fmcg suggestive plan 2015 ppt

Prepared and presented by: Taj Zadhra-Ogunsola Consultant - Strategic Marketing

Suggestive Strategy

1. Executive Summary

2. Introduction

3. Current Situation

4. FMCG; Breakdown

5. Wemy Industries Limited: Main Brand, Sub-brands & Product Lines

6. Wemy Industries Limited’s Brands

7. Marketing Alignment: Close the Gap

8. FMCG Constrains: Risk Factors

9. Competitors analysis

10. Value Chain: Adopting the process

11. Marketing Focus

12. Strategy

13. Expansion Strategy: B2B Sales Strategy

14. Distribution Strategy

15. Marketing Focus

16. Advertising Strategy

17. KPIs & R.O.I Evaluation

18. Partnership

19. Recommendation

Agenda

Consumer segments

Nigerian FMCG Competitors

FMCG Marketing Approach

Growth Strategy Matrix Key to Business Success Economic Growth and Market CharacteristicsNigeriaB2B MarketSWOT & PEST Analysis Porter’s Five Force analysis

Wemy Industries LimitedSuggestive Strategy

Taj Zadhra-Ogunsola Consultant - Strategic Marketing

OverviewAnalyse Nigeria’s FMCG industry paying particular attention tothe personal care sector, focus on Wemy Industries Limited.Outline suggestive marketing strategies for the company toimprove their marketing; increase growth; close market gaps;and exploit local distribution opportunities for long-termgrowth.

01 - Political StabilityEven though there is a huge potential, there are risks andweaknesses, which have to be taken into consideration tosustain the business.

02 - Skills ShortageThere is clear evidence of a global skills shortage that isparticularly acute in the developing world. Pwc (2014) haswarned that the huge skills shortage in Nigeria may hamper itsmoves to becoming an economic giant.

03 - Power supplyFMCG businesses are financially affected by Nigeria’s seriousshortage of electricity, undeveloped infrastructure, numerousregulatory changes, and the threat of possible coup that coulddeepen the current political instability. Companies operatinglocally are not concerned by these constraints, but they remainsurprisingly cheerful, optimistic and persistent to drive theirbrands nationwide.

Executive Summary Key Takeaways

04- Supply ConstraintsUnderstanding the local business terrain is key in driving growth andexploiting unmet market gaps. Nigerian consumers embrace brands thatare accessible to reach locally and convenient to their lifestyle choices.For example, 87% of the trading in Nigeria happens in informal markets,even with Shoprite, Spar and other supermarket chains entering thecountry. Therefore, adopt culturally sound distribution model applicableto your market.

05- CompetitionThe personal care sector has become extremely competitive in recentyears, with industry leaders protecting their market share from existingcompetitors, improving their product categories for robust challenges,and spending aggressively on traditional and digital activities to closemarket gaps from potential new entries. In this sector, cash is king, globalbrands win and marketing insight feeds their hunger to succeed.

06- Recommendation and ConclusionRecommendations are suggested to tackle the points outlined.Conclusions are drawn from the topics highlighted from an FMCGperspective, with particular focus on the suggestive strategies for WemyIndustries Limited. .

Introduction

The sustainability of FMCG (Fast Moving Consumer Goods) business depends largely on its marketing

strategy, understanding customer needs, and the types of distribution model deployed. In this context,

FMCG companies need to pursue wide combination of tactics to beat off competition, remain relevant,

and most importantly grow market share to deliver profits.

For example, when prices are competitive Wemy Industries Limited could use an extensive distribution

network, design suitable advertising, and implement sales promotion from time to time. Being creative

as a business, is just as important as product knowledge, but the two must have a balance within the

organization to drive growth and deliver profits. Therefore, nurturing the brand is the primary goal of

capturing market share, and lock up as many distributor shelf space, to expose the product to larger

audiences.

Goal: Develop strategies that increase your market share, grow sales and improve overall profit for your FMCG business.

Interact Engage

Minimum market presences in relations to Unilever and P&G

Outline corporate goals. Outline marketing objectives Outline distribution channels

Develop 4 different marketing plans specific to each product

category.

Inject a rich visual media experience to communications and packaging design to attract

new target audience

Adopt distribution model that encourages product purchases to penetration market locally

Adopt limited digital media but consider developing an e-

Commerce site to sell directly to customers.

Reach a wider TA by segmenting products for based

on TA needs/interest.

Objective

Deduce Marcomm spending Increase volume of sales e Build brand and product category

awareness to positively compete

Engage consumers, and introduce CSR public relations strategy about

specific product range.

Current SituationInternal assumption – Wemy Industries Limited

“Ignore CNN, find credible local partners... look at the growth rate, the awesome demography, the sheer size of the market and most of all, the

resilience of the Nigerian people.”

