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The effects of consumer preferences and perceptions of Chinese tea beverages on brand positioning strategies

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Abstract:

Purpose ‐ The study aims to discuss how the attributes of Chinese tea beverage brands influence consumers' evaluations of brand positioning and the differences and competition among brands. Design/methodology/approach ‐ A perceptual map, developed using probabilistic discriminant analysis algorithms, depicts the relative position of each brand and illustrates their attractive properties. This statistical technique can enhance managers' ability to identify promising brand positions and enhance the overall brand design process. Findings ‐ The study finds that Chinese tea beverage brands pursue various goals, such as quenching thirst, attractive advertising, or reliable quality, to develop their positions. Brand positioning implies that consumers remember particular information conveyed by the brand. The study illustrates consumers' brand awareness attributes, potential market demand, and brand competition conditions. Research limitations/implications ‐ Brand positioning, when linked with market segmentation, can yield effective guidelines for the design and coordination of a marketing strategy. The scope of this study, however, does not enable elaboration on segmented differences in product positioning. Practical implications ‐ The study provides a useful source of information for managers, who should introduce brands to the market carefully and deliberately and choose a position that is both appealing and sustainable over time. Originality/value ‐ The study provides a unique method to understand the current market structure and determine a target brand and its best competitive position.

Keywords: Brands; Consumer behaviour; Market position; Market strategy; Perceptual mapping; Tea

Document Type: Research Article

DOI: http://dx.doi.org/10.1108/00070700910924254

Publication date: January 25, 2008

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