BRAND REVIEW: ARM PENSION – Tomorrow is Looking Good
One characteristic of a good brand is identifying a need and proffering the best solution for it. Having identified people’s desire for a secured future, ARM Pension was established. With the slogan, “tomorrow is looking good,” the brand serves as a form of assurance to its clients.
In the intervening years, ARM Pension has become associated with financial security and has gained the trust of many customers. For retiring workers, the brand is viewed as a safety net to fall back on. Let’s find out how it has gained this trust overtime.
BRAND HISTORY
In December 2005, ARM Pension Managers Ltd was granted license, amongst seven other pioneering Pension Fund Administrators (PFA), by the National Pension Commission. ARM Pensions which is a subsidiary of Asset & Resource Management Company Ltd (ARM), has evolved to become a notable brand in Nigeria. The company has gone ahead to earn the reputation of a leading, reputable investment management firm with a very successful track record of protecting and growing investments for private investors and institutions for many years.
Asset & Resource Management (ARM) Group, at the initial stage, began with the vision to be the fastest growing, most efficient and customer-friendly PFA in the country with an aim to constantly deliver value to clients. Over time, ARM Pension has stayed true to this vision, and continues to make effort towards delivering excellent customer service. The brand uses customer feedback collected from different channels to improve its services.
Over the years, the company thrived by fulfilling the dreams of many workers who aspire to maintain a sufficient and stable financial lifestyle even after retirement. The brand operates with principles that tend to preserve pension assets and investments and yield returns through an excellent administration. ARM Pension works with a philosophy to deliver long-term value added growth and manages risk.
Knowing the value customers add to the company, during its tenth anniversary in 2015, the brand launched a remarkable campaign tagged #Iam10 with the target to appreciate customers for their patronage. This creative approach provided a platform for users to create ambitions in pictorial formats and this was in line with ARM Group mantra “Realising Ambitions”.
As time unfolds, the ARM Pension continues to live up to its achievement as Nigeria’s most prominent and respected financial service brands. It strives to retain its reputation in Investment Management, Research and Pension Fund Management.
BRAND VISION
With a firm vision, it runs; “To be the fastest growing, most efficient and customer-friendly PFA in Nigeria, consistently delivering value to our customers”
BRAND MISSION
The brand is on a clear mission; “To provide a better future for our customers by offering superior service and value, and upholding high standards of professionalism”
BRAND VALUES
A solid brand is never complete without concrete values. ARM Pensions is founded on the following values;
- Ambition
- Proximity
- Impact
- Truth
Building trust is an unbeatable market strategy ARM Pensions has dedicated its time and effort to. Once there is trust, customers will always flood in. This brings us to the questions; how have you been able to build trust for your brand?
Written by Jennifer Chioma Amadi
Want to build a sustainable brand? Send us an email at wecare@mapemond.com
Do Business Better!
UNVOICED PERSPECTIVE: A MEDDLING INVESTOR
For the last couple of weeks, Funmi has been excited about starting up his own business. He had dreamt about this for so long that he could not believe he was just a step away from fulfilling one of his life’s goals. He had ensured that everything was in order, from drafting clear and concise vision and mission statements, to setting smart goals, to on boarding and training excellent team members. Funmi had it all mapped out, striking every dart on his target board. Yet his final success was to some extent dependent on one thing, investors!
Funmi, having played his role, began to search for potential investors and means of financing his business. Most of the investors that had shown interest in the business always asked for an outrageous percentage cut from the profit. After several setbacks, Funmi finally found an investor who was satisfied with the twenty percent shares.
After documents were signed and the deal was done, Funmi and his team set off to a smooth sail. They got their furnished office space, acquiring necessary tools for work and opened up the door for clients. A year later, when the investor had noticed the increase in sales and the accelerating progress of the company, the music changed for Funmi and his team.
Suddenly the investor wanted more percentage from the profit being made. His demands for daily reports and threats of withdrawing his investment that ran into millions of naira became all too overwhelming for Funmi. He thought of suing or paying the investor off but that would be disadvantageous for his firm.
Funmi continued to watch the investor parade himself as though he was the owner of the business. He spoke too authoritatively during board meetings and never hesitated to snap at workers who did not deliver on their KPIs. From the corners of his eyes, Funmi watched him, holding back the fury in him. Continuously Funmi wondered how a simple business deal could turn sour and initial helpers turn enemies. Still Funmi insisted on keeping his enemy closer until he figured what to do with him.
