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How Mega Brands in Kenya Are Able to Stay Afloat.

Joy Waweru | 3 months ago
How Mega Brands in Kenya Are Able to Stay Afloat. PHOTO:COURTESY
How Mega Brands in Kenya Are Able to Stay Afloat. PHOTO:COURTESY

 With the increase in entrepreneurs and suppliers, the market is growing extremely competitive. This phenomenon compels companies to constantly devise strategies to compete favorably with competitors and to stay buoyant.

•Market segmentation-profiling customers according to pre-determined categories to adequately cater to each category’s need. The segmentation strategies used include demographical, psychological, and geographical.

•Demographical strategies include variables such as age, gender, income, religion, race, and nationality.

•Psychological segmentation takes into account consumer buying behaviour.

•Brand position-Positioning is defined as the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Positioning is all about perception, that is, what the public associates your company with.

Strong product portfolio-building a firm reputation in the market. Product portfolio means all products launched from the inception of the company to the products launched currently.

Customer satisfaction-due to the high performance and superior quality of goods brands manage to maintain the loyalty of their customers.

Mega brands erect strong barriers of entry to competing businesses by capturing customer loyalty. In a sense they dominate the market becoming monopolies.

Furthermore, due to high product demand, big companies leverage economies of scale and therefore produce goods at lower costs and consequently maintain a fair selling price.

Diversification of products-This is a competitive strategy employed to help the company always stay afloat. In the likely event of loss or low season in one of the products/services, the company is able to ride on selling the other services/products to stay afloat. The complementary business majorly plays a supportive function.

Well-defined distribution strategy utilizing dealership networks, authorized showrooms, direct selling, service centers, and e-commerce sites to sell products.

Consistent production of superior-quality goods-with such an informed population, consumers are looking more into quality than the price point.

Convenience and ease of accessibility-A key determining factor for most consumers when purchasing a product is how easily they can access it.

Aggressive advertising and staff training to increase brand awareness and brand penetration.

Minimizing production costs through the competitive sourcing of raw materials. The sourcing of products is done through a strictly controlled audited process.

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