Market Positioning Strategies and Performance of I&M Bank Rwanda Public Limited Company
DOI:
https://doi.org/10.53819/81018102t2607Abstract
This study examined the effect of market positioning strategies on the performance of I&M Bank Rwanda Plc. Specifically, it assessed the influence of brand positioning, product positioning, and price positioning on organizational performance. The study was guided by Market Positioning Theory and Buyer Behavior Theory and adopted a mixed-methods approach using descriptive and correlational research designs. A sample of 219 respondents was selected from a target population of 484 employees through stratified and simple random sampling. Data were collected using questionnaires and interview guides and analyzed using SPSS version 21. The findings revealed that market positioning strategies were effectively implemented, with respondents reporting high levels of brand credibility, product quality, competitive pricing, and organizational performance. Correlation analysis showed that brand positioning (r = 0.794), product positioning (r = 0.706), and price positioning (r = 0.670) had significant positive relationships with organizational performance (p < 0.01). Regression results indicated that market positioning strategies explained 74.7% of the variation in organizational performance (R² = 0.747), with brand positioning exerting the strongest influence (β = 0.554), followed by price positioning (β = 0.492) and product positioning (β = 0.026). The study concluded that effective market positioning enhances organizational performance and recommended strengthening branding, product innovation, pricing transparency, and integrated positioning strategies to sustain competitiveness in Rwanda's banking sector.
Keywords: Market Positioning Strategies, Organizational Performance, Commercial Banks, Brand positioning, Product positioning, Price positioning
References
Aaker, D. A. (2019). Building strong brands. Free Press.
Aaker, D. A., & Jacobson, R. (2022). Strategic market management: Global perspectives. Wiley.
Adeoti, J. O. (2021). The effect of price positioning on the performance of banks in sub-Saharan Africa. Journal of African Business, 22(3), 342–360.
Adewale, A., & Ojo, J. (2024). Product positioning and bank performance: Evidence from Nigeria. African Journal of Economic and Management Studies, 15(1), 45–59.
Adewale, A. O., & Ojo, J. A. (2024). Comparative analysis of product positioning strategies in rural banking markets. Journal of Banking and Finance Research, 32(1), 45–60.
Adèr, H. J., & Mellenbergh, G. J. (2020). Research methodology in the social, behavioural and life sciences. Sage Publications.
Alan, R. (2020). Financial inclusion and mobile banking in Nigeria. Financial Review, 42(2), 123–145.
Alvi, M. H. (2020). A manual for selecting sampling techniques in research. Oxford University Press.
Armstrong, G., & Kotler, P. (2020). Principles of marketing. Pearson.
Asika, N. (2020). Research methodology in the behavioral sciences. Longman.
Baker, M. J., & Saren, M. (2016). Marketing theory: A student text. Sage Publications.
Berry, L. L. (2022). Reinventing the relationship: How organizational culture influences service excellence. Journal of Service Research, 20(1), 15–30.
Blaxter, L., Hughes, C., & Tight, M. (2020). How to research (5th ed.). Open University Press.
Bosire, J. (2020). Theoretical models in research. Routledge.
Braun, M., & Miller, R. (2024). Brand identity and its influence on bank financial outcomes. International Journal of Banking and Finance, 30(2), 145–160.
Brynjolfsson, E., & McElheran, K. (2022). The impact of data and technology on the performance of banks. Journal of Financial Economics, 118(4), 890–912.
Bryman, A., & Bell, E. (2020). Business research methods (5th ed.). Oxford University Press.
Bunley, B. (2023). Validity and reliability in research instruments. Cambridge University Press.
Carter, N. (2020). Research design: A comprehensive guide. Routledge.
Cheruiyot, T. (2020). The impact of online banking fees on return on assets in Kenyan banks. Kenya Journal of Banking Studies, 12(4), 213–225.
Cooper, D. R., & Schindler, P. S. (2020). Business research methods (13th ed.). McGraw Hill Education.
Creswell, J. W. (2013). Qualitative inquiry and research design: Choosing among five approaches. Sage Publications.
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). Sage Publications.
Davenport, T. H. (2023). Brand positioning in the digital age: The case of global banks. International Journal of Bank Marketing, 41(3), 450–468.
Demirgüç-Kunt, A., & Kunt, A. (2020). Access to financial services and economic growth. World Bank Research Paper Series.
Demirgüç-Kunt, A., & Levine, R. (2019). Financial development and economic growth: Theory and evidence. MIT Press.
Furfine, C. (2021). The role of technology in competitive banking: A review. Financial Services Review, 34(3), 203–218.
Gasana, N., & Nkurunziza, J. (2024). The role of product innovation in Rwandan banking performance. Rwanda Journal of Economics and Finance, 9(2), 65–80.
Ghosh, A. (2019). Microfinance and economic development in East Africa. Development Economics, 28(4), 345–367.
Harris, L., & DeCenzo, D. A. (2024). Managing organizations: Theory and practice. Routledge.
Hauner, D., & Peiris, S. (2024). E-banking and brand positioning in sub-Saharan Africa. African Finance Review, 19(1), 72–89.
Hernando, I., & Nieto, M. J. (2020). Net interest margin and its determinants: A study of European banks. Journal of Banking & Finance, 115, 105–120.
Indeje, B., & Zheng, X. (2020). Brand trust and e-banking adoption in Kenya. Journal of African Financial Studies, 16(2), 99–113.
Johnson, M., & Bell, R. (2023). The effects of product positioning on bank performance in Europe. European Financial Review, 20(1), 30–47.
Jones, P., & Lee, A. (2024). Product differentiation in the banking sector: A comparative analysis. Asian Financial Review, 16(2), 78–92.
