Category: Brand week

  • Amstel Malta backs maiden Africa Magic Viewers’ awards

    Nigeria’s number one premium low sugar malt brand, Amstel Malta, is joining forces with leading entertainment brand, AfricaMagic, and MultiChoice, to stage the first edition of the AfricaMagic Viewer’s Choice Awards (AMVCA).

    Amstel Malta, from the stables of foremost brewer, Nigerian Breweries Plc, is the main sponsor of the event.

    Speaking at the Nominee Event ceremony, where the various categories and nominees were unveiled, Mr Tokunbo Adodo, Marketing Manager – Non Alcoholic, Nigerian Breweries Plc, described the partnership as timely.

    He said: “Amstel Malta is a brand that inspires individuals to be the best they possibly can at everything. What better opportunity to anchor that value than a gesture that is aimed at giving back to people who have indeed worked very hard in our very own continent.”

    According to Adodo, the AMVCA is a platform for rewarding talent which aligns with one of Amstel Malta’s core value of rewarding loyal consumers. “We constantly seek new ways to say to reward our loyal consumers. The AMVCA will not only reward talents, but also encourage the upcoming ones to strive to excel so they can be recognized and rewarded”, he added.

    Mrs. Adedoyin Owotomo, Brand Manager – Amstel Malta, also remarked on the brand’s sponsorship of the event. She said: “At the core of the Amstel Malta brand is the conviction that everyone has what it takes to be the best.

    The brand, therefore, believes in providing platforms that not only give opportunities to young talented individuals but also inspiration. AMVCA is a platform that recognises and celebrates the best in the movie and TV industries; a platform of inspiration to encourage young talents in the industry to ensure they make smart choices that will show their originality and that they are unique and discerning individuals that deserve to be recognized and rewarded.

    The Managing Director, M-Net Africa, Biola Alabi, said the partnership with Amstel Malta was commendable. “At M-Net, we look forward to walking this path with Nigerian Breweries and we believe that our strong relationship will be a long standing and mutually beneficial one,” she stated.

    She also had words of encouragement for artistes who were not nominated. “This is also a medium to reach out to every individual that is part of this industry either directly or otherwise. Do not be disappointed if you do not hear your name in any of the categories, it doesn’t mean your work isn’t recognised or appreciated. Contrary to that, your input is noticed and deeply appreciated,” she said.

    The nominees for the AMVCAs were revealed at a glamorous nomination cocktail party held at the Porsche Center, Victoria Island. At the event were popular movie and TV drama stars like: Jide Kosoko, Saheed Balogun, Chidi Mokeme, Funlola Aofiyebi, Uti Nwachukwu and Genevieve Nnaji.

    The event also featured the unveiling of the AMVCA statuette, which eventual winners will walk away with. It was revealed by the trio of Biola Alabi, Managing Director, M-Net Africa, Tokunbo Adodo, Marketing Manager, non-alcoholic, Nigerian Breweries Plcand John Ugbe, Managing Director, Multi Choice Nigeria.

    Some of the categories are: Best Actor/ Actress in a Drama, Best Actor/ Actress in a Comedy, Best Costume Designer, Best Short Film, Best Sound Editor, among other categories.

    Some of the notable nominated Nigerian thespians include: Genevieve Nnaji, Funke Akindele, Osita Iheme and Kunle Bamtefa, among others.

    While voting started for the viewing audience on Monday, January 28, it closes at midnight CAT on Sunday, March 3, 2013. Viewers can vote via SMS, WAP and also via the Africa Magic website (www.africamagic.tv).

  • Commission unveils campaign for Vision 20:2020

    Nigeria’s Vision 20:2020 got another fillip with the take-off of a sensitisation campaign aimed at educating Nigerians on its goals.

    The radio campaign, which is running across major radio stations, pan Nigeria is one in the many communication executions that have been outlined to enlighten Nigerians about the seriousness of the Federal Government through the Ministry of National Planning to ensure Nigeria becomes one of the top 20 economies of the world by 2020.

    Frontline, Multidisciplinary Marketing Communications firm, Verdant Zeal, that got the nod of the NPC to act as its communications agency after a keenly contested pitch in 2010 created the jingles produced in Pidgin and English, with extensions to key local languages to address the ethno-cultural and religious demographics of the country.

    The jingle, which vividly captures the mood and essence of the Vision economic plan of the Federal Government, puts in perspective, the need for Nigerians to believe and share in the vision, unite and work, towards the attainment of the goals set out in the broad plan of making Nigeria an economic force.

    The Vision’s economic transformation blueprint is a long term plan for stimulating Nigeria’s economic growth and launching the country onto a path of sustained and rapid socio-economic development. The blueprint articulates Nigeria’s economic growth and development strategies and will be implemented using a series of medium term national development plans.

    It is a rallying call for all Nigerians, regardless of ethnicity, economic status, or religion to unite and stand behind a common cause of placing the country firmly on a path of sustainable growth, and taking it to its rightful place in the comity of nations.

