THEDEMOGRAPHYOFNIGERIA

Nigeria:
36States
774LocalGovernmentAreas(LGAs)
Population170million(est2012)
Surfacearea=923678sqkm
StructuralAge
014yrs=41.8%
1565yrs=55.9%
65+yrs=3.2%
Populationgrowthrate=2.5%
Urbanizationrate
50%(2010)
3.5%annualrate
DemographicsFoodForThought
Demographics
Population170million(Nat.PlanningComm.)
Populationgrowth2.8%perannum
AgeStructure:
014years: 41.8%(Male,43.5%;Female,39.9%)
1529years: 24.6%(Male,23%;Female,26.4%)
3044years: 16.7%(Male,15%,Female,18.7%)
4559years: 10.4%(Male,11.1%,Female,9.7%)
60yrs&above: 6.4%(Male,7.5%,Female,5.4%)
Source:FOSReportofLivingStandardSurvey2003/2004,p28

2/3rdofPopulationunder30years

CONSUMPTION!!!!!!!CONSUMPTION!!!!!
 The Future is Great

Nigeria has the potential

to become Africas largest
economy and a major player
in the global economy by
virtue of its rich human and
material resource endowment
SALESMANAGEMENT
TheFMCGIndustryinNigeria
Characteristics of FMCG & B 2 B Market

Highly competitive, fragmented but with few dominant players

Dominated by MNCs(+Asians)

Price-driven

Open Market-driven

Cash-driven ?
Indications
Competitive

PriceSensitivityCommoditisation?

ImpulsePurchase

TradeChannelMakeUp&Influence
Redefining Competition

Others

Food Shelter

Consumers
Naira
GSM Booze
Companies Companies
Lottery
Companies
Competitiveness

LowCost
Costmanagement
Productivity
Economiesofscaleandscope
DistributionClout
Availability
Affordability
StrongBrands
Awareness
Acceptability
 Implications:
Characteristics&Indications.
FightforConsumersShareofPocket/Shareof
Wallet
FightforTradeShareofPocket/ShelfandShop
Space.
 KeyElementofB2BandFMCG
SuchProductsmustbeflyingofftheshelvesandfloor
intoConsumersHandsandHomes.
Iftheyareslowofftheshelvesandfloor,weshouldbe
worried!!
MarketisIntenselyCompetitive..

TheSalesForceHaveaMajorRoletoPlayto
GetthemMovingofftheSales/RetailShelves.
 Emerging Trade Structure

Retailers and Farmers are becoming too powerful

Distributors/wholesalers margins are getting eroded because of

pressure from retailers.

Price cutting and underselling at the distributor/wholesale level

Distributors putting companies under pressure for improved trade

incentives.

In FMCG, sales in neighborhood groceries are growing at the expense of

open markets.

Companies are seeking distributors exclusivity

Companies empowering distributors-Salesmen, computers, admin

staffs, guaranteeing bank credit facilities
SalesForceRole.
OurRoleIsEvolvingtoThatofManaging
TheChannelsOfDistributionToOur
Advantage.

ThisCanOnlyComeWithThoroughand
DeepUnderstandingoftheTradeChannels.
OurTradingEnvironment
InformationNeededForEffectiveness

TradeChannelStructure
TradeCensus

PurchasePointsByProductCategory
TradeMarginInfluencetoSalesOut.
TRADECHANNELARCHITECTURE&RTM
FACTORY
IndirectChannel DirectChannel

PrimaryDistributors/Wholesalers
Franchiseshops

SubDistributor/Wholesaler(Market
Largeretailchainstores&Major
Hubs/Depots)
Supermarkets

Retailer(Traditional
Independent)Pharmacy, Hotel/Bar/Restaurants/Canteens
NeighborhoodStore,Super (HORECA)
Markets,FastFoods,
Aboki/Malam,Kiosk,Market
Shop,bars,clubs
Institutional
MobileTrade(Hawkers,Bicycles, (School/Universities/Govern
PushCarts,Trolleys,Wheelbarrow, ment
IceCreamCarts
Institutional
(Canteen/Barracks/Kiosks/Churches/School/
Universities/Government
ShopInMarket(SiM)

CONSUMER
TRADECHANNELARCHITECTURE
TRADECHANNELARCHITECTURE
TRADECHANNELARCHITECTURE
 TradeChannelsDefinition.
WhatDistributionandCustomernetworkStrategyto
Play?
DistributorshipandManagement.

WhatTradeChannelsShouldWeCoverDirectly?

WhatSalesForceNoandStructureSuitsMyStrategy?
ChannelFocusORBrandFocus?

 DISTRIBUTION FOOTPRINT
Sokoto
Factory located at Ojota,
Ikeja, Jos, Oregun
Gusau Dut
se The regional hubs or
depots are Lagos, Onitsha,
Kano
Borno Ibadan, Port Harcourt, Jos,
Kaduna, Makurdi, Aba
Zaria Enugu, Owerri, Uyo and
Abuja.

