Mr. Tarang Gupta is Marketing Director, Friesland Campina WAMCO Nigeria. In this interview with Ibrahim Apekhade Yusuf he speaks on the evolution of dairy products in Nigeria vis-à-vis consumer choice among other issues. Excerpts:
What is your assessment of dairy products, especially milk in Nigeria considering the fact that many people believe that it is largely untapped?
There’s a huge opportunity for dairy in Nigeria. And I also agree it’s largely untapped. According to Food and Agriculture Organisation (FAO) basis milk equivalent, average per capita global milk consumption amounts to about 100 kg of milk/year. And it is good to note that this is with significant variances between markets/countries. For example, quoting FAO, per capita consumption in Europe is in excess of 300 kg of milk/year in comparison to some African and Asian countries with less than 30 kg.
In Nigeria, whilst market information is not readily available, data suggests that per capita consumption of milk is 8kg/year. As we see, milk consumption in Nigeria is low. As such, it is expected that as the Nigerian population grows followed by increased Nigerians’ awareness and relevance on the goodness of dairy and the overall market competitiveness of dairy manufacturers, dairy category will become more and more relevant. It will offer more innovation, options ultimately growing in both volume and value terms. Lastly, as the economy improves, population pyramid experiences more dynamic- the middle class is projected to increase as such, the demand for milk will be further stimulated.
Considering the steep decline in global oil prices which has adversely affected Nigeria’s revenue, do you see this having a rippled effect on consumer buying behavior as it concerns dairy products generally?
Since Nigeria’s socio-economic challenges came to the fore, there’s been many opinions on how government and private sector on the one hand and Nigerian consumers on the other should address it and likely tap the opportunities that it brings. Nigerians have become more enlightened and as such have braced up for the tough times. Unfortunately, the economic recession being experienced will take a while before the country bounces back. Nigerians have become pragmatic in their way of living and in fact are ‘protecting themselves’ by making clear priorities and choices which is happening across categories. Often such situations lead to recalibration of consumption habits and rationalisation of expenses. However, Nigerian consumers are still demanding for same product quality, they don’t want to be taken for granted and ready to go with any brand that meets their needs and thus this is the time when manufacturers should value their consumers and give them the value they deserve.
Though the costs of business operations are getting challenged, the organisations would need to be creative in terms of their business models, so as to maintain their costs and continue to provide value to consumers.
As a company what opportunities do you see in all of this?
To be honest, the current challenges in Nigeria affect everyone – institutions and society. And I can imagine that in most if not all companies we have Harvard trained marketers, economists who have come up with several business plans to help achieve sustainable competitive edge. However, it’s less about the marketing strategies but more about their relevance to the consumers at this point in time and how they are seamlessly executed.
Peak is an iconic brand that is truly Nigerian. With over 60 years in the market, the brand has shared the passion, happiness, successes, aspirations and fears of Nigerians. We’re committed to nourishing Nigerians with quality dairy nutrition, as such Peak will continue to increase its relevance amongst its consumers and continue to provide the value our beloved consumers deserve.
At a time like this, consumers usually feel in some way neglected by their brands. It’s like brands are unsympathetic and indifferent to their circumstances and do not proffer ways to support them. Because it’s recession, consumers feel embarrassed and it’s as if they are looked down on by brands as all what consumers are offered are promotions and discounts. In our own case, however, we are here for you (consumers) helping you in these difficult times. However, focusing on price comes with its disadvantages as well. It might seem the brands are closer to consumers but at the end very few succeed in building loyalty. Peak will continue to leverage on its premiumness; highlighting its strong differentiating values and reinforcing the brand’s promise to continue to be with them while they pursue their aspirations and bring their dreams to reality via premium quality dairy products. Peak has been here with them for the last 60 years and will continue to support them emotionally and functionally.
What will you consider as the general brand strategy for the Peak milk brand and in what ways have you been able to communicate this to the consumers?
Peak, besides being the iconic brand and leader in most of the dairy categories and a heritage of 60 years, it’s our responsibility and passion to stick with our consumers and continue to provide value for them. We will continue to engage our consumers by emotionally connecting and rationally assuring with our diverse portfolio to meet different needs of our consumers. We will leverage on different and relevant touch points to engage our consumers especially at the point of purchase. Peak as a brand has a strong sense of purpose of providing quality dairy nutrition to help our consumers realise their full potential and ‘Reach their Peak’. We will stay consistent with our purpose.
