COLA WAR IN NIGERIA (DAY 15)

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I got a news yesterday about another entrant into the Nigerian market by name: De Cool Cola and the report of their activities confirmed the segmentation strategy I discussed. I will reinforce that discussion with examples today.

De Cool Cola is an indigenous company but engaged in contract manufacturing with La Casera which is a strategy to reduce their cost of production. Contract Manufacturing (CM) is the production of goods by one firm, under the label or brand of another firm.

Contract Manufacturing is a form of outsourcing. It enables the firm who owns the brand to maximize profits and it helps them to save time and money thereby making it easier to manage your budget. It reduces expenses, lead time and overall costs. With this strategy, Cool Cola has an edge.

Cool Cola is being produced in Lagos but they are not visible. Reports have it that they’re very strong in the North Central part of Nigeria. They must have discovered that Lagos is a difficult market to penetrate based on the strength of the big brands and Bigi Cola.

From the records, Bigi Cola dominates the Lagos market and that means they have decided to focus on the geographical segment of Lagos and they are cracking the market and succeeding at it. Similarly, Cool Cola has decided to focus on the North Central part of Nigeria.

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RC Cola is focusing on the North Central as well. Geographical segmentation is an effective approach for small businesses with limited budget & one should not be surprised that the new entrants are making use of that strategy. Bigi Cola is cracking Lagos while RC Cola and Cool Cola are making inroads into the North Central. Segmentation also allows you to implement your strategies with ease as you are not spreading your limited resources over a large expanse of space. It also helps to deal with competition more effectively.

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The feedback I got about Cool Cola and RC Cola activities made me reemphasize the segmentation strategy today. The is getting fiercer with the number of active participants now at six: Coca-cola, Pepsi, Big Cola, Bigi Cola, RC Cola and now Cool Cola.

Thank you for staying tuned to the series. I will like to wish my friends happy Eid al-Fitr as we mark the end of Ramadan.

Read:  COLA WAR IN NIGERIA (DAY 10)

May our prayers be answered and may prosperity abound within our walls. We will continue tomorrow.

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

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