THE EFFECT OF PROMOTIONAL MIX PRACTICES ON BRAND EQUITY THE CASE OF HEINEKEN BREWERIES

Abstract

This study is intended to investigate the impact of promotional tools on customers for Brand equity. So, the objective of this research is: to analyze the promotional tools and their significance for Brand equity, to find which promotional tool is more valuable for Heineken beer Brand equity. The nature of this study has been cross sectional field survey sideways with descriptive research design. This study has been conducted on customers of Heineken beer in Addis Ababa city. The sampling technique employed in this research have been both probability and nonprobability that included the purposive cluster sampling method as the researcher first delimit the area using cluster and purposive technique. After the specific area has been identified, the sample size has been determined using Cochran’s (1963) approach. Later, structured questionnaires have been distributed for 384 randomly selected samples of which 384 respondents have returned the questionnaires. The qualitative results were interpreted qualitatively, analysis and interpretation of the collected data were conducted by using descriptive and inferential statistical tools with the help of SPSS. The finding of this research clearly states that promotion is considered as a significant instrument for a firm’s great effort in order to differentiate their products from competitors and effective implementation of those five tools of promotion has a significant effect on customers for Brand equity though the effectiveness of each tool’s level differs. Promotion is vital in informing, reminding and influencing the purchase of Heineken beer and in developing and infusing strong and dominant brand because it enhances perceived superiority of the brand or customer based Brand equity on side of existing and potential customers and helps to distinguish brands from other similar product providers in competitive markets. The researcher recommended that managements of Heineken beer have to conduct their business with promotional activities and implement and work on the promotional tools effectively.