Never heard of Matsushita? You are not alone.

Matsushita, which makes a wide range of gadgets including flat-panel TVs, digital cameras and car navigation equipment, is far better known outside Japan as Panasonic.

Matsushita, founded by entrepreneur Konosuke Matsushita in 1918 in the western city of Osaka, has used the brand name Panasonic for products sold abroad and electronic and audiovisual products for the domestic market since 1955. Matsushita, who died at age 94 in 1989, was one of Japan’s most respected entrepreneurs.

With effect from October 1st 2008, Matsushita Electric Industrial is ditching its founder’s name to trade under one name globally — Panasonic, its best-known brand.
In conjunction with the cooperation’s 90th anniversary in business, the name change intends to gain more international recognition and to shift its business focus to the global market. It is also hoping that this and an $11 billion reserve of cash will increase its growth outside Japan and help the company compete with rivals like Samsung and Sony.

Matsushita’s U.S. division made the switch four years ago, but the Japanese parent company was more reluctant to ditch the traditional banner, which honored the company’s founder.
President Fumio Ohtsubo was the first to tackle the issue head-on earlier this year, as there was a big downside to inaction with the division of the company’s marketing budget.
Marketing executives divided up the money among the different brands, watering down the impact of the branding message. That showed in the split personality the company presented to the public.

For years, Matsushita’s rivals ridiculed its look-alike products as “Maneshita”, a pun on the company’s name that translates to copycat. Overseas, the branding was more consistent, under the brand Panasonic. Few consumers were familiar with the Matsushita name. In addition, corporate execs from Panasonic in New Jersey and others totally butcher the pronunciation of Matsushita.

Expansion overseas is a critical task for Matsushita, which earns half its revenue from its home base of Japan, where the population is aging. Sony earns more than three quarters of its sales outside Japan, helped in part by its strong brand name.

In terms of brand awareness, a crucial element in the industries of consumer electronics and home appliances, Panasonic ranks 78th on Interbrand’s most recent list of top global brands, well behind Samsung, at 21st, and Sony, ranked 25th. With the unification, the company will lead all its resources and activities to enhancing the value of ‘Panasonic’ brand and its slogan ‘Panasonic ideas for life.’

The company also sells home appliances such as washing machines and refrigerators under the National brand in Japan, but will also switch to Panasonic, ending the brand’s 80-year history. It expects to complete the changeover by the end of March 2010.

Matsushita’s decision to change its name comes half a century after a rival company, Tokyo Telecommunications Engineering, was renamed Sony.

Cliché as it may sound, but it’s always better late than never.’