Master Thesis

HALMSTAD

UNIVERSITY

Master's Programme in Strategic Entrepreneurship forInternational Growth 120

Exploring Branding During Exportation: AMulti-case Study of SMEs in the B2B Sector

International Marketing Strategy, 7.5credits

Halmstad 2020-05-29

Asoh Gwendoline Ngwa, Muhammad Zaigum Awan

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Table of Contents

ABSTRACT ................................................................................................................................... 4

Chapter 1: INTRODUCTION ........................................................................................................ 5

1.1 Background of the study ................................................................................................................................... 5

1.2 Discussion of Research Question and Objective ................................................................................................. 6

1.3 Research Question ............................................................................................................................................ 8

1.4 Outline of the Study .......................................................................................................................................... 8

Chapter 2. LITERATURE REVIEW ................................................................................................ 9

2.1 Definition and Concepts of Small and Medium Sized Enterprises ........................................................................ 9

2.2 Branding......................................................................................................................................................... 10

2.2.1 Branding in International Market ................................................................................................................. 10

2.2.2 The Importance of branding in industrial markets......................................................................................... 11

Table 1: Condenses the advantages of branding for B2B providers and purchasers. ............................................... 12

2.2.3 The Role of Branding in SMEs ....................................................................................................................... 13

2.3 B2B Model of Branding in SMEs ...................................................................................................................... 14

Figure 1: B2B Model of Branding in SMEs SMEs adapted from Lin, F. et al., (2019)................................................. 15

2.3.1 B2B small and medium enterprises branding strategy .................................................................................. 15

2.3.2 B2B small and medium enterprises branding communication ....................................................................... 16

2.3.3 B2B small and medium enterprises branding constraints .............................................................................. 17

2.4 Difficulties faced with branding in SMEs .......................................................................................................... 19

2.4.1 Lack of creativity and innovation .................................................................................................................. 19

2.4.2 Lack of human and financial resources ......................................................................................................... 19

2.4.3 Lack of attention on branding activities ........................................................................................................ 20

2.4.4 Lack of brand communication ...................................................................................................................... 21

2.5 Building Strong Brands.................................................................................................................................... 21

2.5.1 Comparing consumer and industrial branding .............................................................................................. 22

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Table 2: Consumer and industrial market characteristics ....................................................................................... 23

3. METHOD CHAPTER ............................................................................................................... 23

3.1 Introduction .................................................................................................................................................... 23

3.2 Type of Research and Method ......................................................................................................................... 24

Table 3: Secondary sources of data ....................................................................................................................... 25

3.3 Population and sample ................................................................................................................................... 26

Figure 2: Criteria’s for Sampling Selection. ............................................................................................................ 27

3.4 Instrument to collect the data ......................................................................................................................... 27

3.4.1 Research Process ......................................................................................................................................... 28

Table 4: Interview details ...................................................................................................................................... 29

3.5 Method Data Analysis ..................................................................................................................................... 30

3.5.1 Limitations of Research Data........................................................................................................................ 30

3.5.2 Delimitation ................................................................................................................................................. 31

4. EMPIRICAL DATA .................................................................................................................. 31

4.1 Solution Engineering Pvt Ltd............................................................................................................................ 32

4.2 Diamond Paints Ltd......................................................................................................................................... 33

4.3 Cameroon Wood and Charcoal Fuels Ltd ......................................................................................................... 34

4.4 Mukete Estates Limited................................................................................................................................... 37

5. ANALYSIS .............................................................................................................................. 38

5.1 B2B Model of Branding in SMEs ...................................................................................................................... 38

5.2 B2B small and medium enterprises branding strategy ..................................................................................... 40

5.3 B2B small and medium enterprises branding communication .......................................................................... 41

5.4 B2B small and medium enterprises branding constraints ................................................................................. 42

6. CONCLUSION AND CONTRIBUTIONS ..................................................................................... 43

REFERENCES ............................................................................................................................. 45

APPENDIX ................................................................................................................................. 61

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List of Abbreviations

SMEs: Small and Medium Enterprises

B2B: Business to Business

B2C: Business to Consumer

CSR: Corporate Social Responsibility

4Ps: Product, Price, Place, Promotion

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ABSTRACT

Purpose: The purpose of this study is to assess and examine the nature and scope of branding

during exportation within SMEs in the B2B context. The findings of this study will increase

knowledge of the relative challenges that SMEs are faced with when it comes to branding during

exportation and how it influences their export performance.

Research Methodology: This research uses an exploratory approach with a qualitative method

for understanding the in-depths of the subject matter because it is mostly appropriate for small

samples, while its outcomes are not measurable and quantifiable.

Research Findings: This research points out to the main challenges faced by SMEs in the B2B

during exportation from this study which are; lack of resources, time and talents for brand

management activities. Hence, showing that previous research on branding has in SMEs has been

lacking in the Marketing literature.

Contributions: It contributes to the branding literature by comprehensively identifying and

synthesizing relevant studies on B2B SMEs during exportation which makes a call for the

advancement of theory by suggesting the need to examine more issues raised in different economic

contexts, as well as business sectors.

Research Type: Academic Research

Key Words: Branding, Business-to-business sector, Exportation, Small and medium sized

enterprises.

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Chapter 1: INTRODUCTION

1.1 Background of the study

In the world of business dominated by big enterprises, branding offers SMEs a competitive means

to differentiate their products to encourage growth (Agostini et al., 2015). According to evidence

from marketing and small business management literature, it is duly recognized that, SMEs play a

significant role in any given economy worldwide (Abimbola & Kocak, 2007; Reijonen et al., 2012)

thus regarded as the backbone that generates wealth in many industrialized and fast-expanding

economies (OECD, 2010).

According to De Chernatony( 2001), a brand can be described as an identifiable product, service,

person or a place which a buyer or a user perceives as relevant, unique or sustainable which can

add value in order match their needs relatively and equally provide satisfaction. Building a strong

brand is an important point for many companies since it produces a number of marketing

advantages and increases a companies’ competitive strength (Hoeffler & Keller, 2002). Thus,

building strong brands not only increases a company's visibility and credibility but it also

distinguishes them from competitors and enables a company to acquire more market share (Aaker,

1996; Keller, 2003).

According to Hoeffler & Keller (2002) strong brands provide advantages to both buyers and

sellers. Hoeffler & Keller (2002) states, brands can lead to the fundamental differences in a

customer’s behavior as well as produce different responses to specific marketing activities related

to the 4P's (product, price, place and promotion). Furthermore, a strong brand can get customers’

attention, earn respect from competitors and can equally get the opportunity to cooperate with big

brands. The branding process expedit the achievement of a brand’s relevance in the market

(Vorhies et al., 2011), and the returns from managing a longer term brand strategy are far higher

than the associated costs to achieve it (Shocker & Weitz, 1988). Although branding plays a

significant role in both large organizations and their small business counterparts, the approaches

used in each setting is different (Wong & Merrilees, 2005).

During exportation, SMEs are faced with a lot of challenges (Shaw & Darroch, 2004). According

to Wong & Merrilees (2005), limitations on financial and human resources, and time are the main

obstructions which force owners and managers to focus on short-term business strategy. For these

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reasons, SMEs put little efforts on branding and do not see it as a priority (Inskip, 2004) instead,

many SMEs see branding as a reductive concept which involves only the logo, the product, the

service, or the technology that they sell (Inskip, 2004; Homburg et. al. 2010). Abimbola &

Vallaster (2007) also mentioned that new firms have specific branding needs due to their lack of

resources, lack of internal structures and processes (Rode & Vallaster, 2005), and a fundamental

need to build a reputation (Petkova, A.P., Rindova, V.P. & Gupta, A.K., 2008) in order to find and

attract customers. According to Bresciani & Eppler (2010), SMEs pay more attention to financial

and production issues and less on branding issues because they believe that a good branding and

communication strategy is not necessary to start a business. Merrilees (2007) says, many small

firms see branding as a big business issue, thus, a problem for international brands, big and famous

companies with strong brand recognition.

Branding is regarded as critical and decisive within the marketing literature (De Chernatony, 2010;

Keller, 2012; Sundar & Noseworthy 2014) though with the exception of the works of (Zou et

al.,2003; Spyropoulou et al’., 2009) . Despite that over 95% of all businesses are considered to be

SMEs globally (OECD, 2014), there is a striking discrepancy in previous research relating to

branding in SMEs (Krake, 2005), as there is a growing recognition that B2B brands play a pivotal

role in the contemporary global market (Wang & Hao, 2018). The realization that effective

branding strategies can assist SMEs to grow or strengthen their position and profits within

increasingly competitive markets (Wise & Zednickova, 2009; Worm and Srivastava, 2014) has led

to a surge of systematic investment by suppliers into their brand-related activities.

1.2 Discussion of Research Question and Objective

According to Kotler & Pfoertsch (2007), there is a need for SMEs to increase their branding

abilities for international B2B firms to increase perceived value to overseas customers. Although

branding has gained attention from scholars and practitioners in recent times, evidence still

suggests that studies on branding in the context of SMEs is still minimal in the marketing literature

(Juntunen, 2014; Odoom, 2016). Thus, despite the benefits of branding, firms' performance have

been heralded in literature (Centeno et al., 2013; Asamoah, 2014). Given that these plans of action

were originally proposed for large firms, their applicability in small business settings appears to

be problematic and inconclusive owing to some discrepancies between SMEs and large

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corporations. As a result, more research investigating the concept of branding in small business

settings are persistently being made to help address pertinent gaps in literature and demarcate clear

paths for future studies (Mitchell et al., 2013).

