GHNANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA)

GREENHILL COLLEGE

THE EFFECT OF ADVERTISING ON BRAND BUILDING (A CASE STUDY OF KASAPREKO

COMPANY LTD)

BY

NAME OF STUDENT INDEX NUMBER SIGN DATE

Sylvia Adjeley Konney 217000541

Nana Yaa Asantewaa Appah 217016014

Vivian Adjah 217025552

Patricia Dede Amoo 217004466

Anthony Glah 217002897

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IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF B.S.C

MARKETING.

MAY 2018

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 DECLARATION

We, the undersigned, do hereby solemnly declare that this dissertation is the result of our original

research and that no part of it has been presented for another degree in any University. However,

all sources of borrowed materials have been duly acknowledged.

NAME OF STUDENT INDEX NUMBER SIGN DATE

Sylvia Adjeley Konney 217000541

Nana Yaa Asantewaa Appah 217016014

Vivian Adjah 217025552

Patricia Dede Amoo 217004466

Anthony Glah 217002897

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 CERTIFICATION

I certify that this long essay was supervised in accordance with the regulations set by Ghana

Institute of Management and Public Administration (GIMPA).

……………………… ………………….

(Supervisor’s name) (Signature) (Date)

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 DEDICATION

We first and foremost dedicate this project to the Almighty God for His grace and strength to go

through a beautiful and knowledge filled top up program.

We secondly dedicate this project to our supervisor, Mr. Otto Afuic for his patience with us

regardless the challenges we faced. We appreciate you very much.

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 ACKNOWLEDGEMENT

We would like to express our profound gratitude to our supervisor, MR. OTTO AFUIC for

successfully seeing us through this project. His strict supervision kept us on our toes, he has

actually taught us not to settle for mediocrity. His patience for us throughout this project is much

appreciated and we are very grateful.

We also extend our gratitude to this institution GHANA INSTITUTE OF MANAGEMENT AND

PUBLIC ADMINISTRATTION (GIMPA) for giving us the opportunity to study here.

Our final acknowledgement goes to our friends and families who have been of great support to us

throughout this project.

Thank You.

SYLVIA ADJELEY KONNEY

NANA YAA ASANTEWAA APPAH

VIVIAN ADJAH

PATRICIA DEDE AMOO

ANTHONY GLAH

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TABLE OF CONTENT
DECLARATION iii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENT vi
TABLE OF CONTENT 1
ABSTRACT 2
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Problem Statement 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Significance of the Study 4
1.6 Organization of the Study 5
CHAPTER 2 6
LITERATURE REVIEW 6
2.1.0 Theoretical Literature 6
2.1.1 Brief Overview of the Marketing Communication Mix 6
2.1.2 Advertising 7
2.1.2 The Role and Approaches of Advertising 8
2.1.3. Media Decisions in Advertising 9
2.1.4.0 Media Types 9
2.1.5 Advertising and Market Share 11
2.1.6 The Effects of Advertising on Consumers 12
2.1.7 Building a Brand 12
2.2 Empirical Literature 13
2.3 Kasapreko at a Glance 15
CHAPTER THREE 17
METHODOLOGY 17
3.1 Research Design 17
3.2 Population and Sampling 17
3.2.1 Population 17

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 3.2.2 Sample Size and Sampling Technique 18
3.3 Data Collection Method 18
3.3.1 Narration 19
3.4 Data Analysis 19
CHAPTER FOUR 20
DATA ANALYSIS AND DISCUSSION 20
4.1.0 Discussion of Responses from wholesalers 20
4.1.1 Products of Kasapreko 20
4.1.2 Why people purchase KCL Products 21
4.1.3 Advertising and Brand building 22
4.2.0 Discussion of Responses from KCL Management 22
4.2.1 Purpose of Advertisement 22
4.2.2 Measurement of Advertisement objectives 23
4.2.3 Brand building tools of KCL 23
4.2.4 Periods and Approach of Advertising by KCL 24
CHAPTER FIVE 25
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 25
5.1 Introduction 25
5.1 Summary 25
5.2 Conclusion 26
5.3 Recommendations 27
5.4 Limitations of the Study 27
Reference 29

ABSTRACT

The concept of brand in today’s global market can never be left to chance. Observation has proven
on various platforms that most well noted firms like Unilever and brand names like Louis Vuitton
enjoy their goodwill not just because they have been in existence for a very long time.
Kasapreko is a well-known brand and has some of the most popular beverages in Ghana.
Kasapreko has “a top of the mind” awareness among consumers in the Ghanaian beverage market.
The company has consistently invested heavily in the promotion of its flagship brand (Kasapreko)
through the use of advertising and other promotional activities such as sales promotion,
sponsorship. The findings of this research will assist organizations to manage resources and make
appropriate decisions in terms of advertising. It will also provide the requisite information that
informs decisions on the appropriate strategies of advertising that will benefit organizations both

