jimoh jelili k. r&d manager food & agro, sona group, · pdf file• food &...

• 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


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


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”


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,…


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


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


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


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


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


MARKET DRIVERS:RETAILING

• Open market

• Organised market

• Chain Store

• Shopping mall

• Digital Marketing- On line Store, etc


THANK YOU


jimoh jelili k. r&d manager food & agro, sona group, · pdf file• food &...

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