BRAND DIFFERENTIATION AND POSITIONING FOR MAXIMUM COMPETITIVE ADVANTAGE (A STUDY OFDANGOTE NOODLES)

BRAND DIFFERENTIATION AND POSITIONING FOR MAXIMUM COMPETITIVE ADVANTAGE (A STUDY OFDANGOTE NOODLES)

ABSTRACT  

In the market place, no company can win if its market offering resembles every other company’s product. Companies must pursue relevant positioning and differentiation. As part of branding strategy, a company and its offering must represent a distinctive big idea in the mind of the target market. Once a company has decided which segments to enter, it must decide on its differentiation and positioning strategy, a company can differentiate its offering between segments and within each segment it can differentiate its offering from the comp+0-etition. By a creating a differential advantage over the competition, a company is giving the customer a reason to buy from them rather than from the competition because a company with a differentiated marketing strategy can produce more sales. The differentiation concept must be understood for effective positioning of a company’s offering.

The differentiation and positioning task consist of three steps; identifying a set of possible differentiations that create competitive advantage, choosing the right competitive advantages, and selecting an overall positioning strategy. A company may choose to differentiate its product in terms of durability, price, quality, or in relation to a competitor. Success in positioning requires a well researched plan.

This research is aimed at identifying the various strategies which firms can use in other to gain maximum competitive advantages while differentiating and positioning its product in the market place.

The objective of the study is as follows; to determine the effect of brand differentiation on a company and on its product, to identify how a company differentiates and positions its product against that of competitors, identify the best differentiation and positioning strategy for greater competitive advantage and to identify whether there is an increase in sales volume of a well differentiated and positioned product.

The research questions to be adopted in this research work are as follows;         to what extent does brand differentiation and positioning affect a company and its product? How does a company differentiate its product from that of competitors? What differentiation and positioning strategy will give a company maximumcompetitive advantage? Does differentiation and positioning increase the sales of a company?The significance of this research work will be to benefit the company in identifying the most effective differentiation and positioning strategy for increasing sales performance.

This research is focused on brand differentiation and positioning for maximum competitive advantage in the market place using as a case study, Dangote Noodles limited.

In conducting this research, the survey method, use of questionnaire to gather data from respondents in some of the departments in Dangote Noodles Limited Ebute Ikorodu town of Lagos, while the secondary sources of data will include instruments such as review of past projects, relevant journals, textbooks and materials from the internet. 

TABLE OF CONTENTS PROJECT TOPICS  CHAPTER ONE: Introduction              

1.1      Statement of the Problem  

1.2      Objective of the Problem  

1.3      Research Questions        

1.4      Research Hypothesis      

1.5      Significance of the Study

1.7      Scope and Limitation of the Study

1.8      Definition of Terms

CHAPTER TWO: Literature Review

2.1      Historical Background

2.3      Current Literature Based On the Models

CHAPTER THREE: Research Methodology

3.0      Introduction

3.1      Restatement of the Research Question and Hypotheses

3.2      Research Design

3.3      Characteristics of the Study Population

3.4      Sampling Design and Procedures

3.5      Data Collection Instruments

3.6      Administration of Data Collection Instrument

3.7      Procedures for Processing and Analysing Collected Data

3.8      Research Limitations

CHAPTER FOUR: Presentation and Analysis of Data

4.1      Data Analysis

4.2      Presentation of Data

4.3      Testing Of Hypothesis

CHAPTER FIVE: Summary, Recommendation, and Conclusion

5.1      Summary of finding

5.2      Recommendation

5.3      Conclusion

REFERENCES

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND TO THE STUDY

Branding has been around for centuries as a means to distinguish the goods of one producer from those of another producer. To firms, brands represent enormously valuable pieces of legal property that can influence consumer behaviour, be bought and sold as well as provide the security of sustained future revenues of their owner. Well- recognized brands make shopping easier. Brand promotion has advantages for branders as well as customers. A good brand reduces the marketer’s selling time and effort and sometimes a firm’s brand name is the only element in its marketing mix that a competitor cannot copy. Also good brands can improve the company’s image- speeding acceptance of new products marketed under the same name. Thus branding can be seen as a powerful means to secure a competitive advantage.

Beyond deciding which segments of the market it will target, the company must decide on a value proposition, that is, how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments. Companies must pursue relevant differentiation and positioning, each company and its product must represent a distinctive big idea in the mind of the target market. Given the many brands available in the market place, a company must carefully consider both the strengths and the weaknesses of competitors when developing marketing strategy; this is to aid the product positioning task.