Merrilees (2007) points out that in recent years, research done on branding is carried out on large

companies and mostly focusing on consumers. It is fair to point out that a significant number of

work has been done using framework and model based approaches in studying branding in SMEs

and with the majority of them emanating from Europe. However, relatively fewer work has been

done using category and theory based approaches (Abimbola and Kocak, 2007; Wong and

Merrilees, 2007; Merrilees et al., 2011).

Meanwhile, in regards to the models and frameworks, there appears to be a key question of how

applicable and generalizable these models are to SMEs across different countries asides the

originating countries of study says (Wong & Merrilees, 2008; Mann & Kaur, 2013). A significant

amount of work has been done on brading research study in Europe, Australia and Oceania (Mowle

and Merrilees, 2005; Wong and Merrilees, 2005, 2006, 2007; Merrilees, 2007; Berthon et al., 2008;

Wong and Merrilees, 2008; Merrilees et al., 2011), there is scarce evidence on the use of theories

in branding research for B2B SMEs appears to be almost non-existent in studies from Africa,

Asia/Middle East (Cant et al., 2013; Odoom, 2016). Perhaps the apparent lack of general theories

on branding in SMEs could explain this. As a result, more research from such contexts will help

in advancing and reinforcing the development of common theories applicable to the study of

branding in B2B SMEs involved in exportation. However, it is also an opportunity to reinforce

and throw more light in the problematic area comparing effects of branding on export performance

in multiple economic, cultural and political contexts (Agostini et al., 2015).

In this light, SMEs need to expertly utilize their aforementioned branding abilities internationally

and actively develop their capabilities in order to advance unique methods of conveying superior

value to customers therefore realizing a favorable export branding position (Keller & Lehmann,

2006; O’Cass & Ngo, 2007), which can lead to increase in export performance (Spyropoulou et

al. 2011). Muzellec (2006) noticed that brand architectures in companies exist not only on the

product or service level but equally on corporate and business unit levels. For international trade

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and exporting, there is an increase in uncertainty with SMEs since buyers abroad are more familiar

with local firms and their brands, therefore mediating this uncertainty by upholding the core

essence of a brand across borders is essential for international branding (Pappu et. al. 2006; Park

& Rabolt, 2009).

SMEs typically constitute a heterogeneous group strongly influenced by their immediate

environment and their close constituencies, and this also applies to their brand management

(Krake, 2005). Thus, the purpose of this study is to assess and examine the nature and scope of

branding in exportation within SMEs in the B2B context. Researching the challenges of branding

in SMEs is both valuable and practical thus, finding out how to solve the problems and if it is

common within SMEs is one of the research objectives of this study. Four SMEs in the B2B sector

have been selected for in-depth case study interviews, in order to get reliable data from them for

this study.

1.3 Research Question

In order to meet the research objective, this study focuses on the one research question.

RQ: What are the challenges (struggles) faced by SMEs with branding during the exportation

process?

1.4 Outline of the Study

This paper is an academic research structured such that the Abstract gives the reader a summary

and insights of the paper, then followed by an Introduction giving and overview and motivation of

the whole points of the paper, after which comes the Literature review which is used for an

empirical data used to shed light on the data in a scholarly and scientific manner, later comes the

Method chapter describing the systematic methods used in carrying out this research, thereafter

followed by the Analysis which draws strength from both the literature review and the method

chapter to give a general analysis of the outcome of the paper which is used to write a Conclusion

of the findings carrying the contributions of this study to the field of study and SMEs.

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Chapter 2. LITERATURE REVIEW

2.1 Definition and Concepts of Small and Medium Sized Enterprises

According to European Commission (2018), SMEs are defined as enterprises with fewer than 250

employees and have an annual revenue under 50 million euro, and/or its annual balance sheet total

not exceeding 43 million euro. According to Wilson & Stokes (2006), they defined SMEs as small

to medium sized enterprises that are being managed by their owners with a relatively small share

of the market in economic terms, having 10-49 employees. Medium-sized firms have similar

characteristics but usually have between 50 and 249 employees (Matlay. Hutchinson, K., Quinn,

B. & Alexander, N., 2006). Moreover, different industries’ sales turnovers are different, so it is the

best indicator of distinguishing between SMEs and large firms (Matlay. Hutchinson, K., Quinn,

B. & Alexander, N., 2006). The European Commission (2000) defines SMEs according to their

maximum sales turnover stating that turnover should be less than £24 million pounds sterling.

According to Carson et al. (1995), the discipline of SMEs is broadly based in management,

marketing and enterprises and these are unique and different to traditional marketing in large firms

(Carson & Cromie, 1990). SMEs may include family businesses, startups, spin-offs and a variety

of others, says (Sadi and Henderson, 2010). SMEs can be classified by the number of employees,

annual turnover, and a combination of employee and turnover metrics (Hutchinson et al., 2006).

Small and Medium Sized Enterprises (SMEs) play a vital role in both developing and

developed countries because of their sizable contribution towards the country's growth. SMEs

represent a growing sector of importance and it equally plays an important role in the growth of

emerging nations especially with regards to providing employment and driving economic

development (Kula & Tatoglu, 2003). Irrespective of the growing importance of SMEs in the

global economy, a major part of the industry is performing as a commodity. Any movement as

a commodity normally creates a situation where a product category may lose its identity in

the midst of clutter of brands. In this context, ‘Branding’ has a major role to play to increase the

competitive edge of SMEs for long run profitable survival.

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2.2 Branding

Branding has roots from consumer markets, the brand is taken as a market signal focused on the

end-consumer and helping them to save time by ensuring a specific degree of value, shaping their

decisions and filling their specific needs through the product (Doyle, 1990). Barich and Kotler

(1991) describe a brand as “a name, term, sign, symbol, or design, or combination of them which

is intended to identify the goods and services of one seller or group of sellers and to differentiate

them from those of competitors. Consequently, a brand is an identifier of some entity, with the

notion that the brand name enables consumers to confidently identify one product from another.

The value that a brand has is captured in the concept of brand equity. Brand equity can be

considered from the consumer perspective as a utility, loyalty, or a clear, differentiated image not

explained by product attributes and from a firm perspective as the incremental cash flow resulting

from the product with the brand name compared with that which would result without the brand

name (Ailawadi, Lehmann, & Neslin 2003). Similarly, Aaker (1996) defines brand equity as a set

of brand assets and liabilities linked to a brand, its name or symbol that add or subtract from the

value provided by a product or service to a firm and/or to that firm’s consumers. Aaker (1991) also

suggests four dimensions of brand equity such as: brand awareness, perceived quality, brand

associations, and brand loyalty.

2.2.1 Branding in International Market

It is more challenging when branding is dealt with in light of foreign markets and exporting goods.

Johanson & Mattsson (1988) highlighted the importance of exportation for SMEs which concern

three dimensions: extension, penetration, integration.

To keep their products from turning out to be commodities, companies look to separate themselves

with services, with the organization brand, and with brands at the product level. Authoritative

buyers have for some time been known to consider intangible and other progressively elusive parts

of the offer, notwithstanding cost and product quality (Douglas, Craig, & Nijssen, 2001). Many

industrial buying choices will in general be hurl ups. The conclusive factor at that point can turn

upon what a brand stands to a buyer. Some industrial buyers might be more concerned about

branding over others (Sanchez & Mahoney, 1996).

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Brands perceived positively can result generating confidence in the customer mind leading to

consequences of favorable brand loyalty and preference. In addition, brand equity is one notable

factor which comprises brand loyalty, brand quality, brand preference and high brand awareness.

In other words brand equity is seen as brand comprehensive performance. Moreover, the

international brand management has the same techniques like practicing the branding activities in

the domestic market, except different macro-marketing atmosphere. The foreign market

differences consist of technological elements, sociocultural and importantly economic (Preble,

Rau, & Reichel, 1988; Subramanian, Fernandes, & Harper, 1993). Even though how similar the

foreign market is with the domestic market some national and core differences remain.

2.2.2 The Importance of branding in industrial markets

Branding in an industrial market must be seen to pass on advantages to different key-players of

organizations to monetarily put resources into it. Even if it's more challenging when a company

intends to penetrate in foreign industrial market. With respect to the organization putting resources

into branding various advantages have been found. Cretu & Brodie (2007) discovered branding

positively affected the nature of the product or service. It was likewise seen as giving identity to

product, also a steady brand image perceived as uniqueness (Michell, Ruler, & Reast, 2001).

Further, Strong brands will be asked and demanded even in foreign markets, it might be put on

the offer rundown and let companies ask for an exceptional value (Michell et al., 2001; Low and

Blois, 2002; Ohnemus, 2009).

The increase of demand in branded products has given a serious threat to competitive products

(Low and Blois, 2002; Ohnemus, 2009). In any case, the supposition that competitive products

will be dismissed proposes that there is just a single solid brand in the market or the cost of buying

different brands is altogether higher which may not really be valid. It is proposed that products or

services are branded, interactive communication will be acknowledged and more briskly (Michell

et al., 2001; Low and Blois, 2002; Ohnemus, 2009).

