Hollandia Milk battles Peak, arm with tactics

Peak Milk, the popular premium brand from the stable of Friesland Campina Wamco is 61 years old in Nigeria. The iconic dairy brand has over the years been enjoying top of the mind mention and brand loyalty among consumers that it may have sat comfortably benefiting from brand loyal consumers without realizing the heating competition.

This obviously contrasts the popular aphorism that in a market environment “It does not matter whether your company is a lion or a gazelle. In the jungle of business, any time the sun rises, just get up and keep running. That way, the lion will not starve, as it can catch the slowest gazelle for food and a smart gazelle will survive if it outruns the fastest lion”

  Today in the Nigerian dairy market, Hollandia Evaporated Milk, produced by Chi Limited incorporated in 1982, is tackling Peak Milk in its comfort zone for more market share. It is a direct competition as Hollandia with aggressive market push is creating strategies, digging up facts and figures to prove points.

The trending stroke…

Peak Milk which had fought competitive wars in the past is faced with similar fight.  In its drive to continuously innovate and put consumers at the heart of its campaign, Peak Milk recently came up with a creative Wazobia commercial aimed at pushing its economy pack sizes that sell for 50 Naira each.

In what industry analysts consider a similar marketing approach, Chi Limited and its creative agency developed related marketing campaign for Hollandia Evaporated Milk – ‘HollandiaEvap: Na correct Wazo’ to push its enlarged economy pack sizes too. It did not stop there; the Hollandia brand further deployed a cloudy picture of Peak Milk Wazobia pack size with a slight erasure of some elements in the product’s look to send its message.

Perhaps, realizing that there is danger in the marketing space, Peak quickly responded with a counter commercial.  It employed popular comedians such as Ayo Makun (AY), Oluwaseyitan Lawrence Aletile (Seyi Law) for a commercial that  emphasises on quality.

In the Peak latest commercial, there was argument for supremacy among two motor mechanics. AY who represented Peak claimed to be ‘Wazobia’ and getting more jobs because it is  old and experienced in the business, while another unnamed mechanic claimed to be ‘Wazo’ who was protesting for not getting jobs. Then enters Seyi Law who staged arm strength contest among the two mechanics to determine the superior brand. Eventually, AY won the contest to the chagrin of the other mechanic and there was hurray.

Since, this development has elicited reactions from the marketing communication community some of whom have described Hollandia commercial of Wazo as s mimic of Peak Wazobia commercial.

Observing closely, a marketing expert said that the current marketing warfare in the Nigerian dairy sector has brought out more poignantly the marketing aberration called copy-cat creativity in contemporary advertising. Specifically, the currently running advertising campaign by Hollandia Milk in pushing its smaller sachets products in the market has inadvertently portrayed the paucity of creative ideas by the brand handlers. It anchored the new campaign by passing off Friesland Campina Wamco’s Peak milk’s Wazobia commercial, he said.

“Indeed the contest and competition by brands for the soul of the consumers is as old as marketing itself, but a development where a brand naively mimic, or copy-cat the creative idea of competitors in selling its products is an aberration”, he said.

Assessing this development in a report, the newly elected President of Association of Advertising Agencies of Nigeria (AAAN), Kayode Oluwasona frowned at the scenario and assured about his association’s readiness to combat copy-cat in the advertising business in Nigeria.

“There may be one or two instances of pass off or copy-cat, the issue has not gotten to a frightening stage, but there is obvious need to nip it in the bud.”

Hollandia’s more market push

Hollandia’s brand owners are also leveraging some research data by A.C. Nielsen to show its consistent market share gain against competitor’s loss.

It is confident that “Hollandia Evaporated Milk is always providing value for money to consumers. In terms of quality, given its innovation in terms of packaging and product we have seen how Hollandia Evaporated Milk is considered the quality benchmark in the Evap category”.

Further in terms of quantity, it said  each format provides quantity benefits in these hard times. “They say good things come in small sizes! That has never been more true than now with our very own HollandiaEvap 65g pack that retails for an amazing N50. Though it shares this price point with some others, what our ‘Wazo’ pack has over all of them is a whopping 15g more. So we had to tell consumers in a big way that HollandiaEvap 65g is the Correct Wazo Milk! Therefore, a campaign led by a TV advert has been developed and is being deployed to establish HollandiaEvap Milk as the correct Wazo Milk.

“The commercial depicts everyday people from different walks of life proclaiming HollandiaEvap Milk as the Correct Wazo Milk, relishing in the quality and quantity of the milk as they enjoy different meals that can be had with HollandiaEvap Milk. The message of the Correct Wazo TVC has coincided with the unfortunate rise in the cost of living in the country that sees most Nigerians looking out for ways to optimise their spending and get more value for each purchase, thereby making our message all the more impactful reminding consumers that unlike competing milk brands, HollandiaEvap is offering more value for money with the “Wazo” pack”.

Similar wars in the past

This scenario had played up in the Nigeria’s dairy market in 1980s when Cowbel Milk from the stable of Promasidor Nigeria Ltd was introduced in to the Nigerian market.  At that time, Friesland Campina Wamco was producing Peak Milk only in tins but Promasidor saw the need to package milk in sachet for lower price. This rattled Peak that it fought back to regain its market.

Competition is healthy in any market but where it offends rules is where campaigns pass off other brands. As experts say “Nothing is more efficient than creative advertising. Creative advertising is more memorable, longer lasting, works with less media spending and building a fan community… faster.” As Peak and Hollandia play in the same market for brand loyalty, market share and profitability, engaging consumers with creative and original works would still achieve the desired result for each of them.