Where is Pepsi?
When we leave our competitors with no choice but to dominate, they will do just that and it's the consumers that may end up suffering.
By the close of 2018, consumers started to notice one of their preferred soft beverage or shall I say 'mineral' was being substituted with a sugar free alternative, as opposed to their normal full sugar that they have been used to. Initially, I thought it was Coca Cola introducing a new line of their products into the market, however, after some time, myself and many others realized that there are no other alternatives. As long as we want to drink premium Cola we are being forced to drink Coke Zero which many consumers did not ask for and neither like the taste.
It appears for the premium cola tasting consumers, there is no other option, but wait there is...we have Pepsi.............tumbleweed................I can hear the owls hooting and the crickets jumping!
For the past 8 years I have wondered and asked why Pepsi in Ghana doesn't do more to present itself as a competing cola option to consumers as it does in every other part of the world. In fact, let us not look too far - our Nigerian cousin's, Seven Up bottling company have successfully kept Coca Cola on their toes by constantly presenting themselves as a threat to Coca Cola's share of the market.
In Nigeria, we see Pepsi and 7UP's presence in restaurants, chop bars, hotels, kiosks. Just as important, we see their brand presence on billboards, sponsorship in sports and music, on our tv, social media platforms and embroiled in competitions involving lifestyle activities. Pepsi's brand presence and penetration in Nigeria IS phenomenal and likens that of what we see in the West. Meanwhile in Ghana....tumbleweed, crickets still chirping - SBC Beverages, the distributor and brand owner of Pepsi, have undoubtedly left Coca Cola to operate as a monopoly. I, for one, am confident that in the cola sector Coca Cola does not feel it has any competition.
The obvious disadvantage to is that Coca Cola control's price, quality and product varietal to it's cola segment consumers, and to a larger extent we have no choice but to dance to their tune. My personal observation is that Coca Cola have increased barrier to entry by reducing the cost of their glass bottle to GHC1 (ceteris paribus)- how many cola products can compete at this price? PEPSI - considering their glass bottle is also being advertised as GHC1.
Another observation in the dominance of Coca Cola within the Ghanaian market is how they can easily get away with showing us adverts with black people who do not look like your average Ghanaian and the brand communication seems very English with a tad of Ghana i.e. 'Nothing beats Bronya season. How would you be celebrating Christmas this year?'
The below advert references an environment that one would more likely find in the UK or US but certainly not Ghana with a mission of buying waakye for the person next in-line.
Coca Cola clearly doesn't have to work so hard - they have a strong brand which is globally respected, speaks a global language and has stood the test of time.
What is left for the consumers to do - complain! And they have...there are numerous comments on Coca Cola Ghana's Facebook page however, they have been ignored. Ghanaian consumers are not known to outcry and lead a demonstration when they receive a consumable produce they do not like and alot of companies know this, hence their confidence in pushing alot of mediocre onto our markets.
Needless to say, I personally do not have any issue with Coca Cola, I am just highlighting what happens in a market when a company does not feel that it is has any competition, operates as a monopoly and as such the consumers are the ones who are ultimately affected.
Coca Cola have been notoriously slammed for the amount of sugar they have in their products therefore, their move to reduce sugar content must be applauded. In saying this, as they have been improving their flavor for their Western global consumers, consideration must be and should be taken for those on the continent. It goes without saying that we have a different palate which should be taken into consideration.
In addition, if Coca Cola had run an aggressive PR campaign prior to product roll out on the reason why they are flooding our markets with Coke Zero based on health care, looking out for their consumer, because the care messages et al, it would have been easier for consumers to accept, but we received product awareness billboards, then mass product distribution. When Coke No Sugar was being rolled out in the UK, they contracted, young, pop sensation Rita Ora as its brand ambassador.
Coca Cola's recent move comes across as if, they do not care whether their consumers wanted a sugar free product. I must add at this point - Coke Zero is a better alternative for its consumers, I am not writing about the suitability of the product.
I personally believe that Ghana is being treated as a 'dumping' market - Coca Cola globally have been improving their formula for their no sugar product which they believe they have successfully achieved with their new product Coca Cola Zero Sugar. As the latter started rolling out globally since 2017, Coca Cola is no longer selling Coke Zero in it's Western markets :-) and what better way to do move unwanted stock?
I often say there are many opportunities in Ghana, but the problem is they are not accessible. We cannot access the opportunities to do something with them and change the landscape. This can be frustrating as a brand marketer and enthusiast as we can often identify what a brand is not doing well or enough of and all we want to do is help for the love of our work.
To pre-empt those who maybe wondering 'have you tried to speaking to Pepsi?' the answer is yes, for the past 5 years or so, but I sense management have no interest in either doing anything with the brand and/or selling on the business to somebody else who can do it justice.
At this point I am speaking directly of Coca Cola's direct competitor in Cola, nevertheless, the current status quo presents other soft beverage producers to step up their game and move consumers to consume their own products - which would eventually force Coca Cola, to re-consider its marketing strategy and product selection.
Brands need to remember that in this present age your target audience are vulnerable and open to new possibilities. I would typically say they are not brand loyal, but with Coca Cola many are, but recent trends may see this changing. Give them experiences, give them reasons, speak their language, be where they are, be consistent and let's have a different conversation a year from now.
I'm signing out!
Account Manager & Executive Assistant to the MD at MullenLowe Accra / Africa Liaison at International Advertising Association
6 年Great Article. Really insightful. The other brands in this sector really need to sit up and do more