When a strong brand has been created it very well may be based upon and grown (Low & Blois,

2002). Hutton (1997) found that positive assessments for one branded product characteristics

transferred to another product characteristics of a similar brand. A strong brand may build the

organization's capacity in the distribution system and open up doors for licensing (Low and Blois,

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2002; Ohnemus, 2009). It might likewise raise the obstructions to entry for other organizations

(Michell et al., 2001). At the point when an organization has a strong brand the organization it

might be worth more whenever sold (Low & Blois, 2002). The advertisers of an industrial brand

may see their clients to have an expanded degree of satisfaction (Low & Blois, 2002) and to be

increasingly faithful (McQuiston, 2004). At long last, strong B2B (Business-to-Business) brands

are bound to get referrals (Hutton, 1997; Bendixen, Bukasa, & Abratt, 2004). Also,Brands are

helpful for decreasing the degree of saw hazard and vulnerability in purchasing circumstances

(Mudambi, 2002; Bengtsson and Servais, 2005; Ohnemus, 2009).

Table 1: Condenses the advantages of branding for B2B providers and purchasers.

Benefits to buyers Benefits to supplier

Loyalty distribution

power

barrier to

entry

risk/uncertainty reduction brand extensions goodwill

higher confidence premium price loyal

customers

identification with a strong

brand

higher demand customer

satisfaction

greater comfort differentiation

referrals

increased satisfaction quality

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2.2.3 The Role of Branding in SMEs

In the SMEs literature branding has been recognized and emerged as an important factor (Boyle,

2003; Inskip, 2004; Krake, 2005; Wong & Merrilees, 2005). However, the big firms and

multinationals firms have been studied in the context of branding and international branding. The

global economy is becoming more and more competitive, a large proportion of gross domestic

product, export performance and domestic job creation is provided by the SMEs. Different

competitive tools are available to SMEs, but branding should be close to top if not on the top

(Anarnkaporn, 2007). Brand helps with product credibility, symbol and name so consumers can

identify the product, also it defines product identity in time and space. Although, branding in B2B

is a considerable new direction for looking at SMEs (Inskip, 2004).

Consumers will in general assess a brand on its quality, reputation, value, credibility and service

(Zeithaml, 1988). Brand characteristics, for example, value for money and quality can help

customers to make final purchase decisions. Moreover, Brands can add various advantages to a

firm. A brand is accepted to be an organization immaterial asset that produces an incentive for

firms (Calderon, Cervera, and Molla, 1997). This incentive can be seen as extra incomes created

by products related to its brand (Doyle, 1990; Murphy, 1990). Subsequently, a brand is getting

progressively significant because of its core element status in firm strategy and furthermore

because of its financial incentive or contribution as an immaterial asset (Aaker, 1991; Farquhar,

1989; Feldwick, 1996; Keller, 1993).

SMEs should consider developing their brands for smaller shares in markets with higher levels of

loyalty (McAlester, 2006; Kohli et al., 2005). Khan (1988) stated that specialty brands result or

form when a small segment of consumer differs from general consumer product class. SMEs with

clearly defined strategy tend to keep branding in focus (Berthon et al., 2008), many find themselves

in confusion whether it's a right approach to spend time, energy and substantial amount to adopt

strategic marketing strategy and going through the branding exercise (Noble et al., 2002). Though

tempted to reorganize their marketing practices and adopt branding strategies, SMEs often lacks a

capacity to do conventional marketing and branding practices due to limitation of resources and

other barriers such as: lack of specialist expertise, time and knowledge of market, limited impact

in market and most importantly financial resources (Gilmore et al., 2001).

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2.3 B2B Model of Branding in SMEs

Many different studies have employed branding theory from the consumer markets in the B2B

fields (Viardot, 2017; Biedenbach and Marell, 2010) but generally, the existing branding literature

shows limited focus on the B2B related sector. To comment further on this structure for brand

management maturity, some SMEs engage in minimalist branding activities which are linked to

short-term phases of centralized management whereas, others adopt a more embryonically and

systematized approach which drives more progressive market activities. More “integrated”

management approaches which are by contrast characterized by brand-centric management

activities continually and systematically reflect on the interrelationships between branding,

marketing and economic performances (Baumgarth, 2010). Generally, emerging B2B SME

research reveals that brand oriented firms have a higher impact on B2B marketing achievements

(Urde et al., 2013; Anees-ur-Rehman et al., 2018).

The existing literature on B2B SMEs branding activities has explored a number of dimensions that

can be theorized. Spence & Essoussi (2010) discussed different dimensions of branding such as:

brand strategy, brand identity, brand equity and organizational structure to form brand

management meanwhile, Leek and Christodoulides (2011) identified areas that merit further

exploration, such as B2B brand architecture, B2B brand communication and industrial brand

equity.

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Figure 1: B2B Model of Branding in SMEs SMEs adapted from Lin, F. et al., (2019).

2.3.1 B2B small and medium enterprises branding strategy

Leek and Christodoulides, 2011 says that, there are three types of branding strategies relevant to

B2B SMEs which are: corporate branding, product branding and ingredient branding says.

According to De Chernatony (2001), corporate branding integrates brand building with a

company's strategic vision (Balmer, 2001) while enabling the vision and culture of the organisation

to be encapsulated within its uniqueness. Corporate branding strategy has been adopted frequently

in the service industries and in retail SMEs (De Chernatony et al., 2006). In contrast to corporate

branding, a product brand aims to create a unique and distinctive brand identity embedded in

particular products meaning that it has less association with the parent organisation (Chang et al.,

2015). Product branding strategy is said to be more popularly applied in the consumer market, but

is less fashionable in the B2B market, due to the nature of industry markets with brief product life

cycles (Baumgarth, 2010). However, a mixed branding strategy spanning corporate and product

brands can help industrial firms to plan how they expand their brand portfolios while increasing

sales.

On the other hand, ingredient branding refers to an essential ingredient or component of a product

that has its own brand identity (Kotler and Pfoertsch, 2006), and is often adopted by large

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organisations such as: Intel microchips or chipsets which contributes much of the brand value to

numerous brands of computer. Thus, such branding strategies are often successful through a “pull

strategy” where there is a high level of pressure on the manufacturer for the sourcing of particular

high brand components in order to meet the end markets expectations (Helm and Özergin, 2015;

Swaminathan et al., 2012). However, the application of ingredient branding in SMEs, is less

established.

Among these three types of branding strategy, a general assumption is that ingredient branding is

most applicable where manufacturers find it in their interests to make themselves hostages. Thus

becoming complicit in promoting brand visibility at the ingredient level which gives their suppliers

leverage over them (Kotler and Pfoertsch, 2006). There is actually an assumption that product-

branding strategies are often costly for SMEs in the manufacturing industry, and in general is more

appealing for consumer markets where experience of the product is paramount because it provides

the lens through which consumers perceive firms. Corporate branding by contrast is said to be

more popular with B2B SMEs (Törmälä and Gyrd-Jones, 2017; Baumgarth, 2010)

2.3.2 B2B small and medium enterprises branding communication

Keller (1993) states that, while brand identities are being integrated into firms marketing

programmes such as marketing-mix, communication can further enhance a firm's brand value,

especially when it is designed to reinforce a brand's identity. Likewise in the B2B market, a key

goal of brand communication is similarly to develop a successful buyer-seller relationship

(Marquardt, 2013). The prospects for creating “brand-scapes'' are quite limited but yet arguably no

less important. The focus of SMEs in B2B branding is to be able to serve the customer’s needs

practically and pragmatically thus, aiming to provide helpful information in terms of product

quality, functions and price while ensuring that the distribution channels employed are explicitly

presented through communication tools.

B2B firms apply different brand communication strategies which includes; direct marketing, trade

exhibitions, sales promotion and personal selling (Kotler and Pfoertsch, 2006; Aneesur-Rehman

et al., 2018) thus, the application of brand communication strategies varies in B2B and consumer

markets. The application of personal selling dominated the B2B brand communication strategy in

early research (Hutt and Speh, 2001), meanwhile nowadays, most firms consider various

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combinations of hybridized and individualized brand communication strategies employed by

SMEs in B2B markets.

An integration of brand communication strategies helps to create brand awareness, build a strong

brand image and drive competitiveness in the market (Madhavaram et al., 2005). Large

organizations make use of promotional channels such as: television, print advertising, and large-

scale sales promotion in building their brands image and conveying communication messages but

the effectiveness of these techniques for SMEs still remains unclear (Wong and Merrilees, 2005).

Due to the lack of resources with the heterogeneous nature of SMEs, it demands an application of

mixed and hybridized branding strategy (Krake, 2005). One common practice in SMEs involves

imitating and mimicking the branding communication practices of LOs (Spence and Essoussi,

2010). Some research on SME brand communication has found that, a firm’s interaction with

customers is key and as such, it leads to the spread of Word of Mouth (WOM) communication

thus, generating and disseminating brand awareness (Anees-ur-Rehman et al., 2018; Berthon et

al., 2008).

The key purpose of brand communication for B2B SMEs is to provide offers that meet buyer’s

demands, with a central focus on the advantages of products and services (Kotler and Pfoertsch,

2006).