Leonard EbuteHead of Supply Chain, West Africa - Kimberly-Clark, 2015

Multi-Surface Wipes for hard and soft surfaces

After-Shave Wipes: Specially formulated for human skin.

Wipes provides a hygienic solution for men and women.

Prevents common diseases and infections being contracted during barbing and shaving.

Prevents a hygienic solution for sensitive instruments

TheIndustry

Fast MovingConsumer Goods (FMCG) Definition: (FMCG) as “…products that have a quick shelf turnover, at relatively low cost and don’t require a lot of thought, time and financial investment to purchase. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer …. products…”

Manufacturer of hygienic products: - Dr. Brown’s Brand - Dr Brown’s Baby Line- Dr Brown’s Adult Care

- Nightingale Brand - Nightingale Baby Care - Nightingale Feminine

Care

From the consumers' perspective:- Frequent purchase- Low involvement

(little or no effort to choose the item)

- Low price

From the marketers' angle:- High volumes- Low contribution

margins- Extensive distribution

networks- High stock turnover

FMCG are essential for daily uses and consist of 3 main categories: 1). Household Care,2). Personal Care (Wemy)3). Food & Beverage

Wemy Industries Limited, business is focused on the production of multi-surface wipes, and diapers for adult and children. Recently, they introduced After-Shave Wipes to target male consumers.

FMCG: Breakdown

Main Characteristics

of FMCG

Overall FMCG Sector

FMCGBusiness

WemyProduce

Wemy’s Offering

Wemy Industries

Limited

Dr. Brown’s

Personal Care

Dr Brown’s Baby Line

Nightingale

Dr Brown’s Adult Care

Nightingale Baby Care

Nightingale Feminine Care

Baby Diapers

Facial Cleansing Wipes

Nursing Care Pads

Nightingale Baby Oil

Towels Underpads

Product- Lines

Baby Soap

Baby Wipes

Pantyliners

Sanitary Pads

Feminine Wipes

Adult Diapers

Product- Lines

Wemy Industries Limited:Main Brand, Sub-brands & Product Lines

Wemy Industries Limited’s Brands

Source: Godspower Njoku, Wemy Industries Limited, 2015

Marketing AlignmentClose the Gap

Two brands cater for sanitary products but there’s room for new entries to drive

consumption demands for Nigeria’s large population.

Key drivers for success is to develop marketing plans with profit rewarding strategies

favourable for niche market.

Nigeria has strong cross selling and market penetration opportunities by expanding

distribution into neighbouring countries to attract prospective investors.

Source: i)The economist "The sun shines bright"(2011) ii) Cinci consulting "Winning in Africa"(2010) iii) Reuters"FMCG firms eye Africa as next growth vehicle“ (2010)V) UN Population Division (2013)Vi) Euro monitor International, (2014)Vx) Nigeria Bureau of Statistics, (2013)

Competitive analysisA niche into a huge and lucrative market

1The same market Personal care productProvide hygienic solution

2The same market Baby care product Adult care products Feminine sanitary product Personal solution provider


3The same targetPersonal care Comfortable solutions To Improve lives


Basic survivors are the majority group in Africa and tend to live in urban slums

Rising Strivers emerge from the first two segments and are highly aspirational

Working families focus their spending on their children’s needs

Source: Canback 2010, Accenture Analysis

Despite these differences, Accenture (2010) research reveals five broad key consumer groups across Africa. However, Wemy Industries Limited consumers represent three out of the five as potential customer for the company’s brands.

Competitive analysisConsumer segments

Competitors analysisNigerian FMCG Competitors

Company Name Sector Annual Turnover (2014) Established date Main Local Brand

CADBURY NIGERIA Plc (MondelezInternational)

Food and Nutrition ₦30.5billion Since 1950s Bournvita, Cadbury Buttermint, Cadbury Buttermint, & TomTom

DANSA FOODS and DANSA FOOD PROCESSING COMPANY (DANGOTE GROUP)

Food and Nutrition and Home Care,

US$10-50 Million (No official record Est.)

Dangote group Since 1981

Dansa Juice, MoWo Water

GUINNESS NIGERIA Plc Beverages, & Food ₦109.2billion Since 1965 GUINNESS, Harp, Snapp, Orijin, Snirnoff pann

NIGERIAN BREWERIES Plc Beverages, & Food and Nutrition

₦268.6 billion Since 1946 Star, Gulder, Amstel Malta, Heineken & Fayrouz

NESTLE NIGERIA Personal Care, Beverages, & Food and Nutrition

₦24.44billion ($121.59 million)

Since 1959 MAGGI, MILO, Nestlé Cerelac, NESCAFÉ brands

PZ CUSSONS Personal Care, Home Care, Electricals, & Food and Nutrition

₦81billion (£225m) Since 1915 Imperial Leather, and Haier Thermocool

UNILEVER NIGERIA Plc Personal Care, & Food and Nutrition

₦55.5 billion since 1923 Close-Up, Omo, Lipton, Lux, and Vaseline

SC Johnson Limited (Johnson & Johnson)

