DOI: 10.1002/tie.21960
RESEARCH ARTICLE
Positioning strategies and congruence in the positioning of
high-end indigenous and foreign retailers in sub-Saharan
Africa: An illustration from Ghana
Charles Blankson1
1
| Michael Fiifi Nkrumah2 | Gertrude Opare2 | Seth Ketron3
University of North Texas, Denton, Texas
2
Ghana Institute of Management and Public
Administration (GIMPA), Accra, Ghana
3
East Carolina University, Greenville, North
Carolina
Correspondence
Charles Blankson, Department of Marketing,
Logistics, and Operations Management,
College of Business, University of North
Texas, 1155 Union Circle # 311396, Denton,
Texas 76203-5017.
Email: charles.blankson@unt.edu
This article examines the employment of positioning strategies through the lens of international
retailing for assessing congruence in the positioning of both indigenous and foreign retailers in
Ghana. Six retailers—three indigenous and three foreign—are examined in a triangulated
method, each through an in-depth case study. The results show that the dominant positioning
strategies consistently pursued by both indigenous and foreign retailers in Ghana are “service,”
“reliability,” and “attractiveness.” Although indigenous retailers (relative to their foreign counterparts) employ more strategies, the majority of foreign retailers exhibit close-to-ideal congruence among managers' intentions, actual practice, and customers' perceptions. The findings
show that foreign and indigenous retailers pursue varying positioning strategies in the marketplace, further complementing the utility of Western-developed typologies of positioning strategies in a sub-Saharan African marketplace. Moreover, the results reveal how indigenous
retailers have embraced branding, further attesting to the changing and competitive nature of
the Ghanaian marketplace.
KEYWORDS
positioning strategies, congruence, retailers, sub-Saharan Africa, Ghana
1 | I N T RO D UC T I O N
In international retailing, context matters for sampling purposes,
and the examination of actual case studies of firms' activities is impor-
Responding to maturing markets and stiff competition in their
tant (see Gentile-Ludecke, Halaszovich, & Ludan, 2017; Poulis, Poulis, &
home countries, international retailers are showing interest in
Plakoyiannaki, 2013). Additionally, even though qualitative case meth-
international marketplaces (Coffie, 2016; Gripsrud & Benito,
odology plays an important role in the study of congruence in position-
2005), especially in fast-expanding markets. Teagarden (2017)
ing research (Diwan, 2016; Liu & Zhang, 2014), international retailing
defines fast-expanding markets (FEMs) as lucrative markets that
scholars have overlooked such methodology in the sub-Saharan African
are growing and outperforming traditional predictors of growth.
context. While the sociocultural, economic, and political conditions
As noted by Acheampong and Dana (2017), FEM countries can
under which international business strategies are made in sub-Saharan
experience fast-paced growth irrespective of the challenges they
Africa are unique and challenging (Babarinde, 2009), the environment
confront in their macroeconomic environments. One of the funda-
is not only a reservoir of profitable business and investment ventures
mental components of marketing strategy in both domestic and
for creative and long-term-oriented international firms (Babarinde,
international retailing is positioning (Diwan, 2016; Kara, Kaynak, &
2009; Mmieh & Owusu-Frimpong, 2009) but is also an FEM
Kucukemiroglu, 1996). Arnott (1992) argues that positioning
(Acheampong & Dana, 2017; Esposito, Tse, & Soufani, 2017; Gentile-
encapsulates the deliberate, proactive, and iterative process of
Ludecke et al., 2017). Across sub-Saharan Africa, cross-border firms are
defining, measuring, modifying, and monitoring consumer percep-
successfully investing in stock exchanges in other sub-Saharan African
tions of a marketable offering.
countries (see Mmieh & Owusu-Frimpong, 2009). Still, growing
Thunderbird International Business Review. 2018;1–14.
wileyonlinelibrary.com/journal/tie
© 2018 Wiley Periodicals, Inc.
1
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BLANKSON ET AL.
business and marketing activities on the continent raise questions from
especially foreign and indigenous retailers' positioning strategies in
marketing scholars (see Appiah-Adu, 1999; Coffie, 2014) who are con-
the international retailing domain, are of concern to the success of
cerned about the workability of marketing concepts and strategies
the international retail venture (Diwan, 2016).
emanating from Western environments in sub-Saharan African countries. These gaps in the literature inspired this study.
Moreover, not only has the literature shown little attention to
the positioning strategies of retailers operating outside their home
The central purpose of this research is to examine the employ-
markets (Kara et al., 1996) but there is also a paucity of research that
ment of positioning strategies through the lens of international retail-
examines how strong or well-positioned local/indigenous firms and
ing for assessing positioning congruence among both indigenous and
brands benefit from high levels of local awareness (Schuiling & Kap-
foreign retailers in sub-Saharan Africa, using Ghana as an illustration.
ferer, 2004). More specifically, while concern about foreign retailers
Additionally, this article examines the applicability of a Western-
in host countries continues to receive attention, we must examine
based typology of positioning strategies in sub-Saharan Africa.
how indigenous retailers compete with foreign retailers in their coun-
To that end, this article contributes to the literature by studying
tries (Coffie, 2014). This is important for foreign and indigenous retail
an untapped yet potentially viable context for testing the theory of
managers, as they must decide how to not only build their brands but
congruence and the concept of positioning (see Diwan, 2016). The
also adjust their marketing strategies and benchmark best practices,
scant knowledge on the positioning activities of retailers in Ghana is
respectively, in the local marketplace (Schuiling & Kapferer, 2004).
particularly critical for international business research (Coffie, 2014;
We now turn to an examination of the importance of congruence in
Coffie & Owusu-Frimpong, 2014). More importantly, the contempo-
retail positioning.
rary landscape of sub-Saharan Africa, and the Ghanaian business
environment in particular, are very different from the landscape of
over 20 years ago, as countries' liberalized and open economies are
2.2 | Congruence in Retailer Positioning
expanding and are paving the way for unprecedented competition
Nadler and Tushman (1980) define congruence as “the degree to
among firms, including retailers of both foreign and indigenous origins
which the needs, goals, objectives, and/or structure of one compo-
(Acheampong & Dana, 2017; Coffie, 2016). In Ghana, for example,
nent are consistent with the needs, demands, goals, objectives,
Acheampong and Dana (2017, p. 54) find that the increasing income
and/or structure of another component” (p. 40). Eckstein, Fleron,
capability of the population is significant to the extent that busi-
Hoffmann, and Reisinger (1998) clarify this relationship by adding
nesses are taking advantage of new opportunities by investing in new
that “congruence requires ‘contiguous’ or ‘proximate’ social units”
products and services, and increasing their marketing and branding
(p. 11). Eckstein (1998) claims that congruence creates a condition of
activities. According to the authors, the increasing income capability
being in agreement, and that congruence sometimes denotes the act
of the population is also attracting direct foreign investments.
of being in harmony with something or being suitable for a condition.
Regarding positioning, congruence concerns the magnitude of correlations in judgments brought about by activities that take place
2 | LITERATURE BACKGROUND
between intended and achieved brand positions.
