Globalization has made the business world competitive like never before. The concept of building a long-term brand is emerging rapidly over time. Proper mechanisms, tools, or techniques were absent from branding used today. Businesses are continuously working to gain an edge over their competitors in the market. However, finding the proper mechanism of brand strategy and brand communication is difficult to attain. There are differences in the approach to branding between developed and developing countries. Small businesses in developing countries face challenges sustaining and succeeding in the market. This study shows how brand strategy and communication help build brand equity in Kathmandu Metropolitan City, Nepal. The researcher conducts qualitative research to explain how small businesses and entrepreneurs use branding concepts and mechanisms in Kathmandu. The study sketches the significant variables such as traditional and cultural values, unstable market, limited resources, growing technological access, availability of duplicates, and growing middle class which highly influence the brand strategy and brand communication approach. Such variables provide both challenges and opportunities to small businesses. The key issues with creating brand equity and value in developing and underdeveloped countries are intended to be generalized by this study. Keywords: Branding, Brand Strategy, Brand Communication, Brand Equity, Developing Countries, Variables