Home Care, Not published Since 1970’s BAYGON, DUCK& GLADE

Wemy Industry Limited Personal Care, $15 million (Est. annual turnover

founded in 1978 Dr. Brown’s & Nightingale

Procter and Gamble P&G Personal Care and Home Care,

$83.6 Million Since 1992 Pampers, Ariel, Vicks, Fairy, Duracell, Ambi-Pur, Always Gillette, Oral-B

UAC NIGERIA Plc Food and Nutrition ₦17.7billion Since ??? Mr Biggs, and Gala



SINGLE STEP BUYING

PROCESS SHORTER

SALES CYCLE

LARGETARGET MARKET

MAXIMIZE VALUE OF

TRANSACTION

PRODUCT DRIVEN

EMOTIONALBUYING

DECISION BASED ON

STATUS, DESIRE OR PRICE

Adopt Growth Strategy Matrix for ‘increase marketshare’ on sub-brands with strong market presence.On the weaker brands adopt Add product strategyor ‘Product in New Market’ for market penetrationand growth.

Key benefits for this plan:

• New market role in the broader corporate strategy

• Strategic positioning to improve customer base

• Increase share and long term profitable growth

Add products

Add Services/Products in New Markets

Increase Market share

Enter New Markets

Existing products New products

Exis

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ewm

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Competitive analysisGrowth Strategy Matrix

Service/Product Expansion

Mar

ket

Exp

ansi

on

Competitive analysisKey to Business Success

I. Implementation: Key Factor to consideration Address

uniqueness of Wemy Industries Limited’s product

offering and development plan with knowledge of the

cultural, pricing concerns, and consumer needs.

I. Close market gaps tigtening barriers of entry, by

applying competitive business and operational model.

I. Implement effective supply chain and linkage by

optimizing marketing channels that embrace

technologies.

I. Identify and develop formidable value proposition

which address- consumer/market needs to boost

market, customer base and capital position.

Deploy four separate marketing plans to

overcome each sub-brand product

challenges.

Outline strategies for the under served

market to exploit opportunities.

Amalgamate strategies specific to

market needs and consumer spending

power.

Overhaul Baby Care brand identity,

increase marketing budget, and turn this

segment to the ’Cash-Cow’.

Competitive analysisEconomic Growth and Market Characteristics

1

2

3

4

174m population and a market with cheap labour force

(UN population Division, 2014).

Source: www.xcom‐africa.com, 2013http://www.tradingeconomics.com/nigeria/indicators, 2015Cinci consulting "Winning in Africa" (2010)Godspower Njoku, Wemy Industries Limited, 2015

$568.51Bn Nigeria GDP (Aug, 2015) Economic

growth prediction – between 5% and 8% in 2013 and coming years.

₦ 15,405, 692 Billion consumer spending (Aug, 2015)

Consumers: 72% of those are under the age of 30 years. Since 2000,

consumer spending growth of 4% per year, to reach

$1 trillion in 2020 across Africa. Rapidly improving income

levels, infrastructure, and business environments.

₦ 1, 4975,955 Bn disposable Personal Income (Aug,

2015) Nigerians aged between 16 and 65 have $100bn to

spend due to per capita income (World Bank 2008, 2010).

5

6

7

8

1) Average Production Capacity 245,280 cartons of both

Wipes per annum (Wemy Industries Limited Data, 2015)

2)Average Revenue ₦382,636,800 per annum (Wemy

Industries Limited Data, 2015

3) Minimum Profit ₦88,300,888 per annum (Wemy

Industries Limited Data, 2015)

8 “anchor” cities in Nigeria with populations above 1 million

each. Lagos, Onitsha, Kano, Delta, Abuja, Oyo, Kaduna & Enugu.

Onitsha market is the one for informal trade, consisting of 12 specialized markets with 50,000 shops and an FMCG trade

volume of $1.5 billion, serving other West Africa

markets.

Continued discovery of new resources

Regulatory and policies changes

Competitive analysisNigeria

Source: i)The economist "The sun shines bright"(2011) ii) Cinci consulting "Winning in Africa"(2010) iii) Reuters"FMCG firms eye Africa as next growth vehicle“ (2010)V) UN Population Division (2013)Vi) Euro monitor International, (2014)Vx) Nigeria Bureau of Statistics, (2013)

Price sensitive consumer market

Lagos with over 14.5 million

population, has the market

concentration. V

Customer with (US$1.443) disposable income will

grow by 16%. Ii

Inflation has sunk to 8% from 22%

back in 2000

DPG growth

4.9% since 2000

Reduce risk (corruption

index, political & economical

situation)

Significantly lower penetration level with huge growth

potential for products and

brand. IiiAttractiveness of

local demand (income per

capita, population)

Market value is US$20.4 billion

for personal care product.

vi.

