Building Global Brands
Raheem Akingbolu takes a look at the activities of local companies that have earned global respect and acceptability
More than ever before, brand owners in Nigeria are keen about extending the frontiers of their brands beyond this shore. Some brand analysts have argued that if Nigeria entertainment industry and its products can appeal to the world, then any locally built brand can equally do so. According to a brand management expert, Dr. Jossy Nkwocha, locally built brands can only make it to the global arena, when they are first accepted locally. Nkwocha, who recently presented his new book; ‘Reputation Management and Branding’, is of the opinion that it is when a local brand is consumed locally that the world will accept it.
He said: “There is no short cut to success; brand building processes are the same everywhere. Check it, one thing many successful businesses have in common is the fact that their promoters have devoted time, effort and financial investment towards building them. In Nigeria, we have brands that are doing well because of the commitment of their owners. But beyond this, it takes two to tango –consumers, regulators, trade partners and other stakeholders must be committed to their local brands before those in other climes can show interest. This is exactly why our entertainment industry is accepted globally because we also accept them locally.”
Dangote: Lessons in conglomeration Clearly beyond Nigeria, the Dangote brand has been recognised as one of the best things that ever came out of Africa. The Dangote Group is one of the most diversified business conglomerates in Africa with a hard-earned reputation for excellent business practices and products’ quality with its operational headquarters in the bustling metropolis of Lagos, Nigeria in West Africa.
The Group’s activities encompass about 10 segments of the market, including: cement manufacturing and importation, sugar manufacturing and refining, real estate, salt refining, flour and semolina milling. The group also involves in logistics in the area of port management and haulages as well as foundation.
Since inception, the group has experienced phenomenal growth on account of quality of its goods and services, its focus on cost leadership and efficiency of its human capital. Today, Dangote Group is a multi-billion Naira company poised to reach new heights, in every endeavour competing with itself to better the past.
The group’s core business focus is to provide local, value added products and services that meet the ‘basic needs’ of the populace. Through the construction and operation of large scale manufacturing facilities in Nigeria and across Africa, the Group is focused on building local manufacturing capacity to generate employment and provide goods for the people
Aliko Dangote is the founder of the Dangote Group, which he currently presides over as President and Chief Executive. In 2013, Dangote was appointed to the steering committee of the United Nations Secretary-General’s Global Education First Initiative (GEFI). The initiative is a forum connecting businesses to make a lasting impact on the lives of children and youth through education. He is also a founding member of the Gordon Brown-led Global Business Coalition for Education as a representative from business and he is one of the Board of Directors of the Corporate Council on Africa, an organisation that seeks to promote business and investment between the United States and the nations of Africa. In addition, he is collaborating with the Bill and Melinda Gates Foundation to fight polio.
Globacom: A pacesetter brand Since 2003, when Globacom berthed in Nigerian market, it has continued to spring surprises. The first surprise was the determination by the founder of the telecommunication brand to enter the boxing ring with multinationals. Another was the early assurance by the promoters of the brand that subscribers on the network would enjoy per seconds billing, which early operators said was impossible as at then. Of course, not a few people discarded the promise as a mere Trojan gift to lure in patrons on the new networks. At the end, per seconds billing was not only actualised, it became a strong tool with which Glo changed the game. For the first time it became possible for GSM users to pay for the only actual time spent on the phone.
However, the greatest surprise lies in its survival despite the odds and early comer advantage the competition had over it. Today, the story is no more about how it weathered the storm but how the brand has continued to put competing brands on their toes.
When the first players rolled out the first batch of lines in 2001, the initial battle they fought, albeit acrimoniously, was that for the soul of the subscriber. From any angle one chooses to look at the result of this, they succeeded, though relatively depending on who was spending what.
But the game changed in 2003 when Globacom threw caution into the winds and challenged the existing operators. By then, MTN was having a smooth sail because of the boardroom politics that was affecting the fortune of Econet negatively.
Aside gotten itself well accepted in the market and extended to other markets, Globacom profile may get boosted in few months to come its promoters succeed in acquiring 9mobile. The battle for the soul of 9mobile is currently on with 10 firms jostling for it. Globacom was established by Mike Adenuga, one of the richest black men and a patriotic Nigerian.
Vigeo: Championing global best practice Vigeo Holdings is an indigenous Nigerian company founded by Mr. Victor Gbolade Osibodu, one of Nigeria’s foremost entrepreneurs in May 1985. The company was initially founded to provide corporate promotion and marketing services. However, over the years, it has evolved into a multi business holding company with a focus on infrastructure, all through the vision/ leadership of its Chairman. Through all this, Vigeo’s pay off line, which Osibodu came up with at its founding stage still rings true: “sometimes, somehow, somewhere….. you’ll need us.”
Vigeo’s first and initial phase was its foray into marketing and corporate communications. One can even say Vigeo pioneered the corporate gifts market in Nigeria, providing corporate gifts to a large variety of blue chip companies in Nigeria, holding true to its then vision “to be the leading provider of corporate promotion and marketing company”.
In its second phase, though still a corporate promotion and marketing company, Vigeo branched out by establishing a culture of early stage/ venture capital investments into a number of small and growing companies in the Nigerian market. The third phase of Vigeo’s evolution commenced 11 years after its incorporation. Vigeo focused on acquisition of technical competences and strategic alliances that would prove to be essential in the future evolution of the business. During this phase, Vigeo made its entrance into Nigeria Oil & Gas industry by providing amongst others, training and provision of personal protective equipment. To reflect a new corporate focus, Vigeo’s vision was changed to “To be a leading global company relentlessly committed to providing total support services, professionally for the ultimate satisfaction of our stakeholders’. It is this initial foray into oil and gas services that created the framework under which Vigeo would go into the shipping industry in 2003 and subsequently become an indigenous Nigerian vessel owner. It is well worth mentioning that this was years prior to the federal government’s push for local content in the oil and gas industry. Vigeo Shipping is still providing its clients with renowned service in this industry today. From an oil and gas, marketing and oil and gas company with principle investments, Osibodu saw the next opportunity years before it became apparent to the public: electricity.
While in a number of cases businesses are forced to diversify into new industries, Vigeo’s diversification was driven by the vision of its chairman to position the business to take advantage of emerging opportunities.
Understanding that businesses should exist for purposes other than profit, Vigeo crafted a higher purpose goal for itself. This goal serves as the bedrock of its corporate social responsibility. As part of the higher purpose goal of Vigeo, it has along with its chairman been a major benefactor to the Special Olympics movement in Nigeria amongst others.
First Bank: First in name, first in the market Like all breakaway brands, First Bank Nigeria has consistently formed an emotional connection with its audience. The brand owners understand the role that brand plays in the lives of consumers and makes sure First Bank’s attributes match up with the target banking public. For over 100 years, its promoters, like handlers of other global brands like Coca Cola and Pepsi, think of new ways to keep the brand top-of-the brand.
Within and outside the financial sector, the name First Bank has become synonymous with success. This obviously explains why brand management experts now make reference to brand FirstBank at different fora as case study for custodians of smaller companies, who are looking curiously into a brighter future
Few months ago, First Bank of Nigeria Limited was, again, named the most valuable banking brand in Nigeria in The Top 500 Banking Brands of The Banker magazine of the Financial Times and Brand Finance, London, United Kingdom for the sixth consecutive time. In many quarters, observers see the feat as an evidence of the global status of the brand. In a country, where the mortality rate of businesses is high, First Bank has existed for over 10 decades.