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Monday 9 November 2015

Some Big Lessons for Big Cola

Raheem Akingbolu writes on the competition in the carbonated soft drinks market and the hurdles before Big Cola, the new entrant into the market. 

When a new entrant comes into a competition with established players, it often comes with a lot of hubris and razzmatazz. Soon enough reality sets in that the race is not a sprint but a marathon.

Perhaps this is a lesson that the AJE group – owners of Big Cola - needs to take into cognizance as it makes its entry into the dynamic Nigerian market of carbonated soft drinks, where Coca-Cola and Pepsi have held sway for decades. According to an article in Financial Times, a combination of low-cost operating strategy and clever marketing has enabled AJE make inroads in some markets in Latin America and Asia. This could be an interesting time for all players and the consumers will no doubt gain from the firework that is sure to follow.
 The launch, the message
With a clear message ‘You think Big, You drink Big’, which serves as pay-off, AJEAST Nigeria Limited, a unit of AJE Group, a multinational beverage company, recently entered the market with varieties -big cola, big orange and big lemon.

With its footprints in over 20 countries of the world and as an official England promotional partner, including the FA Cup and Barcelona, handlers of the brand are confident that it would succeed in Nigeria.

Speaking at the launch, which was held in Agbara area of Ogun State, the Country Manager of the company, Mr. Theo Williams, said, “The focus is about consumers, AJE in Nigeria is to offer ‘big’ for everybody, we are giving more for less. We want to ensure that consumers get something affordable that they can share with families and friends.

“We are on a line, where we produce the bottles; we do the wrapping and packaging. Our aim is to offer more for less, while other soft drinks of 50cl are being sold for N100, we say no, giving 15cl so that consumers can see the benefit. We will introduce new brand every three months.”

Williams added that the unique selling model the company had adopted with regards to pricing in Nigeria is to ensure that the group has the ability to monitor the consumer price. He also pointed out that the company has capacity to its budgeted consumer in the next six months.

He put their investment at N5billion, saying it is expected to be in operation in Cameroon in July 2016, while negotiations are still ongoing in other African countries.



The big question


The big question for Big Cola, however, is whether its promoters will be able to compete sustainably in Nigeria? However, as people say in this part of the world, time will tell.
Other questions on the minds of most analysts are: what chance does Big Cola have in a market in which the global giants mainly Coca-Cola and to some extent Pepsi reign supreme?  Would a cheaper price-tag be the propeller for Big Cola’s potential growth in the Nigerian Market? The answer is certainly dicey for now, especially in a market that is predominated by traditional trade.
Big Cola has got its work cut out!  Even with their price penetration strategy, it would face a tough challenge.



The big lessons
The first big lesson that Big Cola needs to take seriously is the fact that Nigerian consumers are exposed and aspirational, including those at the bottom of the pyramid. They are not easily swayed by any product or service that aims to fascinate rather than satisfy their refined taste and quest for brands with strong appeal.  Most Nigerians may be poor but they have a high aspiration that gives them a strong sense of entitlement to quality.  So, while under the burden of necessity, they may endure a “cheap article”, their eyes and hearts are set upon the real thing, their preferred products or brands.

Quality products will always resonate with consumers, and repeat purchase is inevitable once that is guaranteed.  That is what a company like Coca-Cola has enjoyed over the years, having gained a public perception as the quality benchmark for soft drinks. Will Big Cola pass the taste and quality tests long enough to win over the Nigerian consumer?

The second big lesson for Big Cola is that the Nigerian consumer is sophisticated and cannot be sustainably wooed with showiness and propaganda. In other words, you cannot pull wool over their eyes only for a short while. ‘Big talk’ is good for psychological and religious motivations that have no price tag, but not for selling a product that a Nigerian has to pay for with his or her hard earned money, and especially not when the consumers are already in a decades old love affair with trusted brands like Coke and Pepsi.


 But if handlers of Big Cola are indeed sincere in their approach as presented during the launch, then it will be another war in the industry. Again, the brand may end up winning the loyalties of some consumers and puncture the huge market share of the giants in the market.


PR stunts
Reading the PR media blitz on its recent launch event, one gets the feeling that Big Cola probably needs to tone down its hubris and talking-down competition, and focus on how it can, like Coke and Pepsi, build exciting and enduring connections with consumers. Unfortunately for Big Cola, that wily wizard of marketing only recently raised the bar too high with its Share a Coke campaign that numbed all other brands.