    The Vision encapsulates the key principles and thrusts of the National Economic Empowerment and Development Strategy (NEEDS) and the Transformation Agenda of the democratic administration situating both within a short and long term strategic planning perspective.

    The radio campaign runs on both government and privately-owned radio stations across the country.

  • Social media leverage

    Brands need social media. Social media – web and mobile-based technologies such as Facebook, Twitter, Tumbler, LinkedIn and BBM and others that readily turn any message into interactive dialogue among individuals in a community, organisation or a country – does not need brands. On the contrary, brands need social media.

    According to recent reports, this year, social media is one of the most powerful news and updates sources. Because of this and similar reports, brands desperately need social media to be successful, to be social media savvy, to connect with grassroots, to sell their goods, and to be successful.

    Brand managers have these reports and they do understand that, in the 21st century where technology has blurred marketing boundaries, no brand succeeds on its own. In addition to the traditional media, brands need the efficacious power of social media.

    Reason: brands jostle for the attention of several millions of individuals who populate the social media scene. Brands need the attention and wallets of these people, as such; brand custodians would play all games, through different marketing gimmicks, to grab their targets.

    Some of these games include asking you to download free cool logo and use it as a screen saver, new singles of a popular musician; or if that fails to deliver the number, you are enticed to record and upload your own music on a particular site to win a particular gift, or get opportunity to mingle, giggle and wriggle. “Catch the fun while it lasts!” The brands scream in ecstasy. That is the catch.

    Guess what, the target, mostly youths, believe this sweet-sounding words hook, line and sinker. Who wins? It is not the target.  The brands win. That is why the brands keep going back to the social media space to recruit ardent fans, raving fans to fan the embers of their brands. Do not blame them. Much of the space on social media is free. However, that is the main reason brands need the social media. No, it is not only that, some brands have limitless pocket.

    I think the bottomless pocket of some of these brands (and the social juice they can get) attracts them to social media circle. This (bottomless pocket) gives brands opportunity to acquire social media muscle and bask in the social juice it brings.

    This used to be the exclusive preserves of the traditional media [newspaper, magazines, television and radio], but not any more, not any more, not any more. If a campaign breaks and it does not hit your Facebook page, it does not hit your Twitter handle, it does not hit your BBM anonymously, such campaign has not gone viral. If it has not gone viral, it has not succeeded. If it has not succeeded, it has failed. Ask a social media-savvy brand manager.

    That is the power of social media platform. In addition to this is the ability to connect with the target at an emotional level and hit their passion points and create a hero out of a zero; generate emotion and keep it in motion, create meaningful content and be in contact, engineer powerful engagement and keep the arrangement, sustain interest and build large followers.

    If you look at it with 20/20 eyesight, it is clear that social media allows the brands to set up infrastructure for their target and make the connection that makes the biggest difference (like the ones described above. I am sure you must have participated in one or two social media games).

    The birth of BlackBerry, different web-based applications platform and social sites have provided canvasses brands to tell their stories, to promote their ideas and be all to all people. That is why brands would always be grateful to social media dais.

     As social software that mediates human and brands communication, social media is the only platform that brands can flaunt their social juice, as it gives brands relevance, responsibility and recall, all year round, twenty-four-seven. Therefore, if a platform stays and sleeps with you that long, you are wont to believe everything it says hook, line and social media.

    As Internet-based applications that allow the creation and exchange of user-generated content, social media also packs extreme believability. This is where Cynthia Osokogu comes in. Cynthia made that same mistake of believing the content of her BBM. Cynthia was a victim of social media mistrust. Save the gory details.

    You remember her. Great. My job is not to regurgitate the ordeal she went through but to save a soul, by preventing a reoccurrence. That Cynthia paid the ultimate price does not mean the social media platform is evil. It is just prove that majority of social media fans are gullible. They would believe every twit. They would believe every ping. They would believe every contact. That makes them vulnerable to physical, viral and fraudulent attacks.

    Kindly note, social media platform is a social gathering of friends and acquaintances. Invariably, this indicates that you could meet genuine friends, strike legitimate business deal or find your bride while chatting in some professional chat rooms. On the other hand, social media space can be likened to clubbing.

    In a restaurant, you could make new friends that would last a lifetime, meet a dupe, or be swindled by a woman who happens to be smarter than you are! Does that make clubbing evil?  Answer to that question is not available on this page.

    What you would get here is this: brands look for critical mass to strike the numbers, the critical mass are available on social media space, and brand custodians would do all to lick those numbers. If you have a Twitter handle, Facebook page, BBM or LinkedIn profile, look out. If the message it too good to be true, and you cannot authenticate the source, it is too good. Delete it. Ignore it. Watch who you follow. Follow whom you watch. As my mother would say, keep to well-lit streets after dark.

    Be careful with your BBM. Know your pings. This is not a revelation. It is a reminder. In her wildest dream, Cynthia would never think those pings are death messengers. She was innocent. She was blameless. However, she has offered a great lesson on how not to deal with BBM contacts: Not every contact should be contacted. Not every contact has a contact address. Be wary of contact who insists on physical contact, unless you are sure. If you are not sure, delete the contact.

