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The purpose of this study is to examine the relationship between brand orientation and business growth in business-to-business (B2B) small- and medium-sized enterprises (SMEs). The authors also explore whether this relationship is moderated by internal firm-related factors (firm age, firm size) and/or external market-related factors (market life cycle, industry type).

The authors develop and empirically test a conceptual model using data from 396 B2B SMEs operating in Finland. Structural equation modeling is used for testing the research hypotheses.

Brand orientation contributes to business growth via two indirect paths, the first one going through brand performance and the second one going through brand performance and customer relationship performance. However, although the effects are positive, the results reveal that the regression coefficients are relatively small, implying only a limited impact of brand orientation on growth among B2B SMEs. The results further suggest that firm age, firm size and industry type moderate the brand performance–business growth relationship, whereas market life cycle moderates the effect of brand orientation on brand performance.

Future research could extend this study by examining brand orientation in industrial markets simultaneously with alternative strategic orientations, such as market, technology and innovation orientation. New moderator variables should also be considered, such as market or technological turbulence. Furthermore, given that this study uses a cross-sectional data set, it is recommended that future research should attempt to test the model using longitudinal data sets.

B2B SMEs are able to gain business growth through developing a strong brand. However, brand orientation per se appears to be of limited relevance for such an endeavor. Consequently, managers of small industrial firms should consider brand orientation only with, and in comparison to, alternative strategic orientations.

Brand orientation has been very rarely examined from the perspective of B2B firms or that of SMEs. Interestingly, the findings indicate that the performance benefits of brand orientation seem to be smaller among B2B SMEs than what earlier research would imply. The analysis of moderation effects offers additional insights into whether there are differences between industrial SMEs as to the relevance of brand orientation.

The aim of this paper is to propose a consistent framework that allows the brand manager to detect innovation/growth opportunities and risks.

The paper is based on an extensive theoretical study of innovation and growth approaches combined with analysis of cases (Dell and Red Bull) and many practical examples. The different approaches are compared at three levels: the customer value, the process and customer segment level. It also uses principles of the logical brand management model, proposed in a JPBM (2004) article as a benchmark.

The paper shows that many frameworks still focus too much on the firm's perspective instead of the customer perspective. An approach is proposed in which growth and innovation starts from the customer value. It allows to detect potential opportunities and risks at a very detailed level.

The growth and innovation model proposed may be used in a business‐ to‐consumer and a business‐ to‐business context (as illustrated with the cases and examples).

Continuous adjustment of the customer value, by manipulating importance and satisfaction rates of different brand drivers leads to a continuous redefinition of contextual segments. In an effort to keep current customer segments and to attract new ones a balance must be sought continuously when adjusting the brand drivers. This kind of audit may also be perceived as a risk management approach for brand managers who want to evaluate innovation and growth options.

This paper “integrates” many innovation and growth approaches into “one” consistent approach.

Brand managers must decide between extension and alliance strategies to grow their brands. This paper aims to describe testing of consumers' responses to two alternative brand growth strategies: an extension strategy whereby a brand moves into a new category alone, and an alliance strategy whereby the same brand moves into the new category as a branded ingredient in a brand already established in that category. How far to stretch a brand is yet another strategic choice facing the brand manager, and the current research tests, under short and long category‐stretch conditions, the attitudinal responses to extension and alliance strategies.

The paper builds on the categorisation and incongruence literature. An experiment was employed to test the main hypotheses in the study.

Extensions outperform alliances, especially when the brand undertakes a long stretch, and short‐stretch strategies outperform long‐stretch strategies.

An extension strategy may be preferred to an alliance strategy, especially in situations in which the new growth opportunity requires a long stretch.

The paper compares, in the same study, the attitudinal effects of two important growth strategies widely employed by companies. Previous studies have assessed the performance of these two strategic options only separately.

The purpose of this paper is to examine what happens to key brand performance metrics as brands change in market share, in the context of packaged goods. The metrics are: penetration—the number of buyers a brand has; and loyalty—measured as purchase frequency (PF) and share of category requirements (SCR).

The study utilizes 24 data sets in 17 packaged goods categories in three emerging markets: China, Malaysia and Indonesia. The authors examine changes in penetration, loyalty and SCR in the context of volume and value market share change. In addition, the authors examine whether initial price point and price movements influence the results.

The primary finding is that market share change is accompanied by a greater change in penetration than in any other metric. This finding is very consistent across categories and countries. The relative importance of the two loyalty metrics varies by country. SCR was a stronger factor in Indonesia, while PF was stronger in Malaysia. Analysis indicated that pricing strategy (initial price and promotional depth) did not alter the main pattern of results, suggesting the results hold for brands with different price levels and tactics.

Irrespective of circumstance, to grow in value or volume market share, brands should aim to grow in penetration, while the importance of changes in specific loyalty measures depends on market conditions.

This research extends past research on brand growth to the very different economic, geographic and cultural conditions of three crucially important emerging markets. Its main value lies in recommendations on how much to invest in building the size of the customer base vs consumer retention.

Calculating brand equity, the price differential that a branded product is able to charge compared to an unbranded equivalent, often suffers from a lack of a means to truly determine equivalence. Luxury wines have the benefit of an established measure of equivalency – the Parker score. Robert Parker’s influence as a tastemaker provides a point of comparison across brands. This study looks at brand equity of Bordeaux classified growth wines considering château brands, growths and vintages to illustrate the intangible value for the consumer.

