The Competitivenes of Brand of Consumer Product in Cambodia- Kao Kveng Hong

7/27/2019 The Competitivenes of Brand of Consumer Product in Cambodia- Kao Kveng Hong

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brand image also are considered, theimplementation of PLC strategies may cause adecline in long-run market performance (Park, etal., 1986) 1.In consumer behavior research, a considerableamount of attention has been given to the construct

of brand personality, which refers to the set of human characteristics associated with a brand(Aaker, 1997). Researchers have focused on howthe personality of a brand enables a consumer toexpress his or her own self (Belk, 1988), an idealself (Malhotra, 1988), or specific dimensions of theself (Kleine, Kleine, and Kernan, 1993) throughthe use of a brand. Practitioners view it as a keyway to differentiate a brand in a product category(Halliday, 1996) as a common denominator thatcan be used to market a brand across cultures(Plummer, 1985).

Despite the important relationship between a brand s image and its market performance, limitedresearch has been carried out in small emergingmarkets. Further, research on personality and thesymbolic use of brands more generally hasremained limited due to the lack of consensusregarding what brand personality really is.

LITERATURE REVIEW

BRAND COMPETITIVENESS

Brand competitiveness is considered as a basis for long-term survival of an enterprise and can bringlong-term interests for enterprise. Brandcompetitiveness enhances market share, increase

profits, enable organizations to charge higher price, create customer loyalty, or even helpoverride occasional failures in the eyes of theconsumers. Organizations develop brands as a wayto attract and keep customers by promoting value,image, prestige, or lifestyle. They may enjoy atrust or customer loyalty if they able todifferentiate the brand from the competitor. Aweak brand cannot able to retain the customers.

Many researchers believe that brandcompetitiveness is affected mainly by twodimensions. The first dimension is the basicstrength of corporate, such as product quality or service, technology, business skills, managementcapacity, human resources; the second dimensionis the effectiveness of brand communication whichmainly includes the consumers perception of

brand images and the channel capacity of providing products and services to customers.Yang et al. (2008) provide that the brand value,

brand innovation, brand quality control, brandmarketing and brand communication constitute thefive aspects of brand competitive factors. Dali et

al. (2007) reveal that brand competitive effects byfour elements. These are basic elements whichcomposed of product performance, quality andother indicators; form factor, which refers to thename, trademarks, etc.; support elements whichinclude management capabilities, financial

strength, human resources, etc.; and strengthenelements which include public relations,advertising and after-sales service. Recentlyresearch in this direction is more concerned aboutthe brand itself, focusing on the brand continuityand development factors. Among them, the brandculture is the most important one. Pengli andFurong (2008) sum up the factors as brand market

power, brand innovation, brand culture and brandleadership. Brand culture emphasizes theintegration of business outlook, values, andaesthetics into the brands. Further, Xueme (2009)emphasizes on the link between brand and

corporate image, and the brand elementssummarized as brand strength, brand management,

brand development and brand sales force. Jinping(2009) consider cultural competence as thedominant factor which emphasizes that anenterprise must establish a distinctive brand

philosophy, brand image and brand personality.To enhance the competiveness of the brand several

business strategies are required. These are (i)developing a good quality management system andhave good crisis manage capacity, (ii) effectivelyengage in marketing campaigns, while focusing onthe customer s evaluation after purchase, and (iii)

strengthening brand operations along withenhancing brand value.

Liuxiang (2002) points out good brands need goodquality management system as a safeguard andthere are three elements to establish a good qualitymanagement system. The first part should beginfrom the raw materials, grasp the purchasechannel, strict implementation of quality standard;the second part from the production processcontrol, strict manufacturing processes for

processing in accordance with the production,strict control of the defect rate and the failure rate;and the third part links quality testing and qualityinspection, which must not be over looked.Companies wishing to build their brand bigger andstronger cannot be too short-sighted in qualityinspection link pushing boundaries.Enterprises should make full use of variousmarketing initiatives to strengthen their brandimage. Advertising, public advocacy, promotionand celebrity effect can become effectivemeasures. Marketing campaigns make a brandfamous but it can never solve the problem of maintaining the brand, as such establishment of

brand image is far more than that. The key tomaintain a good brand is to put more emphasis onthe consumer s evaluation, particularly the


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evaluation after the purchase. Such thinking notonly can maintain good customer satisfaction, butalso helps improve product performance, better

brand recognition and customer loyalty (Yang andTang, 2008).

