CONSUMER SALES PROMOTIONS STRATEGIES AND BRAND LOYALTY: A SURVEY OF INTERNATIONAL FASTFOOD BRANDS IN NAIROBI, KENYA.

Abstract

The purpose of this research survey was to investigate the influence of consumer sales promotions strategies on brand loyalty of International Fast-Food brands in Nairobi, Kenya. Consumer sales promotions strategies examined included; Product sample promotion strategy, cross-promotion strategy, point-of-purchase display promotion strategy, and tie-in promotion strategy. The survey was informed by classical conditioning theory; operant conditioning theory; and behavior modification perspective. The survey adopted a descriptive survey methodology. The target population for the study encompassed 24 customer relations managers from the 24-registered fast-food brands in Kenya. A structured questionnaire was utilized as the data collection tool. The questionnaire was divided into two sections, section one containing the demographic data relating the respondent’s profile and the second part covering consumer’s sales promotion techniques on brand loyalty. Questionnaire items were structured with a 5-point Likert scale. Descriptive and ordinal regression statistics were used in the analysis of the data. Ordinal regression analysis method was used on the Likert scale to assess the influence between consumer sales promotions strategies. The survey established that product sample promotion strategy, cross-promotion strategy, point-of-purchase display promotion strategy and tie-in promotion strategy registered a positive influence of brand loyalty of international fast-food brands. The survey concluded that; free product samples strategy allow customers learn of the product attributes which motivates initial, repeat and increased purchase decision; cross Promotion strategy produce new value-added synergetic product which results into increased frequency of repeat purchase; point of purchase display promotion strategy provide requisite product information and motivate repeat purchase and tie in promotion strategy of resource pooling, offer bigger synergetic refunds to customers that lead to increased purchase frequency. Overall, the study recommends the identification of shortcomings hindering the four consumer sales promotions’ optimal effectiveness to re-engineer their appeal to the consumer for optimum brand loyalty. Specifically, Free sample’s strategic approaches comprising brand awareness, attributes, quality and confidence, need to be re-engineered. Also, there is need to enhance effectiveness of the cross-promotion strategy by identifying deficiencies among the strategy’s activities such as inter-brand online advertisement, new value-added synergetic product, role model advertisement sponsorship of the fast-food brand, social responsibility partnership strategy with global entities such as UNEP, UNICEF motivates customer’s referral. Similarly, there is need to detect and address gaps in the point-of-purchase sales’ strategic techniques such as brief product attributes, creative freestanding, as well as end caps tactical displays. Further, tie-in promotion strategic engagements such as collaboration, resource pooling, synergetic big contests, joint more value brand aspects, require more study to highlight areas of improvement.