In order to predict the direction of congruence, it is necessary for
2.1 | International Retailing and Positioning
retailers to understand the existing scenario (e.g., strategy, phenomenon) in question, and the context in which congruity is being sought
Interestingly, while internationalization of retailing in regard to entry-
(Myers, 2004; Young, Meterko, Mohr, Shwartz, & Lin, 2009). Congru-
mode strategies (Gielens & DeKimpe, 2001; Gripsrud & Benito,
ence in retailer positioning activities involves a degree of fit
2005), internationalization motives, retail format (Swoboda, Berg, &
(Milliman, von Glinow, & Nathan, 1991), which ultimately results in
Dan-Cristian, 2014), retail divestment (Cairns, Doherty, Alexander, &
improved corporate performance (Hooley, Piercy, & Nicoulaud,
Quinn, 2008), store image (Burt & Carralero-Encinas, 2000), psychic
2012). De Chernatony and McDonald (1994) write that a successful
distance (Evans & Mavondo, 2002), and retail failure (Burt, Dawson, &
brand manager emphasizes matching products that the firm produces
Sparks, 2003) receive much interest and attention in the literature,
and sells with what the target audience actually wants. Therefore,
international retail positioning and congruence in strategies appear to
positioning calls for distinctiveness and fit. That is, by offering a dis-
have been overlooked by marketing scholars. Although Swoboda
tinct product, ensuring that the product fits the needs of target con-
et al. (2014) conclude that retail format transfer and positioning deci-
sumers, and establishing a competitive position in the marketplace
sions are important in retail internationalization, the authors do not
along dimensions such as affordability, importance, and superiority,
indicate the actual positioning strategies used by the retailers, and
firms can achieve competitive advantage through distinctiveness and
instead call for future investigations of international retailers' posi-
fit (see Kotler & Armstrong, 2012; Kotler & Keller, 2012).
tioning decisions. Additionally, Burt and Carralero-Encinas's (2000)
Due to the massive investments required by international
research on store and corporate image does not deal with retail posi-
retailers to launch or expand operations in a foreign market, congru-
tioning per se, although the authors suggest that retailers should fully
ence in positioning strategies is paramount to the success of the firm
understand the importance of image in competitive positioning prior
(Fuchs & Diamantopoulos, 2010). Although Blankson and Kalafatis
to image replication overseas. Given the pivotal role played by posi-
(2007) offer empirical insight into patterns of congruence between
tioning in retail firms' marketing strategy formulation, the oversight
managerial decisions, communications, and target audience percep-
of research in positioning and congruence in positioning activities,
tions, they lack explanatory power in that they make no distinction in
BLANKSON ET
3
AL.
actual firm (i.e., case study) positioning practices and between foreign
study and allows for an exploration of the complexity surrounding
and indigenous retailers in developing sub-Saharan African countries.
retailers' positioning strategies and congruence in positioning activi-
Based on these findings in the literature, international/foreign
ties in sub-Saharan Africa, specifically in a fast-expanding market
retailers that are able to achieve congruence to a greater degree than
such
their indigenous counterparts are more likely to realize stronger per-
Owusu-Frimpong, 2014).
as
Ghana
(Acheampong
&
Dana,
2017;
Coffie
&
formance. Likewise, indigenous retailers can create a buffer against
the advancement of foreign retailer competition by enhancing the
4.1 | Study 1
congruence of their own positioning activities. As such, congruence
in positioning should be a foundational element of both foreign and
Study 1 involved covert, overt, and participant observation tech-
indigenous retailer strategies and should be continuously evaluated
niques. Following de Chernatony and Cottam (2009), estimates of the
to ensure that managerial intentions, customer perceptions, and
monies spent on purchases and meals were made. Prices and styles
actual practices—the three primary elements of positioning among
of clothing were checked, as were store promotions, pamphlets, and
which congruence is desired (Coffie, 2014; Diwan, 2016)—remain
leaflets. The layout, attractiveness, and cleanliness of the store,
aligned.
including the restrooms, storefront, window displays, and overall
Interestingly, little research addresses these three elements of
ambience were scrutinized (Dubois & Gadde, 2002). These observa-
positioning congruence among foreign and indigenous retailers. A
tions provided subtle knowledge about the relevance of positioning
review of the literature reveals only two related publications, both of
strategies (see Pieters, Wedel, & Batra, 2010) in the marketplace.
which examine positioning activities of brands in the United King-
Supporting the use of observation techniques in international retail
dom's financial services domain (Blankson, 2004; Blankson & Kalafa-
research, Alexander and Doherty (2010) show that the use of obser-
tis, 2007). Both fail to tap into actual retailers' practices (i.e., case
vation techniques and in-depth qualitative accounts of actual firm
study approach) and do not explore developing sub-Saharan African
activity lead to more robust theory building. We anonymized the six
markets—a lacuna in the literature noted by Yang, Wang, and Su
firms by assigning the labels “LR,” representing indigenous (i.e., local)
(2006) and Owhoso, Gleason, Mathur, and Malgwi (2002). As
retailers, and “FR” for foreign retailers. Hence, LR1, LR2, and LR3 are
Owhoso et al. (2002) confirm, sub-Saharan Africa is overlooked,
the three local retailers; FR1, FR2, and FR3 are the three foreign
despite its market of over 700 million inhabitants and the unique
retailers.
challenges and opportunities it presents for foreign and indigenous
Completed in January 2013, the observations began with three
firms alike (Acheampong & Dana, 2017; Babarinde, 2009; de Bruyn &
indigenous stores (LR1, LR2, and LR3) all operating under a “mini-
Freathy, 2011; Reardon, Timmer, Barrett, & Berdegue, 2003).
mall” concept. Worthy of note is that the three stores are owned by
a Ghanaian entrepreneur and run by a chief executive officer (CEO).
Each store is independently managed.
3 | R E S EA R C H Q U E S T I O N S
Each overt observation lasted 30 minutes; each covert observation lasted 45 minutes. The authors took on the roles of customers in
Drawing upon the findings from and gaps in the literature and using
order to conduct participant observations that lasted between 30 and
the Ghanaian retail domain as the context, we seek to address four
45 minutes in each store. More specifically, two members of the
research questions:
research team used covert and participant observation as “mystery
shoppers.” Observation of the fourth case study (FR1) was carried
1. What positioning strategies do firms pursue?
out in September 2013. This overt observation lasted for 20 minutes
2. What are the differences between indigenous and foreign firms'
following an interview with the manager. The fifth case study (FR2)
positioning strategies?
was conducted in September 2013; covert observation for this case
3. Is there evidence of fit among managerial intentions about their
lasted 30 minutes. The overt observation followed the interview with
positioning strategies, firms' actual employed strategies, and tar-
the managers and lasted 30 minutes. Finally, the sixth case study
get audience perceptions of firms' positioning strategies?
(FR3) was undertaken in September 2013, and covert observation
4. Is a typology of positioning strategies developed and validated in
a Western environment applicable in a sub-Saharan African
environment?
lasted 40 minutes.
The vast majority of research on positioning adopts a quantitative perspective (a few recent examples include de Jorge Moreno &
Carrasco, 2016; Gengler & Mulvey, 2017; Kachersky & Carnevale,
For the purposes of this article, congruence denotes fit or coher-
2015; Kirmani, Hamilton, Thompson, & Lantzy, 2017; Zerfass, Ver-
ence, and such terms are used interchangeably throughout the
aia, & Wiesenberg, 2016). However, this perspective is restrictive,
discussion.
considering the pivotal role that day-to-day firm activities have on
the operationalization of positioning strategies (Diwan, 2016; Liu &
Zhang, 2014). Unlike quantitative research, qualitative studies have a
4 | METHODOLOGY
tendency to uncover the subtle, benign, and subterranean management drives and efforts (see, e.g., Gentile-Ludecke, Halaszovich, &
The qualitative case method and purposeful sampling method char-
Ludan, 2017) that are important in the application of marketing and
acterizing this research stems from the exploratory nature of the
business strategies in the international retail domain. Given the
4
BLANKSON ET AL.
minimal attention to positioning studies in the study setting, qualita-
training of staff to excel in customer service in the past two years. In
tive investigation is deemed appropriate. According to de Chernatony
addition, retailers had to have formed impressions about their target
and Cottam (2009), qualitative research and inductive processes of
audiences, been in operation at the Accra Mall for at least two years,
data generation capture complexity and provide more robust descrip-
and be wholly owned by either indigenous or foreign entrepreneurs
tions of process, meaning, and understanding of congruence in the
or organizations.
positioning strategies of high-end retailers in Ghana. In addition, qualitative case studies are used to confirm and/or build theory
(Galperin & Lituchy, 1999; Yin, 2009). Despite incessant calls from
practitioners (Ries & Trout, 2001) and scholars (Galperin & Lituchy,
1999), qualitative case study research in positioning appears to have
been overlooked in the international retail domain.
A semistructured long interview approach characterized the discussions, which developed naturally; the interviewers ensured that
the discussion centered on firms' positioning and marketing activities.
The interviews with the managers lasted between 30 and 60 minutes
and took place in the stores in noncontrived settings. With permission, we recorded and took notes during the interviews.
