Cola War in Nigeria (Day 1)

Must Read

…WHEN THE ‘YOUNG’ MAN FINALLY RETIRES

I have read and heard about many cases of real men retiring strong and something happens along the line...

OBA AKIOLU ENDORSES NEW GOLDBERG AS JAMODU LEADS BRAND TEAM TO PALACE

In a rare display of “Omoluabi” – the Goldberg campaign theme, the  Chairman of Nigeria Breweries Plc, Chief Kola Jamodu...

Yusuf Molumo wins MTN Nigeria Kiddies Hackathon

A 14-year-old, Yusuf Molumo has emerged as the winner of the 2019 MTN mPulse Kiddies Hackathon for creating QuizMe, an...
- Advertisement -
- Advertisement -

I will start a daily series about the in Nigeria today and it will highlight the events in the last few years especially the marketing activities that took place during the recession and how each brand has fared in responding to changing marketing environment.

There has been a battle between the leading Cola brands in Nigeria dating some decades back. The war has always been predicated on price, volume and campaign activities. These are indices that can be noticed easily by the consumers however, there are other metrics.

Other metrics used in the course of the war which is latent include trade incentives, trade margins and other freebies which are given to the trade partners. I may not be wrong to say that Pepsi was the first to introduce the 50cl bottle (volume war).

The Pepsi 50cl bottle was selling at the same price that Coca-cola was selling their 35cl bottle (price war) and in the course of time, Coca-cola reacted with some aggressive advertisement and promotions (campaign war). This continued over time.

A time came when the trade margin of Coca-cola products made the hawkers who sell in traffic in Lagos, Nigeria to drop it for a more preferred Pepsi and its other flavours. This obviously would have led Coca-cola to lose some volume because of the high sales in traffic.

Read:  Ecobank Launches Fintech Challenge Competition for African Start-Ups

There is a lot of volumes that go into traffic sales in Lagos which doubles as the economic capital of West Africa. The continued with each brand having its areas of strengths and competitive advantage and taking leverage of same by dominating sales in such areas.

In 2015, a new entrant joined the in Nigeria. Big Cola, a brand with a Peruvian root came into the market with a penetration strategy using price. They upstaged the market by introducing a 65cl bottle (volume war) at a reduced price of 90 NGN (price war).

Read:  Airtel Commissions ICT Centre in Imodi-Ijebu, Ogun State

This volume and price war was accompanied by a lot of BTL materials. This really rattled the market leaders and Pepsi was the first to react with “long throat” (a 60cl bottle). They also embarked on media campaign with ATL promotions leveraging on celebrity adverts.

It took some time before Coca-cola reacted but they eventually did. They also reacted with a 60cl bottle. However, they have been seriously impacted before they executed their decision. Meanwhile, with the response of Pepsi and Coca-cola, prices ranged between 100 NGN and 120 NGN while Big Cola was selling their 65cl for 90 NGN with its price printed on the product. The market was silent for a while on actions and reactions until a year later when another entrant made its debut into the Nigerian market.

Read:  Cola War in Nigeria (Day 3)

Tomorrow, we look at the new entrant & other events.

Written by: 

Oluwole Dada, (Regional Sales Manager at Nestle Nig. Plc; Member, Chartered Institute of Marketing (UK))

For more insightful conversations, follow Oluwole Dada on Twitter  @oluwole_dada

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

Latest News

Introducing The All-New Land Rover Defender (Photos)

Few motor cars fuel the sense of adventure quite like the Defender. Since its inception in 1948 as the...

OBA AKIOLU ENDORSES NEW GOLDBERG AS JAMODU LEADS BRAND TEAM TO PALACE

In a rare display of “Omoluabi” – the Goldberg campaign theme, the  Chairman of Nigeria Breweries Plc, Chief Kola Jamodu and accompanied by the Marketing...

DSTV EXCITES CUSTOMERS WITH BOLT AND LIFEMATE FURNITURE DEAL

DStv customers will continue to enjoy exciting offers on DStv Thanks this September. The DStv Thanks offer is a customer rewards programme designed to...

National Film & Video Censors Board (NFVCB) visits NTA Osogbo

The National Film & Video Censors Board (NFVCB) Osogbo Centre Led by Mr Olusegun Francis, Head of Centre paid a courtesy visit to NTA...

…WHEN THE ‘YOUNG’ MAN FINALLY RETIRES

I have read and heard about many cases of real men retiring strong and something happens along the line that makes me learn so...

More Articles Like This