**********
Like Funmi, several business owners have encountered such unpleasant business interference. Though the agreements between both parties might have started out smoothly only to take a different outcome at the long run.
It is likely that most would be overwhelmed and confused without a clue on how to resolve these kinds of issues. They are faced with a dilemma of making critical decisions that could either make or mar all they have worked for. Sometimes, companies go bankrupt trying to pay off their investors. Oftentimes, they are either shut down or sold off due to internal struggles.
How long do you think Funmi will hold this up and what is the best escape route for him?
Written by Jennifer Chioma Amadi
Do you need business development strategies? We are your go-to guys! Send us an email at wecare@mapemond.com
Do Business Better!
BRAND REVIEW: MOUKA FOAM OF COMFORT
When the day winds down and the body gets weak, every human craves for one thing, to return home to the comfort of their mattresses. For decades, Mouka Foam has been satisfying this need for soft, homely comfort. This makes it one of the most reliable and recognisable foam brands in Nigeria.
For its brand consistency, we became interested in Mouka to discover its unique features and the market strategies it has employed over the years. From our findings, Mouka Foam is not an ordinary brand and it is one worthy of emulation. Here is a bit of its history.
BRAND HISTORY
Mouka’s journey dates back to 1959 when it was founded by the Faiz Moukarim family and was located in Kano State, Nigeria. The company first started out as a factory named Moukarim Metalwood with the focus to manufacture furniture and iron beds. As the company progressed, they ventured into other products like mattress (which it is mostly recognised for), rug, duvet, pillow, etc. To stand out in its industry, the company came with a special recipe, a mind-blowing attention to quality.
In no time the company expanded to Lagos in 1972 with a rebranded name, Mouka Limited and a mission to broaden its horizon. From then on, the company has established production facilities in Benin and Kaduna, from where it distributes to other states in Nigeria.
With little or no competition, Mouka Limited rose to the top in its industry and earned reputation as a leader in the manufacturing of polyurethane-based products in Nigeria. The company has gained more market shares in Nigeria and the ECOWAS sub-region. The brand reaches its customers through its thousands of distributors and sub-distributors all over the country.
Exhibiting its leadership position, in 1992, Mouka Limited spearheaded the end of carbon-flouro-carbon (CFC) materials during production. Also in 1999, it became the first foam company to receive ISO 9001 certification (Laboratory) in Nigeria, thereby setting the pace for other brands.
Mouka Limited has not only built a brand but has carefully selected a team of dedicated individuals to manage the company. Its staff are committed to the brand’s values and vision.
BRAND VISION
“To be the clear leader in the polyurethane business in Nigeria.”
BRAND MISSION
“To add comfort to life.”
BRAND VALUES
The way an apple never falls far from its tree, is the same way the brand’s services never falls below its values. These values continue to drive it smoothly on the success path.
- Passion
- Integrity
- Innovation
- Performance
- Excellence
BRAND STRATEGY
From the onset, Mouka had established itself as a brand that produces high quality products. History has it that it was the first foam manufacturing company to offer quality warranty on its products. It has also been tested and proven by most of its customers. Through its standard of production, the company continues to gain more trust and recognition in the market.
Mouka Limited has chosen the innovative approach in executing its business. It utilises both recent technology and the will power of its team to ensure the brand’s mission is achieved and customers get the comfort they deserve.
The brand boasts of a rich network of distributors, sub-distributors and Sleep Galleries positioned in different parts of the country. Due to its efficient production facilities in strategic cities, the brand remains a solution provider and supplier in the foam industry.
Written by Jennifer Chioma Amadi
Do you aspire to build a sustainable brand? We are just an email away at wecare@mapemond.com
Do Business Better!
BUSINESS INSIGHT: NIGERIA’S SLOW PACED ECONOMY AND THE POTENTIALS FOR ENTREPRENEURS
Countries are usually categorised as developed, developing and underdeveloped. For years, based on the milestones Nigeria had marked in the past, it has been listed among developing countries in the world and sometimes make claim of being one of the most developed countries in Africa. However, a question has hung in the air for years; whether Nigeria is a developing country based on past glories or an underdeveloped one due to all the setbacks it’s been having.
