1. The Importance of Branding for Small and Medium Enterprises

For small and medium enterprises, branding is a very important management strategy. By conducting appropriate branding, companies can enhance their corporate value.

Thus, branding is an essential element for the sustainable growth of small and medium enterprises. However, branding requires time and cost. It is necessary to establish wise strategies within limited resources.

How Branding Enhances Corporate Value

Branding is the activity of enhancing customers' awareness and favorability toward a company's products or services and differentiating them from those of competitors. The stronger the brand power, the higher the corporate value will be.

In this way, branding brings significant benefits to corporate management, such as promoting sales and enhancing employee motivation. Even for small and medium enterprises, increasing brand value is a crucial key to enhancing corporate value.

Helpful in Gaining Customer Loyalty

By building a strong brand, companies can enhance customer loyalty. Once trust is cultivated towards the brand, customers are less likely to switch to competitors, and repeat purchases are encouraged.

For example, if a restaurant establishes a brand image of "committed to healthy and fresh ingredients," customers who resonate with that brand will continue to visit.

In this way, if customer loyalty is heightened through branding, stable revenues can be expected. Furthermore, as brand value increases, the added value to products and services also rises, allowing for higher pricing strategies.

Expectations for Acquiring New Customers

Effective branding can lead to the acquisition of new customers. This is because brands can visually and clearly convey a company's values and characteristics.

For example, there are the following benefits.

Thus, if a company's attractiveness can be effectively promoted through branding, it can attract the interest of potential customers, leading to the development of new customers. Moreover, increasing brand awareness can also lead to expanded sales channels.

However, the effects of branding do not appear overnight. Ongoing efforts are essential. Even small and medium enterprises should steadily promote branding to achieve new customer acquisition.

2. Steps for Branding

Here are the steps for small and medium enterprises when conducting branding.

(1) Clarifying the Strengths and Characteristics of the Company It is crucial to clarify the unique strengths and characteristics of the company. Identify points that can differentiate products or services from competitors, such as quality, technical capabilities, and after-sales support.

(2) Setting the Target Audience

This way, clarify the attributes of the targeted customer base.

(3) Developing the Brand Concept
Based on the strengths and characteristics clarified in (1) and the target audience set in (2), formulate the brand concept. For example, specify the brand's worldview as "simple but functional design."

(4) Creating the Brand Story Summarize the brand's background, philosophy, and journey in a narrative form. This serves as a tool to deepen understanding and gain empathy for the brand.

(1) Clarifying the Strengths and Characteristics of the Company

The most important step in branding is to clarify a company's strengths and characteristics. Finding and organizing the elements that differentiate a company's products or services from others is essential.

Specifically, it is recommended to identify the following three points:

1. Strengths of the Company

   Technical capabilities, price competitiveness, customer responsiveness, etc.

2. Characteristics of the Company

   Regional characteristics, history, commitment, etc.

3. Values of the Company

   Philosophy, mission, value, etc.

With these in mind, plan the brand concept. For example, if the focus is on technical ability and regional characteristics, a concept like "craftsmanship merging the latest technology and local resources" could be considered.

By verbalizing a company's strengths and characteristics in this way, the direction of branding is established, and effective measures become easier to implement. It is wise to take the time to thoroughly consider this.

(2) Setting the Target Audience

To succeed in branding, it is important to clearly define the target audience. If the target audience is not narrowed down, brand messaging will miss the mark.

Setting the target audience is done by analyzing items such as the following.

By setting the target audience in detail, effective branding strategies can be developed. Additionally, setting multiple target segments and implementing measures tailored to each is also a viable method.

(3) Developing the Brand Concept

The brand concept defines the core values and messages of the brand. Based on the company's strengths and characteristics, and the target audience, it clarifies what kind of brand it aims to be.

By conducting product and service development and promotional activities based on the formulated brand concept, a consistent brand image can be built. The brand concept serves as a guideline for corporate activities, so it is essential to share and internalize it within the company.

(4) Creating the Brand Story

The brand story expresses the background, philosophy, and ideas of the company or brand in narrative form. Creating a brand story has the following benefits:

• The company’s individuality and values become clearer

• A psychological connection with customers emerges

• The product or service gains attractiveness

The steps for creating a brand story are as follows:

1. Organize the company philosophy and characteristics of products/services

2. Set the protagonist (hero) of the story

   Such as founders, employees, customers, etc.

3. Set the challenges (beliefs) faced by the protagonist

4. Depict the process by which the product/service resolves those challenges

5. Clarify the ideal state (success) the protagonist desires

The story created in this manner will be communicated to customers through web, social media, advertising, etc. Through the brand story, customers resonate with the company's intentions, and deeper bonds are formed.

3. Low-Cost Branding Measures

(1) Utilizing Social Media: Social media platforms like Facebook, Twitter, and Instagram are tools that enable low-cost branding. By posting about the company’s products and services and engaging with followers, brand recognition can be heightened.

(2) Utilizing the Company Page: Prepare designs and messages that create the brand's worldview established in the initial steps and express them on the company's homepage.

(3) Hosting Experiential Events: By holding events that allow users to actually experience products and services, deeper understanding of the brand is cultivated.

(1) Utilizing Social Media

Social media is an effective means of conducting branding without incurring costs. Below are the representative platforms and their usage methods.

It is essential that the content of the posts aligns with the company's brand concept and story. By maintaining regular communication and engagement with followers, an increase in brand awareness and building a fan base can be expected.

Also, collaborating with influencers is an effective strategy. If you request influencers to post using your products, you can effectively expand your reach.

(2) Utilizing the Company Page

For small and medium enterprises, their company page is one of the effective branding measures.

