Namrata Kath Hazarika | 05 Dec, 2012
In an exclusive interview with SME Times, Deepak Kaistha - CEO, PowerBrands India said they are organising an event in Las Vegas, USA that will highlight the untold success stories of brands that started from scratch and have proved their mettle in the last five years. Participating in the event will help SMEs international brand image, stability, sustainability, and credibility.
Excerpts of the interview...
Tell us about the concept of PowerBrands Glam 2013? What are the objectives behind this initiative?
Deepak Kaistha: Planman Media is determined to applaud the men and women who have worked rigourously to weave and deliver Brand India. PowerBrands Glam 2013 is just a perfect stage. It is a three-day brand carnival that will be held in Las Vegas, USA. PB Glam is a celebration of achievements that highlights the success of Indian brands and the personalities behind them. We aim to bring together pioneers and professionals from all walks of life, making the event a one-of-a-kind commemoration of Indian leadership on a global platform.
How participating in this event will help Indian SMEs expand their horizons and future growth?
Deepak Kaistha: Our aim is to facilitate a platform for new-age brands to leave a lasting impression on the market. Planman Media provides this support through its endeavour PowerBrands Rising Stars. It will highlight the untold success stories of brands that started from scratch and have proved their mettle in the last five years. Providing a next step in their growth, PBRS augments SMEs' international brand image, stability, sustainability, and credibility. By creating a distinct brand identity for Indian SMEs, it offers them a wider target audience, recognition beyond the boundaries of the country, networking opportunities, and an international exposure.
Do you think that Indian SMEs have not achieved much success at the international level compared to their global peers?
Deepak Kaistha: Comparing to their global counterparts, Indian SMEs still have many milestones to cover.
How much aware and active Indian SMEs are in promoting their brand both domestically and internationally?
Deepak Kaistha: In the business arena, it is a perception that only large organisations and MNCs need to build and maintain a strong brand. SMEs usually do not realise the importance of creating a solid brand name and image in their target markets. This needs to be changed. Indian SMEs should be more aware and proactive when it comes to promoting their brands in both domestic and international markets.
What steps an SME should take for brand promotion? How the strategies differ at domestic and international levels?
Deepak Kaistha: Branding is all about differentiating one's products from others by grasping the attention of consumers. A small and medium enterprise should emphasise on strengthening its brand by positioning itself as an apt solution provider to its customers' demands. It should highlight its core values, promising their customers a certain level of quality. In a long run, branding aims to create the brand loyalists for a company.
By moving into foreign markets, multinationals standardise their branding activities to achieve a level of economies of scale and scope. To be profitable, they adapt to local cultures and preferences. Such companies need take decisions pertaining to the markets they will target, modifying or continuing their product line, and so on. Their branding strategies have to maintain their competitive edge, and offer value-added benefits.
SMEs usually find it difficult dig deep into promotional activities due to their tight budget. How can they overcome this challenge?
Deepak Kaistha: It is a fact that due to financial constraints, not many SMEs invest on marketing of their products. First, they need to understand that irrespective of the size of a company, every enterprise must indulge in the brand and product promotional exercises. It is not a luxury but a necessity. It can be a fatal flaw if a company chooses to ignore it. Depending on their capacity, firms can spend certain amount on the promotional activities. In addition, the government should formulate policies to provide monetary aid to SMEs. As these firms have a good track record of fetching high margins, RBI should encourage banks to lend more funds to them.
What qualities in a small business entrepreneur do you think key to success?
Deepak Kaistha: Leadership plays a vital role in a company's success. A small enterprise leader should be zealous in motivating his employees or team, fostering the firm's growth. From time to time, he should show confidence in them, and encourage them to do their best. He should assign tasks in accordance to one's capabilities. When it comes to determination and dedication towards the work, he should present himself as a role model. His employees should learn from his example. He should be approachable to his employees and understand their opinions and insecurities.
What is your view on future prospects of the Indian SME sector?
Deepak Kaistha: If not provided with a proper ecosystem, the future of Indian SMEs doesn't seem much bright. These companies face challenges in the form of raising capital, corruption, low knowledge of expansion and modernisation opportunities, infrastructural bottlenecks, and low-production capacity. To increase the productivity of small and medium enterprises, the government should include this sector in the broader national development agenda. These firms should be provided with an adequate support and tools to increase their growth figures.
