Topic

Impact of Cause Related Marketing

(CRM) on sales: A case of Nestle Kuwait
Importance
The concept of CRM is gaining a lot of importance now a days

Nestle is the leading provider of food products around the world as well as in Kuwait

To survive in competition only good quality products and advertisement is not enough

CRM

It is when an organization promises to spend a certain part of profits of each unit sold for a good
cause (Brown and Dakin, 2009). In this era of competition, apart from good quality products the
concern toward Humanity is a source of competitive edge and enhanced sales (Adkins 2006). ,
finding this in case of Nestle will be beneficial for the company

Importance:

CRM is found to have positive impact on retaining consumers as well as maintaining unique
edge (Mason, 2008). In west it is now recognized as most important and modern strategy of
marketing It increase sales, brand image, mass purchase(Taylor 2007). This research is carried
out as it will be able to evaluate the impact of CRM activities on sales. This will give an
opportunity to improve its situation and no such research is carried out in context of Kuwait

Research Questions

Does CRM create positive brand image?

Does linking the marketing strategies with a specific cause result in better sales?

Research Strategy

The research was carried out by cross sectional survey

 Questionnaire was used

Data was collected from 629 consumers of nestle Kuwait

Convenience sampling was used

Data was analyzed in form of percentage and frequencies

SPSS was used to analyze data

Results

What is your gender?

Male

Female
The results show that 57% of participants are male and 43% mare female

What is your income level?

Less than 300 KD

300-500KD

500-700KD

More than700KD

28% of participants had less than 300KD income each month, participants having income level
of 300 to 500KD were found to be 38%, participants having income from 500 to 700KD
amounted to 17% and those earning above 700 KD were termed to be 17%.

What is your educational qualification?

Lower than diploma

diploma holder
 Associate degree

Bachelor degree holder

Masters or superior degree holder

qualification of participants of research in form of pie chart. 20% of participants have less
educational qualification than diploma. 35% of the participants were diploma holder, 21% of
the participants were associates and just 8% of the participants carried bachelors degree while
16% were masters degree holder or having more than that qualification.

Do you have a positive attitude toward CRM Nestle?

Strongly agree

Agree

Neutral

Disagree
 Strongly Disagree

35.77% respondents strongly agreed that they have positive attitude toward Nestle due to CRM,
28.29% said that, they agree, 6.20 remained neutral. 14.46% of participants disagreed to the
statement and 15.26% strongly disagreed.

I buy Nestle because of CRM

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree
 35.77% respondents strongly agreed that they buy Nestle due to CRM, 28.29% said that, they
agree, 6.20 remained neutral. 14.46% of participants disagreed to the statement and 15.26%
strongly disagreed

How CRM cause positive impact on sales?

It was an open ended question and customers told that CRM causes the company to have a
positive image in their mind that purchasing its goods will contribute to betterment of society and
they prefer to buy it over other brands because of its positive contribution

Conclusion:

On the basis of the above results, it can be concluded that CRM helps to create positive image of
Nestle in mind of consumers

Due to this image they prefer to buy it over other brands

This proves that CRM induces consumers to buy more of Nestle products

That helps in increasing sales

Recommendations:

As case related marketing is found to increase the brand loyalty and sales

Nestle should focus on linking brand image with the CRM campaigns

Better incorporate CRM in promotional campaigns

Consumer attitude, behavior and emotional side should also be considered in designing CRM
campaigns in context of Muslim nation like Kuwait