Doyin Salami advises businesses to build resistant products’ portfolio to avert headwinds

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For Nigerian businesses to continue to weather the storm of the present challenging environment occasioned by lot of economic and social issues, they must build portfolio of products that are economy resistant, Doyin Salami, CEO, Kainos Edge Consulting, has advised.

Such portfolio of products, combining packaging and pricing, informed by deep market research will appeal to diverse consumers with income disparity, whether the economy is growing or shrinking Salami says.

The economist, who spoke with marketers and communication officers of organisations at a forum on ‘Business growth in a volatile Economy: Facts versus Myths’ organised by Advertising Association of Nigeria (ADVAN) recently in Lagos, cautioned businesses against adopting ‘one size fits all’ for the Nigerian market.

Presently, Nigeria is a peculiar market with huge disparity of income, declining share of consumption, poor performing sectors and poor infrastructure, which have forced the consumer to behave in a particular way.

For instance, Salami said out of 46 sectors in the Nigerian economy, an economy that could be said to be a diversified, only 12 percent of them were growing faster by population growth while others are performing below population growth. “These are the trends you really need to understand,” he told the chief marketing officers (CMOs).

He also told them that Nigeria’s economy, and largely emerging markets invite businesses to ask ‘what if’ in their strategies, saying even when things appear unlikely, the scenario planning should make CEOs and CMOs to ask the question ‘what if’ in their business planning.

According to Salami, in 2014, Nigeria’s economy was growing at about 7 percent, and if businesses had asked what if affordability becomes a problem sooner, they would have been better positioned as of today. By 2016, he said affordability actually became a problem. “Those that asked … Read More...

Dear Nigerian businesses: Who is your market?

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Back in 2015 when I still worked in Marketing on the agency side, I was part of a meeting involving a brand manager from a prominent brewery company. Said company was in the process of launching a new alcoholic beverage that was apparently going to blow the competition out of the water and smash sales records. The meeting was one of those ones where everyone was trying to sound intelligent in front of the client, so you would hear lots of something…something…“Organic Talkability…” something…something… “Estimated Reach…” something…something…“Target Audience Profile…” something…something…“TOMA.”

I must have sat through hundreds of such meetings at that point and in my typical style, I wanted to cut through the buzzwords and get to the point. So I asked a pointed question, “Who are we selling this drink to?” I wanted a clear understanding of who this target audience was, so that we could get down to figuring out how to achieve maximum market impact with our new product. The answer from the brand manager is why I am writing this article today.

Bear in mind that during my time in the UK, I had seen this very drink marketed as the drink of tough, working class bricklayers, satellite TV installers and window washers. In Nigeria however, it was to be presented as a “premium” drink – a sort ofcross between an award-winning San Francisco craft beer and the finest French Sauvignon Blanc, lovingly brewed to the sound of soft Alté music on a starlit Lagos beach by a shirtless Richard Mofe Damijo.

“Pretentious” does not quite describe it.

Targeting nonexistent customers: A Nigerian obsession

According to the brand manager, this drink – known around the world as a generic blue collar working person’s drink – was targeted … Read More...