Small and Medium Enterprises are the backbone of every economy; the catalyst that propels the economic growth of both the developed and developing countries all over the world. While branding is a broad spectrum of both tangible and intangible attributes of products and services, in this context, it is limited basically to creative design application solutions as it affects product overall outlook.
Efficient and effective branding is the hallmark of any good product. Regrettably, through the gamut of business management and product development chain, branding or brand management as the case may be is often the least prioritized among SMEs. Little or no attention is paid to this critical area by SME businesses. While so much is expected from institutions like SMEDAN, CBN, Bank of Industry and many other financial institutions that are saddled with the responsibility of training, warehousing and disbursement of funds dedicated to SMEs’ growth in the country; in advancing the need for a holistic training approach for entrepreneurs along this line, unfortunately their disposition towards the involvement of brand experts in training and teachingboth would-be and existing entrepreneurs the nitty-gritty of branding which has always been one of the core missing links in the growth of SMEs in Nigeria has not been encouraging.
Many underlying factors such as market dynamism and consumer behavioural pattern which are to shape the insight and physiological look of products are neglected or relegated to the background by stakeholders. Hence many products with abundant potentials struggle hard in the market place largely due to poor and appalling presentation of products to potential buyers. It is instructive to note that statistics has shown that most SMEs in Nigeria hardly survive their third years.
A good product presented in unappealing manner can only be likened to a well-decently-behaved person who appears unpleasant. Essentially, for any product to succeed, detailed attention must transcend quality content make-up of product and financial know -how alone, to tactical conceptualization of brand’s physiological look which must be distinct, appealing and endeared to consumers.
The digital age Consumers are dynamic in nature. Their expectations are quite high and they do not have the patience and luxury of time to waste. To them image is everything. Perception is all it takes to form an opinion and purchase decision is made. You either connect with them at their point of need or you do otherwise at your own peril. As far as they are concerned, value for money cannot be compromised.
More so, the present economic reality in Nigeria as created by cash crunch owing to drop in oil prices and government revenue, has once again made consumers to be over-conscious and cautious on how they spends their little resources. However, the drive to increase local production in all facet using the SMEs’platform to help quicken economic recovery, more than ever is reverberated. With this, definitely, so much effort is being expected from both the government and private sector in funding and supporting of SMEs. But if care is not taken much of this effort from both the government and private sector may yield little or nothing unless conscientious effort is seriously made on educating SME owners on the role of branding, and the need to synergize it with other business variables. The fact is that brand management as an integral part of marketing mix is required by every business to succeed in the “dog eats dog” competitive market. And the earlier every SME business understands this, the better for them.
It’s quite disheartening to see many SMEs’ products that are of top notch quality, content-wise, struggling to enjoy desirable market share due to low or non-existing investment in branding and packaging.
Until SMEs begin to see branding as an investment rather than one of those dispensable aspects of business management skills, they will continue to experience serious challenges.
Though sometimes, it is understandablethat many SMEs deliberately avoid the services of throat cutting ad agenciesfor branding or branding support services that could help position their product well. But many a time ignorance on the part of SME owners regarding where to get the expertise that could offer such professional services mostly lead them to wrong places where poorly conceptualized designs are easily and quickly concocted by ill-trained individuals for a token.
More often than not, the result from such exercise always lacks brand insight, functionality and all basic elements that could create a distinct or unique identity for a brand or product to excel.
Agreed, ad agency charges are almost unaffordable for many SMEs but notwithstanding, a careful search for experts who are not weighed down by so much overhead unlike ad agency could do the magic.
Above all, if the ultimate goal of any business is to sell and make profit, no doubt enjoying substantial market share is vital for survival. That’s why SMEs must understand that they are in same market with the big conglomerates that have the financial muscle and capacity to edge out competition and continually dominate the market as much as they can.
One country that has demonstrated unassuming growth in SMEs is China. Today most of the products that are being imported from China into Nigeria are made by SMEs and many of these products can compete with any brand from any part of the world in areas of quality, pricing, branding and packaging.
SMEs, entrepreneurs and stakeholders, need to understand that branding is both an art and science that’s worth investing on and this cannot be overemphasized especially now that Nigeria is seeking ways to increase and attract foreign exchange through earnings from exportation of non-oil products. From FMCG to agricultural produce we must begin to lay emphasis on branding and packaging to be able to compete and access foreign markets with our products. While it is good to invest in research, process management and financial training, the whole effort would be in nullity if we refuse to focus on product packaging and its presentations pattern in a manner that is acceptable to the consumers, regulatory bodies within and outside the shore of the country.
Olugbenga Alomaja
