Isolating strategy effectiveness of brands in an emerging market: A choice modeling approach

Abstract

Emerging markets are often characterized by the presence of foreign brands and local brands in a product category. These brands tend to get positioned differently in the market by utilizing marketing mix elements with different focuses on the functional, image, or value nature of the brands. We utilize a choice model specification quite different from the commonly used types, to identify whether a particular brand benefits more from a certain type of marketing mix emphasis than from another type of emphasis. The model enables us to evaluate main and synergistic effects of mix elements on brand market shares. In an empirical analysis of brands in an emerging market, we found that international brands tended to benefit from highlighting the image attributes of the brands, while local brands benefited more from a focus on brand functionality. We also found significant variations in the saliency of different positioning foci across different market segments characterized by demographic variables. The methodology used in our research can also be utilized for identifying appropriate brand-specific marketing strategies for multiple brands in a variety of consumer markets.