Dr. Sean EnnisDepartment of Marketing

University of Strathclyde in Glasgow

� The concept of branding

� Importance of branding for SME’s

� How are SME’s using branding?

� Some tips for developing brands in SME’s

� Questions / discussion

� ““““A brand can be described as an A brand can be described as an A brand can be described as an A brand can be described as an identifiable product, service, identifiable product, service, identifiable product, service, identifiable product, service, person or place, augmented in person or place, augmented in person or place, augmented in person or place, augmented in such a way that the buyer or user such a way that the buyer or user such a way that the buyer or user such a way that the buyer or user perceives relevant, unique, perceives relevant, unique, perceives relevant, unique, perceives relevant, unique, sustainable added values which sustainable added values which sustainable added values which sustainable added values which match their needs most closely.match their needs most closely.match their needs most closely.match their needs most closely.””””(de Chernatony et al, 2001)(de Chernatony et al, 2001)(de Chernatony et al, 2001)(de Chernatony et al, 2001)

� Has been around since time began

� Identity. Differentiation. Branding cattle in the Wild West!

� Traditionally the preserve of large-scale companies; particularly in the FMCG sectors

� Comparatively little research done in the area of branding for SME’s – although this is changing

� Helps consumers to differentiate between Helps consumers to differentiate between Helps consumers to differentiate between Helps consumers to differentiate between productsproductsproductsproducts

� Helps to build confidence and trust in a Helps to build confidence and trust in a Helps to build confidence and trust in a Helps to build confidence and trust in a productproductproductproduct

� Makes it easier for the seller to communicate Makes it easier for the seller to communicate Makes it easier for the seller to communicate Makes it easier for the seller to communicate the values of the brand to customersthe values of the brand to customersthe values of the brand to customersthe values of the brand to customers

� Helps to command a premium price for the Helps to command a premium price for the Helps to command a premium price for the Helps to command a premium price for the sellersellersellerseller

� Essential for all companies and organisations in Essential for all companies and organisations in Essential for all companies and organisations in Essential for all companies and organisations in a market where consumers a market where consumers a market where consumers a market where consumers ““““enjoy a tyranny of enjoy a tyranny of enjoy a tyranny of enjoy a tyranny of choicechoicechoicechoice””””

AttributesBenefits

PersonalityValues

Well built

Durable

High prestige

Safe

Reliable

Social status

I want to be safe

I want to be respected

Wealthy

Successful

Secure

� A combination of A combination of A combination of A combination of functionalfunctionalfunctionalfunctional and and and and symbolic symbolic symbolic symbolic values that the consumer perceives in the values that the consumer perceives in the values that the consumer perceives in the values that the consumer perceives in the brandbrandbrandbrand

� Functional?Functional?Functional?Functional? Relates to the tangible, rationally Relates to the tangible, rationally Relates to the tangible, rationally Relates to the tangible, rationally assessed product performance benefits that assessed product performance benefits that assessed product performance benefits that assessed product performance benefits that satisfy customersatisfy customersatisfy customersatisfy customer’’’’s practical needss practical needss practical needss practical needs

� Symbolic? Symbolic? Symbolic? Symbolic? Relates to the intangible feelings Relates to the intangible feelings Relates to the intangible feelings Relates to the intangible feelings and symbolic benefits that satisfy the and symbolic benefits that satisfy the and symbolic benefits that satisfy the and symbolic benefits that satisfy the customercustomercustomercustomer’’’’s selfs selfs selfs self----expression needs (emotional)expression needs (emotional)expression needs (emotional)expression needs (emotional)

� It is generally accepted that both functional It is generally accepted that both functional It is generally accepted that both functional It is generally accepted that both functional and symbolic benefits influence the and symbolic benefits influence the and symbolic benefits influence the and symbolic benefits influence the customercustomercustomercustomer’’’’s purchase decision.s purchase decision.s purchase decision.s purchase decision.

� Brand equity: Brand equity: Brand equity: Brand equity: a measure of the customer’s attachment to a brand: a measure of loyalty, perceived quality and differentiation.

� Provides an opportunity to build and sustain a premium price

� Brand management is not given the priority it Brand management is not given the priority it Brand management is not given the priority it Brand management is not given the priority it needs for a strong brand image to be needs for a strong brand image to be needs for a strong brand image to be needs for a strong brand image to be constructedconstructedconstructedconstructed

� Responsibility lies in all cases at the highest Responsibility lies in all cases at the highest Responsibility lies in all cases at the highest Responsibility lies in all cases at the highest level of managementlevel of managementlevel of managementlevel of management

� CoCoCoCo----branding receives little attentionbranding receives little attentionbranding receives little attentionbranding receives little attention

� Selling is importantSelling is importantSelling is importantSelling is important

� Views on branding are limited often to Views on branding are limited often to Views on branding are limited often to Views on branding are limited often to advertisingadvertisingadvertisingadvertising

� The need to focus on one or two (at most) key brands

� In the marketing approach, focus on one or two key brand associations

� Essentially a limited view of what constitutes brand building and development.

� The wine business (Mowle and Merrilees, 2005)

� Case studies of eight wineries in Australia

� Common factors in branding?

� Producing a premium product

� Conveying an image of quality

� Using a name and symbol

� Forming business relationships and networks

� Participating in regional events, festivals and shows

� Providing friendly service at the cellar door

� Three of the wineries were found to implement product-driven branding

� The remaining five were found to implement marketing-driven branding

� ProductProductProductProduct----drivendrivendrivendriven� Focus on the cellar Focus on the cellar Focus on the cellar Focus on the cellar

door being on the door being on the door being on the door being on the winewinewinewine

� Personal approach Personal approach Personal approach Personal approach ––––where visitors can where visitors can where visitors can where visitors can meet the meet the meet the meet the winemakerwinemakerwinemakerwinemaker

� A limited amount of A limited amount of A limited amount of A limited amount of marketing and marketing and marketing and marketing and promotionpromotionpromotionpromotion

� MarketingMarketingMarketingMarketing----drivendrivendrivendriven� Focus on the cellar Focus on the cellar Focus on the cellar Focus on the cellar

door on an door on an door on an door on an experienceexperienceexperienceexperience

� A greater emphasis A greater emphasis A greater emphasis A greater emphasis on marketing and on marketing and on marketing and on marketing and promotionpromotionpromotionpromotion

� Extending the Extending the Extending the Extending the product range to product range to product range to product range to merchandisemerchandisemerchandisemerchandise

� It would be wrong to suggest that one approach is better than the other

� There is an inter-dependency between the functional and the symbolic properties of branding

� Much will depend on how you wish to position your brand vis-à-vis the competitive brands in the sector

� Avoid adopting too prescriptive an approach to branding: the role of branding will vary considerably

� Set the building and management of your brand as being high on your list of priorities –critical role her for the owner-manager

� In many cases, the owner is the brand!

� Examine the possibility if linking your brand to another stronger brand – co-branding

� Is your brand more important and better known than your company name? If yes, then consider changing the name to that of the brand

� Focus on one brand to maximise your spend (certainly when working with limited resources)

� Focus on one or two central features that reinforce what your values are all about and that address customer needs and requirements

� Work closely on achieving consistency and originality across logos, packaging, labels and so on

� Aim to achieve consistency across your marketing communications

� Encourage passion for the brand

� Focus – particularly for service-oriented products on the customer experience.

� Linkages

� Marketing works projects

� Consultancy

� Dissertations