Impact Of Brand Positioning On Sales Volume Of Unilever Products In Nigeria

1.1 Background of the study

Positioning is a strategy for highlighting a brand's unique qualities that set it apart from its rivals and appeal to consumers. With a focus on product and service characteristics, advantages, benefits, use, value, and the capacity to address customer issues, brand positioning is a pretty practical process. It is a component of a brand identity and value proposition that should be actively conveyed to the target audience and that shows how it differs from rival companies Lieven, Grohmann, Herrmann, Landwehr, & Tilburg (2015).

Since that brand positioning is likely to have a beneficial effect on their sales performance, several business experts believe that Small and Medium Size Businesses (SMEs) operators in the food and beverage industry should make it their top goal (Sullivan, Peterson, & Krishnan, 2012). Entrepreneurs will get a competitive edge, according to Sullivan, Peterson, and Krishman (2012), if brand positioning is prioritized in any firm and carried out correctly. By limiting direct rivalry, brand positioning techniques are likely to boost a company's sales success (Dirisu, Iyiola&Ibiduni, 2013). Consumers will be drawn to and purchase items that provide them a higher value after they become aware of the differences in the market's offerings. The image of the brand will improve with a successful brand positioning plan, which will also boost sales (Chelumbrun, 2014). According to Walsh and Whelen (2002), a strong positioning strategy will provide a business a competitive edge, boost client loyalty, and eventually boost revenue.

Since it can keep the brand at the forefront of consumers' thoughts while they are thinking about making a purchase, brand positioning is able to accomplish the aforementioned. A brand positioning strategy must distinguish the brand from those of rivals, meet the crucial customer purchasing criteria, and clearly state the essential brand qualities in order to be effective. Since it is a crucial component of the purchasing process, brand positioning should not be disregarded by producers of food and beverage items. In actuality, brand positioning offers food producers a chance to boost brand competitiveness and favorably affect consumer opinion. Low sales and profit margins may result from a food and beverage manufacturer's refusal to use brand positioning initiatives. Whether a producer of food and beverages likes it or not, consumers will always judge the strength of a brand based on information gleaned from rivals, which might be detrimental to the producer. A successful brand positioning strategy, according to Hickey (2017), makes a noticeable distinction and sets the brand apart from rival products.

There is much research supporting the connection between price positioning strategy and sales. Since it has the potential to increase a company's sales, price positioning, according to Begum and Sarala (2016), is an effective tactic for positioning a brand in the market. Shivashankar and Uma (2017) suggested that price positioning is really crucial in the market world since it is the most relevant economic aspect evaluated in consumer purchasing choices. They contend that consumers are price sensitive and that if a business presents its brand based on price (i.e., as the cheapest supplier of a certain brand), it would significantly boost sales. With a focus on Small and Medium Size Businesses (SMEs) in Rivers State, Nigeria, the present research aimed to examine the link between price positioning strategy and sales turnover in the Nigerian food and beverage manufacturing industry.

A unique brand image that people depend on when selecting products is the outcome of good positioning. Consumer loyalty, positive brand value views, and a propensity to look for the brand are all influenced by a favorable brand image. Also, a strong brand reputation encourages consumer interest in upcoming promotions and protects consumers from the actions of rival brands.

An advertiser’s positioning approach influences consumers’ views about its brand’s features and the prices they are prepared to pay. In an article published by industrial marketing journal in 1969, a guy by the name of Jack Trout introduced the notion of positioning for the first time. The concept describes a procedure for putting the buyer in a favorable frame of mind towards a product. When Ries and Trout collaborated on their most well-known book, Product Positioning: The War of the Mind, in 1981, this idea took on more significance. The necessity for brands to stand out from rivals in the market is promoted by positioning (Kotler & Keller, 2016). Consumers nowadays are so picky about their preferences and tastes that they want variety. Brand positioning refers to how the consumer views and holds the brand, either as a market leader or as a brand that performs admirably in terms of operations (Asikhia, 2010). Using conventional marketing placement techniques like pricing, promotion, distribution, packaging, etc., positioning is the process of determining a market niche for a brand, product, or service. Moreover, positioning is the process of creating a company's products and brand in order to occupy a certain space in the mind of the target market.

A brand's positioning in a market is intended to provide it a competitive edge by setting it apart from rival brands (Komaromi, 2016). Strategies for brand positioning begin with a product and end with occupying target consumers' thoughts and carving out a place for it (Kamau & Wafula, 2015). A well-known brand maintains a unique position in consumers' minds that may be difficult for rivals to claim, according to Kamau and Wafula (2015). This position would only be maintained with well-articulated strategies structured around product, price, location, and marketing. Entrepreneurs must, however, be aware of the criteria that consumers use to evaluate products in order to establish a brand in their thoughts.

It is clear from the discussion above that brand positioning refers to the process of positioning your brand in your consumers' minds. A positioning plan, brand strategy, or brand positioning statement are additional terms used to describe brand positioning. Management may favorably affect its brand positioning in the perspective of its target consumers if it adopts an educated, forward-thinking strategy. The act of structuring a company's product and image to occupy a unique place in the target market's thinking is known as brand positioning. To put it another way, brand positioning explains how a brand differs from its rivals and where or how it is seen by consumers (Bhasin, & McConnell, 2012).

