Developing a Model on Brand Communication Strategy for Sustainable Malaysian Palm Oil Industry
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Grant Category, Year: Research Grant, 2019
Abstract
Malaysia is known as one of the largest palm oil producers in the world. The country has expanded the export destinations to more than 200 markets globally. In 2018, total export of Malaysian palm oil products has increased by 3.8% from 2017. Despite the growth in the palm oil productions and export volumes, Malaysian palm oil industry (MPOI) is facing some challenges: In 2018, export earnings from palm oil declined by 16.2% and export volume of palm oil reduced marginally by 0.4%. One major cause is the extensive campaigns (since 2007) to stop buying palm oil brands because this commodity is linked to tropical deforestation. The movement by environmentalists and activists against traditional palm oil has given tremendous impact to the MPOI. The social media edges in 21st century have gradually facilitated activists to rapidly and inexpensively spread the message to both domestic and global MPOI stakeholders including employees, reporters, government bodies, investors, and customers. Despite the government efforts of promoting the Malaysia Sustainable Palm Oil Certification (MSPO), stakeholders in European countries such as the UK still perceive the palm oil to be environmentally unfriendly, indicating a weakness in our communication strategy. Considering the palm oil is the largest produced and traded vegetable oil in the global vegetable oils and fats market, it is precarious for MPOI to retain its current global market position. Thus, this critical question arises, how can MPOI develop sustainable brand communication strategies to build confidence, awareness and image among the stakeholders?
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