| dc.description.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. | en |