    Several social media contacts hide under aliases. Aliases are guises. Guises are masks. Masks hide dirt. Dirt tells bad story. Bad story is bad. Ask questions. Probe aliases. Be social media-wise. Have fun. Life is short. Do not shorten it further. Remember Cynthia. For social media addicts, happy pinging. For Cynthia, adieu.

  • What is killing indigenous Pay TV?

    What is killing indigenous Pay TV?

    Many Pay TV companies have come and gone, probably because of poor planning, negligence and lack of experience. Raji RotimI Solomon reports.

    The commercialisation of television stations has created competition in terms of content delivery and signal clarity.

    In the past, only government owned television stations were available. Signals were bad; stations worked between 4 p.m and midnight.

    The privatisation of the broadcast media especially television, advancement in technology and a crave for more entertaining and educative content gave birth to pay televisions.

    Over the years, many pay TV companies have come and gone; some died because of poor strategic planning, negligence and lack of market.

    In 1994, DsTV, a South Africa based pay TV company launched its operation in Nigeria. It controls 85 per cent of the country’s pay television market. At inception, the market was a virgin land for it to grow its business. It was an alternative for the rather boring local stations who had nothing to offer. In no time, it became a matter of status symbol to own a satellite dish.

    Not to have a satellite dish in your home meant that you are not in the calibre of the high and mighty. For a decade, DsTV monopolised the market. Then came the first indigenous pay TV company. Frontage satellite television (FsTV) in 2004. It had a poor marketing strategy and not too highly rated content for viewers. It did not survive.

    Trend TV was launched about the same time. It didn’t survive beyond its test-run days. The mortality of these companies affirms the words of Caroline Creasy, former head of Corporate Affairs Multichoice Africa: “Nigeria is a difficult market to ingress and it takes lot of sound strategies to prevail. We believe there is still room for growth.”

    In 2007, DsTV had a competitor, who gave it a run for its money. HiTV was launched in 2007, was the brainchild of a lawyer, Toyin Subair. He worked with DsTV as legal adviser before proceeding to establish his own pay TV company. HiTV surpassed other defunct indigenous companies. By 2009, HiTV had hit 200,000 subscribers base.

    HiTV’s acquisition of the Champions League and Premiership viewing right was the goose that laid the golden egg for it. The competition gave room for objective evaluation of both companies and their offerings. HiTV dominated the sport channels and the competition became stiffer as people began to buy DsTV for the sake of African Magic, Movie Magic, Channel O; they bought HTV for sports.

    Niyi Akinola, a banker said: “I enjoy football a lot and that’s the only way I relax. So, I had to buy HiTV for myself, since the only time I am around to watch TV at weekends, I had to buy DsTV for my wife and kids who are not interested in football. The two decoders became necessary evils to have at home.”

    HiTV relied on the Premiership and Champions League viewing right, which made its sport station premium. DsTV took the time off to build its other stations, which was all it had then. When the next bid was called for the Premiership and Championship viewing right, HiTV knocked DsTV out with an incredible figure of $130 million for just Nigerian right. DsTV bid $100 million.

    Of course, the right was given to HiTV, but, it couldn’t pay the money. When HiTV couldn’t pay, DsTV swung into action and got the right for $100 million. That was the deal that spelt doom for a promising indigenous pay TV which was a threat to DsTV. The irony is that while DsTV built its channels with local content with African Magic and all, HiTV focused mainly on its sport station, not giving a chance to local content to grow. This would have added a cushion aid to the fall they had.

    Daarsat, a pay TV owned by media mogul, Dr. Raymond Dokpesi, started in 2008. It came introducing high definition (HD) programming into Nigeria, the first of its kind. It enjoined viewers to catch the fever. Iiterally, Daarsat went down with fever and never recovered.

    StarTimes is now a major competitor in the market. The Nigerian Television Authority (NTA) and its Chinese partner are faring well in the market. Their target are the low-income earners. Many people find it convenient to get a pay TV subscription for as low as N1,000. The rush was high until lately when Multichoice decided to hit the low earners market with its GoTV product which is competing with StarTimes.

    Despite its growing market, the question is, why are indigenous pay TV stations dying? What is killing them? Why should foreign brands dominate the market and make so much from it? A media practitioner, Abraham Oyedele, traced the problems to poor managerial and content management skill.

    People may complain about DsTV’s incompetence in terms of signal disruption during stormy weathers, inefficient customer service centres, connection and reconnection troubles, but there is no doubt that it is strong. This is because it feels the pulse of its customers. It knows content management and how to sell its brand well. If only we can have such too, then we are sure to have a pay TV that would match DsTV well”

  • Heineken’s winning way

    Innovation is often defined in terms of technological breakthroughs. There is a growing tendency to see it more as the creation and implementation of ideas that improve existing situations, writes WALE ALABI, using Heineken as a case study.