Largest population

in Africa 174 million. v

37 million households in Nigeria

. vx

Hotels, restaurants, canteens

Parties and events

Shopping complexes and malls

Offices and high rise buildings

Target Market

Industrial and house-hold cleaning

companies

Residential houses

Barbing saloons

Personal users

Competitive analysisB2B Market

Source: Godspower Njoku, Wemy Industries Limited, 2015

Competitive analysisSWOT & PEST Analysis

Political factors Economic factors Social-cultural factors Technological factors

Wea

knes

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reat

Computerization of Gov. & Private Sector business Telecoms revolution Launch Nigeria SAT 1

Increasing use of Social media networks45 million internet users.

Large capital outlay for start-up'sIlliteracySlow ICT Innovation

Telecom revolution E-commerce E-learning E-governance

IT security (hacking)Loss of marketsDominance of foreigners in the IT industry

*Source: UKTI ‘Doing Business in Nigeria Report

Political stability (since 1999)Emphasis on improving the Nigerian infrastructureGovernment strongly supports a free market economy & private enterpriseRegional political leader in Africa

Increasing ethnic & religious restivenessMilitary coupe Terrorism

Growing international recognition Widening political participation

Ethnic frictions Policy uncertainty

Oil Producing Minerals & Land Endowment Young Population ratio & Large Consumers Relatively stable exchange rateIncome category: Lower middle income Population: 173,615,345 GNI per capita (US$): 2,760

Inadequate data for planning Weak ‘doing business’ indicatorsLimited or inadequate access to small scale loan for SME’s Double digit interest rates on loans

Economic Reform Power, Oil & Gas & agric. ReformsHuge infrastructure development Power –Opportunities exist with Nigeria being the most lucrative telecoms market in Africa, growing at twice the African averageHealthcare, ITC and Financial Services

High costs of doing business (decaying infrastructure) Crime & insecurity Lack of Infrastructure Talent AcquisitionCorruptionInsecurity

Big human capital resources Cultural & Religious diversityLarge Population

Competitiveness Great people with great sense of humour Innovative market culture

High illiteracy rateEthnic ConflictInfrastructure inadequacyPoor and substandard transportation services and systemTaxi centered culture

Cultural & Tourism potentialsEmerging PPP in infrastructure building Privatisation and deregulation

Security threat in the North Lack of social security system

Competitive analysisPorter’s Five Force analysis

Competitive Rivalry with in Market

(Nigeria)

Bargaining Power of Drivers/Partners

Moderate

Bargaining Power of PassengerHigh

Threat of New EntrantsHigh

Threat of Substitute Service

Supplier’s Power

LOW- bargaining power of suppliers of raw materials and intermediate goods is not very high.

Substitute suppliers are available, raw materials are readily available, and most of the raw materials are homogeneous.

There is no monopoly situation in the supplier side because the suppliers are also

competing among themselves

Buyers Power

HIGH- Bargaining power of consumers is also very high. This is because in FMCG industry the switching costs of most of the goods is very low and there is no threat of buying one product over another.

Customers are never reluctant to buy or try new things off the shelf.

Threat of Substitute

Potential Entrant’s Threats

-There are complex and never ending consumer needs and no firm can satisfy all sorts of needs alone.

-There are plenty of substitute goods available in the market that can be re-placed if consumers are not satisfied with one.

-The wide range of choices and needs give a sufficient room for new product development that can replace existing goods.

-This leads to higher consumer’s expectation.

-Strong distribution network is required-Already existing, strong brand names-Potential entrant’s opportunity

Competitive Rivalry

HIGH - Rivalry among competitors is aggressive.

- Competitors push and exploit marketing opportunities to win customers and market share.

-Market leaders are deploying creative ads and intensifying their digital activities to create digital communities.

- Win promo strategy is a key driver on the increase. - Pricing and price war is an understatement.

- Deployment of informal trade distribution methods and competition for shelf space are strong.- Hence the intensity of rivalry is very high.

Barriers to Entry

Market entry of new firms is outside the control of existing FMCG companies.

The resistance is very low and the structure of the industry is so complex that new firms can easily enter and also offer tough competition due to cost effectiveness. Hence potential entry of new firms is highly viable.

Porter’s Five Force analysis

Value Chain

As a business Wemy Industries Limited is involved

in the process of converting inputs into outputs,

and to do this the company must identify ways in

which value could be created /enhanced. Value

creation requires performance of each department

and coordination of activities within a department.

The value chain helps the business to identify and

understand crucial aspects to achieve competitive

strengths and core competencies in the

marketplace.

These activities are outlined below and consist of

either primary or secondary activities the business

undertake in some form.