The current study concerns this neglected but potentially pivotal
research method—qualitative case study research—in the operationalization of positioning. Case study research has the potential to cap-
4.2.2 | Interview with customers (mall intercept survey)
ture the dynamics of the studied phenomenon within single settings
Interviews with customers were focused on their perceptions of cus-
(Eisenhardt, 1989; Yin, 2009). This is important in view of the chal-
tomer service, responsiveness to customer queries and problems,
lenges encountered in the implementation of positioning strategies
attractiveness of service, products and fixtures in the stores, quality
(Piercy, 2005).
of products, perceptions about store brands, features of products and
customer service, stores' promotions and sales (inducing tactics), and
general impressions of the stores and their marketing practices. The
4.2 | Study 2
mall intercept was undertaken first in front of the selected stores as
4.2.1 | Sample and data collection
customers entered and exited, and then in the foyer and the two
Following recommended best practices in case study research
main entrances to the mall. A random selection of 32 customers who
(Galperin & Lituchy, 1999; Yin, 2009) and purposeful sampling
patronized the selected stores participated in the survey. Interviews
methods (Poulis et al., 2013), we surveyed six retailers at the Accra
lasted between 35 and 45 minutes; notes were taken during each
Mall. We randomly targeted three indigenous and three foreign
interview. Care was taken to ensure a balance in gender of our sam-
retailers for this research.
ple; hence, 16 men and 16 women participated. All participants were
More specifically, Study 2 involved face-to-face interviews with
assured of the confidentiality of their responses. Supporting face-to-
15 managers across six stores, coupled with mall-intercept surveys of
face interviews and the observation method, Stewart (2009) writes
target customers. The literature reveals increasing pursuit of in-depth
that “surveys and experiments seldom produce really surprising out-
face-to-face interview methods in data collection and analysis in the
comes … that is why observation and qualitative methods are impor-
international retailing domain, and this development highlights a
tant in marketing … these types of methods do not produce definitive
growing domain in the literature. Face-to-face interviews in the
outcomes
present study were conducted in January 2013 and in September
research” (p. 382).
but
they
often
suggest
interesting
avenues
for
2013. Again, the three indigenous retailers are LR1, LR2, and LR3;
Cases 1, 2, and 3 are grouped in the same vicinity of the mall
the three foreign retailers are FR1, FR2, and FR3. Our decision to
and are described as a “mini-mall.” As a professionally run, indige-
compare indigenous and foreign retailers' efforts at targeting middle-
nous, family-owned retail business, the mini-mall offers medical ser-
class and affluent customers in Ghana stems from Coffie (2014) and
vices, a pharmacy, a dental clinic, and beauty and perfumery services.
Coffie and Owusu-Frimpong's (2014) recent calls for research on the
According to the CEO, the mini-mall concept was devised in 1995
impact of the contemporary, liberalized Ghanaian marketplace on
during the initial planning of the larger Accra Mall. It was opened in
firms' positioning strategies.
2008, when the mall was also officially opened.
The Ghanaian retail business domain has been growing since the
The mini-mall's overall selling proposition is a luxurious retail out-
opening of the Accra Mall in 2008. Since then, the Marina Mall, A&C
let, built and designed to attract the middle- to upper-class target
Mall, West Hills Mall, and Achimota Retail Center, respectively, have
market of the Accra Mall. The mini-mall attracts busy business execu-
opened
selected
tives, expatriates, and families who shop and at the same time visit
due to its status as the first world-class shopping mall in Ghana posi-
the clinic to have general medical checkups with a gynecologist, an
tioned toward middle- to upper-class customers. The Accra Mall (see
internist, or a dentist. In addition, the clinic serves as an emergency
www.accramall.info) houses 65 glamorous shops, of which 30% are
unit for the minor accidents that occasionally occur in and around the
operated by Ghanaian retailers and 70% are operated by foreign
larger Accra Mall. The initial conception of the mini-mall was geared
retailers. Retailers include international franchise stores, restaurants,
toward that of a dental clinic and community pharmacy. However,
and department stores from South Africa, the Netherlands, Italy, the
after a few months of successful operation (following customers'
in
Accra.
However,
the
Accra
Mall
was
United Kingdom, and Nigeria. Indigenous retailers include African-
requests), a health care and beauty retail section—namely, LR3—was
inspired apparel stores, African fabric boutiques, and upmarket bars
added. As we have mentioned, each of the indigenous businesses in
and restaurants. To qualify for inclusion in the study, a retailer had to
our study at the Accra Mall (LR1, LR2, and LR3) is an autonomous
have devoted a budget toward sales promotions, advertising, and
business managed under a CEO.
BLANKSON ET
5
AL.
4.2.3 | Case 1
trust in a convenient shopping environment. Three managers from
LR1 is an indigenous firm in the “mini-mall” that specializes in the
this firm participated.
supply of pharmaceutical items. The pharmacy offers efficient, reliable, and friendly service and is dedicated to providing excellent ser-
4.2.8 | Case 6
vice, quality products, and competitive prices. Other branches are
FR3 is a Portuguese fast-food chain restaurant. Wolak, Kalafatis, and
located in prime areas of Accra, such as the six-star Mövenpick Hotel.
Harris (1998) place restaurants within the retail sector and at the
The firm's services include a 24/7 helpline service and an online chat
midpoint in the goods–services continuum. FR3 is named after a Por-
with a pharmacist—the first service of its kind in Ghana. Two man-
tuguese town. FR3 opened its first store in Pretoria, South Africa, in
agers from this firm participated in the study.
1993, and since 1998, the firm has opened franchises in 16 countries,
including South Africa, Lesotho, Botswana, Zambia, Namibia, Mozam-
4.2.4 | Case 2
bique, Ghana, Nigeria, Sudan, Canada, the United Kingdom, Dubai,
LR2 is another indigenous retailer that is part of the “mini-mall” con-
Oman, Mauritius, and Singapore, and will soon operate in Pakistan,
cept. Recognizing a growing, diverse target audience (expatriates,
India, and Qatar. Using recipes mastered by the Portuguese hundreds
upper-, middle-, and lower-middle-income groups), the clinic has
of years ago, FR3 Ghana's menu includes hamburgers, fries, “peri-
expanded its services from traditional general practice and dentistry
peri” chicken pieces, and more traditional Ghanaian dishes, such as
to include gynecology, an eye and ear unit, a laboratory, and a phys-
“jollof rice.” Its flagship dish of four varieties of peri-peri chicken—
iotherapy unit. Three managers from this firm participated in the
from very hot peri-chicken to tangy lemon peri-chicken—is catered to
study.
meet the taste preferences of its culturally diverse customers. The
restaurant also includes a pastry and ice cream parlor. As noted ear-
4.2.5 | Case 3
lier, although FR3 is a South African franchise, the brand name, menu,
LR3 is the last store in the “mini-mall” concept and carries only origi-
and condiments are Portuguese. Three managers from this firm par-
nal designer fragrances at comparatively competitive “duty-free”
ticipated in the study.
prices, as well as cosmetics and makeup booths for well-known
brands. One manager from this firm participated in the study.
4.2.9 | Measurement construct
In view of the criticisms leveled against extant typologies of positioning
4.2.6 | Case 4
strategies (Kalafatis, Tsogas, & Blankson, 2000) because of the absence
Introduced in Ghana in 2006, FR1 is a fast-growing photo and image
of empirically derived consumer-generated positioning strategies
firm headquartered in Lagos, Nigeria. The store operates a photo stu-
(Aaker & Shansby, 1982; Crawford, 1985), an empirically based generic
dio that offers professional and digital photo services. The firm cur-
(i.e., appropriate for services and goods) consumer-derived typology of
rently operates four branches in prime locations throughout Accra;
positioning strategies was adopted (see Appendix I). Eisenhardt (1989)
the store in the Accra Mall is the firm's flagship store. The firm's pri-
supports the adoption of a priori constructs for emerging theory as a
mary objective is to provide the best-quality photos and videos while
means of shaping the initial design of theory-building research. The
offering first-class service for every customer, and maintaining a stim-
rationale for adopting a consumer-derived generic typology of position-
ulating and enjoyable working environment for all staff and cus-
ing strategies stems from the fact that the typology has been applied in
tomers. Three managers from this firm participated in the study.
the managerial/corporate environment, and it exhibits reliability and
explanatory power (see Blankson, Kalafatis, Cheng, & Hadjicharalam-
4.2.7 | Case 5
FR2, a South African multinational retailer, has remained, since 1979,
the largest brand of its parent group of companies and has become
one of South Africa's most trusted brands, having been voted
South Africa's number-one supermarket in the annual Sunday Times
Top Brands Survey in 2006. FR2’s group of companies is headquartered in Cape Town, South Africa. FR2 is Africa's largest retail and
fast-food multinational firm. Operating over 1,200 corporate and
270 franchise stores in 16 countries across sub-Saharan Africa and
the Indian Ocean islands, the company is listed on the Johannesburg
Stock Exchange (JSE), the Namibia Stock Exchange, and the Zambian
Stock Exchange. The company also owns franchising brands through
its OK Franchise Division under the names OK Foods, OK Grocer,
Megasave, OK Minimark, OK Value, and Sentra. FR2 ventured into
bous, 2008). In addition, a review of the literature reveals that some of
the earliest and most widely referenced typologies of positioning
(e.g., Aaker & Shansby, 1982; Wind, 1982) are conceptual. As for the
empirically based typologies (e.g., Crawford, 1985), these reflect mainly
organizational practices as exhibited in advertisements.
