1. BRAND-BUILDING
IS THE KEY TO
ENHANCING AN SME'S
COMPETITIVENESS
AND PROFITABILITY
“A brand is the intangible sum of a product's attributes:
its name, packaging, and price, its history, its reputa-
tion, and the way it's advertised.”
David Ogilvy

2. Malta has been experiencing rapid economic change. Various sectors, such as
financial services, IT and tourism, have undergone greater development and have
attracted an increasing number of overseas brands to relocate to or tap into the
Malta market. In a business environment filled with opportunities and challenges,
brand-building may be the direction SME’s need to take to enhance their com-
petitiveness in Malta. Ogilvy Malta, part of Ogilvy & Mather Worldwide, is a
branding company with an expertise in niche markets.
BUILDING YOUR BRAND
TO BE MORE COMPETITIVE
A brand is a product, service, or concept that is
publicly distinguished from other products, services,
or concepts so that it can be easily communicated
and usually marketed. A brand name is the name of
the distinctive product, service, or concept. Brand-
ing is the process of creating and disseminating the
brand name. Branding can be applied to the entire
corporate identity as well as to individual product
and service names.
A brand is a symbol, a means to differentiate one
product from another. The implied “message”
lurking behind the brand includes company image,
the quality of the product and a promise of perfor-
mance. The function of a brand is to position the
enterprise in the consumer’s mind. After the brand
is established, it will not only retain long-term
customers but also attract the interest of potential
customers, thereby effectively enhancing the com-
petitiveness of the enterprise.
Most local people think that brand-building
requires extensive capital and technology which is
the approach generally taken by blue chips. As
SME’s are mostly small and working with scarce
resources, the approach taken to brand-building is
also very different. In fact, by authentically express-
ing their brand identity and adopting an adjusted
mechanic to brand-building through easy-step
development in a moderate and modular manner,
taking a step at-a-time towards its goal, SME’s can
also build their own valuable brands for stronger
sales and better business performance.

3. 3 STEPS TO BRAND-BUILDING
FOR MALTA’S SME’s
1. LEVERAGE STRENGTHS THROUGH CORE VALUES
Brand building is a never-ending on-going process. from overseas brands on the strength of the Island’s
In David Ogilvy’s view SME’s should prepare a heritage. Brand Malta is a resource that belongs to
long-term plan before establishing a brand and the all of us and we should feel free to make use of the
plan should be implemented in stages. Firstly, pillars that comprise that brand, namely - Heritage,
SME’s should identify the core value of the brand, Hospitality and Diversity. For instance, The Xara
as brands can be classified as product brands, Palace Relais & Chateaux in Mdina has a Maltese-
service brands, consumer brands or corporate fusion restaurant called de Mondion that portrays
brands. The SME should first define the nature of itself with a luxury image and makes use of the
its product and service and identify its major target noble history of the citadel that infuses both the
consumer group before it can customise its strategy cuisine and the theme of the restaurant. The success
to meet customer demand. Malta’s SME’s are in building its style and image has turned the
mainly involved in the service sector and since restaurant into a major tourist attraction. Recently,
customers nowadays attach great importance to The Xara Palace Relais & Chateaux was named one
“experience spending” or “retail therapy”, seeking of the top 10 castle hotels in the world by Fox News,
a form of satisfaction in the course of consumption, and this accolade follows features in Condé Nast's
therefore, it is suggested that local SME’s should Vanity Fair, The Wall Street Journal, Diplomat
start with building their brand in service. Magazine, and visits by celebrities such as Brad Pitt
Compared to the large enterprises, SMEs also and Angelina Jolie, Sharon Stone, Orlando Bloom,
have some advantages when building a service Jennifer Anniston, Bruce Willis, Simply Red's Mick
brand. For instance, the small size allows for fast Hucknall, Josef Calleja, Lucio Dalla, Rupert
decision-making and higher flexibility, enabling the Everett, and a raft of VIP's, politicians, entrepre-
company to make prompt strategic adjustments in neurs, business leaders and other prominent figures.
response to customer demand. Local SME’s can Not bad for the smallest hotel on the Islands, with
make use of Malta’s abundant cultural resources by only 17 rooms! All their success is built on leverag-
making its own brand into a unique style different ing their brand.

