The Effect of Product Differentiation on Local Brand Positioning: A Case Study of “Venus” Brand Shampoos in the Algerian Market

Abstract

Due to the high development of global markets and the growing number of competitive rivals, product differentiation has become the solution to be positioned differently from the rival offers. This research aims to examine the effect of product differentiation on the brand positioning of the competing companies in the Algerian shampoo market, with a highlight on Venus brand as it is the only local shampoo producer in Algeria. The multi-dimensional scaling (MDS) technique using factor analysis is employed for data analysis to draw a perceptual map that displays the relative position of twelve shampoo brands including Venus. The results show a significant difference between the position of the standard Venus shampoo and Venus differentiated product. The differentiation strategy illustrated in our case, enabled Venus Company to improve its brand positioning, which made it closer to the different market segments.

Keywords: local brands, differentiation strategy, brand positioning, MDS analysis, perceptual map.