Brand building challenges for MSME

Abstract

The purpose of this paper is to understand brand identity and challenges in brand management in SMEs. The study has been conceptualized with a view to strengthen and augment various initiatives to showcase the strength of MSMEs. This study is an outcome of the need felt or that could be realized by the SME sectors to identify the need for branding. A bundle of marketing innovations, including coherent marketing programs and the use of the country of origin image, support the brands. This study aims to elaborate on branding as a marketing principle relevant to the entrepreneurial quest for stimulating demand and creating competitive advantage. It also aims to highlight the appropriateness of branding to SME practices and to identify relevant guidelines that SMEs could follow in building a successful brand. Brand diversification strategies contribute to SMEs' growth. Results have showed that the founders' value and beliefs set the tone for the core competencies to be developed and transmitted through brand identity. Results need to be expanded and confirmed with other international SMEs that are not as well established and that do not use the country of origin in the brand image. Entrepreneurs need to be aware that the public image may reflect consumers' perception of the firms. Consequently, this image should be carefully nurtured. Because of resource constraints, a limited number of product or service features that complement the entrepreneur's core values should be selected to enhance brand equity. Among those, features linked to the firm's capabilities and to the country of origin would be the most cost-efficient and effective. Moreover, a number of brand diversification strategies can be used by SMEs to spur the growth. The study emphasizes the use of strong brand associations by SMEs, primary and secondary, a focused and integrated communication strategy to enhance the brands as well as a creative approach to brand strategies to contribute to the growth. In a global business environment where competitive advantage is not necessarily dictated by a company’s size or access to resources, it would appear that successful brand management is one of the major keys to success.

Keywords: Branding, Brand Equity, Brand Management, Brand Diversification, Integrated Communication, SMEs, Entrepreneurship