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• Jimoh Jelili K.
• R&D Manager
• Food & Agro, Sona Group,
• Nigeria
The Nigeria’s CoNsumers, ProduCT Innovation & Changing Market
Trends.
JiMOH J. kolawole
www.nigeriamanufacturingexpo.com
The consumer
• The consumers are the determinants of
manufacturers success, and of course the real market!
• The manufacturer deals with three essential factors to succeed:
• the product,
• the consumers-
• the market- Competitors
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The Nigerian Consumers
• Manufacturer: The consumer, The product, The Market
• The Nigeria’s fast-moving consumer goods (FMCG) also called the consumer packaged goods (CPG) is valued at 400 USD yearly.
• Food & Beverage
• Personal care products
• Home care products
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Made-in Nigeria vs Imported Products The Import Syndrome
The Consumers’ Preference
The average Nigerian consumers want to be part of the global consumers. The consumers’ choice. Selective Sensitive to price, and product quality change, labelling. Sophisticated Specific to brands desire Superlative customer experience “ the wow factor”
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Consumer Packaged Products • Same brand, Same Product: Consumer Choice
• Buying behaviors of Nigeria toward same product produced in different country
• Different Brands, Same Category Products
• Nasco, Kellogg, Infinity,…
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Made in Holland Produced in Nigeria
PRODUCT INNOVATION Why innovation should drive your products?
Guide against fail products
Low sell volume
Products Categorization:
• Completely new to the market (CNP),
• Products new to the company (PNC)”, “Value added products (VA)” & “line extensions (LE)”
• “Me too Product”
How Shea Radiance breakthrough the
$121 Billion Skin Care Industry.
Product Differentiation: Consumer Real Market Scenario: Carbonated Soft Drink Market
From bottle to PET: a total product differentiation
1st market entrance: Coca Cola 29cl Glass Bottle, 1953
2nd market entrance: 7up/Pepsi 35cl Glass Bottle,1960
3rd Generation Entrance: Tandi, Afri, Limca, etc
4th Generation, PET Age: 50cl Lacessera 2001, the success story. Early Entrance Reaction.
Many “Me Too” products
The “Big” brand came with 65cl PET bottle just Oct 2015
The early entrance reacted by increase PET from 50cl to 60cl
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Product Segments: Market Shares
SOURCE: Nielsen (2014),Euromonitor (2015), KPMG (2015), Jimoh (2016)
PACKAGING TYPE
GLASS BOTTLE 56%
PET BOTTLE 40%
ALUMINUM CAN 4%
PACKAGING TYPE
PAPER PACK 86%
PET BOTTLE 11%
POUCH 3%
PRODUCT SEGMENTS: MARKET SHARE
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PACKAGING TYPE
TIN CANS 82%
LAMINATED MULTILAYER PAPER 18%
MULTILAYER LAMINATED SACHET 3%
PACKAGING TYPE
TIN CANS 27%
LAMINATED SACHET 73%
SOURCE: Nielsen (2014),Euromonitor (2015), KPMG (2015), Jimoh (2016)
PRODUCT SEGMENTS: MILK DRINKS
www.nigeriamanufacturingexpo.com Euromonitor, (2014), CNBC Africa, (2014), Agusto & Co, (2013),
PRODUCT SEGMENTS: CEREALS
• Pasta and Noodles market value at 126million
• 1% of Nigeria’s annual GDP
www.nigeriamanufacturingexpo.com Euromonitor, (2014), CNBC Africa, (2014), Agusto & Co, (2013)
PRODUCT SEGMENTS: SNACKS/PASTRIES
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Market Trends: Ever Changing
A market for every consumer Milo, 1961 launched & Bournvita, 1960 Initially importation far back 1920 in the country Product Feature: Elite, upper class Tin Packaged (No single use)
SACHET. Introduction of sachet in small single use by Suco change the market orientation
Cheaper Affordable Convenient
Lesson for new market entrance and SMEs
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Lessons: Carbonated Drink Market Consumers’ Taste, Appeal & Preference:w
The Price Strategy:
Product and Market Innovation & Re-innovation:
Marketing and Advertisement:
Market Segmentation:
180 Million Nigeria- 48% Urban Area, 52% Rural Area
Market Niche
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MARKET DRIVERS:RETAILING
• Open market
• Organised market
• Chain Store
• Shopping mall
• Digital Marketing- On line Store, etc
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THANK YOU
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