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Brand Building in Clusters to Improve Competitiveness of Msmes”

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Brand Building in Clusters to Improve Competitiveness of Msmes” 2 “Brand Building in Clusters to Improve Competitiveness of MSMEs” 3 “Brand Building in Clusters to Improve Competitiveness of MSMEs” Acknowledgement Foundation for MSME Clusters (FMC) wishes to express its gratitude to ICC Division of SIDBI for providing us with a prestigious opportunity to work on the policy study on “Brand Building in Clusters to Improve Competitiveness of MSMEs”. The team is thankful for the support that it received from Dr. R.K. Singh, DGM, Mr. Dev Kumar, Manager and Mr. Ashim Baidya, Asst. Manager of SIDBI who encouraged and guided the entire process of conceptualization and planning of the study through strategic advice. Our special thanks to Mr. Ajay Kumar Kapoor, CGM, Mr Anand Prakash Srivastaav, DGM and Mr. Rajesh Khandelwal, Manager of SIDBI for their valued inputs on the findings of the study and their support to produce the report. We place on record, our sincere gratitude to all the key stakeholders, especially the BMO representatives from various clusters in India and from various other countries for their support in getting information from the clusters. Our special thanks to Mr Fabio Ruso and Ms Daniela Lazzo of UNIDO, Vienna for their constant support and inputs in getting right information for international case studies. The study within FMC was coordinated by Ms Sangeeta Agasty under the guidance of Mr. Mukesh Gulati, the Executive Director of FMC. This study would not have been possible without constant support, valuable inputs and able guidance from Mr. Gulati. Analysis of international case studies and potential national cases was done by a team of high calibre cluster experts comprising Mr. ASK Sharma, Mr. Vibhas Mandal, Dr. Debnirmalya Gangopadhyay, Ms Pooja Khare, Mr. Sagnik Lahiri, Mr. Sourav Gargav, Mr. S. Venkatramanan, Mr. S. Thyagarajan, Mr. Viswanathan and Ms Sangeeta Agasty. Our special thanks to all these experts for supplying right information for the study. We are also grateful to the Marketing and Branding Expert Mr. Abhay Ekbote and Senior Cluster Expert and Director of FMC, Dr. Tamal Sarkar for their valuable inputs and needful support in the study. The team would also like to thank Mr. Amit Tyagi, Mr. Rahul Bhalla and Mr. Atul Mishra for their administrative support for the study. We sincerely believe that this report serves the purpose that it intended to. The document has not been formally edited. The authors bear all responsibility for the facts presented, errors and omissions as well as value judgments passed, if any and the views expressed does not necessarily be the views of either FMC or SIDBI. Ms. Sangeeta Agasty, Project Coordinator Foundation for MSME Clusters, New Delhi 4 “Brand Building in Clusters to Improve Competitiveness of MSMEs” 5 “Brand Building in Clusters to Improve Competitiveness of MSMEs” List of Abbreviations ABICALCADOS Brazilian Association of Shoe Manufacturers ABRAMEQ Brazilian Association of Machinery and Equipment Sectors Leather, Footwear and Related Products AICSUL Tannery Industries Association of Rio Grande do Sul AOV Valenzano Goldsmith Association APPEAL Apparel Exporters‟ Association of Ludhiana ASSOPIASTRELLE National Association of Tile Manufacturers ASSINTECAL The Brazilian Association of Companies of Components for Leather, Footwear BDS Business Development Services BDSP Business Development Service Provider BHELSIA BHEL Small and Medium Industries Association BMO Business Membership Organisation BPO Business Process Outsourcing CBE Community Based Enterprises CCIAA Chamber of Commerce CCP Communist Party of China CFC Common Facility Centre COTEX Consortium of Textile Exporters CST Central Sales Tax DCC Danish Competition Council DKK Danish Krone DKMA Danish Medicines Agency EU European Union EUR Euro FMC Foundation for MSME Clusters FY Financial Year GDP Gross Domestic Product GI Geographical Indicator 6 “Brand Building in Clusters to Improve Competitiveness of MSMEs” GPP Good Pharmacy Practice HAP Hotel Association of Puri I International ICE National Trade Association ICT Information Communication Technology IEPI Ecuadorian Institute of Intellectual Property ILO International Labour Organisation ISO International Organization for Standardization IT Information Technology ITES IT enabled services ITO International Trade Organisation ITPL International Tech Park Ltd. KAMAL Knitwear and Apparel Manufacturers Association of Ludhiana L Local MoU Memorandum of Understanding MSME Micro Small and Medium Enterprises N National NASSCOM National Association of Software and Service Companies NDTV New Delhi Television Limited NITEE Network of ICT Entrepreneurs and Enterprises OPC OTOP Product Champion OTC Over-the-Counter OTOP One Tambon One Product PDO Protected Denomination Origin PEM Personal Electronic Medication Profile POM Prescription-Only-Medicines R&D Research and Development RMB Renminbi SIDBI Small Industries Development Bank of India SME Small and Medium Enterprise SPV Special Purpose Vehicle 7 “Brand Building in Clusters to Improve Competitiveness of MSMEs” STAS Treviso Sportswear Society STPI Software Technology Parks of India SWOT Strength Weakness Opportunity Threat TAO Tambons Administrative Organizations TFP Talegaon Floriculture Park TISI Thai Standards Institute TV Television UK United Kingdom UN United Nation UNIDO United Nations Industrial Development Organisation US Untied States U.S.A United States of America USD United States Dollar USP Unique Selling Proposition WIPO World Intellectual Property Organization WTO World Trade Organisation 8 “Brand Building in Clusters to Improve Competitiveness of MSMEs” 9 “Brand Building in Clusters to Improve Competitiveness of MSMEs” Table of Contents 1. Introduction ......................................................................................................................................................................................... 11 1.1) MSME Clusters ...................................................................................................................................................................... 17 1.2) Cluster Based Branding-The Context ........................................................................................................................... 18 2. Methodology of the Study ............................................................................................................................................................... 19 2.1) Identification of International Branding Cases ....................................................................................................... 19 2.2) Identification of National Branding Cases ................................................................................................................ 20 2.3) Methodology for the Study ............................................................................................................................................... 24 3. Brief Summary of the Sample Selected ..................................................................................................................................... 28 3.1) International Cases ............................................................................................................................................................. 28 3.2) National Cases ...................................................................................................................................................................... 31 4. Learning from International Cases ............................................................................................................................................ 33 4.1) Developing Branding Strategy ....................................................................................................................................... 33 4.4.1) Understanding the USP.................................................................................................................................................. 33 4.1.2) Market Segmentation, Targeting and Positioning ............................................................................................. 34 4.1.3) Modifying Product Line as per Market Demand .................................................................................................. 34 4.1.4) Vertical Integration, Subcontracting and Efficient Division of Work ......................................................... 35 4.1.5) Integration of Production to Marketing ................................................................................................................. 35 4.1.6) Product Differentiation through Continuous Innovation ................................................................................ 36 4.1.7) Product Mix ........................................................................................................................................................................ 36 4.2) Role of Business Membership Organisations (BMOs) ............................................................................................ 38 4.3) Clusters Attracting Global Brands ............................................................................................................................... 40 4.4) Role of Policy ......................................................................................................................................................................... 41 4.4.1) Creating and Promoting Brand .................................................................................................................................
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