This document provides a summary of a presentation on researching the mass markets in Nigeria. It discusses global trends, characteristics of the Nigerian consumer, how the consumer and marketing landscape have changed, and implications for marketers. The key points are: 1) Global trends like the rise of China, youth influence, and customization are affecting markets. Marketers must track unexpected shifts and enhance brand communication. 2) Most Nigerians are low-income consumers struggling daily. Understanding their rural lifestyle, collective mindset, and the housewife's role is important for targeting this segment. 3) Both consumers and how clients reach them have changed with media fragmentation and more touchpoints. Marketers

1. Researching The Mass Markets
Understanding the Nigerian consumer
ESOMAR Conference
Lagos Nigeria
22nd September 2010
An affiliate company of
Kareem Tejumola
Executive Chairman
RMS Nigeria

2. Presentation Outline
Inspiration
Global Trends
The Nigerian Consumer
So what has changed
On a parting note
What are the implications?

3. “A good head
and a good heart
are always a
formidable
combination”
Nelson Mandela

4. Inspiration
This paper attempts to provide a synopsis into the changing
consumer
It delves into the intricacies that constitute the mass market
with a view of revealing what drives then and how the
Nigerian marketing fraternity can leverage on this

5. 4
Global Trends

6. 1. China will emerge as the world‟s largest
economic power in 5 years
2. Global demographic and migration shifts
3. The Youth rule
4. On-Demand Media Consumption
5. Extensive Expansion of Customization,
Personalization and Community Experiences
Key Global Trends: For Marketers & Researchers
Source: Research World 2009

7. 1. Combine analysis with deeper
understanding of communities to spot
shifting trends
2. Identify and predict business drivers
3. Track trends and look for unexpected shifts
4. Enhanced communication and delivery by
brands to specific communities through
innovation and technology
Implications: For Marketers & Researchers
Source: Research World 2009
Bottom line is : We need to rethink our business models
or change consumer interaction with our brands

8. Media fragmentation – more
channels to chose from
New ways to communicate, to be
entertained, to shop and to do
business
An abundance of choice
What has changed: For the Consumer

9. Marketing to individuals – the
fragmentation of media makes
consumers harder to reach
More touch points to plan and
manage – new channels also mean
new ways and means of
connecting with consumers
Less control - consumer
generated media has shifted
power to the people
What has changed: For Clients

10. One who loves
the vase
loves also
what is inside
- African
Proverb

11. The Philosophy
Let us recall the “Marketing Concept”
“The business philosophy that a company's effort
should be adapted to the needs and wants of its
customers.”
The three pillars of the Marketing Concept:
I. Focus on customer needs
II. Integration of marketing activities
III.Profitability

12. So what has changed?

13.  Real GDP Growth Forecasts
 4.5% (in 2010) and 5.2% (in 2011)
 15 countries to grow > 5% in 2010
Challenges:
 Need financial aid to sustain growth path
 Poor infrastructure a major impediment –
need $93b pa for 10 yrs to fix this
Drivers:
 Urbanisation, Expanding labour force and
the rise of the middle class African
consumer
What’s Driving Africa’s growth?
Source: African Development Bank

14. The
Nigerian
Consumer

15.  Population - 151.3m
 Urban 35%
 Life Expectancy –
47 Years
 Literacy – 71%
 FDI - US $20.3bn
Nigeria – Overview
Source: The African Report

16. Socio-Economic Pyramid
• Over three quarters of Nigeria‟s population is in Socio Economic Class DE.
• However the urban picture is more encouraging…but still disheartening.
86%
9%
4%
1%
70%
17%
8%
5%
C2
C1
DE
AB
C2
C1
DE
AB
• Meaning about 120,000,000 people in Nigeria are low income consumers
who are struggling daily to make ends meet.
• This is our “market”…and we must understand it better.
National Picture Urban Picture