2.3.3 B2B small and medium enterprises branding constraints

Although branding is of great importance and is very beneficial to stakeholders in the B2B sector

for quality evaluation and profitability (Keller and Kotler, 2012), the application of branding in

the B2B SME sector still remains under-exploited (Lynch and de Chernatony, 2004; Ohnemus,

2009). Prior research has listed a number of constraints that B2B SMEs have encountered

specifically during exportation such as: perceiving branding to be less important for B2B SMEs

(Wong and Merrilees, 2005) the complexity of the B2B market particularly in international spheres

(Keller and Kotler, 2012) and the limited resources and capabilities to support branding

activities(Leek and Christodoulides, 2011). Three types of constraints provide possible

explanations for this state of affairs: perceptual constraints, market constraints and resource

constraints (Leek and Christodoulides, 2011; Mitchell et al., 2015; Centeno et al., 2013).

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The perceptual constraint brings forth the importance of branding to SMEs in the B2B market

abroad. Because B2B SMEs turn to see branding as less important or insignificant (Hirvonen &

Laukkanen, 2014), a profit-oriented business mind that often predominates within B2B

management will therefore be less likely be influenced by extravagant and costly adverts (Keller

and Kotler, 2012).

The B2B market constraints shows that branding with its industrial nature to an extent consists of

product variations that impede the development of tailored brand positions (Bendixen et al., 2004).

Both the perceptual and market constraints of B2B SMEs in foreign markets draws a high level of

risk in branding. Some scholars advocate that a firm should acquire sufficient knowledge and

information for a positive branding application in B2B SMEs. Thus, Lynch and de Chernatony

(2004) claimed that the B2B buying decisions should be protracted if necessary, to address “the

emotional” in addition to the “rational” processes associated with buyer deals (Andersson et al.,

2018). Accordingly, we can conclude that, in such circumstances, a higher risk premium can be

charged for the brand (Zablah et al., 2010).

A resource constraint is a key constraint that directly affects the use of branding in B2B SMEs.

Branding requires long-lasting involvement but however, the lack of short-term financial reward

reduces SMEs motivation towards branding in B2B markets (Leek and Christodoulides, 2011).

Some traditional issues faced by B2B SMEs that affect branding in international markets are:

limited financial resource support, weaknesses in innovation and technological development,

entrepreneurial incapabilities, low productivity and regulatory burdens (Spence and Essoussi,

2010).

Furthermore, SME owners often determine what to spend on branding activities taking into

account the resources available(Spence and Essoussi, 2010), they make decisions on whether to

spend heavily on developing a brand taking into consideration other related factors such as:

product life cycles and levels of innovation diffusion (Krake, 2005; Abimbola and Kocak, 2007;

Mitchell et al., 2012). Deficiency in the influence of marketing professionals remains a major issue

for SMEs in brand building, as it is frequently manifested in the heavy concentration of functions

among a limited number of people including the company owners (Odoom et al., 2017; Khan and

Ede, 2009). Branding activities therefore often suffer where there is a perceived urgency or need

19

for resources particularly when management is highly concentrated on specialization such as R&D

excluding or marginalizing marketing activities because of scarcity of resources.

2.4 Difficulties faced with branding in SMEs

2.4.1 Lack of creativity and innovation

In the last decade consumers have become more discreaning and given more offers. Increased

competition has reduced the product life cycle which resulted in more innovative and better

services and products. Innovation and creativity among the few factors of brand success. Creativity

reflects the new ideas, having different approaches to similar issues and generating new ideas.

Creativity should be applied to the entire strategy process from the formulation of brand to delivery

of products and services Wong and Merrilees (2005). Most of the SMEs failed to overcome the

barriers within the firm and with the outside market. However, creativity and innovation is not a

result of brainstorming sessions but a unique routine that evolves within the company. Leadership

must motivate and new idea creation must go through the organization.

In addition, B2B branding surely helps to gather more relevant information such as: repeated

purchase pattern, service trials and additional product, but this branding has significant high cost

which most SMEs try to avoid as an additional financial burden on stakeholders. Boatwright

(2009) emphasizes that SMEs significantly need to put more resources into R&D as their goal is

to compete in overseas markets and customers need to have more strong reasons to choose a

foreign supplier over a local supplier. The challenge to compete in overseas markets is

comparatively higher than the local market which demands proper market knowledge and unified

branding strategy to achieve it.

2.4.2 Lack of human and financial resources

The inadequate resources is the main obstruction for SMEs to process and perform branding

activities Wong and Merrilees (2005). Furthermore, new ventures and SMEs are in a great need to

develop reputation due to lack of internal structure and lack of resources to attract new customers.

These barriers forced entrepreneurs or business owners to adopt short-term plans and normally

perform on a daily basis to earn short-term profit. However, the short-term business plan and

20

marketing activities hinder SMEs to develop long term business success and branding strategy

(Wong & Merrilees, 2005). Moreover, SMEs also lack behind in brand management due to lack

of professionals and skilled individuals (Boatwright, Cagan, Kapur, and Saltiel, 2009). In addition,

owners and managers of SMEs lack brand management skills and are unable to examine the

practical method to link customers demand to their brands and products and foresee which

customer demands fit well with the firm's capabilities (Boatwright, 2009).

When SMEs invest in branding it is evident that financial impact follows, even SMEs are not keen

to report the impact in annual reports. Even though, SMEs eradicate all other factors including

R&D which has evidently given SMEs a competitive edge and also consistent branding

respectively due to extra financial cost (Buzell & Gale, 1987). Moreover, creating the same unified

brand value for all stakeholders and to the customers it is vital that brand perception is created

must be the same for all employees and this can be achieved through training Burden & Proctor

(2000). Also the training has two important aspects, all the employees who take their training

positively most likely to perceive the brand positively. Secondly, studies evident that training helps

to achieve high employee morale and satisfaction which helps improve employee skills Chun &

Davies (2006). In addition, the management of the brand and the treatment of the customer has

very much dependent on employee’s knowledge, skills and training and can influence the customer

perception of the brand Chun & Davies, (2006).

2.4.3 Lack of attention on branding activities

In many cases, Business-to-consumer (B2C) dominated the research focus, on the other hand

industrial branding has been taken as ‘‘intellectual step-child” and ignored. Lack of unification is

one problem where all the stakeholders do not share the same brand value yet failed to convey to

the customer. Balmer (2001) and Gronroos (1997) have contradicted the view that branding always

payback in terms of incentive can also be a source of destruction of shareholders wealth. In SMEs,

business owners and entrepreneurs are the people with clearly defined vision, also they play vital

roles in brand building and brand creation. The personality of the entrepreneur and brand should

be well connected as the entrepreneur is the personification of the brand (Krake, 2005). Centeno

et al. (2013) stated the same that brands have the most similarities with the owner's personality.

21

Furthermore, branding has become a question of survival as many companies face the common

challenge of converging manufacturing cost and standard cost. Moreover, there has been practice

in the industrial sector of preferring personal selling over brand management. For instance, studies

showed that 62% identified customer acquisition as their primary goal and just 19% cited brand

awareness (Joshi, 2012). Industrial marketers pushed forward to build brands but they remain

unclear why and how to do so (Muylle, Dawar, & Rangarajan, 2012).

2.4.4 Lack of brand communication

Past researches have detailed that brand communication improves brand equity by increasing the

probability that a brand is incorporated into the customer’s consideration set, in this way shortening

the process of brand decision making and creating that decision into a routine (Yoo et al., 2000).

It is also evident that poor brand communication can fail to influence positively customers'

perception of brand Bruhn et al. (2012). Further, brand awareness is significantly important in

brand communication, as brand awareness reflects on customer ability to recognize brand through

product category (Aaker, 1991; Pappu et al., 2005).

Companies and particularly SMEs intend to influence individuals' perception about their product

through eneganing loyal customers and spreading information and taking feedback and learning

from audience response is part of brand communication (Brodie et al., 2013). Moreover,

communication generates the positive impact on the customer as recipient, therefore, the brand

communication is positively correlated with brand equity and the message leads to satisfactory

customer response to product in demand, compared to non-branded products (Yoo et al., 2000).

2.5 Building Strong Brands

A strong brand can pass various benefits to both buyer and the supplier, it is astonishing that

numerous industrial companies are not using it. There are various reasons why there is an absence

of branding within B2B companies, such as: lack of capital, manpower and organizations

capability. There is an absence of scholastic research in B2B branding, while there has been a

tremendous investigation into branding in a B2C setting (Lynch and de Chernatony, 2004;

Ohnemus, 2009).

22

B2B branding doesn't appear to be a significant issue as indicated in various studies and seen as

gimmicky (McDowell Mudambi, Doyle, and Wong, 1997) and it has been recommended that the

act of branding industrial products is illogical because of companies having a huge number of

products (Bendixen et al., 2004).

It is not certain whether B2B branding will in return be a cash reward for companies. Building

brand value includes a long haul inflow of investment. In the current economic atmosphere making

a long haul decision to invest on the basis of short term business profit can't forfeit that numerous

B2B marketers are ready to make. This would conceivably prompt money related issues for the

organization (Balmer, 2001 and Gronroos, 1997).

Even the essential queries in regards to the view of B2B branding, the level of branding that ought

to be utilized in a B2B setting and whether the investment will create financial reward implies that

the a significant part of the examination in B2B branding has practically no hypothetical

underpinnings (Ohnemus, 2009). Therefore companies will think that it's hard to execute any data

they do get on B2B branding. Scholarly research needs to create information about branding in a

B2B setting in a durable, rational way so as to dispense with these issues and empower B2B

advertisers to settle on informed decisions about their brand methodology.

