Brand Promotion Grant (BPG)

Malaysia External Trade Development Corporation (MATRADE)

Brand Promotion Grant (BPG)

Objectives

The objective of the Brand Promotion Grant (BPG) is to develop and promote in the international market, brand names owned by Malaysian companies for products and services originating from Malaysia.

Selection Of Brand

The Brand Promotion Grant will only be granted to eligible brands identified to be assisted by the Brand Grant Approval Committee. Evaluation of brands to be selected for the grant will be based on several considerations including:-

•	Branding strategy and Plan.
•	Business and Marketing Plan.
•	Resources invested by the company on branding and its commitment to the branding programme.
•	Activities undertaken to promote the brand.
•	Trend in overall sales and exports over past 3 years.
•	Market share both local and overseas.
•	Potential for the brand to further expand in the international market.
•	How the brand will help project Malaysia's image as supplier of quality products and services.

Form Of Grant

Companies can apply for either one of the following forms of grant:-

•

A 100% reimbursable grant for the development and promotion of brand subject to maximum grant of RM 1 million. Small and Medium-Sized Enterprises are eligible to apply for the 100% reimbursable grant. For the 100% reimbursable grant, only up to a maximum 10% of total grant approved will be disbursed in the form of "advance payment" , while the remaining 90% of grant approved will be disbursed as 100% reimbursable grant . Advance payment will be considered for activities approved in the Branding Plan subject to relevant documentary evidence of the activities to be undertaken by company.

•

A 50% reimbursable grant for non-SMEs subject to maximum grant of RM 2 million.

To encourage companies to promote the brand overseas, not more than 10% of the total grant approved should be spent on promotion of the brand in the domestic market.

Eligible Criteria

To be eligible for the grant companies must fulfill the following conditions:-

•	Incorporated under the Companies Act 1965.
•	At least 60% equity is owned by Malaysians.
•	Company owns the brand and is the registered approved owner of the trademark registered in any country and has rights to it.
•	Annual sales turnover of not more than RM 250 million (based on the latest financial report).
•	For 100% reimbursable grant:- manufacturing company's - annual sales turnover must not exceed RM25 million or with not more than 150 full time employees. services sectors enterprises - annual sales turnover not exceeding RM 5 million or with full time employees not exceeding 50.
•	Product/services are already exported with least 20% of the sales from export.
•	For companies that do not meet the 20% export condition, the application may be considered based on the export potential and commitment of the company to develop the brand into an international brand. Factors to be considered:- Resources invested on branding and company's commitment to the branding programme. Promotion programmes and activities undertaken by company to promote brand. Indication of market penetration and consumer acceptance (e.g. share of market) both local and overseas. Trend in overall sales and export growth. Awards and recognitions received. International quality certifications obtained such as HACCP, ISO or Quality Improvement Programme, GMP or approved the use of the 'Malaysia's Best' quality seal.
•	Products/services should originate from Malaysia. For products manufactured offshore , the brand can be considered if the company undertakes value added activities in Malaysia such as research and development, designing, packaging, marketing, distribution and invoicing.

Branding & Marketing Plans

Companies interested in applying for the grant must submit the following document and information:-

(a) Comprehensive proposal for the development and promotion of the brand including:-

• Background of the brand, the brand concept, its values, current market position.
• Measures already undertaken to develop and promote brand.
• Detailed costing on the activities for which the grant is required.
• Detailed schedules of implementation of branding activities to be undertaken
• Proposed performance report on the implementation of the branding activities including milestones and key performance indicators.
• How the brand will benefit the company and country's image.
• Resources allocated to the brand development and promotion strategy.
• Key Performance Indicators to measure the brand performance based on intended marketing strategies.

b) Business and Marketing Plans for 2 years outlining:-

• Target markets.
• Marketing strategies to penetrate the target markets.
• Brand Communication Plan.
• Allocation of company's financial resources to implement the plans.
• Current and projected sales both locally and overseas of the brand.

c) Corporate profile, organisational structure, profile of management and branding team.

Eligible Expenses

The grant will cover the cost of developing and promoting only one brand per company. Companies can apply for the grant for the following expenses involved in brand development and promotion:-

Branding/Marketing Strategy Consultancy (not more than 10% of grant):

• Brand Strategy, creation and development
• Marketing strategy and implementation
• Media Strategy
• Brand Communication Strategy
• Brand Management System
• Brand Manual & Information System

Brand Development:

• Logo design and redesign
• Product design and redesign
• Packaging design and redesign
• Intellectual property matters, including registration and trademark works.
  (not including renewal of trademark and patent)

Brand Promotion:

• Customer relationship management system to monitor brand
• Advertising and Promotion (maximum 50% of grant)
• Enhancement of Brand Website
  (maximum grant RM50,000)

Brand Market Research/Service:

• Brand Audit/Valuation
• Research
• Brand Tracking

Note:- Expenses listed are only a guide. Not all activities may be relevant to the company. Companies should apply for the grant only for expenses relevant to the branding plan.

Application Procedure

Companies are encouraged to apply for the grant at least three months before undertaking the activity for which the grant is required. Grant approved is based on the projected spending over the next 2 years.

Application for the grant is made using the application form BPG (1/04) which is available free of charge at MATRADE or can be downloaded from MATRADE or can be downloaded from MATRADE's website at www.matrade.gov.my

All supporting documents that companies must provide when applying for the grant are described in the BPG application form and the checklist attached to the form. Companies are advised to submit all the relevant documents when applying for the BPG.

Companies are required to submit all claims for the grant within 3 months of undertaking the activity. Claims must be accompanied with original receipts and invoices or copies certified by external auditors with relevant supporting documentary evidence related to the implementation of the activities concerned or work undertaken for making claims.

Contractual Obligation And Reporting

Companies approved the grant will be required to:-

• Sign a Letter of Acceptance with MATRADE indicating that if the company fails to fulfill its obligation in implementing the branding plan, MATRADE has the right to cancel the approval of the brand promotion grant and seek reimbursement of the grant already disbursed.
• Submit quarterly based on the format as in Annex 1 or progress report base on the implementation milestone (whichever is earlier) of the activities implemented for which the grant is disbursed.

Application for the grant is made using the application form (BPG1/03) which is available free of charge at MATRADE or can be downloaded from MATRADE's website.

www.matrade.gov.my

Download Application Form

Brand Promotion Grant Form

Brand Promotion Grant Checklist

Brand Promotion Grant Quarterly Reporting Format

Contact

MATRADE
Menara MATRADE,
Jalan Khidmat Usaha,
Off Jalan Duta.
50480 Kuala Lumpur,
MALAYSIA
Telephone: 603-6207 7077
Facsimile: 603-6203 7037 / 7033
E-mail: info@hq.matrade.gov.my
Web-site: www.matrade.gov.my