In line with de Chernatony and Cottam (2009), and Zou and
Ghauri (2010), inductive reasoning was utilized to decipher the type
of positioning strategies pursued and guided by the construct proposed by Blankson and Kalafatis (2004) (Appendix I). In addition, our
method is consistent with Poulis et al. (2013), who developed a
framework from an inductive process following an actual case study
project in international marketing, which promoted the idea that context matters for sampling purposes. Above all, we followed best practices of case study research and analysis suggested by Yin (2009).
the Ghanaian market in 2003, starting with its flagship store in the
Accra Mall. FR2 offers a wide range of quality products imported
4.2.10 | Validity and reliability
from South Africa, Europe, and local Ghanaian regions. The retailer
Given the varied and complex nature of qualitative data, validity and
has a simple philosophy: bringing customers lower prices they can
reliability are important concerns in qualitative research and follow a
6
BLANKSON ET AL.
different pattern from that of quantitative research by focusing on
an ambience of safety. The interview with the CEO revealed that the
credibility, transferability, dependability, and confirmability (Hirsch-
mini-mall concept (three stores under one roof ) is a strategy
man, 1986; M. B. Miles & Huberman, 1994; Riege, 2003). In adher-
designed to provide customers with intertwined options and an inte-
ence to these aspects, the researchers followed the methods of
grated shopping experience. The location of the stores at the immedi-
Sweeney and Chew (2002) and Dubois and Gadde (2002) in demon-
ate right-hand side of the entrance of the mini-mall is also strategic
strating case study validity and reliability with three types of tests.
about patients seeking medical care and pharmaceutical products.
The results of these tests are shown in Appendix II.
According to the CEO, similar mini-malls are located at the six-star
Further, tests of the typology itself—originally developed in the
Movenpic Hotel and the A&C Mall in Accra. He reiterated that his
United Kingdom—were carried out before the typology was used in
motive for the mini-mall concept is to fit into the lifestyles of the
the present study. A robust and generalizable typology is one that is
contemporary middle-class Ghanaian and the time-constrained
tested and refined using different sample groups and assessed in
expatriate.
other environments (see Peterson & Merunka, 2014). To this end, in
order
to
enhance
the
typology's
generalizability,
An interview with the senior manager revealed that the general
continued
pricing for all products in the clinic was not excessive, despite the tar-
operationalization and replication are necessary (Peterson & Mer-
get market; this was evident in the patronage of the clinical services.
unka, 2014). Content and face validation involved assessment of the
The manager emphasized that the pricing of clinical services was
properties and meaning underpinning the typology in Ghana. This
competitive and geared toward a “value for money” strategy. This
was carried out through focus group interviews with three conve-
was confirmed in an interview with Patrick, one of the customers
nience samples of 20 executives undertaking MBA marketing
(see Appendix III), who said that the pricing of consultation fees is
research and strategic marketing courses at a leading Ghanaian busi-
reasonable compared to two other private clinics visited. This high-
ness school in Accra. The average MBA student at this business
lights the “value for money” positioning strategy. The CEO stated
school is an executive or manager in a business entity in Ghana. The
emphatically that the stores did not advertise through any media,
validation tests took place between September 2012 and June
since he believed that advertising through such media was indicative
2013. Moreover, due to the subjective nature of the study, validity
of a strategy targeting low-income customers. Thus, the stores pre-
was assessed by sending a summary of the findings to two aca-
ferred a word-of-mouth (traditional advertising) approach, which
demics, one in the United States and another in Ghana, with exper-
seemed to be working well for LR1 and was confirmed by Abena Liz,
tise in qualitative case study research and the research setting,
respectively, for their critical review and comments. Their sugges-
Alan, Patrick, Papa Nana, Love, and Opaning Kwame, six of the customers interviewed (see Appendix III).
tions were subsequently incorporated into the final version of this
paper.
5 | RESULTS
5.2 | Case 2: Application of positioning
strategies—LR2
An interview with a senior manager of LR2 showed that prices of
5.1 | Case 1: Application of positioning
strategies—LR1
Our observation through covert and overt techniques revealed that
products were in line with average market prices, highlighting a
“value for money” strategy. This confirmed the number of customers
purchasing their products for the period of time (two hours) spent
there by the researchers. Interviews with the managers also revealed
upon entering the “mini-mall,” a customer could either turn right to
what the CEO stressed regarding good customer service (a “service”
LR3, left to LR2, or continue straight ahead to LR1. The wall of the
positioning strategy) and that from time to time each store had cus-
reception area of LR1 displayed a captivating definition of health:
tomer care training for staff.
“Health is a state of complete physical, mental, and social wellbeing
Customers of LR2 were impressed with the wide variety of qual-
and not merely the absence of disease and infirmity.” The positioning
ity, brand-name drugs that were available (a “brand” positioning strat-
of mirrors in strategic locations of the store stimulated an enhanced
egy). Two customers (Mama Pat and Papa) were particularly
visual effect, and served as a means of monitoring movements of
impressed with the fact that they could find drug prescriptions, which
both customers and staff in the stores. A large mirror by the clinic's
they otherwise could not find in town. Mama Pat hinted that “the
reception desk, aligned to face the entrance and walkway of the
drugs sold here are more likely to be found in Europe,” drugs which
mini-mall, reinforced the illusion that the walkway extended and con-
she believed most local pharmacy shops did not carry. This is consis-
nected to other sections of the general mall. This semblance was con-
tent with the CEO's remarks that all of the firm's pharmaceutical
firmed in the interview with the CEO, who said that some customers
products were sourced from the United Kingdom and France. He
entered the shop under the impression that the walkway led to other
noted that he also gets supplies from Ghana through Ernest Chemist
sections of the general mall. As such, in their quests to hide their dis-
Limited and Vicdorris, indigenous wholesale distributors of German
appointment, customers ended up browsing other stores in the
pharmaceutical products. These findings are in accord with the qual-
mini-mall.
ity of products sold to customers. Both the CEO and the managers
Cameras were placed at various corners of the clinic, which,
when combined with vaulted lighting and excellent ventilation, create
confirmed that the layout of the pharmacy is reconfigured every five
years.
BLANKSON ET
7
AL.
5.3 | Case 3: Application of positioning
strategies—LR3
The last strategy that the senior manager considered prominent
was a “value for money” strategy. Thus, the firm ensures that it is
competitively priced by finding a balance between its prices and
The orderly arrangement of perfumery gave a strong high-end visual
impression. A rather interesting feature of the perfumery shop was
the fact that the fixtures had mirrors and white lights, which created
an impression of a wider display of products. Price tags were not
affixed to the products; hence, customers had to inquire about the
prices from store representatives, who were always waiting on customers. The covert observation particularly helped to reinforce this
assertion. The manager stressed sound customer service. Staff had
frequent but brief product knowledge training for new perfumes that
those of competitors. The interview with the junior manager supported this assertion by stressing the fact that the quality of the final
prints delivered to customers and the price value are much better
than what competitors offer. Six customers (Mr. Salifu, Ms. Mensah,
Ante Agnes, Papa Nana, Mama Abaka, and Papa Burger) (Appendix
III) interviewed supported the assertion that the quality offsets the
price. However, two customers (Ms. Ayo and Aku) disagreed, providing the researchers with comparative price differentials from other
photo stores in Accra.
were introduced into the shop's assortment. The CEO also hinted
that the wood-paneled floor was recently installed in the store to
prevent perfume bottles from breaking when accidentally dropped.
