Advertising Promotion Strategy and Brand Equity-225

International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)

Vol. 2, Issue 1, pp: (22-29), Month: April 2014 - September 2014, Available at: www.researchpublish.com
ADVERTISING PROMOTION STRATEGY

AND BRAND EQUITY: A COMPARATIVE
STUDY OF ARIEL AND OMO WASHING
POWDERS, NAIROBI KENYA
Verah Bosibori Mogire1, Margaret Oloko2
1
Department of Commerce and Economic Studies, Jomo Kenyatta University of Agriculture and Technology, Kenya
2
Senior lecturer, Department of Commerce and Economic Studies, Jomo Kenyatta University of Agriculture and
Technology, Kenya
Abstract: The main objective of the study was to determine the extent of relationship between advertising
promotion strategies and brand equity. For this study, the accessible target population was 36 members of staff
and 116 customers of Proctor and Gamble and Unilever Companies Limited. The main primary data collection
instrument that was used was a questionnaire. The data was analyzed by the use of inferential data analysis tools.
Using the correlation values the researcher concluded that there was strong positive relationship between
advertising strategy and brand equity in Ariel washing powder and that the relationship is significant while there
was a weak positive relationship between advertising strategy and brand equity in OMO washing powder. The
correlation reported was positive and using the Pearson correlation (r) value, then the researcher can conclude
that the relationship was statistically significant.
Keywords: Advertising Strategy, Brand Equity, Promotion Strategy
1. INTRODUCTION
Advertising is a promotional marketing strategy companies use to create awareness about their products and services. The
goal of advertising as a promotional strategy is to generate a response from your target customer. You can use a variety of
different types of advertising: television and radio advertisements; print advertisements in newspapers, magazines and
journals; direct mail advertisements in which you send marketing materials directly to a select list of customers; and
outdoor advertising such as posters, banners, signs and bus ads (Scott,2013). Herbert, (2002) focuses on bad advertising
commercials and asserts that such advertising is not because of a lack of creativity, entertainment value or money for
production. Bad advertising is often because advertising creators fail to focus on potential end customers, and what they
need to see and hear (Herbert, 2002). Stephanie (1994) identified many marketing and non-marketing uses of advertising
by young Scottish adults and argued that this supports a view of audiences as active, selective and sophisticated
consumers of advertising. Brand equity is created through strategic investments in communication channels and market
education and appreciates through economic growth in profit margins, market share, prestige value, and critical
associations. Generally, these strategic investments appreciate over time to deliver a return on investment. This is directly
related to marketing ROI. Brand equity can also appreciate without strategic direction (Lasser, 1995). Procter & Gamble
Company Limited also known as P&G, is an American multinational consumer goods company headquartered in
downtown Cincinnati, Ohio, United States. Its products include pet foods, cleaning agents, and personal care products.
Unilever was founded in 1930 out of a merger between Lever Brothers (UK) and Uni-margarine (Netherlands) which
existed in the 19th Century, Unilever (Uni+Lever) is today one of the worlds leading Fast Moving Consumer Goods
(FMCG) company with a turnover of more than 4.3 billion Euros.
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2. LITERATURE REVIEW
2.1 Theoretical Framework
Using the Push Theory, you can increase sales by creating incentives to wholesalers or retailers to sell more of your
product. In this method you would offer discounts to wholesalers or retailers who buy your product in bulk,
(http://www.ehow.com/list_6524232_theories-sales-promotion.html, date accessed, 16th January, 2014). The Pull Theory
is about trying to market directly to customers to increase their demand for your product. Combination theory requires
both of the above theories working together. The "push" is used to get more product into the hands of retailers and
wholesalers while advertising and product tie-ins with other products are used as a "pull" to get more people to want to
buy the product. Grocery stores often use this tactic. They fill stores with products they have a high profit margin on (the
push) and run commercials that advertise the store ("A great place to shop" or "Your hometown grocery") rather than a
specific product (the pull) (http://www.ehow.com/list_6524232_theories-sales-promotion.html, date accessed, 16th
January, 2014).
2.2 Empirical Literature
Advertising is calling the public's attention to your business, usually for the purpose of selling products or services,
through
the
use
of
various
forms
of
media,
such
as
print
or
broadcast
notices
th
(http://www.entrepreneur.com/encyclopedia/advertising, date accessed 17 January, 2014). Advertising provides a direct
line of communication to your existing and prospective customers about your product or service. The purpose of
advertising is to: Make customers aware of your product or service; Convince customers that your company's product or
service is right for their needs; Create a desire for your product or service; Enhance the image of your company;
Announce new products or services; Reinforce salespeople's messages; Make customers take the next step (ask for more
information, request a sample, place an order (http://www.entrepreneur.com/encyclopedia/advertising, date accessed 17th
January, 2014). The goal of advertising as a promotional strategy is to generate a response from your target customer.
Firms that advertise more efficiently are rewarded by investors by positive stock returns (Sascha et al., 2011). Business
strategy must be accounted for to ensure that a firms market opportunities, brand opportunities, and core competencies
are being fully exploited in all marketing activities. Brand equity is the value of brand in the market place (Chris, 2008).
High brand value, a brand with high equity, means that the brand has the ability to create some sort of positive differential
response in the market place (Chris, 2008). Brand equity is a set of brand assets and liabilities linked to a brand name and
symbol, which add to or subtract from the value provided by a product or service (David, 2013). C-level executives, led
by the chief executive as brand champion, keep a keen eye on how their actions impact on brand equity, which in turn has
an effect on the overall value of the business (Michael, 2004). Brand awareness, brand image, and brand equity scales are
valid and reliable in the context of logistics services (Donna et al., 2009).
3. STATEMENT OF THE PROBLEM AND RESEARCH GAP