The appeal of utilizing the company page lies in the following two points:

1. Branding can be done at a low cost
   Since the costs for creating and operating a website are minimized, branding activities can be conducted at low costs. If using social media, it can be set up for free, thereby minimizing initial investments.

2. The company’s strengths and philosophy can be effectively communicated
   On the company page, aspects such as the company's strengths, characteristics, and brand story can be freely disseminated. By utilizing images and videos, the brand image can be conveyed in a clearer manner.

When operating the company page, it is crucial to create design and content that align with the brand image.

(3) Hosting Experiential Events

For small and medium enterprises, holding experiential events is particularly effective for branding. By allowing customers to directly experience products and services, a strong impression can be left on them.

For example, for a restaurant, a "kitchen tour" that introduces the origin of ingredients and the skills of chefs, or for a handmade goods store, a "workshop" where production experiences can be offered, can be considered.

Through such experiences, customers can feel the "story" behind the product or service. Additionally, there is the expected effect of word-of-mouth through online dissemination on social media.

Holding events requires considerable preparation, but it can be said to be a branding measure that leaves a strong impression on each participant.

4. Branding Examples for Small and Medium Enterprises

(1) Product Branding Utilizing Regional Resources Brand branding using local specialties or ingredients becomes a strong added value. For example, a certain farmhouse restaurant offers dishes using vegetables from the region, establishing a brand called "Dishes made with fresh vegetables from XX Prefecture."

(2) Service Branding Utilizing Company Strengths Branding services that leverage a company's strengths is also effective. A certain small IT vendor has built the brand "Your powerful IT partner" leveraging their customer-centric and careful support.

(3) Business Revitalization through Rebranding
There are also examples of businesses revitalizing through rebranding. Once a declining traditional confectionery shop has regained popularity through a new brand concept and products introduced by a young entrepreneur.

(1) Product Branding Utilizing Regional Resources

Branding products that utilize regional resources holds great potential for small and medium enterprises. For example, Nagano Prefecture's "Shinshu Premium Beef" is known as a brand of beef produced under conditions that take advantage of the region's climate and raising environment.

By leveraging the climate, geography, and traditional methods of the region, products can be differentiated from those of other companies. Additionally, partnering with local producers allows for reliable raw material procurement, resulting in the creation of high-quality products.

Product branding utilizing regional resources requires developing products that embody the values and culture of the region, rather than simply attaching the region's name. This can serve as a strong appeal to consumers and lead to an increase in brand value.

(2) Service Branding Utilizing Company Strengths

Small service-oriented enterprises can effectively brand by utilizing their strengths. For example, a beauty salon may focus on the quality of service and technical skills, while a restaurant may focus on the taste of food and ambiance.

Translating these strengths into brand concepts and embodying them in store design, advertising, and staff training manuals is essential.

By branding the unique strengths of small and medium enterprises, customer support can be gained and differentiation achieved. Offering services with a brand awareness leads to improved customer satisfaction, repeat purchases, and ultimately the acquisition of new customers.

(3) Business Revitalization through Rebranding

By evolving brands to meet changing times, businesses can achieve revitalization. When customer needs change, and the existing brand image becomes obsolete, it is important to establish a new brand image through rebranding to promote business revitalization.

For instance, Company A, which used to have a strong image as "a stylish café," is now perceived as "a place that offers high-calorie sweet items" due to the rising health consciousness, leading to declining sales.

In response, Company A conducted rebranding and established a new brand image as "a café that offers health-conscious menu items." As a result, they attracted health-conscious customers and were able to increase sales once again.

In this way, evolving brands in accordance with environmental changes is vital for the revitalization of small and medium enterprises.

5. The Importance of Continuous Branding Efforts

Branding is not a temporary effort; it requires ongoing commitment. This is because it takes time for the brand image to take hold.

For example, it took many years of advertising activities for the logos and catchphrases of famous sports brands to become widely recognized. Small and medium enterprises must also continuously work to gradually impress their target customers with their brand.

As such, it takes a significant amount of time for the effects of branding to appear. It does not happen overnight.

Additionally, it is necessary to evolve the brand in response to changes in the social environment. It is required to review the brand concept and brand story accordingly based on changes in economic conditions, industry trends, and customer needs.

Thus, continuous efforts in branding are imperative. Even for small and medium enterprises, steadily enhancing brand power is crucial.

Time Required for Brand Image to Take Hold

Implementing brand image requires long-term efforts. Continually appealing to consumer consciousness allows for gradual increases in brand recognition.

Establishing a brand overnight is difficult, and it is important to consistently carry out initiatives such as the following.

Branding requires a certain amount of time and cost, but once established, it becomes a significant asset for the company. Flexibly responding to trends and changes in the market while maintaining steady efforts to build the brand is key.

Evolution of the Brand in Response to Environmental Changes

Branding is not a one-time effort. Over time, consumer needs and the dynamics of competing companies change. Therefore, there is a possibility that the brand image may become outdated.

Therefore, when environmental changes occur, it is essential to reassess the direction of the brand. Continuously gathering consumer insights and updating the value of your brand is important. By evolving the brand in line with the times, the freshness of the brand can be maintained, and bonds with customers can be strengthened.

6. Conclusion

For small and medium enterprises, branding is a crucial management strategy. By conducting effective branding, improvements in corporate value as well as the acquisition of customer loyalty, and the development of new customers can be expected.

When proceeding with branding, it is essential to first clarify the company's strengths and characteristics, set the target audience and formulate the brand concept. It is advisable to combine low-cost measures such as leveraging social media, developing collaborative products, and hosting experiential events.

Branding cannot be achieved overnight. Continuous efforts and evolving the brand in response to environmental changes are vital.