THE EFFECT OF PUBLIC RELATION ON CREATING BRAND EQUITY: IN THE CASE OF HARAR BREWERY S.C. IN ADDIS ABABA

Abstract

This research aimed to examine the effect of public relations on creating brand equity in the case of Harar Brewery S.C. in Addis Ababa City. The study applied the mixed-method approach. A total of 254 customer’s respondents were selected from different hotels, bars, restaurants and Wereda/Kebele recreational places selected based on the convenience of the data collector which are found in Addis Ababa city. The individual respondents were selected using the accident sampling. A total of five interview respondents for were selected; marketing manager, PR department director, brand development department team leader and marketing supervisor using availability sampling. Questionnaire and interview used to collect necessary data from the respondents. The data obtained were analyzed using statistical analysis tools such as frequency, percentage, mean, standard deviation correlation and regression. The statistical analysis tool was SPSS version 21 statistical package. The study identified that the general brand awareness level of Harar beer were found to be in a better stage however, brand associations, perceived quality and the overall level of brand loyalty of Harar beer were found to be not satisfactory. The dependent variable brand equity and the independent variable factors (brand awareness, brand associations, perceived quality and brand loyalty) are positively correlated. The results of regression analysis indicated that the dependent variable (brand equity) is 24.2% explained by the independent variables. Based on the findings of the study, it is recommended that the company needs to reorganize and establish its public relations department in a way enables to be highly competing in the brewery industry.