2.5.1 Comparing consumer and industrial branding

The distinctions and similarities among customer and industrial markets have for quite some time

been discussed by Fern & Brown (1984), particularly given the dynamic idea of the business

condition. Table 2 condenses a portion of the significant examinations. Furthermore, the

advantages of branding (Aaker, 1991) to clients in B2B markets have not been investigated.

Practical advantages might be generally significant, yet enthusiastic and self-expressive

advantages can likewise matter. Purchasers are happy to search out a brand for a normal useful

advantage, for example, a greater physical product or related services. Constraining thought to

well-known products additionally has the utilitarian advantage of reducing search and exchange

costs.

Prominent brands have the advantage of diminishing apparent hazard and vulnerability, the two of

which have identifiable expenses to the individual buyer and to the firm. Branding can profit the

23

business client by expanding buying certainty. Purchasing a notable brand can fortify prior

experience and relationships. Branding can expand consumer loyalty. Purchasing a notable brand

may include extra solace and extra value factor. Frequent and professional buyers invest

wholeheartedly in their work, and like making the correct decisions.

Table 2: Consumer and industrial market characteristics

Consumer markets Industrial markets

Emphasis on the tangible product

and intangibles in the purchase

decision

Emphasis on tangible product and

augmented services in the purchase

decision

Standardized products Customized products and services

Impersonal relationships between

buyer and selling company

Personal relationships between

buyer and salesperson

Relatively unsophisticated product Highly complex products

Buyers growing in sophistication Sophisticated buyers

Reliance on mass market advertising Reliance on personal selling

3. METHOD CHAPTER

3.1 Introduction

In this part, the author outlines the research method, the research type, the population and sample,

the instruments used to collect data, the data analysis and the limitations of the research data. The

24

methodological part of a research helps the researcher to continue the entire work by following the

right path. In order to identify the opinions of managers from different Small and Medium Sized

Enterprises in the B2B sector in different countries, regarding the challenges they face with

branding when exporting.

3.2 Type of Research and Method

This research uses an exploratory approach with a qualitative method as the most appropriate to

explore branding in depth (Spence & Essoussi, 2010). A research methodology refers to a

systematic and theoretical analysis of the applied methods of the studied field. Research methods

according to some studies are conceptual (Abimbola, 2001; Krake, 2005; Merrilees, 2007; Brodie

& de Chernatony, 2009; Horan et al., 2011; Mitchell et al., 2012; Centeno et al., 2013), as well as

empirical (Zhang & Morrison, 2007; Opoku et al., 2007; Ojasalo et al., 2008; Khan & Ede, 2009;

Eggers et al., 2013; Tock & Baharun, 2013; Sandbacka et al., 2013; Asamoah, 2014). Drawing

from the review of this study, a qualitative approach has been used.

Qualitative research is a field of inquiry that cuts across disciplines and subject matter. It aims to

create an in-depth understanding of human behavior and the factors that govern such behavior

(Glenn, 2010). Qualitative research refers to an unstructured, exploratory research methodology

based on small samples used (Malhotra, 1999) to investigate the why and how of the decision

making, not just what, where, when (Glenn, 2010), equally used to gain an insight into people's

attitudes, behaviors, value systems, concerns, motivations, aspirations, culture or lifestyles (Eraut,

2007).

In order to satisfy the objectives of the research, a qualitative research was conducted because it is

mostly appropriate for small samples, while its outcomes are not measurable and quantifiable.

According to Collis & Hussey (2003), it offers a complete description and analysis of the research

subject without limiting the scope of the research and the nature of participant’s responses.

Whereas, because it is more appropriate for small samples, it is also risky for the results of

qualitative research to be perceived as reflecting the opinions of a wider population (Bell, 2005).

The authors decided to use a qualitative research methodology for this study as this is a multi-case

25

study on four SMEs in the B2B sector from two different countries and from diverse industries,

the objective of this method of study is to have an in-depth understanding of SMEs and how these

enterprises manage their branding activities, that is, looking at what value is given to branding and

what struggles exist within these SMEs while carrying out branding activities during exportation.

Thus, investigating how challenges affect exportation performance.

The primary source of data was obtained from the interview with four executives from four

exporting companies which are; Solution engineering, Diamond Paints, Mukete Estates Ltd and

Cameroon Wood and Charcoal Fuel Ltd.

Data was collected secondary sources meaning, it is not numerical (Bell, 2005; Sarantakos, 2013).

Secondary data was obtained from different sources such as: scientific articles, books and top

economic journals where the researchers found different explanations for the problematic area that

occurs within organizations from what other researchers have previously written, company

websites and annual company reports. By having access to Web of Science and Scopus databases

with the help of Halmstad University library, the researchers found relevant articles supporting the

understanding of this topic by using keywords such SMEs, Branding, Exportation and B2B

branding to collect data used for better insights of the problematic area. This was based on

available theories and practical experiences gained from the four multiple case studies as

mentioned above.

Table 3: Secondary sources of data

Type of data sources No of Data Source Databases Journals

Scientific articles 35 Halmstad University database Journal of marketing

Journal of Business & Industrial

Marketing

Journal of small business management

Journal of Brand Management

Journal of Product and Brand

Management

Journal of the Academy of Marketing

Science

26

Books 4 Web of Science European Journal of Marketing

Journal of International Marketing

Journal of Services Marketing

Company websites 3 Scupus Journal of Entrepreneurship and

Innovation Management

International Journal of Research in

Marketing

Past company reports 2 Security Exchange Commission of

Pakistan

Journal of business research

Journal of small business management

3.3 Population and sample

A non-probabilistic sampling technique was used to develop the sample of this research under

discussion. The sample was drawn from Cameroonian and Pakistan SMEs in the B2B sector from

companies offering both product and service and are into exportation, hence the sample was

selected by convenience and availability. Here, the interviewees were selected on the basis of

their knowledge, relationships and expertise regarding the research subjects. The selected sample

members had a special relationship and connection to the phenomenon under investigation,

sufficient and relevant work experience in brand management and active involvement with

branding activities.

In order for the researchers to find the most accurate and useful data from the companies, certain

criteria’s were taken into consideration in regards to the selected companies which are; the

company must be an SME, the company should be in the B2B sector, the company must be into

exportation, maximum number of employees must be 250 and annual turnover must not exceed

250 million (local currency).

27

Figure 2: Criteria’s for Sampling Selection.

In combining all these standards, Diamonds Paints Ltd, Solutions Engineering Pvt Ltd, Cameroon

Wood and Charcoal Fuel Ltd and Mukete Estates Ltd were selected as samples for this research.

The majority of interviewees selected as a sample population for this research were mostly

executives involved in brand management, marketing and international sales in the companies with

experiences between 3 to 15 years of experience in the industry For instance: the representative

from Diamond Paints is associated with the company for the last 9 years. Thus, their wealth of

knowledge on a broad range of industries offered great insights into branding performance in

industrial markets.

3.4 Instrument to collect the data

For the purposes of this research, in-depth interviews using guidelines were conducted with

the aim of identifying the participant’s emotions, feelings, and opinions concerning the research

subject. The main advantage of making use of interviews is that it involves personal and direct

contact between interviewers and interviewees. In addition, it can well eliminate the possibility of

non-response rates but despite this, interviewers need to have developed the necessary skills

needed to successfully carry out an interview (Fisher, 2005, Wilson, 2003). Unstructured

interviews enable flexibility when it comes to the flow of the interview which gives room for the

The company

must be an SME

The company

should be in B2B

The company

must be into exportation

Sampling

Maximum

number of

employees 250

Sales turnover

must not exceed

250 Million

(Local currency)

28

authors to generate a conclusion with an extended knowledge regarding research subjects.

However, there is the risk that the interview can sometimes deviate from the pre-specified research

aim and objectives (Gill & Johnson, 2002).

To understand the different struggles that SMEs go through when faced with branding activities

during exportation, the authors made use of a semi-structured questionnaire as a data collection

tool which was used as an interview guide. Data was drawn from a number of sources which

includes interviews using a constructive questionnaire as a guide for the interview made of twenty

questions prepared for guidance towards the satisfaction for the research objective but additional

questions resulted from the responses of the interviewee's during the interviews. Within this

context Yin (1984), an inductive multiple-case study was conducted on executives of four

international companies from the B2B sector involved in different kinds of products and services.

The questionnaire was sectioned into five categories with 20 questions. All the questions are

directed towards branding and management in SMEs and it is designed in accordance with the

purpose of the study. The structure of the questions follows a logical order, forming a thread from

beginning to end.

Some sample questions that were included in the semi-structured questionnaire are as follows:

● How long has your firm been exporting to international markets?

● Do you carry out branding activities? Why do you carry out branding activities?

● Do you have an independent department for brand management? How is branding done

in international markets?

● In your opinion, what are the biggest problems faced by your company when branding in

foreign?

● What measures are put in place to solve these problems?

The full questionnaire is shown in the Appendix.

3.4.1 Research Process

Meetings were held between February and March of 2020 within the researchers and emails and

calls were sent out to the executives of the four different companies in order to gain acceptance of

their participation in this research. Specifically, the researcher finally had a two way

29

communication with the executives asking them to participate in the research after explaining the

nature and the scope of the study. In this regard, the respondents were willing to participate in the

research and the interviews were conducted between April and May 2020.

