Market Repositioning Strategy and Business Success of Quoted Food and Beverages Firms in Nigeria.
Vol.5 Issue 2
This study examined the relationship between market repositioning strategy and business success of quoted food and beverages firms in Nigeria. Both primary and secondary sources were used to gather data on the independent and dependent variables. The population of the study consists of 14 quoted food and beverages firms on the Nigerian Stock exchange with consistent and accessible annual reports on the stock exchange for the period covered by the study. This population forms the sample size since it is finite gathered were analysed using EXCEL and SPSS software package. Exploratory and confirmatory factor analyses were conducted on the independent variables using SPSS and LISREL software packages. The empirical models were estimated using E-views. The student t-test, our findings reveal that replacement strategy can be used to reverse a turnaround situation caused by declining market share and sales growth but cannot be used to reverse a turnaround situation caused by declining profitability. Based on our findings it is concluded that replacement strategy has some levels of influence on business success of quoted food and beverages firms in Nigeria. The study recommends that quoted food and beverages firms should consider cost efficient strategies when their profits show a declining trend. In this regard, considering a new and pragmatic leadership and other cost cutting activities would be the right course of action. Our findings suggest that repositioning strategy can be used to reverse a turnaround situation caused by declining market share and sales growth but cannot be used to reverse a turnaround situation caused by declining profitability. It is therefore concluded that market repositioning strategy has some levels of influence on business success of quoted food and beverages firms in Nigeria. The study recommends that food and beverages firms should consider market-oriented strategies when they are faced with declining sales growth. To this end, strategic reorientation or repositioning or both can be employed. Therefore, to reverse the declining sales growth, turnaround managers need to consider strategic actions such as increasing sales incentives, marketing and advertisement budgets and product quality improvement. Market expansion activities such as rewarding customer loyalty, product innovation and new market penetration would also be helpful.
