The Effect of Product Differentiation on Sales Performance: The Case of Heineken Ethiopia

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Date

2023-07

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Addis Ababa University

Abstract

Many businesses place a high premium on developing and implementing an effective diversification plan to capitalize on competition. The study's primary goal was to explore the effects of product differentiation strategy dimensions (product quality and product variety) with contributory roles of guarantee and after-sales service on the case company's sales performance. The study collected primary data by sending questionnaires to Heineken Ethiopia management, senior specialists, and distributors in Addis Ababa. The quantitative research analysis method was applied. Purposive sampling was used to choose a sample of 93 respondents. The data was examined using explanatory research design and descriptive statistics tools such as frequency, mean, standard deviation, tabulation, and regression. The research findings are relevant for firms that are using unique PDS to improve sales performance. According to the data, product quality, product variety, and after-sales services have a beneficial impact on sales performance, however product guarantee has no impact. As a result, the beer industries use the competitive advantage provided by the use of product differentiation strategy to improve their sales performance

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Keywords

Product Differentiation

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