Abstract: Brand-building in SMEs is an area of study in its infancy. However, considering how literature has been published about branding in general, all theories and studies are based on large firms.
The purpose: This paper proposes exploring understanding of branding practices among SMEs in the NTEs and the possible challenges they face in their attempt to brand in this competitive marketing environment.
Design/methodology: A qualitative approach based on in-depth interviews with six (6) SMEs in the NTEs was undertaken. Striking results were obtained from this exploratory study.
The findings: The study found that SMEs in the NTEs have a shallow understanding of brand building; used at least two brand elements with the brand name, logo and symbol dominating.
The study also revealed that limited understanding of brand-building; difficulty in getting sufficient funding; general slowness and time related challenges; operational-level challenges in marketing communications campaigns; and the increasing costs of new product introduction are the challenges facing SMEs in the NTEs. Other notable challenges emerged out of the study were lack of technical expertise among SMEs; difficulty in obtaining a patent right; the proliferation of brands in the market place; and the pronounced economic crisis.
Research limitation: The findings of the study is limited to only NTEs in the manufacturing sector in Ghana and may not be necessarily projected on to SMEs in other sectors of the Non-Traditional Exports in Ghana and hence the sample size is relatively small.
Practical implication: The directors of NTEs see branding as something that belongs to only the big companies. However small companies (NTEs) with limited resources are not restricted to branding and therefore can brand their products or services as well. Also, the means of branding are often different. The current study encourages SMEs in the NTEs to systematically think of the potential benefit of branding for their business and develop innovative, targeted and affordable approaches for brand- building in their respective firms.
Originality/value: The recent empirical study makes an original contribution to the existing literature by augmenting knowledge of branding in the context of SMEs in the NTEs sector.
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