The third big lesson for Big Cola is that it has a long way to go in building the level of social footprints and equity that Pepsi and especially Coke have built over the years. Nigeria is a poor country, and connecting with consumers must go beyond products and marketing. Companies must demonstrate social responsibility through their business conduct and through investing in causes and programmes that impact the sustainable development of their communities.

As Big Cola seems intent on sparking off a Cola War in Nigeria, one wonders whether this is a David confronting Goliath or the case of a drunken man prodding a napping lion. Whatever the case, may the consumer win big time!

46 comments:

aproko manager said...

Too long na

Unknown said...

To me, nothing beats Coca-cola. Its simply unique. Linda take note!

Unknown said...

To me, nothing beats Coca-cola. Its simply unique. Linda take note!

Blog It With Olivia said...

Hiaaaan. okwu o

















#It WiLL oNLy gET beTTer
#It mUsT eNd in Praise

Anonymous said...

Very clever marketing

Unknown said...

Coca-cola any day anytime. Goodluck to Big Cola sha.




















#TeamBlessed#

Anonymous said...

Wonderful

Comment frm ROYAL PRIESTHOOD (royalpriesthood007@gmail.com)

Unknown said...

SEEN
















AUNTY LINDA.....

Unknown said...

Explain again.

Unknown said...

The streets are saying otherwise o. More people are buying Big Cola.... You know say size matters in Nigeria.

ashikemabraham said...

Employ me, give me a job n I will guarantee u success, u got all u takes to compete favorably

Anonymous said...

Hw do u expect me 2 read dis long note under dis hot sun?
Gush
#oneandonlynwa@gmail.com#

Anonymous said...

He doesnt know what he is talking about. You sit down in your house and write one mumu article. Big cola has already taking over Lagos state, its only a matter of time before it moves to other state. The question should be, how long can they sustain it. I own a shop were i sell drinks, we know more than you sitting down at home.

Cessa Beauty World said...

I don't like the drink my Fanta does it for me anytime anyday

Anonymous said...

big dream (BIG-COLA IS THE BEST) nice taste ,
low sugar

Anonymous said...

Well thought out and phrased write-up. But I wander what the writers aim is in putting up this write up? Are you indirectly seeking for employment with the manufacturers of Big Cola or are you trying to put the brand down in the minds of consumer? I feel this write up is somewhat a subtle social media war?
Another question: Are you freelansing this subtle mud sling or been paid for the competitors? Or is this another attempt by Big Cola to gain free attention ( social media marketing strategy using reverse psychology)?
I ask all this because because it seems you are trying to draw consumers attention to the product while informing us in undertones of the motivational (I.e the likely product benefit/free incentives) that the product has in store for discerning consumers....
Competition is good, subtle mud slinging/ bad advertising is not so right...

I think what the makers of Big Cola needs to work on are:
- improving their awareness drive to generate product in take consideration.
- identifying their target audience, they could start with a focus group
- further communicating the key benefits of the product offer ( leveraging on pricing is good but we need 2 or 3 more benefits)
- deploy more impactful SMART advertising strategy
- give the brand some quick win milestones and Go for the Share grabbing kill

Yes, grabbing market share from the competitor may look daunting, but am very sure that with the right focus and strategy, Big Cola may soon have the "Giants" shivering.

Nigerian consumers are discerning, aspirational, conscious of the socio economic impact on their finances & also love getting Value For Money Products/ Brands. Otherwise the likes of the mini food vendors and roadside ice cream/ yoghurt vendors would have been out of business.

So this is good investment in the right direction.

Talking quality... Coca Cola especially has not been so good at maintaining product standard consistency for most of their products especially coke & 5Alive ( Check Media reports & past blogs). Or should we talk about the reduction in cokes product content and consumers diversion from noticing the change by the introduction of personalized bottles.

Competition is very good, achieving success all boils down to effective marketing...
Just maybe, this will make the manufacturers of coca cola & Pepsi sit-up...

Let's watch really marketing at play and see what happens.

Unknown said...

Big cola is nice...nd jst like coca cola

Unknown said...

Big cola is nice...nd jst like coca cola

Anonymous said...

Coca-Cola all the way!!! Big Cola is joke, the after taste sucks big time.

benny said...

I am a longtime coke freak but of late I have been so disappointed with the taste you get from Coke. Mtchew it taste very poor and cheap.

