The decision comes after a board meeting on Thursday, pending approval from shareholders in June, and will align the company's global brands under one banner.

According to Matsushita president, Fumio Ohtsubo, the Panasonic brand has suffered under the old name, which represents the company's founder, Konosuke Matsushita.

A report from the Associated Press says the move is evidence of the importance of brand power in an increasingly competitive consumer electronics marketplace, inhabited by the likes of Sony Corp and Samsung.