EFFECT OF THREAT OF PRODUCT SUBSTITUTES AND DIFFERENTIATION STRATEGY ON MARKET SHARE IN THE NIGERIAN CONSUMER GOODS SECTOR

Abstract

Competition in Nigerian manufacturing industries, especially in the consumer goods sector, has intensified due to emerging technologies, short product lifespans, and rapidly changing customer preferences. Managers in the industries face the challenge of promoting customer loyalty amidst competing products. Still, little research has been done on the most effective approaches in this sector. With a focus on Nestle Nigeria Plc, Unilever Nigeria Plc, PZ Cussons Plc, and Cadbury Nigeria Plc, this study examines how differentiation strategies (DIS) and the threat of product replacements (TPS) affect market share (MSH) in Nigerian consumer products business. Confirmatory factor analysis and expert evaluations were used to validate the data that was gathered using structured questionnaires (CFA) for the analysis. The effect between TPS, DIS, and MSH were examined using structural equation modeling (SEM). The findings at the coefficient estimate of. (coefficient = 0.043, p < .001), highlight the multifaceted factors influencing market shares, enabling organizations to tailor strategic initiatives to enhance competitiveness and maximize market share growth. The study recommends that Organizations should adopt holistic strategic approaches that consider the dynamic interplay between TPS and DIS.