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in the long and in the short term. This study was undertaken to assess the role of advertising in
brand building: a case study of Kasapreko Company Ltd (KCL). The study assessed the role
various types of advertising undertaken by KCL and the role advertising plays in building its brand.
The study also obtained from wholesalers of KCL products the major factors that they think
influences the choices of consumers. Fifteen respondents in the wholesale businesses of KCL
products and the management were selected for the study, structured interview was used to collect
data from them. A thematic analysis of the responses from the interview was performed. The study
reveals advertising as a powerful tool serving mainly communication purposes. It provides a wider
medium for organizations to choose from and offers a higher reach than almost all the other
marketing communication tools. Advertising mainly helps create awareness of a brand’s existence,
its characteristics and value and is a powerful tool that easily influences consumers by assisting in
the creation of a perception either desirable or undesirable about an advertised brand. In view of
this it was recommended that Organisations must commit enough resources financial, human and
other resources- to advertising in order to reap the lasting benefits it has to offer including brand
awareness leading to positive perceived brand image which results in brand loyalty and finally
developing into brand equity.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The concept of brand in today’s global market can never be left to chance. Observation has proven

on various platforms that most well noted firms like Unilever and brand names like Louis Vuitton

enjoy their goodwill not just because they have been in existence for a very long time. Since 1987,

when the concept of "brand equity" was initiated by the financial valuation of brands, companies

have tried to create and maintain the precursor to brand equity (Smith & Taylor, 2002).

As defined by the Advertising Association of the UK, advertising is a means of communicating

with the users of the product or service. Advertisements are messages paid for by the company

who sends them and are intended to inform or influence people who receive them

(Economictimes.com, 2018). Advertising can be done in print, social media, press, television,

radio, internet, direct selling and through sponsorships.

Branding on the other hand seeks to distinguish a company’s product or services from its

competition and create a long-lasting impression in the minds of customers and prospects. It also

increases employees’ loyalty and satisfaction. A brand therefore is a logo, name, term, signs,

symbols or a design or a combination of them to intend to identify goods and services of a

company. (Gordon, & Schoendachler, 2002).

More and more businesses are recognizing the need to develop and maintain high brand image in

order to attract and maintain loyal customers to ensure long-term profitability. Creating and

maintaining loyal customers, however, has become increasingly difficult in today's competitive

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environment. There are numerous brands in the market with little variety and that may meet the

needs of the customer. Branding therefore has become very paramount in today’s business

environment since gaining and developing loyal customers do not only refer one's tendency to

repurchase the same brand time after time, but also to have a psychological commitment or

attitudinal bias toward the brand (Lovelock & Wirtz, 2004). Thus, the truly brand loyal customer

not only buys the brand but refuses to switch even when a better offer comes along with a similar

product of a different brand.

Organizations have therefore adopted numerous forms over time shifting away from the early

technique of creating and building customer loyalty through mass awareness advertising

campaigns. They have recently adopted to new ways by using a blend of the available marketing

communication mix tools such as advertising, sales promotion, public relation, personal selling

and direct marketing. As one may suggest, “brands reside in the minds of consumers”. The real

value of a strong brand is its power to capture consumer preference and loyalty.

Observing the Ghanaian media- television, print, radio, billboards and interactions with people-

advertising, one of the marketing communication tools seems to play a major role in creating

product and brand awareness, does it just end there? The research seeks to provide an answer, after

a careful and critical analysis, to advertising and its effects on brand building in Ghana.

The study will entail analysing a case study using Kasapreko Company Limited in Ghana as our

focal point in relation to other alcoholic and non-alcoholic beverage firms. Kasapreko Company

Limited (KCL) is one of the very first alcoholic and non-alcoholic drink manufacturers in Ghana.

The company was set up in Nungua in Accra, by a visionary leader and businessman, Mr. Kwabena

Adjei in November 1989. The company is now located off the "Spintex road", one of the principal

2
industrial arteries of Accra, where a state-of-the art automated factory has been built to meet the

increasing demands on the African market. This study will attempt to identify the role

advertisement plays in brand building by exploring the various mechanisms that help to build

brand personality through advertising, this is to serve as a guideline for start-up brands in Ghana

1.2 Problem Statement

Media and society are inter-related and affect each other in many ways. Sometimes media

communication is guided by society and sometimes media have dominance over society. The mass

media are essential not only in promotion and propagation of innovative ideas but also in

transformation of the society. The media affects and changes the behaviour, thinking, perception

and ideas of people often.

All companies strive at brands including small companies and start-ups however there is no clear

literature on how companies who have successfully built their brands went about it. This study is

to breach that gap by coming out with findings about the role advertising plays in brand building

to serve as a guideline for start-up companies and small companies.

Kasapreko is a well-known brand and has some of the most popular beverages in Ghana.

Kasapreko has “a top of the mind” awareness among consumers in the Ghanaian beverage market.

The company has consistently invested heavily in the promotion of its flagship brand (Kasapreko)

through the use of advertising and other promotional activities such as sales promotion,

sponsorship etc. This may partly account for their success in the beverage industry (Koomson,

Owusu & Akati, 2008).

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However, in recent times, there has been an intense competition among the various players in the

beverage industry, necessitating that each of them adopts strategies to either win or survive in this

era of competitive business.