Primary activities are

1. Inbound Logistics –Relationships with suppliers

and activities required to receive, store, and

disseminate inputs.

2. Operations –Are activities required to transform

inputs into outputs (products).

3. Outbound Logistics - The activities required to

collect, store, and distribute the output.

4. Marketing and Sales – Activities of informing

consumers about Wemy’s products, persuade

customers to purchase them, and to facilitate

that purchase.

5. Service - Activities required to keep Wemy’s

product working effectively for consumers after

it is sold and delivered.

Secondary activities are:

1. Procurement - is the acquisition of inputs, or

resources by Wemy.

2. Human Resource management - consists of all

activities involved in recruiting, hiring, training,

developing, compensating and (if necessary)

dismissing or laying off personnel.

3. Technological Development - pertains to the

equipment, hardware, software, procedures and

technical knowledge brought to bear in the firm's

transformation of inputs into outputs.

4. Infrastructure - serves the company's needs and

ties its various parts together, it consists of

functions or departments such as accounting,

legal, finance, planning, public affairs,

government relations, quality assurance and

general management.

Value ChainAdopting the process

Source: Applied the Value Chain model using Porter’s "Competitive Advantage". 1985Rowe, Mason, Dickel, Mann, Mockler; "Strategic Management: a methodological approach". 4th Edition, 1994. Addison-Wesley. Reading Mass.

Inbound logistics

Operations Service Marketing &

Sales Outbound

Logistic

Procurement Human Resource ManagementInfrastructure Technological Development

Primary Activities

The Value Chain

Support Activities

Value Chain Model

Source: Adapted from Porter, Michael E., "Competitive Advantage". 1985Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York.

Marketing FocusObjectives

Corporate Objectives:

Reduce cost of production,

marketing spend, and logistics cost to

reward consumers by lowering

prices.

Increase overall sales volume in

each product categories by

appealing to a wider market as well

as refreshing product designs and

packaging to be eye catching.

Define, identify, and implement

individual marketing plans specific to

customers’ needs and interest.

Sales Objectives:

Deliver 8% profits over the next

12 months.

Grow by 5 points in market

share across successful product

categories.

Deliver 15 points by December

2015 in major retail outlets and

embrace local community stores.

Marketing Focus :

Reduce marketing waste across

product categories by allocating

spending to deliver Returns on

Investment (ROI).

Position product to compete

aggressively over the next 12 months

to increase market share.

Adopt strategy that encourage,

drive, and motivate the distributors

to stock Wemy’s brands rather than

competitor’s to grow sales.

StrategyThe focus

Expansion Strategy

Promotional Strategy

Distribution Strategy

Intensify the core businesses with a view on expanding through acquiring new customer base.

Aggressive concentration on informal trade distribution and local community stores

Drive product consumption, identify, analyse, and develop holistic marketing communication to support core goals.

MARKET PENETRATION –- Sell more products in the same marketMARKET DEVELOPMENT –- Selling same products to new marketsPRODUCT DEVELOPMENT – -- Selling new products to the same market

GOALS:

MAINTAIN or ESTABLISH NEW RELATIONSHIPSSet pricing specific to Profitability and introduce sales initiatives to encourage distributors to push the product.BABY CARE BRAND- Aggressive drive for MORE distributor space and increase market share.

OWN VALUE BRAND–- Proudly own value brand (Low Cost Brand) to emphasize focus on quality and visual offering to refresh consumer minds as the preferred alternative. PUSH & PULL STRATEGY-. Build awareness, engage with consumers, and improve consumer education using PR.

Deploy value brand

strategy to grow

and attract new

customers

Fast sales boost

Encourage trial

Encourage repeat

purchase

Simulate purchase of larger stocks

Gain distribution and shelf space

Expansion Strategy Multi-functional integration

Use sales promotions to increase sales in the short term, and for the long-term, focus on sustainable business strategies.

B2B Sales Strategy

TRANSACTIONAL CONSULTATIVE ENTERPRISE

Product characteristics Well Understood

Readily substitutable

Standard items

Differentiated

Customizable

Hidden Capabilities

High Strategic and/or cost importance

Limited substitutability

Key buyer concerns and decision criteria

Price

Availability risk

Ease of acquisition

Importance of problem

Solution fit

Price-performance tradeoffs

Platform fit

Values fit

Sustainability

Time horizon Event Purchasing stream Strategic plan

Nature of relationship Cost - based

Buyer-seller

Confrontational

Benefits – based

Client-advisor

Cooperative

Trust – based

Business equals

Insider

Both parties change fundamentally

Prerequisites for success Access to decision maker Access to influencers Access to strategy

Nature of sale Doing the deal Problem solving Agenda setting

Boundaries blur- unclear who is selling and who is buying

Source: Rethinking the Sales Force

Resolve logistics issues, alignproduct to customer wants,and define the selling pointthat creates the mostdemand to drive salesacross all productcategories.

