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EDITOR’S NOTE
When Values Collide
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hilosophers believe the easiest way to an upright and precise path in life is to follow specific sets of moral values. However, most humans would realize that circumstances can intermittently put people in a direct conflict with their set values. So, what happens when a set of long-standing values conflict with new priorities? How do we reconcile what is important to us when we are confronted with some moral dilemmas and we need to make hard choices? How do we make these choices, and how do we justify them? The fact is, if choices are always between good and evil, it would be easy—do good, avoid evil. But moral decisions are not always between good and evil, sometimes, they are between or among conflicting goods. And so the question becomes one of a hierarchy of values—what is more important? Which good do I value more? And while sometimes this is easy to assess, in many important situations, it is not. It seems Nigeria’s advertising industry is presently experiencing some sort of value implosion. A few years back, foreign agency affiliation was generally regarded as a strong
parameter for growth in the industry. To carve a niche for themselves or indicate that they have “arrived”, many Nigerian agencies have embraced affiliation with more established foreign agencies. Agency affiliation creates a network. Lots of constructive crossing over and progressing in advertising skills are what an agency is very likely to have. It also helps when an agency is looking at doing a bigger project. It is an invaluable resource to have a foreign agency’s experience from a similar product in a similar situation. The trend was that a local agency will approach an international agency with a congruent vision. The international agency, in turn, vets the local agency’s credentials to know what they have done in terms of creativity and business growth. In essence, where the two organisations are able to agree, they can begin to talk about the terms of the affiliation and what each party will bring to the table in order to make it a win-win situation. You would hear Nigerian ad men extoling the benefits derived from foreign partnership to high heavens. Globalisation was eulogized as an incontrovertible element that enhances an agency’s sphere of influence. Now that these foreign affiliates have realized that local affiliates have been using these affiliations to get business; and with new investment laws consigning the indigenization decree of 1978 to the dustbin, they are emboldened and motivated to open shop directly in the country. Uneasy calm now pervades the camp of local advertising agencies. And when it comes to survival, values can easily be adjusted. Yesterday’s prophets of globalisation have become professors of protectionism
overnight and vice-versa. One’s camp is determined by the side one’s bread is buttered. Our cover story examines everything surrounding the new Advertising Practitioners Council of Nigeria (APCON) reforms. It’s a comprehensive and balanced presentation aimed at stimulating stability in Nigeria’s advertising industry. However, this edition is not just about APCON reforms. There is a special focus on the brand of the moment in Nigeria’s energy sector, Network Oil & Gas. Anyone who visits the Integrated Gas Handling Plant at Oredo will marvel at the capacity of Nigerian Engineers to match global standards. Political Marketing, a segment of our publication that has attracted quality attention in the last few months, examines Nigeria’s political Terrains and what citizens should expect in 2015. In his column, PR Dimension, Agbo Agbo takes a look at the power of perception and positioning. It is a vital material every information manager cannot afford to ignore. We have also lined up quality interviews with outstanding players in marketing communications. Renowned PR expert, Ehi Braimah is our Guest Writer. His presentation is on building great brands. Excellent and incisive features and articles are also part of this bumper package. Our special pull-out that has generated so much interest among students and young practitioners, Marcomm Tutorial is also served in this edition as a special delight for our young readers. It is a bumper edition that should attract a lot of interest and feedback from our readers. Please keep your responses flowing. We value them.
Usukuma Ntia
Readers’ Feedback Your bias for research is commendable Let me commend your team for a great job. Publishing alone can be quite challenging in our environment, but realizing that you back up most of your major reports with quality market research stands your publication apart. Excellent research can ensure that you serve your readers with balanced reports. We can only hope you expand the application of research in your publication. Kelechi Onyenze, Redwood Consulting, Lagos.
Partnering with your platform will yield results We sincerely appreciate copies of the magazine sent to our department. I have personally taken time to go through the magazine and I find the contents very educative. We have also specifically seen that your analyses and stories are quite practical and we believe partnering with your platform would yield a great result for our students. Please continue the good work. Kofoworola A. Olayinka, HOD Marketing, LASPOTECH, Lagos.
Use more pictures and illustrations in your pull-out I have read the last two editions of your journal and I find the publication very informative. In my opinion, it is the best marketing journal ever produced in Nigeria. Your Marcomm Journal is almost like a Bible in our department. However, I would like your team you use more illustrations and pictures especially in your pull-out. It would be more eyefriendly. Besides, young people will not only find it informative, but equally entertaining. All the same, more kudos for your effort. Keep it up. Bola Osayande, Mass Communication Dept., LASU, Lagos.
Comments and enquiries should be directed to The Editor: Tel: +234 1 8037251638 or n.usukuma@brandiqng.com. BrandiQ Office: 12A Aba Johnson Street, Harmony Enclave, Adeniyi Jones, Ikeja, Lagos. Tel: +234 1 8028359098, +234 1 8023215535, info@brandiqng.com, www.brandiqng.com. Advert Hotline: +234 8056128917 BrandiQ 2
CONTENTS OUR TEAM Editor-In-Chief: Desmond Ekeh Deputy Editor-In-Chief: Agbo Agbo Editor: NtiaUsukuma Snr. Editorial Researcher Nathaniel Udoh Staff Writers: Adeshola Ogbodo Henry Otalor Abiodun Obisesan Lukmon Oloyede Head, Visuals and Creative Aloaye Momoh Photo Editor Peter Bassey Sub-Editing Consultant Gbenga Kayode Contributors James Agama Azeez Adeosun Tomi Ogunlesi Ekene Odiari Sonny Ebhomenye Editorial Advisory Board Dr. Phil Osagie Prof. Emevwo Biakolo Prof. Kwaku Atuahene-Gima Dr. Josef Bel-Molokwu Apostle Hayford Alile Mr. Idorenyen Enang Mr. Rufai Ladipo Mr. Joko Okupe Dr. Casmir Onukogu Head, Business & Marketing Martin Ogumah Marketing/ Subscription Executives Nike Moses Damilola Omitogun External Marketing Consultants 2C&D Communications, 4 Bankole Crescent, Adeniyi Jones, Ikeja Tel: +234 1 8026266181 Head, Administration Yemisi Mbaka Logistics Executives Eno Anthony Zacharia Bonard IT Executive Mabel Tola-Winjobi Legal Advisers Emeka Anolefo & Co. Financial Consultant/Auditors Lorex Consulting: Ghana Bureau Chief/Office Valentine Onwuka, Plot 2, Mango Close, Adenta, Accra Tel: +233 246 905879, +233 264 325 915 USA Contact Office: BiQ, 3384 Omega Driver, Columbus OH. 43231, USA. Tel: +161 43169181. Email: micbas2000@yahoo.com
COVER
APCON Reforms: A Roughand-Tumble Takeoff 1
Editor’s Note
3-5
Guest Writer
6-7
PR Dimension
8-10
BRAND SCORECARD
15-18
SPECIAL INTERVIEW
19-24
Industry FEATURES
25-28
Dialogue
26-35
Marcom Tutorials
58-64
Special Report
73
Entertainment Digest
80-82
Auto Page
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GUEST WRITER
How To Build A Great Brand
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Mr Ehi Braimah is the Managing Director/CEO of Neo Media & Marketing Limited, a public relations and event management company based in Ikeja, Lagos. He is also a writer, motivational speaker, member of the Rotary Club of Lagos and Board member of the Nigerian-American Chamber of Commerce; Associate Member, Nigerian Institute of Management and the Nigerian Institute of Public Relations.