All four interviews were done via Skype calls, the questionnaire is in English. Each interview

lasted between 40 minutes and 1 hour maximum. Throughout the interview, the researchers took

down notes and made recordings which were later used to analyze the gathered data. This consists

of the main content that was later transcribed from the interviews and serves as a database for the

analysis. While analyzing collected data from the interviews, the variable of related and widely

accepted theories are connected with the data from the interviews. According to Moore & McCabe

(2005), data collected in this type of research is categorized in themes and semi-themes for easy

comparability. Winchester, (1999); Sarantakos, (2013) states, interviews are often used as a

complementary research method in social sciences, because they give the opportunity for a more

in-depth, open discussion, more informal and free interaction between the interviewer and the

interviewee.

The interviews were mainly in a discussion format. One thing to note is that, rather than focusing

on a particular industry, the researchers wanted to understand the struggles of branding in the B2B

sector as a whole; therefore, companies from diverse industries were used for data collection for

this study.

In order to collect the data from the interviews, the details were as follows:

Table 4: Interview details

No. of Participants Executives position Name of Enterprise Interview Time

1. Marketing

Director

Cameroon

Wood and

Charcoal Fuel

Ltd

1hour

2. Marketing

Manager

Mukete

Estates Ltd

56minutes

30

3. Brand

Manager

Diamond

Paints Ltd

50 Minutes

4. Assistant

Marketing

Manager

Solution

Engineering

Pvt Ltd

40 Minutes

3.5 Method Data Analysis

Zikmund (2003) states that data analysis may involve determining consistency in patterns and

summarizing the appropriate details revealed in the investigation. Moore & McCabe (2005) says,

with this type of research data is gathered and then categorized in themes and sub themes in order

to compare the data. In order to analyze the data, the researchers were able to structure the

qualitative data collected in a way that is satisfactory to attain the research objectives.

However, human errors are highly likely to occur in this kind of analysis since there is risk of

misinterpretation of the data gathered thereby generating false and unreliable conclusions

(Krippendorff & Bock, 2008). Data analysis was driven by the need to answer the research

question (Carvalho, 2007), which investigates the problems B2B SMEs are faced with when

managing their brands during exportation and the efforts they put in in order to solve these

problems.

3.5.1 Limitations of Research Data

The authors prudently acknowledge that this research is not without limitations. First, the review

presents a general overview of evidence existing in the literature without explicitly on specific

studies, journals or online databases. The authors acknowledge that the papers used for the review

may not represent the universal coverage of publications on the subject matter discussed. Therefore

it is possible that the researchers may have omitted some other relevant studies. As a result, the

concerns and questions raised in this study are not deemed exhaustive but rather it serves as

possible pointers for a new research idea and investigations. In addition, the sample size was

relatively small and limited to four participants. A bigger sample would probably have enhanced

31

the reality of this study. More so, a qualitative research does not allow the measurement of the

examined problem.

3.5.2 Delimitation

The delimitation of this paper is that the literature is limited to branding (promotion) in SMEs in

B2B sector without looking at the other factors of the 4Ps.

4. EMPIRICAL DATA

This empirical study is based on a multiple case study, which is powerful for theory development

(Eisenhardt, 1991; Perry, 1998). This method of study allows the investigation to retain the holistic

and meaningful characteristics of real life events such as; organizational and managerial processes,

says Yin (1984). According to Gummesson, (2000), one important advantage of a multiple case

study is that it has the opportunity to give a holistic view of the research study. This chapter

describes the empirical data collected from the multiple case studies.

A brief introduction of the respondent companies is presented followed by the marketing and

branding activities of the companies based on the data collected from the interviews. Analyzing

from all aspects of this study, different industries were selected. For instance: Solution engineering

involved in high end technical services and diamond paints mainly involved in basic home

furnishing. However, major sales of both companies rely on the local market due to inadequate

marketing strategy in the international market and both companies are located in Pakistan. In

addition, Cameroonian based companies Mukete Estates Ltd a manufacturer and exporter of

agricultural produce and Cameroon Wood and Charcoal Fuel Ltd, a manufacturer and exporter of

all kinds of wood and charcoal. All companies are SMEs by the definition of State banks of

Pakistan and Cameroon which limits the number of employees to 250 and annual turnover to 250

million (Local Currency).

32

4.1 Solution Engineering Pvt Ltd.

Company Overview

In Pakistan the engineering sector export share is only 4% with an average annual growth of 15%

which is USD 1.3 billion. Solution engineering is an automation and control company, with the

total number of employees 145 divided into three divisions with annual sales turnover of PKR 210

million. The company is involved in development of customized electrical and mechanical

equipment for its clients in the sector of Oil & Gas, Fertilizer Sector, Cement and Power, Refineries

and Food, beverage and water treatment sector. Also they provide skilled manpower and training

courses under third party agreement for various products such as: Panel wiring facility with SAT

and FAT features, Training on control systems like PLC and DCS of different brands and Ogra

third party inspection. Solution Engineering secures 32% of their annual sales in foreign markets.

Also it mostly operates or secures sales in developing countries and more specifically in African

continent in countries like Ghana and Nigeria.

Marketing and Branding Activities

Further during the interview, the company's representative revealed that the Company faces

financial hazards to invest in marketing activities in foreign markets which also affect the efforts

to do branding. However, Solution engineering does not have any specific designation such as:

Brand Manager but they do have a team of 8 people under the Marketing Manager to secure

international sales also to plan and carry-out marketing activities overseas which also include

branding. Moreover they recently have opened a subsidiary in UAE to capture sales and raise the

brand awareness in the gulf region. Further, given the financial and human resources, Solutions

engineering representative seems satisfied with the company's effort to promote their products

overseas, however they mainly engage their client through tender openings and exhibition and

digital branding through Emails, websites, Facebook and LinkedIn. Companies depict their

product quality and most importantly after sales services as their brand strength in foreign markets.

In response to SMEs branding challenges overseas, financial limitation is the company's top

challenge followed by cultural and market knowledge overseas. To overcome these problems, the

responded believes in conducting overseas market research (understand your audience, identify

potential partners, influencers in your field), follow the industry trend and keep an eye on

33

competitors. They also strongly believe that if they are given more financial means they can add

more value to the brand through R&D and can increase human resources which in result leads to

productive brand management both in local and international markets.

Also, the company's representative highlighted the financial problem that they are unable to secure

loans from the banking sector due to high interest rate as the banking sector in Pakistan is more

inclined to large scale manufacturers and government itself. However, the company does not have

any specific budget allocated for branding activities but currently 6% of the overseas sales

allocated for overseas marketing activities. Due to being a centralized organization, it is not evident

that, company has a consistent marketing budget and its owner’s prerogative to increase or

decrease the budget. In addition, the company representative reveals that decision making

authorities in the company are not keen to invest solely or make separate budgets in the light of

overseas branding. They believe that traditional and digital marketing is enough to compete in

overseas markets. However, the company representative believes that specific brand management

departments can make a difference in company sales in foreign markets.

4.2 Diamond Paints Ltd

Company Overview

Diamond paints is one of the top selling brands in the paint industry in Pakistan, also one of the

few paint manufacturing companies to have a presence in foreign markets most frequently in

developing countries like Afghanistan, Nepal, Bangladesh and Iran. Their product range includes:

Decorative, Automotive, industrial finishes, road safety, construction chemicals and adhesives.

Diamond Paints has an average number of employees to 200 but currently they have 224

employees and (2019) annual return was PKR 230 million approx. 26% of the total turnover was

generated in export or in overseas sales or export.

Marketing and Branding Activities

Company preferred to generate sales from developing countries, when the reason asked why only

in developing countries, the company representative mentioned “it's less competitive to make sales

in developing or especially in neighboring countries'. Diamond paints generate the majority of its

34

sales from B2C (Business to consumer) in the home country, however in the overseas market they

mainly focus on providing paint solutions in Automotive, industrial finishes, road safety,

construction chemicals and make use of digital branding.

As part of the product innovation, Diamonds paints continuously develop products according to

their client requirement for instance: they have provided the paint solution to military grade

infrastructure to normal business manufacturing units. The company representative revealed that

the lack of financial assistance is considered a major constraint to execute marketing or even

branding activities such as seminar, product sampling and exhibition. Also, the company

representative mentioned that the company does have a Brand Manager and a dedicated team of

three people to look over overseas branding, the brand manager and his team is responsible to

carry-out branding activities locally and internationally.

The Company does not have any specific budget for branding activities but they do have a selling

and marketing budget which is 1.6% of total turnover. The company representative seems

unsatisfied with the company performance in overseas markets, He mentioned that the company

has potential to do more and attract more customers only if provided means to achieve it such as:

financial assistance and human resource. As for current branding practices, the company reaches

customers through free product sampling, digital branding and corporate social responsibility

(CSR) but barely on a small scale but increased financial assistance and manpower so they can

target more customers. Also, a company representative has revealed that the company has provided

paint solutions to many hospitals and schools in Afghanistan free of cost as part of the (CSR).

Moreover, Company leadership aimed to double its export in the next five years, and the company

representative believes that to achieve this goal comprehensive brand awareness, trust building

and improved product quality as part of the effective branding strategy is needed.

