Relationship Between Types of Corporate Sponsorship and Brand Equity amongst Beverage Companies in Nairobi City County, Kenya

Abstract

Global competition has called for companies to be more innovative in the way they position their brand to achieve a competitive edge. Therefore, companies have adopted more non-traditional ways to showcase their products and achieve more audiences as possible. One of the innovative ways of marketing that have gained more attraction among corporate marketers is corporate sponsorship. Marketers have found corporate sponsorship to be more effective in creating brand awareness and re-shaping brand attitudes amongst prospective customers. The purpose of the current study was to investigate the influence of corporate sponsorship on brand equity among beverage companies in Nairobi City County. The specific objectives of the study were to establish the relationship between sporting event sponsorship, education sponsorship, arts, and culture sponsorship; tradeshows, and conference sponsorship, and brand equity amongst beverage companies in Nairobi City County. The study adopted a descriptive survey while purposive sampling was used to identify 10 beverage and food manufacturing companies in Kenya as the unit of analysis. 237 public relations and marketing managers in the beverage companies sponsoring different activities such as sports, education, arts, and culture as well as trade shows and conferences were selected as the unit of observation. Sampling for the study was conducted through a stratified sampling technique in addition to the Taro Yamane Formula to achieve a sample size of 149 respondents. Data for the study was collected using questionnaires that were administered physically as well as online. A pilot test was conducted to test the reliability as well as the validity of the instrument. Collected data was analyzed through descriptive and inferential analysis. Descriptive statistics included: mean, frequency, percentage, and standard deviation. Inferential analysis on the other hand included correlation as well as regression analysis. The presentation of data was done on tables and interpreted narratively. Sports sponsorship and Brand Equity revealed a β= 0.527, t= 2.903, and a p-value of 0.004. Arts and Culture sponsorship and Brand Equity revealed a β= 0.036, t= 0.392, and a p-value of 0.069. Education sponsorship and Brand Equity revealed a β= 0.254, t= 2.566, and a p-value of 0.012. Trade shows, Conference sponsorship, and Brand Equity revealed a β= 0.312, t= 2.697, and a p-value of 0.008. The study concluded that sports sponsorship, education sponsorship, trade shows, and conferences had a positive and significant relationship with brand equity. However, arts and Culture sponsorship had a positive but insignificant relationship with brand equity. The study recommended that beverage companies and the managers identify the best sporting activities in the community. Also, the study recommended that the sporting activities being sponsored should bear a logo such as the uniform of the players for the sponsoring beverage company to boost the brand image. Additionally, the study recommended that public relations managers and marketers needed to identify talented musicians in the society. Moreover, the study recommended that the musicians can also act as the brand ambassador of the beverage companies by using sponsoring companies' tags and logos during music shows. The study also recommended that public relations managers and marketing managers need to identify needy and also bright students in society who are enrolled in schools by giving them scholarships to boost their corporate image. Besides, the study recommended that the marketers and public relations managers sponsor conferences such as smart climate. Finally, the study recommended that the speaker in such instances may prepare presentation slides or use portraits that display strategically the logo of the beverage company sponsoring such a program.