Strategic branding roadmap for SMEs operating in business‐to‐business sector: A study on Indian auto component sector

Abstract

Purpose

Operating as a commodity disables the scope of differentiation. In turn, the organization becomes vulnerable to competition. A strong brand ensures the selling company to get premium prices and in the best case rejection of competitive products by the buyers. Branding was often seen as the province of business‐to‐consumer (B2C) products. But in reality, the role of brand in business‐to‐business (B2B) market is also important. B2B sector is fiercely competitive in nature and in the recent past a strong need has been felt by small to medium‐sized enterprises (SMEs) operating in this sector to elevate from commodity construct to brand for sustainable competitive advantages. Products from SMEs, in the B2B market, have nearly identical physical looks and performance specifications. As a result, it is difficult to achieve differentiation. In this backdrop, the purpose of this paper is to study branding readiness of SMEs which are operating in a B2B market and a strategic road map has been proposed.

Design/methodology/approach

An empirical analysis has been made to understand relevance, objectives, benefits and hindrances of branding in this industry. In the second stage, a verbal conceptual model has been proposed to explain strategic steps of branding for SMEs which are operating in the B2B sector.

Findings

From the research it has been found that SMEs having different motivations behind branding based on criticality of the components and their market orientation. A strategic branding roadmap has been proposed in this section. Construction of the “Brand Initiative Framework” involves plotting of a “degree of product criticality” and “degree of market orientation” in the matrix form, each made of two states – high and low. The objective of this decision matrix is to guide SMEs operating in B2B sector to opt for requisite branding initiatives.

Practical implications

The proposed “Brand Initiatives Framework” can be of immense use to SMEs for managing branding initiatives to ensure clutter free differentiation with target segment.

Originality/value

This paper presents a generic approach that may work beyond country boundaries. The conceptual model of “Brand Initiative Framework” is of immense help to manage branding activities in a strategically profitable way.

Citation

Roy, D. and Banerjee, S. (2012), "Strategic branding roadmap for SMEs operating in business‐to‐business sector: A study on Indian auto component sector", Journal of Research in Marketing and Entrepreneurship, Vol. 14 No. 2, pp. 142-163. https://doi.org/10.1108/14715201211271384