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
16
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: [email protected]
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