Nigeria is a unique place. There is no market like our market. Over 170 million people, multiple ethnic group and a young population. Some companies have been able to master this complex and complicated nation. What are some the Business Lessons we can learn from such companies – including Cowbell and Durex?
Many Nigerians live at the bottom of the economic PYRAMID. The base of a pyramid by shape is usually bigger and wider than the apex, there are more poor people in Nigeria than rich people.
However, there is fortune at the bottom of the pyramid. The poor also have money to spend but the way and manner they spend is different from the middle class and affluent. What are some of the business lessons that can be learnt from Cowbell and Durex?
Cowbell Milk Gets It
They studied the Nigerian consumer and noticed that the poor cannot consistently afford to buy a tin of milk for N300 or N250, so they packaged milk in powder form in sachets and began selling it for N50 per sachet and their sales exploded. When peak milk the market leader at the time saw the revenue of cowbell milk, they did not only put powder milk in sachet, they took it a notch higher and put liquid milk in sachet which sells for N50 per sachet.
This ensures that the poor and subsistent family in Nigeria can afford to put milk in their tea and also in the diet of their kids.
So, the other day I was in a grocery store in an affluent neighborhood buying stuff for my family and as I was about to pay for my goods at the till I noticed that DUREX the condom makers have started packaging condoms for N150 per sachet and selling to the Nigerian consumer.
This is the reason why DSTV has DSTV GO for the less affluent. This also the reason why UBER for the first time started collecting cash from Nigerian consumers. Our market is unique to succeed in Nigeria as a business person you must know the environment.
The business lesson in all of these is, KNOW YOUR MARKET AND KNOW YOUR CUSTOMER. If you don’t someone else will do it and smile to the bank.
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