Nigeria’s current economic reality is such that prices of goods & services have skyrocketed thanks to a plethora of factors including Fx scarcity, Insecurity, Inflation and the impact of COVID-19 on trade, production and distribution. All without a corresponding increase in consumer earnings.
Nigerians are therefore having to spend more without earning more to meet the same needs. And since they do not have more to spend, Nigerian consumers are no longer just choosing between brands in the same product category, but also weighing benefits and values of multiple and often unrelated product categories against each other.
For example, it will not be uncommon to see consumers now having to choose between paying for a monthly cable subscription or buying a carton of beer or paying for data services. Therefore, the beer companies, telcos and cable companies in this example must consistently demonstrate their absolute value to the Nigerian consumer, not just over competitors but also over products vying for the same limited resources.
So how can brands win?
1. Increase value to consumers by developing new offers, features, services that will deliver additional benefits. Brands must now re-centre the customer as the focus of all activities and find innovative ways to deliver more value.
2. Communicate aggressively to remind customers of value at the planning & decision stage.