The profitability of the brand is the mostfundamental part of the core business ability. Inorder to enhance brand value, the enterprise shouldstart from the brand s profitability, which is not

just a guarantee, but the essential part for thecontinuation of the brand. Brand profitability is theoutward manifestation of the brandcompetitiveness; it refers to the ability to profit inthe market. Brand development capacity reflectsthe ability of the persistence of a brand; it issubject to many factors. Branding capabilitiesexplain whether a brand s image in the consumer consciousness is achieved the desire or not. Brand

support capacity emphasizes on the resourcesneeded to maintain the brand conditions. Brandawareness capacity shows whether the target brandon the market won the social acceptance andcustomer satisfaction.Fast Moving Consumer Goods (FMCGs)

Fast Moving Consumer Goods (FMCGs)are products that are sold quickly at relatively lowcost. Though the absolute profit made on FMCG

products is relatively small, they generally sell inlarge quantities and as such the cumulative profiton such products is large. These products getreplaced within a year. Examples of FMCG

generally include a wide range of frequently purchased consumer products such as toiletries,soap, cosmetics, teeth cleaning products, shaving

products and detergents, as well as other non-durables such as glassware, light bulbs, batteries,

paper products and plastic goods. FMCG may alsoinclude pharmaceuticals, consumer electronics,

packaged food products and soft drinks, tissue paper, chocolate bars, although these are oftencategorized separately. Subsets of FMCGs are FastMoving Consumer Electronics which includeinnovative electronic products such as mobile

phones, MP3 players, digital cameras, Laptops,etc. These are replaced more frequently than other electronic products. White goods in FMCG refer tohousehold electronic items such as Refrigerators,TVs, Music Systems, etc. Some of the best knownexamples of Fast Moving Consumer Goodscompanies include Colgate-Palmolive, Unilever,

Nestle, Procter & Gamble, Marks, Spencer, Coca-Cola, Carlsberg, Pepsi, etc.

FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is alsovery high. This industry, alternatively called asConsumer Packaged Goods (CPG) industry

primarily deals with the production, distribution

and marketing of consumer packaged goods.Consumers generally put less thought into the

purchase of FMCG than they do for other products.Today the competition among FMCGmanufacturers is growing very fast and as a resultof this, investment in FMCG industry is also

increasing. FMCG industry also engaged inoperations, supply chain, production and generalmanagement. The main segments of the FMCGsector are:Personal Care: oral care; hair care; skin care;

personal wash (soaps); cosmetics and toiletries;deodorants; perfumes; paper products (tissues,diapers, sanitary); shoe care.Household care: fabric wash (laundry soaps andsynthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants,metal polish and furniture polish).

Branded and Packaged Food and Beverages: health beverages; soft drinks; staples/ cereals; bakery products (biscuits, bread, cakes); snack food;chocolates; ice cream; tea; coffee; processed fruits;vegetables and meat; dairy products; bottled water;

branded flour; branded rice; branded sugar; juices,etc.Spirits and Tobacco: An exact product-wise sales

break up for each of the items is difficult.

