West African Consumer Products Marketing and Distribution Company
NINU Africa is a Marketing and Distribution firm based in Ghana that helps established West- African processed foods brands expand from their country of origin West Africa to all countries across West Africa.
Economic Community of West African States (ECOWAS) is a regional economic union in west Africa is a free movement and trade zone that consists of 15 member countries and was established in 1975.
This free trade zone is mostly utilized for the movement of raw materials and imported manufactured goods. As there is a general low level of manufactured goods made in Africa. It is not uncommon that a country could be a major exporter for a raw material and will still pay a premium for the respective imported refined/ manufactured goods.
Local businesses across Africa would love to reach full market potential but struggle with ease of doing business in their own country so they don’t want the hassle and will prefer to outsource marketing efforts.
NINU Africa has gained great success in West Africa as it make more affordable and adapted African brands readily available to expensive imported brands.
Image 1. Schematic Diagram Showing the Operational Structure of NINU Africa
Once NINU Africa familiarizes itself with the product and the core values of the brand,
A short list of potential countries are developed using NINU’s proven and patented framework. NINU’s patented framework is based on algorithms that essentially matches the core values of the brand with a countries’ values based on purchasing decisions.
The client will then narrow the developed shortlist down to a the most desired country(s) for expansion. NINU will then determine the market potential for the product through conducting extensive market research in the country, develops and executes marketing strategy based on the research findings.
NINU provides extra services such as rebranding the product if necessary, and distribution services for the product across the desired country.
It Is advisable that NINU provides its existing West African clients with marketing and distribution services in countries outside West Africa.
With the African Continental Free Trade Agreement (AfCFTA) gaining momentum with 44 out of 54 countries signed so far, there is an opportunity for NINU Africa to expand its services across Africa once the agreement is fully established in January 2020.
The top 3 countries with the highest implementation potential will be Angola, Kenya and Namibia.
Country Angola Kenya Namibia
Population 29 million 47 million 2.5million
Urban Population 45.6% 26.5% 48.6%
GDP Per Capita $ 6454 $ 3,155 $ 10,624
Official Language(s) Portuguese English + Kiswahili English
Literacy 71.1% 78% 81.9%
Marketing Channels TV, Radio and Print media. TV, Mobile (internet) and Print media. Mobile (internet)
Dimensions of behaviour Multi-active Multi-active Multi-active
Values Collectivism Collectivism Collectivism
Preferences / Purchasing Factors Brand loyalty and Affordaility Affordability Brand loyalty, affordability, and availability
Religion 79% Christianity 83% Christianity 90% Christianity
Table 1. Country Overviews
Sources: CIA World Factbook, Lewis behaviour model and Hofstede’s model.
These countries, as well as Ghana are currently signed in the AfCFTA.
They are not only promising because of their relatively high GDP compared to the rest of the continent, but because of the increasing urbanisation and willingness of the large youth population to try new products.
Based on the Lewis behaviour model, these 3 countries as well as the rest of West Africa are on the higher end of the multi-active scale meaning that they will respond better to emotionally driven advertisements, impulsive so they are willing to try new products, they are people oriented and will respond well to celebrities and influencers.
According to Hofstede’s model, Angolans, Kenyan’s and Namibian’s are a collectivist culture and are family oriented so this can be used as a key driving factor for customer engagement.
Marketing strategy and implementation based on important factors like price, distribution and the emotional factors like family will lead to success in these countries.
Angola has a population of approximately 29 Million people and approximately 50% of the Angolan household monthly spending is on food and grocery shopping
which is attractive for NINU’s clients that are looking to launch new food products. It is important to consider that the retail channels for distribution in Angola is varied as 45% of Angolan’s shop at cantinas/general stores, while 40% shop at supermarkets and mini markets.
The best customer segment for entering the Angolan market will be millennials living in Luanda and Huambo are major cities as 45.6% urban population are based in these cities.
Marketing channels that NINU Africa can utilize are TV and Radio as virtually every home has a colour TV and radio.
There is a high print media penetration in Angola do you think the fact that 71.1% of Angolans are literate however it is important to note that the official language in Angola is Portuguese so marketing should be done accordingly.
Internet penetration is not up to standard yet thought Internet and social media is off-limits for now
Kenya has a population of approximately 47 million people approximately 30% of the monthly household expenditure in Kenya is on consumer packaged goods. And this will be attractive to NINU’s clients.
The most ideal customer segment for entering the Kenyan market will be millennials living in Nairobi and Mombasa as they are more open to try new products and 56.5% of the urban population I’m based in these cities.
66 percent of Kenyan consumers are driven more by affordability. Considering the fact that the affordability is an important factor Kenyan consumers will tend to shop across both traditional and modern channels in order to get the best prices.
Hence distribution must be strategic and mean his client can consider a small packages in order to provide cheaper prices.
Popular media are radio (95 percent),TV (92 percent), mobiles (85 percent)
and newspapers (61 percent of survey respondents). Internet access, at 39 percent, is higher than other African countries studied. Swahili and English are the official languages so it is important that NINU conduct market research and branding to including Swahilibsubtitles.
Although Namibia has a population of only 2.5 million people, it has one of the highest GDP per capita in Africa (Table 1) and 30% of the monthly household expenditure is on consumer packaged goods. This is very attractive for NINU’s clients as there is a larger middle-class population with my disposable income.
Distribution goods will be easier compared to other African counties as 90% of Namibians identify supermarkets are their most important channel for grocery purchases.
TV (86%) and radio (78%) are widely popular and Namibia has higher penetration of newspaper (86%), magazines (60%) and Internet (51%) so this provides nearly as clients away range of marketing channels considering that the literacy rate is 81.9%.
Finally, Although outside perspective gives innovative and analytical insights into a culture
it is important for NINU to ensure that the internal diversity within it’s team matches the diversity external diversity in terms of languages and Nationalities. Because NINU’s success Will be dependent on successfully launching its clients products in these new markets.