Growing up and growing out: why good marketing is essential for mid-sized business growth

PureGym, Ocado and Pret a Manger: Three great examples of successful companies that made the jump from mid-sized business (MSB) to full blown enterprises. Today, growth sits firmly at the top of the business agenda for MSBs across Europe. For many, this is a case of both growing up (new products) and growing out (new geographies).

New Ricoh commissioned research reveals some interesting stats to support this. For example, 52% of MSBs that don’t trade across borders today plan to do so in the next two years. Similarly, in growing markets such as Russia, 51% of MSBs are focused on launching new products and services. Both of these are proven strategies for growth but require significant support from marketing departments to ensure that brand identity is communicated effectively as the company grows.

As MSBs expand their range of products and services they must regularly redefine – or even reinvent – themselves. 70% say they intend to move their business into new sectors. If that means they now sell more services than products for example, how useful is it to be known as a product company? The point here is that it is impossible for a business to embrace meaningful change and growth without clear, coherent and consistent story telling.

Ultimately, it is the responsibility of the marketing department to communicate where the business wants to go. This direction must align with external forces in order to address pressing customer needs in these new markets. That’s why the marketing department has to be the nerve centre of the business.

By redefining as they grow MSBs can capitalise on trends and opportunities that would have previously been out of reach. This allows them to tap into new revenue streams for further growth.

There is no doubt that Europe’s MSBs are ambitious; 40% plan IPOs and 12% aim to acquire another company in the near-future. But in order to do either of these things a company must be confident in its identity, purpose and place in the market. Good marketing materials are essential for supporting a business as it grows and communicates its new identity. Failure to put the marketing department centre stage could see MSBs simply exist rather than excel.

If you’re interested in finding out more about the Middle Child Syndrome research, check out this great infographic that examines the findings.