A guest on a radio station mentioned that Nigeria has not really been exhibiting signs of a developing country when compared to its counterparts. The guest indicated that there hadn’t been much progress in any of the sectors, in terms of expertise, development, infrastructure and growth. When judged using the qualities of developing nations, Nigeria might not be meeting the standard.
Digging deeper into facts rather than dwelling on an opinion, we stumbled on a research carried out in 2018 that showed a list of ‘top 20 most developed countries in Africa’ which excluded Nigeria. The study focused on the gross domestic product (GDP) these countries have developed over time. Leading the top five on the list was Seychelles which had $16,332 GDP per capita, following behind was Mauritius with a GDP per capita of $10,437, Algeria was next with a GDP per capita of 4,669, Tunisia had a GDP per capita of $3,531, Botswana had a GDP per capita of $8,443 and it goes on till the 20th.
Analysing the list further, we discovered these countries shared some similarities which is a diversified economy unlike Nigeria. Seychelles for instance, though known as a tourist destination, has invested on other revenue sources such as fishing, processing of agricultural products, building of boats, etc. Over time, these ventures have brought income and sky-rocketed the country to the top in the African continent.
Coming home, can we say the Nigerian market is developed or open to development? With a GDP per capita around $1,951 which was determined in 2017, Nigeria can hardly boast of sustainable development. This figure tells a lot about the slow paced or declining growth. The root of this slow growth is always linked to the fact that the Nigerian market had known one product, crude oil, for many decades. The oil boom might have brought some glories but still hasn’t taken the economy where it ought to be.
Moving forward, more products, with emphasis on products that are made in Nigeria, need to introduced to the Nigerian market. This should serve as a challenge to both new and existing entrepreneurs. While the Nigerian market is full of competition amongst businesses, it has been observed that there are too many similar ventures. This has left little or no room for improvement and socioeconomic development in the country.
From the statistics shown, it is safe to say that visible development will start from the market. This obviously gives businesspeople an assignment to answer the question, what new idea, product or services are they bringing to the table?
Written by Jennifer Chioma Amadi
Do you want to introduce a new product to the market? Let’s work together with you. Kindly send an email to at wecare@mapemond.com
Do Business Better!
BUSINESS INSIGHT: SACHETIZATION, WAY TO GO?
Business is synonymous to a game where only the best players win. The best players are not those who start the game but those who swim with the tides of change and develop different strategies as the game gets fiercer. Like the outcome of a game is unpredictable, so is the same for the Nigerian market.
With the swinging economy, the Nigerian market has never been more unpredictable in terms of purchasing power that over time has affected disposable income. Both individuals and businesses have felt the weight of the economic challenges. Though the burden is lighter on others, everyone shares in the consequences of an unstable economy.
This has led to reduced patronage for many businesses because not everyone can afford too many products at once and they continue to look for cheaper alternatives. While many customers can no longer afford to buy in bulk, companies have devise means of still reaching customers at the bottom of the pyramid.
Observing the change amongst consumers, businesses have developed a new approach to retain their relevance and increase their customer base. Most companies have resolved to produce their products in smaller quantities, in this case in sachets. This new strategy is what Tunji Andrews, Lead Economist at Time, Trade and Commodities (TTAC), calls “sachetization”.
In a Twitter post, Tunji indicated that those unwilling to flow with the trend will be at risk of running out of business. This post could be linked to the sachet approach a major brand, Dettol, had employed to reach and retain more customers. Even though this could be considered a clever move, many of his followers connected this strategy to the unfavourable Nigerian economy.
Prior to this time other major brands such as Kellogg, Power Oil, and even tomatoes paste brands had been making their products available in sachet which has been advantageous to them as regards patronage. This is to ensure that both upper and lower class can afford the products. There is no doubt that these brands must have studied and analysed their industry to discover the best approach to tackle the economic barriers. As it seems, this strategy obviously seem to be working for them and has increased their revenue.
We can never overemphasize the need of knowing your market thoroughly. In our previous post sometime ago, we emphasized on the importance of studying your target market as an entrepreneur. Staying abreast with the latest wind of change and keenly observing the solution other brands are engaging and modifying it to suit your business, always keeps you on track.
With more brands embracing “sachetization”, we wonder what new strategies would unfold if it ever gets tougher. Yet again, what can we say, ‘when the going gets tough, the tough gets INNOVATIVE’.
