X raying nigeria beverage industry

1. X-raying Nigeria
Beverage Industry

2. INTRODUCTION
This research strived to study consumer’s preference and consumer’s buying behavior on beverages in Lagos state,
taking Milo and Bournvita as a case study. In other words, the research takes an in-depth look at the consumer’s
preference and buying behavior on chocolate beverages.
OBJECTIVES AND METHODOLOGY
The main objective of this research work is to identify the factors which influence the consumer buying behavior and
also to identify the factors which influence the consumer preference. In addition, we will deduce whose market
share is the largest.
The key components of the methodology are the research design, population & sample size, and sampling technique.
Data used was a primary data collected using a well-defined questionnaire. The consumer’s questionnaire was coded
into a google form while the retailer’s questionnaire was coded into a survey collection app called Hazon
technologies survey app. The questionnaire comprised of several questions that attempted to know the opinions of
consumers and retailers.
The study considered the entire city of Lagos. Chocolate beverages are consumed by all ages, in view of this, the
population size of this study is the number of people living in Lagos.
The sample size chosen for this study is 400 respondents. This sample size is divided into two parts, the consumer’s
questionnaire takes 70% of the total sample size (280 respondents) while the retailer’s questionnaire takes the other
30% (120 respondents). The consumer’s questionnaire was developed to get feedbacks from the end user of the
products, while the retailer’s questionnaire aims at getting feedbacks from those that sell the products. This will
enable us get much insight from the bottom of the value chain. Also, the study employed simple random sampling
(SRS) to select the respondents. The survey was carried out in September 2019.
Retail Scope is a one stop solution platform for every retail market and consumer research.

3. RESULTS AND DISCUSSION
The ages of the respondents cut
across 15-69 years. However, the
youths participated most in the
consumer’s survey with a respond
rate of 66%. Also, 90% of the
consumer’s respondents were from
the mainland part of Lagos.
66% of the
respondents
are youth
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4. The survey shows 77% of the consumer’s
respondents were single while 42% had a
disposable income level ranging between
N20,000- N49,000
42% of the
respondents have a
disposable income of
N20,000-N49,000
₦
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5. The survey reveals that of the
consumers that preferred Milo, 38%
preferred to purchase Milo 20g,
followed by 31% which has
preference for Milo 500g. Similarly,
of the those that preferred
Bournvita, 48% preferred to buy
Bournvita 20g, followed by 38%
which has preference for Bournvita
500g. Furthermore, according to the
retailers, 84% are of the opinion that
the most purchased chocolate
beverage is Milo 20g, followed by
Milo 200g
3% 5% 6%
84%
3%
Bournvita (20g) Milo (1kg) Milo (200g) Milo (20g) Milo (500g)
Chocolate Beverages Purchased Regularly
84% of respondents
purchases Milo 20g
regularly
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6. The average prices of the most
purchased chocolate beverages by
the consumers are shown above
with the average retail prices. Both
Milo(20g) and Bournvita(20g) have a
stable price of N50, which explains
why they are the most purchased
chocolate beverage among the
different SKUs.
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7. As shown in the chart, 73% of the of
the consumer respondents are of the
opinion that Milo is the best
chocolate beverage when compared
to other chocolate beverages.
Consumers have various reason why
they choose a brand; of the consumers
that preferred Bournvita, the survey
shows that 50% preferred Bournvita
because of its richness of ingredient.
However, 46% of Milo lovers preferred
Milo because of its taste. Although, 34%
also like Milo for its richness of
ingredient.
7%
20%
73%
Consumer Perception of Chocolate Beverage
Retail Scope is a one stop solution platform for every retail market and consumer research.

8. 61% of the consumers who participated in
the survey believe Milo is better than
Bournvita, while 22% were indifferent
about which of the two chocolate
beverages is better. Moreover, 48% of the
consumers are of the opinion that the
taste of Milo is the advantage Milo has
over Bournvita while 20% believe the taste
& its quick dissolution in water is the
advantage.
1%
5%
22%
1%
21%
1%
1%
48%
Advert
Bigger Quantity
Brand Name
Colour
Price
Promo
Sweetness
Taste
What Determine Consumer's Choice to Purchase a Chocolate
Beverage
Furthermore, 48% of the consumers
prioritize taste of the chocolate beverage as a
determinant in purchasing. Followed by
brand name 22% and price 21%. It is worth
nothing that promo (1%) and advert (1%)
have little or no effect on consumer’s choice
of purchasing a chocolate beverage.
Retail Scope is a one stop solution platform for every retail market and consumer research.

