Category Archives: Cover Story

Leveraging distribution strategy for market Leadership

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The Nigerian consumer market is growing on all fronts and this is a pointer that it cannot continue to be business as usual. Brand handlers who understand this are thinking outside the box to create strategies for a deepened consumer affinity that will guarantee market share, profitability and brand loyalty. In the past, some brands had dwelt on the old proverb of building better mousetraps and allowing the world to beat a path to their door. This was true then. But today’s mousetrap requires intensified communication. In any competing market, the brand’s handlers have to package and promote the mousetrap and the world will definitely come en mass if other variables are in tandem.
The objective of every marketer in the fast growing market like Nigeria is to allow the world to continuously beat a path to its door. For this to happen, it requires certain factors which include the completion of production process of allowing the goods to reach the final consumer. This is a marketing strategy employed by brands like Chivita 100% in its marketing mix to create sales and achieve consumer satisfaction. Analysts agree that the perpetual unavailability of any product in some regions cannot effectively enhance sales as would have been expected.
The handlers of Chivita 100% have leveraged on an efficient distribution system which comprises of retailers, wholesalers, multilevel marketers and sales representatives to bring the product nearer to the people with the underlying objective of creating more market share. This effective distribution strategy has ensured that millions of people across the country readily have access to it. A quick check at various branch offices in Ibadan, Abeokuta, Minna, Jos, Kano, Kaduna, Abuja, Asaba, Aba, Owerri, Yola, Maiduguri, Gombe, Port Harcourt , Uyo, Onitsha, Ibadan, Benin, and Lagos reveal the availability of the product. Chi Limited has an efficient way of transporting their products through major distributors across towns and cities in the 36 states of Nigeria. The products are conveyed via trucks to these distributors for onward delivery to retailers
For Atinuke Jegede, who operates Choice Stores in Ibadan, ‘’Chivita 100% is always readily available at shops and its 100% pure juice content has really endeared to its consumers who are increasingly becoming conscious of realness and quality”
The brand has been able to achieve market- appealing product availability with economical price and exciting marketing promotion strategy especially in Nigeria’s competitive juice market which has created a positive effect on the return on investment. To achieve this, according to analysts requires consumers insight. An analyst said that “Brand loyalty cannot happen without a thorough understanding of the consumer and a deliberate decision to satisfy and exceed the customer’s expectations via both core and surprise values” 
Unlike the captain of the sunk Titanic ship that looked at the tip of the iceberg, the handlers of Chivita 100% have deviated from focusing on the “pieces of information about the customers but probed “deeper into the world of the consumer to understand their motivations, needs, aspirations, belief systems and other deeper values they hold dear and which hold the key to the
The brand handlers of Chivita have also “successfully positioned Chivita 100% as a food product with local roots through its “Be Nigerian, Buy Nigerian” campaign. Because the fruit juice market is a peculiar market that is driven more by volume sales, availability at every point of purchase is critical to market leadership. The distribution network, built over 30 years, is able to match and even surpass that of competition in certain locations”.
 

Nigerian FMCG Brands and Competition

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Fruits juice production is a viable project as raw materials are readily available in Nigeria. It grew well in 2016 with 3% off-trade volume growth, although the growth was slower than what was recorded over the review period, when the off-trade CAGR was 8%, due to the negative impact of the poor economy in 2016.
The Juice industry has however thrived in the Nigerian market through innovations from some brands such as Chi’s limited, Dansa Food Limited, C-Way Food, Dangote Group of Companies, Danico Foods Limited, Frutta Juice & Service Nigeria Limited, and Fumman Agricultural Industries Limited. Other novel products driving interest include Wilson’s Lemonade and a wide variety of juice drinks that are generally cheaper than other juice types.
With the above varieties and competition in the market place, brands in this sector are taking several measures to stay relevant to its consumers and also gain more market share. However this has consistently been challenged by Chi limited who is one of the foremost juice brands in Nigeria. Declared as the dominant brand in the fruit juice sector in a report released by Euro monitor international, CHI limited has remained the leading brand in fruit juice market in Nigeria with an off-trade volume share of 33% and an off-trade value share of 35% in 2016.
It has also become an overriding competitor in the Milk & Yoghurt Drink and Packaged snack foods sector of the Nigerian Economy. According to an audit report released by AC Nielsen Retail Audit Data for Q1 2016, it stated that Chi Limited’s Hollandia Evaporated Milk has taken the lead ahead of Peak Milk in the evaporated milk segment with an increased market share point of 7.4 while “Peak Regular” has dropped by 7.9.
The report indicated that while Hollandia has been consistently gaining market, Peak has been losing ground.
The company has a long presence in Nigeria through which it has gained strong knowledge of the marketing terrain. It has also succeeded through its strong distribution network and merchandising activities, which has created availability and visibility for its wide range of brand variants, supported by advertising.
CHI Limited’s manufacturing facility deploys an advanced processing and packaging technology and also dedicates resources to research and development to ensure that CHI products provide the essential vitamins and nutrients that the consumer requires for healthy living. Its brand Capri-Sonne is said to be the largest selling children fruit juice drink in Nigeria, while Happy Hour is rated as the largest growing brand in West Africa.
It has established footprints in urban and rural Nigeria with large number of depot operations across the nation.

GTBank Releases 2017 Half Year Audited Results …….. Reports Profit before Tax of ₦101.1Billion

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Guaranty Trust Bank plc has released its audited financial results for the half year ended June 30, 2017 to the Nigerian and London Stock Exchanges.
A review of the half year performance, shows positive growth across all key financial metrics and improved strategic positioning of the brand. Gross earnings for the period grew by 2% to ₦214.1billion from ₦209.9billion reported in the June 2016; driven primarily by growth in investment securities income as well as income from risk assets. Profit before tax stood at ₦101.1billion, representing a growth of 18% over ₦85.69billion recorded in the corresponding period of June 2016

Extra Ordinary Draws: Diamond Bank Creates 13 Millionaires in 2 Weeks

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Diamond Bank Plc, Nigeria’s leading retail bank, has created additional 13 millionaires in its daily extraordinary draws across the six geopolitical zones of Nigeria’s economy.
With these newly created millionaires, the Bank has fulfilled the promise made by the management to make one customer a millionaire every working day in the month of August.

CHI EXOTIC NECTAR REITERATES SUPERIOR TASTE IN NEW CAMPAIGN

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Chi Exotic Nectar, one of Nigeria’s most admired fruit nectar drink has launched a new communication campaign to reiterate its commitment to indulge all its consumers with the wonderful taste that they just love. Tagged I Love the Taste, the campaign delivers the brand’s promise of superior excellent taste through sublime and persuasive imageries that resonate with consumer aspirations.