Kagendo, A. (2024). Dynamic pricing strategies in emerging banking markets: A longitudinal study. International Journal of Bank Marketing, 42(3), 78–91.
Kagendo, M. (2024). Price positioning strategies and their impact on Kenyan banks. Journal of East African Finance, 11(3), 101–115.
Keller, K. L. (2020). Strategic brand management: Building, measuring, and managing brand equity. Pearson.
Klein, K. J. (2020). Ethical issues in research. Palgrave Macmillan.
Kotler, P., & Armstrong, G. (2020). Principles of marketing. Pearson.
Kotler, P., & Keller, K. L. (2022). Marketing management. Pearson.
Kumar, V., & Shah, D. (2023). The impact of product positioning on bank performance in South Korea. Korean Journal of Financial Studies, 18(2), 92–107.
Lanning, M. J., & Michaels, E. G. (2023). Delivering exceptional customer experiences through brand positioning. Harvard Business Review Press.
Levine, R. (2023). Strategic brand positioning in electronic banking: A global perspective. Journal of Financial Services Research, 32(1), 210–225.
Liu, X., & Wang, Y. (2023). Dynamic pricing models and their effect on bank profitability in Europe. European Journal of Finance, 27(4), 322–339.
Lynagh, J. (2020). Leveraging technology for financial services: A global perspective. International Journal of Banking and Finance, 15(2), 59–74.
Mabwai, J. (2020). Mobile banking and its impact on capital adequacy and market share in Kenya. Kenyan Financial Review, 14(1), 123–137.
Mckee, A. (2023). Regulatory frameworks and their impact on bank performance in South Africa. South African Journal of Financial Economics, 14(3), 200–215.
Miller, R., & Wang, J. (2024). Brand identity and its influence on bank financial outcomes. International Journal of Banking and Finance, 30(2), 145–160.
Mols, N. P. (2019). The impact of digital transformation on banking. European Financial Review, 17(1), 98–112.
Morduch, J. (2019). Microfinance and poverty alleviation. Annual Review of Economics, 11(1), 275–297.
Musiime, D., & Biyaki, J. (2020). Effects of price positioning on banking sector performance. African Journal of Economic Review, 15(2), 55–70.
Musiime, S., & Biyaki, P. (2020). Price positioning and customer satisfaction in the banking sector. African Business Review, 18(4), 78–89.
Mutua, J. (2024). The regulatory impact on mobile banking performance in Kenya. Kenyan Economic Journal, 17(2), 56–71.
Mutua, J., & Amadi, B. (2023). Strategic product positioning in Kenyan banking: A case study. East African Journal of Economics, 12(1), 98–115.
Ndayisaba, M., & Rwigamba, F. (2023). Competitive strategies and performance in Rwandan banks. Banking and Finance Review, 45(1), 112–129.
Ndiaye, M. (2020). Mobile banking and its impact on financial inclusion in Rwanda. African Journal of Economic Review, 22(1), 78–92.
Nshimiyimana, E., & Uwizeyimana, J. (2024). Strategic pricing and its effect on Rwandan banks' performance. Rwandan Journal of Banking Studies, 10(1), 67–82.
Nshimiyimana, F., & Uwizeyimana, G. (2024). Regulatory impacts on dynamic pricing in banking: Evidence from Rwanda. Regulation & Governance, 18(2), 189–203.
Oyugi, J. (2024). The impact of IT-enhanced brand positioning on bank performance in East Africa. East African Finance Review, 14(2), 123–137.
Patel, S., & Wang, L. (2024). Digital branding strategies and customer retention in Indian banks. Journal of Indian Financial Markets, 26(3), 189–203.
Porter, M. E. (2020). Competitive advantage: Creating and sustaining superior performance. Free Press.
Rao, A. R., & Monroe, K. B. (2023). The pricing of bank services: Perceptions of value and competitive positioning. Journal of Marketing Research, 60(4), 345–362.
Ries, A., & Trout, J. (2020). Positioning: The battle for your mind. McGraw Hill.
Rukundo, C. (2022). Market positioning strategies and performance of Rwandan microfinance institutions. Journal of Microfinance, 24(4), 199–214.
Smith, A., & Green, T. (2024). Price positioning in competitive banking markets. Journal of Financial Services Research, 38(1), 24–39.
Smith, A., & Patel, R. (2023). Brand positioning and financial performance in developed markets. Journal of Financial Strategy, 22(2), 78–95.
Smith, J., & Miller, R. (2023). Product differentiation strategies in commercial banking. Banking & Finance Review, 30(3), 67–80.
Smith, L., & Patel, K. (2023). Brand positioning and customer loyalty in the banking sector. Journal of Brand Management, 31(2), 34–49.
Sullivan, M., & Steven, R. (2020). Premium banking services and market differentiation in the UK. British Journal of Finance, 56(2), 45–60.
Suri, T., & Jack, W. (2016). The impact of mobile money on economic development in East Africa. Economic Journal, 126(596), 121–142.
Terry, R. (2020). Validity in research: Principles and practices. Springer.
Yegidis, B. L. (2014). Theoretical frameworks for social work practice. Routledge.
Zhang, H., Lee, M., & Wang, F. (2024). Product positioning strategies and their effect on bank performance in Asia. Asian Finance Journal, 21(1), 120–135.
Zhang, W., Lee, H., & Kim, J. (2024). Comparative analysis of product positioning strategies in the banking sector. Journal of Banking Strategies, 45(1), 12–29.
Zhou, Y., Lee, J., & Wang, H. (2020). Mobile banking efficiency and brand positioning in Rwanda. Rwandan Economic Review, 7(2), 45–60.
