Dairy brands battle for market dominance
It has become evident that the battle for market dominance among leading brands in the dairy segment of the food and beverages sector of the Nigerian economy is getting fiercer by the day. This is not surprising in a market with strong population growth. Interestingly, the growth is significant in the segment where milk consumption is most needed namely among children and young people.
But the prospects for market growth is strong enough to accommodate all players as many households in the country still consider milk consumption a luxury that is occasional rather an everyday activity which it ought to be. According to industry analysts, drinking milk products is expected to increase by a value Compounded Annual Growth Rate (CAGR) of 3 per cent in 2015 when compared to 2014 prices. Analysts also forecast that disposable incomes will increase thereby boosting consumer confidence while milk producers are also expected to spur growth with new product launches pushed by strong marketing activities.
In the competitive milk products category, the big players are Chi Limited, FrieslandCampina Wamco Nigeria, Promasidor Nigeria, Bobo Food and Beverages and Fan Milk. Among them, they are responsible for over 80 per cent of dairy products in the Nigerian market. They separated themselves from the rest of the field by engaging in innovation and marketing to attract new consumers. Amongst the three dominant milk brands on the shelf in Nigeria are Hollandia Evaporated Milk, Peak Milk and Cowbell Milk.
Peak Milk, produced by FrieslandCampina Wamco is perceived to be the market leader but this may not be totally true. Promasidor’s strategy of smaller packaging for its products has also helped it to capture a sizeable share of the retail market but Chi Limited, with its Hollandia Evaporated Full Cream Milk, has set a strong footprint as it is the first milk brand in Nigeria to be packaged in Tetra pak, taking product packaging and convenience to a whole new level
With brands competing for the consumer’s attention, innovation has become imperative. Quality, Pricing and convenience are generally attributes that attract consumers to dairy products in Nigeria and any brand that wants a larger share of the market adopts strategies along those lines. For Peak Milk, premium quality has been at the centre of its communication. Cowbell Milk has always projected itself with quality and affordability, whilst Hollandia Evaporated Full Cream Milk has communicated its essence with high quality, affordability and convenience. Its innovative Pour, Cap and Keep pack eliminates the hassles of milk storage because the design ensures longer safety from spoilage and contamination
A cursory look at communication campaigns run by these brands in recent times show an attempt to connect with consumers in engaging ways. For instance Peak Milk which celebrated its 60th anniversary recently; routinely informs the public that it contains 28 vitamins and minerals, including vitamin B1, B12 and iodine in its advertising. Hollandia Evaporated Milk’s recent campaign of 25 percent more milk in its 215g at same price was a great way to market its added value and competitive pricing. Through extensive communication we know it is made of cow’s milk ingredients with Stabilizers (E339 and E407). With Milk Fat at 8.5% and Total Milk Solids of 29%, it contains natural milk fat, milk solids, all protein & essential nutrients of cow’s milk with added Vitamin D3
The dairy market in Nigeria is sure set for exciting times ahead as these companies and brands continue to appeal to all classes of consumers and make inroads into the market through bespoke marketing initiatives