et us begin by understanding what a brand truly represents, because however, you choose to define a brand, there are a multiplicity of definitions. A brand, from my personal knowledge is a statement of promise - to deliver distinctive benefits - that earns the trust of the consumer. What is important here is keeping the promise - otherwise the brand is asking for trouble.
shops is of “great quality” and at the “right price”, and that emotional satisfaction is what we need to make a purchase. It does not matter whether it is the Shoprite located in Ikeja or Lekki or outside of Lagos, the feeling conveyed is the same. This is what “branding” does to us. It clones our sensory organs and limits our choices to what we perceive will deliver “distinctive benefits” or “value for money”.
The key to building a great brand is getting the customer to come back. And, one way we can achieve this is by establishing an emotional tie between the brand and the consumer. A brand can be a product, service, personality, city or country. A brand must be easily recognisable like Coca-Cola, Apple, Red Cross, Barrack Obama, London or the United States of America.
If you ask for the price of a Rolex wristwatch, you do not expect it to be cheap, otherwise you would conclude that it is a fake Rolex. This is how we perceive the value of a Rolex wristwatch. However, the truth of the matter is that in the “mind” of the consumer he peceives that people who wear Rolex wristwatches are successful. It is a symbol of prestige and achievement for the big boys, if you like.
The perception of a brand is as good as reality - because - front of mind awareness is measurable. The choices that we make are usually a function of how well a brand has established its credentials in the minds of the consumers. Brands will stay with us for the following reasons: ownership, honesty and trust, assurance and quality, longevity and loyalty, power and profit, and finally, emotional and value needs. When you go into a shopping mall like Shoprite, there is a reason to believe that what you are buying in any of the
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The consumer would like to buy what he knows and trusts, although price may become a discriminator. Every brand has its own audience and value proposition. A brand must have the power to change or influence consumer behaviour. For example, Primark in the UK is a retail fashion outlet known for bottom of the fashion price chain, but this does not mean that its products are useless. Instead, Primark appeals to a certain category of customers because of the brand’s affordable price range, just as we now have Mr Price fashion
GUEST WRITER
outlets in Nigeria - where their prices are ridiculously low, but the customers keep coming. On the other hand, Tesco, the supermarket chain, has a value range of products which are priced at a premium with its customers because they have been able to earn the value proposition of quality and convenience. Virgin Atlantic is a youthful, hip airline. Indeed, Virgin brands, as personified by the avantgarde billionaire entrepreneur and founder, British-born Richard Branson, are ambitious and fun-driven. Red Bull is an energy drink for young people. The value proposition here is that Red Bull represents convenience (energy in a can) and revitalisation. Let us just say its a “cool brand”.
In building a great brand, we must understand that the proposition plus personality makes the brand. Here, the product is the proposition whereas the value and character shape the personality of the brand. You must practice what you preach as a brand. There is nothing wrong when a brand makes a mistake; what is important is how well the brand reacts when a mistake occurs. Brand owners must note that, it is forbidden to say, “it’s not our fault.” For example, when Toyota had brake problems with some of its cars not too long ago, the brand was honest enough to own up, apologise and recall the affected cars. Through this action of honesty, Toyota was able to restore its pride and earn the trust of its loyal customers worldwide.
When a brand creates a set of values, it should not change over time because these values keep the brand going. For example, Coca-Cola is known for great taste, Apple for innovative products, Red Cross for humanitarian service and Volvo for safe driving. One good reason consumers trust their brands is because of “consistent quality”. People die, but brands live on. What’s the point of acquring knowledge if we do not pass it on? Unless you
communicate the values of your brand, the brand dies when the vision driver dies. A brand must provide empathy and insight; it should also be provocative, inspiring and disciplined. These are personality traits that attract customers. Every organisation should also establish a brand culture for both its internal and external audiences. This brand culture must resonate with the big picture (vision/mission statements) of the organisation which is then cascaded into a set of values (personality traits) that would guide its day-to-day operations.
