UNIVERSITY OF DODOMA

MASTER OF BUSINESS ADMINISTRATION PROGRAMME

ASSESSMENT OF FACTORS AFFECTING BRAND POSITIONING IN TANZANIA

BREWERIES LIMITED

CONCEPT NOTE
Introduction

Positioning has existed for ages as Trout, (1996) stresses that the notion of positioning was first
used back in 1969. Originally, the term was used in the context of the multitude of market
information targeted at the audience. Too much market information triggered off a trend to omit
or delete information which fails to forge instant and powerful associations. In the decoding
process, this information was deemed unimportant (Janiszewska and Insch, 2012).

In this context, the concept of positioning referred primarily to the act of identifying a market
niche for a brand, product or service utilizing traditional marketing placement strategies (i.e.
price, promotion, distribution, packaging, and competition) (Musau, 2012). Also, positioning is
defined as the way by which the marketers create impression in the customers mind (Kotler,
2003). So all in all Positioning is the way a company wants customers to perceive, think and feel
about its brand versus competitive entries (Janiszewska and Insch, 2012).

According to such a perspective brand positioning is of a high level of subjectivity since it the
conceptual place you want to own in the target consumer’s mind- the benefits you want them to
think of when they think of your brand. The concept of “brand positioning” first surfaced back
in the 1960s when two successful Madison Avenue ad executives, Jack Trout and Al Ries, wrote
a highly influential little book entitled Positioning: The Battle for Your Mind. In it, they built a
case for establishing a key feature or benefit for a company that, through advertising, would
become closely associated with that business in the minds of consumers, helping turn them into
customers (Frederiksen, 2017). An effective brand positioning strategy will maximize customer
relevancy and competitive distinctiveness, in maximizing brand value (EquiBrand Consulting,
2018). Al Ries and Trout (2011) further asserts that brand positioning refers to a battle for the
heart and mind of the consumer.

There are three basic types of brand positioning which form the foundation of the positioning
strategy: functional positioning, symbolic positioning and positioning through experience.
Functional positioning refers primarily to functional, differentiating brand features of rational
nature. This type of positioning allows to develop the brand idea which can solve a specific
problem of the target group. Most frequently, functional positioning in the context of a place
brand is effective with reference to the target group: investors or entrepreneurs. However, if an
administrative unit has at its disposal unique assets resulting from e.g. the geographic location,
infrastructure or natural resources, functional positioning may also be successfully implemented
with reference to the remaining groups of stakeholders: locals and tourists (Janiszewska and
Insch, 2012).

On the other hand, symbolic positioning refers primarily to the target group’s emotions. A brand
based on this type of positioning focuses on enhancing its image, identity, affinity, social
acceptance and life fulfilment of the target group. Therefore, the brand provides the audience
with emotional support. Th is type of positioning may also be employed in the concept of a place
brand.

Th e third type of positioning is based on the target group’s experience accumulated in contacts
with a brand. Th is contact may be sensuous (referring to the senses) or cognitive (referring to
the need of knowledge and development). Brand experience seems of special importance in the
context of territorial brands.

The Key objectives of brand positioning include firstly, relevance where Customers must find
the brand appealing. If not, the brand won’t make it into the consideration set, regardless of how
differentiated or credible it is. Secondly, differentiation which is a critical and the key driver of
positioning success. The brand must be unique vs. competitive offerings. Lastly
credibility/attainability where if you cannot credibly provide the offering, the customer is left
with an empty promise (EquiBrand Consulting, 2018).

Brand Positioning informs a company on how it can effectively compete in a market

place. These factors combined created a new ecosystem that would lead to the new innovative
ways of doing business, amongst them strategies. These factors combined created a new
ecosystem that would lead to the new innovative ways of doing business, amongst them
strategies Semans (2010) notes that the following parameters can be used when the
management wishes to establish how strong their brand is: relevance, differentiation
delivery and communication.

Well when it comes to Tanzania Breweries, it is the leading manufacturer of the beer products in
the country and the main competitor to the market is Serengeti Breweries. Although, there are
only two big players in the market, competition is intensified in almost all respects. The market
is potentially and predominantly dominated by these two players TBL & SBL. In essence, this
industry is heavily competitive despite being having fewer players in the market (Swallehe,
2017)

Tanzania Breweries Limited, also referred to as TBL, is the oldest and largest brewing company
in Tanzania principally engaged in the production, distribution and sale of malt beer, non-
alcoholic malt beverages and alcoholic fruit beverages in Tanzania.

