Brand and sales to be differentiated on studies related to products and services of SMEs.
International retailers are starting to recognise the Australian market as a source of potential income growth and are setting up stores here. This has been particularly prevalent in supermarket retailing with the appearance of new entrants such as Aldi and Costco in recent years. This increased competition is welcomed by existing local retailers but requires them to respond to the added competitive pressures by ensuring they are meeting their customers‟ needs in terms of both price and service. There have also been significant changes in store formats in recent years. This includes increased use of self - service in retail store and use of larger one- stop store formats that are based around having everything needed in one place. There has also been the emergence of „own brand‟ products and formats that incorporate stores-within-stores so customers can access specialised services in a central, convenient location. Consumers are increasingly embracing new technology as part of their retailing experience and the retail sector
Is responding to maximise the opportunities this technology drive creates. Traditionally retail has been regarded as a domestic industry that has been largely shielded from the impacts of globalisation. But technology has changed that; retail has gone global. Over recent decades, globalisation has driven major structural changes in other Australian industries –in recent years this has started to emerge in retail.
http://www.pc.gov.au/__data/assets/pdf_file/0003/109776/sub091.pdf
The nature of product would define the need for brand. one way to look at association between sales turnover and brand association would be in terms of the percentage of repeat sales to same set of customers. SMEs at times work on a limited set of customers and they create an equity for themselves in that limited customer base.
Factors Favoring A Promotional Product
Award Selection & Administration Series, When to Use Branded Vs. Promotional Products, By Rodger Stotz, CPIM, Maritz Inc., and Bruce Bolger, CPIM, Selling Communications, Inc
Pp295.
Promotional efforts are recognized as a potent tool for managing brands, with in-store displays, feature advertising, and temporary price reductions key components of a traditional promotional mix.
A long term sales impact may appear in two forms: (1) permanent effects, which represent a true change in baseline sales, and (2) cumulative effects, which summarize the over-time changes (which may be negative or positive) before sales return to baseline.
Product introductions generate greater long-term effectiveness of promotional efforts for low-equity brands than for high-equity brands. Although a brand with higher equity may command a halo effect that could enhance the effects produced from introducing products, high-equity brands likely experience ceiling effects. The introduction of products is also an avenue by which lower-equity brands may realize greater long-term sales effects from marketing promotions.
Rebecca J. Slotegraaf et all (2008)The Impact of Brand Equity and Innovation on the Long-Term Effectiveness of Promotions, Journal of Marketing Research
Vol. XLV (June 2008), 293–306,
https://kelley.iu.edu/Faculty/Marketing/rslotegr/publications/JMR%20with%20Pauwels%2008.pdf
The main question posted dealing with the function of the brand association & performance and sales turnover. Normally, the sales turnover influenced by promotional efforts, especially sales promotion (induces short term sales) beside the performance of the product (i.e. Quality, newnest, etc.) and efficiency of marketing channels (the more closer the product to consumers the higher the chances to be sold).
The brand of the product (not corporate) function as product identification which would help customers locating the product as compared to competitors. As a result, brand would help customers during purchasing decision making process, therefore, many firms employed brand as their strategies to conquer customers by building brand loyalty. From the consumer's views, brand loyalty is the results of the past experiences, which used as a reference to shorten their purchasing decision process.
The product of SME without a brand could be explosive in the local market where customers have a prior knowledges on the product quality, background of the manufacturer, a campaign by certain agencies etc. However, SME products without brand may have difficulty in penetrating global markets.
It is not a perfect answer to your question but you may take a look at this article:
Harald Biong and Ragnhild Silkoset (2014), “The Ineffectiveness of Corporate Brand Investments in Creating Price Premiums,” Journal of Marketing Theory and Practice, 22 (2), 169-184.
Dear Dileep,
Many of the SME firms thought might not have strong brand but awareness of the product among the consumers drive the sales. One point cant be ignored that they have very limited market as far as goegraphy is concerned. I guess "I known devil is better than an unknown angel" might be playing the trick for the strong turnover of the local product.
Hope this helps.
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