By Merit Ibe, [email protected]
TheWhile Nigeria’s business environment is not typical, there are still concerns. The situation is getting worse due to extraneous factors such as development in Eastern Europe and increasing fuel prices.
However, the reality is that many small-scale businesses, still struggling to recover from the COVID-19-fuelled downturn, may be considering closing down. This is despite the fact that MSMEs (micro, small and medium enterprises) are critical to the Nigerian economy.
Alfred Olajide, Coca-Cola Nigeria’s Managing Director, is optimistic that the brand can continue to find opportunities to make products that consumers like, more affordable, despite the challenging macro-economic and operating environment.
Pandemic
Ambassador Mariam Kala, Nigeria’s Minister for Industry, Trade and Investment, said that SMEs contribute more than 50% to Nigeria’s Gross Domestic Products (GDP) and account for over 80% of Nigerian employment.
In the wake of the COVID-19 pandemic in Nigeria, Nigeria’s macro-economic environment appears to be on a recovery path.
The devastating effects of the pandemics disruption on families and small businesses, artisans and other vulnerable Nigerians were severe, with many losing their source of income or livelihood.
Businesses have had to adapt to the changing realities of COVID-19 in order to survive.
Coca-Cola Nigeria Limited (the country’s largest total beverage company) is not immune to the economic challenges presented by the current economic climate. In fact, the past two years have proven to be a challenge for all.
Food and beverage is one of the oldest industries in the world that has seen changes in product innovation and offerings. Companies are creating new flavours to address the market challenges. This is why the Nigerian marketplace is bursting with new flavours.
Expansion
The country’s poor economic performance over the past 24 hours can be attributed several factors that left it to make important decisions. This meant that companies had to think hard and make difficult business choices.
The beverage leader is looking for ways to delight its customers. This includes expanding its supply and capacity to meet consumer demand.
Production costs
The average citizen’s disposable income has been declining. This is compounded in part by stability concerns and foreign exchange scarcity, which has led to some businesses closing their doors or scaling back their activities. Inflation means higher costs of production and living, which is beyond our control. However, we were able to foresee these changes and created more value-based products. We have created smaller packaging for our product variations over the years to appeal to consumers with lower purchasing powers.
The company has seen the introduction of new brands with aggressive introductory strategies that disrupt the market and present many options for Nigerians over the past five to six year. These strategies include new product launches to cater for consumers’ evolving tastes, such as Schweppes Ginger, Zobo, 5Alive Pulpy Lemon, and Mango. Also, product reformations to provide superior taste for consumers, such as Coca-Cola Zero Sugar. This coke is regarded as the best ever, with the challenge to people to try it first, and not just accept the slogan.
Consumers want brands to understand their struggles and to support them. They want brands that care about their lives and that truly want to make a difference. This is what we have been representing and will continue doing.
I believe the company has become even more successful through its constant innovation, while also remaining true to its core value of customer service, which allows it to remain competitive in the market and to be a leader.
Operating environment, macro-economic
The brand will continue looking for ways to make products that consumers love more affordable, despite the difficult macroeconomic environment and operating environment. It will also support the events and activities its consumers love and launch new products that appeal to their tastes.
A greater advocacy and engagement drive will be undertaken to create a fair regulatory framework that takes into account the disruptive realities of the operating environments for the benefit of consumers.
Coca-Cola’s story in Nigeria is one of hard work, innovation, and steadfastness. It is a story that is full of inevitability, which is why Coca-Cola is known for its ubiquity, and ability to be available up until the end.
Employment
In its Q4 2021 GDP Report, released in February by the National Bureau of Statistics, the NBS revealed that the GDP grew 3.4 per cent, the strongest growth since 2014. However, inflation has continued to rise in the double digits, with commodity prices skyrocketing. Despite the number of graduates that are being produced each year across all higher institutions in the nation, unemployment continues its rise.
The impact of Coca-Cola’s brand on Nigeria can be seen from the employment of thousands of Nigerians, through creating shared opportunities in different communities through various sustainability programs that have created income streams for millions of Nigerians.
Sport
Coca-Cola has been a pioneer in corporate support for Nigerian football. This is evident in the large amount of funds that were committed to Copa-Coca-Cola’s Under-15 Secondary School National Football Competition. These funds resulted in scholarships for the winning schools and sponsorship for the best players to international soccer camps.
Coca-cola believes that football can be a platform that unites people from all over the globe. 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 the few Coke campaigns that can help to foster optimism and unity while making a positive impact in the communities we serve.
