Evaluation of the effectiveness of positioning strategies on consumer choice
Abstract
This study aimed at determining effectiveness of various positioning
strategies on customer choice in the detergent industry in Kenya. The study was
grounded on the detergents market and it sought to determine primarily how the
detergent consumption choice had been impacted on by the positioning strategies
adopted by the various detergent brand sponsors, and also evaluate possible
responses to other positioning strategies not yet adopted in the detergent market.
The rationale for the study was to derive knowledge and provide evidence
in order of importance of the choice criteria of consumers towards detergents and
how this related to the various positioning strategies adopted by the detergent
brand sponsors. The answers to the study would by extension answer the brand
sponsors dilemma on which positioning strategies to use to get favorable
consumer choice.
The objectives of the study were to determine the effectiveness of
various positioning strategies on consumer choice and to rank the various
positioning strategies based on level of importance in influencing consumer
choice. The population of interest was the Nairobi middle class estates chosen to
eliminate influence of price in Brand choice. Segmentation and choice of sample
population was based on perceived income levels and by social class with average
house rent rate being an indicator of the class level. The sample population
consisted of 1-0-0 respondents segmented into three income segments based on rent
levels. The distribution of the respondents in the sample population segments
were 36 respondents in the lower middle, 34 respondents in the middle -middle
and 30 respondents in the upper middle. A list of Nairobi residential estates with
rent levels within the segments of upper middle, middle and lower middle income
( see appendix IV and appendix V) were identified and used to select the sample
population. Ten estates were selected randomly from each segment and
households were then selected from each selected estate. The stratified random
sampling was done such that each of the estates got an equal chance of being
selected. The respondents were selected using a recruitment guideline (see
appendix VI) . A structured questionnaire was used to collect the data. The
method of collection was personal visits and interview with the research assistant.
The questionnaires were screened, coded and edited for completeness using SPSS
statistical package. The data was cross-tabulated, ranked and correlated to derive
the research findings.
Positioning by product benefit was found to be the most important
positioning strategy in influencing consumer choice. Positioning by competitor
ranked amongst the least important positioning, with number one detergent and
better than others, ranking amongst the least important in influencing consumer
choice. These findings support why product benefit positioning is widely used in
detergent industry and gives credence to Aaker (1996) assertion that the most
used positioning strategy as the association of an object with the product
characteristic or customer benefit. The second most effective positioning
strategies were based on price quality value positioning which is positioning by
price strategy. Positioning by price quality value is very effective in influencing
consumer choice scoring a median rank of 2, which is very effective in
influencing Consumer choice. Economy in use, which is positioning strategy
based on product usage, was the third most effective positioning strategy in
influencing consumer choice on the broader positioning strategies. Product
attribute positioning strategies like positioning by product colour and positioning
by sweet smelling perfume were considered only as effective in influencing
consumer choice whereas, another product attribute positioning by using
presence of special ingredients and of enzymes was considered as least effective
in influencing consumer choice.
Positioning by competitor by directly making comparisons in this case
positioning by claiming to be better than others was found to be least effective in
influencing consumer purchase. Positioning by product user was found to be least
effective in influencing consumer use scoring a median of 4. However this finding
could be skewed by the fact that few people admit to be influenced by others in
making their decisions. Products which have already built strong relation with the
consumer on stain removal, color care and gentleness on fabric should maintain
their positioning on these fronts and avoid migrating their positioning to non
effective positions such as positioning on competitor and positioning on product
attributes
There was no significant correlation between the consumer's income and
the effectiveness of various positioning strategies in influencing consumer choice
VIII
which implied that the findings of the research can be replicated in the upper and
lower income population without significant changes in findings.
The research has successfully explored the effectiveness of positioning
strategies on consumer choice in the detergent market within the limitations of
time and cost. Similar studies should be conducted in the mobile phones, paints,
beverage; cosmetics, Toothpaste, banking and other industries to get a broader
appreciation of how various positioning strategies influence consumer choice.
Citation
A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of NairobiPublisher
Business Administration