The differentiation and positioning task consists of three steps: Identifying a set of possible differentiations that create competitive advantage, choosing the right competitive advantages and selecting an overall positioning strategy. In essence, product positioning extends market segmentation by defining the market target that management intends the firm to penetrate. It establishes the segments at which the firm intends to focus its marketing efforts; this is the segments where the firm is most likely to have a competitive advantage.

Consumers are overloaded with information about products and services, to simplify the buying process, consumers organize products, services and companies into categories and “position” them in their minds. But marketers do not want to leave their product’s position to chance, therefore, they must plan positions that will give their products the greatest advantage in selected target markets and they must design marketing strategies to create these planned positions.

The key to superior performance is to gain and hold a competitive advantage. Firms can gain a competitive advantage through differentiation of their product offering which provides superior customer value or by managing for lowest delivered cost. These two means of competitive advantage when combined with the competitive scope of activities (broad or narrow), result in four generic strategies: differentiation cost leadership, differentiation and cost focus.

Differentiation strategy involves the selection of one or more choice criteria that are used by many buyers in an industry. The firm then uniquely positions itself to meet these criteria. Differentiation gives customers a reason to prefer one product over another. In order to create a differentiated position, a firm needs to understand the nature and location of the potential sources of competitive advantage. The nature of these sources are the superior skills- distinctive capabilities of key personnel that set them apart from the personnel of competing firms and the superior resources of a firm- tangible requirements for advantages that enable a firm to exercise its skills, it includes the number of sales people in the market, expenditure on advertising and sales promotion, distribution coverage, expenditure on research and development, financial resources, brand equity and knowledge. These skills and resources are translated into a differential advantage when the customer perceives that the firm is providing value above that of the competition.

The objective of positioning is to create and maintain a distinctive place in the market for a company and its products, but to compete successfully in a target market involves providing the customer with a differential advantage. This differential advantage can be created using the marketing mix;

Product: brands were differentiated based on product performance in areas of speed, comfort and safety levels, capacity and ease of use or improving taste or smell. Product development was a cornerstone of corporate activity, and continual product improvement was an acknowledged objective for any brand marketer. However, while companies still invest heavily in research and development and still seek a product performance edge wherever it can be found, it is a marketing maxim that differences in performance now are often minimal at best.

Distribution: Lacking meaningful product performance differences, marketers have traditionally emphasized another marketing resources; wide distribution coverage and or careful selection of distributor location to provide convenient purchasing for customers. In other words, products that are conveniently available will all other things being equal be chosen most often.

Promotion: The most commonly pursued marketing solution lies in the area of brand communications, advertising and promotions.

At a time when products perform in similar ways when availability differences are often minimal and when price differentiation may be only temporary, powerful advertising messages, creatively carving a sustainable and unique position in the minds of a receptive audience.

Price: Pricing has been another marketing tool often used to establish differentiation. The challenge, however, is how to “own” a real (or perceived) long-term price advantage. Short-term offers, deals, and price promotions can provide a brand an apparent price advantage and the appearance of differentiation. However, as the acknowledged goal of brand marketing is to build customer loyalty (i.e. not just trial, but repeat business), a short-term advantages or a temporary point of differentiation is simply not sufficient. Sustainable differentiation is required. If the sustainable differentiation is to be based on price, and is to be owned over time, the marketer must occupy the “low-cost provide” position. Thus, price as wellas product performance is not what differentiates these brands. So, price is what keeps customers coming back or keeps them from leaving. The end result of differentiation and positioning is however, the successful creation of a market focused valued position.

1.2      STATEMENT OF THE PROBLEM

A wide variety of brands that are similar in performance can make a company to find its brand in a difficult position in the market place. For companies, differentiation and positioning are seen as major methods of gaining competitive advantage over competitors.

The purpose of this research is to identify the various strategies employed by a company in the differentiation and positioning of its product that gives it a competitive advantage over competitors.

1.3      OBJECTIVE OF THE STUDY

The study will address the following;

Þ   To identify the effect of brand differentiation on a company and its product.

Þ   To identify the effect of positioning on a company’s product.

Þ   To identify how a company differentiates and positions its brand against competition.

Þ   To identify the differentiation and positioning strategies that gives the greatest competitive advantage.

Þ   To identify how differentiation and positioning affect sales of a firm.

1.4      RESEARCH QUESTIONS

Þ   Does differentiation and positioning increases a company’s sales revenue?

Þ   Does competition affect brand preference of consumers of noodles?

