Effectiveness of Branding on Competitive Advantage of Insurance Firms in Kenya

Abstract

The objective of the study was to determine the effectiveness of branding on competitive advantage of insurance firms in Kenya. The study's specific objectives were: to determine the branding practices employed by insurance firms in Kenya and to establish the effect of branding on competitive advantage of insurance firms in Kenya. This study was based on Michael Porters competitive forces model and the brand equity theory. Descriptive cross sectional research design was used to address this research problem. The population target for this study was the 49 insurance companies operating in Kenya as at 31st December 2017. Since the population of the study is relatively small, the researcher conducted a census study and so all the 49 firms were selected for the purpose of this study. The study focused particularly on senior level managers of the insurance companies. The researcher believed that they are the most informed on the various branding strategies employed by the firms. The study used primary data collected using questionnaires. Two respondents from each organization were chosen upon which the questionnaires were administered. Descriptive statistics were used to analyze the data. Descriptive statistics displayed data in percentages, mean, frequencies and standard deviation. Results were presented through graphs and tables. The researcher also conducted correlation and regression analysis to determine the relationship between the study variables. The study concluded that insurance firms had employed branding. Branding was in various ways such as brand association, brand communication, brand positioning, and brand identity. Use of branding enhanced the competitive advantage of the insurance firms in Kenya. The study also concluded that the effect of branding on the competitive advantage of insurance firms was positive. This was realized after establishing that brand association, brand communication, brand positioning, and brand identity had a positive and significant relationship with the competitive advantage of the insurance firms in Kenya. This meant that use of branding increased the competitiveness of the insurance firms.