As part of the brand-building effort, we need to identify the brand key process critical to the success of your brand. They are: market intelligence (what competition is doing); target audience (it’s not about demographics, but about the attitude of the people that buy); insight (market research and understanding how best to deliver on your brand promise); benefits (what’s unique about your benefits, people want brands that would make their lives better); values and personality (what the brand stands for); discriminator (how you stand out from the crowd); reasons to believe (credentials and endorsements) and essence (a summation of what you stand for). The process highlighted above is a straight contest between emotional and rational thoughts when the consumer needs to make a decision on which brand to buy. Usually, emotions win over rational consideration most of the time. How does this happen? The left side of the brain is the logical side while the right side is the emotional side. A great brand must sell to both sides of the brain to win in the market place. Consumers will go with the brands that they trust: this comes as a result of a unique emotional experience. For eaxmple, Cornflakes will sell for about N1,000 whereas Kellogs will sell BrandiQ 5
GUEST WRITER
for about N1,500. Both are functional brands but emotionally, more consumers will buy Kellogs even though it costs more. In Nigeria, some of the most easily recognisable brands are Star lager beer, Guinness stout, Peak milk, Cowbell milk, Toyota, Honda, Mercedez Benz, BMW, The Guardian, The Punch and Thisday newspapers. In sports publishing, Complete Sports would come first in terms of top of mind awareness. As for telecom brands, MTN, Glo, Airtel and Etisalat easily come to mind. These brands engage in a series of activities in order to register their presence in the consumers’ minds and gain competitive advantage. These activities include a mix of advertising, public relations, sponsorship, one-to-one marketing, word of mouth, mall and street marketing, trade and roadshows, influencer campaigns, consumer promotions, multi-cultural events, hospitality programmes, flash mobs, pop-up stores, brand pavilion, live entertainment, and so on. Going back to our Rolex wristwatch case study, research has shown that its personality traits are ambitious, imaginative, meticulous, adventurous and disciplined while its value propositions are philanthropy, integrity, style and status. What would you say about some of the other leading brands in the world?
Each of them has personality traits and value propositions which represent the totality of their make up in terms of brand image. Additionally, the brand value and personality should be evident in the look and feel of the brand. It begins with a brand name, colour, logo, font, strapline, etc. It could be the smell of a car or the scent in a shop or hotel, it could be a familiar ring tone of a mobile phone (e.g Nokia), or the visual representation of an Apple store. Take a look at all the shops on Oxford Street in London as in most other shops - they are deliberately designed to seduce you and make you walk into the shop. Brand owners also assist you with a short cut to make quick decisions through easy memory recall. Nike, Addidas and Apple are good examples with their symbols which are known as isomatic markers. The flag of a country is another good example of an isomatic marker. Once you see our green-white-green flag, it signifies the Nigerian identity while the Union Jack represents Great Britain. Isomatic markers can be communicated through sight, sound, smell, taste or touch experiences. BrandiQ 6
We cannot ignore the power of the Internet and social media in brand building. We recognise that Facebook and Twitter have also become powerful engagement platforms for e-commerce and news on brands, whether good or bad, go viral with a touch of the botton. Clearly, brand owners should leverage the digital media to their own advantage. Finally, loyalty is the long term brand-builder and not profit and what delivers profit is loyalty. Retaining your employees and customers is the surest way of growing your business and profit. New customers cost more than existing customers, so it makes sense to retain existing customers while wooing new customers. The loyalty we are talking about can be achieved through the power of engagement – reaching out to your customers through touch point experiences or centres of excellence. Customers want three things, namely: price, speed and quality and they can have all three by creating the desired customer experience. Ultimately, a great customer experience can be created through a combination of things that make it magical and memorable – brand culture and advocacy. In one Harvard study report, it was discovered the internal order of importance for delivering great customer experiences are people (internal customer), operation, customer and profit. As you can see, the survival of any organisation rests squarely on the shoulders of the people while the profit motive was last.
PR DIMENSION
The Power of Perception and Positioning “Public perception of an organisation is determined 90 per cent by what it does and 10 per cent by what it says.” -PR legend Arthur Page
AGBO AGBO
“If you are going to tell a lie, don’t tell a little one because it will be recognised as a lie. Tell the biggest and most unthinkable lie. Keep on telling it and people will think it must be truth and believe it. The greater the lie the more effective it is as a weapon”. - Adolf Hitler
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ajor-General Muhammadu Buhari (retd) is a well-known public figure in Nigeria. He was a former Head of State, Military Governor, Petroleum Minister, General Officer Commanding (GOC) and three-time presidential candidate, first on the platform of ANPP and later CPC. He is held in high esteem by the masses because of his impeccable public and private Spartan character. Whenever he speaks, those in authority listen with rapt attention. But despite his illustrious public service and
MAJ. GEN. MUHAMMADU BUHARI
accolades, there is a “sore thumb” somewhere. The corrupt political elite in the country were able to pin a badge on his unblemished and impeccable lapel that has unfortunately remained to date. They have dubbed him a religious fanatic and bigot with a Jihadist tendency bent on “Islamising” Nigeria. They say Nigerians should not trust him because behind his perceived patriotic mien, a demagogue lurks in the shadows. Anywhere he goes, all they have to do is say the “magic word” and his image and reputation will collapse like a pack of cards. As a result of this perception, most none Muslims would not attempt to come near him even with a tenfoot pole. This is the power of perception. His adversaries have succeeded in their strategy because they fully understand the power of perception, and that it takes a long time for
people’s perception to change. And sometimes it does not change. For the records, his adversaries have not told Nigerians that Buhari’s cook and driver – two most trusted aides anyone can have - are Christians who have been with the General for years. Would a “Jihadist” employ Christians? The greatest undoing of the General, and those that fall under this category, is the neglect of Public Relations (PR). The lesson here is that you have to be in control of your brand identity. Without learning to manage your communication process, other outlets will control the message for you and have complete control over how the audience perceives you or your business. Furthermore, not communicating at all could be worse. Silence is deadly in the perception world. It sends out a wrong message and you may be perceived as hiding something, or worse, you don’t care that you don’t communicate to your audience. Either way, that’s bad perception management and bad PR. PR is one of the key areas of shaping perception, either for good or evil. It is anything that influences the potential image or reputation. It is reaching multiple stakeholders, including employees, partners, and the government − anybody who impacts or touches a brand business, policy, etc. However, it is imperative to differentiate PR from propaganda. One historical figure who used propaganda - dubiously cloaked under PR - for evil was Dr. Joseph Goebbels, Nazi Germany’s Minister for Public Enlightenment and Propaganda. He rose to power in 1933 along with Adolf Hitler and the Nazi Party. One of his first acts was the burning of