Written by Jennifer Chioma Amadi
Do you need support on your business strategy? We would to work with you. Send us an email at wecare@mapemond.com
Do Business Better!
BUSINESS INSIGHT: THE EFFECT OF PURCHASING POWER
In business, there are innumerable challenges that would pose themselves as obstacles standing in the way of an entrepreneur’s success. Sometimes these seeming barriers are controllable and within the entrepreneur’s ability. While other times, they are controlled by external factors and beyond an entrepreneur’s power.
Recently, Oluwatosin Olaseinde, founder of Money Africa, on her Twitter page identified low purchasing power as one of the factors that hinder most businesses in Nigeria. She indicated that many businesses could not scale up due to limited income. This means they are financially unable to upgrade their business to meet standard. While there were many responses to this, we decided to single out purchasing power to know how it can make a business thrive or suffer.
Firstly, purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. This plays out clearly in times of inflation when the prices of goods and services are increased thereby reducing the amount of purchases one makes. Another way to view purchasing power is to compare the quantity of commodities one could buy in the 80s with a N20 note as against what it can afford today.
At every point, economic activities are always affected by purchasing power. These activities range from traders who export or import goods, to vendors selling their products and services, to consumers buying these products and down to investors. Stock prices are not left out since they determine economic prosperity. The global market is affected when there is inconsistency in a currency’s purchasing power due to too much inflation. This leads to unfavourable economic crises and outcomes – high cost of living, increase in prices of goods and services, decrease in demand, etc.
Most times, an entrepreneur has to depend on government policies and regulations to maintain a healthy economy and stable purchasing power. These policies could be favourable sometimes or it may also have terrible effects on some business who cannot meet up the changes. A way to measure the purchasing power is through the Consumer Price Index (CPI). This index is calculated by averaging the price changes. The CPI is also a tool for checking the rate of inflation and deflation in a country.
Nigeria, as a country, has had some irregularities in its currency as a result of recession both in 1991 and 2014. Though the tough times are slowly passing away, they say, the economy is yet to be restored to what it ought to be. Unfortunately, those in business and consumers are the ones faced to bare the burdens that arose with the economic instability.
Purchasing Price Parity (PPP) is one of the concepts connected to purchasing power. It is an economic theory that estimates the amount of adjustable price of an item, given the exchange rate of two countries with the aim of matching each currency’s purchasing power. This can be used to compare a country’s income level and the economic progress. Through PPP, an entrepreneur could forecast the outcome of certain economic decisions especially in terms of doing business with other countries.
Lastly, another concept to consider is purchasing loss/gain which is an increase or decrease in the quantity consumers can buy with a given amount of money. There is always a loss in purchasing power when prices are increased and gain in purchasing power when prices are reduced. If government regulations, inflation and natural and manmade disasters are not put in check, there will be more purchasing power loss.
This invariably means most entrepreneurs have to either hold their breath hoping these factors that are beyond their control will not overwhelm their businesses else Oluwatosin Olaseinde’s statement remains true.
So it is imperative for businesses to have good financial strategies in order to stay thriving.
Written by Jennifer Chioma Amadi
Do you need business strategies? We can help. Send us an email at wecare@mapemond.com
Do Business Better!
BUSINESS INSIGHT: THE FOUR FINANCIAL CIRCLES
Have you thought about why it is a struggle for many of us not to spend business money on personal needs, even with all the talk about financial discipline? As simple as this question may sound, it would take lots of people several months if not years to answer.
Whether we are counting millions or thousands, buying or selling, saving or spending, the subject of finances is one we can never stop learning about. Without exaggerating, I would say we are confronted by different financial challenges daily but for some reason, most people consider financial topics too sensitive. This is the reason why you find a good number of persons especially entrepreneurs rarely discuss their financial struggles and secretly search for ways to survive.
The quest for survival has put a reasonable number of emerging entrepreneurs in a difficult position when negotiating payment terms with clients. They often sell themselves short in exchange for any amount just to meet their present needs. This has ultimately inhibited the growth potential of so many ventures.
