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