9. Consumers are king in business because they have the right to choose from any brand of their choice in the market
without been penalize. Sometimes, brand loyalty is been tested in different forms and shapes and the consumers
react accordingly. 38% of the consumers would change brand if the taste change, followed by 31% for quality drops.
However, 13% of the consumer would remain loyal to their preferred brand irrespective.
6%
13% 13%
31%
38%
Quantity drops Nothing Price Increased Quality drops Taste changed
Reason to Switch Brands
The main reason Consumers
consider switching to another
brand is when there is notable
changes in taste
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10. The retailers sell many brands of
chocolate beverages. Although, they
choose the fast-moving brands in order
to make more profit. All of the retailers
that participated in the survey sell Milo
brand because it is the most patronize
of the chocolate beverage by the
consumers. 85% of the retailers sell
Bournvita brand, 84% sell peak
chocolate, while 41% sell Ovaltine.
All retailer respondents
interviewed sell at least a
product size of Milo
85%
41%
84%
100%
Retail Scope is a one stop solution platform for every retail market and consumer research.
Retailers’ Stock of Beverages

11. TAKE OUTS
The study was carried out to determine the preference and buying habit of chocolate beverage consumers in
conjunction with the retailer’s perspective. The survey revealed that majority of consumers sampled preferred the
Milo brand compared to Bournvita based on quality of taste and it is the most purchased of all the chocolate
beverages. In addition, the Milo 20g is most patronized of the Milo SKUs because of it price, although, Bournvita 20g
also goes for the same price but most consumer preferred the Milo 20g.
Consumers preference differ according to the brand preferred. Most consumers that preferred Milo believe its taste
and ability to dissolved in water. On the other hand, taste and richness of ingredient are the main reasons some
consumers preferred Bournvita. A large percentage of the consumers that participated in the survey believe Milo is
a better chocolate drink than Bournvita.
Taste, brand and price of the chocolate beverage are the primary determinant in choosing a beverage brand
according to the consumers. Although, there are others determinants but they have less effect in influencing the
choice of the consumers. Moreover, most consumers are of the opinion that whenever there is a change in taste or
quality drops of the chocolate beverage, they are willing to switch brands.
Finally, according to the retailers that participated in the survey, Milo is a cash cow for the retailers due to the rate
at which people purchase the product. It is impossible not to find the product in any retail store in Lagos.
Retail Scope is a one stop solution platform for every retail market and consumer research.

12. APPENDIX
Questionnaire for Beverages Consumption among Consumer in Lagos
Demographics;
Age: 15-29 | 30-49 | 50 and 69 | 70 and above
Location (Place of Residence): Lagos Mainland | Lagos Island
Disposable Income Level: Below 20k | 20k-49k | 50k-99k |100k and above
Marital Status: Single | Married | Divorced | Separated | Widowed
General Beverages;
Do you take chocolate beverages? yes | No
If Yes, mention one?.....................
Which one of the following beverages do you take most? Milo | bournvita | Ovaltine | Richoco | Peak
How many gram/kilograms do you buy for your Refreshment/Household? (please write number) ..........................
How much do you buy your favorite gram/kilogram?............................
How long does it take you to get your favorite in nearest shop? 2minutes | 10minutes | 30minutes | 1hour | More
than 1hour
Which one do you think is the Best chocolate beverage? Bournvita| Milo | Ovaltine | Richoco | Peak
Why is it the best chocolate for you? Taste | Color | Odour | Easily dissolved in water | Richness of Ingredient |
Sweetness
Would you like to switch to another brand and why? if; Quality Drops | Taste changed | price increase | Not
available in shops | Brand changed | Not sugary | Too sugary
Milo & Bournvita
Do you think Milo is better than Bournvita? Yes | No
if yes, why? ................................
What determines your choice in market? Price | Brand Name | Color | Taste | Advert | Promo | Sweetness |
Bigger Quantity
What gram/Kilogram of Bournvita or Milo do you always buy?
How much do you buy favorite (Milo/Bournvita)?
What could make you switch to another brand of chocolate beverage?
How many times have you bought your favorite this week?
Would you continue to buy the same brand next week? yes | No
Thank you, we will see you next week
Retailer Questionnaire
Store Name?
Address?
Landmark?
Location?
Phone Number?
Do you sell Chocolate Beverages? Yes | No
Which one do you have now? Milo | Peak | Bournvita | Ovaltine | Richoco | Nunu |
Which one of the brands do customers buy most? Peak | Milo | Bournvita | Ovaltine | Nunu | Richoco
What gram/kilogram do they buy most?
How much do you sell that gram/kilogram?
Does consumer complain about price? Yes | No
What quantity of the each of the product do you buy per week?
How many do you have in stock now for each product?
Which one of the brands would you buy next week and what Qty?
Till next week....