Cadbury Nigeria Plc (CNPlc) is a leading manufacturer of high quality fast moving consumer goods in the confectionery, food drinks and food products sectors. Our quality brands are enjoyed throughout the entire nation as well as our export markets around the world.
This analysis focuses on the company's major flagship product - Bourvnita.Bournvita is a premium brand in the food drinks category. It is a market leader and has been in the Nigerian market for almost 40 years. The target market for the bournvita brand is the 2-21 years age bracket. However, its prime consumers are children (4-12+) years. This will be the focus of this write-up.
Communicating with customers: strategies ; systems used by CNPlcThe term "customer" used in this analysis refers to "wholesale distributors" in the Cadbury Nigeria context and not the consumer as might be portrayed by the question. However I have also commented briefly on communication with the consumers as well.The slide above shows the distribution channels for the CNs brands. Hence, subsequent references to the customer will be taken to mean the wholesalers.A brief discourse on CNs distributors (wholesalers)As mentioned the distributors are wholesalers who purchase goods directly from CN.
CN refers to them as customers. The channel is a 5-level one. It is worthwhile to mention that CN has 3 levels of distributors, but we will focus on only one in this paper. These are:* Strategic customers* Key customers* Other customersStrategic customers are most vital to sales operations.What are the strategies ; systems used to communicate with CN's customers?1. Market Storms: This is a form of direct marketing campaign in which a team storms a market in an area with a lot of music and product posters, as well as product samples.
The aim of this is to reach potential customers. Usually, the market storm team visits each interested shop to explain what it entails to be registered as a distributor for CN. Research has given evidence to the fact that some brands sell much better than others in certain parts of the country and amongst peculiar tribes.Hence, such brands are usually targeted as potential customers in markets located in those areas. E.
g. bournvita is in greater demand in the urban areas of Nigeria; hence storms will be targeted mainly at markets in these areas. This strategy can also aid in the evaluation of alternatives stage of the decision making process, where customers need to determine the choice criteria of products they are interested in. This is key in attracting potential customers.
2. Country wide sales depots: CN has sales depots in 27 locations out of the 31 regional states in Nigeria. This implies that they are quite close to their customers. Trading companies, (who sell products in bulk to wholesaler customers and so forth till it reaches the consumer), operate these depots, in conjunction with CN staff.
The CN team is made up of a customer services manager (CSM), a sales clerk and an admin staff. The CSM's responsibility is to manage relationships with the customers through several means. This is achieved through visitors to customers, daily updates on stock levels, order follow-ups etc.Customer relationship management (CRM) however, is the key strategy developed here. In Nigeria, relationships are vital to maintaining business deals. Very often these wholesalers lack formal education.
However, they have invested in their business several years ago (as much as 35 years in some cases.) Hence, one can imagine the Herculean task of communicating with such a group. But the companies are left with no choice, as that is the nature of the Nigerian market. Bear in mind, that CNs competitors use the same wholesalers in most cases, so it is really a fierce battle.Like one salesman said: "it is a crazy market".
The CRM methods in use are worth commenting on; hence, I will give a brief description on this, which is a key initiative. These sales depots ensure that CN is close to their customers, both potential and existing ones. A key deliverable of the regional offices is also to ensure that comprehensive information about CN as well as product offerings are available for potential customers.3. Customer relationship management: Relationships are very key to the buying process in Nigeria. The core task of the CN CRM is to ensure that the customers choose Cadbury as their preferred choice in business.
The CRM makes use of both people(direct marketing/personal selling) and processes(above the line communiation using electronic and print media . Hence CRM provides the personnel, tools and assistance that are vital to ensuring that communication with these customers is effective. In addition, there are 2 National Customer Care mangers whose job it is to ensure that CRM methodologies are being adhered to at the depot level. This plan is key to the post purchase evaluation in the decision making process, in order to ensure repeat purchases by existing customers.
4. Customers' Business forum: This is held twice yearly in each regional grouping countrywide. Activities include sharing the company's vision and strategy to customers, assistance with training the staff of these customers to equip them with business skills, friendly and courteous service delivery, as well as celebrating good sales figures and sharing insights into why performance may have declined. Giving customers sales figures for the various products and rewarding customers who have had outstanding sales turnover; these customers are usually given bonuses.
Customers are also advised on how to grow their business. Communication is usually 2-way during these activities and CN seeks to learn from her customers as well.5. Online customers portal: This is relatively new, and was implemented to further provide a communication channel between the company and her customers. CN undertook to train the customers and their staff free of charge to equip them with the skills needed to operate use the facility. This has eased the flow of communication between both parties.
Customers can place orders online, make suggestions, check their bank statements, comment on existing market challenges and even report erring/non-responsive CSMs to more senior personnel. This resource will also aid potential customers, seeking information about possibilities with doing business with CN. Indeed, a new wholesaler was appointed last year through this interactive portal.6. Various Incentives: These include van/truck gifts to provide logistics support to customers. Bonuses for excellent performance.
Credit facilities to large and long-staying customers. These incentives are a means of communication as the motive behind them is to acknowledge the importance of these customers to CN's business. In this part of the world, incentives are very attractive to outsiders (in this case potential customers).Communication to consumers is usually done as follows:1. Trade promotions: The most important being the Bournvita Magic Flight, where 50 children are selected through a luck dip. Kids (ages 8-12 years) are required to write an essay on what they like about the bournvita brand.
2. TV commercials & Programs, Radio jingles : Through buying of air time for children's cartoons, CN reaches her target market. The adverts emphasize the vitamin content of bournvita. Hence it is not unusual for children to respond the question why do you like bournvita, with "it has vitamins which are good for me"3.
Bournvita Brain match competition: designed for the older children (10 years and above) this involves organizing inter-school quiz contests. There is a 2-way communication here, as kids are usually given questionnaires on their bournvita experiences.4. School Prize-giving day: targeted at the elementary schools, staffs of CN visit selected schools with gifts at the end of the school year. Usually, prizes are giving to top students.
In addition, the event is used as an opportunity to talk to the children andBenefits to suppliers and buyers.Suppliers: In this context, this refers to the supplier of the brand i.e. Cadbury Nigeria. The benefits derived from these communication strategies ; systems are as follows:* More sales for CN; satisfied customers translate to repeat purchases which in turn generates demand. More demand implies more production.
* Higher profit margins ; return on investments; as a fall out of more sales, this necessarily will translate into more profits as well.* Brand integrity is maintained; through frequent interactions with customers, it is easier to maintain standards and listen closely to the market.* Brand loyalty: effective communication creates an impression in people's minds. Hence the customers become loyal to the brand, which leads to sustainable competitive advantage for the suppliers.
