NBC, Nestlé, Cadbury hailed over successful collaborative model

Industry analysts have showered encomiums on the collaborative model that has ensured internal harmony and led to the successes of mega manufacturing enterprises such as the Nigerian Bottling Company Limited (NBC), Nestlé Nigeria plc, and Cadbury plc.

Collaborative model is the realisation of the interconnectivity among key business variables such as category analytics and planning, cross-functional account management, supply chain merchandising, planning and performance spend analytics, retailer competition knowledge and innovation, among others.

“Nestlé, Cadbury, NBC all have this model and this is what sustains them. Internally, they work with each other to achieve shared goals. They source data, develop insights, syndicate and use these insights to produce results. They satisfy consumers’ needs without compromising the ability of future generations to meet their own needs. I have worked in these places, so I know,’’ says Idorenyen Enang, ‎managing director, L’Oréal Central West Africa, during the Retail Leaders Conference held last week in Lagos.

According to him, these firms see collaboration as a successful marriage that involves falling in love many times with the same person. They engage the right benefit sharing model, have a stock of managers with positive mindset and a joint performance management system as well as partner on capability strategic goals and value, adds Enang, stressing that these should become take-homes for all retailers wishing to compete in Nigeria.

Drawing from his experience in Nestlé, Dharnesh Gordhon, managing director of the company, points out that he sees market trending towards digital, from traditional and emerging platforms, stressing that technology is leading revolution, a trend his company is conscious of.

“The retail landscape will continue to evolve. Shoppers will become more discerning and seek more value, while shopper loyalty will be the big focus. The threats and opportunities I see are tailoring product offerings for different formats and internalisation of local market,’’ he stresses.

Joseph Ebata, president, DMSRetail West Africa Limited, organiser of the event, says what would be picked from the programme are collaboration, change of mindset among retailers and the right beliefs, adding that explosion of the retailing landscape would provide employment and other opportunities in the economy.

“If you leave Nigeria now and come back in 10 years’ time, you will be amazed at what you will see. Europe is finished, Asia is conquered, and Africa is the in-thing. And in Africa you have Nigeria. There should be change of mindset and right beliefs among retailers,’’ he stresses.

Nestlé produces baby foods (Cerelac, etc), bottled water, chocolate and confectionery, diary and drinks, among others, while Cadbury is a household name for sweet and confectioneries such as Bournvita, Tom Tom and Tang, among others. NBC produces Coca-Cola, Sprite, etc. These multinational organisations build businesses around processes, rather than individuals, industry analysts say.