1.2 Statement of the Problem

Branding is crucial for effective product or expressive marketing because it enables businesses to emphasize their offerings via product positioning (Keller, 2010). The brand reputation of a corporation may be just as crucial as the products or services it offers. A potent asset is a strong brand image. People have more faith in an organization's dependability when they identify and trust its brand identity. A strong corporate brand will provide consumers and other interested parties trust in the whole range of goods and services offered by a certain firm (Keller, 2004). The sales of breweries and the company's reputation as a whole are impacted by inadequate brand positioning management. According to reports, the majority of businesses operating in underdeveloped nations like Nigeria are still rigid and hesitant to influence consumers' buy intentions via their product branding, which ultimately prevents them from meeting their sales revenue targets (David, 2018; John, 2019).

To succeed in the market and preserve their existence, businesses must learn how to cultivate consumers rather than simply products. This strong competition also modified the business philosophy into the survival of the fittest, meaning. fit or fulfill the customer’s value first to survive in the market. Company success relies on how marketing initiatives are centered on the client and meet their requirements, desires, and preferences in general (Kotler, Kartajaya, and Setiawan, 2010). According to Kotler (1999), it is not merely an issue of being different; success comes from being different in a manner that buyers desire.

Extant investigations in the domain of positioning as a marketing strategy demonstrated that brand positioning is one of the customer specific elements that impact consumer choice (Henning, Thurauand Klee, 2010; Romani, 2012; Mindrut, 2015; John, 2019). (Henning, Thurauand Klee, 2010; Romani, 2012; Mindrut, 2015; John, 2019).

Instead of evaluating specific product characteristics on a case-by-case basis, consumers often evaluate them holistically (Ainslie & Rossi, 1998). Hence, both extrinsic and internal aspects must be acknowledged while seeking to distinguish a product from its rivals. In these situations, brand might possibly play many distinct roles in the customer choice

Without the brand, a product is essentially useless. Due to internal politics, misdirected marketing managers or consultants, or simply over- or under-positioning that has a negative impact on customer choice, beer firms throughout the nation have not used this crucial marketing discipline (Tirsit, 2015; Zelalem, 2017, ACR, 2018). Semans, (2010) demonstrate the potency of the positioning as follows: The benefits of brand positioning are clear, notwithstanding the difficulty of the task. Improved consumer preference, contentment, and loyalty, cheaper cost of sales, more effective operations, and competitive inoculation are all results of a powerful and well-positioned brand. Having said that, it must be noted that brand positioning should be linked to fundamental corporate marketing strategies, and he also acknowledges that not positioning the organization's brand is simply not an option but a crucial component of the purchasing process and should never be left to chance as it offers the chance to shape the market's perception of a given product.

As a result, in the example of a chosen company Unilever Nigeria Plc, this research examined the Impact of Brand Positioning on Sales Volume. Using the link between positioning and consumer preference, it attempted to close the knowledge gap on the critical importance of positioning in the company performance.

1.3 Objectives of the study

The main objective of this study is on Impact of Brand Positioning on Sales Volume of Unilever Products in Nigeria. The study was guided by the following specific objectives;

i. To examine the effect of brand awareness on sales performance in Unilever Products 

ii. To examine the effect of brand association on performance of Unilever Products

iii. To examine the effect of brand attitude on performance of Unilever Products

iv. To examine the effect of brand loyalty on performance of Unilever Products 

1.4 Research Questions

1. What is the effect of brand awareness on sales performance in Unilever Products?

2. What is the effect of brand association on performance of Unilever Products?

3. What is the effect of brand attitude on performance of Unilever Products?

4. What is the effect of brand loyalty on performance of Unilever Products?

1.5 Significance of the Study

The study may be crucial to the management of the business entreprises. It would provide a knowledge on the implications of company branding initiatives on performance. This might assist the management to apply the numerous corporate branding strategies to increase performance in their firms. The research's conclusions may benefit banking industry stakeholders. The study would provide insights on effects of corporate branding initiatives on performance of commercial banks. The stakeholders might have better expertise about strategic responses to be utilized in the banks to improve organizational performance.

Prospective purchasers may profit from this study as it aids in negotiations approach. A company's brand is one of its most important assets since it has the potential to increase the financial value of the business to potential consumers. Lastly, future scholars in this area can also profit from the study. For academics and researchers, the study can be significant. It should boost their grasp on corporate branding strategies and performance of banks. The study will contribute to the body of knowledge and can be a resource for related research in the future.

1.6 Scope of the Study

The study sought to establish how Impact of Brand Positioning on Sales Volume of Unilever Products in Nigeria. The study population was 120 employees currently working in Unilever Company.

1.7 Limitation of the Study

Financial Constraints: The researcher was with limited funds and cannot visit all the areas to get responses from respondents but was able to get good information concerning the research topic.

Time Constraints: The researcher was involved in other departmental activities like seminars, attendance of lectures et.c which limited the time for the research but the researcher was able to meet up with the time assigned for the completion of the research work.

1.8 Organization of the Study

Chapter one covered the introduction, background of the study, statement of the problem, objectives of the study, research questions, significance of the study, scope of the study and limitations of the study. Chapter two covered the literature review wherein theories related to the study were explored in relation to the variables, empirical review was also explored, summary of research gaps and conceptual framework. Chapter three introduced the research methodology including the design of the study, targeted population, tools used in collection of data and the procedures followed, issues of reliability and validity, methods of data analysis and presentation as well as ethical considerations. Chapter covered research findings and discussion. Chapter five covered summary, conclusions and recommendations..