17. • The majority of these consumers are self
employed:
– They earn their income daily (without certainty)
– Earn N200 per day on average
– Multiple income earners among family members
– (30% claimed have 2 members earning
income)
• Significant proportion has reached secondary
school
– linear and simple thought processes
– abstract logic goes over their heads
The DE consumer …
Sources of income and literacy

18. • The majority of Nigerians are in the rural areas: 60 to
65%
– 51% of Nigerians do not have daily access to TV
– Only 50% of Nigerian have NEPA
• Living in a city remains aspirational for rural folk
• However cities are fraught with problems and stress
– High rent
– Pollution & Traffic (Hold Up)
– More time on commuting (less for family & friends)
The DE consumer …
Predominantly Rural……

19. “Collectivist” as Opposed to Individualist
 Adhere to prevailing social norms
 Enjoy social gatherings
 Spend free time chatting and gossiping with neighbours
 Suspicious of people from outside the community
 Participate (mostly as spectators) in mass sports
 Follow the advice of opinion leaders
 Very religious – and respect the opinion of views of
religious leaders
 Strong belief in “fate” , “luck” and “superstition”
The DE consumer …
Locus of Control……

20. Family and Housewife’s Role
 Housewives manage household & decide on
needs
 Males dominate, largely patriarchal society
 Yet, housewife establishes her territory
 Power is unequally distributed
 Family is at the core; self is less important
 Children at the centre of the housewife‟s life
 Housewife is frustrated in her own ambitions &
craves an identity of her own outside the home
 Children are the future (and the source of a
pension)
The DE consumer …
Power Distance……

21. Socially acceptable aspirations for the Housewife:
• When
– husband is considerate, involved, appreciative, helpful, spends time with
kids.
– she can stand up to the mother in law without being disrespectful
– she earns income of her own
– the children excel in their studies
– the son sends money home from the city to village
– she exercises her own choice in brands, occasionally allowing herself a
minor indulgence
– a prestigious consumer durable is brought home
• The “Naughty” Side of the Housewife:
– enjoys sitcoms, local and foreign that depict scandalous and often
adulterous lifestyles
– secretly harbours a desire to dress “appealingly”
The DE consumer …
The Housewife’s ambitions……

22. • Attitudes towards value and size:
– Buy „penny packs‟ frequently – high shopper traffic
– Main staples are bought at the weekly markets in bulk
when achievable
– More concerned about volume than „quality‟
– Will search for acceptable quality at reasonable
prices
• Attitudes Towards the trade
– Build personal acquaintance with neighbourhood
retailer
– Frequently get credit from retailer
– Take advice from retailer
– Often feel threatened by large and formal shops
The DE consumer …
Shopping Behaviour

23. • Word of mouth very important and
credible
• Buy products that are perceived to be
popular
• Strong creatures of habit (avoid risk)
• High awareness of brands - but low
propensity to actually purchase premium
brands
• influenced by popular idols and role
models
The DE consumer …
Attitudes towards brand choice

24. DE: Household Expenditure
 Growth in Noodles and Mobile Vouchers
Source: RMS Nigerbus Omnibus
Total Oct 2008 Feb 2009 Oct 2009 Feb 2010 June 2010
Rice 95 94 92 92 94
Bread 88 87 86 88 90
Toothpaste 86 85 93 92 93
Sugar 80 83 80 83 84
Detergent 79 81 80 77 80
Biscuit 70 65 67 72 74
Powdered Milk 70 70 69 67 70
Tomato Paste 62 56 51 61 63
Mobile phones 60 56 69 65 67
Noodles 50 58 58 55 59

25. •
2007-2009 Trend
Consumer Confidence Index
130
146
171
157
138
148 145
163161 164
169
184
190 193 194
201
213
160
148
159
150
158
100
120
140
160
180
200
220
240
Feb '07 Apr '07 Jun' 07 Aug '07 Jun '08 Aug '08 Dec'08 Feb '09 Jun-09 Oct-09 Feb-10 Jun-10
Consumer Confidence Index Consumer Price Index
15
20
15 15 15
20
15 15
20
15
25
5 5 5 5 5 5 5
7.5
5
7.5 7.5 7.5
15
0
5
10
15
20
25
30
Feb '07 Apr '07 Jun '07 Aug'07 Jun '08 Aug '08 Dec '08 Feb'09 Jun-09 Oct-09 Feb-10 Jun-10
Household income ('000) Personal Income ('000)
Source: RMS Nigerbus Omnibus

