Creating value in mainstream drinking Yogurt market in Nigeria
Since inception in Nigeria in 1999, CWAY as a company has grown into a multinational enterprise and an iconic Group operating 16 plants across Nigeria with an array of equally iconic brands and thousands of employees. The Company which stepped in to fill a yawning gap in Nigeria’s dairy sector by giving the nation fruit milk brands which, according to it, give more nourishment to consumers, introduced yet another nourishing product into the ever growing market a few months back through its subsidiary, CWAY Food and Beverages Nig. Co. Ltd. It has been christened Nuttri-Yo.
In this brief interview with MARKETING EDGE, the company’s Managing Director, Mr. Alok Saxena, speaks about the new product which is already making waves and carving a niche for itself in the market; he also speaks on his company’s operations and the dairy market in Nigeria, among other things.
Given the facts that the Nigerian dairy market is multibillion dollar in size, how would you assess the industry from demand and supply perspectives?
Dairy market is an ever expanding market as long as babies are born, children grow into teenage, years and Nigerian population keeps increasing. Every Nigerian in various demography is a potential user of different diary brand. The diary business will keep growing as long as people to consume it. Industries will be capitalized with investment flowing into the country from Asia and will avail the users with assortment.
The Government of the Nigerian Federation is focusing on the Agric sector as one of the means to diversity the nation’s economy. How is your company, in particular, and the operators of the dairy sub sector, leveraging on this governmental focus?
Since the advent of this administration, and the clarion call to manufacturers to up their local content in finish product. CWAY has being exploring & local market for subtitle to imported raw materials in compliance with government advisory.
Recently we have identify a good opportunities to increase the use of locally processed raw material as import to our finished product and will are developing new product.(Detail of which i cannot reveal to you now to actualize our vision of 80% local content in our finished products).
Let’s look at your company’s foray into dairy products production. What informed it? How far has it gone? And, how farther is it hoping to go?
We identified a need by millions of Nigerian end users for milk consumption. Before our advent into milk production, Nigerian could expose only to home-milk in tetra pack and evaporated/condensed milk in tin and powder. There was a gap in fruit milk that gives more nourishment to consumers. And, so far so good, it can only get better.
There’s a great opportunity for continue growth in view of increasing target end users. The growth is limitless as accumulative of installed production capacity of manufacturers of fruit milk product cannot meet consumer demand nationwide.
What can you say about the various dairy brands within your portfolio?
Our dairy brands are top notch fruit milk drink that has grown our goodwill among our timing consumer and patron because they are sure of high quality fruit milk brand/yogurt with great taste. Quality assurance is our watchword.
We’d like you to talk in some details about your Nutri-Yo dairy brand: what is the vision behind its development/production? What are its intrinsic and extrinsic values? What is its brand positioning? And what would you say is its market share of Nigeria’s dairy market?
Vision is because of consumer/market demand from the company (The market believes we can do it and so we are engaged in doing this).
Market share can’t be determined as the product is at its introductory stage (Barely two months into the market).
Intrinsic value of the brand is its low fat plain yogurt content, rich in protein with essential minerals as calcium, sodium, carbohydrate along vitamin B6,B1,D and A.
Extrinsic value of the brand is that it’s suitable to modern life style.
What integrated marketing communication efforts are you putting behind the brand? How well or otherwise are they resonating with the consumers?
Since the inception of Nutri-Yo into the market. We have engaged different marketing channels to communicate with consumers. We had an experiential marketing activation in Lagos where consumers were happy to receive the brand and were been able to create media awareness. The acceptance is massive.
What challenges does the brand face and how are you coping with the challenges?
The challenge the product/brand faces is the low purchasing power in the nation. Because of inadequate job, the people now see yogurt as above board pricewise. This situation does not encourage very well volume growth.
For some businesses which lack capacity to sustain yogurt drink in the market, their brand might fail even before it gets into the maturity stage.
Again, Yogurt drinks compared to CSD might be a bit slow moving on the account of higher moving price.
What future do you foresee for the brand, in particular, and your company’s operation in the dairy industry in Nigeria, in general?
There is a bright future as a whole; not only for C-Way brand of dairy milk. Nigeria is investors’ destination in Africa due to higher growing population. If this is backed up by high growing economy, then I foresee influx of more investors (local and foreign) in the industry which position the Nigeria market as a hub in not just West Africa but the entire continent.
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