books. He exerted totalitarian control over the media, arts and information in Germany, all of which are key areas of PR dissemination. Differentiating propaganda from PR is necessary because the two can be easily confused. According to Harold Laswell, “Propaganda is the control of opinion by significant symbols, or, so to speak, more concretely and less accurately by stories, rumours, reports, pictures, and other forms of social communication. There is a need for a word which means the making of deliberately one-sided statements to a mass audience. Let us choose ‘propaganda’ as such a word. To Charles A. Siepmann: “Propaganda is organized persuasion”, while T. Ranklins said it is the deliberate, systematic attempt to shape perceptions, manipulate cognitions, and direct behavior to achieve a response that furthers the desired intent of the propagandist. Mercedes Benz, BMW, GTBank, Waldorf Astoria, Gucci, Longines, Rado, Dubai, Australian Open, the World Cup and the London Open, what do these brands have in common? They are perceived to be exceptional and unique because the brand custodians have poBrandiQ 7
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sitioned them that way and those who associate with or consume their products see them that way because it confers on them a feeling of prestige. This is the power of positioning. Some brands are deliberately positioned by their custodians to appeal to a select group. In the same way that many people make judgments about other people based on the way they look and act, so too will people make judgments about a brand’s association based on the way it is presented through interactions. Positioning is thus the process of choosing how a brand wants to be perceived (for example, knowledgeable, fun, innovative) and branding is the way of creating those perceptions. In perception and positioning, it is vital that a brand reflects its mission, market and positioning strategy. For instance, if a brand chooses to position itself as the foremost provider of expertise in an industry, it would develop tangible and intangible ways of expressing that position. This could be through the mix of products, logos, the way staff dress, their comportment and even how they answer the phone! These combine to position a brand in the minds and consciousness of its target market. That is your brand. A strong brand allows you to clearly differentiate yourself from competitors and define yourself in the marketplace by emphasising who you are and what you stand for. It enables you to clearly communicate your mission, increase your awareness and visibility, create a favourable impression and a uniting of people behind your cause, and promote loyalty and commitment among staff and target markets. The power of perception cannot be underestimated; the truth about a product, service, or company can matter very little in the long run if the perception of the brand is bad. The same is true in reverse, too. Let’s cite an ex-
ample with water here. Years back, people drank water directly from the tap because the perception then was that it was treated, purified and healthy. But along the line, that perception changed when bottled water started appearing on the scene. Suddenly, tap water became unhealthy and not fit for human consumption, even the very poor started opting for “pure” water. So it is now trendy and healthy to drink bottled water, which has paved the way for its becoming a worldwide industry worth billions of Dollars.
be positioned in many different ways. Another common framework for product positioning is taken from a series of questions. You can position a product using a positioning statement that answers these important questions: For whom is the product designed? What kind of product is it? What is the single most important benefit it offers? Who is its most important competitor? How is your product different from that competitor? What is the significant customer benefit of that difference?
It is, therefore, not difficult to fathom why hundreds of billions of Dollars are spent every year globally on PR, branding and marketing. In 2010 alone, companies in the United States, for instance, spent over $300 billion on advertising – excluding PR and other components of the marketing mix. This is because the perception of a product or service is nearly as important as the actual effectiveness. Half the battle is getting the consumer to pick a brand, product, service, or company over the many competitors.
“A lie can travel halfway around the world before the truth can get its boots on” is a quote that is often attributed to Mark Twain or Winston Churchill, but was actually first recorded by Charles Spurgeon, who called it an old proverb. Even in a quote describing how people believe what they read or hear, there is an example of too many people believing what they read or hear about who said it—such is the pervasiveness of the problem. Hopefully, you can see why it is vital that companies, individuals, and organizations make sure that what people are reading about them is the truth. This is Buhari’s albatross.
In the business of perception and positioning, it is apt to stress that people have a tendency to believe what they read. On December 28th, 1917, H.L. Mencken, a journalist working for the New York Evening Mail, published an article celebrating the anniversary of the bathtub. The article detailed how the first bathtubs had been introduced in the United States in 1842 and had been composed chiefly of mahogany and lead. The article also described how bathtubs were not well-accepted by society until Millard Fillmore had one installed in the White House in 1850. The problem is that none of this was true in the slightest. This did not stop the article from being reprinted in newspapers all over the United States, referenced by textbooks, cited by encyclopedias, and finding its way into the social psyche. Even today, the article can be found being referenced in magazine articles, books, and even a January 2008 Kia commercial. Positioning involves creating a unique, consistent, and recognized perception about a brand’s offering and image. A brand, product or service may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality. It targets a product for specific market segments and product needs at specific prices. The same product can
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So what should a brand caught in the Buhari scenario do, using our positioning questions? For whom is the product designed? A product that does not have a clear-cut strategy of the end-users of such product has already failed before hitting the market. A brand should come out clean on its attributes. What kind of product is it? It will be foolhardy for a product handler not to divulge information about what his product. If he does not, competition will do that for him. What is the single most important benefit it offers? A product must have at least one core benefit to offer consumers. For instance, Buhari promises to wipe out corruption and deliver good governance. How is your product different from competition? A clear-cut differentiation proposition is needed for a brand or product to stand out. For Buhari, his character and perceived incorruptibility stand him out from the rest. The fact that he has not been indicted by any commission of probe has been an added advantage. What is the significant customer benefit of the difference? Buhari promises good governance, a brand should have both tangible and intangible benefits.
BRAND SCORE CARD
X-raying Guinness Brand Personality through Eagles Victory in S.A
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n view of the proliferation of unwholesome and seemingly undifferentiated brands in the marketplace, it is virtually impossible for any brand worth its salt to excel without imbibing certain distinctive qualities that connect it to its niche market. In fact, most successful global brands, over time, have upheld certain largely uncompromising standards and traditions which will continue to disassociate it from the crowded market space.
notwithstanding negative pointers’’. Ironically, the Super Eagles that have been heavily criticised and maligned over the years have suddenly become the toast of everyone, both home and abroad in view of its amazing feat in ‘S.A 2013. Having established itself as an exemplary brand that creates magical bond and excitement of national magnitude, Guinness is presently regarded as one of the most booming organizations having achieved huge branding success. In recent times, and in an effort to adjust its branding strategies to leverage on its brand equity, Guinness has focused on building brand personality by surprising and out-smarting its competition through selfless and innovative sports campaigns. The groundbreaking unveiling of the largest Jersey as well as providing a massive viewing centre at Teslim Balogun Stadium when local TV stations were could not run live AFCON matches due to ludicrous financial demands by right holders demonstrate the Guinness brand as a loyal patron of the Super Eagles of Nigeria.
