The extent to which value propositions influence choice of tea brands in Nairobi

Abstract

Introduction: This research paper investigated the extent to which value propositions-the summation of the brand's functional, emotional and self-expressive benefits that bring value to the customer-affect tea brand choices. The paper sought to resolve tea brand managers' dilemma: whether or not tea by any other name tastes the same. As tea brand marketers continuously search for unique identities for their teas, their marketing strategy increasingly becomes fixated on price-the first sign of a brand sliding into a faceless commodity. For tea brand managers, the search for differentiation becomes somewhat of a "holy grail," as consumers fail to distinguish in their minds one tea brand from another. The study examined one way of achieving differentiation of tea brands: value proposition. It is based on the premise that brand-building initiatives produce distinct identity for tea brand rather than tea product. Hence, the association that a consumer makes with the brand-if directly linked to actual product differences-provides a compelling reason to buy and build loyalty. This way, consumers get attracted to the branded product rather than another unbranded, factory-door version or own-label tea alternatives. In view of that, brand identity provides additional cues to drive purchase decisions. Methodology: 118 households in Nairobi's Golf Course area were randomly sampled to examine choice of tea brands in the Kenyan market. Homemakers were asked to evaluate how they perceived benefits their favourite brands offered. Flagship brands-each from tea packing firms that sold more than 100,000 kilogrammes in 2005-were presented to respondents. Using importance of benefits sought scales, respondents were asked to select their favourite brands, indicating how important or unimportant to them features/benefits in the brand's value proposition were. Likert-type scales were used to measure brand attitude and satisfaction indices. Results: Of the three value proposition mix elements, functional attributes of tea brands were found to drive most purchase decisions (71.8%). Emotional (57.3%) and self-expressive (51.3%) features were to a lesser extent important. On the correlation between the elements of value proposition mix, Spearman's rho showed a low, but significant correlation between functional and emotional benefits (rho=0.266, P<0.05). A higher correlation (rho=0.340) was apparent between functional and self-expressive benefits. Emotional and self-expressive benefits were equally significantly correlated (rho=0.336). Theoretical and Practical Implications: Clearly, tea buyers consider product functionality (does the product do what Ineed it to do?) first before thinking about its emotional appeal (does it appeal to me emotionally) and then differentiation (how is its different from other products T could substitute it for). By optimally combining functional, emotional and selfexpressive attributes that resonate well with a given target market, tea firms should discover unique value package that drives the tea consumer, and realise more value from their promotion budgets and, in the long-term, succeed in building market share locally and regionally. Limitations: The study conclusions are based on sample drawn from an urban income segment, and therefore cannot be generalised nationally. However, it provides a basis for a more generalisable national study, to inform promotional decisions in the tea industry and government policy on tea value-addition. The findings should also spur further academic research on whether or not tea by any other name tastes the same.