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By Merit Ibe, [email protected]
The peculiarities of business operating environment in Nigeria are a common knowledge but concerns are mounting that the bad situation is assuming a worst turning, owing to extraneous factors like development in Eastern Europe,now mounting pressure on the prices of fuel.
But the harsh reality is that the few small-scale businesses trying to stay afloat, having not fully recovered from the consequences of the COVID-19-fuelled recession, may be contemplating winding down, unless something urgent was done, considering the critical contributions of the micro, small, and medium enterprises (MSMEs) sector, to the Nigerian economy.
The Managing Director, Coca-Cola Nigeria, Alfred Olajide, is optimistic that the brand will continue to identify opportunities to make products that consumers love, more affordable despite the difficult macro-economic and operating environment.
Pandemic
According to Nigeria’s Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, SMEs contribute over 50 percent to Nigeria’s Gross Domestic Product (GDP) and also account for over 80 percent of employment in the country.
Nigeria’s macro-economic ecosystem, in the aftermath of the COVID-19 pandemic, appears to be on recovery path.
The effect of the pandemic’s disruption on families, small businesses, artisans and other vulnerable Nigerians was dire, with many losing their sources of income or livelihood.
With the effect of COVID-19, with its economic and socio-political developments, disrupting regular ways of life, businesses have had to adapt their strategies to fast-changing realities in the bid to stay afloat.
Coca-Cola Nigeria Limited, the leading total beverage company in the country, is not immune to the limitations posed by the hard-hit economic situation, as the last two years has proven a challenge for all.
The food and beverages industry is one of the more mature industries across the globe that has undergone changes regarding product innovations and offerings. To face the growing market challenges, companies are bringing new flavours onboard, keeping in mind the health and wellness concerns of consumers, which is why the Nigerian market is bursting with different flavours introduced by new entrants.
Expansion
The country’s poor economic performance, over the past 24 months, can be attributed to several factors which left it to make certain important decisions, which meant companies had to think on their feet and make difficult business decisions.
Part of the decisions by the beverage leader in the quest for opportunities to delight its consumers include the expansion of its supply and capacity in the bid to meet the teeming demand by consumers, while also reinforcing all its brands with consumer-focused activities like Coke with Meals; Fanta with Snacks; Sprite with anything Spicy; Juices and water for nutrition and hydration and its premium brand, Schweppes for socialising occasions.
Cost of production
The average citizen’s disposable income has been worsening. This is compounded by foreign exchange scarcity and stability concerns which have seen some businesses either close shop or scale-down on activities. With inflation comes increased cost of production and living and this is not within our control. However, with our foresight, we anticipated these developments and created more value-based SKUs. Over the years, we have developed smaller packaging for our product variants to cater to consumers with lower purchasing power
Over the past five to six years, the company has seen to the introduction of brands with aggressive introductory strategies disrupting the market and presenting numerous options for Nigerians. Some of these strategies include new product launches to cater to the evolving tastes of consumers such as Schweppes Ginger and Zobo, 5 Alive Pulpy Lemon and Mango and product reformations to provide superior taste to consumers like Coca-Cola Zero Sugar, being touted as the best coke ever with a challenge for people to try it first and not just take the slogan at face value.
Consumers want brands that support them and their struggles; brands that understand them; brands that genuinely want to make a difference in their lives, and this is what we have always represented and will continue to do.
I believe the development has made the company even better, as it constantly reinvents while staying true to its core value of customer satisfaction, to remain competitive and lead the market.
Macro-economic, operating environment
The brand will continue to identify opportunities to make products that consumers love, more affordable despite the difficult macro-economic and operating environment, support the events and activities their consumers love and launch innovative products that appeal to the tastes of its consumers.
There will also be a heightened advocacy and engagement drive in shaping fair regulatory framework, taking into consideration the disruptive realities of the operating environment for the ultimate benefit of our consumers.
Coca-Cola’s story in Nigeria, is typified by hard work, innovation and steadfastness, as it is a story of inevitability which is why Coca-Cola is famed for its ubiquity and pedigree of being available up to the last mile.
Employment
Though the National Bureau of Statistics (NBS) revealed in its Q4, 2021 GDP report released in February, that the GDP grew 3.4 percent, the strongest since 2014, headline inflation has continued to rally within the double digits’ region, with the prices of commodities skyrocketing. Unemployment continues to rise despite the number of graduates being churned out yearly across all the higher institutions in the country.
The impact of the Coca-Cola brand on Nigeria is evident for all to see – from employing thousands of Nigerians, to creating shared opportunities in various communities through various sustainability initiatives that have empowered and created sources of income to millions of Nigerians.
Sport
Coca-Cola has always been at the forefront of corporate support for the development of football in Nigeria. This is evidenced by the huge funds committed to Copa-Coca-Cola Under-15 Secondary School National Football Competition, which culminated into scholarships for players of winning schools as well as sponsoring the best players to international soccer camps.
Coca-cola believes that football is a platform that unites people all over the world. Football is particularly one that is loved by Nigerian consumers; that is why the arrival of the FIFA World Cup™ Trophy Tour will be an opportunity to stir emotions for the coming FIFA World Cup™ Competition and also relive the past World Cup™ moments.
Courtesy of Coca-Cola, Football lovers in Nigeria will have the opportunity of close contact with the authentic iconic FIFA World Cup™, if the Super Eagles qualify. This is one of those ‘only Coke can do’ campaigns to help foster optimism and unity, while making a positive difference in the communities we serve.