    Joyce Wycoff, co-founder of the Innovation Network defines innovation as “people creating value by implementing new ideas”. Eileen Dundon sees it as “the profitable implementation of strategic creativity”. In line with these definitions, the concept can be seen as proposals for products that could add value to a brand that are new to it.

    In the complex world of the 21st century where consumer preferences change rapidly, marketers are often on their toes to keep pace with this development through active participation and meaningful dialogue with consumers and brand loyalists. To some brands, it pays off; to others, it is often a Herculean task. One brand that appears to be getting it right is Heineken, the world’s leading international premium beer.

    Noted for the quality of its packaging and content and for opening the world of its consumers, the brand seemed to understand the concept of brand innovation well when it unveiled a new global bottle in Nigeria. The brand- which constantly looks for opportunities to set new world standards to provide its consumers with utmost quality- did not disappoint. It held a spectacular World Premiere of the bottle at the Federal Palace Hotel and Casino in Lagos which attracted high net worth personalities. This was replicated in Ibadan.

    For a brand to expand its interaction and maintain a balanced market penetration at a stable pace, it requires a robust and mutual relationship with consumers and stakeholders for success. This was the focus of Heineken when it launched the new global bottle in Ibadan, the Oyo State capital. It gave stakeholders the premium experience in an airport ambience in conjunction with James Bond latest movie, SkyFall.

    Some of the distributors expressed optimism that the innovation behind the new global bottle would drive sales and strengthen the bond between the brand custodians and stakeholders.

    Mary Odebiyi, a manager at Dacamca Nigeria Limited, one of the leading distributors, praised the new Heineken global new bottle for standing out. “The new global bottle is a very fantastic move that will help in creating more visibility for the brand, it is a well thought out process that is already bearing positive fruits. The fact that it was unveiled to consumers and distributors laid credence to its international status; it is truly the ‘Chairman’ of all beers”.

    She added that the brewery industry in Nigeria is big, adding that the new bottle will expand the businesses of stakeholders because people “will appreciate the beer more than what it used to be as this will translate into high volume for us as distributors. Heineken is for a unique set of consumers and the new bottle will further distinguish it from other beers”.

    Chairman, Tabcon Nigeria Limited Ibadan/Abeokuta, Akinyele Oladeji said the unveiling is a way of showing the quality and leadership place of Heineken in the Nigerian market. “As for us distributors, we are excited about the new idea because it will contribute to our sales volume in the shortest time. The new packaging cannot be ignored on the shelf because of its unique look and features.”

    Managing Director Ofage Enterprise Nigeria Limited, Ado Ekiti, Adegboyega Omotoyinbo, disclosed that the Heineken brand has contributed to positioning of his outlet and business in terms of return on investment and with the new innovation it will further add to the growth of the business.  ”I can authoritatively confirm the type of revolution I created in the market with Heineken and other Nigerian Breweries products.”

    Managing Director, Lexican Investments Limited, Ile-Ife, Omoba Adeleke Gbadebo, praise the minds behind the rebranding of Heineken and further pledged his company’s loyalty to the brand and other Nigerian Breweries products.

    Regional Business Manager West, Nigerian Breweries Plc, Joseph Bodunrin, disclosed that the Heineken brand is being sold in more than 170 countries of the world and Nigeria has contributed immensely to the brand which has informed uniformity, in the sense that the brand needs to have a uniform identity worldwide which is what informed the introduction of the global new bottle into the market.

    He further explained that, the brand is an icon as the James Bond movie Skyfall it sponsored recently is. The partnership with James Bond has further driven home the uniqueness and the premiumness of the Heineken brand. He added that consumers generally have insights, which drive them to approve a brand like Heineken.

    On the place of the brand and the activities in the region, Bodunrin said: “Heineken has done very well here in Ibadan even the poor know what quality is all about and they associate with Heineken a great deal, and the brand appreciates by engaging in sponsorships in term of carnival especially the Ibadan carnival which is mainly a beer event where consumer gather to enjoy the quality beer responsibly.”

    Mr Nicolaas Vervelde, Managing Director/CEO, Nigerian Breweries Plc, unveiling the global bottle in Lagos, said the company has been reinventing its brands and driving innovation over the years. Heineken, he noted, is an outstanding brand in Nigeria, the fastest growing and most premium lager beer in the country, hence, the name “Chairman”.

    The packaging, he continued, is state of the art and a retinue of distributors will ensure that it gets to the hands of its consumers wherever they are.

    Marketing Director Mr Walter Drenth affirmed that the new world class and innovative, proprietary bottle comes in 60cl and 33cl content. “It is a uniform Heineken bottle across the world and I am proud that Nigeria is one of the first countries to introduce this new design on a returnable bottle. This bottle is designed with true perfection to match the premium quality that Heineken always delivers”.

