PRODUCT DIFFERENTIATION STRATEGY FOR COMPETITIVE ADVANTAGE IN KENYA COOPERATIVE CREAMERIES

Although some few studies have been done on the relationship between product differentiation strategies for competitive advantage, information on the strategies used in Kenya is ostensibly missing in the literature. This study therefore sought to determine the role of product differentiation strategy in New Kenya Corporative Creameries for competitive advantage. Specifically the study sought to determine effect of product support service, branding, packaging and labeling on competitive advantage of KCC. The study employed a descriptive research design. The study targeted a total population of 10822, comprising of 2 Marketing managers, 10 regional managers and 10 route managers from New KCC and 10800 customers buying New KCC products. The sample size was 407. Questionnaires and interviews were used to collect data from the participants. The study established that the major product differentiation strategies used at New KCC include branding, labeling, packaging, product quality and total change in product characteristics. The study has enhanced understanding of how product differentiation influences management decision-making concerning competitive advantage. The management should intensify promotional mix/advertisement to inform customers of the new range of products or the differentiated products.