Table 1).<br />

Outdoor and Point-of-Sale in<br />

particular recorded significant<br />

growth of 37 percent and 25 percent<br />

respectively. Terrestrial Television<br />

and Radio also secured a 13 percent<br />

increase each over the last year.<br />

While increases in adspend in the<br />

banking/finance, appliances and<br />

mobile network services categories<br />

contributed to the overall increase<br />

in Outdoor advertising, spices/<br />

herbs, health food drinks and<br />

shampoo/conditioner categories<br />

were the catalysts to Point-of-Sale’s<br />

growth for the year.<br />

TV3 and TV9 were the main<br />

contributors to the overall increase<br />

in the Terrestrial Television <strong>market</strong>,<br />

showing a respective increase of<br />

RM106 million and RM69 million in<br />

ad revenue. Categories contributing<br />

to this growth were mobile network<br />

and mobile interactive services,<br />

laundry detergents and local<br />

government institutions.<br />

The strong performance<br />

secured by Radio was the result of<br />

increased advertising from mobile<br />

network services, local government<br />

institutions, cleaning agents/<br />

laundry, as well as phone cards and<br />

automotive categories. Apart from<br />

this, adspend garnered by two of<br />

the industry’s newest radio channels<br />

have also contributed to radio’s<br />

overall growth.<br />

Positive growth, exceeding that<br />

of the total advertising <strong>market</strong>, was<br />

seen for Cinema (10%). Apart from<br />

the tremendous growth seen from<br />

mainstay categories such as beer,<br />

credit cards and local government<br />

institutions, cinema has managed<br />

to diversify advertiser support by<br />

attracting more advertising dollars<br />

from industries like automotive<br />

corporate ads, sportswear,<br />

passenger vehicles (1001-2000cc),<br />

watches and restaurants.<br />

Mobile network services<br />

remain the top adspend category,<br />

registering 19 percent growth in<br />

2006, due to aggressive advertising<br />

by leading telcos Maxis and Celcom.<br />

Maintaining second position overall,<br />

Local Government Institutions is<br />

also the top growth category for<br />

the year, reaching RM161 million<br />

and relegating mobile interactive<br />

services to the third position in<br />

2006.<br />

The ongoing Kementerian<br />

Pengangkutan road safety campaign<br />

on terrestrial television, and<br />

national service campaigns on<br />

newspapers placed by Kementerian<br />

Pertahanan were main contributors<br />

to an overall increase for mobile<br />

network category (see Table 2 & 3).<br />

Making an entrance in ninth<br />

position in 2006 was the Furniture<br />

Retail category, with Courts<br />

Mammoth Superstore the main<br />

contributor to overall category<br />

growth, nudging Fast Food out of<br />

the top 10 list (see Table 2).<br />

Ranked third in 2006, mobile<br />

interactive services experienced the<br />

largest decline in category adspend<br />

from RM202 million in 2005, to<br />

RM159 million. The 21 percent drop<br />

was due to reduced spending overall<br />

as well as cut backs from mobile<br />

teleservice brands like Shabox,<br />

36933, 32166, MobileKlub, Club Zed<br />

Trendy, Klub Cat Mobile and Ezra<br />

Tones (see Table 2).<br />

Telcos continue to feature among<br />

the top advertised brands, with<br />

Maxis registering an increase of 60<br />

percent to reach an all-time high of<br />

RM157 million and taking over from<br />

Celcom for most advertised brand.<br />

Digi registered a 32 percent increase<br />

due to aggressive abovetheline<br />

campaigns on prepaid services,<br />

ending the year level with Celcom in<br />

joint second place (see Table 4).<br />

Malaysia Airlines, Pantene and<br />

Olay were squeezed out of the top<br />

10 in 2006 by Toyota, Kementerian<br />

Pengangkutan and Courts Mammoth<br />

Superstore.<br />

Toyota’s entry into the top 10 is<br />

the result of the brand’s increased<br />

spending during the World Cup FIFA<br />

2006, specifically for Toyota Avanza,<br />

Toyota Moving Forward and the New<br />

Vios 1.5 campaigns on print media<br />

(see Table 4).<br />

Among the top advertisers (see<br />

Table 5), Maxis holds pole position<br />

with Unilever Malaysia following<br />

closely behind. Unilever Malaysia<br />

recorded an increase in adspend of<br />

47 percent to RM119 million in 2006.<br />

The tremendous growth for<br />

Unilever is the result of heavy<br />

promotions of some new product<br />

lines under the Clear, Breeze,<br />

Wall’s and Fair & Lovely banner.<br />

Procter & Gamble, previously the<br />

second largest advertiser, took fifth<br />

place, due to reduced spending on<br />

Pantene, SKII, Rejoice and Olay on<br />

Terrestrial television.<br />

“Despite the deceleration<br />

in major export <strong>market</strong>s and a<br />

forecasted slowdown in the US and<br />

European economies, events like<br />

Visit Malaysia 2007, the nation’s<br />

50th birthday celebration and the<br />

recently announced upward revision<br />

of the <strong>market</strong>’s GDP for 2007 will<br />

all help sustain the momentum<br />

of Malaysia’s advertising <strong>market</strong><br />

in 2007,” said Ms Rebecca Tan,<br />

Executive Director of Nielsen<br />

Media Research for Singapore and<br />

Malaysia.<br />

The advertising<br />

<strong>market</strong> in Malaysia<br />

continues to be<br />

dominated by<br />

traditional<br />

media like<br />

Newspaper<br />

(58%), Terrestrial<br />

Television (31%),<br />

Radio (4%),<br />

<strong>Magazine</strong>s (3%)<br />

and Outdoor<br />

(2%)<br />

BRANDEQUITY 21 21

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