Þ   Which of the differentiation strategy gives a company the greatest competitive advantage?

Þ   How does a firm differentiate it product from that of competitors?

Þ   Does brand differentiation affect a company’s image?

1.5      RESEARCH HYPOTHESIS

Þ   H0: A company’s sales revenue is not affected by its differentiation and positioning strategies.

H1: A company’s sales revenue is affected by its differentiation and positioning strategies.

Þ   H0: Competition does not affect consumer’s brand preference.

H1: Competition affects consumer’s brand preference.

Þ   H0: Brand differentiation has no impact on a company’s image

H1: Brand differentiation has an impact on a company’s image.

1.6      SIGNIFICANCE OF THE STUDY

A number of significant changes have occurred over the past several years to identify the impact of brand differentiation and positioning in the market place. Brand differentiation and positioning today, has aided companies effectively enjoying maximum competitive advantage against its competitors in the market place.

The significance of this study is to benefit both the consumers and companies in identifying effective differentiation and positioning strategies that will lead to increase in sales revenue.

1.7      SCOPE AND LIMITATION OF THE STUDY

This research is focused on brand differentiation and positioning for maximum competitive advantage in the market place.

This research is limited to Dangote Noodles Limited, Ebute Ikorodu a subsidiary of Dangote Group.

1.8      DEFINITION OF TERMS

BRAND: This is a name, term, sign, symbol or design or a combination of these that identifies the goods or services of one seller or group of sellers and differentiates them from those of competitors.

DIFFERENTIATION: This is defined as the act of designing a sort of meaningful differences to distinguish the company’s product from products of competitors.

It involves actually differentiating the product to create superior customer value.

POSITIONING: Is defined as the act of designing the company’s product and image so that it occupies a meaningful and distinct competitive position in the target customers mind.

A product’s position is the way the product is defined by consumers on important attributes; the place the product occupies in consumers mind relative to competing products.

COMPETITIVE ADVANTAGE: This refers to a company’s ability to perform in one or more ways that competitors cannot or will not match.

It can also be defined as an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

.

Click Here To Get The Complete Project »

How To Write Chapter Three Of Your Research Project (Research Methodology)

  • Methodology In Research Paper


    Chapter three of the research project or the research methodology is another significant part of the research project writing. In developing the chapter three of the research project, you state the purpose of research, research method you wish to adopt, the instruments to be used, where you will collect your data, types of data collection, and how you collected it.

    This chapter explains the different methods to be used in the research project. Here you mention the procedures and strategies you will employ in the study such as research design, study design in research, research area (area of the study), the population of the study, etc. You also tell the reader your research design methods, why you chose a particular method, method of analysis, how you planned to analyze your data.

    Your methodology should be written in a simple language such that other researchers can follow the method and arrive at the same conclusion or findings.

    You can choose a survey design when you want to survey a particular location or behavior by administering instruments such as structured questionnaires, interviews, or experimental; if you intend manipulating some variables.

    The purpose of chapter three (research methodology) is to give an experienced investigator enough information to replicate the study. Some supervisors do not understand this and require students to write what is in effect, a textbook.

    A research design is used to structure the research and to show how all of the major parts of the research project, including the sample, measures, and methods of assignment, work together to address the central research questions in the study. The chapter three should begin with a paragraph reiterating the purpose of research. It is very important that before choosing design methods try and ask yourself the following questions: Will I generate enough information that will help me to solve the research problem by adopting this method?

    Method vs Methodology

    I think the most appropriate in methods versus methodology is to think in terms of their inter-connectedness and relationship between both. You should not beging thinking so much about research methods without thinking of developing a research methodology.

    Metodologia or methodology is the consideration of your research objectives and the most effective method and approach to meet those objectives. That is to say that methodology in research paper is the first step in planning a research project work.

    Design Methodology: Methodological Approach

    Example of methodology in research paper, you are attempting to identify the influence of personality on a road accident, you may wish to look at different personality types, you may also look at accident records from the FRSC, you may also wish to look at the personality of drivers that are accident victims, once you adopt this method, you are already doing a survey, and that becomes your metodologia or methodology.

    Your methodology should aim to provide you with the information to allow you to come to some conclusions about the personalities that are susceptible to a road accident or those personality types that are likely to have a road accident.

    The following subjects may or may not be in the order required by a particular institution of higher education, but all of the subjects constitute a defensible in metodologia or methodology chapter.

    Click here to complete this article - How To Write Chapter Three Of Your Research Project (Research Methodology)

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.