The question that one may ask is “why the company continues to use this communication tool even

though it is already enjoying success?” The study therefore seeks to evaluate how advertising has

helped Kasapreko to build its brand. This is to help upcoming brands in their decision making.

1.3 Objectives of the Study

 To evaluate how advertising has helped build the Kasapreko brand.

1.4 Research Questions

 How advertising helped Kasapreko to build its brand?

1.5 Significance of the Study

The findings of this research will assist organizations to manage resources and make appropriate

decisions in terms of advertising. It will also provide the requisite information that informs

decisions on the appropriate strategies of advertising that will benefit organizations both in the

long and in the short term. The research finding further aims at changing the perception of

organizations about advertising as a defence strategy against their competitors and establish that it

is an essential tool for creating brand value. Finally, the research will provide an overview on how

advertising must be viewed and utilized when making brand building decisions.

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1.6 Organization of the Study

The study will consist of five chapters. Chapter one will describe the background of the study, the

problem statement, the research objective, research questions.

Review of related literature in relation to the topic will be presented in chapter two as well the

profile of Kasapreko Company Ltd.

Methodology that will be used will be described in chapter three and this will consist of Research

design, Population, Sample and Sampling Procedure for collecting data, Research Instruments,

Data Collection Procedures and Analysis of data that will be collected.

The chapter four will show the analysis of key findings that may arise from the study. Chapter five

will end the study and will provide conclusion the necessary recommendations.

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 CHAPTER 2

LITERATURE REVIEW

2.1.0 Theoretical Literature

2.1.1 Brief Overview of the Marketing Communication Mix

Marketing is defined according to the Chartered Institute of Marketing (UK) as ‘the management

process responsible for identifying, anticipating and satisfying customer requirements profitably’

(Smith & Taylor, 2002). By this definition, marketers are to ensure the production of tailor-made

goods and services to satisfy the needs and wants of society. The existence of these goods and

services are not made known to customers in their ‘dreams’; the duty lies on organizations to

explain what products and services they produce and how they satisfy the needs and desires of the

consumer.

There is the need therefore for organizations to identify the means by which products information

could be communicated to potential buyers in a manner designed to prompt positive action, which

involves the use of marketing communication mix also known as the promotional mix. Marketing

communication mix could be defined as the combined communication elements under the

promotion tool of the marketing mix available to the organization for communication to its target

audience. According to Smith & Taylor (2002), stated that the conventional communication tasks

of marketers are generally confined to the communications mix. The communications mix includes

but not limited to Advertising, Sales promotion, Public relations, Sponsorship, Direct marketing,

Personal selling, etc. In combining these tools, the marketer needs to take into account the

appropriateness to the target market, of which each tool will generate the expected response when

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combined into the mix. It is worth knowing that the importance of each communication tool varies

according to the type of customer and general pattern of communication in a market.

Bala Sa-ad (2009), states that the adaptation of the communication tools enables organizations or

businesses to inform, persuade and remind consumers directly or indirectly about their products,

services and brands. He emphasized that marketing communications represent the voice of the

business entity and its brands, and also a means through which the company can establish a

dialogue and thus build relationships with customers.

2.1.2 Advertising

Advertising is one important player in marketing communication mix. It is therefore paramount

for the sake of this research to determine what advertisement is all about. Advertising according

to Louis, Boone & Kurtz (1999), is any paid non-personal communication through various media

about a business firm, non-profit organization, product, or idea by a sponsor, identified message

that is intended to inform or persuade members of a particular audience. It involves the creative

use of well-developed audio, visual and audio- visual themes to communicate a product/ service

and its offerings to customers. It is believed to be very effective when exposed to customers for a

longer period of time.

Advertising as identified by Belch & Belch (2004), plays a major role in a competitive environment

by making customers aware of services and providing them with information necessary for

decision-making. Various businesses and organizations therefore adopt it as one of the main

promotion tools to differentiate, remind, inform and persuade customers in an attempt to attract

and retain both new and existing customers.

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It is suggested by Van & Steenkamp (2008), that advertising normally results in the creation of

quality expectation in the minds of potential customers resulting in customer purchase decision. It

should however be appreciated that the contents of the messages do not help achieve differentiation

but the quality of execution of the advertisements (Fill, 2002). However, it is worth noting that

several factors influence customers purchase decision, one of which is communications. These

include what is heard, felt, or experienced and identity cues.

2.1.2 The Role and Approaches of Advertising

Advertising as a promotion element has a great influence on a company’s communication impact.

It influences audience by informing or reminding them of the existence of a brand or alternatively

by persuading them to purchase a product or brand or helping them to differentiate a product or

organization from the others in the market. The regular use of advertising in organizations with

other elements of the communication mix can be important to the creation and maintenance of a

brand personality. The main role of advertising therefore is to create awareness and induce

dialogue and to reposition brands by changing both perception and attitudes.

Fill (2002) distinguishes between the various approaches used in advertising. He cites the two as

the Rational and Emotional approaches. He explains the rational approach as advertisement that

emphasizes the functional aspect of the brand and the benefit to consumers. He stressed that this

approach focuses on the product performance and identifies its key attribute to position the brand

advertised using the Unique Selling Propositions to draw attention to a single functional advantage

that the brand claims to have and which consumers find attractive.