4.3 Cameroon Wood and Charcoal Fuels Ltd

Company Overview

Cameroon Wood and Charcoal Fuel Ltd is a medium sized enterprise with employees ranging from

1001 to 200 in number. It is a limited liability company which was created in 1998 and is registered

with the Cameroon Chamber of Commerce and authorization of the Ministry of Forestry and

35

Environment. Cameroon Wood and Charcoal Fuel is located in Douala, Littoral Region in

Cameroon. It is one of the largest exporters of Tropical hard wood such as: Mahogany, Black,

Obeche, Okoumé, Teak, Ebony, Iroko, Sappeli, Moabi, Zibrata and Zingana woods. They equally

produce all kinds of Charcoal products such as; Hard wood Charcoal, Vegetable Charcoal or

Charcoal pellets, Coconut shell Charcoal, Charcoal powder, Eucalyptus Wood, Wood pellets and

wood briquettes etc. All its products are toxin free following the guidelines of forestry regulations

and environmental protection as authorized by the ministry of Forestry and Environment.

Cameroon and Charcoal Fuel has four production sites, each producing more than 25.000 tons of

charcoal and about 100,000 to 119,999 Pieces of wood monthly for both its domestic and

international market. Its main markets are; Main markets: Asia, Australasia, Central/South

America, Eastern Europe, Mid East/Africa, North America, Western Europe and they equally have

a market presence both nationally and regionally. They have an annual sales turnover of 32 797

000 FCFA and 70% of it is from international sales with 11 to 50 sales staff and 20 to 29 engineers.

Marketing and Branding Activities

Cameroon Wood and Charcoal Fuel aims at providing its customers with quality products and

services making sure that the charcoal meets the international standard requirement thus ensuring

a healthy environment and for its consumers. The company gives 10% of its attention to branding

activities, 70% of the company's sales comes from international markets and the personnel are

required to increase brand awareness because the company’s reputation is extremely important for

building trust with their customers especially their international customers. Most of the company’s

focus is on the product quality, the respondent highlights that once the products have good quality

and the prices are affordable, the orders will be stable. However, because of the influence of the

entrepreneur and how the value placed on the company's brand image and reputation, a little time

is dedicated to branding activities.

The respondent adds that, because Cameroon Wood and Charcoal Fuels is an old brand and has a

long history,they have managed to build a certain level of trust and long lasting relationships with

their customers and with that they have a high level of customer retention. Hence, they have many

36

loyal customers since from the time the company was established with whom they have good

relations. He states that the marketing department is doing a good job with building and developing

brand recognition, loyalty and image as it helps in attracting new customers which are crucial

activities performed by the marketing and sales teams. In this case, there is no need for a separate

department for branding due to lack of time and limited resources, the lack of internet know-how

in order to actively utilize more of the website or their social media fun-pages.

The respondent states, there is a good sales team within the marketing department that

communicates directly with the customers which not only increases and builds brand awareness

but generates sales both nationally and internationally for the company. The respondent adds “our

customers like our products and services so much that some customers do word-of-mouth

advertisements for the company because of the unforgettable experiences that we provide our

customers through our product and service offerings ''.

Brand building is carried out with limited resources and budgets, relying primarily on

unplanned, creative, interactive and tentative tactical marketing initiatives (use of below-the-

line, word-of-mouth and recommendations instruments), a greater emphasis on creating and

leveraging direct, permanent and interactive relationship networks with distributors and

customers (informal networking and marketing one-to-one). Brand building relies on a simple

brand identity using a reduced number of brand elements (with emphasis on the brand name,

packaging and logo).

That is to say, regular brand improvement efforts are placed upon the development of incremental

innovations in terms of products, processes and technologies, instead of adopting systematic,

formal and indirect brand evaluation systems a disruptive system is used which includes a great

deal of elements of subjective, intangible and emotional nature for owners-managers (e.g. ego

satisfaction, brand considered "a personal creation" and business reputation), and the

evolution of the brand is closely linked to the company's development.

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4.4 Mukete Estates Limited

Company overview

Mukete Estates Limited is a Cameroonian based medium size enterprise located in the South West

Region, Kumba. It has been operating since 1910 producing cocoa, rubber and palm oil for several

decades. It comprises of two major plantations growing two main crops which are; the palm oil

plantation units in Banga Bakundu and Bai Manya which is located in the Mbonge Subdivision

and the rubber plantation units in Komba Dikwi (Konye Sub-Division) and Nkangmudikum

(Kumba 1 sub-Division). The main products that Mukete exports are; crude palm oil, fresh and

dried pineapples to China, Saudi-Arabia, Canada, America, Australia, Italy, United kingdom,

Netherlands and Belgium-Luxembourg. Mukete estates has a capital of 800 million FCFA with

an estimated annual income of 18.5 million FCFA with 36% from international sales with a number

of employees ranging from 180 to 250.

Marketing and Branding Activities

The respondent revealed that Mukete Estates is highly driven by its goal to run the business by

means of efficiency and running of cost effective operation in the area in whatever crops that they

grow, in a bid to relentlessly boost their shareholders value and steadily improving the living

conditions of the workers. Hence, safeguarding its environment and contributing significantly to

the socio-economic development of the community in which it operates. Mukete Estates has an

international presence but we put little or no efforts into branding activities because they lack the

funds

The primary choice for their company to create brand awareness is by organizing national

agricultural fairs and training of young agricultural entrepreneurs. Additionally, the company

builds its brand by providing its customers with high quality products and affordable prices. The

shareholders are a great source of brand building for Mukete Estates, as the respondent states that

“word of mouth remains one of the best means of marketing their products”. Mukete Estates putin

less than 5% efforts into branding activities and does not have a separate department for branding

as they do not see its relevance and don't have the capital nor the time for it since the publicity of

their brand is effective and the companies social media presence (Facebook, LinkedIn) even

though not very active but yet makes a great effort for the company. The respondent pointed out

38

that, “being an agricultural manufacturer by planting crops to feed the population, rather than

concentrating in the building of mansions for rent in Cameroon” builds an excellent reputation

which acts as a downstream for customers which provides the same importance as publicity.

In addition, he said that “agriculture will forever remain the backbone of the economy because it

does not only provide food for the population but also acts as a great source of raw material for

industries”. A good brand management always has good after-sales service, and after developing

a good reputation and working well together for a long time, trust is built between the company

and its customers and once the relationship is established hence, the customers won’t turn to other

suppliers.

Just about 36% of the company’s sales comes from international markets and I know that putting

effort and resources into branding can increase our company's international sales greatly but the

company lacks the resources, says the respondent. He said that SMEs in Cameroon survive through

quality, affordable prices and quality services, so the competition among SMEs is very intense and

it is therefore difficult to establish a good reputation if the company lacks the resources for

branding especially in international markets. In addition, the company does not manage their brand

because they think that brand management is not immediately effective and that it will take time

to take effect. More importantly, the lack of highly educated brand management talent hinder the

operation of branding in SMEs

5. ANALYSIS

In alignment with the empirical data and theoretical framework from the above literature, an

analysis is done to give in depth thoughts of the different companies about their struggles with

branding activities during exportation.

5.1 B2B Model of Branding in SMEs

According to Mitchell et al., (2015) on the basis of previous theories, some SMEs engage in

minimalist branding activities which are linked to short-term phases of centralized management

39

whereas, others adopt a more embryonically and systematized approach which drives more

progressive market activities. In the case of all four companies, they engage in minimal branding

activities for several similar reasons. Looking at Solution Engineering Pvt Ltd and Diamond Paint,

there is a significant level of similarity as both companies make use of digital branding as they

have the technological know-how and expertise by making use of the companies digital services

such as: their websites and facebook pages to build brand image and reputation (Gilmore et al.,

2001).

Both companies engage in minimal branding activities, apart from Solution engineering does not

have specific department and the Diamond paints have specific department to look over branding

activities but still both mostly engage in short term branding activities as they do not have the

resources to do market research overseas and time to plan a strategic and systematic long term

branding activity for the companies (Bendixen et al., 2004).

In the case of Mukete Estates Ltd and Cameroon Wood and Charcoal Fuel are very similar in the

model as they believe that a successful management of internal and external brand resources should

result in a favorable brand reputation. Hence, the company’s emphasis are laid on vision and

culture which drives their desired brand positioning, personality and subsequent relationships all

of which are tilted and presented to reflect the employees, stakeholders' and companies actual and

aspirational self-images.

In this light the company’s personality traits are developed through associations with the

shareholders and customer contacts and interactions with the company's employees, product

quality, prices and quality services. The consistency of these interactions are of great importance

since it helps foster the relationship between the company and its customers thereby building its

brand image and reputation (Noble et al., 2002). These companies make use of traditional and

minimal branding methods. Hence there is a similarity between the companies from Pakistan and

Cameroon as all four companies embark on very minimal and short term branding activities

because they lack the time and resources to establish or engage in systematic and long term

branding activities.

40

5.2 B2B small and medium enterprises branding strategy

Leek and Christodoulides, 2011; Odoom et al., (2017) says that, there are three types of branding

strategies relevant to B2B SMEs which are: corporate branding, product branding and ingredient

branding says. There is actually an assumption that product-branding strategies are often costly for

SMEs in the manufacturing industry, and in general is more appealing for consumer markets where

experience of the product is paramount because it provides the lens through which consumers

perceive firms. Corporate branding by contrast is said to be more popular with B2B SMEs

(Törmälä and Gyrd-Jones, 2017; Baumgarth, 2010). Hence in alignment to the empirical data,

looking into the branding models of the companies from Pakistan the reality does match the theory,

Solution Engineering Pvt Ltd carries out branding activities but at a minimal level through its sales

and marketing department, in order to create awareness and build brand image and reputation, they

make use of 8 international salespeople in their sales team and set up subsidiaries in foreign

markets with the aim of increasing brand awareness and international sales.