From critical observations backed up with research, I have summed the financial circle into four. Every individual and entrepreneur can be categorized under one of them. I have come to believe that the circle or stage one is determines their financial decisions. Here are the basic four financial circle;
SURVIVAL: This is the base level where folks practically struggle to get through each day as it concerns basic necessities like food, transport fare, shelter, etc. Folks in this circle are usually the first casualties when there’s hike in the prices of general consumer goods. However, there’s a grading within this circle just like all others, not everyone is exactly at same level.
COMFORT: This circle is just above the previous, basic things of life isn’t much of a problem here. People in this category just want to be comfortable enough to live in a good home, buy the gadgets they want, send their kids to good private schools, afford one or two trips abroad, and so on. There’s also a grading in this circle, not everyone is at the same level. Beyond that, some people shuttle between this circle and the previous one, others remain here perpetually while some others proceed to the next.
SUSTAINABILITY: At this level, comfort is no longer a person’s quest, it is settled. Folks here are more concerned with how to maintain their quality of life and create a fortune for their heirs. People here take investments more seriously; they want to own properties and assets, anything that gives them some level of security.
LEGACY: This is the stage where money isn’t a problem anymore. The world’s top billionaires belong here. They are hungry for impact; something with their names crested on it; own a football club or something of that sort, set up a foundation tackling one major problem the world laments about, or re-engineer the business itself to offer greater value to the world. By all means, they embark on legacy projects. So long as it takes money, there is nothing they cannot afford.
Not everyone starts from ground zero by the way, but everyone belongs to one out of the four circles at each point in life. I am an advocate for people to live within their means and be contented with what they have per time even when hoping and working to improve their lot.
Which financial circle do you fall under and what plans have you been making to progress in order to build your enterprise?
Written by Maple Dappa
Are you in need of financial advice and planning? We have experts on that. Send us an email at wecare@mapemond.com
Do Business Better!
BRAND REVIEW: KONGA.COM – STILL STANDING
A brand that has championed the course of online shopping in Nigeria is Konga. With its online and offline retail platforms, Konga has consistently set the standard on which other brands in its industry build on.
Having earned the game changer title in the e-commerce industry in Nigeria, Konga keeps expanding its reach and gaining more traffic. With all its accomplishment, Konga is a brand worth reviewing. Check out Konga in a wrap.
BRAND HISTORY
In 2012, a Nigerian entrepreneur and businessman called Sim Shagaya founded what we now know as the largest online mall in Nigeria, Konga. The e-commerce company has its headquarters in Gbagada, Lagos State and offers a third-party online marketplace and first-party direct retail.
The company started out as a Lagos based online retailer with a product range of children items, beauty and personal care products. By the end of 2012 and early 2013, Konga increased its merchandise categories to include home appliances, electronics, health care products, and fashion. Within this period, the company also expanded to other parts of the country.
In 2013, the company shifted its focus from being a purely first-party online retailer by launching Konga Mall, a platform for third-party retailers. This was achieved with a $10 million Series A round investment raised by the company’s investors, Investment AB Kinnevik and Naspers. With the help of the same investors, Konga was able to raise a $25 million Series B round which was considered as the largest single round raised by a single African start-up.
Struck by some strokes of an incontrollable online traffic, the site, Konga.com crashed on November 29, 2013 and operated offline for 45minutes. This was due to its Black Friday promotion which brought about an enormous sale.
Rebranding itself during the launch of the third-party retail platform in 2014, Konga changed the initial ‘Konga Mall’ to ‘Marketplace’. This new platform beat the previous internal target of 1000 merchant by featuring 8000 more. During this season, Konga experienced tremendous growth from millions worth orders. More recognition came in January 2015 as Konga was recorded to be the most visited website in Nigeria. The CEO, Sim Shagaya, also referred to it as a leader in its field.
In June 2015, Konga acquired the assets and mobile money license of Zinternet Nigeria Limited. This acquisition was used to support its premier product, KongaPay, which was a solution for cashless electronic payment. Konga, partnering Nigerian commercial banks, like Ecobank, Access bank, FCMB, Diamond Bank, Zenith Bank, Heritage Bank, UBA, First Bank and GTB, launched KongaPay. Konga, again set the pace for other e-commerce brands with this innovative move as it made payment easily for many customers.
Despite its many wins, Konga tasted some tough times and had to lay off over half of its staff. As a result of this downtime, Konga was acquired by Zinox, a manufacturer and distributor of computers. As a result of the acquisition, Olusiji Ijogun, former UAC Foods and Unilever executive, was appointed as the company’s chairman while Nick Imudia became the CEO after Shola Adekoya resigned.