Brand equity as defined by Kotler & Armstrong (2004), is the positive differential effect that

knowing the brand name has on customer response to the product or service. Brand equity from

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the above definition can be explained as an inherent benefit or goodwill that results from the

favourable impressions drawn about a brand name or trademark that causes consumers to strongly

stick to those names, brands or trademark. Brand equity has been identified to give companies

competitive advantage and is reinforced through advertisements. Brand equity, which is an

essential element in enhancing brand building, is achieved through marketing communications that

create brand awareness and forge favourable, strong or perhaps unique associations in the

consumers’ memory between the brand, its features and benefits.

According to Terrence (2002), advertising in several ways aids and contributes to brand building

by facilitating other promotional efforts in marketing communications like sales promotions and

personal selling by first pre-selling a company product and providing a sales person with

introduction prior to personal contact with prospective customers.

2.1.3. Media Decisions in Advertising

A major decision for advertisers is the choice of medium- the channel used to convey a message

to a target market. Specifically, the advertisers must determine which types of media will best

communicate the benefits of their product or service to the target audience and when and for how

long the advertisement will run.

2.1.4.0 Media Types

Advertising media are channels that advertisers use in mass communication. The seven major

advertising media are newspapers, magazines, radio, television, outdoor media, yellow pages and

the internet.

2.1.4.1 Newspapers: The advantages of newspaper advertising include geographic flexibilities

and timeliness. Because copy writers can usually prepare newspaper adverts quickly and at a

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reasonable cost, local merchants can reach their target market almost daily. Newspaper advertising

encounters a lot of distractions from competing advertisement and news stories. Thus one

company’s advertisement may not particularly be visible.

2.1.4.2 Magazines: Compared to the cost of other media, the cost per contact in magazine

advertising is usually high since magazines are often targeted to specialized audiences; it thus

reaches more potential customers. One of its main advantages is its market selectivity in ready

target audiences, quality reproduction, long life, the prestige associated with some magazines and

the extra services that many publications offer.

2.1.4.3Radio: It has several strengths as an advertising medium; selectivity and audience

segmentation, a large out-of- home audience, low unit and production costs, timeliness, geographic

flexibility and immediacy as studies have shown that people regard radio as the source for up- to-

date news.

2.1.4.4Television: Television is the dominant medium for national advertising. It is an audio visual

medium because it provides advertisers with creative opportunities. It offers the advantages of

powerful impact, mass coverage, repetition of messages, flexibility and prestige. It is however

disadvantaged by high mortality rates for commercials and some public distrust among others.

The great advantage of TV over all other media is its ability to combine sound, vision and

movement. This combination permits the use of advertisements that demonstrate the product and

its advantages which most would agree, is far more effective than a written or static visual

representation.

2.1.4.5 Outdoor media: Out- of- home advertising is a flexible low-cost medium that may

take a variety of forms. Examples include, billboards, mini-billboards in malls, on bus stop

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shelters, signs in sports arenas, lighted moving signs in bus terminals and airports, and ads painted

on the sides of cars, trucks or buses. It reaches a broad and diverse market and one of its main

advantages is that its exposure frequency is very high.

2.1.4.6Internet: It has established itself as a solid advertising medium for having undoubtedly,

with the World Wide Web (WWW), shaken up the advertising world. Banner ads are a form of

internet advertising whereby banners with advertised products pop up and come across the screen

so as to be seen by internet surfers when they open a page on a website, they are commonly used

in internet advertising. Marketers through various researches have now recognized that banner ads

can build brand awareness and it is further observed that brand awareness increases by 5% and

that association between the brand and its tagline increases by an average of 16% with banner

advertising.

2.1.5 Advertising and Market Share

According to Terence, (2002) new brands with a small market share tend to spend more on

advertising than those with a large market share, typically for two reasons:

First, beyond a certain level of spending for advertising and sales promotion, diminishing returns

sets in. That is, sales or market share begins to decrease no matter how much is spent on advertising

and sales promotion. This phenomenon is called the advertising response function.

Secondly new brands tend to require higher spending for advertising and sales promotion.

Therefore, with a new brand even a minimum level of exposure can measurably affect purchase

habits towards those new brands.

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2.1.6 The Effects of Advertising on Consumers

According to Lamb, Hair & McDaniel (2004), advertising affects consumer’s daily lives,

informing them about products and services and influencing their attitude, beliefs and ultimately

their purchases. To them advertising cannot change consumers deeply rooted values and attitudes

but may succeed in transforming a person’s negative attitude towards a product into a positive one.

Young adults for instance feel that beer is for the elderly and so they prefer other types of alcoholic

drinks to beer (Gius, 1996). For this reason, beer marketers often use humorous adverts to

communicate the core benefit of their product to young adults. The effect of these humorous

adverts is that they tend to appeal to these young adults because they are able to recollect them

from memory easily while they scan their memories in the product-related purchase situation.