    Taking the audience through the design features of the new bottle, Drenth stressed that it is the first bottle of its kind with a transparent label in Nigeria; he said it was deliberately achieved because “Heineken hides nothing of its premium quality. The new green neck foil is inspired by the shape of a smile and is now wrapped around a longer neck. The stylish embossment at the back is a proof of authenticity and class. Together with the modern curves it adds a tactile nature that is pleasant to touch and that improves grip”, Drenth added.

    The beer market in Nigeria is still growing; competition may be keen, but, what matters is for consumers to continuously approve of a brand. There is no gainsaying the fact that Heineken will continue to have national acceptance in Nigeria.

  • Are energy drinks good for health?

    The debate has been on since they came to the market. Some argue that they are harmful to health; others say they are not. The jury is still out on the suitability or otherwise of these drinks, reports Raji RotimI Solomon.

    Are energy drinks what the makers claim they are? The producers claim that they are energy boosters good for busy executives, The drums they say, are not harmful to health despite being rich in caffeine. Therein lies the problem. Those against these products say they are too high in caffeine, which excessive intake is dangerous to health.

    The suitability is otherwise of these products is always a subject of debate among people. In offices, at parties, homes and joints, there is always a heated debate over the consumption of these drinks.

    Now a member of the House of Representatives Yacoob Bush-Alebiosu is set for battle over these drinks which he claims are dangerous to health. His move has given those in the energy drinks market the shivers. What will happen to the drinks? Are they on their way out? These are some of the questions being asked.

    What does Bush-Alebiosu find bad in these drinks?

    According to him, they have a life threatening effect on blood pressure, heart and brain functions. The abuse of the drinks among youth might cause mid-age mortality in the nearest future. He noted that it is mixed with alcohol to serve as suppressant, making the takers to consume more alcohol than the body can take under normal circumstances.

    Depending on where they stand, not everybody agree with Bush-Alebiosu.

    A consumer, Mayowa Oluwatomi, said: “If this is indeed dangerous to the health, then it shouldn’t have been granted sale and distribution license in the first place. How they are NAFDAC approved? Is it that the agency didn’t do its home-work before now? Secondly, I feel they should ban cigarettes instead of energy drinks, cigarettes are more dangerous to the health than caffeinated drinks. These are relevant points raised with no answers for now.

    Energy drinks came into the country some years ago with Lucozade boost, this particular drink was associated with sick people who need energy supplement for them to gain strength. This was one of GlaxoSmithKline’s fast selling product.

    It came first in dotted breakable bottles which later evolved to tetra paks. Orange Drugs came up with their own brand of energy drink, Passion, which came in sachets with powdery solution, an improvement to what was obtainable before.

    The acceptance was wide since it was more handy and cheaper. Not too long, the market became more competitive with the influx of different brands of energy drinks in cans. The likes of Power Horse, Hype, Red bull, Hippo, Climax, Kiss, London Best, and the rest became regular features at parties, bars and clubs.

    Some discoveries were made by drinkers which actually boost the popularity and sale of energy drinks in the country. These claims are not scientifically proven but they are generally accepted.

    Many youth believe it works as an aphrodisiac, they believe it enhances sexual ability. Another fact that makes energy drink a toast, among youth, is the ability to mask alcohol.

    Mixing energy drinks with alcohol, suppresses the alcoholic effect making a consumer drink more than his or her gauge without feeling the tipsiness.

    An advertising guru, Mr. Idowu Esan, who has over the years handled several energy drink brands, gave a thorough analysis based on his opinion and experience of the drink.

    He said: “Let us face it, anything that we take without caution would always have repercussions. Water, as vital as it is to human survival, if taken without moderation would become harmful to the body.

    First there is no record of death or injury traceable to the consumption of energy drink to substantiate the Reps claim. Again, all the countries that were stated to have banned energy drinks still sell and distribute.

    He stressed the danger in caffeine but he forgot to highlight the advantages of caffeine. Of course everybody knows that anything that has a negative side would also have the positive side.

    • Japanese researchers have shown that caffeine increases memory;

    • Caffeine mixed with carbs replenishes muscle glycogen concentrations faster after exercise;

    • Caffeine detoxes the liver and cleanses the colon when taken as a caffeine enema;

    • Caffeine can stimulate hair growth on balding men and women;

    • Caffeine relieves post workout muscle pain by 48 per cent;

    • Caffeine increases stamina during exercise.

    These and much more are the benefits of caffeine, so it has nutritional and health benefits. Moreover, coffee contains more caffeine than energy drink, it’s not a reason to ban caffeine. Most energy drinks in Nigeria are approved by National Agency for Food and Drugs (NAFDAC), and all these they have checked and certified.

    The same thing with the Standard Organisation of Nigeria (SON). To complement my points, if you check for example Power-Horse you would see an instruction that states pregnant women, children, people that are sensitive to caffeine or diabetic patients should not take the drink. These instructions are to put moderation and to reduce possible health risks that might be associated with the drink for some particular people.”

    Another consumer at a bar in Egbeda, Justice Umeh said: “I mix energy drink with my spirit but it is not for suppressing the alcoholic effect but for the taste it gives me. Secondly, I want to drink alcohol and still maintain my mental alertness and I have discovered that this mixture actually does this to me. I kill two birds with a stone.”