Ebru et al (2007) investigated the effects of selected marketing mix strategies on equity of brands performing in mobile
phone sector. Perceived price, intensity of distribution, advertising campaigns and sponsorships activities conducted for
the brand were proposed to be positively effective on the building of brand equity, and perceived intensity of price deals
performed for that brand was proposed to be negatively effective on brand equity. Another study conducted by Isabel et al
(2010), explored the relationship between two marketing mix elements-advertising and sales promotion and brand equity
creation. In particular, the study focused on advertising from a qualitative and quantitative perspective. Similarly, the
study investigated the effects of two kinds of promotion, that is, monetary and nonmonetary promotions. The findings
showed that the content of advertising play a key role in influencing brand equity dimensions, whereas, advertising
spending improves brand awareness but it is not enough to positively influence brand associations. The researcher finds
distinctive effects of monetary and non monetary promotions on brand equity. However, these studies focus on the
relationship between the promotion strategies and brand equity, the studies do not show the extent of the relationship
between advertising promotion strategy and brand equity. The researcher will therefore focus on the extent of the
relationship between advertising promotion strategy and brand equity.
Page | 23

4. METHODOLOGY
The research design for this study was descriptive and inferential. The target population for this study was the
management and the customers of proctor and gamble and unilever companies limited. Data was collected using a
questionnaire. A likerts scale was used in a scale of 1 to 5 where 1 and 2 was regarded as an average of negativity, 3
being the average for neutral or uncertain responses and lastly 4 and 5 average for positivity. SPSS was used in the
processing of data and the information generated was presented in form of figures and percentage tables.
5. RESULTS AND DISCUSSION

The Knowledge of Advertising Strategy and its Practice in Proctor and Gamble and Unilever.
Table 1. The Knowledge of Advertising Strategy and its Practice in Proctor and Gamble and Unilever.
Advertising is the strategy P &G and
Unilever use to create awareness on Ariel
and Omo washing powders
Agree
P & G practice
advertising
Unilever practice
advertising
strongly agree
Total
Agree
Strongly agree
11
Agree
Strongly agree
TOTAL
10
10
25
34
In table 4.3, it is evident that Proctor and Gamble appears to be having most of the employees understanding the meaning
of advertising strategy. When there is that high understanding of a strategy in an organization, then it means the strategy
can be used for the benefit of an organization. It is also evident that Unilever company appears to be having most of the
employees understanding the meaning of advertising strategy. When there is that level of understanding of a strategy in an
organization, then the strategy can be used for the benefit of an organization. Table 4.3 and 4.4 is not enough to derive a
conclusion on which product is more of a brand than the other. The researcher therefore sought the feelings of the
customers of both products to come to this conclusion as shown in table 4.4.
Table 2. Consumers and the Demand of Ariel and Omo at P&G and Unilever.
Consumers demand either Ariel or Omo and will travel
distance to find it
Ariel
Agree
Strongly
Omo
Agree
Strongly
Page | 24

