Value differentiation: Creating customised value propositions in the South African cement industry

Abstract

Contemporary market conditions no longer allow producers to classify their products as commodities or to enjoy the luxury of focusing only on sales strategies at the expense of product differentiation. However, the irony is that this is the exact approach followed by South African cement producers. This study proposes approaches that could be used to differentiate value propositions offered by cement producers, based on customer perceptions. Data were collected from 306 respondents, representing different business activities, by means of structured telephonic interviews, and analysed by means of correspondence analysis. The results suggest that customers do indeed attach different levels of importance to different value attributes, which indicates that value differentiation could be used as a viable marketing strategy in the cement industry. Indications are that customer value perceptions could be enhanced by the introduction of new or enhanced value attributes.