The article proposes an effective scheme to implement a Branding system in SMEs. It clearly and simply defines what branding is and focuses on two success stories, the automotive industry in Germany and the Kaxob in Mexico.
Branding has turned out to be a powerful, clear and determining tool within the fierce world of brands. For more than a quarter of a century, advertising style and rules have set trends, that is, they dictate how to communicate and even what to communicate. We live in a dynamic society in which the positioning of organizations is the only and most coveted tangible indicator of success.
What is branding? First of all, branding refers to a series of strategies around building a brand. On the Internet, branding goes beyond advertising strategies, that is why the world of advertising and brand positioning have segmented the market and included the Internet as an individual category.
Branding can be understood as an articulated and systematized practice to create prestige and great value for a product with marketing support; This brand may or may not be associated with the name of the company. In essence, branding empowers one or more aspects of a brand's communication and image.
The principles of branding must be applied successfully in order to achieve a tangible increase in business figures, which is the main objective of every company, however, the brand vision has been accepted recently with great enthusiasm. Why. It's simple, the brand vision, which denotes a growing extension of branding, generally starts working after more than ten years, but once it takes off, it generates accelerated exponential growth. Example: Countries compete to attract tourism, investment and exports. When you have a clear and positive reputation, as is the case in Germany, the value of the brand opens doors. Take the case of the car industry in Europe.
While most buyers demonstrate a preference for local brands, the second option invariably falls on German brands, and not necessarily Mercedes or BMW. In this sense, the industry has impressive brand power and added value by selling top German engineering as excellence.
To create a valid brand strategy, as well as the communication plan, you have to keep in mind that each audience must have its own tactic. To achieve this objective, it is necessary to develop a system so that the different organizations involved cooperate in a coordinated manner. This presents a great challenge, as governments need to be included as promoters of the initiative. This is not an easy task, but it has now become a priority inside the boardrooms.
In branding, there are indicators that can accurately locate whether or not a company is located within the appropriate level of growth, some of them are: organizational infrastructure, articulated outsorcing structures, budget allocated to marketing, and finally the clearest of all, the liquidity level of the company.
These indicators are also a clear reference for small and medium-sized companies, which very often do not have the adequate infrastructure to efficiently develop their brand.
In branding, unlimited resources is not equal to sure success, but the meaning "Safe branding, success in process" is required. That's right, security when implementing a branding strategy is essential for all SMEs.
Every company, no matter what organizational level it is, must be sure of two very important aspects:
- The product or service you offer is clear and defined. The product or service has a specific and segmented potential market.
These two elements are generally not taken as a priority when planning business strategies, in many cases, this is because entrepreneurs are financially limited. But the limitations often start from the planning itself.
It is necessary to understand that in order to effectively communicate our brand, it is vital to understand our market from two angles: what you need and what you will accept.
From this point of view, the entrepreneur can take advantage of its limitations, embracing possibilities and carefully studying the infinite potentialities. Such is the case of Kaxob, a Mexican SME that distributes and promotes Mexican crafts within a complicated market but with broad prospects for development.
The company was born in 2001 and found its best ally in the corporate niche, since its objective was to sell to large companies the idea that it was better to give a craft to its customers than traditional pens, diaries or wines, and it did so. Currently billing more than 9 million pesos and is developing a growth plan focused on the strategy of Internet branding.
Competitiveness often becomes the most limiting factor for microentrepreneurs, since the organizational structure is based on the expectations and realities of the entrepreneur and not on the potential that can be determined from an adequate business projection.
Next I propose three irrefutable laws (if it is decided to follow the scheme) to develop a planning scheme within the world of SMEs. They are clear, simple and decisive.
- Market, market, market. An SME cannot develop a strategy to sell a product or service without specifically knowing the target or the specific market. Many entrepreneurs have failed in their idea of forming a company because they do not implement an adequate market study. In this sense it is not necessary to be confused. Outside support or outsourcing is the best solution. It will surely be an unexpected investment, but it will chart the path of your business success. Do i know what i sell Get to know my product or service thoroughly and know how to transmit it. Often, it is positive to ask ourselves this question every time we talk about a possible projection of our product or service. This will help us formulate a clear idea of what we want to convey. Up to this point we will know if our entrepreneurial project is viable and if the company is profitable. Clarity, simplicity and creativity. Once we are sure that our product or service is profitable, adherence to these three elements is essential:
- Clarity: It implies generating, controlling and maintaining consistency of our product or service. If it has become a brand, it is essential that the message of our brand is CLEAR. Simplicity: This is frequently an aspect of debate among entrepreneurs, since it is intended to cover a large organizational structure without taking into account the serious repercussions and risks that this type of action entails. In this case, simplicity is the best ally for SMEs. Creativity: Once we can define our product or service and apply an added value, generating clarity and simplicity, we need to exploit our creativity.
Creativity is often the surprise and key element for many SMEs to stand out from others that did not even remain in the market. At this point we need to make use of our strengths (and measure our weaknesses) and generate added value. What do I offer, that nobody, absolutely nobody offers? If you are able to accomplish this feat, you will surely have solid elements in our organization.
Well, I have left an element that I consider fundamental and that I do not propose as a law but as an attitude. I refer to leadership, which is the most important and dynamic element in the development of a company. Being a leader invites others to be so, projecting leadership will always attract more clients.
"People start being successful the minute they decide to be" Harvey Mackay