agree
agree
TOTAL
Consumers
like Ariel and
become
repeat
consumer
Agree
55
Consumers
like Omo and
become
repeat
consumer
Strongly
agree
55
Agree
58
58
53
55
From the table 4.4, 55 distributors out of 58 from which the sample was taken strongly agreed that they have high demand
of Ariel washing powder and they will travel distance looking for it and they are repeat consumers of this washing powder
which is a product of P&G. This translates to 0.95 which is strong enough to conclude that Ariel is more of a brand
compared to Omo washing powder. On Unilever side, 53 distributors out of 58 from which the sample was taken strongly
disagreed that they have high demand of Omo washing powder and they will travel distance looking for it and they are
repeat consumers of this washing powder which is a product of Unilever. This translates to 0.91 which is strong enough to
conclude that Omo is less of a brand compared to Ariel washing powder which had a 0.95 positive response.
Table 3. Relationship between Advertising Strategy and Brand Equity in P&G and Unilever
Practice advertising
P&G
P&G
Practice
advertising
Pearson Correlation
Unilever
Unilever
P&G
0.016
18
Pearson Correlation
18
1
0.098
Sig. (2-tailed)
N
Companies
that want to
achieve
P&G
Unilever
0.592*
Sig. (2-tailed)
N
Companies that want to

achieve brand equity
should use advertising
0.719
18
Pearson Correlation
.592*
Sig. (2-tailed)
.016
18
18
Page | 25

brand equity
should use
advertising
N
Unilever
18
18
Pearson Correlation
0.098
Sig. (2-tailed)
0.719
18
The correlation reported in the Table 4.5, is positive and being that the Pearson correlation (r) at 95% level of confidence
is 0.592, then the correlation is statistically significant. The significant value of .016 (2 tailed) at 18 number of chances
also show the significant relationship because it falls between .000 and 0.050. This suggests that the company should
focus more on advertising strategy because there is significant effect of advertising strategy on the customers awareness
of the product, customers recognition of the product, and customers loyalty. The correlation reported in Unilever is
positive and being that the Pearson correlation (r) is 0.098, then the correlation is statistically insignificant. The significant
value of .719 (2 tailed) at 18 number of chances also show the insignificant relationship. This suggests that the company
should not focus more on advertising strategy because there is insignificant effect of advertising strategy on the
customers awareness of the product, customers recognition of the product, and customers loyalty.
6. CONCLUSION
Using the correlation values the researcher can conclude that there is strong positive relationship between advertising
strategy and brand equity in proctor and gamble and that the relationship is significant. The correlation reported was
positive and using the Pearson correlation (r) value, then the researcher can conclude that the relationship was statistically
significant. There is a weak positive relationship between advertising strategy and brand equity in unilever Kenya. This
prompted the researcher to suggest that P&G should focus more on advertising strategy because there is significant effect
of the advertising strategy on customers awareness of the product, customers recognition of the product, and customers
loyalty.
RECOMMENDATION
On the basis of this study, the following recommendations are made: From the study, it is evident enough that the more
knowledge the employees have concerning advertising promotion strategy, the more it is practiced. For instance in P&G,
a wide knowledge and practice in advertising by the employees has a positive impact on the relationship of the strategy
and brand equity. It should be however noted that it is the customer who build brands and not companies, it is therefore
essential that the customers sentiment and behaviour is tracked to get a complete understanding of brand equity. If
consumers believe in the brand it has far more equity than a brand that consumers dont care about or believe in.
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International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)