Brand positioning and business performance of alcoholic beverage firms in an emerging market context: the mediation effect of brand equity

Abstract

Purpose This study aims to investigate the relationship between brand positioning and business performance, as well as the mediation effect of brand equity between them within the context of Ghana’s alcoholic beverages industry. Design/methodology/approach A sample of 196 staff across four alcoholic beverage firms in Accra, Ghana was selected using a judgemental sampling technique. A structural equation modelling approach using partial least squares was used to conduct the analyses to answer the research hypotheses. Findings All the hypotheses were confirmed in line with extant literature. Specifically, the study found a positive relationship between brand positioning and business performance. The study also found that brand equity partially mediates the relationship between brand positioning and business performance. Practical implications The study serves as a useful guide to strategy and policy formulation in branding in general and specifically on how brand positioning can be effectively deployed as a key strategy to enhance business performance. Originality/value The study has practical implications not only for the marketing and sale of alcoholic beverages in Ghana to achieve financial performance but also for lasting competitive advantage.