Strategic posisitioning of local products

1. BACKGROUND AND JUSTIFICATION OF STUDY:

‘Positioning in pursuit of your purpose is critical to your success in life. Remember, great strikers are found in the proximity of the penalty box. That is strategic positioning’. Oscar Bimpong.

              Strategic Positioning of a firm is one of the hottest concepts in all industries.  Driven  by  pressures  such  as  increased  competition,  the need to improve quality products and services, the need for innovation firms are increasingly investing on the positioning strategies with the  aim  of  developing  competitive  advantage  over  their  competitors( Elvis A 2014)^[1]. This 21st  century  has  seen  more  services  and  products  increasingly becoming  competitive  and  similar  in  terms  of  product  features, capabilities and prices (Marker GA 1997)^[2].This has brought  about overcrowding in the marketplace  and  customers’  preference  has  drastically  changed. For this reason the market of disposable diapers is not spared from such overcrowding. Added to that, the traditional approach of advertising do not work properly as it used to be. The reason being that customers in the 21st century do not buy what they hear but rather they are willing to buy a satisfactory brand in a product category.

            Numerous  scholars  have  shown  that  positioning  a  firm or product  is  very important  as  it  contributes  to  organizational  performance  if  well managed.  However, according to Aaker D and Shansby JG (1982)   only few firms place much emphasis on the positioning strategies of their companies.

               Originally, strategic positioning was a marketing term that described how a company configured the 4 Ps of marketing (product features, price, place, and promotion) so that they

appeal to a specific market segment or niche. But today, strategic positioning is all about performing different activities from rivals or performing similar activities in different ways.

Companies use strategic positioning when they consciously decide to expand their business into different market segments than they are in currently. It is the case for firms in the industry of tissue and textiles. According to Kaysoka,G.M (2010)^[3] the best case is when a company produces a unique product or service that is universally desired by all market segments without regard to price or location, so the company does not have to worry

as much about strategic positioning. Before going further it will be relevant for us to trace the evolution of disposable diapers and its market trend in the world in general and Cameroon in particular.

               Since the creation of the first baby diaper in the 1950s, the market has been revolutionized. What started as a square of linen held together with safety pins in the

late 1800s has since experienced decades of refinement and revision, culminating in the modern diaper. At its birth, the baby diaper was simple in design: a rectangular

shape with basic substrates of nonwoven fabric. It had an absorbent core that was composed of several layers of tissue paper, with plastic film on the outside, and no use of tapes.

Because of its high price, it was not readily available to the masses. Manufacturers however, quickly identified the positive impact that this product would have on the lives of families around the world. Having recognized the need to meet mothers’ growing demands for a better performing, affordable diaper with different substrates, more manufacturers entered the market and the new diaper trend started taking shape^[4].

                 In any given market, new challenges present themselves overtime. Adhesive makers determined that companies manufacturing baby diapers needed to improve, specifically regarding the materials used. The use of “cold glue” needed to be swapped for “hot melts” in order to decrease the open time and increase the manufacturing speed. The first diapers had two different glue applications; today, there are approximately 17 glue

applications, depending on the diaper’s complexity. And, after the more recent inclusion of elastomerics^[5] and SAP^[6], for example, the market for disposable diapers started to have very good overall performance. However, because of tight competition, winning in the market came down to having differentiated and innovative products that truly address the needs of both mothers and babies. This is where the latest in disposable diaper trends comes into play.

                 Currently, the upcoming and mainstream demands in the diaper market are focused on the baby’s comfort. This shift from performance-centric to comfort and user friendliness requires manufacturers and suppliers to step up their game and develop innovative raw materials that enable production of what consumers want.  

Baby  diapers  market  has  been  gaining  popularity  since  their  introduction  in  the

market.  The  addition  of  disposal  diapers  in  the  industry  has  augmented  the  demand

of  baby  diapers  globally. About 635 disposable baby diapers are used all over the world in a second which represent 20 billion of disposable baby diaper each year^[7]. The global baby diaper market is expected to grow. Market growth is expected to reach a CAGR of 4.1% between 2016-2024, hitting a value of $70.4 billion at the end of 2024, a report from Persistence Market Research says. Volume wise, the research firm expects the market to register a CAGR of 3.5% over the forecast period.

It  is  expected  that  the  baby  diapers  market  in  Africa  will  be valued  at  US$1994.5 million  till  2017 with  a  promising  11.6%  CAGR  between  the  years 2012  and  2017. Out  of  all  the geographical  segments,  the  African  market  is  expected  to  flourish  the  most  in  the forecast  period.  In Africa, drivers such as urbanization and increased income,

increasing  birth  rates,  increasing  hygiene  and  sanitation  awareness,  and  cultural

values  involving  nuclear  families  is  fueling  the  market  of  baby  diapers.  In addition,

World Bank’s investments to support new markets, rising competitiveness, and promoting diaper change is proving to be the biggest opportunities for the key market players of the African baby diaper market^[8].

           Cameroon which is not left out in this trend, on the contrary the most progressing economy in Central Africa has experienced an increase in penetration of its disposable diaper market in 2015. This is due to the fact that baby and child population growth remained

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