Thus, the products belonging to the FMCGsegment generally have the followingcharacteristics:

They are used at least once in a month They are used directly by the end-consumer They are mostly non-durable They are sold in packaged form They are brandedA SWOT analysis of FMCG sector shows that thesector enjoys several strengths, such as lowoperational cost, presence of establisheddistribution networks in both urban and rural areasin countries and presence of well-known brands inthis sector. The weaknesses show lower scope of investing in technology and achieving economiesof scale, especially in small sectors and presence of illegal mimic of labels of the established brands,which narrows the scope of FMCG products inrural and semi-urban market in several economiesin the world. However, FMCG sector hastremendous opportunities to grow which include

presence of untapped rural market in manycountries, possibilities of rising demand due toincreasing purchasing power of consumers, export

potential and high consumer goods spending. Inspite of tremendous presence of opportunities, thesector faces few threats, such as presence of taxand regulatory structure in many economies alongwith slowdown in demand in rural areas. Inaddition, removals of import restrictions in many


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economies result in high competition and in manycases replace the domestic brands.In several low income economies in the world

increased focus on farm sector boosts ruralincomes and provides better growth prospects tothe FMCG companies. In addition, better

infrastructure facilities in many economiesimprove their supply chain. FMCG sector is alsolikely to benefit from growing demand in themarket. Because of the low per capita consumptionfor almost all the products in the low incomeeconomies, FMCG companies have tremendous

possibilities for growth. In addition, if thecompanies are able to change the mindset of themillion consumers, i.e., if they are able to take theconsumers to branded products and offer newgeneration products, they would be able togenerate higher growth in the near future. Some of the advantages of FMCG industry which made this

industry as a potential one are low operational cost,strong distribution networks, and presence of renowned FMCG companies. Moreover,

population growth is another important factor responsible for the success of FMCG industry.A major portion of monthly budget of eachhousehold is spent on FMCG products. Theintroduction of sachets made rural people who aretraditionally not accustomed for bulk purchase, to

buy branded FMCG products like shampoo,detergents, cleaning powders and liquids,toothpastes, etc. This changed the pattern of

buying from traditional products to branded

products. Thus, the Fast Moving Consumer Goods(FMCG) sector is the corner stone of everyeconomy. This sector touches every aspect of human life. The FMCG producers have realizedthat there is enough opportunity for them to

penetrate into the rural market of severaleconomies in the world. Today the shift towards

branded FMCGs in rural areas is a result of socio-economic changes. The socio-economic and

political changes taken place around the worldhave contributed to a great extent for changes inthe life styles of countryside people who

patronized branded FMCG products.

STUDY OBJECTIVES

The objectives of the study were:

To Identify the key competitive of theConsumers products brands in CambodiaMarket and the perception of consumersregarding the usefulness of dominantattributes on brand evaluation;

To find out the role of advertisement inthe buying decision of consumers towardsselected brands of FMCGs; and

To analyze the brand identity of selected brands of FMCGs among the consumersin the study area.

METHODOLOGYThe type of analysis carried out in the present

study is both descriptive as well as quantitative innature. To achieve the objectives and test thehypotheses, the study has collected primary datathrough direct personal interview method with thehelp of a structured questionnaire. The primarydata have been collected from 400 selectedrespondents in the city of Phnom Penh. Besides,relevant secondary data have also been collectedfrom several sources. Both descriptive andquantitative analysis has been carried out in thestudy. Several statistical tools, such as average,

percentage and Multidimensional Scaling (MDS)have been used in the study. The study has also

carried out both tabular and graphical analysis toanalyze the data collected as per the objectives of the study.

In addition, relevant statistical tools areused in the study to accomplish the objectives.Weighted Aggregate Score is carried out to rank the attributes affecting the buying decision of theconsumers.

The Weighted Aggregate Score iscalculated as per the formula given below:

Weighted Aggregate Score = W i X i

Where,W i = Weight of i

th item XX i = Value of i

th item X

To understand the preference level of therespondents so far different brands of toothpaste,detergent powder and shampoo is concerned, theMultidimensional Scaling (MDS) has been used.This particular technique is well suited and wasoriginally developed for measuring human

perceptions and preferences. MultidimensionalScaling is used to identify the product attributesthat have importance to consumers and to measuretheir relative importance. This technique tests the

brands which compete most directly with eachother. MDS is a set of techniques used tounderstand and measure the variety of humanresponses. MDS tackles basically two problems: i.dimensions involved for consumer perception of objects (Products, Services, Brands, Companies,etc.), and ii. Configuration of points (of objects) inthat dimensionality.