He also said that the layout of the perfume store is changed every
five years. Ms. Abroad and Mr. Abroad (see Appendix III) indicated
that the staff were friendly, highlighting a “service” positioning strategy, and these customers considered the display of merchandise to
be attractive. Two customers (Kwame and Aku), however, lamented
the fact that the prices were ridiculously high for an average consumer. The CEO emphatically stated that the perfumery store was
experiencing lackluster sales and profits, and as such needed a senior
manager to take charge of the shop's operations.
5.5 | Case 5: Application of positioning
strategies—FR2
Our observations through covert and overt techniques revealed products arranged and grouped in an orderly manner, well labeled with
prices; this made the purchase process easy and convenient. We
observed that management had put in place overhead directional
signs and fixture signage to facilitate easy navigation of the large selling space. The staff is friendly, well mannered, neatly dressed in FR2
uniforms with name tags, and positioned at vantage points on the
sales floor in order to be of assistance to customers who need help
and to restock depleted merchandise. The sales floor is clean, and so
5.4 | Case 4: Application of Positioning
Strategies—FR1
are the washrooms. The walls are painted in bold colors, which, combined with a fine display of merchandise, provided a very attractive
ambience consistent with a strategy targeting the middle class, com-
The covert observation revealed two medium-sized posters advertis-
mensurate with experiences in Western large-store atmospheres. The
ing the FR1 shop and its name. The colorful, bright, yellow-and-white
expanse of the sales floor, aisles, and fixtures add to the store's
walls with chic colored benches; a slideshow of pictures of television
beauty. The layout also provides easy monitoring of customer and
stars and models; and shelves holding a myriad assortment of pic-
staff activities.
tures create a compelling visual impression for the customer. How-
Interviews with the managers confirmed our observations that
ever, the small waiting area in relation to the number of customers
FR2 pursues a “service” positioning strategy. Apart from the arrange-
causes shop congestion during high-traffic time blocks, leaving some
ment of merchandise, the ambience hints at a friendly and impressive
impatient customers stressed. Employees were casually dressed and
service strategy. All customers interviewed agreed about the exis-
had name tags. An interview with a senior manager revealed that the
tence of this strategy. The interviews with the managers further
presence in the mall was a strategic choice to position the firm in the
revealed that they employ a “value for money” positioning strategy.
photography market in light of its domination among strong competi-
All managers confirmed that “providing variety at the lowest prices is
tors. He further insisted that the “reliability” strategy is their stron-
the hallmark of FR2’s success.”
gest positioning strategy, noting that the store “opens to customers
FR2 also pursues a “reliability” positioning strategy. The man-
as long as it takes in order to serve customers.” An employee shift
agers highlighted warranty policies on electrical products and stated
system is in place to meet the time constraints of busy customers.
that the firm rarely has complaints about the durability or safety of
In the interview, the senior manager stressed that a “service”
any of its products or food. The managers also opined that perpetuity
strategy is key in marketing activities. He reiterated personal atten-
of stocked merchandise ensures reliability of service. The importance
tion to detail, endless sacrifice for clients, friendliness of staff, and
of a reliable, service-oriented business environment is evidenced in
impressive service as some of the elements of this strategy, which
the managers' claims that no injuries or thefts of customers' personal
were corroborated by the interview with the junior manager. Our
items have occurred, thereby illustrating the safety of the shopping
interviews also showed that not all customers thought of the service
environment; interviewed customers corroborated this. However,
process as smooth: nine customers (Mr. Salifu, Ms. Mensah, Akosua,
these interviews highlighted the fact that there are occasions when
Aku, Ms. Ayo, Mama Abaka, Papa Burger, Ante Agnes, and Papa
the store is depleted of preferred sizes of merchandise, but when
Nana) intimated that the process was not orderly and prolonged the
asked, managers claimed that in most cases the items are in stock at
turnaround time. Interestingly, all nine customers gave credit to the
the warehouse but have not yet reached store shelves. Six customers
photo editors' personal attention to detail and selection of pictures
(Nana, Koshie, Ms. Asempa, Baaba, Papa Burger, and Abeiku) com-
for printing.
plained about the waiting times at point-of-sale terminals. However,
8
BLANKSON ET AL.
our observation showed that the long waiting time did not discourage
were set with no day-to-day fluctuation in order to prevent shortage.
several customers from purchasing only single items and waiting in
Regarding the “value for money” strategy, managers opined that the
the queue. The orderly arrangement of merchandise, bright lighting,
quality of the food matched its pricing, which creates value for the
music, and busy-yet-quiet atmosphere create an ambience consistent
customer. Although some customers (e.g., Mame Asi, Wofa, and Ante
with targeting the middle class, which is commensurate with experi-
Abena) felt that the prices were high compared to the other fast-food
ences in Western large-store atmospheres. This observation and
restaurants in the Accra Mall food court, the majority felt that the
interviews with the six customers (Nana, Koshie, Ms. Asempa, Baaba,
food was priced averagely or that the quality and ambience compen-
Papa Burger, and Abeiku) (see Appendix III) and managers give cre-
sated for the prices of food; this was consistent with the views from
dence to FR2’s employment of an “attractiveness” positioning strat-
three managers.
egy. As stated by one customer (Kofi), “the general atmosphere and
Although managers said that the restaurant did not employ
standard of this shop is excellent and similar to my experience with
“selectivity” or “top of the range” positioning strategies, interestingly,
shopping in London and New York … I love coming here.”
one of them said, “We rather target the middle- to upper-income cli-
FR2 also pursues a “branding” positioning strategy. This is
entele that the mall attracted.” Customers (e.g., Mame Asi, Wofa,
reflected in the variety of foreign products and brands on offer, giv-
Ante Abena, and Kofi Mensah) (see Appendix III), however, believe
ing customers a wide breadth of assortment and familiarity with for-
that the restaurant is not selective in the choice of its target audi-
eign brands. Interviews with customers supported this assertion.
ence. In terms of a “country-of-origin” strategy, managers hinted that
They attributed their patronage of the store to the breadth of assort-
the restaurant was not pursuing this strategy, even though they did
ment and quality of products. One customer (George) simply said that
admit that customers were confused by its Portuguese menu and
“FR2 leaves the customer spoiled for choice.”
South African origin.
5.6 | Case 6: Application of Positioning
Strategies—FR3
6 | DI SCU SSION A ND C ONGRU ENCE I N
P O S I T I O N I N G D E LI B E R A T I O N S
Covert observation revealed that 50 people came into the restaurant
during our observation. Some came in to have a casual lunch and
The findings show that three key positioning strategies are consis-
spend time with friends and family; others waited for business part-
tently employed by the six retailers surveyed in this research:
ners, meanwhile enjoying the pastries and ice cream sold by the
“service,” “reliability,” and “attractiveness.” This reflects firms' target-
restaurant.
ing of lower- to middle-class customer groups. With the exception of
We found the staff to be friendly, neat, well dressed in company
LR3, no other retailer pursues “top of the range” or “selectivity” posi-
uniforms, and in compliance with all restaurant protocols regarding
tioning strategies. In addition, none of the retailers use a “country of
the covering of hair when in the kitchen and wearing no jewelry (with
origin” positioning strategy. Incidentally, a comparison between indig-
the exception of a staff member wearing a wedding ring). The décor
enous firms (LR1, LR2, and LR3) and foreign firms (FR1, FR2, and
and furniture are excellent and fitting for a restaurant with warm
FR3) shows that while all indigenous firms employ “brand name”
colors, which the managers indicated was intended to create a cozy
strategies, foreign firms lead in the pursuit of “value for money” strat-
atmosphere in which business functions could be held and friends
egies. This shows that the competitive activities of indigenous and
and family could meet. The layout is attractive, complete with com-
foreign firms both serve the purpose of reaching the broader market
plementary paintings congruent with the theme of the restaurant.