    A nutritionist, Nneka Ajomale, said caffeine actually works as antioxidant which is very good for the health if taken moderately, and surprisingly these energy drinks contain it.”

  • HP vs DELL

    Hewlett – Packard and Dell are fighting to control the computer hardware market by employing various strategies. Which firm will win the battle? Raji RotimI Solomon asks.

    Hewlett-Packard (HP) and Dell are two of the biggest computer hardware companies which offer products, technologies, software, solutions and services to different categories of customers. Both companies are fighting to stay alive in the computer hardware market, and are trying to outsmart each other. The major question however is: “Who is really winning?”

    HP was founded in 1934 in a garage by Bill Hewlett and Dave Packard while Dell (originally named PCs Limited) was founded in 1984 by Michael Dell; a student of the University of Texas. And from humble beginnings, both companies are now ranked among the world’s Fortune 500 companies, with HP ranked by Forbes as number 15 in the World’s Most Powerful Brands while Dell is ranked number 41. Despite these ratings, HP and Dell are in murky waters due to bad sales recorded in the last quarter of 2012.

    The rise of HP to the apex of PC manufacturers was as a result of good mergers and acquisitions (Compaq and Palm), viral advertising campaigns, good customer service support and the success of HP as a brand. The company launched online stores which enabled customers to buy products at company price and retail stores which allow customers to have a feel of the products they are about to invest in.

    It also moved manufacturing plants to Asia to enable them mass produce and reduce production costs. This market strategy was a hit, and the company won over customers from its major competitor; Dell. Its product range of laptops, desktops and printers became synonymous with good pricing, design and performance.

    However, the road downhill became eminent due to management crises, decreases in R&D investment, lack of innovation, bad acquisitions (Autonomy) and a myriad other issues. To save itself, the company cut jobs, performed internal restructuring and is also toying with the idea of selling Autonomy and EDS—subsidiaries acquired in 2011 and 2008 respectively.

    In the early 90s, Dell became the king of PC manufacturers, fending off competition from IBM, Acer, Sony, HP, Toshiba etc. Its success was due to its ability to deliver individual PCs configured to customer specifications and a vibrant customer support applauded globally. To minimize the delay between order and delivery, the company sited its manufacturing plants close to its customers. This manufacturing policy reduced production costs to the minimum and made the company record huge profit margins.

    However, after the resignation of Michael Dell as C.E.O, the company’s fortunes began to nosedive as major competitors moved manufacturing plants to Asia to enable them produce finer, better and cheaper PCs en mass. This move also exposed Dell’s lack of innovation and to further compound its woes, Dell’s once vibrant customer support became a shadow of itself. Customers complained, sales dwindled and executives lost their jobs.

    Dell also shot itself in the foot by refusing to quickly change the way it received orders from consumers; a big mistake competitors capitalised on. But the biggest contributor to Dell’s impeachment as king was the failure of its brand. As Jonathan Salem Baskin rightly puts it “Dell doesn’t have DNA, or support an architecture of feelings, or own a particular emotion. It has no friends, and nobody loves it.

    It makes computers, and its products look indistinguishable from those made by HP, Lenovo, ASUS, and many other manufacturers who probably share many of the same factories. So, its brand is constituted by that stuff, not the esoteric nonsense it has paid many millions of dollars to light up its conference rooms with. Every consumer product, from technology to apparel, is learning that branding can’t attach meaning to meaningless stuff anymore, but that brands need to do unique things. Dell hasn’t stood for something in a long, long time, and it’s hard to get consumers to pay for nothing special.” Dell’s troubles run so deep that stories of sale of the company have spread like wildfire in the media.

    Another contributor to the dwindling fortunes of both companies is the boom in the mobile device market. As manufacturers like HTC, Apple and Samsung continue to improve on the processor power of their devices thereby giving them the ability to perform basic computer functions with ease, consumers have continued to favor these mobile machines. The result is a post-PC era the two PC giants didn’t see coming and are helpless against. Also, the increased popularity of cloud services such as Dropbox, Google Docs, Huddle, iCloud etc. have given more data storage options to users of mobile devices who no longer see sense in carrying their laptops everywhere.

    And as executives of both companies are busy trying to get out of the mire they’ve found themselves, pundits are asking why the PC giants allowed the mobile device boom evade them. Clearly, both companies have no answer to the innovation of mobile device manufacturers.

    The winners of the duel between these two companies are consumers who wait for the two warring factions to reduce prices and offer bonuses. Also, as more manufacturers like LG and Samsung emerge, consumers now have freedom to choose between different hardware specifications offered by different manufacturers especially at reduced cost. The result is that consumers are no longer blindly loyal to both brands which have offered nothing new in terms of innovation in recent years.

  • Close Up of Excellence

    CLOSE-UP, the toothpaste brand from Unilever was recently conferred with the Product Excellence Award (PEA) in the maiden edition of the Nigeria Consumer Awards (NiCA).