As regards dimensionality, the number can be two or more. However, only two mostimportant dimensions are chosen so that theresultant configuration can be shown graphically.The outputs of MDS are the location of objects on


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the relevant dimensions as is termed as PerceptualMapping. Thus, the perceptual map technique hasalso been used to identify the underlyingdimensions that differentiate customer perceptionof products and the position of existing productson the dimensions. The following method has been

used to find out the number of dimensions andconfiguration of that dimensionality.

The similarity matrix from response matrixhas been found out by the following formula:

Where N is total sample size, i = row and j= column.

The distance between each brand is foundout by using Euclidean distance formula:

Where X ik , X jk are the projections of pointsi and j on dimension k

(k = 1, 2, .., r)

The stress value is calculated as a badnessof fit at 10 per cent. So any value below the valueof allowable badness of fit is acceptable.

Thus, MDS is carried out to helpunderstand people judgments of the similarity of members of a set of objects. The pairs of brandsare taken to study the superiority of the brandthrough the ordinal scale. Respondents are requiredto give their preferences for the different brandsand finally, the perceptual map is drawn to knowthe Euclidian distance among the different brands.

To meet the objectives of the study, 400respondents are taken into account for carrying outthe field survey in the capital city of Cambodia,

i.e., Phnom Penh.

BRANDS COMPETITION

Competitive Analysis of Various Brands of ToothpasteConsidering certain attributes, such as cleanliness,

protection of gum and teeth, freshness, price,advertisement, etc., the competitive analysis of various brands of toothpaste is taken into account.For this purpose, the study has considered the

brands like Colgate, Close up, Pepsodent and Oral-

B. The other brands of toothpaste have not beentaken into account with the simple assumption thatthese brands are not effective players in the

market. The competitive analysis of various brandsof toothpaste is presented in Table 5.2.3.

Table No. 5.2.3Identification of Best Brand of Toothpaste on

the basis of Selected AttributesAttributes Brand

Colgate Pepsodent Close-up

Oral-B Total

Cleanliness 128(32.00)

104(26.00)

108(27.00)

60(15.00)

400(100.00)

Protection of gum & teeth

152(38.00)

88(22.00)

96(24.00)

64(16.00)

400(100.00)

Freshness 92(23.00)

84(21.00)

88(22.00)

136(34.00)

400(100.00)

Price 124(31.00)

120(30.00)

88(22.00)

68(17.00)

400(100.00)

Advertisement 112(28.00)

104(26.00)

108(27.00)

76(19.00)

400(100.00)

Packaging 108(27.00)

80(20.00)

112(28.00)

100(25.00)

400(100.00)

Brand Image 128(32.00)

92(23.00)

96(24.00)

84(21.00)

400(100.00)

Note: Figures in the parentheses indicate percentage torow total.

Table 5.2.3 reveals the fact that considering theattributes, such as cleanliness, protection of gumand teeth, price, advertisement and brand image,Colgate was considered by the highest number of respondents as the best brand. So far as thefreshness and packaging are concerned, Oral-B andClose up were considered respectively by therespondents as the best brand. In a number of attributes, such as cleanliness, protection of gumand teeth, advertisement and brand image, the

brand Close up had secured the second position.However, the brand Oral-B had secured the lowest

position in all the attributes taken into accountexcept freshness and

packaging.Figure5.2.5presented below showsclearly the competitive analysis of various brandsof toothpaste considering several attributes.