Goal: understand theproduct using the salesforce strategy to increasesales volume with themarket team.

Expansion Strategy Objective of Sales Promotion

Business Drivers- Improve bottom line through increased efficiencies- Driver leadership to improve overall reputation- Commitment to making a difference for consumers

Rapid Growth Adopt appropriate sales tools targeted at final buyers through the distribution channels.

- Define promotional objectives beforehand to reduce clutter.

- Consider competitive pricing with attractive promotional tactics to drive sales.

- Integrate actions into core business processes and regular reporting cycles to adjust strategy according to increase or decrease of sales.

How

Drive consumers’ impulse buying of value brand to increased sales and drive product recognition.

Options

Trade Promotion – Persuade informal trader to

carry the brand

Buy-One-Get-One –Free (BOGOF) using the “Premium” sales tactic but applying this to ‘Value brand’.

Money off/Discounts – Less 25% of normal price

Competition/prize draws –purchase the most products.

Free Gift with every purchase over N10, 000

Sales promotions offera direct incentive tobuy more in the shortterm.

Stimulate quicker andgreater purchase ofparticular products byconsumers or thetraders

Distribution Strategy:Volume is everything and #ConvenienceRules

Deploy robust intensive distribution

strategy to penetrate informal markets,

and local community stores.

Select appropriate partners and ensure

they have sufficient storage capacity to

stock Wemy products.

Balance A/ disadvantages to align them

with Baby Care Brand.

Traditional distribution channels remain important

despite growth in modern retailer across Nigeria.

Outlets located within close proximity to consumers’

homes open markets and local independent small

grocers will continue to dominate the retail

distribution.

This distribution model focuses on driving this gap to

exploit opportunities beneficial to Wemy Industries

Limited. Moreover, distributing products through such

channels also raises the visibility of their brands.

.#ConvenienceRules - …consumers want it quicker and easier from brands that buy us time and save us effort. FMCG Trends 2015

Physical presence Meet buyers

needs for local contact point

Access customers and improved service levels

Enable just-in-time delivery

Meet local content and develop

business relationships

Establish better relationships with suppliers, buyers

and end users

Gain access to local market data

and insights

Encourage diversity and innovation

Greater control of marketing and

distribution

Direct interaction with customers

Improved credibility and

loyalty in market place

Distribution Strategy Benefits gained

Establishing local foot print

and boosting overall sales

volumes is the key to

reward the organisation.

Furthermore, FMCG

retailers generally operate

in a low-margin

environment. As a result,

the existence of a large

market is crucial to the

success of these

companies.

Source: Global edge Afribiz Brookings Africa Growth InitiativeKPMG Sector Report FMCG in Africa (2014)Impact of globalization on food consumption, health and nutrition in Nigeria: FAO, (2014)

Distribution Strategy:Informal wins

Informal trader distribution account for 87% of growth potential and heavy marketing spend should be directed toward this.

Onitsha – consisting of 12 specialized markets with 50,000 shops and an FMCG trade volume of $1.5 billion is the starting point as well as traditional supermarket and online retailers.

Eight Nigerian cities containing 16% percent of the nation’s population will drive 36 percent of growth, as per capita consumption in large cities is much higher in Nigeria as a whole

Local for growthLagos, Kano, Delta, Abuja, Ibadan, Onitsha, Kaduna & Enugu

Leading Online store

Gloo.Ng

Konga

Jumia

Supermart

Major Supermarkets

MassMart (5 stores)

Shoprite 14 stores with 37 coming soon

Park and Shop 2 store with 3 coming soon

Spar Stores 4, stores with 4 coming soon

Goodies Supermarket 4 branches

DePrince Supermarket 3 branches

Ebeano Supermarket with 3 more stores

Game Store with more opening soon

Eko Supreme Nigeria

Limex Global Industries

Smaller domestic companies, tend to deliver strong growth on the back of affordable product offerings and Wemy would benefit by employing this tactic.

Marketing FocusWemy’s audience

Main segment

demographics

psychographics

Benefits sought

Are ‘Local store devotees ’ (Basic survivors) ‘Low price hunters’ (Working families) and ‘Quality convenience lovers’ (Rising Strivers )

Brand reputation, brand quality and competitive pricing

Aged 14 - 60+ Lower incomer earners

High income earnersUpper incomer earners

Based in mostly the 8 populated cities/states Response more to print communications and

some digital ads

Optimistic consumers who focus on price as crucial factor, brand reputation and higher quality products are key to warrant their purchase. They desire a convenience as part of their shopping experience.

Nigerian Customers Psychographics

Beliefs 74% of Nigerian consumers are very optimistic about their future.

Nigerians desire a convenient, well laid out, modern shopping experience, where people don’t sweat under the sun to make purchases

Values70% of Nigerians are more likely to be loyal to a brand.