According to them advertising also reinforces positive attitudes towards brands in that when

consumers have a neutral or favourable frame of reference towards a product or brand advertising

often positively influences them. They also believe that when consumers are already highly loyal

to a particular brand, they may buy more of it when advertising and promotion for that brand

increase.

2.1.7 Building a Brand

The global market is currently made up of similar products, offering almost the same value and

satisfaction. Well-doing companies have accepted this great threat and have capitalized on their

unique competencies to transform these threats into opportunities. Brands of these companies have

come to light not by accident, it accumulates from a marketing effort that sees to creating

consistent, relevant and distinctive messages around the brand names to exude strong personality

and generate the needed attention from the consumer.

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A brand is an intangible asset and could best be described as a name or label. It does however

worth more than just a name and labelling depending on the value it has been filled with, it is a

promise, an expectation, and ultimately an experience. The word “Brand” assumes its origin from

the Old Norse ‘brand’, meaning ‘to burn’. It is defined by the Oxford American Dictionary (1980)

as a trademark, goods of a particular make: a mark of identification made with a hot iron: to mark

with a hot iron or to label with a trade mark.

Brands could be assumed to be intrinsically striking with the main role of creating an indelible

impression (Interbrand, 2004). A brand must be visually distinctive in the form of shape, name,

colour, slogan, symbol, etc. Contemporary marketing ensures the satisfaction of customer

expectation by producing goods and services that meet his desires. It is noted that customers of

today have a diversity of choice to pick from. This exerts much pressure on a company to offer

high quality and excellent value product with a wide range distribution channels and find different

ways of differentiating their product and services to meet customer expectation.

2.2 Empirical Literature

A research undertaken by Rajagopal (2005), a professor of Marketing, Business Division,

Monterrey Tec University in Mexico on the topic, “Impact of Advertising Variability on Building

Customer- Based Personality in a Competitive Environment” in Mexico revealed that advertising

is by far the most important communication tool in marketing, and brand personality is built with

every advertisement. In his work is a critical analysis of the media influence on brand relationship

development and also inter-relationship of consumer and brand personality. He identified that the

media’s effectiveness in relation to brand personality and customer response to brands may be

studied by the marketer to build long run branding strategies. In conclusion, he cited that the

effectiveness of any advertisement can be measured at two different levels: pre-insertion and post-

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insertion of the ad into the media, along with brand awareness programs for the effective impact

of communication on the consumer segment. However, identifying an appropriate market and

starting a meaningful relationship using relevant and entertaining content is generally a much more

compelling tactic for creating loyal customers.

Adom et al. (2002), studying the impact of electronic media on the marketing of timber products

draws the conclusion that “there is a positive correlation between advertising expenditure and

sales”, implying that by intensifying advertising campaigns, companies stand the chance of

increasing their sales.

It has always been said that a good brand would always receive shelf placement. Offei (1997), in

her dissertation titled, The Impact of Advertising on Sales: A Case study of Fanmilk Ghana

Limited postulated that the rate of advertising change commensurate with the percentage change

in sales and that advertising assisted companies in their objectives of making increasing sales and

hence profit. She drew a relationship between advertising and sales and indicated that sales reduced

when advertising was low, a relation supported by (Belch & Belch, 1993). Also, in her work, she

depicted that as advertising increased sales volume increased more than the proportionate increase

in advertising. She further outlined that the absence of advertising may have adverse effect on the

sale of the products, efforts are made as often as possible to keep the product in the minds of the

consumer

Awuah (2007), in assessing the impact of advertising on the distributional usage of key soap in

Accra held the view that advertisement builds brand loyalty and does not perform “miracles”. He

observed that advertisement did not show significant change in consumption pattern of a number

of consumers. He concludes that the impact of advertisement developed for a product favourably

14
changes the behaviours of man. He noted that advertising per se cannot be used to determine the

consumption behaviour or the behaviour of man as to his/her activities. Advertising is just one of

the marketing ingredients used in marketing goods and services and cannot stand on its own.

2.3 Kasapreko at a Glance

Kasapreko Company Limited (KCL) is one of the very first alcoholic and non-alcoholic drink

manufacturers in Ghana. The company was set up in Nungua in Accra, by a visionary leader and

businessman, Mr. Kwabena Adjei in November 1989. The company is now located off the

"Spintex road", one of the principal industrial arteries of Accra, where a state-of-the art automated

factory has been built to meet the increasing demands on the African market. To manage the

standards it has set, the company has a six-member board on which its future lies. KCL is currently

one of the principal alcoholic and non-alcoholic drink producers and marketers in Ghana. It is in

partnership with a foreign distillery, UTO Nederland, whose products it bottles for sale in Ghana

(http://kasapreko.com/ Retrieved 15 Jan 2018).

The vision of KCL is to produce quality drinks for all its customers everywhere. Their mission is

to continue being a multinational company creating lasting value for their stakeholders by

producing diversified alcoholic and non-alcoholic beverages from herbal and other traditional

blends using first class technology and guided by a governance structure that encourages

organizational effectiveness and motivates staff to achieve excellence. To realize the vision and

continue working within their mission, KCL has identified and made it a point to work alongside

some fundamental beliefs which could best be mentioned as their core values. These values dictate

how they work together and deliver value to their stakeholders. These core values, include

teamwork, respect, efficiency, quality in everything and commitment. It is strongly believed by

the company that living these values goes a long way to demonstrate what makes them special.

