Social Media and Marketing Effectiveness in Selected Bottling Companies in Kampala, Uganda

ABSTRACT The social media platforms such as Facebook, Twitter, and YouTube have become very instrumental in enhancing the marketing capabilities of several bottling companies in Uganda. However, there is no academic documentation of whether these bottling companies such as Century Bottling Company Limited or Crown Bottling Company Limited (Pepsi) assesses marketing effectiveness of social media as their choicest tool in marketing. This study investigated whether using social media as a marketing tool promotes marketing effectiveness in terms of advertising effectiveness, promotional effectiveness and brand awareness for century bottling company limited and crown bottling company limited (Pepsi), Kampala. The following objectives guided the study: i) to determine the effect of Facebook as a social media platform on marketing effectiveness of selected bottling companies in Kampala; ii) to establish the effect of Twitter as a social media platform on marketing effectiveness of selected bottling companies in Kampala; and iii) to determine the effect of YouTube as a social media platform on marketing effectiveness of selected bottling companies in Kampala. This study used cross-sectional design. The target population was 354 employees and the sample size was computed at 188 respondents, however, 161 of the respondents participated in the study. The main research instruments included questionnaires and interview. Data was analyzed using frequency and percentage tables, mean and standard deviations, and linear regression and multiple regression analysis. The results revealed that Facebook platform has a significant effect on marketing effectiveness (R2 =0.217, p=0.000). Furthermore, the results revealed that Twitter platform has a significant effect on marketing effectiveness (R2 =0.630, p=0.000). Similarly, the results indicated that YouTube platform has a significant effect on marketing effectiveness (R2 =0.276, p=0.000). Lastly, the study revealed that social media platforms have a significant effect on marketing effectiveness (R2 =0.502, p=0.000). The study concluded: Facebook platform has a significant effect on marketing effectiveness; Twitter platform has a significant effect on marketing effectiveness; and YouTube platform has a significant effect on marketing effectiveness, The study made the following recommendations: the management of the bottling companies should make use of Facebook Analytics so as to provide more in-depth information about the consumers who like the page and how they interact with the content that the brand provides; they use the FAST strategy which is: focused, adaptive, strategic, and tuned in, if they must succeed on Twitter, and they should as well make sure they make customers feel special by offering exclusive content, special discounts, sneak previews of upcoming projects and competitions that will deepen the relationship between the brand and consumers. The new knowledge added in this study is that the use of social media platforms specifically Facebook, Twitter and YouTube among bottling companies is an effective marketing tool that is cheap and yet its performance is undisputed compared to the main stream media.

 TABLE OF CONTENTS

DECLARATION .......................................................................................................................................... ii

APPROVAL ................................................................................................................................................ iii

DEDICATION............................................................................................................................................. iv

ACKNOWLEDGEMENT ............................................................................................................................ v

LIST OF ACRONYMS ............................................................................................................................... vi

LIST OF TABLES....................................................................................................................................... xi

LIST OF FIGURES .................................................................................................................................... xii

ABSTRACT................................................................................................................................................xiii

CHAPTER ONE...........................................................................................................................................1

INTRODUCTION ........................................................................................................................................1

1.0 Introduction.............................................................................................................................................1

1.1 Background of the Study ........................................................................................................................1

1.1.1 Historical Perspective ..........................................................................................................................1

1.1.2 Theoretical Perspective ........................................................................................................................3

1.1.3 Conceptual Perspective ........................................................................................................................4

1.1.4 Contextual Perspective.........................................................................................................................5

1.2 Problem Statement..................................................................................................................................5

1.3 Purpose of the Study ...............................................................................................................................6

1.4 Objectives of the Study...........................................................................................................................6

1.5 Research Questions.................................................................................................................................6

1.6 Hypotheses..............................................................................................................................................6

1.7 Scope of the Study ..................................................................................................................................7

1.7.1 Geographical Scope .............................................................................................................................7

1.7.2 Theoretical Scope.................................................................................................................................7

1.7.3 Content Scope ......................................................................................................................................7

1.7.4 Time Scope ..........................................................................................................................................7

1.8 Significance of the Study ........................................................................................................................7

1.9 Operational Definition of Key Terms.....................................................................................................8

CHAPTER TWO ........................................................................................................................................10

LITERATURE REVIEW ...........................................................................................................................10

viii

2.0 Introduction...........................................................................................................................................10

2.1 Theoretical Review...............................................................................................................................10