Financial PowerHigher income consumers are particularly interested in stores with a wide range of products and a comfortable environment, and are willing to pay for these features.

psychographics

Lower income consumers primarily choose stores based on pricing, but item selection and in-store experience are still important.

Lifestyles Price is crucial is to Nigerians, especially when it comes to food. Rice is used as a benchmark for checking prices. Upper income Nigerians also look at red meat and beverages as pricing benchmark.

1. 51% of higher income consumers brand loyalty is based on brand reputation and higher quality products.

2. Lower income consumers, brand loyalty is driven by an unwillingness to try new things

Source: Global edge Afribiz Brookings Africa Growth InitiativeAfrica Consumer Insights (ACIC) 2012

Psychographics 7 Distinct shopper segment exist within Nigeria

Attitudes

Quality brand lovers

Values quality and fashion from best brands Most brand loyal

Social fashionistas

love shopping, especially with their friends.

Low price hunters

Careful with money Ensures they get the lowest price. Shops at informal markets

Quality convenience lovers

Buys quality but not brands. Values convenient, hassle-free shopping

Aspirational brand buyers

The “right” image Status very important

Grudging value shoppers

Do not enjoy shopping Do not identify with clothing.

Local store devotees

trust local stores over large retailers Like to frequent the stores

psychographics

SOURCE: Africa Consumer Insights (ACIC) 2012McKinsey & Company, Consumer and Shopper Insights December 2013

Demographics

demographics

Gender‘Female’ consumers mostly

Age There are three age band for the business based on product categories and market needs.

a. 13- 20 yr. o.b. 20 – 29 yr. o.c. 29 – 50+ yr. o.

Education & Occupation40% of TA will have a university education with over 28% in full-time employment, while 9% are self-employed (Education & Occupation-Sliverstones Solutions, 2014).

Demographic Concentration Lagos, Kano, Delta, Abuja, Ibadan, Onitsha, Kaduna & Enugu

IncomeThe campaign should strategically focus on TA with incomes in these categories:

1) Basic survivors Low income consumers above US$ 1,477 pa

2) Working families High income consumers US$5,000 pa

3) Rising Strivers Upper income consumers US$10,000 pa

EthnicitySouth West consumers are more likely to try new things.Northern consumers are less likely to try new things but are more superficial with regards to fashion.Easterners are amongst the most price sensitive and business minded.

Marital status and Household size Marital status, Household size pays very little attention to TA

Mobile communicationUSSD, features phones and smartphone owners

SOURCE: Africa Consumer Insights (ACIC) 2012

Advertising StrategyIntegrated marketing communication

Main communication objectives

Inform customer about the product categories

Create positive emotions in connection to brands

Generate consumer interest and purchase intentions

Below-the-line

Thorough brand communication

PR, free editorials, and publicity

Digital/Internet/Mobile

Strategic partnership

Media cooperation

Above-the-line

Embrace print advertising with this plan

Place of Point-of-Sales signage posters

Goal: advertising is required to build awareness about the brand.

Informative advertising to build primary demand.

Persuasive advertising build a selective demand for product categories.

Reminder advertising deployed with mature product-lines.

Advertising Campaigns

Advertising Strategy

Main communication

message

Less is more- focus on

simple and clean brand

vision with limited text.

Support a product-focus appraoch ’print

advertising’

Consistent with current strategy

USP: Loving and caring brand

Emotional appeal

Advertising StrategyExpanding markets by usage: PR

Corporate Social Responsibility (CSR)

Companies usually expand their market for the brand in two ways,either to increase the number of customers or by encouraging moreconsumption per intake.

The usage rate of the consumers can be increased in 3 ways:

Consumer more

Induce users to consume more of the product on each occasion.

Appeal to new consumers

Discover new product users, and convince customers to use the product in more varied ways.

Educate

Educate or persuade customers to use the product more frequently.

Taj Zadhra-Ogunsola ® Nigeria 2015 ©

Goal: Build brand reputation and association to drive usage.

Goal: Re-force strong reputation, brand confidence, and Position the brand as a leader.

Goal: Value Proposition Strategy. Uniqueness of products, and social values within the consumer environment.

Advertising StrategyPublic Relations: Corporate Social Responsibility (CSR)

Goal: Associate Nightingale sanitary product with CSR issues and its’ solutions.Build awareness around Dr Brown’s adult diapers targeted at public health groups, NGO’s and national health institutions

PR Strategy - Push & Pull Model

Implementation Press conference

Press releases

E-Mail Marketing

Social Media Marketing

Mobile Marketing

Content Marketing

News interest

Wemy’s CSR Objectives

Demystify menstruation at grassroots levels and make adolescent girls and young women recognize that they can contribute and encourage them to use their voices to talk about the topic.

