Of NBC and Sustainable Devt

Crusoe Osagie writes on the Nigeria Bottling Company and its product offering, noting that market leadership goes far beyond market share. It also focuses on sustainable growth and development

Market leadership is a difficult concept to define, particularly in a market place as vigorous as Nigeria’s, with a large number and varied kinds of operators.

Many of these operators claim leadership of the market, citing all manner of parameters, including growth rate, sales and revenue, visibility among several other factors.

Market dominance, another term for market leadership, according to experts is a measure of the strength of brands, products, services, or firms, relative to competitive offerings. There is often a geographic element to the competitive landscape. In defining market dominance, you must see to what extent a product, brand, or firm controls a product category in a given geographic area.

There are several ways to empirically measure market dominance. The most direct is market share. This is the percentage of the total market served by a firm or brand. A declining scale of market shares is common in most industries: that is, if the industry leader has say 50 per cent share, the next largest might have 25 per cent share, the next 12 per cent share, the next 6 per cent share and all remaining firms combined might have 7 per cent share.

However, market share, just like several other parameters, is not a perfect proxy of market dominance. The influences of customers, suppliers, competitors in related industries, and government regulations must be taken into account. Although there are no hard and fast rules governing the relationship between market share and market dominance, the following are general criteria:

A company, brand, product, or service that has a combined market share exceeding 60 per cent most probably has market power and market dominance.

A market share of over 35 per cent but less than 60 per cent, held by one brand, product or service, is an indicator of market strength but not necessarily dominance.

A market share of less than 35 per cent, held by one brand, product or service, is not an indicator of strength or dominance and will not raise anti-competitive concerns by government regulators.

In the Nigerian drinks and beverage market however, the issue of dominance and strength is a bit more tricky and does not rest entirely on mathematical and economic computations. Market watchers say this is why the leadership maintained by the NBC and all its brands deserve closer study and consideration.

Apart from holding nothing less than 50 per cent of the market share of the non-alcoholic drinks and beverage industry, according to rating agency, AC Nelson, NBC leads its market in other more subtle and less tangible ways.

As environmental, social, community and corporate responsibility assume increased prominence among factors considered in today’s global business space when determining true market leadership, NBC and others in its category have increasingly channelled investment towards sustainable growth and development.

After all, what good is a huge business with amazing revenues and profits in a community with its agro-ecological and climatic conditions damaged irredeemably? If the environment and societies are endangered on account of the activities of a company, then there may be no market to serve by a company that choses to grow irresponsibly.

Leadership in Variety and Innovation For NBC, leadership is a manifold concept. The company offers the widest variety of products on shelves, packs and different price points when compared to others in the industry. Making it easy for consumers and shoppers to choose and enjoy its range of product portfolio of 47 Stock Keeping Units (SKUs), unlike other industry players.

Where NBC parades different SKUs like coke, coke light, zero coke, fanta orange, fanta apple, sprite, five alive apple, orange, berry blast, schweppes, eva water among others, competitors like Sevenup Bottling Company (SBC) only parade three or four SKUs (7up, Mirinda and Pepsi cola).

Others like Lacasera, Funman, Chivita among many do not even have more than two or three, indicating that NBC clearly holds the lead in this regard in the sector.

Quality, Value over Volume NBC products arguably remain market leaders and are well loved by consumers. Over the 64 years of its corporate existence, NBC has kept the promise to continue delivering quality products and made readily available for all consumers in Nigeria. The prices offer real value for consumers’ money spent and consumer trusted quality provides a guarantee that the products have been made in the highest standards that the consumers can have confidence in and trust always.

Apart of the issue of premium pricing and perhaps the attitude of logistics operators, retailers and distributors which the NBC often argues that it has limited control over, customers will often rate NBC and its brands very high on quality and value compared to others.

Innovation, Industry and Market Leadership NBC arguably remains leader and the top of the league when it comes to product innovation, launch and meeting consumers’ needs. NBC recently launched the 5Alive Pulpy Orange, a highly refreshing fruit drink that comes with no fizz and is one-of-a-kind in the Nigerian fruit drink market. The new product gives consumers the mouth-filling sensorial experience of having a real orange and the feeling of pulp in every gulp. 5Alive Pulpy Orange is already in high demand by consumers and shoppers around Nigeria. 5Alive Pulpy Orange, a world class product that stands NBC out as an industry frontrunner and undisputed market leader in the various consumer segments it competes in.

Apart from the health benefits of this new product, the production of 5Alive Pulpy Orange demonstrates NBC’s support for local farmers in Nigeria and their passion for sustainability, as every unit of 5Alive Pulpy Orange Fruit Drink consumed adds to the value and upkeep of sustainable income to local farmers in Nigeria.

All the oranges used for production of 5Alive Pulpy Orange are sourced from farmers in Makurdi, Nigeria, guaranteeing a steady, qualitative source for production and helping to develop the local agriculture value chain.

Pedigree, History, Heritage NBC has been in existence in Nigeria for about 65 years, and the company has been satisfying the ever-growing market and customers demand, maintaining its leadership position not just in providing quality brands but also giving back to society in the area of water provision for communities which hitherto had to drink water form filthy streams.

The company also engages in serious recycling of waste materials such as water and packaging as well has arming Nigerians with technical knowledge particularly women who are trained under the sponsorship of NBC to become lady mechanics, a first in Nigeria scored by the company.

Soaring Brands NBC boasts of Coca-Cola, which is the most popular and biggest-selling soft drink in history. An icon of all times, Coca-Cola is arguably the best-known product in the world.

Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in and outside the United States taking Coca-Cola to consumers in other parts of North America and Europe and in subsequent years to other parts of the world.

In 1951, the refreshing wave of Coca-Cola arrived in Nigeria and has remained a hit with consumers across the country.

Coca-Cola is available in: 35cl and 50cl classic glass contour bottle; 33cl on-the-go Can, 50cl and 1.5L PET bottle.

The ingredients are carbonated water, sugar, Carbon-dioxide, caffeine, Phosphoric acid, caramel color and flavouring.

The company also boats of several other high quality products including Coca-Cola Light, Fanta, Sprite, Schweppes, 5Alive Pulpy Orange, Still Beverages and Eva, the wholesome table water brand.

In 1951, the refreshing wave of Coca-Cola arrived in Nigeria and has remained a hit with consumers across the country