The Effect of Mergers and Acquisitions on Brand Equity of Uap Old Mutual Kenya Limited

Abstract

The number of Mergers &Acquisitions in Insurance sector has increased in Kenya and the whole of East Africa. Every M & A provokes branding decision, the objective of this study was to determine the Mergers and acquisitions and their influence on brand equity of insurance institution in the Kenya Market, case of UAP Old Mutual group. The study was anchored on the efficiency theory which sights mergers as effective tool to gain benefits of synergy, and the Brand Equity theory that advocates that in for a strong brand to be brought into existence, customers must be shaped on how to perceive the company product. This was a case study since the unit of analysis was a single entity, that had five respondents from top level management, where managers in departments notably; marketing, strategy and development, corporate communication, under writing, and customer relations were interviewed for the study. This researcher utilized primary data, which was collected using an interview guide, the data was then analyzed using content since the data collected was qualitative in nature. The results in this study shows that, market share shift was evident driven largely by customer activity post-merger. The study found that positive implementation of merger deals characterized by proper communication of the details regarding any operational changes wielded a significant influence on customer perception on the company. Merger deal welcomed operational cooperation from two brands, core customers from both companies are vital in measuring attributes such as brand awareness, brand loyalty, perceived quality and brand association.