The determinants of brand equity in the bottled drinking water industry in Nairobi

Abstract

This study was conducted in the period between June and September 2002. I'he study had an objective of finding out the determinants of brand equity in th bottled drinking water industry in Nairobi. To achieve the objectives of the study, primary data was collected from 108 respondent. selected from five middle-income estates in Nairobi. The middle-income estates of concern 'were Umoja, Embakasi, Buruburu, Komarocks and Jericho. Respondents we re systematically selected where houses were numbered and randomly selected where houses were not numbered. The primary data was collected through structured questionnaires that contained several factors that the researcher felt had a bearing in influencing each of the four aspects of brand equity (Brand Awareness, Brand Loyalty, Brand Associations and Brand Perceived Quality). Respondents were then required to rate each of these factors on a five point Likert scale with rating ranging from very important (5) to not important at all (l ). The major findings of the study were that: 1) Product differentiation, effective brand communications, word of mouth communications, quality assurance and effective distribution are important factors in influencing brand awareness in the bottled drinking water industry in Nairobi 2) Augmented rroducr and product liability, effective distribution. positive associations. effective brand corrununications and price differentiation ar important factor" th, t enhance brand loyalty in the industry. 3) Organizational associations, brand value associations and personality associations are important factors in enhancing brand associations in the industry 4) Quality attainment and organizational image, service that comes with the brand. brand value proposition and effective brand communications are important factors that enhance brand perceived quality in the industry. The recommendations drawn from the study were that players in the in lustry should take concern of the identified factors that were deemed crucial in enhancing brand equity . If these considerations are implemented, then companies can be sure to hav a competitive edge oyer others that do not put them in consideration. The researcher proposed future researches that take to determine the direction of these factors if they are to enhance equity in the industry. In this research, the researcher sought to only identify the factors that enhance brand equity in the bottled water industry, without going further to determine the directions that these factors take.