More so, as markets continue to mature and competition within industries grows fiercer, companies will not succeed purely on the basis of what products or services they offer. This is where apt application of brand personality becomes very crucial and beneficial. Brand personality, simply put, is that aspect of comprehensive brand which generates its emotional character and associations in consumers’ mind. Invariably, a brand’s penetrative capacity of a promising product should be premised around marketing survey and visibility in order to secure a sizable chunk of Evidently, the immense brand the global market share. Without gains which accrued to the Guindoubt, Guinness Plc, has scored L-R: Marketing and Innovations Director, Guinness Nigeria Plc, Mr. Austin Ufomba; represenative of Lagos ness brand can never be quantified a phenomenal point as the most State Government and Permanent Secretary, Ministry for Sports, Youth and Social Development, Dr. Abiola as the Eagles surmounted every Awonuga; Head, Marketing Committee, Nigerian Football Federation, Mr. Deji Tinubu and Marketing selfless and die-hard brand of the Manager, opposition to win the elusive AFGuinness Nigeria Plc. Mr. Obinna Anyalebechi, during the unveiling of the ‘World Largest Jersey’ by Guinness Nigeria, in Lagos, recently. Super Eagles of Nigerian on acCON trophy. count of demonstrating its unAs a clear mark of excellence and flinching loyalty towards the hitherto lack lustre and ‘bad-mouthed’ unequalled show of ingenuity, Guinness Nigeria Plc was recently football team. Even amongst soccer analysts and indeed the African awarded the certificate for the world’s largest jersey. The largest jersey football fraternity, such appellations like ‘Super Chickens’ and ‘Papa was unveiled at the Teslim Balogun Stadium Surulere Lagos and the Eagles’were derogatory terms used to jeer at the Super Eagles of NigeLiberation Stadium, Port Harcourt in a bid to galvanise support for ria during a football match. the Super Eagles in their quest for victory at the city of Madiba. InterThis is understandably so because the market value of the Nigerian estingly, the aerial view of the world’s largest jersey which measured Eagles brand had dwindled completely, so much that no brand wantan amazing record size of 24ft 3inches in width and 294ft 2inches in ed to have anything to do with it. Obviously, it will be fool-hardy for length to set a new world record as the largest football jersey in hisone to invest huge sums on a seemingly white Elephant project. Intory, beating the last record held at a size of 2334ft 1 by 259ft 8inches stinctively, all brands are in business with the full understanding of created and displayed in Sukru, San Istanbul Turkey in 2009. the marketing benefits and to put their money in profitable business opportunities. However, Guinness Plc has challenged and torpedoed According to the Managing Director/Chief Executive Guinness Nigesome of these conventional and largely profit oriented marketing ideria Plc, Mr. Seni Adetu, it is a case of double celebration ‘‘we are very ational patterns when it threw its weight behind the Super Eagles elated as a company to have greatly contributed to these successes, football brand before the commencement of the African Nations Cup putting Nigerian on the world map once again with this feat. Initially, in South Africa. there doubts as to whether we had broken the world record when we started out. However today, I am very proud to present to you the It could be recalled that Mr. Seni Adetu, Managing Director of Guincertificate for the world largest football shirt in the world proving that ness Plc unwittingly revealed this brand personality Guinness during we actually did break the world record’’ Adetu announced. the ‘Fly with the Eagles’ campaign when he alluded that the brand This innovative idea no doubt inspired the Eagles and also enthralled also stood behind the Ghanaian national team during its turbulent Nigerians who are still basking in the euphoria of the aftermath of period. ‘‘I can recall with happy nostalgia that at a time when the Super Eagles success. ‘‘As the Super Eagles played at the tournament Ghana’s football image has nose-dived, Guinness was the only brand in South Africa, they were spurred on by the good will messages inthat identified itself with the team. Although, Ghana came second in scribed on the largest jersey by thousands of fans back home in Nigethat AFCON tournament, we are happy for the impact our patronage ria. It also raised the team’s morale and they realised they are made of had on our brand. Guinness has shown relentless support for sports more with the support of their fans back home’’ he submitted. BrandiQ 9
BRAND SCORECARD
MTN’s BTL Account Up for Grabs
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everal weeks after some agencies made formal pitch presentations for the juicy MTN below-the-line account, speculations upon assumptions seem to have saturated the industry. Observers are eagerly waiting to ascertain the eventual winner of the account. The pitch which started with about seventeen different agencies from the first phase has been reduced to a sizeable number, after each was judged based on the strategy they presented. Our source who pleaded anonymity, disclosed that some of the agencies that sailed through to the final stage include some of the previous agencies who handled the account before it was thrown open. This explains why the moods at EXP Marketing, Towncriers and Brand Activation have been relatively calm. Other agencies speculated to be part of that list are; Connect Marketing, Keskese Ltd and Sodium Brand Solutions. Similar to any multinational businesses where agencies hold forth for them in different areas, the MTN account is split to ensure for top notch delivery for a brand that holds a strong reputation. As at the time of going to press, it was gathered that these agencies that made it to the last lap understand the brand even more than some of the MTN staff who were recently employed.