    The Nigeria Consumer Awards (NiCA) was instituted by the Consumer Protection Council (CPC) and will henceforth be an annual event, to bestow awards and honours on those who contribute to enhanced consumer welfare, thereby improving the regime of consumer protection in Nigeria.

    Close Up was announced as the winner among three nominated brands in the Personal Care Products Category at the Award ceremony held recently in Abuja.

    The Winners in the various categories of the awards were chosen by votes of consumers using the instruments of survey and text messages.

    In guaranteeing the integrity and transparency of the process, the result of voting was verified and authenticated by an Award Verification Panel made up of highly reputable members, drawn from a cross-section of organisations, namely, the Media, Organised Private Sector, National Association of Nigerian Students (NANS), Standards Organisation of Nigeria (SON) amongst others.

    The Close Up toothpaste brand was launched into the Nigerian market in 1975 and has kept fresh and protected the mouths and teeth of millions of families across the country. In other to meet different consumer needs, Close Up comes in variants such as; Close Up Deep Action Red, Close Up Deep Action Green, Close Up, Menthol Chill, Close Up White Now, Close Up Herbal, Close Up Complete 8 and Close Up Complete 8 White.

    In May 2012, in an effort to continue to be dynamic, as well as celebrate its 38 years in the Nigerian Market, Close Up organised the Close Up Loves Naija’ campaign, which was an opportunity to show appreciation to Nigerians and give back society in various ways.

    This included a CSR programme aimed at rendering assistance to some charity homes as well as an unveiling of the improved Close Up Red and Green gel variants which now gives three times fresher breath than the previous formulation and elimination of germs up to 99 per cent.

    During the award ceremony, Mr Olusegun Aganga, Minister for Trade and Investment commended the CPC for organizing the Nigerian Consumer Awards and stated that the organisation must always reward products and services that excel in their areas of operation.

    Also speaking at the award ceremony through a representative, Her Excellency and First Lady of the Federal Republic of Nigeria, Dame (Dr.) Patience Goodluck Jonathan, who was Special Guest of Honour at the event, as well as Nigeria’s First Consumer Ambassador, stated that consumers on their part must avail themselves of the opportunity to see their participation in the Nigerian Consumer Awards as an obligation that will, on a yearly basis, remind businesses that consumers are watching.

    She also called on all Nigerians, particularly the Captains of Industry and entire members of the business community, to take advantage of the platform to better the lot of the average Nigerian consumer.

  • War against cash

    War has positives. War has negatives. It depends where you stand.

    If you were around during the Nigerian civil war that consumed many lives, and left some families devastated over 40 years after, you would readily say war connotes bad omen. On the other hand, if you were on the other side, you would look in the mirror and smile because the war in question has united different tribes and tongues.

    However, aside the civil war, which left a sour taste in the mouth, the regimes of some long gone military rulers fought a different kind of war in their effort to sanitise the country and keep things in their proper places. What did the strong rulers do? They thought (in their wisdom) that the problem with Nigerians and Nigeria was indiscipline, as such; Nigerians should be “disciplined”.

    Therefore, they reasoned, the best way to go about it was to “force” Nigerians to behave in an orderly manner by “intimidating” them to form a long queue at the various bus stops, grocery stores, banking halls, on university campuses, everywhere, while soldiers lurked around to “discipline” any bloody civilian who contravenes the law.

    Suddenly, the queue culture caught on. The news at nine on the Nigeria Television Authority (NTA), the nation’s TV station, was incomplete without the queue culture commercial being aired. The social scene also caught the queue bug as Fuji and Juju musicians sang about it. Popular sitcom, New Masquerade, dramatised it. “Andrew” voiced it. Students cracked jokes about it.

    “The queue culture is working”, the military rulers thought, without paying particular attention to the endemic corruption in the guise of kickback, contract inflation, abandoned projects, vandalisation and arson, and other corrupt practices that characterised the democratically elected civilian regime, which that military junta toppled.

    Then, that military regime thought “force” was the name of the game, thinking that it could cudgel Nigerians into participating in its war against indiscipline (WAI).

    It thought with WAI, Nigeria would become a better and disciplined nation. That military regime was wrong. Why? What happened next would explain. While that military ruler was basking in its triumph and settling down to act out its next script, a coup, cooked by an insider, put an end to WAI, WAI brigades and the proponents of WAI.

    What is the lesson? That is not the story for today. The focus is on another war being fought by another governor. The war today is against cash. Several scholars and monetary “experts” have pontificated on the cashless policy of the Central Bank of Nigeria (CBN). Some said it is a policy whose time has come. Other said its time has not come. Yet, another set said for Nigeria to compete favourably with the other economies of the world in either Europe, the United States or Africa, Nigeria needs to transit from cash-based to cashless transactions.

    The cashless initiative is aimed at encouraging more electronic-based transactions and reducing the amount of physical cash in circulation. To make its argument logical, the CBN said that the direct cost of cash management to the banking industry in 2009 was N114.5 billion with an estimated cost of N192 billion by 2012.

