Regional Branding: Cooperation as the Way Forward for Small Local Business Enterprises in the Czech Republic

By Roberto Bergami and Iveta Pavezova.

Published by The International Journal of Knowledge, Culture, and Change Management: Annual Review

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Producers usually face two main problems: one is the standard product glut caused by too many products in the market, and the other is the marketing communication channels’ competition to attract consumer interest to generate demand. Under these circumstances, it is not surprising that approximately 80 percent of brands decline almost immediately after their introduction and a further 10 percent decline within the first five years. In general, only one out of ten brands has a chance of long-term survival. To increase the chances of brand survival, some companies use a cooperative approach with a number of possible alternatives. As examples, in horizontal co-operation, several shops may build a common car park to attract more customers, and in vertical co-operation, entrepreneurs from logistically challenging areas co-operate with each other by aggregating their demand though one supplier. The degree of co-operation may also extend to brand management, but this degree of sophisticated co-operation can only occur over time once a degree of trust and mutual benefit is evident. Brand cooperation is commonly used both at the vertical and horizontal levels.
The aim of this paper is to consider and discuss data gathered through semi-structured interviews with indigenous small businesses in the Czech Republic on their attitudes towards cooperation at the local level. The paper concludes that there is some evidence towards brand management cooperation, but that this is limited by a number of business factors.

Keywords: Co-operation, Cobranding, Local Business, Small Business, Czech Market, Brand Management

The International Journal of Knowledge, Culture and Change Management: Annual Review, Volume 12, 2012, pp.39-52. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.358MB).

Dr. Roberto Bergami

Visiting Professor, Victoria University, Melbourne, Australia

Roberto has over twenty years’ experience in the manufacturing industry, primarily within the pharmaceutical sector. He held a number of roles with an international focus in finance, sales, marketing, customer service and logistics. Roberto’s teaching spans over twenty years with experience in Higher Education, TAFE (VET) and private education providers. Currently a Senior Lecturer in the School of International Business at Victoria University, Melbourne, Australia, an Associate Researcher in the Centre for Strategic and Economic Studies and the Centre for Cultural Diversity and Wellbeing. Roberto holds a Master in Education, a Master of Business by Research (Applied Economics) and a Ph.D. Roberto is a Visiting Professor at the Faculty of Economics, University of South Bohemia, Ceske Budejovice, Czech Republic. Roberto has maintained his involvement with industry through a number of peak associations where he enjoys various grades of senior level membership. In 2002 Roberto received the State of Victoria Quarantine Award for his efforts in educating students in quarantine matters. Roberto’s main areas of research interests in international trade focus on government regulations; delivery terms (Incoterms); international payment terms; and market entry barriers. Other research interests include professional development of cademics/teachers, the development of communities of practice, online teaching and online communities, migration from Emilia-Romagna (Italy) to Australia and teenage/youth dialect.

Iveta Pavezova

Lecturer, Department of Trade and Tourism, Faculty of Economics, University of South Bohemia, Ceske Budejovice, Czech Republic

Iveta has studied Managing Business Administration at the University of South Bohemia for 5 years. After completing her studies she spent sixteen months in the UK to improve her language skills and get some experiences in the field. During that time, in 2007, she entered the doctoral studies at Faculty of Economics, University of South Bohemia. She is expecting to finish her PhD in the first half of 2013. Her thesis is focused on Regional branding. Iveta has practical experience with SMEs for a period of 11 years, which she is able to bring into her teaching at the Faculty. She teaches Marketing communication in Czech and English languages, as well as Marketing research and Brand anagement. Iveta is gaining a reputation through undertakíng project work for educational establishments and other external organisations.