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in the market and attract the customers, Visoshould relook its strategy with regard to theseattributes.Competitive Analysis of Various Brands of ShampooConsidering certain attributes, such as removing

hair dandruff, controlling hair fall, caring hair damage, providing extra moisturizing to hair,making hair long and shining black, packaging,

price, advertisement, brand image, etc. thecompetitive analysis of various brands of shampoois taken into account. For this purpose, the studyhas considered the brands like Pantene, Clinic-Clear, Head & Shoulder, Sunsilk, Palmolive,Dove, Rejoice and others. The other local brandsof shampoo have not been taken into account withthe simple assumption that these brands are notvery effective players in the present market. Thecompetitive analysis of various brands of shampoo

is presented in Table 5.4.3.

Table No. 5.4.3Consideration of Best Brand of Shampoo on thebasis of Selected Attributes

AttributesBrand

TotalPantene

Clinic-Clear

Head &Shoulder Sunsilk

Palmolive Dove Rejoic e

Removing hair dandruff

83(20.75)

91(22.75)

56(14.00)

52(13.00)

47(11.75)

42(10.50)

29(7.25)

400(100.00)

Controlling hair fall

107(26.75)

89(22.25)

63(15.75)

43(10.75)

39(9.75)

32(8.00)

27(6.75)

400(100.00)

Caring hair damage

102(25.50)

78(19.50)

84(21.00)

41(10.25)

40(10.00)

38(9.50)

17(4.25)

400(100.00)

Providing extramoisturizing tohair

74(18.50)

62(15.50)

83(20.75)

63(15.75)

46(11.50)

51(12.75)

21(5.25)

400(100.00)

Making hair long 51(12.75)

44(11.00)

62(15.50)

51(12.75)

53(13.25)

75(18.75)

64(16.00)

400(100.00)

Shining black 56(14.00)

52(13.00)

78(19.50)

82(20.50)

40(10.00)

25(6.25)

67(16.75)

400(100.00)

Packaging 76(19.00)

65(16.25)

58(14.50)

51(12.75)

20(5.00)

89(22.25)

41(10.25)

400(100.00)

Price 53(13.25)

72(18.00)

56(14.00)

61(15.25)

88(22.00)

24(6.00)

46(11.50)

400(100.00)

Advertisement 78(19.50)

79(19.75)

56(14.00)

73(18.25)

23(5.75)

62(15.50)

29(7.25)

400(100.00)

Brand/companyimage

81(20.25)

68(17.00)

61(15.25)

52(13.00)

45(11.25)

52(13.00)

41(10.25)

400(100.00)

Note: Figures in the parentheses indicate percentage torow total.

Table 5.4.3 reveals the fact that considering theattributes, such as controlling hair fall, caring hair damage and brand image, Pantene was considered

by the highest number of respondents as the best brand. So far as other attributes, such as removinghair dandruff and advertisement are concerned,Clinic Care was considered by the majority of respondents as the best brand. In case of providingextra moisturizing to hair, Head and Shoulder wasconsidered by most as the best brand. The brandDove was taken by others as the best for makinghair long and better packaging as compared toothers. So far as the price of shampoo isconcerned, Palmolive was considered by majorityas the best brand. For the other attribute, such asshining black while Sunsilk was the most preferred

brand, Head and Shoulder was the next preferredone. However, the brand Rejoice had secured thelowest position in certain attributes taken intoaccount except making hair long, shining black,

packaging, price, advertisement and brand image.Figure 5.2.6 presented below shows clearly thecompetitive analysis of various brands of shampooconsidering several attributes.

Marketing ImplicationsThe analysis carried out above with regard to thefactors influencing buying of shampoo andchoosing of a brand to be the best considering the

attributes reveals the following marketingimplications.i. The significant attributes influencing the

buying decision of shampoo is the controllingof hair fall and caring for hair damage asrevealed from the analysis. Considering the

brand which meets the above criteria, it isfound that Pantene was considered to be themost effective brand. Hence, to further strengthen the market, Pantene should givemore emphasis on the above attributes. Theother brands, such as Clinic Clear, Head andShoulder, Dove and Sunsilk should also

seriously think of their brands value in termsof the above attributes to pose a serious threatto the brand Pantene.