Your brand has been the market leader in its segment for several decades, what would you say is the most effective way for a milk brand to engage consumers in the Nigerian market?
As social creatures with an evolved social mind, we are inclined to bring to life everything from living to nonliving – we give a human face to the world around us as it helps us comprehend better. For Peak, it’s about bringing the brand alive to our consumers. Everyone loves Peak; as a result, there is no discrimination. Consumers have the liberty to do what they want with their brand; together it’s about having a more memorable and communicable relationship.
Peak helps to make special occasions even more special. We ensure that every consumer’s touch point with the brand reiterates and reinforces the Peak promise and open the doors to establish a long-term relationship with them that goes beyond the initial purchase.
Today, Nigerians are bombarded with a lot of branded messages daily than ever before; likewise they have more control over the type of messages they see, hear, and engage with. They can choose which brands to follow online and offline. They navigate from one content and communications source to the other – digital, TV, Radio, events, etc.
We create compelling content – reference: recent Peak Sweet Mother Campaign. We build on experiences to connect with our consumers and also use influencers to open consumers to the world and possibilities of Peak’s goodness. We adopt an integrated approach to communicate value to consumers taking regional peculiarities into consideration.
In one word how would you describe the Peak Milk brand?
Goodness. In the last two years we have seen a lot of repositioning in the milk segment especially from your competitors. Some of them have rebranded and the frequency of marketing campaigns has increased. Others have even secured equity investments from major multinationals.
Does that put a bit of pressure on you as the market leader?
Increasing competition in any category only benefits our consumers, because it removes arrogance and starts to keep consumers as the epicentre. Which is why we at Friesland Campina welcome this and also realize the end benefit to our consumers and category in general.
To us: It’s a great source of motivation. We knowing that our competitors are making efforts to win the mind and heart of our consumers, this is what gets us out of bed every morning to go out there and maintain our leadership position. It helps to generate new innovative ideas, It keeps our eyes on the ball; we continue to focus on meeting the needs of our consumers, and continuously motivates us to reinvent ourselves.
Also last year Peak Milk turned 60 in Nigeria. What has been your staying power in this market, especially with regards to marketing?
We are proud to have been building strong families from generation to generation. Peak 60th Anniversary campaign was used to take people back to where it all began. We celebrated the brand’s birthday through the power and beauty of our product. Everyone has a direct relationship with the brand; there’s always a Peak story -while growing up the Peak cans helped to fuel dreams and aspirations. Hence, we developed a 360-degree all year round campaign that reminded consumers about Peak’s heritage, made them smile as they reminisced about the good old days and for the young consumers say “Wow, I didn’t know that!”
Lastly, we had a mega consumer promotion where we shared the brand birthday spirit with our consumers.
Looking on into the future, we see one that’s bright. Regarding our marketing activities, it’s about telling the truth always. Several consumer research suggests that consumers trust Peak. It’s number 1 in nutrition and taste. For an iconic brand, integrity is very important. We’ll continue to protect this trust.
Over the years, you have sustained a brand strategy that positions Peak Milk as a family brand, was that the inspiration for your recent Mother’s Day campaign? How well has the campaign resonated with your consumers?
While Peak is a family brand, the role of the mother in ‘unselfishly’ helping the other members of the family reach for their Peak cannot be denied. So our mothers day campaign was to celebrate she who in different ways support the members of her family (no matter the age) to realise their dreams.
And because she is so special, Nigerians aligned with the campaign to celebrate their mums.
What are your marketing projections for the next five years?
Nigeria and Nigerians are leap frogging and thus the marketing fraternity would need to continuously stay ahead of the curve. I would say that marketing in the next five years would revolve around the 3 Ds namely: digital, decision and diverse. When we talk about digital , we mean moving from monologue to conversation. Being with the consumer where ever he/she is. The measurements will be more real time and social listening would become even more critical. In terms of decision, we are taking marketing decisions that would become more real time and thus agility would become the name of the game. Finally, in terms of diversity, we mean think this is the new name of the game. Consumers are demanding more options and thus diversity in portfolio and consumption. The consumer segments between the millennial and the rest will also become more diverse and thus marketing activities of ‘one size fits all’ will not work.
