Food Indutry Study Reveals - Building Brands Is About Innovation
& Originality
The
first ever national study on brand building and trademarks in the
Singapore food manufacturing sector has revealed that a majority of
food manufacturers look to famous brands for inspiration when
designing their logos.
Food manufacturers in Singapore were asked a series of questions
pertaining to their company policy and attitudes on establishing
brands through trademarks, as well as on the extent of their
marketing activities. During the study, it was discovered
that 54 per cent of local food manufacturers would select colours
and designs that looked like their competitors’ before creating a
brand, while 57 per cent selected colours and designs akin to
famous brands. 60 per cent of
respondents used their company’s corporate brand name as their
product name. The results of the
national study evoke this pertinent question – do food
manufacturers in Singapore focus enough on innovation and
originality in building their
brands?
The research study was conceived
to investigate the growing recognition that a strong brand is
important for food manufacturers. The objective was to
discover if Singapore food manufacturers were leveraging on their
trademarks to grow their businesses in key markets. It was
conducted by global brand strategy consulting firm, StrategiCom,
and was supported by the Singapore Food Manufacturers’ Association
and SPRING Singapore. The following points were used as a
yardstick of measurement:
1. The extent
that Singapore food manufacturing companies go to ensure the
uniqueness in the creation of a trademark.
2. The
percentage of companies that register their trademarks in all
relevant markets of trade.
3. The extent to
which Singapore food manufacturers have gone to promote their
trademarks in all their relevant markets of
trade.
4. The extent of
efforts that Singapore food manufacturers undertake to enforce
their rights in their trademarks – in the event of
breach.
Group Principal Consultant and
CEO of StrategiCom, Mr Wilson Chew said, “The results of the survey
indicate that the majority of Singapore food manufacturers do not
emphasise on innovation and originality when building their
brands. This can be dangerous, especially when their products
have trademarks similar to leading brands in the food sector.
In a grave situation, it could be viewed as passing-off which could
lead to possible legal implications. In a mild situation, the
brand could potentially assimilate not only positive associations
of brand leaders, but may also pick up the negative connotations as
well. It is not wise either way“.
Two other key findings emerged
during the survey. With regard to statutory protection, 60
per cent registered their trademark in some or all of their
overseas markets, 83 per cent registered their trademarks in
Singapore and 76 per cent monitor companies for unauthorised use of
their trademarks.
The survey results showed
encouragingly that most food manufacturers do obtain and ensure
their legal rights when it comes to safeguarding their
trademarks. However, these same manufacturers did not
extensively market their trademarks to maximise commercialisation
efforts.
Mr Chew said, “While most food
manufacturers do take steps to gain access to rights accorded by
legal protection, these rights may be weak if manufacturers create
trademarks which resemble leading brands." He added, “To
distinguish their brands, food manufacturers need to create
differentiated trademarks, and proactively engage in marketing
activities that can promote their brands and trademarks to clients
in their chosen markets.”
The research study recommended
that the trademarks of local food manufacturers should be
communicated frequently and consistently, and the trademark should
be built into a brand of value. This
would be achieved through greater innovation and originality in the
design of a trademark.
Responding to a question on how
Singapore companies can develop their trademark even further, Mr
Chew said, "There are basically two components needed to build a
strong brand - the right strategy and excellent execution.
Both are important but strategy must come first. Singapore
food manufacturers can take a deeper look at their strategy.
And strategy is all about differentiating the brand from its
competitors. Our findings from this
national research study has in fact, encouraged us to look at the
dual topics of innovation and originality in greater detail, which
is something which we will focus on in our next research
study."
The results of the study are
particularly pertinent and useful to SMEs in the Singapore food
manufacturing sector as it provides an insight into
distinguishing their brands and products from the MNCs dominating
the market
Source: www.strategicom.com