Description
This is a presentation about market analysis of nigeria beer.
Background
• Nigeria - fledgling democracy • Alcohol market growing at around 8% p.a. • India manufactures 2700 million litres of alcohol annually • Production growing at around 10% p.a.
Scenario in India
• India’s beer production increasing at about 11% p.a. • Second highest growth rate in Asia after Vietnam • Utilisation of 60% of production capacity • Beer makes up for only 4% of liquor market • Exports mainly to neighbouring countries
Scenario in Nigeria
• Beer accounts for 96% of Nigeria’s total potable alcohol consumption • Beer volume is 12.67 million hectolitres • Beer market growing by 13-14% p.a. • Per capita consumption is 6.7 litres
• Market for spirits is increasing at 4% p.a. in Nigeria • Rum has the maximum share i.e. 23.8% • India is the largest whisky manufacturer in the world • Indian whisky is actually considered Rum globally
Demographics
• More than 24 cities with population more than 100,000 • Population growth rate of 2.5%p.a. • Muslims and Christians constitute almost 50% each of the population • Majority of Muslims in the northern part (Sharia law in place in most of the region) • Majority of Christians in the southern part
Competitors
• • • • • Nigeria Breweries(NB): 66.3% of total share Guinness Nigeria: 25% of total share Heineken has a majority stake in NB Diageo owns a 46% stake in Guinness Nigeria Other breweries include Benue Brewery, Olympic Drinks, Sona Breweries and Consolidated Breweries
Indian players
• UB group – 48% beer market share • SAB Miller – 37% market share • UB group brands: Kingfisher, Zingaro and Kalyani Black, McDowells • SAB Miller brands: Haywards, Royal Challenge, Knock Out and Foster's
SWOT Analysis for exporting Indian brands to Nigeria
Strengths • • • • Good quality International sounding names Low production costs Based in a rapidly developing and financially stable country
Weaknesses
• Very less experience of exporting • Regulations in alcohol content • Absence of presently established distribution network • Unknown brands globally
Opportunities
• Increasing number of Nigeria’s young population being open about consuming liquor • Beer market growing by 13-14% p.a. • Liquor market growing by 4% p.a. • Average cost of a beer in Nigeria is US $2 which is almost twice of that in India. A beer is more costly than a music album • Excise duty on alcohol reduced from 40% to 20% • Nigeria is a football crazy nation
Threats
• Sharia law in parts of northern Nigeria • Indian brands not viewed as favourably as western brands • Established players in the market manufacture locally • Very high import duty on alcohol i.e. 75.3% • Below average infrastructure • High inflation, low levels of income
Objectives
• Establish and rapidly improve levels of retail distribution • Achieve a market share of at least 5% in the first 18 months • Reduce marketing expenditures sufficiently to achieve higher profits • Identify opportunities for profit making complimentary products • To break even within 4 years
Strategies
• Target market will mainly be the middle to upper middle class • It will be positioned as a very high quality product with a good taste • Price: It should be affordable but not very cheap • Place: It should be launched only in the big cities of Lagos, Ibadan, Kano, Pot Harcourt, Benin city, Zaria, Maiduguri, Jos, Oyo, Aba, Abuja, Bida, Okpoko, Bauchi, Mubi, Ondo and Shagamu
Strategies continued….
• Distribution Outlets: use of sales agents as well as supermarkets. Will bring more visibility • Sales force will be paid more than the competition with a high percentage in sales commission • Advertisements mainly in the print media which is popular among the general public • Market Research to go on continuously in order to capture latest trends • Have a contingency plan in case there is a problem outside one’s control like a worldwide economic recession or the entry of an unexpected competitor
Thank You
doc_867022148.pptx
This is a presentation about market analysis of nigeria beer.
Background
• Nigeria - fledgling democracy • Alcohol market growing at around 8% p.a. • India manufactures 2700 million litres of alcohol annually • Production growing at around 10% p.a.
Scenario in India
• India’s beer production increasing at about 11% p.a. • Second highest growth rate in Asia after Vietnam • Utilisation of 60% of production capacity • Beer makes up for only 4% of liquor market • Exports mainly to neighbouring countries
Scenario in Nigeria
• Beer accounts for 96% of Nigeria’s total potable alcohol consumption • Beer volume is 12.67 million hectolitres • Beer market growing by 13-14% p.a. • Per capita consumption is 6.7 litres
• Market for spirits is increasing at 4% p.a. in Nigeria • Rum has the maximum share i.e. 23.8% • India is the largest whisky manufacturer in the world • Indian whisky is actually considered Rum globally
Demographics
• More than 24 cities with population more than 100,000 • Population growth rate of 2.5%p.a. • Muslims and Christians constitute almost 50% each of the population • Majority of Muslims in the northern part (Sharia law in place in most of the region) • Majority of Christians in the southern part
Competitors
• • • • • Nigeria Breweries(NB): 66.3% of total share Guinness Nigeria: 25% of total share Heineken has a majority stake in NB Diageo owns a 46% stake in Guinness Nigeria Other breweries include Benue Brewery, Olympic Drinks, Sona Breweries and Consolidated Breweries
Indian players
• UB group – 48% beer market share • SAB Miller – 37% market share • UB group brands: Kingfisher, Zingaro and Kalyani Black, McDowells • SAB Miller brands: Haywards, Royal Challenge, Knock Out and Foster's
SWOT Analysis for exporting Indian brands to Nigeria
Strengths • • • • Good quality International sounding names Low production costs Based in a rapidly developing and financially stable country
Weaknesses
• Very less experience of exporting • Regulations in alcohol content • Absence of presently established distribution network • Unknown brands globally
Opportunities
• Increasing number of Nigeria’s young population being open about consuming liquor • Beer market growing by 13-14% p.a. • Liquor market growing by 4% p.a. • Average cost of a beer in Nigeria is US $2 which is almost twice of that in India. A beer is more costly than a music album • Excise duty on alcohol reduced from 40% to 20% • Nigeria is a football crazy nation
Threats
• Sharia law in parts of northern Nigeria • Indian brands not viewed as favourably as western brands • Established players in the market manufacture locally • Very high import duty on alcohol i.e. 75.3% • Below average infrastructure • High inflation, low levels of income
Objectives
• Establish and rapidly improve levels of retail distribution • Achieve a market share of at least 5% in the first 18 months • Reduce marketing expenditures sufficiently to achieve higher profits • Identify opportunities for profit making complimentary products • To break even within 4 years
Strategies
• Target market will mainly be the middle to upper middle class • It will be positioned as a very high quality product with a good taste • Price: It should be affordable but not very cheap • Place: It should be launched only in the big cities of Lagos, Ibadan, Kano, Pot Harcourt, Benin city, Zaria, Maiduguri, Jos, Oyo, Aba, Abuja, Bida, Okpoko, Bauchi, Mubi, Ondo and Shagamu
Strategies continued….
• Distribution Outlets: use of sales agents as well as supermarkets. Will bring more visibility • Sales force will be paid more than the competition with a high percentage in sales commission • Advertisements mainly in the print media which is popular among the general public • Market Research to go on continuously in order to capture latest trends • Have a contingency plan in case there is a problem outside one’s control like a worldwide economic recession or the entry of an unexpected competitor
Thank You
doc_867022148.pptx