    According to the CBN, the spiralling cash management cost, most of which is passed to customers in the form of bank charges and lending rates, is as a result of the country’s cash dominant economy. Therefore, the apex bank articulated its case; “the cashless policy would boost our economy as more money would be channelled through electronic process”.

    Like the WAI experiment that failed to work from the inside out, the cashless policy is toeing the same route. The CBN has expended huge budget on the campaign in order to propagate the cashless policy, but it has not done it the way it would yield the desired result. There are still several grounds to cover. There are still several miles to go. There are still several stones left unturned. In addition, it seems the CBN is in a hurry to achieve its objectives of making Nigeria a cashless country.

    To show that the CBN has not put its acts together, it has come out to change the theme from cashless to cashlite, saying that it does not intend to foster a cashless environment but it would promote an environment where the use of cash is light. To ensure this cashlite push, it has imposed sanction and limitations on banking public and corporate organisations, which is akin to “forcing” Nigerians to form a “queue at every bus stop” without first working assiduously at changing the attitude, the culture, the belief of Nigerians about carrying cash.

    Until Nigerians change their attitude and belief about carrying cash, the cashless policy is doomed. However, once the CBN can put machinery in place and begin to engage the different stakeholders that would assist it to achieve behavioural change at the grassroots level, then it can begin to expect a semblance of success.

    War against cash cannot be won in the boardroom with long oak table and sartorial suits and bow ties, no. War against cash would be won on the streets. Nigeria would remain a mixed economy of cash and card, not solely card. Cash is stubborn. Cash is attractive. In Europe, cash is still in vogue, maybe not as obscenely common as in Nigeria. However, in 2011 cash made up 56 per cent of all UK payments, which comes to about £262 billion.

    Everybody likes cash. You do too. We all like cash. Why? It makes things easy. It is fast. Its value is clear. Everybody accepts it. Banks, however, do not like cash because it is expensive to handle and move around. Nevertheless, get this: war against cash cannot be won by formulating monetary policy. Anyway, there are technologies that can reduce the cost of dispensing cash. The CBN and banks should invest in such technologies and stop fighting against cash because the CBN’s war against cash is not positive.

  • Six in Etisalat’s Nigerian Idol promo’s race

    It was a day of mixed feelings and surprises as the first six contestants to make it into the Top 12 of the third season of the Etisalat sponsored Nigerian Idol show were chosen by the viewers. The lucky six, namely Sadeeat, Vicci, Debbie Rise, Oreoluwa Liyele A.K.A Immaculate; Kome Amagada and Job Emmanuel Idoko A.K.A Joe Emmal were among the first 20 of the Top 30 contestants who slugged it out over the past two weeks. The rest were not  so lucky.

    One of the major surprises was the case of Obinna Michael A.K.A Mr. Byno who did not  make it through this stage of the competition. Widely regarded as a favourite, he cut a sorry figure as the results were announced. But that was the first surprise, as the duo of Moses Obi-Adigwe and Okafor Angus Sunday A.K.A Dani Angus also lost out in the voting, leaving the audience at the Dream Studio venue very disappointed.

    The trio now hope to return through the wild card segment, a prerogative of the judges and the audience to bring back to the show some of the evicted contestants. But that may be a long shot, as they will not be the only ones with such hope. They will have 20 others to contend with.

    Interestingly, two of the judges, Yinka Davis and Jeffery Daniels were as shocked as the audience with the voting results that has seen some of the contestants they see as promising talents being voted out. They advised the audience to vote more to keep their favourite contestants in the show.

    Head of Events and Sponsorship, Etisalat Nigeria, Modupe Thani spoke in the same vein. She said it is disappointing to see such promising talents leave the competition when the show is about to enter its peak.

    She encouraged the audience and viewers at home to vote for their favourite contestants as many times as possible so that they can have more votes to make them stay in the competition.

    “Thankfully, we have the wild card segment of the show which gives the judges the opportunity to bring back two evicted contestants, while viewers have the opportunity to bring back one evicted contestant,” she said.

    “To vote, Etisalat subscribers can dial the number of their favourite contestant on their Etisalat line, while to vote from other networks, subscribers can send the contestant’s number via SMS to the short code 33680,” Thani said.

    She congratulated those that have made it to the next stage of the competition and encouraged them put in more effort to convince the audience and viewers at home that they deserve to win the star prize of 7.5 million naira.

    Meanwhile, the final group of 10 contestants performed on Sunday’s show in a bid to win the hearts of Nigerian viewers and make it into the Top 12.

    Voting for the third and final 10 of the top 30 contestants continues until midnight on Wednesday, January 30. To vote, dial the number of your favourite contestant on an Etisalat line or send the contestant’s number via SMS to 33680.

    Winner of this season will take home N20 million worth of prizes, including N7.5 million in cash, a brand new SUV, and a recording contract with a record label. The first runner–up will receive the sum of N1.5 million and a saloon car which will be presented by Etisalat.