A survey of the extent to which manufacturers of fast moving consumer goods in Nairobi practise cause related marketing

Abstract

Globalization has led to heightened competition for Fast Moving Consumer Goods (FMCGs) and businesses are looking for new ways to gain consumers' attention (Martinez, 2003). In addition, there is an increasing pressure on governments and businesses to explore and develop solutions to the social problems facing society today (Kamau, 2001). Cause Related Marketing has become an increasingly significant contributor in differentiating the company and enhancing corporate image, as well as increasing customer loyalty and sales, while at the same time addressing social needs and the needs of charities and causes (Adkins, 2004). The objectives of this study were to determine the extent to which Cause Related Marketing is practised by manufacturers of fast moving consumer goods in Nairobi, to determine the benefits derived from the practice of Cause Related Marketing and the challenges faced by manufacturers of fast moving consumer goods in Nairobi practising Cause Related Marketing. The study targeted senior managers involved in the decisions pertaining CRM. A descriptive survey was used, and the questionnaire consisted of open-ended. structured and semi-structured questions, which was pre-tested for clarity. The 'drop and pick later' method was used to administer the questionnaire to respondents in Nairobi. This was a census study. The data was analyzed using frequency distribution, percentages, mean scores and standard deviations. -. The results show that the firms dealing in Fast Moving Consumer Goods use Cause Related Marketing only to a moderate extent. The firms meet some of the requirements for practicing CRM like having the top management get involved in CRM decisions, and donating some percentage of their proceeds to designated causes. In addition. they also align their company objectives to the society needs to a large extent. I Iowcvcr, use of the promotional mix to communicate to customers about the causes being supported is done to a very small extent, with the respondents citing cost of creating awareness Oil the media as the biggest barrier. It is evident that customers are hardly informed of how they can participate in causes through purchase of the company products, nor are they informed of the impact of their support to the society issues. The major challenge cited by respondents is the intangibility of the benefits enjoyed by practice of Cause Related Marketing, and limited finances. The benefits cited by respondents are majorly to do with enhancing the company image and creating better relations with the society. The following were the limitations found in the study. The fact that the study was restricted to only the manufacturers of Fast Moving Consumer Goods who are subscribed to the Kenya Association of Manufacturers was one of them. There was also reluctance by some respondents to divulge information regarding their firms. Suggestions for further research include studies on customer awareness and participation in Cause Related Marketing to find out what charities customers support or would like to support through CRM, and managers' awareness levels and attitudes towards Cause Related Marketing as compared to corporate philanthropy.