Kantar identifies key driving elements for brands growth in Nigeria
A recent study by Kantar World Panel, a division of WPP, one of the world’s largest insight, information and consultancy groups has identified key elements that drive brands’ growth across categories including FMCG, banking and service sector.
Top among the elements is brand penetration, ability of the brand to adapt quickly to shoppers choice such as pack size and price point, thirdly is volume of spend for the brand and fourthly, consumer frequent interactions on the brand.
For instance and unfortunately, local brands have continued to chip away from global brand spend. In 2016 and 2017, local brands spend 35.8 % and 35.4 % respectively against global brands spend of 64.2% and 64.6%.
The report notes that in Africa, traditional trade is still very high accounting for 76% of trade against 10% in USA, 9% in Western Europe, 41 % in Asia. E-commerce accounts for 2% in USA, 6% in Europe, 7% in Asia while it is almost non-existent in Africa. Africa accounts for 24% of modern market against 88% in USA, 86% in Europe and 52% in Asia.
On how to set penetration target, the report advised brands to set country specific targets, be more ambitious and be realistic if recovering from decline.
The study, Brand Footprint tracked the most chosen and fastest growing global FMCG brands based on behavioural purchase data collected from more than 40 countries worldwide, among them six African countries including Nigeria. The report provided a comprehensive, up-to-date picture of the most important consumer trends and the strategies deployed by winning FMCG brands—at both global and local level.
According to the report, Indomie continues to be the most chosen FMCG brand by consumers in Nigeria. The brand was followed by Maggi and Cowbell. Others are Peak (#4), Milo (#5) and SoKlin (#6). Dano gained presence in Nigerian households and manages this year to climb 7 positions and become the tenth most chosen brand in the country. The rest of the Top 10 positions are secured this year by Golden Penny (#7), Aji-No-Moto (#8) and Onga (#9).
Speaking at the presentation and awards for the top brands recently in Lagos, Aggrey Maposa, CEO of Kantar business in Nigeria said the Kantar awards for brands in Nigeria are conducted through an empirical study by the group. “Having been in Nigeria for over 35 years, we feel it is our responsibility to introduce credible awards that are based on information collected from consumers. We realized that in the market there are quite a number of awards that are given for various reasons but most of these awards are not empirical and not based on facts,” said Maposa. Ours is data and insight driven nothing less is expected of the Kantar companies.
Ugo Geri-Robert who leads Kantar Millward Brown Nigeria in her presentation, “Using brand communication to build brand imprint for success,” said brands need to maximise salience and come readily to mind when consumers are prompted by a relevant need.
According to Geri-Robert a seasoned marketing research consultant and a fellow of the National Institute of Nigeria (NIMN) brand assets are established in a positive feedback loop between marketing and brand experience, while a strong imprint boosts brand equity by increasingsalience.
“One of the key measures we track is the brand equity and that is the reason for the award. Brand equity represents the strength of the brand as seen by consumers and other stakeholders,” she stated.
The winners according to Geti-Robert in the Equity Award phase are : Brand with power score Gala , followed by Golden and Peak. Finalist include: Hollandia and MTN
The prime brand of 2018 Hollandia, Most Meaningful Brand Peak, Most Differentiated Brand Peak and the Most Salient Brand Maggi.
Commenting on the Kantar Awards Ceremony Michael Umogun Head, Business Development of the Kantar Millward Brown Nigeria and Ife Akinyele Director, Kantar World Panel in Africa and Middle East said this tradition of excellence would only get better with time as Kantar Millward Brown Nigeria and Kantar World Panel helps brands grow and create value for it’s clients and customers.
Daniel Obi