But just today I tasted big cola and I have to say IT TASTE MUCH BETTER THAN PET COKE, much better.

Coke step up your game or else naija boys go change shop o

Unknown said...

This huge article just for a bottle of BIG COLA? Am done.

Anonymous said...

oh please, i tasted big cola over the weekend and it just had this after taste. Coca-cola all the way

Anonymous said...

oh please, i tasted big cola over the weekend and it just had this after taste. Coca-cola all the way

Anonymous said...

Always Coca-Cola, yeah!!!

OLANIKE said...

I SELL soft drink i bet it with the consumption of Pepsi in the market of present followed by cocacola Big cola is BEHIND,I consumed 300packs of pepsi in a week while 100 for cocacola and 15 or 20 for Big Cola wishing them the best and they should allow there vehicles in Ogun State Otta to b precise with that they can gain the ground a bit

Anonymous said...

I love the Big Lemon especially when it's chilled. Bye Bye to Sprite.

Anonymous said...

I love the Big Lemon especially when it's chilled. Bye Bye to Sprite.

Anonymous said...

Good drink....hope it stays strong and it's improved upon this coming months.

Oskirin said...

dt's d beauty of competition.d consumers av a lot 2 select 4rm.

Anonymous said...

Coke all the way abeg. Even Pepsi no reach anywhere

Anonymous said...

Linda, please who wrote this article? From what i see here, Coca-cola has done this. They should face their sugar level isues and stop mouthing others who are trying to grow. That's my opinion tho.

Unknown said...

Pricing is a good marketing strategy but not enough to sustain you in d marketing also considering a gaint like coca cola

franka said...

Big Cola we need quality not quantity
Pls do we look like a distressed nation to you?
Take your time and do not be like looking down on us nigerians

Unknown said...

I read through the analysis above and some comments with mixed feelings.Am a player in the industry and simply want to tackle the big cola issue from the old fashioned 4Ps, as well as present day relevance. Looking at the product quality of big cola, It passes blind text and when chilled,only 17% of consumers differentiate it from the taste of the big players (Coke and pepsi);Meaning that it passed the Product quality text. In pricing, the perceived value is actually higher than that of the big players (at #90 per bottle-though it would be sold by retailers at #100. Meaning that consumers buy more for less;retailer make more money.In term of discount, the mouth watering discount of 20% (though introductory discount) is the highest in the industry.The implication of this is that any effort by the big players to contest that would be seen as reactionary by the wholesalers,retailers and the consumers.that are at present well taken care of.In term of placement (distribution), the arrogance of the big players would certainly help them to penetrative the market fast enough through thier own organised channel.But sustainability of the offers could pose a danger to big cola for the dealers to make a repeat purchase.Intense Promotion is required to drive penetration at this level.Being a new product, focus should be on lowhat end for now and not to want to match the big players head on.Having secured a leading rating in Product volume and pricing, big cola should just concentrate on such and build on other two .

Iyatu said...

I sell drinks in wholesale and people are demanding for Big cola like mad.so all his write up na story.enter markets knw wat is happening before talking

Iyatu said...

I sell drinks in wholesale and people are demanding for Big cola like mad.so all his write up na story.enter markets knw wat is happening before talking

Unknown said...

Big cola!! Whoop whoop! I just like the fact that there's no caffeine in their drink.. and the taste is good..

Anonymous said...

Time will tell. This is Nigeria.

Unknown said...

If e no be #CocaCola, e no fit be like am

seunzy said...

Psychological whipping for big cola. This article is Coca-Cola sponsored. Note it

james said...

diabetes on the rise with this coca cola self

Anonymous said...

Watch the sugar levels in most of these cheap soda drinks esp with growing kids. Too much sugary drinks contributes to obesity, childhood diabetes including related health diseases aand suffering.

Anonymous said...

Watch the sugar levels in most of these cheap soda drinks esp with growing kids. Too much sugary drinks contributes to obesity, childhood diabetes including related health diseases aand suffering.

Yomi said...

If its not coca-cola it can never be coca-cola. Big cola is not original going by the name and taste so cannot stand test of time. Tastes like expired coke. And the after taste is something else.

Unknown said...

I like the taste of the big Cola anyway

Anonymous said...

So data big cola, 46 calories story I will pass on dates drink. Coca-Cola us trusted

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