ii. It is also revealed that removing hair dandruffis one of the important attributes in

buying the shampoo. Data show thatmaximum number of respondents favouredClinic Clear as the best brand in meeting theabove criteria. Thus, it can be inferred that togear up its demand and to fight with the

brand Clinic Clear, Pantene and others shouldconsider raising their removal of hair dandruff value in the brand.

iii. Similarly, most of the respondents consideredHead and Shoulder as the most preferred onefor providing extra moisturizing to hair.Likewise, Dove was considered for makinghair long while Sunsilk was taken by most as

providing shining black to hair. Consideringthese findings, the reputed brands, such asPantene and Clinic Care should promotethese attributes effectively in their brands.

iv. Very few respondents consider advertisementas one of the important factors in buyingshampoo. However, Clinic Care had securedthe first position so far the advertisement is

concerned. To promote the brand and tostrengthen the market position, the other


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brands should develop more appealingadvertisement to create new demand in themarket.

v. While respondents had taken Dove as themost preferred brand for packaging,Palmolive was considered as the best for

pricing. Thus, it can be stated that the other competing brands should add value to their

brands for strengthening their base in themarket in the long run on these attributes.

vi. So far the brand image is concerned; Pantenewas rated as the best brand followed byClinic Clear. Therefore, it can be inferred thatthe brands, such as Head and Shoulder,Sunsilk, Dove, Palmolive, Rejoice and othersshould develop appropriate measures to buildtheir brand reputation.

SUMMARY AND CONCLUSION

A brand is a central node of an associative network constituted by consumers learned connections

between the brand and a variety of cues, benefits,user types, and symbolic meanings. The foregoinganalysis aims to provide a clear explanation onseveral conceptual issues relating to brand. Inaddition, it reviews the empirical findings on brand

personality and competiveness. Further, ananalysis is made on profiles of selected productsand brands. From the review of literature it isfound that though a good amount of studies has

been carried out on issues relating to branding, brand image, brand performance, brand personality, brand competitiveness, etc. but veryfew studies on those issues relating to brand

performance are taken up in small emerging aswell as poor economies in the world.Understanding consumers awareness andknowledge about presence of several brands in themarket and their perception levels for different

products and brands in small economies areimportant.The analysis made in the present chapter clearlyshows the competitive advantage enjoyed by thespecific brands, such as Colgate, Viso and Panteneof the selected FMCGs. In case of all the selectedthree FMCGs, majority of respondents were awareof the presence of several brands in the market. Alarger percentage of respondents were found in useof Colgate brand of toothpaste, Viso brand of detergent and Pantene brand of Shampoo.Respondents had considered several attributes for selecting the specific products as well as their

preferred brands. The analysis has also clearlyfound a larger preference of customers in favour of these three brands of selected products over alonger period of time. It was found that in general,advertisement plays an important role in not onlyselecting the product but also the brand. Majority

of the respondents in all the specific three brandcases remembered the advertisement in some wayor other and recognized that these brands bythemselves were enough for sale. This reveals the

brand identity enjoyed by the selected brands, i.e.,Colgate, Viso and Pantene among others. As these

brands are recognized by the respondents ashousehold brands, they were perceived as havingthe highest preferred brands as against other competing brands. The important marketingimplications derived from the analysis would bequite helpful for the respective brands as well astheir competitors to develop appropriate marketingstrategies.

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*Dr Kao Kveng Hong is Professor of Business &Economics at Angkor Khemara University, PhnomPenh, Cambodia. He holds a Bachelors Degree inEconomic Science, a MBA and a PhD in Business Administration. Prior to entering academic life Dr Kao was active in business; he remains the CEO of

Asia Marketing Solution Company, a company hefounded in 2006. Dr Kao is also a qualifiedteacher. He began his career as an English andJapanese teacher in private schools in Siem Reap.These days he teaches management and salessubjects to undergraduates and MBA students. Hemay be reached at [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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The Competitivenes of Brand of Consumer Product in Cambodia- Kao Kveng Hong

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