An assessment of brand differentiation as a viable strategy in the commoditised Western Cape fresh milk market
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Authors
Serman, Joel
Issue Date
2019-12
Type
Dissertation
Language
en
Keywords
Retail , Commoditised markets , Competitive strategy , Differentiation , Consumer behaviour
Alternative Title
Abstract
Companies in commoditised marketplaces such as the fresh milk market in the Western Cape are seeking ways to improve sales and increase their market shares relative to the competition. This study explored differentiation as a viable competitive strategy in the Western Cape fresh milk market to increase market share and drive brand preference. Using telephonic interviews to administer a structured questionnaire to a randomly selected sample of 300 respondents, the study undertook to identify Western Cape milk consumers’ procurement behaviour, the attributes that consumers look for when selecting fresh milk and their selection criteria when choosing between fresh milk brands.
The study found that nine attributes influenced the consumer’s choice of fresh milk brand, with price, consistency of taste, consistency of colour and expiry date being the most important. Brand attributes such as the company image, environmental concerns, company location, animal welfare and packaging played a less prominent role, but were also considered by consumers when selecting a brand of fresh milk. The study concluded that while price was the overriding decision-making variable, a differentiation strategy based on the nine identified attributes, or a subset thereof, will influence consumer procurement behaviour and potentially sway consumer preference. The study contributes to the existing body of knowledge on differentiation as a competitive strategy and specifically applies it to the Western Cape fresh milk market.