and, consequently, achieving greater market share. The results also
Concerning the positioning strategy employed, interviews with
reveal how local retailers have embraced branding, further attesting
the managers hinted that because FR3 in the Accra Mall is the flag-
to the changing and competitive nature of the Ghanaian marketplace
ship store, the firm is keen on a “branding” strategy, as exemplified in
(Acheampong & Dana, 2017; Coffie, 2016). Further evidence of this
the emphasis on the brand name. To that extent, the branding of all
competition is seen in the case of LR3, an indigenous firm, which is
the items used by the customer—including napkins, cutlery, condi-
the only retailer specifically targeting the middle class. This is sup-
ments, bags, and even a flag of FR3’s logo—is emphasized.
ported by the LR3 manager who stressed, “We provide durable,
Managers were also keen on the “attractiveness” strategy and
widely recognized brand name products, excellent customer service,
stressed that this strategy was considered in the layout of the restau-
and constantly remodel our store's aesthetics to position ourselves as
rant. A junior manager revealed that the firm aggressively pursues a
the best perfumery store in Accra … we focus on middle- and upper-
service strategy by trying to ensure friendly, personal attention to
class purchasing groups and expatriates.”
customers and a hygienic environment in which to eat. A senior man-
All 15 managers emphasized their commitment to serving cus-
ager, who stressed attention to detail and an open communication
tomers at the highest level, and believe “service” is their key position-
channel between management and employees in order to engender a
ing strategy, even though other strategies, including “reliability” and
culture of friendliness, corroborated this. A majority of the customers
“attractiveness,” are prominently featured in some retailers' quests
interviewed shared the same sentiments about the restaurant's neat,
for competitive advantage and positions in the marketplace. The
hygienic, and friendly environment. All managers interviewed hinted
growing number of expatriates and middle- to high-income con-
at employing a “reliability” strategy. They claimed consistency in the
sumers in Accra, coupled with an increase in disposable income
flavor of the food, especially the peri-peri chicken, and that menus
among Ghanaians as a whole, support these findings (Acheampong &
BLANKSON ET
TABLE 1
9
AL.
Summary of firms' positioning strategies
most of the customers interviewed, thus preventing them from being
Positioning strategies
Selected retailers
attentive to the origin of the drugs. Furthermore, examination of con-
Indigenous firms
Foreign firms
gruence shows that seven out of eight cases are consistent among
FR1
FR2
FR3
the three populations.
*
*
*
6.3 | LR3
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
LR1
LR2
Service
*
*
Value for money
*
*
Reliability
*
*
Attractiveness
*
*
LR3
*
Top of the range
*
Country of origin
Brand name
Selectivity
*
Note: * denotes the employment of a positioning strategy.
“Attractiveness” is the only strategy that achieves congruence (one
out of eight) among the three populations. Based on an interview
with the CEO, this may be attributable to the fact that the layout and
flooring of the store is changed every five years. However, some variations exist in the strategies intended by management, perceived by
customers, or observed by researchers. Specifically, while managers
intend to employ six strategies, customers perceive only four strategies, two of which (“reliability” and “attractiveness”) are congruent
Dana, 2017; Coffie, 2014). As shown in Table 1, an asterisk (*) implies
with the intentions of the management. The other two, “top of the
that a certain strategy is employed by a retailer. The determination of
range” and “selectivity,” are perceived by customers due to the prices
strategy follows an inductive reasoning approach (Maxwell, 2005) as
of the products—which they claim are too high, but which the CEO
elaborated by Dubois and Gadde (2002), de Chernatony and Cottam
claims stem from “duty-free prices,” which allow a markup of about
(2009), Poulis et al. (2013), and Diwan (2016). Our approach has pre-
10%. Researcher observation, however, is consistent with the “top of
cedence as evidenced in Arnott's (1992) and Coffie's (2014, 2016)
the range” strategy perceived by customers, which may be due to the
research into management's employment of positioning strategies in
elegance in design and layout of the shop.
the services industry.
6.4 | FR1
6.1 | LR1
An analysis of the results from the three populations shows coher-
Data collected from managers, customers, and researchers' observa-
ence in the employment of three strategies (“service,” “reliability,”
tions were subjected to content analysis. Four strategies—“service,”
“value for money,” “reliability,” and “attractiveness”—are dominant and
fit all three populations. “Top of the range” and “branding” strategies
that were judged to be employed through covert and overt observation techniques were neither intended by managers nor perceived by
customers. Moreover, congruence occurs in six out of eight cases.
The notion that the CEO of this firm believes that advertising is
suited for low-income consumers is an interesting finding. Given the
vast array of advertising content and techniques that target all levels
of consumers (advertisements for luxury brands can be found practically everywhere), this executive's opinion regarding advertising
and “attractiveness”). This is consistent with the ways in which
retailers operating in the Accra Mall aim to position themselves in
order to win market share (Miles & Mangold, 2005). Researcher
observation, however, is not consistent with that of managers' intentions and customers' perceptions of a “value for money” strategy,
because in the view of the researchers, prices for soft copy prints
and multiple copies of hard prints are similar to market prices, despite
excellent service. There is congruence in seven (i.e., “top of the
range,” “service,” “reliability,” “attractiveness,” “country of origin,”
“branding,” and “selectivity”) out of eight cases, clearly demonstrating
that FR1 Store is well positioned in the Ghanaian marketplace.
appears quite shortsighted.
6.5 | FR2
6.2 | LR2
Content analysis of the results from the three populations shows con-
Data collected from each population (managers, customers, and
“reliability,” “attractiveness,” and “branding”). No variations exist in man-
researchers' observation) were subjected to content analysis
agers' intentions, customers' perceived practice, or researchers' obser-
(de Chernatony & Cottam, 2009). In view of the limitation of journal
vations. This is attributable to the fact that FR2 is a global company
space, only brief summaries of the discussion are presented. A
with many years of marketing experience and thus has perfected its
detailed summary of the results for all six firms is available upon
ability to clearly communicate and place its desired positioning strate-
request from the authors. Five strategies (“service,” “value for
gies in the minds of its target customers (Ries & Trout, 2001; Trout,
money,” “reliability,” “attractiveness,” and “branding”) are congruent
2012). To that end, congruence occurs in eight out of eight cases.
gruence and dominance of five strategies (“service,” “value for money,”
across all three populations and are dominant in the positioning activities of the LR2. Managers' intended “country of origin” strategy is
neither perceived by customers of the shop nor observed by the
6.6 | FR3
researchers. This is because visibility or communication of the strat-
Content analysis of the results from the three populations uncovers
egy is nonexistent in print media (posters), which are accessible to
consistency in the pursuit of four strategies (“service,” “reliability,”
most consumers. The “mall effect” perhaps clouds the judgment of
“attractiveness,” and “branding”), with variations in researchers'
10
BLANKSON ET AL.
observations. Further analysis shows fit in seven out of eight cases.
business and marketing. As such, this study adds to the generalizabil-
Ries and Trout (2001) suggest that the key to success is being the
ity of the concept of positioning in emerging sub-Saharan African
leader in any category in the mind of the prospective customers. Care
economies (Coffie, 2014; Mmieh & Owusu-Frimpong, 2009). To an
must be taken with the “value for money” strategy espoused by man-
extent, the conclusion that Western positioning strategies apply in
agers and customers but not practiced as observed by the
Ghana has precedence in the findings of Blankson, Cheng, and Spears
researchers; however, “value for money” is essential for a restaurant
(2007, p. 484), who concluded that in established open markets
attempting to position itself in a very competitive Ghanaian market-
(e.g., United States and Taiwan) and liberalized developing markets
place. The management is proactive in avoiding the “country of ori-
(e.g., Ghana), there appear to be no differences in consumers' deci-
gin” positioning strategy due to the confusion it creates. While the
sions regarding the selection of banks.
brand name and flagship menu are of Portuguese origin, the franchise
originated in South Africa.