26. • Decline in collectivism
– shift to nuclear families
– influence of western lifestyles
• Women are getting into the mainstream
– enhanced responsibility as mother, wife & homemaker
– newly enhanced status as wage earner
• TV has become a companion, and is leading to the bottom-
of-the-pyramid becoming more sophisticated
The DE consumer …
However things are changing….

27. What are the implications?

28. “When the
music changes,
so does the
dance”
African Proverb

29. Implications for strategy
Value is a strong motivator
Value can be expressed in several ways:
 Multiple uses from the same product
 Multiple benefits from the same product
 Aggressively advertise small packs with low unit packs
 Why pay more? Price can drive behavioural loyalty.
 The bottom of the pyramid consumer is sensitive about being
portrayed as poor

30. Implications for strategy
Appropriate use of opinion leaders will bring wonders!
 The use of credible opinion leaders: traditional, religious
and entertainment will build trust in the brands.
 Endorsement activities play a strong role
 Public relations activities which feature such opinion leaders
are more acceptable.
 Brand activations and launch activities which include opinion
leaders are likely to be more effective

31. Implications for strategy
Escapism…give them a joyride!
 Allow the consumers to escape from the hard reality through
brands and communication activities:
 Song and dance
 Use fantasy
 Use humour
 caricatures if done well are enjoyed hugely
 simple uncomplicated humour works best
 avoid sarcasm or excessive subtlety
 exploit differences in dialects, accents, and mannerisms across different
regions of the country (particularly on radio) (But avoid offending consumers
!)

32. Implications for strategy
Challenge the norms….
Give the housewife another perspective
 Let the housewife be herself (an individual)
 Let her escape
 Let her be appreciated
 Let her lose her inhibitions

33. Implications for strategy
Leapfrogging…it is the only chance
 Do not assume that because consumers do not have access
to some basic commodities they do not desire to access
luxurious products and brands:
 Products that may have taken long to take off in other markets
may take off quickly as consumers try shortcuts to success
 Low income consumers may be motivated by those products
which add value to their life rather than those that restore
value...hence the participation in lottery promotions and related
activities.

34. Implications for strategy
Be realistic – don’t overstretch them
Depict characters & families that are aspirational yet real
 use characters that are aspirational but still within the grasp of
the low income consumer
 use characters that are real and loveable, with their minor
weaknesses, rather than “model” members of society (plastic
depictions reduce empathy)
 characters must not be too challenging or threatening
 avoid being too freaky or westernised

35. Implications for strategy
Don’t forget the rural folks!
 Develop special communication for rural consumers who are
not reached by other mass media
 keep the communication very simple indeed
 use longer commercials if necessary
 add a social message in a manner that will earn goodwill
 use local dialects/ pidgin
 Use visual and strong non verbal cues
 use clever & catchy slogans & jingles
 adapt dialogues from popular films / sitcoms

36. Implications for strategy
Remember the importance of popularity and the “herd mentality”
 Portray masses and many people in your communication
 Use popular mass sports and activities for sponsorships and
sales promotions.

37. In conclusion
Why not the consumer?
 In the Words of Gordon and Valentine (2000):
“…something is not right with the way the word „consumer‟ is
used nowadays. This word must surely be one of the most
frequently used in the lexicon of advertising, marketing and
research language. Yet it has not been subject to the huge
attention or to the rigour of analysis as has the word „brand‟...”
 There is need to do more to understand our most important stakeholder…the
CONSUMER.

38. If You want to go
quickly,
go alone.
If you want to go
far,
go together.”
- African Proverb