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First Quarter - Low Businesses, Big Investments(AllAfrica Via Acquire Media NewsEdge) Despite the slow pace of business activities in the first quarter, huge investments by multinationals companies and the rise in Nigeria's Gross Domestic Product (GDP) show positive prospect for marketing communication practitioners in the months ahead. Raheem Akingbolu reports Marketing practitioners across various sectoral bodies entered this year with great expectation. With the reform in the advertising industry taking shape and the 2015 election gathering momentum, stakeholders in the industry foresee a robust business opportunity for practitioners in the coming months. Public Relations practitioners, outdoor agencies and experiential marketers, all prepared for juicy accounts. With the ad reform crossing the first hurdle of popular acceptability, its proponents believed it would advance the fortune of the industry. APCON Chairman, Lolu Akinwumi, told THISDAY early this year that the year would be better in terms of performance as agencies will take advantage of the reform. He also pointed out that the sector might witness merger of one or two agencies. On how public sector would influence activities in the industry in 2014, Akinwumi said government policies would encourage spending and that the preparation for 2015 will attract additional spending. Prospects But nearly four months into the year, nothing much has changed in terms of volume of business done by agencies. However, there are some activities in the market that give positive signal that the coming months would bring good fortune. One, the stability in government has continued to attract further investment, the recent being the Procter & Gamble's $250 million investment in a new plant site at the Agbara Industrial Estate in Ogun state. Also, the news of Nigeria's (GDP) that rose to $510 billion following the reclassification of the base year of the GDP from 1990 to 2010 would also serve as a booster for further economic activities. The development saw the size of the Nigeria's economy appreciated by 11 steps to become the 26th largest economy in the world ahead of South Africa's, which has held sway as the continent's largest economy for some time. Aside P&G, THISDAY investigations early in the week revealed that major multinationals in Nigeria have concluded plans to invest more in the market. According to a credible source, Unilever Nigeria Limited, PZ Cussons, Promasidor and Nestle Nigeria Plc have jacked up their investments in preparation for more marketing activities. Not only that these companies plan to introduce new products into the market, they were said to have used the last three months to finalise possibilities of increasing production to meet the increasing demand in the market. Marketing Activities Already, Promasidor and Nestle have started rolling out their plans to raise the stake in the next few months. Promasidor, makers of Cowbell Milk, last month launched Onga cubes into the seasoning market following a successful penetration of Onga powder, which was introduced into the market in 2004. Speaking at the launch of the new product in Lagos, Executive Director, Commercial of Promasidor, Mr. Kachi Onubogu, said the decision was taken after almost two years of insightful and innovative work by the Promasidor team. Similarly, Nestle, last week rolled-out the drum to celebrate the launch of its Maggi Chicken. The Nigerian seasoning brand launched their new flavor at a fun event where consumers were assured of better things to come. Expectedly, the two events attracted huge advertising, experiential and PR supports. Also last month, Nigerian Breweries repackaged Legend Extra Stout and gave it a similar treat to appeal to consumers. The brand now appears a new look of Staniol cover and metalised labels with the Monde seal of quality embossed on the new appearance. At the Eko Atlantic, Lagos, where the unveiling ceremony took place, its promoters did the unusual by riding on music, theatrics and comedy to connect consumers. The event, which was put together by Oracle Experience Limited, explored core experiential marketing techniques to bond with new consumers and give existing ones fresh excitements about the brand. Guinness had towards the end of last year, done the same when it changed the look of its Premium brand -Guinness Extra Stout. To push the new look, the company explored social media, advertising, experiential and public relations to woo consumers. The re-launch, which began towards the end of last year dovetailed into the New Year. It was done in a unique way to connect with consumers across the market segment. Aside traditional advertising support, it was showcased very conspicuously on the social media. Before then, a build up to the launch came through a teaser; 'Have you been Tagged?...ColourfulWorldOfMore. Then came the supper concert that heralded it; it was done in a unique way. All these were done to carry patrons along and they were handled by top marketing communications agencies in the country. New Development, Challenges To compliment the growth in the online media, a new survey has shown that daily time spent on mobile devices is now outpacing TV in the U.S. for the first time. According to a newly-released 2014 AdReaction study from Millward Brown, Americans now spend 151 minutes per day on smartphones, next to 147 in front of TVs. The research agency found that the numbers are even greater elsewhere. In China, consumers are said to be spending as much as 170 minutes a day on smartphones, nearly double their TV watching time. Users in Indonesia, the Philippines, Brazil and Vietnam are also said to be spending more total screen minutes on average than the U.S., predominately on mobile. The firm claimed to have surveyed more than 12,000 mobile users, between the ages of 16 and 44, in 30 different countries, polling consumption of ads over TVs, laptops, smartphones and tablets. Despite the positive development in the industry, crises in some countries are slowing down businesses, especially for experiential marketing companies that need to interface with consumers to do their businesses. For instance, in the northern Nigerian, activities of the insurgent group -Boko Haram has made it extremely difficult for outdoor practitioners and experiential agencies to thrive their businesses in some states. To a large extent, this has denied practitioners in this area the opportunity to enjoy from the largess coming from the market. Copyright This Day. Distributed by AllAfrica Global Media (allAfrica.com). |