The study concludes that the key positioning strategies consistently employed by retailers in the Ghanaian marketplace are
“service,” “reliability,” and “attractiveness.” In the case of indigenous
retailers, LR1 and LR2 have convergence in their use of positioning
7 | C O NC L U S I O N A ND I M P L I C A T I O N S
strategies
(i.e.,
“service,”
“value
for
money,”
“reliability,”
“attractiveness,” and “brand name”). LR3, on the other hand, employs
The current sub-Saharan business environment, especially Ghana, is
“top of the range,” “service,” “reliability,” “attractiveness,” “brand
very different from that of over 20 years ago (Acheampong & Dana,
name,” and “selectivity.” This reveals clear disparity in the positioning
2017; Coffie, 2016; World Bank, 2014). Therefore, determining how
strategies employed by LR3 as compared to LR2 and LR1. Moreover,
retailers pursue positioning strategies constitutes an important and
there is coherence in customer perceptions for positioning strategies
opportune research task. The findings reveal embedded subterranean
employed by LR1 and LR2, which is not the case for LR3. To a
marketing practices akin to the application of the concept of position-
degree, these findings show a lack of cohesion in positioning activi-
ing (Coffie, 2016; Coffie & Owusu-Frimpong, 2014; de Chernatony &
ties within the indigenous retail category.
Cottam, 2009). This research comes at a time in which the sub-Saharan
Concerning foreign retailers, the lack of emphasis on FR1’s brand
marketplace is undergoing an influx of foreign retailers and foreign
name in the minds of customers may have implications for brand rec-
goods, as well as an increase in the size of the middle class. Ghana is at
ognition for the other branches across the city, as expressed by man-
the forefront of these changes and thus represents an opportune
agement. Likewise, the confusion about the “country of origin”
research setting in which to investigate positioning activities.
strategy emanating from the “branding” strategy (as seen in brand
In view of the gaps in the extant literature, the main purpose of
name and menu) for FR3, as well as confusion among customers as
this exploratory study was to examine the employment of positioning
to whether FR3 is a fast-food chain or fine-dining restaurant due to
strategies in specific indigenous and foreign retailer contexts, and
an overlap in the menu and the average time of order fulfillment,
then to determine congruence in the employment of positioning
have implications for positioning.
strategies among management (intended/presumed practice), cus-
Overall, relative to indigenous retailers, foreign retailers achieve
tomers (perceived practice), and researcher observations (actual prac-
high congruence in positioning activities (see also Diwan, 2016). This
tice). The importance of the determination of congruence is
finding is consistent with Appiah-Adu's (1999) results, which found
evidenced in Diwan's (2016) recent study in the Indian car brand con-
that although domestic firms achieved high business performance,
text. As Diwan (2016, p. 320) puts it, although positioning is exer-
they were relatively less competitive than foreign firms. Appiah-Adu
cised by every company, it is more important to evaluate the degree
suggested that domestic firms needed to consider positioning them-
to which the desired positioning is accomplished in terms of man-
selves with the long term in mind in order to survive in Ghana's
agers' desired positioning strategies, actual firm positioning practices,
increasingly competitive marketplace, especially with the increase in
and consumers' perceptions of positioning strategies. Additionally,
the presence of international retailers.
this article examined whether a typology of positioning strategies
The interviews and observations confirm that only FR2 employs
developed in a Western country (i.e., the United Kingdom) is applica-
advertising in print and digital media, and, as such, the firm achieves
ble in sub-Saharan Africa and, specifically, Ghana.
100% congruence in positioning. A challenging market environment
The purpose of this research and its findings has a strong reso-
calls for managers to be proactive and to emphasize positioning strate-
nance with Schuiling and Kapferer's (2004) research, which sought to
gies that they intend to follow in marketing communications while
better understand the real differences between local and interna-
ensuring that those efforts are consistent with perceptions of target
tional brands. Specifically, the results of this study support the pur-
markets (Oyedele, Minor, & Ghanem, 2009). In support, Burton and
poses of the study and go further by showing that a Western-
Easingwood (2006) claim that a firm's communication of its positioning
developed typology of positioning strategies is applicable in a sub-
strategy projects an image, communicated category, or emotional sell-
Saharan African economy such as Ghana: a lower-middle-income
ing proposition. FR1 likewise relies on its sponsorship activities of sec-
emerging sub-Saharan African economy (Appiah-Adu, 1999; Coffie,
ondary and tertiary institutions' entertainment programs to provide
2014). Indigenous and foreign retailers employ varying positioning
communications about the firm. The positioning strategies identified in
strategies in the marketplace, further complementing the utility of
this study are the most favored in the study setting (Appendix I), and
the Western-developed typology of positioning strategies in the Gha-
to that end, the recommendation is for managers to capitalize on these
naian marketplace. Globalization has allowed for similar practices of
strategies (see also Appiah-Adu, 1999; Diwan, 2016).
BLANKSON ET
11
AL.
7.1 | Managerial implications
Unlike the United States, where malls are struggling to attract customers (Birkner, 2015), in Ghana and across sub-Saharan Africa, malls
are transforming local economies and attracting foreign direct investments (Reardon et al., 2003). Based on the results presented in this
study, some managerial implications are put forward. Managers may
proactively pursue the following two sets of tactics on the basis of
the findings: (a) attitude change, in which managers may direct efforts
aimed at altering or repositioning consumer beliefs about or perceptions of retailer offerings by using the strategies put forward in this
research in day-to-day and long-term marketing practices (Oyedele
et al., 2009); and/or (b) brand change, in which managers may symbolically or actually modify the offerings' attributes to reflect the
positioning strategies identified in this study.
Managers may employ these tactics in marketing communications
(e.g., advertising) that reflect, in one way or another, the contemporary
local cultural values, location, situation, casting, lighting, style, photographs, endorsers, and tone used in each commercial or other type of
promotion (Oyedele et al., 2009). This study has, to a degree,
responded to Coffie and Owusu-Frimpong's (2014) and Coffie's (2014)
call for future research directed at increasing positioning research and
generalizability through continued testing and validation using different
sample groups, contexts, and, more specifically, emerging sub-Saharan
African economies. The study offers the opportunity to generalize the
adopted typology to developing countries and provides normative
guidelines for managers in these economies.
For foreign retail firms seeking to do business in sub-Saharan
Africa and Ghana in particular, this study offers a snapshot of the current environment of retailer positioning in the country. While the
examined retailers represent only a small fraction of indigenous and
foreign retailing activity in Ghana, the findings demonstrate that
retailers do engage in positioning activities (Coffie, 2014, 2016) and
that foreign retailers appear to be stronger at positioning than their
indigenous counterparts. This finding is attributed to foreign retailers'
comparative consistency and congruence in their positioning activities and their resource advantage over indigenous firms. As such, for-
African developing economy of Ghana, it is fair to acknowledge the
study's descriptive and exploratory foundation; the results should be
viewed as preamble to a rich study aimed at providing managerial
guidelines for foreign and indigenous retailers. In addition, although it
was beyond the scope of this paper, a longitudinal study of positioning strategies employed by foreign and indigenous firms in other
retail sectors such as restaurants, banks, and other service industries
in other sub-Saharan African countries is recommended. Rigorous triangulated researches examining a specific industry domain should be
considered by future researchers. Such studies will provide ample
information about positioning activities and will subsequently
enhance suggestions for managerial guidelines.
Another limitation is that the investigators did not collect specific
demographic information about the participants in terms of educational background, marital status, and employment status. We did not
request such identifying information so that the required time of participation would be shorter and the procedure would feel less invasive. Rather, the researchers sought general information, including
nationality and country of residence. Future studies should seek to
address this limitation by developing a stronger set of identifying
demographic variables so that additional insights can be gleaned.
We also acknowledge that this study deals with the aggregate
behaviors of a selected number of retailers, rendering the research
difficult to generalize across all retailers in Ghana and sub-Saharan
Africa, let alone retailers in all developing economies. However, the
goal of this study was specifically aimed at studying positioning strategies and congruence in typical and specific firm contexts (i.e., using
a case study approach) (see also Diwan, 2016) and testing the applicability of a Western-developed typology of positioning strategies,
which has been overlooked in positioning research in sub-Saharan
Africa, and Ghana in particular. Continued refinement, replication,
and validation of this study is important (Diwan, 2016; Peterson &
Merunka, 2014) and could include a comparison of retailers from several developing economies, as in the case of Oyedele et al. (2009)
investigation of advertising appeals and cultural values of emerging
consumer markets in South Africa, Nigeria, and Ghana.
eign retailers seeking to do business in Ghana must enter with a
consistent positioning strategy that achieves congruence. The latter
will positively affect customer perceptions, thereby attracting and
retaining Ghanaian customers. Indigenous firms must capitalize on
consistent employment and congruence in positioning strategies and
invest in resources, including store expansion, advertising, and
promotion-inducing efforts to positively affect customer perceptions
and increase market share, ultimately leading to competitive advantage (de Chernatony & Segal-Horne, 2001).
