Market positioning strategy and its impact on firm performance and competition: The case of T. Markets in Saudi Arabia

Abstract

This Applied Marketing Project investigates the market positioning strategies of T. Markets, one of the major food retailers (supermarkets) in Saudi Arabia and analyzes the impact of a firm’s market positioning strategies on its performance and market competitiveness. In order to gain better insights of the market environment in which T. Markets operates, a review of the food retail sector in Saudi Arabia along with a PESTEL analysis were performed. Also, a comprehensive review of the literature on the market positioning concept was undertaken in order to provide the necessary theoretical context for the study. The STP model was used as a framework for analyzing the case study company.

A key finding of the study is that market positioning strategies that are customer-centric or have elements of customer orientation and are effectively implemented can and do have a positive impact on a firm’s performance and its competitive position in its market. A key recommendation is for T. Markets to employ multiple market positioning strategies as a means to respond to the increasingly competitive and fragmented food retail market in Saudi Arabia. Such an approach has the potential to improve organizational performance and help it to gain market share