Tanzania Breweries Limited was founded in 1933 as Tanganyika Breweries in Tanganyika (now
part of Tanzania). Tanganyika Breweries was acquired by Nairobi based Kenya Breweries
Limited (KBL) in 1935. In 1936, KBL and Tanganyika Breweries operations were merged
leading to the creation of the East African Breweries Limited (EABL) (East African Breweries
Limited, 2017)

In 2010, EABL ended this agreement with TBL with the option to buy a 51% stake in Serengeti
Breweries, the second-biggest beer maker in Tanzania, and disposed its 20% stake in TBL for
$71.5 million through a secondary offer on the DSE in 2011(Ng’wanakilala, 2011).

According to Tanzania Breweries Limited 2012/13 Annual Report, On March 14, 2013, the TBL
acquired 60% of the share capital of Dar es Salaam based Darbrew Limited for TShs 8,816
Million and obtained control of the company. As at March 31, 2013, TBL had a 74% market
share of alcoholic beverages in Tanzania and was a major exporter of beer to Nile Breweries
Limited of Uganda, Crown Beverage Limited of Kenya and Zambia Breweries Limited of
Zambia all subsidiaries of SABMiller. With such a key position that Tanzania Breweries Limited
holds in the industry, brand positioning becomes an important area of study for Tanzania
Breweries Limited (Tanzania Breweries Limited 2012/13 Annual Report, 2013).

Statement of the problem

Possession of a solid brand position enables the firm to; set itself apart from the competition,
focus on a specific target market, drive further service development and pricing, fuels more
effective, creative decision-making, and lastly it helps provide tools to win more clients
(Frederiksen, 2017). Davis (2000) emphasizes the strategic significance of brand positioning as
the basis for further decisions on brand management Conversely Frederiksen, (2017) asserts that
when the firm struggles with closing new business or professionals don’t know how to describe
the benefits of working with the firm, they are probably dealing with the symptoms of a weak
brand positioning.

Due to the key importance of brand position, several studies have been carried out and these
studies reveal contextual, methodological and conceptual gaps as stated by Muchiri, (2018).
These studies include; The effectiveness of brand positioning depends on the commitment of
people towards that particular brand. The influences of culture affect four key brand management
elements which are Brand Cleverness, Brand Customer Oriented, Brand Self Relevance and
Social Responsibility (Hanna, and Rowley, 2008). Brand positioning plays an extremely
important role in developing customer relationships and deciding/figuring out firm performance
(GS, 2011). Srivastava (2018) in his study of factor analysis to determine the effect of brand
positioning of lubricant on consumer perception noted that the factors included; product
trustworthiness which was a combination of variables credibility, reputation, innovativeness and
commitment. Secondly factor is product quality which is a combination of variables quality,
superiority and reliability. Thirdly marketing strategy which was a combination of variables
advertising, packaging and promotion and lastly accessibility which was a combination of
variables price, availability and purchasing. Gitau (2010) established that brand names, customer
experience, communication channels and packaging affected brand positioning in Kenya.

However, when it comes to the breweries, it is still unclear on factors affecting brand positioning
in Tanzania breweries limited due little no study carried out either in the breweries or
specifically in the Tanzania breweries limited. This study therefore seeks to fill the research-gap
by assessing of factors affecting brand positioning using in Tanzania breweries limited as the
case study.

1.3 Research Objectives

1.3.1 General Objective

The main objective of the study is to assess the factors affecting brand positioning in Tanzania
breweries limited.

Specific objectives
 i. To examine the effect of Brand packaging on brand positioning in Tanzania breweries
limited.
ii. To find out the effect of communication channels on brand positioning in Tanzania
breweries limited.
iii. To examine the effect of Brand Names on brand positioning in Tanzania breweries
limited.

Research questions
The study is set forth to answer the following research questions;

i. What is the effect of Brand packaging on brand positioning in Tanzania breweries

limited?

ii. What is the effect of communication channels on brand positioning in Tanzania breweries
limited?

iii. What is the effect of Brand Names on brand positioning in Tanzania breweries limited?

Significance of the study

The study will have the following contributions to organization’s performance, theory and to
other researchers.

i. The research will broaden up the existing literature in similar area of study.
ii. The research will be useful to the organization itself and even to other external users such
as general public.
iii. The gaps identified in the research will create a footstep to potential researchers who will
be interested in undertaking research on the same subject matter of inquiry.
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