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It is attested by the company that their major strength lies in their product range. The company has

therefore sought to better its marketing strategies to put their brands ahead of other competitors.

They are customer focused and market-oriented and concerned about the changing trend of the

African taste (http://kasapreko.com/ Retrieved 15 Jan 2018).

In light of the above, the company’s marketing team is constantly in touch with consumers in order

to better meet their needs with their manufactured products subjected to a complete technical-

commercial analysis, KCL has a product range of eleven (11) different brands of alcoholic and

non-alcoholic drinks.

Kasapreko Company’s commitment to customer satisfaction and quality accompanied by the

unique features of its products and the hardworking of its staff have contributed to the company

winning a couple of awards in Ghana. In 1999 they won the Product of the Year of the Chartered

Institute of Marketing Ghana (CIMG) awards, Marketing Man of the Year in 2002 and have

continued to receive impressive ratings on the Ghana Club 100 for the past three years (KCL

Brochure, 2016).

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 CHAPTER THREE

METHODOLOGY

3.1 Research Design

The main purpose of the research is to ascertain the role of advertising in brand building using

Kasapreko as a case study. To achieve this research purpose, the researchers will adopt qualitative

methodological approach, this approach is being chosen because the research team will use

unstructured interview to collect data from key management staff of Kasapreko as well as

wholesalers. Kasapreko was picked due to its leading name in the beverage industry and continues

advertising in the various media landscape. Primary and Secondary data will be used for the study

and the method of Primary data collection will solely be the structured interview.

3.2 Population and Sampling

3.2.1 Population

The study specifically, targeted Management of Kasapreko Company Ltd and Wholesalers of both

alcoholic and non-alcoholic beverages within the Madina Catchment area. The team sort to obtain

the impact of advertising on Kasapreko and why it continues to advertise from its key management

staff that design and seek to the implementation of advertising campaigns. The wholesalers are

being chosen because they consistently deal with both retailers and consumers, and consumers

enumerate to them why they prefer one drink to the other. This has put them in position to answer

questions relating to the factors that influences the choice of drinks purchased by consumers. The

research team therefore want to obtain from consumers how advertising influences their choices.

Madina is chosen to reduce stress as well as cost of transportation by the team to collect data.

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3.2.2 Sample Size and Sampling Technique

The size of the sample determines the statistical precision of the findings. Overall, the marketing

and sales manager will be sampled from management of KCL. The managers are chosen for the

direct role they play in designing the ads to meet their target group and purpose. 15 wholesalers

will be selected for the study. The study will use non-probability sampling techniques specifically

purposive and convenient sampling technique.

Purposive sampling is also known as judgmental, selective, or subjective sampling. This type of

sampling can be very useful in situations when you need to reach a targeted sample quickly, and

where sampling for proportionality is not the main concern. (Saunders et al, 2007).). Purposive

will be used for management of Kasapreko because they are our only target for the kind of

information we need.

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher (Robson, 2002).

Convenience will used for selecting the wholesalers, we’ll interview wholesalers based on their

availability.

3.3 Data Collection Method

Both primary and secondary data will be used for the study. Primary data collection instrument

that will be mainly employed for this study is structured interviews. Structured interviews will be

used because it will help get a vivid understanding of the respondents’ responses. Interview guide

was duly structured in relation to the research objectives to elicit responses from the respondents.

The secondary source of data was obtained from books, journals, reports and the internet as

indicated in the references. Brochure and other relevant documents will also be obtained from

KCL.

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3.3.1 Narration

With regards to the data collection, we encountered issues like time constraint to conduct the

interview and in most some situation the reluctant nature of some of the respondents to accept and

grant us audience. This slowed the process of conducting the interview especially with the

wholesalers and also impact the late delivery of the final research work. The interview session was

hectic but very insightful, we have learnt a lot from the responses of the respondents as most of

them took time to educate us on a number of issues we have little or no knowledge at all on

including the basic impact of advertising and how necessary it is for every organization to engage

in. This advice has help us to put together a very organize recommendation that we hope will

change the situation of most of the smaller companies that are engage in advertising. Another issue

was getting the right person in the management team to interview as it seemed the people with the

information were mostly busy and unavailable for interviews but in the long run we still had the

chance to with the help of acquaintance who knew someone there. Important points from the

management interview were jotted down where as in the case of the wholesalers we recorded the

interview with their consent and assurance that it was just for our project and nothing else.

3.4 Data Analysis

The study uses qualitative method of analysis. Thematic analysis was used to analyze the data

collected through the interview. The thematic analysis was chosen because it pinpoints meaning

patterns within data set that are relevant to the objectives of the study.

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 CHAPTER FOUR

DATA ANALYSIS AND DISCUSSION

4.0. Introduction

This study is purely qualitative studies and the data collection is in two different forms. The first

fold deals with the wholesalers’ views on Kasapreko and the second aspect deals with the

manager’s perspective on the brand strategy of Kasapreko. The Braun and Clarkes’ (2006)

thematic approach was used in analysing the collected data.

