My Experience: Driving Business Growth in Nigeria - Part II
David Okeme
CEO/Board Chairman/Advisor/C-Level Business Leader/Non-Executive Director/Award Winner; Marketing/Commercial Strategy, Business Transformation
This is a continuation of my earlier publication, sharing perspectives on driving business growth in Nigeria, especially for consumer companies.
#3: Understand and serve the consumer, community & country
Nigeria as a nation is blessed with a well-publicised diversity that has opened up many clusters of opportunities. To harness these opportunities, you need to think and act local!
Using the Gross Domestic Product (GDP) per capita, you may group addressable market by three “economic/ geographic clusters” as shown in the table below:
In the table below, You will see a sharp correlation between GDP and Per capita consumption in one of the foundation product categories.
The insight here is that:
a)???Do not look at Nigeria with one lens; organise for “many Nigeria’s”.
b)???Be driven by Sharp Geographic Choices and setting the Jobs to be done.
As the Consumers are LOCAL, so are their nuances. They are sensitive to how your brand chooses to engage or communicate.
Note:
i.??Nigerians are driven by an eclectic mix of passion, creativity, energy, and optimism. Success in this regard means drawing from Nigeria roots, riding on the passion points - music, movies, fashion, football or any other.
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ii.???The Nigerian consumer is very advanced or sophisticated, and is not swayed by international models, props or icons. Brands must project authenticity by executing what reflects undisputed Nigerian insights, talents and props.
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?#4. Think & Act Inclusive (Responsible Marketing)
To reach scale in Nigeria, you must use price, packaging and portfolio offerings to ensure that value is served across the income levels – from top end to Bottom of the Pyramid (BOP). The income bands below will show the belly of the market is in LSM 3 – 8:
BOP???????????????????>>>>>>>????????????????????Top End
Note:
a)???Low prices, small sizes and simple-to-use products will pay off big time in delivering in-home penetration and sampling, Critical to establish the brand and create the growth spiral.
b)?????Operating at the Price Points; N20, N50 and N100 are sales boosters. Operationally,?Understanding the units of currency/velocity of currency unit, and the income dynamics at the time will be critical to win in the market place.
Affordability is the key issue in WINNING at scale, especially in the BOP. When you deliver price-per-gram parity pricing, in small packs, at the price points earlier advised, the growth odyssey starts.
Across all the product categories, the sachet pack is doing the heavy lifting in delivering vitality to Nigerians.
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To be continued… #5 and #6 will focus on putting purpose to action and and importance of product and claims.