Gombe Registered 3rd party

Bauchi
Kaduna transporters move stocks
from Lagos to the regional
Niger
hubs or straight to
customers.
Yola
Abuja Jos
Taraba Redistribution at the
regional hubs are carried
Ilorin Nasarawa out by Field Sales
Executives across the
Ekiti country using light Pick-up
Ibadan Kogi vans.
Osogbo
Akure Makurdi
O
Ondo re

Lagos Beni Enugu

Onitsha

n
Take off Ebonyi
point
Asaba North-East
(LAGOS) Warri Owerri
Calabar & West
South-West
Aba South-East
Bayelsa Uyo South-
PH South
SalesForceStructure
SalesForceStructureShouldAlignwith
IdentifiedTradeChannelStructure

ChannelFocusSetByChannelType
Product/RangeSpecialisation
ORBoth

ThisDecisionDesireSomeThoughtasOur
RangeExpands.
SalesforceRoleExtra.
CustomerRelationshipManagement

ServiceisGeneric
Expected&EasilyCopied
RelationshipisveryPersonal
DifficulttoCopy.

GoodRelationshipCanEnlistNumerousCustomer
SalesmenforOurCompany.
CustomerService
Afewthoughts
 OurVision

Tobethemarketleaderinall
ourchosenmarkets,
providingsustainablevalue
toourcustomers
 OurMission

TogrowourToplineatthrice
therateofGDPgrowthin
NigeriaatablendedEBIT
profitabilityof25%.
 ThePreeminenceofCustomer
Service
The pre-eminence of customer
service in the strategy of the
Group is underscored in both the
vision and the mission of the
company.sustainable value to
our customers and blended EBIT
profitability of 25%.
 ThePreeminenceofCustomer
Service
John Egan Former Managing
Director/CEO of Jaguar Cars (UK)
once said :
Business is all about satisfied
customers. Without satisfied
customers there can be no future
for any commercial organization
 Whoareyourcustomers?
The External Customer
These are your traditional customers, the people
who buy our products and services. Without them
there would be no sales, no business, no salaries;
and of course the shareholders who provide the
funds
The Internal Customers
Our employees who work in the company. They
need the same tender care we give our external
customers.
 TheCustomerChain
The relationship between internal customers and
external customers is what forms the customer
chain.

Remember, poorly treated employees treat

customers just as poorly.

How good is your customer chain?

 WhyFocusonCustomerService?

One word: Competition

Add a second word: advantage

Put them together: Competitive

advantage
 Definition
What is customer service and how
can we improve it?
Customer Service is
satisfying the needs of the
customer at an acceptable
cost to the company
 Definition
Customer Service is not just for the sales
force and marketing team, all other
departments including
Manufacturing/Operations,
Supply chain, HR, IT, Compliance
Quality assurance etc are vital in meeting the
customers needs.
If we deliver a product and the quality is bad and
it is delivered late that affects customer service
just as much as a rude sales person.
The whole BU must pull together to provide
excellent customer service.
 ChannelFocus

Thecustomerserviceteamsinthegroup
shouldfocusonthefollowingkeychannels:
Wholesale
Retail
Foodservice
Professional(IndustrialCustomers)
 UACNCustomerServiceImperatives
To leverage the resources of the group and the expertise
and facilities of our warehousing network pan Nigeria
To ensure higher sales at a lower cost using excess fund
from the group.
To ensure more effective geographical market coverage
and aggressively cover the gaps in the distribution of our
FMCG and B2B products and services.
To ensure that sales people are better able to monitor
changes and trends within their markets.
To ensure increased customer knowledge and better
customer service particularly in our Quick Service and Fast
Casual Dining Restaurants
 TakeAway!!!
Towinthewaratthetradeend,wemustrestsquarelyona
tripodofcustomerservice;thistripodiscalledQSR

Quality
ServiceRelationship
THE CUSTOMER WHO NEVER COMES BACK

I am a nice customer. You all know me, I am the

one who has never been heard to complain, no
matter what kind of service I receive

Sometimes whilst waiting patiently to be served, a

customer who came in after I did is served before
me, but I dont utter a word of complaint when I am
told Oh, I didnt notice you.
THE CUSTOMER WHO NEVER COMES BACK

Its the same when I go into your depot to do

business with you. I dont throw my weight around. I
try to be thoughtful of the other person. If I am
attended to by a snooty or off-hand officer who is
upset because I want a little more information before
making up my mind, I am as polite as I can be. I dont
believe rudeness in return is the answer.
THE CUSTOMER WHO NEVER COMES BACK

I never kick or nag, I never criticize and I wouldnt

dream of making a scene, as Ive seen other people do
in public places. No, Im a nice customer and Ill tell
you what else I am THE CUSTOMER WHO NEVER
COMES BACK!

That is my way of reacting when I get poor services.

Thats why I take whatever you hand out, because I
know Im not coming back.
THE CUSTOMER WHO NEVER COMES BACK

It is true that this does not relieve my feelings

immediately in the same way it would if I told you

what I thought of you; but in the long run it is far, far

more deadly than flying off the handle.

THE CUSTOMER WHO NEVER COMES BACK

He laughs loudest, they say, who laughs last, I laugh

when I see you frantically spending your money on

expensive advertising to get me back, when you

could have kept me in the first place if I had been

given proper service, a few kind words and a smile.

THE CUSTOMER WHO NEVER COMES BACK

Look upon the customer who complains as the one who is

doing you a favour giving you an opportunity to correct
something which is probably wrong with your company.

It is a sad fact that for every customer who does complain,

at least TWO others are like me, the nice customer who
goes away NEVER TO RETURN!
THE CUSTOMER WHO NEVER COMES BACK

Thissentencecostnothing,imeannothing
whatsoever!!!
Sirwearesincerelysorryaboutthat,
pleaseacceptourapologiessir

the nice customer who goes away

NEVER TO RETURN!