ADVAN conference: Brands urged to engage more during recession

Brands in Nigeria have been advised to innovatively expand and sustain their platforms for consumer engagement even during periods of difficult economic climate as it is presently in Nigeria.

The advice was handed down by Nigeria’s frontline brand research and consumerism expert, Lampe Omoyele at the maiden edition of Advertisers’ Association of Nigeria (ADVAN) Marketers Conference.

Lampe who is  also the Managing Director of The Nielsen West Africa, a brands and marketing research company,  strongly urged  brands  not to succumb to the temptation of cutting down on their marketing budgets despite internal and external pressures because they will ultimately make more gains.

Presenting a paper on ‘Consumer Confidence Trends  and Engagement’, Lampe noted that since the third quarter of 2015, consumer confidence in the economy has dropped significantly, and it has dropped even further in the first quarter of 2016 due to nagging issues like devaluation, foreign exchange crisis, high inflation, budget delay  and many others. He also noted that his company’s research revealed that there was a general decline in job prospects and a reduced willingness to spend by most consumers.

Because of these challenges, he explains further, most households now prioritise their expenditures and are consistently cutting down on what they spend on.

Lampe also noted that, as expected, the sector that has had the worst hit is the FMCG, which is usually a major indicator for consumer confidence in any country.  Most of the companies in the FMCG, he stressed, have reported losses. On the other hand, Alcoholic beverage brands, Telco brands and non-alcoholic beverage brands have all recorded some growth despite the drop in consumer confidence.

According to Omoyele, the growth in the alcoholic sector resulted from the natural tendency for alcoholic consumption during “down or low moments”.  Telco companies, from his research, recorded growth because of the general attitude of Nigerian to talk and connect with family and friends regardless of the economic situation.

However, from his study, the growth in the soft drink segment was primarily driven by Coca-Cola’s ‘share a Coke’ campaign which was a highly successful and inspiring marketing drive. Likewise, growth in the alcoholic segment has been largely driven by Nigerian Breweries. Lampe explained further that the key factor responsible for the growth of  NB Plc was their acquisition of Consolidated Breweries which had a host of value brands. “So the growth was driven by the value brands,” he said.

The current reverses in the economy according to the research and marketing expert have been triggered by inflation and other macro-economic issues like fall in oil prices, delay in the passage of budget, static wages, loss of jobs etc.

Also presenting a second lead paper on ‘key digital trends and opportunities for Advertisers’,  Juliet Chiazor, Country Manager of  Google Nigeria stressed that It is time Brands started considering using digital platforms and tools for marketing if they don’t want to go into extinction. Reinforcing this belief, she stated that whether brand owners like it or  not, digital communication  has come to stay so brands must learn how to utilize it properly. As part of her organisation’s contribution to this vital need for awareness, she announced that Google would be offering free digital training to five people from each member organisation of ADVAN.

There were two panels of discussants anchored by Chidi Okoro, MD of UAC Foods Plc; and Ugo Geri-Roberts, MD of Milward Brown Nigeria, to dissect various issues thrown up by the two main speakers. The panellist included, Joan Ihekwaba,  GM- Marketing, UAC Foods Nigeria;  Kachi Onubogu, Commercial Director, Promasidor Ltd; Ken Onyeali Ikpe, MD/CEO of Mediacom Nigeria; Fatai Odesile,  Managing Director of Grand Oak Ltd,  Bunmi Oke of 141 Communications; Obinna Anyalebechi, Consumer Marketing, Guinness Nigeria Plc and others

In their submission, they advised that Marketers should be mindful of what consumers want and work towards achieving them. On the relevance of the digital space in Marketing they stressed the importance of flexibility, creativity and openness but  also advised that brands  should not just focus on what is “shinning and new” but what can really deliver in the marketplace.

  In his keynote address at the conference, Lai Mohammed, minister of information stressed the need for ADVAN and government to work as a team so that government can learn from the professional marketers on how best to build consumer/citizens’ confidence in a difficult situation and galvanise them to rally behind government and support its policies.

Earlier, the President of ADVAN, David Okeme, said the association, an umbrella body of brand owners and advertisers, was formed 22 years ago. He revealed that the conference was in line with the association’s tradition of keeping strategic marketing issues on the front burner of businesses in Nigeria.

Daniel Obi