However, they mainly explore branding by means of tender openings and exhibitions thus,

likewise make use of their digital tools such as their websites and social media pages in order to

build international presence, brand image and reputation. However, Diamond Paints carries out

branding activities also on a small scale with the help of the brand manager who oversees all the

branding activities of the company both locally and internationally. The company carries out

branding activities by providing its customers with free product samples, making use of digital

branding that is: the use of the company’s website and social media pages and equally with the

help of corporate social responsibility (CSR) but on a small scale through the provision of paint

solutions to many hospitals and schools in Afghanistan free of cost.

On the other hand, the branding methods used by the companies from Cameroon turn to slightly

differ. According to Cameroon Wood and Charcoal Fuel pays a little attention to branding as 70

% of its sales comes from international markets. The company builds its brand image and

reputation by ensuring that its products and services meet international standards, most of the

company’s focus is on the product quality, price and quality services (Doyle, 1990; Murphy, 1990).

Cameroon Wood and Charcoal Fuel relies a lot on retaining its customers by building trustworthy

41

relationships with its customers which all in turn enables the customers to recommend the

company to others (Word-of-mouth).

The company doesn't have a separate department for branding but makes use of the marketing

department efficiently carrying out personal selling, creating and leveraging direct sales with

interactive relationship networks with distributors and customers. Hence, branding relies on a

simple identity and reduced number of elements such as: the logo, packaging and the brand name.

Brand improvement efforts are placed upon the development of incremental innovations in terms

of products, processes and technologies, instead of adopting systematic, formal and indirect brand

evaluation systems.

Likewise, Mukete Estates Ltd is highly driven by the need to ensure the satisfaction of its

shareholders, employees and environmental sustainability. Very little efforts are put into branding

activities in their international spheres. The little branding efforts are executed domestically

through national agricultural fairs and training of young agricultural entrepreneurs. In addition, the

company ensures that its international and national customers are provided with high quality

products at affordable prices while offering unforgettable services through after sales services,

follow ups and handling objections. Personal selling and word of mouth are key marketing

strategies used by the company. Digital branding is very minimal.

5.3 B2B small and medium enterprises branding communication

B2B firms apply different brand communication strategies which includes; direct marketing, trade

exhibitions, sales promotion and personal selling (Kotler and Pfoertsch, 2006; Aneesur-Rehman

et al., 2018) thus, the application of brand communication strategies varies in B2B and consumer

markets. Hence, on the basis of the empirical data above, this theory matches reality. The four

different B2B firms apply different brand communication strategies just as mentioned by Kotler

Kotler and Pfoertsch, (2006); Aneesur-Rehman et al.(2018) above but with some similarities.

Solution Engineering Pvt Ltd in this case makes use of personal selling by ensuring that 8 people

from its sales team carry out sales and marketing and branding activities in their international

markets. In addition, they opened a sales subsidiary in the UAE in order to capture, promote and

increase international sales.

42

However, they mostly made use of tender sales, hosted and participated in exhibition and digital

branding through the company’s website, facebook page and LinkedIn account. Meanwhile,

Diamond paint laid emphasis on personal selling and product innovation as a brand communication

tool with the help of the brand manager and his team who are responsible for carrying out branding

activities both internationally and nationally. More so, digital branding through a company website

goes a long way as a brand communication method in building the company’s brand image and

reputation.

On the other hand, Mukete Estates Ltd and Cameroon Wood and Charcoal Fuel are very similar

in their communication methods as both companies mostly rely on personal selling and word-of-

mouth communication through the help of their sales teams within the marketing department.

Unplanned, creative and tactical marketing initiatives are used while laying emphasis on creating

leveraging direct and interactive relationship networks with the shareholders, distributors and

suppliers as an efficient brand communication method for creating brand awareness, building

brand image and reputation. Digital branding in this case is very minimal but these companies

have websites, facebook and pages.

5.4 B2B small and medium enterprises branding constraints

Prior research has listed a number of constraints that B2B SMEs have encountered specifically

during exportation such as: perceiving branding to be less important for B2B SMEs (Wong and

Merrilees, 2005) the complexity of the B2B market particularly in international spheres (Keller

and Kotler, 2012) and the limited resources and capabilities to support branding activities(Leek

and Christodoulides, 2011). Relating back to previous theories on the challenges faced by B2B

SMEs with branding during exportation, these theories actually match the reality of the struggles

that B2B SMEs are faced with while exporting to international countries.

All four companies (Solution Engineering Pvt Ltd, Diamond Paints, Mukete Estates Ltd and

Cameroon Wood and Charcoal Fuel) faced similar challenges. The companies mostly complained

about lacking the financial resources, lack of time, like technical know-how/understanding of

concept and lack of talent in managing international branding activities. The lack of understanding

of the concept is exhibited in most SMEs, such that they barely pay attention to what their

product/service brands stand for (Merrilees, 2007) which consequently, they either fail within a

43

relatively shorter time of existence or perform below their optimum capacity. It has been

recognized that, in the case of SMEs, most owners/managers could barely appreciate what brand

management is and, as such, misinterpret the concept (Krake, 2005; Mann & Kaur, 2013).

In addition, and with exception, Solutions Engineering Pvt Ltd talks of their struggles with the

differences in cultural background and market knowledge overseas. However, in order to

overcome these problems, the company believes in conducting overseas market research

(understand their audience, identify potential partners and influencers in their domain), follow the

industry trends and keep an eye on competitors.

6. CONCLUSION AND CONTRIBUTIONS

The findings of this research are presented with the contributions to the body of knowledge

acquired from this study. The purpose of this research was to increase the knowledge on the

challenges that B2B SMEs are faced with during exportation.

On the basis of the analysis drawn from comparing previous theories to the empirical data, the

findings from the above case studies reveals that, just like large companies, SMEs equally put in

some effort into branding though at a minimal rate due to the challenges that they are faced with.

All four companies(Solution Engineering Pvt Ltd, Diamond Paint, Mukete Estates and Cameroon

Wood and Charcoal Fuel) even though from diverse industries pointed out similar challenges

(Lack of finances, time and skilled individuals to manage international branding activities) that

they are faced with. Due to the lack of attention on branding activities, the above companies export

performances are relatively low. Despite the large amount of literature on branding and brand

management, very little empirical knowledge exists on the struggles that these SMEs are faced

with branding during exportation in multiple industries. Hence, there was a clear need to address

this knowledge gap.

This research study contributes to the literature by comprehensively identifying and synthesizing

relevant studies on branding in B2B SMEs, this review study reveals that, branding research works

focusing on the struggles of B2B SMEs during exportation are burgeoning, although at a relatively

minimal rate as compared to those focusing on large firms. Generally, most of the studies make

44

calls for the advancement of theory by suggesting the need to examine more issues raised in

different economic contexts, as well as business sectors. Empirical works on branding focusing on

large organizations abound in the literature, but with relatively little representations from small

business settings. Evidently, some of the concerns raised by earlier scholars appear to have been

tackled, whereas others are yet to be given serious attention.

45

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APPENDIX

Questionnaire

Influence on Company Information

1. How long has your firm been exporting to international markets?

2. What are the number of foreign markets in which your firm operates?

3. Do you carry out branding activities? Why do you carry out branding activities?

4. Do you have an independent department for brand management? How is branding

done in international markets?

5. What do you think about the brand management in your company? Do you think it will

be/is successful?

6. Do you think it is difficult to build and maintain a brand in SMEs? And why? What are

the challenges your company faces while branding in foreign markets?

7. In your opinion, what are the biggest problems faced by SMEs when branding in

foreign?

8. How do you solve these problems?

Influence of the Company Structure

9. How much attention does your company give to branding activities? Is branding done

regularly?

10. Do you think branding is important for the development of your company? How does

your company value brand management?

Influence of the Market

11. What kind of products /services do you offer to your customer? Who is your target

market?

12. Has the company ever changed the brand image or brand position?

62

13. Do you have some special idea to attract your customers through branding?

14. Do you think communicating with your customers is a good way to obtain useful

information regarding branding?

Available Budget

15. Do you spend much money on branding activities? Why?

Marketing Activities and Communications

16. How do you create and increase your brand awareness?

17. Do you think your branding strategy is effective? How do you evaluate it?

18. What do you think about branding impacting your brand's performance and turn

over?

19. How much does branding contribute to your annual turnover? And how does it relate

to your marketing activities?

20. What percentage of sales comes from your overseas markets? What are the most

important elements or criteria’s to pay attention to when building a brand?

PO Box 823, SE-301 18 HalmstadPhone: +35 46 16 71 00E-mail: registrator@hh.sewww.hh.se

I am Asoh Gwendoline Ngwa comesfrom Cameron, and have beenworking with various organization inhome country and i have been thankfull for the opportunity given by theHalmstad university to peruse amaster programe is a completelearning experience for me.

I Muhammad Zaigum, previously havedone Master in Accounting & Financefrom my home country and myexperience in field is involved retailbusiness operations in SMEs and localstore marketing, had led me to do foranother Master from Halmstaduniversity to proceed with my fu