KUALA LUMPUR, June 21 (Bernama) -- Given the extensive trading linksglobally and the acceptance of products and services produced and suppliedfrom Malaysia, Malaysian companies should leverage on these advantages toevolve into own brand manufacturers, Minister of International Trade andIndustry, Datuk Seri Rafidah Aziz said.

Speaking at the "Market Talk" held by the Institute of Marketing Malaysia(IMM) here, the minister said, the companies could even utilise newtechnology and research & development to make better products.

The minister said exports had increased significantly to US$126.5 billionin 2004 from US$104.7 billion in 2003, with more than 200 countries tradelinks established.

She said there were new areas that Malaysian companies could create aniche for themselves with their own brand names, as in halal products andservices, palm oil products, resource-based products, garments andtraditional fabrics, furniture and herbal products.

"The prerequisite would be quality and integrity of the products as wellas competitive pricing. Products which have created a strong impact on themarket through branding strategies, can command premium prices," she said.

Rafidah said even if the items were almost identical to others, the brandwould set it apart and enable it to command a premium price.

"Most importantly, it is not price elastic. In fact the higher the price,the more enhanced its exclusiveness and desirability," Rafidah said.

Products which are mass produced may experience the erosion of the marketshare if prices are not competitive as there are many competingsubstitutes, she said, adding that in this context, the brand strategymust include measures to promote and market the brand as much as theproduct.

"There is strategy to differentiate the brand from the competitors and tonurture the acceptance of the brand name, and it must begin within thecompany and the organisation itself," Rafidah explained.

It is about positioning the product image at every level of themanufacturing and ensuring that nothing puts a blemish on the image.

"The product may be perfect, but the image may be tarnished by some markettalk, or even by some rivalry," she added. The minister said marketing abrand requires a thorough understanding of the cultural traits,particularly so when the companies were targeting particular marketsegment and niches.

"Hence the importance of market intelligence and information. Mostimportantly marketing of the brand is not simply about advertising, butalso about using appropriate and relevant tools based upon what the imagethe brand is supposed to convey," Rafidah said.

She added the government provided a wide range of support such as thedouble deduction for the promotion of exports, double deduction forpromotion of Malaysian brands, market development grants and brandpromotion grant.

For the period of January 2004 to June 10, 2005, a total of 20 brand nameshad been approved with the brand promotion grant totalling RM37.2 million,Rafidah said.

-- BERNAMA