Medium-sized companies often face the challenge of clearly positioning themselves with limited resources in a highly competitive market. Thoughtful branding helps to make your brand visible and build trust with customers. This isn't just about an attractive logo or a catchy slogan, but rather a consistent and authentic brand strategy.
Branding describes the targeted development of a brand identity. The goal is to create a distinctive brand image through communication and marketing that clearly distinguishes itself from competitors. Specific characteristics are consciously linked to the brand and anchored in the consumer mindset.
Successful branding requires that the brand promise be consistently kept. The brand stands for quality and service. At the same time, branding builds an emotional connection by connecting people with particular environments and lifestyles. When we buy a brand, we also express our identity and affiliation.
Around 99% of companies in Austria and Germany are small and medium-sized enterprises (SMEs). In Germany, medium-sized enterprises (SMEs) generate around 35% of total revenue, while in Austria, around 87% of SMEs employ fewer than ten employees. The digital revolution is fundamentally changing corporate communication – especially for these small businesses, which now have to compete in global markets. B2C consumers today have the flexibility to shop whenever and wherever they want.
In B2B, too, buyers are increasingly making their decisions beyond regional boundaries and personal contacts. This creates new demands on communication skills for SMEs. While purchasing was once handled personally by clerks and management, digital and impersonal sales channels now pose new challenges.
Even small and medium-sized enterprises (SMEs) can target their communications and branding. With clear branding, they reach new target groups and strengthen their online presence. This not only wins back customers but also makes them more attractive to skilled workers – a crucial advantage in times of skilled labour shortages. Potential employees are increasingly looking for an emotional connection with the company.
SMEs have limited communication resources compared to large corporations. Therefore, it is important to align their branding strategy accordingly. Instead of being present on all channels, they should focus on clearly defining their identity, telling their story authentically, and investing in appropriate measures. Once these foundations are laid, branding unfolds its impact almost automatically.
Family businesses and SMEs, in particular, often have a unique story to tell. Their values and visions are reflected in the passion and conviction with which they offer their products and services. They also know their customers well – an advantage they can leverage for their branding.
Branding is part of marketing and is usually financed from the marketing budget. Annual expenditures vary depending on the industry and business model.
In the manufacturing sector, average marketing costs in Germany are around 3% of annual revenue. In the service sector, they are somewhat higher at around 10%. Companies whose business models are heavily based on marketing, such as Red Bull, invest correspondingly more.
It is essential to pursue branding and communication continuously to achieve lasting effects. Therefore, it is advisable to plan the budget to ensure continuous development over the years.
A 2007 publication by the British Design Council shows that every £100 invested in design generates £225 in revenue. This figure highlights the economic value of design.
However, investments in design and communication are not as easy to calculate as, say, the purchase of new machinery.
The report also highlights that companies that incorporate design as an integral part of their strategy have less need to compete with competitors on price. Targeted branding creates loyal customers who provide stability. At the same time, relationships of trust within the supply chain and with the company's own team are strengthened.
The benefits that branding offers small and medium-sized enterprises (SMEs) are manifold and go beyond financial gain. Today, branding is easier and more cost-effective for SMEs than ever before – provided it is based on a carefully developed strategy.
