An Analytical Study of Branding Initiatives of MSMEs with Special Reference to Service Sector

Abstract

The branding initiatives have potential to contribute for much needed survival as well as growth of Enterprises. However, the context of Micro, Small, Medium Enterprises (MSMEs) is different in numerous ways and there are geographical as well as sectoral or industry-specific variations as well. Considering the unique nature of MSMEs, contribution of this sector to the economy, growth of service sector, and rise of digital tools there is a need for further research in this area. newlineThe objectives of this study are to study conventional brand building activities; explore digital brand building tools; investigate strategic and brand orientation; and analyse the branding practices and key factors in MSMEs within the service sector. More than 300 sources are studied during the literature review phase of the study. This includes variety of sources, from diverse geographies published over the last few decades, covering key aspects of the study. newlineThis mixed-method study includes qualitative methods such as 3 Focus Group Discussions amongst 28 MSME Owners, In-Depth Interviews of 12 Branding Agency Leaders, and Customer Perception Study of 104 households. For the survey of Owner/Managers in service sector MSMEs, which is a primary input to this study, there are 281 valid responses to the structured questionnaire. Based on the data collected in this survey, 8 hypotheses are tested. The data analysis is done using IBS SPSS software. newlineThe major findings of the study are: a) brand building is concentrated on a few activities and tools, and the branding efforts seem to be inconsistent; b) there is a lack of awareness about the concept, scope, potential, and practices in branding; c) the brand building activities, both conventional and digital, are used at a limited scale; and the influence of the owners is an important facet in the functioning of MSMEs; and d) a lot depends on whether the branding is considered an investment for growth and sustenance or as an expense.