‘‘We See Opportunities and not Competition’’, Jumia.com Boss Echoes As the battle for the consumer’s mind continues to assume frightening dimension in the market space, on-line retailers are also increasingly upping their ante by offering sophisticated and competitive product delivery schemes to give consumers value for money spent. Mr Raphael Afaedor, Co-founder of Jumia.com, the rave of the moment in on-line retail service insisted during an exclusive chat with BrandiQ that Jumia.com is motivated by the immense opportunity that pervades the moneyspinning Nigerian market than its ever competitive landscape. Afaedor noted that ‘‘there is no doubt the Internet has come to stay and it’s amazing possibilities a fulcrum for millions of jobs and revenue to be created in the near future. This rapid growth has also stemmed into the mobile internet market, and has seen in experience the possibility of customers shopping from their various mobile devices’’. Afaedor explained that the rapid growth in Nigeria’s technological base has opened the nations market to home-grown online retail markets’’. He stated further that ‘‘Nigeria has recorded an estimated 25 percent growth in online shopping with revenues val-
ued at N62.4 million in 2011, a N12.5 million increase from 2010, according to a report by Euromonitor international, a global market research organisation. Taking a tip from these models, he noted that at Jumia, they sought to lead the online retail sector through empowering best hands and skilled personnel to function at their innovative peak’’. Indeed, Jumia.com is breaking fresh grounds in on-line service delivery. According to Afaedor, ‘’Currently, I do not know of any shop in Nigeria that has the assortment that we have and it is constantly changing; every week we come up with new stuffs that you can buy on-line and have it delivered to you from any part of Nigeria’’.
L-R Raphael Afaedor(Co-founder Jumia Nigeria), Opeyemi Adetomiwa(Community Manager Jumia Nigeria), Abokede Adebayo (Winner Scream Jumia Competition), Tunde Kehinde (Co-founder Jumia Nigeria).
Beneks Unveils Don Morris Wine, Names Bob Manuel as Brand Ambassador ‘As the demand for quality exotic wine continues to surge, Beneks group has formally introduced into the Nigeria wine R-L: Director General, NAFDAC, Dr. Paul Orhii; Mrs. Amuta; President, Beneks Group of Companies, Chief. market, Don MorBen Amuta, and CEO, Govert Marketing & Co. Ltd, South ris brands of exotic Africa, Teuns Keuzenkamp, at the unveiling of the Don Morris range wine held recently in Lagos… wines. The unveiling took place at the Golden Tulip Hotel, Festac Town. Renowned Nollywood actor and show presenter, Bob Manuel Udokwu, was announced as the brand ambassador for Don Morris wine. Speaking at the unveiling ceremony, Director General of NAFDAC, Dr. Paul Orhii, who formally unveiled the brand, shared his excitement for Beneks Group and their South Africa partner Govert Wines. In his words, “I want assure Nigerians that we have done our due inspections BrandiQ 10
and found these brand of wines to be of good quality and we approve them for consumption”. He went further to thank Govert Wines, South Africa, for making such quality range of wines available for Nigerians. He also assured Nigerians those who want to do business the right way, “that NAFDAC will be your partner. We will not just be telling you only the dos and don’ts, but we will be telling you how to do correct business. If you have a good product that you want to register here in Nigeria, we will make your business much easier. Our job is not to complicate your business but to enhance your business and ensure it is done the right way within the normal time frame” he added. President of Benek Group of Companies, Chief Ben Amuta expressed excitement for the seamless process of having the Don Morris brand of wines unveiled in Nigeria. “As a group we are delighted that our brand is finally here today having met all requirements. We decided to partner with Govert Wines from South Africa, because they have been consistent in producing genuine natural wine’’
BRAND SCORECARD
Consumers Commend Fayrouz’s Partnership with Darey’s ‘Love…Like a Movie’ After what can be described as one of the greatest ever musical show in Nigeria, the spectacular ‘Love…like a Movie’ musical concert which took place a few weeks back has continued to attract encomiums from all and sundry. Fayrouz, a premium soft drink from the stables of Nigerian Breweries Plc has also continued to receive huge commendations as a result of the brand’s alignment with the concert. The premium soft drink served as the cocktail drink for the celebrities that graced the exciting event. The unique synergy – to the applause of the audience - brought the uniqueness of the brand and the concert to the fore. Ms. Busola Cole, a staff of one of the new generation banks, who was present at the concert, described Fayrouz’s partnership with the ‘Love…like a Movie’ concert, as a good match. Busola, an ardent Fayrouz drinker, said “Fayrouz has always been my favourite soft drink brand. I love its rich taste”
Henix, said “It is an honour to win the ticket to the biggest concert especially at this time of celebration of love courtesy of the finest and premium drink Fayrouz. I am happy to have witnessed the exciting time and the unique creativity of Darey Art Alade”. Another winner, Ishola Daniel, said “this is a moment I will live to remember, because
contributed to the buildup of the story until it was wrapped up with the remix of Asiko, one of Darey’s smash hit songs. Described as the combination of best of music, art, drama and theatre performance, the concert had in attendance American reality TV star, Kim Kardashian as well as Nigeria’s top entertainers and other notable corporate executives. Speaking at the event, Mr. Walter Drenth, Marketing Director Nigerian Breweries Plc, disclosed that Fayrouz is a premium and stylish soft drink that often looks out for opportunities to treat its consumers to exciting experiences.
