Importance of Brand for SMEs

Journal Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319‐5614 Volume 2, No.3, March 2013 _________________________________________________________________________________ Importance of Brand for SMEs Dr. Abhijit Chakraborty, HOD, Dept of Mechanical Engg, Global Institute of Management and Technology, Krishnagar , West Bengal, India Prof.(Dr.)Sudip Kr. Deb, Professor, M.E. Dept., Assam Engineering College, Guwahati, India G M. Mehebub Mostafa, B. Tech, 4th Year, Student of The Dept of Mechanical Engg, Global Institute of Management and Technology, Krishnagar, West Bengal Ashish Choudhary, B. Tech, 4th Year, Student of The Dept of Mechanical Engg, Global Institute of Management and Technology, Krishnagar,West Bengal ABSTRACT Brands play a major role in differentiating one enterprise to another. At the beginning brands are used for large enterprises. But now a day it is also used for SMEs i.e.; small manufacturing enterprises. This research according to literature establishes the primary obvious and recessive factors of brand equity increment. This research focuses on the increment strategy of time honoured SMEs brand equity using empirical method. The objective of this paper was to gain better understanding of the brand for the existence of SMEs. Research finding pointed out of the impact and benefit of using network marketing. Word of mouth was also found to be an important component in the creation and establishment of SMEs brand. Lastly, results reflected the key played by the entrepreneur in establishing the SME brand. KEYWORDS: - Brand, equity, SME, Branding, Creativity, resonance. INTRODUCTION SMEs have long history and famous products or techniques passes down from generation to generation, and their brands are full of traditional cultures but their production and operation are of small-size. Brand equity is a phrase used in marketing industry which describes the value of having a famous brand-name. A brand can generate more money from products. Consumers believe that a product with well known name is better than a product with less well known name. The definition of SMEs differs from country to country; however, Hibbert (2000, P.5) point out that “as a class SMEs are clearly distinguishable in any country,either developed or developing. The factors that set them apart are essentially qualitative and comparative”. However, not even this is consistence as some countries may”define SME to be an enterprise with less than 500 employees, while another country may define the cut-off to be 250 employees”(Ayyagari et al.2005,p.3) In India, small enterprises are generally classified as having an annual turnover of less than Rs.5 million and not more than 40 employees. However, depending on the industry this amount can be as low as Rs. 2 million or as high as Rs.20 million. Medium sized enterprises are generally classified as having an annual turnover of less than Rs.25 million and not more than 300 employees. Again, www.borjournals.com depending on the industry this amount can be as low as Rs.65 million. In an enterprise job opportunity proportionally increases with the growth of business. When demand of product rises the company needs man power in its several divisions such as, production, distribution, market review etc. Automatically vacancy is created in those places. This is no doubt a positive aspect in the latest crisis of the global job market. Although few companies have been able to reach this ideal, but still many companies only to a fraction of their previous level on brand based empirical method. The purpose of brand equity metres is to measure the value of a brand. A brand encompasses the name, logo, image and perceptions which consequently identify a product, service or provider in the minds of customers. It takes shape in advertising, packaging and other marketing communications and becomes a focus of the relationship with the consumers. LITERATURE REVIEW A strong brand is the most valuable intangible assets for any company (Clark, 2002, p. 30; Keller, 2003, p. 11; Keller & Lehmann, 2003, p. 27). From this perspective, it is essential to have availability of a brand equity measurement and management system (Aaker & Joachimsthaler, 2000). Recently, we have developed a new conceptual brand equity model, reported in Journal of Blue Ocean Research Journals 45 Journal Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319‐5614 Volume 2, No.3, March 2013 _________________________________________________________________________________ Management Systems, No. 3, 2004, pp. 37-51 (Martensen & Grønholdt, 2004). The purpose of this paper is to empirically validate this new brand equity model and show how it can be applied as a tool in the brand management process. However, most of this research has been based on large and multinational companies (krake, 2005). Small firm increasingly becomes an important part of the global economy, as a result “more and more researchers are seeking to understand the practises and activities of these enterprises”. Hill and Me Gown(1999),Wong and Merrilees (2005), state that comparatively little research has been undertaken into SMEs branding companies who build strong brands which have an alternative to competing on price and specification (Aaker, 1992) METHODOLOGY: - The data have been collected by Research design, Population and Sampling, Research instrument, interviews, study of previous records and observation. This relevant information have been taken into account and analysed by inspecting the pitfalls of the existing system of the concerned SMEs. CASE STUDY It is a method on which the whole process is going on. Case selection was derived from the theory in the following ways: research design, population and sampling, research instrument, process of interview, analysis of documentary evidences and observations. The research schedule conducted ten face-to-face interviews over a period of a week. Interviews typically began in most cases with senior production managers but in one case personal manager. These individuals provided contextual information on the organisation and specific information concerning production for formal manufacturing strategy and very importantly indication as to the key informants within the organisation. The studied case in the content is summarized below:Small manufacturing enterprise of Panagarh, Burdwan, West Bengal,India named XYZ (for some obvious reason) is a manufacturer of different www.borjournals.com models and design of garments with the help of wool & cotton. During study it is found that the enterprise has been in operation over 30 years. Here each order has practically been designed according to customer specification. The enterprise now produces 250 – 500 products per order. But there was no brand equity for the product of the enterprise. They have no idea about the brand value. The enterprise is buying good quality of raw material, it uses high cost wool, they already have some skilful labours and they also have advanced manufacturing machines. But the enterprise never thinks about advertising, sales promotion and customer relationship management (C.R.M). They usually depend upon their own contacts which is very small for this globalised market. However, the product of the enterprise is not as valuable as other branded products. The enterprise makes some good quality products but for the lack of brand equity the delivery to the customer becomes poor. To overcome the shortcomings the followings are highly noted. FINDING AND ANALYSIS An overview of brand equity in SMEs implementation issues and future scope is shown below: To identify what method of brand equity should be innovated and adopted fruitfully.  To improve the market demand of the product and make the company well-known in the global market.  To increase the quality of the product and create man-machine relationship very well.  Thus helping the creation of relationship between company and customers very well as well as increasing C.R.M .  Advertisement plays an important role in today’s competitive world. Using of brand SMEs can advertise their product more perfectly. Blue Ocean Research Journals 46 Journal Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319‐5614 Volume 2, No.3, March 2013 _________________________________________________________________________________ www.borjournals.com Blue Ocean Research Journals 47 Journal Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319‐5614 Volume 2, No.3, March 2013 _________________________________________________________________________________ CONCLUSION This research helps building a brand of small manufacturing enterprises. It creates an opportunity for many SMEs to enter successfully into global market. In India brand image is actually used for large -Industries. But if SMEs try to find out the customer demand better than other companies they can absolutely create a brand on market. So SMEs can also create some demand of skilful labours, and also some advanced manufacturing machines. This approach helps SMEs create their own identity in the global market and increase their popularity. Once a product becomes well known the company slowly gets popularity. With the increase of demand of a product the company has to take care of many things that the consumers expect. These are improvement of a quality according to up to date demand depending on the craze of the consumer. So if a company decides to create the opportunity it must not forget these. As a result it will always be in search of new ideas, new effective machines, and above all intelligent and creative man power. Herein lays scope of job. This is effective on the part of both the company and the society. REFERENCES [1] Aaker DA. (1996). Measuring brand equity across products and markets. California Management Review;38(3):102- 20 [2] Alfnes, F. and K. 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