4.1.0 Discussion of Responses from wholesalers

All the sample wholesalers deal in alcoholic and non-alcoholic beverages of KCL or only non-

alcoholic beverages of KCL.

4.1.1 Products of Kasapreko

This theme examines the perceived quality of Kasapreko’s products. It was revealed that KCL

product is of high quality and has the trust of consumers. Whenever new products of KCL is out

and they start running advert in the media, demand from consumers for the new product is high.

They also express that the changing of bottles and re-packaging of KCL products always keep the

interest of consumers in the product. To them, consumers readily accept new products from KCL

due to the perceived quality of their existing products. These are showed in the voices below;

“It’s pure and natural. Both their alcoholic and non-alcoholic drinks are pure

and natural” (Respondent 1)

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 “The introduction of the bigger bottle of Kasapreko soft drinks has helped a lot of

customers. This is because the same amount used in buying other small bottles of

drinks can buy you big bottle of Kasapreko” (Respondent 5)

4.1.2 Why people purchase KCL Products

This theme also seeks to identify factors that influences the choice of KCL products. The

respondents stated that, KCL keeps advertising its products, both old and new on both radio and

television and this keeps the products in the memory of consumers making it their preferred choice

of brand.

“Basically, I could say adverts, the package the advert comes in with, most people

are influenced by what they see with their eyes, their words and the characters they

use in their adverts” (Respondent1)

All respondents again attested to the fact that KCL adverts inform their decisions to deal in their

products as wholesalers themselves. Based on their adverts, some said they are able to identify

their products that can sell while others got to know of new products and needed information about

KCL products they sell. Advertisements provide more reinforcements that stimulate habitual

buyers into more frequent selection of brands. It also implies that continuous advertisement of a

preferred brand by consumers may keep them ‘glued’ to the brand and may even go a longer way

to gain their loyalty.

“Most customers’, buyers of Kasapreko are moved by how the products are

advertised and packaged” (Respondents 5)

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 “Kasapreko has kept long in the system, so that’s what all the customers know”

(respondent 3)

4.1.3 Advertising and Brand building

The final theme under the category desires to know the effect of advertising on the brand of KCL.

It was revealed by the respondents that KCL adverts elicit people’s interest in their brands and

promote their brand image. However, they added that it depends on the quality of the advert. The

characters and the words used in the adverts of Kasapreko have been very helpful in the brand

building process.

“Yes, because most of their adverts are on point and this helps them to sell their

brand very well” (Respondents4)

Advertising has helped Kasapreko very well in building their brand

(Respondent5)

4.2.0 Discussion of Responses from KCL Management

This section covers analysis of data collected from management of KCL. It has been grouped under

various themes identified from the responses to the interview questions that are relevant to the

objectives of the research

4.2.1 Purpose of Advertisement

According to management of KCL, building a high corporate image (brand name) is the main of

objective of their ads. Other objective of advertisement is to create awareness and to improve sales

for the company. To them, the only way to make consumers aware of your product and make sales

is to inform them of your product through advertisement. The consistent advertising and delivering

22
of quality products also improves the corporate image and gives consumers the assurance of

perceived satisfaction they will derive from consuming the products of KCL.

4.2.2 Measurement of Advertisement objectives

Management of KCL uses interviews, sales volume, questionnaires and word of mouth to measure

if the purpose of advertising a particular product is achieved. According to them, advertising is a

long-term investment and so, sometimes in the short term, the sales volume does not go up as

expected but as time goes on, the sales pick up as more people get to be aware of the product. They

added that the interviews and questionnaire responses are matched against sales because in the

long run, KCL only benefit from the quantity of sales made. The information is compared to sales

volume because what they get from the field must reflect in the sales for them to be assured that

the ad is going down well with consumers. Consumers and distributers are asked randomly to name

the producers of KCL product that is spotted at their shop or drinking joints through a market

survey to find out how the brand image of KCL is being registered in the minds of consumers and

dealers.

4.2.3 Brand building tools of KCL

The main tools being used by KCL to build its brand are advertising, sponsorship and branding of

drinking spots with the colours and product banners of KCL according to management. They

however added that, the advertising has a wider reach to their target consumers and so is widely

and preferably used than the other tools to build their brand.

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4.2.4 Periods and Approach of Advertising by KCL

According to management, they advertise heavily when launching a new product to create

awareness to their target consumers. The ad rate is reduced as consumers become aware of the

product and patronage begins to pick-up. To stimulate the interest of consumers, the ads are

changed over time with different personalities and media platforms. The ad rate is increased when

a product is re-branded due to a fall in the demand or to reposition the product in the market. This

is done to bring the packaging of the product to pace with current development in similar product

lines or to make it more attractive to consumers. They added that advertisement is intensified

nationwide during occasions like Christmas, public holidays among others but ads at specific

locations are intensified during occasions at those locations in particular like festivals. The modes

of advertising include the print media, audio, audio-visual and currently more on the social media

platforms. The audio-visual is preferred when launching a new product or rebranding existing

product according to management of KCL whiles the audio and the print are preferred to existing

and performing products according to management.