4. “If it doesn't sell, it isn't creative.”
David Ogilvy
2. COPYRIGHT PROTECTION
Being creative means pushing the standard higher, of trademark protection and eliminate the possibili-
moving towards the new, the never-thought-of. This ties of trademark pirating. Malta has very reason-
form of “innovation” helps drive differentiation and able administration fees for various industrial
competitive advantage through ownership of property registrations including those for trade-
defined brand assets, such as original designs for marks and patents, as a measure to encourage
logos, high-quality communication, distinctive enterprises to explore intangible assets. This type of
advertising with higher production values, authen- brand-building and brand protection help the SME
tic and original photography, and various other to develop ownership of their market through the
intangible assets. Brand building requires the recurrent revenues enjoyed by the brand. Integrity
well-crafted design of a brand namestyle and is an important foundation of SME brand develop-
identifier of the product and services involved – ment and allows a believable and engaging brand
normally a bundle of the two. An outstanding piece promise to emerge and be maintained by the
of design development or a clever brand name can business for longterm revenue harvesting. A
draw the attention of a great number of consumers, relatively recent Maltese start-up to recognise the
raise the value of the product and services and importance of brand protection is the new smoothie
become an important asset of the enterprise. brand Dr. Juice, which now operates 7 outlets and
Therefore, SME’s should increase their awareness has expanded their brand franchise to Italy.

5. 3. TURNING BRANDING TO COMPETETIVE ADVANTAGE
When engaging in promotion and marketing, local into the most profitable IT business in Malta. Their
SME’s usually cannot invest substantial amounts in effective use of trade fairs, collaterals, editorial
a large advertising campaign. Maltese SME’s, features in trade journals and exhibition catalogues
however, may still publicise and promote themselves together with dedicated commitment across digital
through other effective channels. For instance, by channels has been instrumental in establishing their
participating in international exhibition activities brands as credible alternatives in international
through the delegations regularly organised by markets, backed by Maltese entrepreneurial flair.
Malta Enterprise, FinanceMalta, Malta Tourism Ascent’s success is proof that Maltese SME’s can
Authority and other entities as well as taking part in compete successfully in international markets and
overseas exhibitions which may help to increase the develop those markets to serve their base in Malta,
exposure of their products and also provide an creating local employment and earnings derived
opportunity for SMEs to exchange views with from outside the local economy. By quickly master-
overseas counterparts and gain inspiration for new ing new opportunities in the social media sphere, it
ideas. Local SME’s therefore can seize the opportu- is possible for brands to have a reach, and to build a
nity to take part in various activities and market responsive network of suppliers, staff, customers
their products to overseas trade visitors, source and stakeholders which put the SME-brand centre-
business partners and buyers and explore new stage at a fraction of the cost involved in traditional
markets. Ascent Software in Luqa has taken this media channels such as television, newspapers
approach for the last 7 years and has built a portfo- or radio.
lio of international brands which have turned them
“You now have to decide what 'image'
you want for your brand. Image means
personality. Products, like people, have
personalities, and they can make or break
them in the market place.”
David Ogilvy

6. SME BRANDS ARE
ABOUT BUILDING AND
DELIVERING VALUE
The small business defines Malta’s economy. We
are almost all operating small businesses. We are
not alone. More than 99% of all European
businesses are Small and Medium Enterprises
(SME’s), and these have been especially hard hit
by the tightening of credit and the weakening
economic outlook. All economies within the EU
are completely dependent on SME‘s represent-
ing around 95% of each Member State economy.
If you are the owner of a small business, you may
have wondered about the necessity of branding
your small business.
Creating a brand identity is absolutely crucial
especially if you are competing in a market that
is saturated with other busi- nesses selling the
same product or service as your business does.
The Maltese SME ‘brand’ is beginning to
emerge and is a combination of quality and Source:
mark or sign. By making full use of their own Confessions of an Advertising Man (1963), David Ogilvy
Blood, Brains and Beer (1978), David Ogilvy
unique features, wisely using resources and Ogilvy on Advertising (1983), David Ogilvy
strengthening competitiveness, their brands will Ogilvy & Mather The Red Papers:
be built up gradually to deliver higher value. Learning to Read the River
Audiences now expect brands to be online and Ogilvy & Mather The Red Papers: What’s the Big Ideal?
small businesses can use the internet and social Ogilvy & Mather The Red Papers: Socialise the Enterprise
media to their advantage, increasing brand Author: Edwin Ward, Creative Director at Ogilvy Malta
awareness and extending reach on a national or Contact Edwin at edwin@ogilvymalta.com
international scale. If you are a small business www.ogilvymalta.com
owner you will no doubt want to spend your
marketing resources where they will have the
greatest impact – on developing a brand and
taking care of your customers and your commu-
nity. Every business wants to be a customer's
first choice. Building and managing a brand can
play a significant part in achieving that goal.
Important Notice: All information is for reference only. While every effort is made to ensure the accuracy of informa-
tion, Ogilvy Malta will not be held responsible or be liable for failing to guarantee the accuracy of any information
provided, nor for any damage caused by inaccurate information or omissions.