Hello Good people! Happy Tuesday 👋 Welcome back to my blog! And today I am going to tell about branding. Why is branding important to the company? Yes, to the analogy of this case I will try to use an issue that is being hot tread in the sector of business and the industry today is one of the pioneers of tea bags company in Indonesia, PT Sari Wangi AEA. Do you want to know more details? Let's check it out!
PT Sariwangi AEA who gave birth to Sari Wangi tea was declared bankrupt by the Central Jakarta Commercial Court on Tuesday 16 October 2018. The company founded by Johan Alexander Supit in 1962 is a debt entangled more than 1 trillion rupiahs. Does it mean we can't try a teabag Sariwangi again? It turns out that in 1989, Sari Wangi brand has been bought by Unilever. Once again, remember this! Purchased is the brand Sari Wangi, not PT Sari Wangi AEA. In other words, PT Sari Wangi continues to produce and supply Sari Wangi tea to Unilever but Sari Wangi brand has become the property of Unilever.
19 years later, specifically at the beginning this year Unilever disconnects the contract with PT Sari Wangi AEA to supply Sari Wangi tea to Unilever. We do not know where Unilever gets its replacement supplier, which is obviously Sari Wangi product is still available in the market until now. And this month, PT Sari Wangi declared bankrupt. Interestingly, Sari Wangi tea will remain in the market because the owner of the brand is Unilever still exist. The nation of the company that gave birth does not mean "dead " products. Many lessons can be learned from this incident:
1. The brand is very important. Even brand prices can be more expensive than the physical assets owned by a company. Intelligent and resourceful people will focus on building brands and intangible other assets. In the language of self-development, the brand is the same as self-reputation. With this reputation we can have an increasingly expanding influence, your prices will be more expensive. A good reputation will also save us as we fail and fall. Build your reputation higher, stronger and more rooted.
2. Keep continuing to focus build a business that will not lose money.
3. Reduce the appetite for debt. The lust to raise its business, made the management of PT Sariwangi AEA in 2015 decided to borrow money to 5 banks namely HSBC, ICBC, Rabobank, Panin, and Commonwealth. Apparently, the project they are developing with this loan proceeds is unexpected. Finally, the company that has stood more half a century is unable to afford and declared bankrupt. Do not just for the sake of prestige and lifestyle, you are willing to owe anywhere, don't let you robbing peter to pay paul just because you want to look to be a highly respected. Understated life will precisely add and increase your reputation.
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