Using price and wine-specific data from Wine-Searcher.com, an online database and search engine, an initial sample of 393 wines with Parker scores ranging from 72 to 100 is presented. A subset of perfect wines, with 100-point Parker scores, is also reviewed focusing on the great vintage of 2009.

The results indicate that brand equity in the luxury wine market exists. Not only is this true for the brand of a specific château, but there is also equity associated with the vintage and the growth.

This offers practical implications for brand managers in positioning their wines.

An analysis of luxury wines supports the financial perspective on brand equity, especially when there is a viable means of determining equivalence, such as the Parker score.

The term ‘strategy’ is one of the most frequently used terms in business, and its application in marketing is particularly common. Company strategy, market strategy, marketing strategy, sales strategy, promotion strategy, distribution strategy, low pricing strategy – it would take a long time to list all of them. Although this term is so commonly in use, its definition is not as straightforward and it can be interpreted in different ways. In comparison with tactical decisions, strategy is much more significant for an organisation as it brings long-lasting consequences. It is implemented by higher level managers on a regular basis, and it is based on external, often subjective information, so decisions – especially at the time they are made – are difficult to evaluate.

Taking into consideration the fact that strategy refers to a long-term rather than a short-term period, strategic decisions serve as the basis for undertaking operational activities. However, marketing refers to the market and the competition. It is possible to claim that marketing strategy is trying to find an answer to the question to which path an organisation should follow in order to achieve its goals and objectives. If, for example, a company has a goal to generate a profit of PLN 1 million by selling 100,000 pieces of a product, the market strategy should answer at least the following two questions:

1. Who will be our target group, for example, who will purchase the 100,000 pieces of the product?

2. Why is it us from whom a potential buyer should purchase the product?

Who will be our target group, for example, who will purchase the 100,000 pieces of the product?

Why is it us from whom a potential buyer should purchase the product?

The target market will be defined if a reply to the first question is provided. The second question identifies the foundations of competitive advantage. These two issues, that is, target market and competitive advantage are the strategic marketing issues. You cannot change your target group unexpectedly while competitive advantage is the basis for changing decisions regarding prices, promotions and sales.

This chapter describes the measures of marketing activities which refer to strategic aspects and testify a company’s market position – the measures of the performance of target groups and competitive advantage. Readers’ attention should be also focused on the indices that are less popular in Poland and, therefore, may be underestimated. It seems that some of them, for example, the index of marketing resources allocation and the marketing risk index, provide a lot of valuable information and, at the same time, make it possible to show the value of marketing investments. Their wider use in the near future is only a matter of time.

A case study is given of International Distillers & Vintners (UK) Limited (IDV (UK)) and an assessment made of the viability of translating theory into practice in the real world – the importance of having a strategy, of strategic planning, and having a success factor as a key component of an organisation′s competitive advantage. Following the appointment of a new managing director at IDV (UK) in 1982, three goals were established: (1) to more than double profits within five years; (2) to increase return on capital employed by almost 50 per cent within five years; and (3) to be the outstanding wine and spirit company in the UK. A sound strategy was required to achieve these goals. The historic background of the organisation is given and the strategic position of IDV (UK) in relation to its competitors and market share is described. A review of the state of the market is given and possible areas for expansion discussed. The quality and pedigree of certain brands and the quality and strength of leadership are proposed as the success factors upon which IDV (UK) could build. Details are given of how the organisation built upon these factors to achieve strategic success; the lessons learned; and the level of achievement and success in the marketplace.

Looks at which brands are best positioned for growth and why it is important to actively manage brands as a cohesive portfolio.

Lists four key principles that the best practitioners of brand portfolio management should follow.

The best practitioners of brand portfolio management follow four key principles: push sleeper brands to their full potential; launch new brands or acquire strategically; rationalize overlapping brands; shut down the weakest brands.

Provides managers with guidelines for managing brand portfolios.

Of particular benefit to strategic planners, CEOs, senior executives, brand managers and marketing managers.

After completion of the case study, the students will be able to appreciate and understand why brands are an essential asset to the company and how they can enhance business value, understand the factors needed to grow brands in the growth stages and evaluate the choices that start-up companies have to grow their brand in competitive and growing markets.

Mamaearth was born as a direct-to-consumer brand in 2016 by a couple who could not find chemical-free, safe products for their child. The company that introduced as a baby-care brand soon consolidated itself to play in the space of personal care category (targeting millennials), and by 2020, it was earning majority of its revenue from skincare. It started by leveraging the power of social media space and online commerce and slowly moved to be a national brand with offline footprint and mass-media communication. In its growth journey, it acquired many brands and launched a few to cater to the specialized needs of its target audience. As the company grew, attracted impressive investors and started clocking profits, it aspired for an initial public offering (IPO). Varun and Ghazal Alagh, the founders of Mamaearth, knew that to refloat an IPO and to grow the company further, they needed to redefine their portfolio and marketing strategy. They had a choice to either invest in building a broader portfolio – organically or inorganically – or expand across geographies. Both were an option, albeit expensive, which could cost Mamaearth its profitability.

This case is intended for discussion in undergraduate and graduate management courses.

Teaching notes are available for educators only.

CSS 8: Marketing.