ACKNOWLEDGMENTS
We thank the editor, Mary Teagarden, and Suzy Howell, TIBR managing editor, for their encouragement and suggestions throughout the
review process. We are indebted to the anonymous reviewers for
their close reading, constructive criticisms, and suggestions on several
versions of this manuscript. We thank all the customers who participated in the interviews at the Accra Mall. We are very grateful to the
participating managers at the Accra Mall for their time and insight
during the data collection exercise. The first author thanks the Uni-
7.2 | Limitations and future research directions
versity of North Texas for support during his faculty development
As with most social science studies employing qualitative and cross-
leave in Ghana. This article has benefited greatly from Dr. Caitlin
sectional methods, this article has limitations. The results should thus
Pryor's close editorial cleaning. We thank her for all her efforts.
form the basis of ongoing (see also Diwan, 2016) and more robust triangulated researches using qualitative and quantitative methods.
While the results reflect indigenous and foreign retailers' positioning
ORCID
strategies and congruence in positioning activities in the sub-Saharan
Charles Blankson
http://orcid.org/0000-0002-5948-683X
12
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AUTHOR'S BIOGRAPHIES
Charles Blankson (PhD, Kingston University, London, United
Kingdom) is an associate professor of marketing in the Department of Marketing, Logistics, and Operations Management, College of Business, University of North Texas, Denton, Texas.
Dr. Blankson's current research interests include marketing
strategy—positioning and brand management, industrial/B2B
marketing, small business marketing, subsistence marketplaces
and poverty alleviation, and international marketing.
Michael Nkrumah holds a master of science degree in marketing
and a postgraduate certificate in business administration from
Ghana Institute of Management and Public Administration (GIMPA),
Accra, Ghana. He is an adjunct lecturer in marketing and management with GIMPA Business School. Michael's research interests
include positioning strategies for service brands and B2B firms, religious influence on customer orientation and perceptions of value,
brand love, and corporate reputation. He manages a start-up called
tinyDAVID with its flagship solution of SnooCODE, an addressing
system for individuals and businesses across the developing world.
Gertrude Opare holds a master of science degree in business
administration in marketing management from Ghana Institute of
Management and Public Administration (GIMPA), Accra, Ghana.
Gertrude is an adjunct lecturer in marketing at GIMPA Business
School. She has co-authored and presented papers at the Academy of Marketing Science World Marketing Congress in Paris,
France; the Academy of Marketing Science Annual Conference in
Denver, Colorado, and the 14th Annual International Academy of
African Business and Development Conference in Accra, Ghana.
She is the president and cofounder of TruEd Consult, an information technology company in Accra, Ghana.
Seth Ketron (PhD, University of North Texas, Denton, Texas) is
an assistant professor of marketing in the Department of Marketing and Supply Chain Management, College of Business, East Carolina University, Greenville, North Carolina. Dr. Ketron focuses
his research on retailing and consumer psychology. Recent
research interests include various situational influences on size
perceptions;
the role of
anthropomorphism in
consumer
responses to sustainability communications and service failures;
responses to chemical ingredients in foods; the influence of social
factors on healthy behavior; and sound symbolism.
How to cite this article: Blankson C, Nkrumah MF, Opare G,
Ketron S. Positioning strategies and congruence in the positioning of high-end indigenous and foreign retailers in sub-Saharan
Africa: An illustration from Ghana. Thunderbird International
Business Review. 2018;1–14. https://doi.org/10.1002/tie.21960
14
BLANKSON ET AL.
Appendix I: Typology of positioning strategies
Appendix III: Characteristics of customers interviewed
Customer’s
name@
Typology of positioning strategies
Strategy 1 Top of the range:
Strategy 5 Attractiveness: good
upper class, top
aesthetics, attractive,
of the range,
cool, elegant
status,
prestigious, posh
Strategy 2 Service: impressive
service, personal
attention,
consider people
as important,
friendly service
Strategy 6 Country of origin:
patriotism, country of
origin, youth market
Strategy 7 Branding: the brand
Strategy 3 Value for money:
reasonable price,
name, leaders in the
value for money,
market, extra features,
affordability
choice, wide range,
expensive
Strategy 4 Reliability:
durability,
warranty, safety,
reliability
Strategy 8 Selectivity: discriminatory
in selection of
customers, selective in
choice of customers,
high principles
Source: Blankson and Kalafatis (2004)
Construct
Validity
Case study tactic
Use extant
typology of
positioning
strategy
Systematic
combining
Customer’s country of
residence
Age*
(Gender)
1
Patrick
Ghanaian
Ghana
70 (Male)
2
Abena Liz
Ghanaian
Ghana
30 (Female)
3
Alan
Ghanaian
Ghana
50 (Male)
4
Georgina
Ghanaian
Ghana
24 (Female)
5
Papa Nana
Ghanaian
London, United Kingdom 65 (Male)
6
Love
Ghanaian
London, United Kingdom 55 (Female)
7
Aku
Ghanaian
Ghana
18 (Female)
8
Kwame
Ghanaian
Ghana
20 (Male)
9
Mama Pat
Ghanaian
Amsterdam, Netherlands 30 (Female)
10 Papa
Ghanaian
Amsterdam, Netherlands 35 (Male)
11 Nana
Ghanaian
Ghana
25 (Male)
12 Koshie
Ghanaian
Ghana
22 (Female)
13 Ms. Abroad
Ghanaian
Queens, New York city,
United States
40 (Female)
14 Mr. Abroad
Ghanaian
Queens, New York city,
United States
52 (Male)
15 Ms. Asempa
Ghanaian
Ghana
20 (Female)
16 Ms. Ayo
Nigerian
Ghana
35 (Female)
17 Baaba
Ghanaian
Dallas, Texas, United
States
40 (Female)
18 Opaning
Kwame
Ghanaian
Ghana
75 (Male)
19 Paa Burger
Ghanaian
Paris, France
50 (Male)
20 Mame Asi
Ghanaian
Ghana
30 (Female)
21 Abeiku
Ghanaian
Basel, Switzerland
50 (Male)
22 George
Nigerian
Ghana
60 (Male)
Combined understanding of
literature on the concept of
positioning and positioning
strategies with validation tests
in Ghana.
23 Kofi
Ghanaian
Bronx, New York city,
United States
55 (Male)
24 Wofa
Ghanaian
Ghana
30 (Male)
25 Ante Abena
Ghanaian
Ghana
40 (Female)
Continuously assessed the
relationship between the
concept of positioning and
empirical findings emanating
from interviews and
observation. In addition, three
academics, the CEO of the
three indigenous firms, and
three managers of the foreign
firms interviewed reviewed
drafts of the paper.
26 Kofi Mensah
Ghanaian
Hamburg, Germany
50 (Male)
27 Ante Agnes
Ghanaian
Ghana
38 (Female)
28 Mr. Salifu
Ghanaian
Liverpool, United
Kingdom
65 (Male)
29 Ms. Mensah
Ghanaian
Paris, France
45 (Female)
30 Mama Abaka
Ghanaian
Ghana
30 (Female)
Appendix II: Reliability and validity of case study
approach
Test
Customer’s
nationality
How the tactic was fulfilled
Internal
Validity
Pattern matching
Researchers checked to ensure
that inferences they made are
airtight.
Reliability
Use case study
protocol
Documented procedures on the
steps and measures taken
throughout the data collection
and analysis. In addition, all
ideas and thoughts pertinent
to the study were noted for
review and revision if
necessary.
Ghanaian
Sydney, Australia
55 (Male)
32 Akosua
Ghanaian
Ghana
45 (Female)
Notes: @ In order to protect the anonymity of customers first names or
pseudonyms are used to describe interviewees;
*
Adapted from Sweeney and Chew (2002, p. 30) and Dubois and Gadde
(2002, p. 555-559).
31 Papa Burger
= researchers’ estimated age.