Reading this recent post from a blogging buddy, I’m compelled to add my thoughts.

A few months back, one of my friend who is doing his MBA course was asked to offer a local ice-cream company ideas on rebranding the company name. This confectionary company has been around Ipoh 20+ years. Wait, is it possible a company which is around more than 2 decades command amnesia from locals? I can tell you even local bred Ipohnites have no recollection of this brand name. The only reason I knew this company existed was because it was previously located on my route home. Can’t really ignore something I see everyday.

This company has no identity. Let alone brandname. Most soft-serve ice-cream in local malls are using their products. Not their name though. I wouldn’t know my favorite green tea ice cream from the mall comes from this company had my friend not told me. I’m of course not to be blamed. A green tea vendor is selling the ice-cream under the green tea vendor name. This company does sell their ice-cream under their own name in supermarket throughout Malaysia. But then, it’s not really doing well. Recently this company had even extended their business to China. They have factories over there but it’s the same old story.

My friend suggested to the company board, how about internet advertising?

Lo and behold, my friend related to me it was the most humiliating reaction ever in his life. The board was looking at him as if he’s an imbecile. “Who on earth would read an ad in the internet? How many people actually surf the net in this country? How is this going to increase our sales? Forget it. Let’s concentrate on the usual buy 1 free 1 promotion…”

Well, who’s the imbecile?

You might say this is just ONE local company. True. The fact is, this is the shared conception of MOST local companies. Many still think the internet is meant for social activities and online gaming. No way the internet will help sell their products.

Now, I do agree the internet may or may not help companies sell their stuffs, which is of course dependent on what they’re selling in the first place. Not everything can be purchased online. I concede. But then aren’t all of them missing out on the big picture? Internet advertising is not just about selling products. It is there to promote your greatest company commodity….. your brand name.

I guess the East and West have different approach when it comes to marketing. The West think brand name. They are willing to fork out money and effort to promote their name. The East? The East, I meant Malaysians here, are more interested in the sales and products. Now wait, I’m not saying the sales are not important. Sales meant profit. Profit is always good. But, products come and go. You need to diversify with trend. But, the brand name is there on the long run. Any diversification in products are much easier accepted by the public if there is a known trusted name behind it.

I’m not discounting the importance of a good product behind a name. But then, unless your product is so unique there is no competition, there are just as many companies out there selling the same product which is just as good. Where is the deciding factor?

Local companies in Malaysia who successful created a name for themselves from zero are few. The only ones I can think of had to be Ogawa and Secret Recipe. The Ipoh Kopitiam chain is doing not too bad either. You know, the local scene is still one generation behind. Let’s hope some young blood will help change the current perception regarding internet/blog advertising.

This entry was posted on Saturday, September 22nd, 2007 at 9:17 pm and is filed under Thoughts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.