Wemy’s CSR Brand Positioning

Nightingale sanitary product –line

Dr. Brown – Mature product-line

Target Audience (TA)Nightingale 14 – 21 y.o. strategically targeted at their parents.

Dr Brown 40-61+ y.o but strategically positioned at health care workers and family members patience.

CSR Challenge

65% of women and girls in Nigeria cannot afford sanitary pads. Puberty is a time when many girls drop out of school or are absent from school for significant periods.

CSR relating to mature adults use of pads or women and men with medical issues causing bed wet.

PUSH + PULL + INTERACTION = BRAND GROWTH

Wemy BRAND

(Push)

Paid press releases

Social media

updates

Paid blog post

Email marketing

Limited Digital ad

campaigns Wemy MESSAGE

(Pull)

SEO/

Website

POS Campaigns

Roadshows

CSR programme(empowermen

t & development

PR reviews

PULL – the message

attracts audience attention, pulling people to it

PUSH- targeting the

audience and taking

the message to them.

INTERACTION

PartnershipsDeploying Push & Pull Strategy

Goal: Reposition the company’s brand culture and philosophy for new born and

their mothers. Compete with leading competitors operating in the same market

space to penetrate market share.

.

PartnershipsPlan

Partnership

Establish partnership program aimed at female target groups to simultaneously

drive sales and increase company’s digital presence.

Alliances with global brands

Increase visibility &product experience

Product leadership coupled with market dominance

PR Strategy

Revamp external PR strategy at no additional cost to the business.

Direct focus on Baby Care brand to push a ‘Loving Care’ philosophy about the company.

Build positive awareness about Wemy’s Industries Limited.

Emphasize CSR to demystify menstruation at grassroots level, and educate young women.

Co-partner with WHO and UN to drive CSR objectives.

Traditional promotion campaign

Deploy promotional campaign on Thirdmain Bridge during rush hour AM/PM – TG 25- 45 y.o.

Road Shows at Universities/Shopping Centres –TG 18 -33 y.o.

Participate in event – targeted groupat 27-50 y.o.

Partner with hospitals to demonstrate mature product-line specific to health related matters and give free trials away TG 45-61+ y.o.

Marketing Offers

Implement a Buy one Get one Free (BOGOF) campaign during low sales period for local distributors.

Roll-out discounted coupon to retailers - Shoprite, Spar, Supermart, Konga and Jumia to grow product categories.

Initiate partnership program with AfricaMagic aimed at educating young women as a ‘Product Reminder’.

Digital Drive

Drive product category receptive to digital media.

Develop digital content that appeals to TA and delivers call-to- action (CTA).

Apply ‘Growth Hacking Strategy’ to grow followership and Likes with a single-mindedness for product awareness, and growth.

Strategically encouraging and aligning for digital growth

Find out the what; where; how; and when of consumers to monitor and improve the marketing knowledge. Review achievements against

weaknesses to align the strategy for greater understanding, to strengthen the company’s competitive advantage each quarter.

KPIs & R.O.I EvaluationMonitoring the pulse of the consumers

To monitor the pulse of their buyers (traders).

Long-term commitment:

Relationship development and management:

Understand their needs:

Global experience and local know how:

Supply chains and linkages:

Consumer analytics, market insights and data:

Undertake marketing research to discover findings about Wemy’s consumers and how to satisfy their needs and wants better.

Established, maintain, and enhance and local partnerships

Supplier, distributors, and digital channel local partners

Patience their decision making, their culture, purchasing periods, their desired promotions

globally exposure professionals, Local knowledge, local standards, local laws

Lean, effective and robust

Effective decision making and positioning

Recommendation

Typically a marketer pursues a wide combination of strategies and its best to have one major focus – ‘deliver Sales’.The following are recommended for the business to increase sales and deliver on the outlined marketing strategy;

I. When prices are aggressively competitive, deploy extensive distribution network, design suitable advertising andsales promotion schemes to combat competition. If the company is nurturing a number of brands in the samecategory, then implement various tactics to address this.

II. Separate the Baby Care brand from all other product lines to aggressively compete and exploit a Cash Cowopportunities in the ‘new mothers’ segments.

III. Tweak product categories by adding new features, strengthening product specification or increasing the amountof liquid the sanitary product can absolve.

I. If the economies of scale has taken shape, the marketing team can increase promotional activities.

II. If competition begin to stiffen, the marketing team can adjust the 4 P’s of marketing to fend off the competition.

III. Rationale behind this recommendation is to; Capture as much of the market share as possible Reducing marketing waste Increase product knowledge and improve customer interaction holistically to aggressively drive sales. To lock up more distributer shelf space for wider market reach.

Taj Zadhra-Ogunsola ® Nigeria 2015 ©

Presented by: Taj Zadhra-Ogunsola Consultant - Strategic Marketing Consultant

Thank you