2.1.2 Marketing Mix Theory.......................................................................................................................12

2.2 Conceptual Framework.........................................................................................................................13

2.3 Review of Related Literature ................................................................................................................14

2.3.1 Social Media ......................................................................................................................................14

2.3.1.1 The Effect of Facebook on Marketing Effectiveness......................................................................15

2.3.1.2 The Effect of Twitter on Marketing Effectiveness .........................................................................16

2.3.1.3 The Effect of YouTube on Marketing Effectiveness......................................................................18

2.3.2 Marketing Effectiveness ....................................................................................................................19

2.3.2.1 Advertising Effectiveness...............................................................................................................20

2.3.2.2 Promotional Effectiveness ..............................................................................................................21

2.3.2.3 Brand Awareness............................................................................................................................22

2.4 Related Studies......................................................................................................................................24

2.4 Gap of the Study ...................................................................................................................................26

CHAPTER THREE ....................................................................................................................................27

METHODOLOGY .....................................................................................................................................27

3.0 Introduction...........................................................................................................................................27

3.1 Research Design....................................................................................................................................27

3.2 Study Population...................................................................................................................................27

3.3 Sample Size...........................................................................................................................................28

3.3.1 Quantitative Sample Size ...................................................................................................................28

3.3.2 Qualitative Sample Size .....................................................................................................................28

3.4 Sampling Procedure ..............................................................................................................................29

3.5 Data Sources.........................................................................................................................................29

3.6 Data Collection Methods ......................................................................................................................29

3.7 Data Collection Instruments..................................................................................................................30

3.7.1 Questionnaires....................................................................................................................................30

3.7.2 Interview Guide .................................................................................................................................30

3.8 Validity and Reliability.........................................................................................................................31

3.8.1 Validity ..............................................................................................................................................31

3.8.2 Reliability...........................................................................................................................................31

ix

3.9 Data Gathering Procedure.....................................................................................................................32

3.10 Data Analysis......................................................................................................................................33

3.11 Ethical Considerations........................................................................................................................33

CHAPTER FOUR.......................................................................................................................................35

DATA PRESENTATION, ANALYSIS AND INTERPRETATION ........................................................35

4.0 Introduction...........................................................................................................................................35

4.1 Response Rate.......................................................................................................................................35

4.2 Demographic Characteristics of the Respondents.................................................................................35

4.3 Social Media Platform in Selected Bottling Companies in Kampala, Uganda.....................................37

4.4 Market Effectiveness of Selected Bottling Companies in Kampala, Uganda.......................................44

4.5 The Effect of Facebook as a Social Media Platform on Marketing Effectiveness of Selected Bottling 

Companies in Kampala ...............................................................................................................................47

4.6 The Effect of Twitter as a Social Media Platform on Marketing Effectiveness of Selected Bottling 

Companies in Kampala ...............................................................................................................................48

4.7 The Effect of YouTube As A Social Media Platform on Marketing Effectiveness of Selected Bottling 

Companies in Kampala ...............................................................................................................................49

CHAPTER FIVE ........................................................................................................................................53

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS............................................................53

5.0 Introduction...........................................................................................................................................53

5.1 Discussion of the Findings....................................................................................................................53

5.1.1 The Effect of Facebook as a Social Media Platform on Marketing Effectiveness of Selected Bottling 

Companies in Kampala...............................................................................................................................53

5.1.2 The Effect of Twitter as a Social Media Platform on Marketing Effectiveness of Selected Bottling 

Companies in Kampala ...............................................................................................................................55

5.1.3 The Effect of Twitter as a Social Media Platform on Marketing Effectiveness of Selected Bottling 

Companies in Kampala ...............................................................................................................................56

5.1.4 The Effect of Social Media on Marketing Effectiveness of Selected Bottling Companies in Kampala

....................................................................................................................................................................58

5.2 Conclusions...........................................................................................................................................59

5.3 Contribution to New Knowledge ..........................................................................................................59

5.4 Recommendations.................................................................................................................................60

5.5 Areas for further studies........................................................................................................................60

5.6 Limitations of the Study........................................................................................................................60

References...................................................................................................................................................62

APPENDIX I: QUESTIONNAIRES..........................................................................................................68

APPENDIX II: INTERVIEW GUIDE .......................................................................................................72

APPENDIX III: ORIGINAL OUTPUT OF REGRESSION ANALYSIS .................................................73