“We thought it worthwhile to partner with Darey on this event which is premium, stylish and extra ordinary - values which are associated with Fayrouz. The show has brought a new dimension to the L-R: Mrs. Walter Drenth, Marketing Director Nigerian Breweries Walter Drenth, Kim Kardashian music and entertainment industry in Nigeria. It is a marriage of two Fayrouz has given me an opportunity to meet different and unconventional brands which Seni Lawal, a youth corp member serving Nigeria’ biggest stars. Fayrouz is truly sharing has offered maximum satisfaction to consumin Lagos, stated that Fayrouz’s sponsorship love at this time and I say a very big thank you ers and guests,” Drenth said. of the event is in sync with what the brand for the experience. I encourage consumers out stands for. In her words “everybody knows there to support the brand”. In her comments, Nnenna Ifeibigh-Hemeson, Fayrouz is a premium drink and Darey Art Senior Brand Manager, Fayrouz and CliAlade, is a celebrated RnB. Their coming The show kicked off with the appearance of max, said Nigerian Breweries plc as a corpotogether is a synergy of two perfect heavy the much publicized American reality TV rate brand and Fayrouz, as a product brand, weights in their different categories”. superstar, Kim Kadarshian. Darey was ably would not get involved in anything that is not backed up by four of Nigeria’s greatest vocal- unique and impacting. To ensure that its consumers are not left out, ists Banky W, Timi Dakolo, Praiz and Tolu the Fayrouz brand provided consumers the (of the Project Fame season 3). “Fayrouz is different, original and unique; it’s opportunity to witness the show live with in a class of its own. The same goes for the platinum tickets to the concert which were The show also brought to the fore the inno- concert that combines Circque du Soleil thewon through a live radio show on UNILAG vative use of technology such as never been atrics and music to present a different kind of FM, Lagos. The winners commended the seen before anywhere in this part of world. experience in this part of the world. It shares brand for giving them an exciting and pre- The audience watched in amazement as the great attributes and values with the Fayrouz mium experience. surprises kept coming. From the beginning to brand that was why we decided to partner the end of the ‘movie’, the love story continued Darey on the show. It is indeed a lifelong exOne of the Winners of the Fayrouz ticket with different songs including Endless Love, perience and we are excited to have been part to the ‘Love…like a movie concert, Oluremi A whole new world and a few others which of it,” Ifeibigh-Hemeson enthused. BrandiQ 11
NEWS
School of Media and Communication Hosts Nigerian-American Media “Comet & Whiz kid”
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n a bid to kick start a program towards encouraging and inspiring young Africans to “Dream Up, Speak Up and Stand Up” for Africa’s renaissance, the Pan African University’s School of Media and Communication, played host to Zuriel Elise Oduwole, the amazing 10 year old who is likened to a comet and touted by some to be “the next Larry King”. As a precocious child of Nigerian-American heritage, at just age 10, Zuriel has shown amazing media and communication talent, especially in the area of in-depth personality interviewing. Speaking to a crowd of students, mostly postgraduates in media and communication at the Pan African University recently, the young Zuriel counseled them on the need to identify their passion in time and follow it up with due commitment and diligence, if they must be successful. She encouraged them to look forward to the African renaissance bearing in mind that there is something they can offer to the continent to make it a better place. Zuriel is variously reported to possess amazing talent that has resulted in her interviewing business leaders, current and past world leaders and heads of states. These have included the current Presidents of
Tanzania, Mauritius, and of Malawi – as one of Africa’s only 2 female leaders. Others are Presidents Jerry John Rawlings and John Kufuor of Ghana. In demonstrating absolute depth in her coverage ability, she became the youngest global international media representative ever on record last November (2012). Competing with seasoned correspondents from CNN, Reuters, Super Sports, CNBC, the UK Guardian, South African and local media houses, she received an ovation for her sets of provoking and creatively intelligent questions to tennis superstars Venus & Serena Williams, during their world press conference in Nigeria. Zuriel has also had a one-on-one interview with Africa’s most successful businessman Mr. Aliko Dangote. Her visit to Nigeria was also aimed at showcasing her current work in documentary format, where she is telling the story of Africa’s political and business leaders, making a positive, selfless and clear commitment to improving the continent’s fortunes. It served as an opportunity for Nigerians to see her truly world class documentary making skills first hand.
Sony Commissions World-Class Service Centre Sony Middle East and Africa has inaugurated a new state-of-the-art Sony-authorized Service Centre, Redington Isolo, in Lagos, Nigeria. The new Sony authorized service centre, located in Afprint Industrial Estate, reinforces Sony’s commitment to providing the best after-sales support to its valued customers in the country. Speaking about the newly inaugurated service centre, Shinya Mukaida, Director, Area Management, Sony Middle East and Africa said: “This is a proud day for the entire team here in Nigeria. Customers will benefit from the services, support and added convenience that we can offer with an enhanced network of Sony-authorized service centers across the country. These kinds of intensive and specialized services mean that our customers will receive the best support without any compromise in turnaround times.”
The opening of the Sony-authorized Redington Isolo service centre strengthens Sony’s long-term strategic investment programme in infrastructure resources. Through this strategy, Sony has increased the network of service centers in the region providing consumers with quality after sales service and support. The new service centre is supported by a network of five authorized service centers and with two collection counters located at convenient locations across the entire country. The Sony-authorized Service Centre – Redington Isolo is a state-of-the-art service centre offering international standards of aftersales service. Trained by Sony engineers, the service centre staff are highly qualified to address customer complaints and queries. The equipment used for diagnostics and repairs are also the most technologically advanced.
L-R: Head, Customer Relations, Sony, Ugoh Anyanwu; Director Sales, Middle East and Africa, Mukaida Shinya; and VicePresident, Services, Middle East and Africa, Redington Sethu Raman, at the opening of news Sony Service Centre recently. BrandiQ 12
Light Level Launches New Signage Concept Light level Limited, a professional and technologically driven sign manufacturing company, has introduced a new signage cleaning concept in Nigeria. As part of the consummation of the deal, VICON from Netherlands has signed an agreement to have colour signage materials produced in Nigeria. The quenchless commitment to high standards and value-added customer service orientation are the company’s core values. A concept called HQ cleaning concept, has been revived as a solution entrant. The solution though already in Kenya would be used to clean Dibond, aluminium composite and other signage materials. This will give the materials a facelift thereby restoring them to their original state. Speaking at the event marking the commemoration of the new signage cleaning concept, the Managing Director, Light Level Nigeria Limited, Mr. Uwamai Igein, ‘‘When the HQ cleaning concept is applied on signage materials, it can retain its originality for at least ten years. He said procedure was meant to save cost and enhance the life of the signages. The agreement also stated that light level which has been involved in maintenance and refurbishing of signages would be the sole distributor of the product in Nigeria.
