Bournvita drives customer loyalty with new market strategy

Business is war and it is fought with market intelligence, and only those who are able to outsmart competition, think outside the box, build value and trust and understand their customers would have positive impact on bottom-line, either immediately or latter.

In all sectors, competition is fierce and to achieve strategic market advantage, players need to sleep with one eye closed, but more importantly rely on market information. It is on this basis, perhaps that led the confectionary giant, Cadbury Nigeria plc to replace its 450 gramme pack of Bournvita with 500 gramme, as it says the difference in price is marginal as it does not reflect the quantity increase.

To some analysts, the company could have played more at the Bournvita small pack category since Nigeria’s population is a 30 percent rich and 70 percent poor, but Cadbury appears to be playing strongly on both segments. While the small packs of Bournvita are doing well in the market, the company engaged in the strategic ‘upsizing’ to the 500 gramme for the standard family.

The market objective of the plan is no doubt to offer more value and quantity to consumers and make the family to continuously consume Bournvita food drink. “This upsizing to 500 gramme pack is aimed at adding more vitality to our consumers, giving more value with every purchase of Cadbury Bournvita 500 gramme jar and 500 gramme refill pack,” Emil Moskofian, managing director, Cadbury Nigeria, says.

It is not clear how the company will make immediate profits from the project it invested over $100 million, but analysts say the market strategy is to build, sustain and increase future consumer demand. When this is achieved, all stakeholders will smile and congratulate the company for a good strategy borne out of knowledge within the sector and competition that gave rise to the strategic idea and its execution.

Introduction of the new pack to the market is not enough as the company which has been in existence in Nigeria for about 50 years needs effective marketing to ensure market acceptability of the product.

Though, it has since launched commercials to support it but analysts believe that other leg of marketing like promotion and experiential may also be necessary.

Emil further used the opportunity of the unveiling of the new pack to share with the public some of the reasons for this, by saying “Cadbury Bournvita has been part of the fabric of the Nigerian society over the last five decades, providing nourishment and vitality to generations. Cadbury Bournvita is the only food drink in Nigeria that has been endorsed by Nutrition Society of Nigeria, re-confirming its nutrition credentials and Bournvita is manufactured in our world-class manufacturing plant by highly trained team of experts.”

Recently, Cadbury Bournvita received endorsement from Nutritional Society of Nigeria (NSN), and the second endorsement so far from the society in five years. Emil says it is a confirmation of the the care we take in our production and processes and nutrition credentials of the product.

“The process of endorsement of Cadbury Bournvita by NSN took over 12 months; they were with us throughout 2012. They checked everything, including our processes, quality standard, inspection of the raw materials and facilities, including the production process and at the end, they were able to confirm that our product meets international standard,” according to Emil.

On the company’s position on brand promise, Dele Anifowoshe, marketing director, restates the fact that Cadbury was always double-checking any nutritional credential, adding it also pays attention to research and feedback from consumers.