A merger between Zinox and Konga.com followed on 1 May 2018 but the brand name, Konga was retained. The new company is a combination of an effective online e-commerce and the expansive branch network of Konga.com and emerging retail outfit, Yudala, whose goal is to pioneer omni-channel in Africa. The new Konga was forecasted to become the biggest e-commerce and retail company in Africa.
BRAND VISION
“To be a powerful force for the Economic Growth of Africa. To connect Africans with each other and the rest of the world through Technology & Commerce. To be a company that employees, customers & society are proud of and depend on.”
BRAND MISSION
“To be the Engine of Commerce & Trade in Africa.”
BRAND VALUES
Konga’s services are influenced by these set of values;
- Customer-centric
- Hardwork
- Honour & Integrity
- Teamwork & Sacrifice
- Passion
SERVICES
In the quest to reach and satisfy more customers, Konga offers the following services;
Konga Express: A service forced on delivering ordered products to customers within 1-3 days.
Konga Marketplace: This serves as a platform for Nigerian based businesses to showcase their products.
Konga Self-Fulfill Model: This service makes it easy for merchants to have better shipping agreements. With the help of this service, sellers are in control of parcels at every point till the delivery is made to the customer.
It also seems like Konga has ventured into the travel segment with Konga Travel.
It is obvious that one outstanding feature of Konga is its customer centric approach which ensures every customer goes around with a smile afterwards. This has not just built the brand’s customer base but also increased its dominance.
Written by Jennifer Chioma Amadi
Want to build a lasting brand? Send us an email at wecare@mapemond.com and let’s show you the route to sustainability.
Do Business Better!
BUSINESS INSIGHT: THE RIGHT KINDA HYPE
Have you ever purchased a product after seeing several of its adverts but in the end, it did not meet your expectation? If you have, then you must understand that deep feeling of disappointment that accompanies the irritating feeling of being played and the urge to put that brand on your blacklist of products you would never buy. What would you say went wrong; the over hyped advert or the brand itself?
Recently I had my fair share of disappointment from the dissatisfaction I got after trying a new tissue paper brand. Prior to that time, I had seen some interesting adverts on TV about this particular brand of tissue paper, bombarding its target audience with impressive visuals. Judging from the ads, you would conclude it had gained some degree of visibility in the market and based on the impressive content, from being one of the softest to being the whitest ever. All I expected was nothing but quality and didn’t bother much about its outrageous price. However, after purchasing and examining it thoroughly, I didn’t think it was worth the attention it got from me.
While I commend the brand for their striking marketing campaign that was quick to resonate deeply with most of their target audience – like me, I would hardly recommend them to anyone because their words painted an inverse image of the poor quality of the product. This oversight is not peculiar to this brand alone as there are many others who have faulted in this area. Every now and then, several brands make conscious efforts to woo potential customers with luscious promises, just to get a spot in their lives. Sadly in the end, most of these brands fail to keep to their words.
Now it is true a brand can get the attention of its target clients through remarkable marketing strategies but the chances are; it will attract a pool of customers but can hardly sustain them if the product is not up to the standard they expected. This leads us to one needful thing every company should consider before branding – Product Quality.
Quality is an irresistible attribute recognised all over the world. It knows no limit and would literally cast a spell on customers, making them flood the producer’s space just to get a product. In most countries, especially the developed ones, products are measured based on their level of quality – the higher the quality the more recognition it gets.
Product quality is a product’s ability to adequately meet the needs of users and its durability and usefulness over time. It is an essential attribute of a brand that should never be overlooked as it could serve as a guarantee for business sustainability. In the long run, product quality is a marker that determines purchasing decisions and profitability.
Quality products are unbeatable commodities in the market that most people would pay any amount to buy. A shabby product can hardly compete with a well-crafted and detailed brand. They are naturally distinguished from the crowded market like stars in a dark sky. A quality brand also builds customer’s trust and commands constant patronage.
For entrepreneurs seeking to pull the crowd to their camp, they need to first invest more time developing their product to meet the desirable standard. Don’t push your work out without dealing with the essentials. In other words, don’t brand emptiness or a substandard product.
Written by Jennifer Chioma Amadi
Do you wish to build your product from inside out? We’ve got you covered. Send us an email at wecare@mapemond.com
Do Business Better!
