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How Unilever Nigeria Is Adapting To Market Changes

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Unilever Nigeria Plc recently announced that it will be discontinuing the manufacturing of its homecare and skin-cleansing brands in a bid to make its operations in Nigeria competitive and profitable. The iconic brands include like Omo, Sunlight, and Lux.

 

The categories are margin dilutive, and exiting them will allow the company to focus on higher growth opportunities.

The fast-moving consumer goods sector in Nigeria is known for it’s thin profit margins due to fierce competition and sensitivity of pricing.

In the fiscal year 2022, Unilever Nigeria had a net profit margin of 5%, just a little higher than the 4.8% reported the previous year.

 

The margin dilution caused by the homecare and skin-cleansing categories was a major factor that kept the profit margin low.

By discontinuing these two business units, Unilever Nigeria can now adapt to changing market circumstances and reposition itself to better meet the needs of consumers, shareholders, and employees.

 

The CEO, Carl Cruz, stated that the winding down of the production of Sunlight, Omo, and Lux will be gradual and not dramatic.

 

The company is looking to focus on higher growth opportunities to ensure its profitability in Nigeria.

 

Unilever Nigeria will prioritize business continuity measures that reduce exposure to devaluation and currency liquidity. With the central bank of Nigeria devaluing the naira against the dollar, Unilever Nigeria has been facing difficulty in accessing foreign exchange since the pandemic lockdowns depleted the nation’s dollar earnings from oil sales.

However, companies that have products whose raw materials are locally sourced or have other means of sourcing raw materials without paying much foreign exchange will be making much profit on those lines. Unilever Nigeria could take advantage of this by exploring locally sourced raw materials and reducing dependence on imported petrochemicals.

 

Furthermore, the company could explore new product lines or expand its current offerings to higher growth areas. For instance, Unilever Nigeria could focus on personal care products like deodorants, lotions, and shampoos, where there is high demand in the market.

 

Unilever Nigeria’s decision to exit homecare and skin-cleansing categories may be a bold move, but it is a necessary one to ensure the company’s long-term profitability in the Nigerian market.

 

The company can take advantage of locally sourced raw materials, explore new product lines or expand its current offerings to higher growth areas to stay ahead of the competition.

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Brands

Family Fun Unleashed: Indomie Love Bowl Premiering This Month

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The premiere of the “Indomie Love Bowl,” a family game show sponsored by Indomie in collaboration with Multichoice, is scheduled for October 22, 2023.

 

The 13-episode series will showcase three families per episode, competing for the coveted title and attractive prizes.

 

The victorious family in the reality show stands to gain significant rewards, with the first-place winners earning an impressive 5 million Naira.

 

The second and third-place families will receive 2.5 million Naira and 1.5 million Naira, respectively. Beyond the cash prizes, the winning families will relish a two-year abundance of Indomie products, renowned for their delightful flavor and quality.

 

Asiwaju Temitope, Head of Corporate Communications for Indomie, emphasized the brand’s deep connection with love and excitement in the food category as the driving force behind the show.

 

The primary goal of the show is to elevate values such as love within families, particularly emphasizing the special bonds between mothers and children.

 

The collaboration with Multichoice was a strategic move, leveraging its broad outreach and the widespread accessibility of DSTV in numerous households. This ensures the game show’s broad and impactful reach.

 

“We created this games show and we chose this with family represented by mums and children. It’s going to involve several families and winners willl emerge based on the programmes. 3 families will emerge as winners with consolatory prizes. We chose Multichoice because it is a big reach and there’s no home where you won’t find DSTV”.

 

Busola Tejumola, Executive Head of Content and West Africa Channels at Multichoice West Africa, underscored that the “Indomie Love Bowl” revolves around themes of unity, bonding, and the special affection between mothers and children.

 

Set to debut on October 22, 2023, at 7 pm on the Africa Magic Family channel, the show aims to deliver thrilling moments and dynamic interactions among family members.

Stephanie Coker, the show’s host and On-Air personality, expressed her joy in being involved in the project, particularly as a mother. She eagerly anticipated watching the show with her daughter, celebrating the special bond between mothers and children, the exciting games, and the evident team spirit. Coker also emphasized the chemistry with her co-host, Darasimi, promising an engaging experience for the audience.

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BUA Takes Bold Step: Slashes Price Of Cement

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BUA Cement PLC has declared a cut in the price of its cement product to N3,500 per bag, effective from Monday, October 2, 2023.

 

. The company cites its dedication to fostering growth in the building materials and infrastructural sectors as the reason behind this reduction.

 

The announcement was made through a statement posted on its X page, previously known as Twitter.

 

This decision follows the chairman, Abdul Samad Rabiu’s commitment to reviewing the product’s price after a meeting with President Bola Tinubu weeks ago.

 

The statement read in part, “We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.

 

“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward.

 

“As a result, BUA Cement would now be sold at an ex-factory* price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.

 

“Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17million metric tonnes per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.”

 

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Brands

Again, Dangote Clinches ‘Brand of the Year’ Award

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Dangote Industries Limited has received the prestigious Brand of the Year award, acknowledging the company’s outstanding corporate performance in the past year.

 

At a ceremony held in Lagos, John Ajayi, the Publisher of Marketing Edge, clarified that the award conferred upon Dangote is the flagship recognition, highlighting the company’s consistent contributions to the economic advancement of Nigeria and Africa.

 

Mr. Ajayi emphasized that this recognition encompasses a broad spectrum of business investments and corporate initiatives carried out by Dangote across the African continent.

 

He noted “This recognition covers many business investments and corporate interventions carried out by the company in Africa as a continent.”

 

During the award presentation, he credited Dangote’s exceptional position in its industry to its robust efforts in generating employment opportunities, thereby positively impacting numerous youths.

 

Additionally, he praised Dangote Industries for its steadfast dedication to the development of vital infrastructure.

 

He highlighted that the award presentation marked a significant milestone during Marketing Edge’s 20th-anniversary celebration and the 11th edition of its annual Brands and Advertising Excellence Award.

 

Numerous other brands were also honored for their exceptional achievements in the market.

 

Mr. Ajayi underscored that Marketing Edge’s two-decade presence in the industry has firmly established it as a trustworthy and authoritative partner for all stakeholders in the Nigerian marketing and advertising landscape.

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