An Exploratory Study of Positioning Strategies Employed by Firms in South Africa: A Content Analysis of Print and Radio Advertisements Charles Blankson, Ph.D. Introduction and Literature Review • This paper assesses the employment of positioning strategies by South African firms. • In particular, given the criticisms of existing positioning typologies (Kalafatis et al., 2000), the study attempts to validate a newly developed consumer/customer-derived generic positioning typology in the South African market environment. Introduction and Literature Review contd. • While the study of marketing practices and market orientation in Africa has received attention by marketing scholars, positioning, which is considered to be one of the cornerstones of modern marketing management seems to have eluded the interest of marketing researchers interested in African marketing/business operation. Introduction and Literature Review contd. • Despite the importance of positioning in international marketing (Alden et. al., 1999), positioning research appears to be prevalent in Western Europe, North America and Asia, to the exclusion of African markets. • Relatively weak economies, businesses, management, and negative perceptions about governance in Africa. Introduction and Literature Review contd. • Notwithstanding, following trade liberalization and democratic governance by some countries (e.g. Ghana) and the dismantling of apartheid system of government by South Africa, there has been effort on the parts of some African governments to embark upon development projects, creation of investment/business climate and image building, i.e., positioning. • Such a climate paves the way for positioning activities by firms. Introduction and Literature Review contd. • While majority of African countries, south of the Sahara are underdeveloped, South Africa is recognized as an open/competitive market and a developed country. • Consequently, it is believed that positioning activities will be a priority amongst South African Firms, in search of competitive advantage. Introduction and Literature Review contd. • Moreover, due to criticisms raised about extant positioning typologies (Kalafatis et. al., 2000), it was decided to adopt a newly developed consumer/customerderived positioning typology (Blankson and Kalafatis, 2000) and then validate it in the South African market environment. Research Aim and Objectives • To assess the validity of a newly developed positioning typology using the South African market as an illustration. • The objectives are to: • Identify South African firms’ positioning strategies, and • Determine the validity of a newly developed positioning typology. Research Methodology • Two main channels of communicating positioning strategies (i.e., advertisements - ads in (a) newspapers and (b) radio) of offerings were considered. • In the case of newspapers, a convenient sample of data (based on availability) were collected between September 1997 through September 1998. • The data for radio were collected between July to August 1998. Analytical Approach • Content analysis (Holsti, 1969; Morris, 1994) was employed in analyzing positioning deliberation (i.e., the use of positioning strategies) in newspapers and radio. • Analysis involved (a) the character (overall meaning), (b) nature of the ad in a photo, (c) the character of the language in terms of rhetorical focus, (d) written jargons, (e) the social situations and behaviors displayed in the ad. • Coding procedure: Blankson and Kalafatis (2000) positioning typology. • Reliability: Inter-judge reliability test (between researcher and a student checker) revealed 80% agreement in all cases (Kassarjian, 1977). Results (Positioning Strategies from Newspapers) Positioning Frequency Strategies The Brand 105 Name Attractiveness 75 Percentage Rank Residual 70 1 58.0 50 2 28.0 Value for money Top of the range Services 47 32 3 .0 38 26 4 -9.0 33 22 5 -14.0 Reliability Social class 33 27 22 18 5 6 -14.0 -20.0 Country of origin 18 12 7 -29.0 Results (Positioning Strategies from Radio) Positioning Strategies The Brand Name Services Frequency Percentage Rank Residual 43 52 1 26.1 23 28 2 6.1 Reliability 22 27 3 5.1 Value for 16 money Attractiveness 13 20 4 .9 16 5 -3.9 Top of the range Country of origin Social class 7 9 6 -9.9 6 7 7 -10.9 5 6 8 -11.9 Discussion • Out of the eight positioning strategies investigated in newspapers: • (1) The Brand Name and (2) Attractiveness ( = 124.723; df = 7; sig. = 0.000) are the most preferred by firms. • As for radio, only one strategy (The Brand Name: = 66.304; df = 7; sig. = 0.000) is revealed as the most employed. Discussion contd. • To a degree, it can be inferred that firms are not proactive and perhaps, lack clarity in their positioning activities. • Moreover, despite the increasing competition in many African markets (Dadzie et al., 1988), positioning activities in South Africa appear not to be aggressively pursued. Discussion contd. • It appears that firms in South Africa use two pronged approaches in their positioning: • (1) attract a large target market(s) and (2) pursue strategies aimed at attracting the top purchasing clientele. • It may be worth noting that the use/employment of specific positioning strategies may be linked with firms’ level of market orientation (Hooley et al., 1998). Discussion contd. • This research has made an attempt to validate a newly developed positioning typology. • The study has provided an insight into the employment of positioning strategies by South African firms. • In line with our expectations, this study lends tentative support to the relevance of the concept of positioning in the South African market. • The study is exploratory and as such the results should be interpreted carefully.