BRAND REVIEW: THE RETURN OF BATA
There is a new rave in the Nigeria footwear industry, and Bata seems to be at the center of it all. For those who probably mistook Bata for either a Yoruba venture or an Igbo business, you might need to sit down for some shocking revelations and hopefully you will get a paradigm shift at the end of this article. Moreover, it is not new to the Nigeria market.
You might probably be amazed that the Canadian multinational footwear and fashion accessory manufacturer and retailer, Bata, has been in the Nigerian scene since 1932. Bata also pioneered projects that developed the Nigerian shoe industry.
BRAND HISTORY
On the shores of Zlín Czechoslovakia in August 24, 1894, Thomas Bata established the shoe factory that, within a decade, became a leading shoe manufacturing company in Europe. Bata Shoe Company’s dominance then and now is associated to their smart entrepreneurship, mechanization and competitive pricing.
Following the global economic slump that arose after World War 1 in 1914, the company experienced some challenges due to the instability – currency devaluation and massive unemployment – in the new country. Because of this, there was less purchase of products, which led to a cut back in production. Unshaken by this setback, Thomas Bata came up with a new strategy to tackle this economic crisis by drastically reducing the prices of all the shoes.
As expected consumers responded speedily to the price drop which increased demands for Bata shoes. This saw the closure of many rival shoe manufacturers, in 1923 and 1925, who could no longer meet up the demands that came with the crises. While this was happening, Bata gained more grounds and relevance.
With this successful outcome, the company purchased several hectares to build a factory town, known as “Bataville”. Within the location, the company had grouped tanneries, a brickyard, a chemical factory, a mechanical equipment plant and repair shop, workshops for the production of rubber, a paper pulp and cardboard factory, a fabric factory, a shoe-shine factory, a power plant and farming activities to carter for food and energy needs.
Despite the death of Thomas Bata, the founder, in 1932, the company waxed stronger, increased the quality of shoes and remained a leader in the shoe manufacturing industry. This growth did not end in Czechoslovakia, it also expanded and built factories in other countries – Poland, Latvia, Romania, Switzerland, France, etc.
In 1964, the Bata Company moved their headquarters to Toronto, Ontario, Canada. In 1965, it moved again into an ultra-modern building, the Bata International Centre. The building, located on Wynford Drive, in suburban North York, Ontario, Canada, was designed by architect John B. Parkin.
Nigeria was also in the plan. The company graced the Nigerian soil since 1932, became a major trader and manufacturer in 1964 popularly known as Bata Trading Company and subsequently in 1998 changed to Bata Nigeria PLC. The company spearheaded the development and modernization of shoe manufacturing in Nigeria and maintained tanneries for the processing of leather and allied products such as wet blue. It also instigated the model for local tanneries that were designed in line with the socio-cultural structure of many third world countries and ethnic groups across continents like Africa, Asia and the Middle East.
Unfortunately, due to unfavourable business policies, the company exited the Nigerian market in the 80s. These policies affected the company’s operations and made it less effective. Even after its exit, Bata Shoes Company had left an unbeatable legacy and a gap that no other shoe manufacturer could replace.
However, the company recently announced its comeback to the Nigerian market, with a one million naira launch for a factory complex in Abuja. The company’s Nigerian stakeholders are leading the project that is scheduled to start operations in June. They believe this would tackle problems related to shoe importation in Nigeria.
BRAND VISION
To grow as a dynamic, innovative and market driven domestic manufacturer and distributor, with footwear as our core business, while maintaining a commitment to the country, culture and environment in which we operate.
BRAND MISSION
To be successful as the most dynamic, flexible and market responsive organization, with footwear as its core business.
BRAND IMPACT
Asides giving the shoe manufacturing industry in Nigeria a facelift, Bata looks forward to reducing the unemployment rate in the country by training and employing 128 youths from Nigeria. These set of qualified individuals will be responsible for managing the production in the factory. Based on the quality Bata has been known for, Nigerians can be assured that the brand will continue to deliver exceptional products and in turn give them value for their money.
We hope this article has enlightened you in some way. We would love to read your comments, if you do not mind sharing.
Written by Jennifer Chioma Amadi
Do you need help in structuring your business? We are an email away at wecare@mapemond.com
Do Business Better!