KCL adopts the approach of product advertising using the company name as its corporate image,

impacts on the individual products according to management. To them, they invested in building

their corporate image and associating it to their products makes it easy for the products to sell.

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 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter presents the summary, conclusion and recommendation of the study. It starts with the

summary of the key findings of the study, draws conclusions on the findings of the study and then

makes recommendations that are necessary to improve the branding strategy for the smaller

companies.

5.1 Summary

Over the past years and in this technological age, many studies have been conducted into many

disciplines of marketing and other areas of business. This research set to identify the role that

advertising plays in brand building, using Kasapreko Company Ltd. as a case study. With

advertising and brand building as the focal point of our research, it has been noticed or observed

that aside companies making their products known through advertising, it is also a large platform

on which they build their brands.

From the research, brand-building could be explained as a process and not a one-step event. It was

observed that building brands involve a long-term thorough strategy which begins from the pre-

introduction stage of a product, through launching, to the introduction stage where the product is

finally placed on the shelves. In building brands, companies are expected to determine the

personality that they want their brands to assume, its image and the segment they seek to serve.

Brand building therefore involves the process of carving an image for your products, determining

the personality that you want it to assume in the market and designing the communication mix that

projects the image and personality you want to create for the brand.

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The research reveals that the role of advertising in brand-building processes cannot be overstated.

It further reveals advertising as a powerful tool serving mainly communication purposes. It

provides a wider medium for organizations to choose from and offers a higher reach than almost

all the other marketing communication tools. Advertising mainly helps create awareness of a

brand’s existence, its characteristics and value, and it’s a powerful tool that easily influences

consumers by assisting in the creation of a perception either desirable or undesirable about an

advertised brand.

The research further revealed that any money spent on a brand today is an investment for the future.

In the light of this, it can be said that though companies may be selling their brands to make money

today, they may still sell it as an intangible asset for billions of cedis in the future. The research

further observed that it is worthy for companies to commit financial resources into advertisement

since it poses great influential ability and communicates brand information which assists

companies in building brands. A well-built brand was identified by the research as a brand that

assumes a positive perception in the minds of customers, stands out uniquely amongst competing

ones and becomes the first choice or option of consumers when they are making a purchase

decision of product within the category of such brand.

5.2 Conclusion

The purpose of this research was to provide a comprehensive understanding and investigate how

Advertising has contributed in the brand building of Kasapreko Ltd and how smaller companies

can also build on their branding strategy to increase their market share and maximise profits. The

study concluded that the impact of advertising cannot be underestimated as it has been instrumental

in the marketing and making Kasapreko products a household name. The study also concluded

that advertising serves as a tool for marketing communication and has helped Kasapreko very well

26
in building their brand and has also given a wider coverage to the organization. It has also helped

Kasapreko in creating awareness of their products and brands hence it is worthy for all companies,

especially the upcoming ones to invest hugely in Advertising because it plays a vital role in brand

building.

5.3 Recommendations

Based on our research findings, the following recommendations have been proposed:

 Organisations must commit enough resources - financial, human and other resources- into

advertising in order to reap the lasting benefits it has to offer, including brand awareness

leading to positive perceived brand image which results in brand loyalty and finally

developing into brand equity.

 Organisations must seek ways to effectively integrate advertising with the other marketing

communication tools in the right proportions in order to support the roles each of them

plays.

 Companies are advised to create awareness of their products no matter how unique it is,

for lack of advertising would be like you know what you are doing but no one else does.

5.4 Limitations of the Study

The limitations include:

 Dispersed location of distributors of beverages made it difficult for the research team to

identify in gathering data for the studies.

 Inability to acquire direct and authentic information from most of the distribution outlets

because owners had left them in the care of shop keepers.

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 Frustrations on the part of the researchers due to the continuous postponement of time and

day of interview by some of the respondents. The respondents were reluctant to release

information. This therefore delayed the collection of data, resulting in researchers being

left hard pressed for time.

 About portion of the respondents had a low level of education. This made it difficult for

them to understand the essence of the study translating the questions into local dialect to

enable them answer appropriately.

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Interview Guide for Wholesalers

(Brief Introduction)

1. Do you deal in Kasapreko products?

2. What is you view on Kasapreko products?

3. What do you think influences buyers to choose Kasapreko products over others?

4. Do you think advertising has contributed to their brand building?

5. Would you recommend advertising to other smaller brands?

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Interview Guide to the Management of Kasapreko

(Brief introduction)

1. Your adverts are all over radio and tv, we would like to know why your company is

interested in advertisement.

2. How do you determine whether it has achieved its aim or not?

3. Is brand building part of Kasapreko’s advertising objectives?

4. If yes, how do you determine whether the advert has achieved its objective?

5. If no, what are your advertising objectives?

6. What tools do you use to build your brand?

7. Would you recommend advertising as an effective way of building brands?

8. If yes, Why?

9. When do you advertise your products?

10. Which approach of advertising do you use?

11. Do you have any period that the organization intensifies advertisement?

12. If YES why, and on which media?

32