An assessment of product branding on business performance: the case of manufacturing SMEs in Magaba, Mbare

Abstract

The study sought to understand the impact of product branding on business performances for manufacturing SMEs operating at the Magaba Home industrial area, in Mbare, Harare. Literature was reviewed to get a deeper understanding of other research that has been done in the past and identify existing gaps to fill using the current study. From the review of the literature, it emerged that branding is largely associated with large corporations. The study was executed using a qualitative research approach and it employed a case study research design. A semi-structured interview guide was developed and used to guide the face-to-face interview processes. Responses from the interviews were audio recorded using a tape recorder before being transcribed into MS word for analysis. The study was underpinned by the Customer-Based Brand Equity (CBBE) theory. Participants were purposively sampled. The sample consists of 15 manufacturing SMEs from Magaba in Mbare. The estimated population of SMEs in Magaba is plus or minus 1000. Descriptive statistical analysis was done using excel, to give a descriptive picture of the social-demographic characteristics of the participants. The interview transcripts were analyzed for content using Atlas/ti. Ethical considerations were observed, through but not limited to seeking participants’ consent prior to conducting the interviews, explaining the study purposes as well as the use of private space for conducting interviews. Findings indicated that branding of products is not being done by the manufacturing SMEs in Magaba. Lack of financing and knowledge on how to brand came out as key prohibitors to brand establishment. Based on the findings of the study, it was concluded that financial institutions should avail financial options for SMEs to access the finances needed. There must be workshops and seminars where manufacturing SMEs are taught about the importance of branding their products and related issues.