Development of empirically-based customer-derived positioning taxonomy for FMCG sector in the Indian emerging market

Abstract

Purpose

The purpose of this paper is to develop and validate a positioning taxonomy for the FMCG sector in the Indian emerging market, because a review of the literature shows that existing positioning typologies/taxonomies are based on managerial perspectives rather than consumer/customer perceptions and have only been developed for advanced countries. This study helps to solve this problem by creating a positioning taxonomy for emerging markets.

Design/methodology/approach

In three phases, this study uses a systematic procedure for developing and validating a scale. Phase 1 consists of item generation and selection based on a review of the literature, focus group sessions and expert opinion. The second phase entails scale refinement via exploratory factor analysis. Confirmatory factor analysis is used in Phase 3 to establish convergent, discriminant and nomological validity.

Findings

This study’s findings include a consumer-derived taxonomy of positioning strategies that have been tested and validated. There were four distinct positioning strategies that emerged: value for money, being local, premiumization and product attributes.

Research limitations/implications

The main implication of this paper is to support researchers in developing and validating measurement scales. The limitations include target populations, choice of industry and geography and cross-sectional time horizon of this study.

Practical implications

This study’s practical implications are the four positioning strategies that FMCG managers, advertising and marketing experts in the emerging Indian market could adopt to position their fast moving consumer goods (FMCG) products to achieve the overall success of their organizations.

Social implications

Researchers are provided step-by-step guidance on how to develop and validate a measurement scale.

Originality/value

This study adds to the marketing literature by providing both a solid theoretical foundation and a validated instrument for the operationalization of positioning strategies.

Citation

Saqib, N. and Shah, A.M. (2022), "Development of empirically-based customer-derived positioning taxonomy for FMCG sector in the Indian emerging market", Young Consumers, Vol. 23 No. 2, pp. 233-254. https://doi.org/10.1108/YC-11-2020-1257