NEWS
Pauline Fredericks Wins Premium Accounts
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auline Fredericks & Co, a creative and strategy driven firm in Lagos recently clinched the Yemi Odusote, CEO Pauline multi-million Fredericks & Co naira PR businesses of the Ecobank Nigeria and the National Identification Number project of the National Identity Management Commission consecutively. In a very competitive pitch that involved several agencies, Pauline Fredericks, led by irrepressible Omoba ’Yemi Odusote, emerged as the preferred agency to these two organizations, even while the NIMC account was
shared between two agencies. The NIMC business involves PR and Social Media Awareness Campaign across three geopolitical zones of Nigeria, covering seventeen states. While the Ecobank business shall cover corporate and product brands communication of the bank. The NIMC has saddled the Agency with the responsibility of ensuring effective communication and understanding of the concept of the National Identification Number project and also to drive mass participation during the registration exercise in the regions it covers. The Management of Ecobank, on the other hand, expect the agency to improve on the bank’s corporate and brands communication as well as its relationship with critical stakeholders.
National Lottery Trust Fund Unveils New Logo The National Lottery Trust Fund (NLTF) witnessed a stamp of endorsement that would catapult both the organizations and individuals to another level of wealth creation, when it unveiled her new logo last week in Abuja. In the words of the Director-General, National Lottery Trust Fund (NLTF), Engr. Habu Gumel “this step by the lottery fund management is geared towards ensuring that the pace of progress and activities in the lottery sector is in line with the transformation agenda of the federal government”. Secretary to the government, Pius Anyim who was represented by the Permanent Secretary, Ministry of special duties, Henry Akpan said the significance of the new brand outlook “symbolizes the awakening of a sleeping giant.” Anyim said that the unveiling ceremony of the emblem indicates that “the NLTF is telling Nigerians that it is now ready to rise up to its statutory mandate, and consequently that Nigerians should also get ready for a new dimension of the federal government’s transformation agenda.” Minister, Special duties, Kabiru Turaki said that “the decision by the management of the trust fund to unveil its iconic logo, a website and an in-house information brochure is very strategic.” He assured that the government will ensure that new regulatory framework and polices that deepens competition and growth of lottery market in Nigeria are pursued and implemented. The NLTF was established eight years ago under the National Lottery Acts 2005 to take custody of government’s share of the proceeds
generated from national lottery operations in the country. Project consultant and Chief Executive Officer of Visage PR Limited, Afolabi Andu said that the design framework of the logo captured the essence of the NLTF’s mandate as a remittance receiving entity whose primary source of fund is lottery and what it seeks to achieve with the funds as provided under the lottery Act. He explained that ‘sports’ was chosen as the main theme because of “its unifying power which transcends religion, ethnicity, race and politics.” Andu reiterated that “the new NLTF brand outlook is not just about grant-giving; it is about an emblem that could be a stamp of endorsement that succinctly fits in the transformation agenda of President Goodluck Jonathan, in facilitating the achievement of set national development goals. In Andu’s words, “The new brand draws on what the NLTF intends to achieve in its vision of becoming a world-class transformational lottery intervention funder of sustainable social investments in a broad, distinctive and integrated approach firmly grounded in Nigeria’s development agenda,” he noted.
Brands Set to Shine at Niger Delta Mega Fair
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s part of efforts to position the South-South region of Nigeria as a destination brand and business hub, mega brands in the country are already gearing up for the inaugural edition of the Niger Delta Mega Trade Fair. The event is scheduled to hold in the ancient city of Benin, the Edo State capital, from March 22 to April 7, 2013, at Uwa School Ceremonial Ground, First East Circular Road. The trade fair is tagged: “Niger Delta; Nigeria’s Goose That Lays the Golden Egg”. This annual fair aims to stimulate the Niger Delta market, engender commerce and networking by way of creating an enabling environment for manufacturers of goods and services in Nigeria, local and foreign investors as well as some key government ministries and parastatals to converge under one roof to showcase and exhibit their products and services to the people of this region. According to Prince Onoiton Okojie, Principal Consultant, Cubic Expressions Limited, the marketing and public relations consultancy of the trade fair, “Niger Delta Mega Trade Fair is an opportunity for manufacturers and suppliers of goods and services, distributors, etc., to interface one-to-one in an informal environment with consumers in the region with the sole purpose of positively affecting the bottom-line of their organizations and getting on-thespot feedback from the consumers. Niger Delta Mega Trade Fair is also meant basically to promote both the region’s oil and non-oil exportable commodities, showcase its collective economic and natural endowments and expose and promote the vast investment business opportunities in the region and ultimately attract local and foreign investments.”
L-R Chief Executive Officer Visage PR Mr.Afolabi Andu, Executive Secretary National Lottery Trust Fund Dr. Habu Gumel Permanent Secretary Ministry of Special Duties, Dr. Henry Akpan and the Honourable Minister of Special Duties, Honourable Kabiru Tanimu Turaki during the National Lottery Trust Fund New Brand Launch in Abuja
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I N T E R N AT I O N A L
Apple Unveils State-of-the-art Wristwatch Computer
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pple Incorporation has introduced a wristwatch-like device into the market. Electronic giant has put together a team of about 100 product designers working on the wristwatch-like device that will be expected to perform some of the tasks handled by the iPhone and iPad. The team, which has grown in the past year, includes managers, members of the marketing group, and software and hardware engineers who previously worked on the iPhone and iPad, said the people, who asked not to be named because the plans are private. The team’s size suggests Apple is beyond the experimen-
tation phase in its development, said the people. Tim Cook, chief executive officer of Apple Incorporation, speaks during an event in San Francisco on Sept. 12, 2012. The introduction of a wearable computing device may signal a new direction for the consumer-electronics industry. “The iWatch will fill a gaping hole in the Apple ecosystem,” Bruce Tognazzini, a technology consultant and former Apple employee, wrote in a blog post last week. “Like other breakthrough Apple products, its value will be underestimated at launch, and then grow to have a profound impact on our lives and Apple’s fortunes.” Apple’s James Foster, senior director of engineering, and Achim Pantfoerder, another manager, are part of the efforts to introduce a wristwatch-style computer, according to the people. Apple has worked on wearable devices for tracking fitness in the past and never brought them to market, said one of the people. Apple is right to invest in products such as watches, even if they don’t result in commercial products, said Josh Spencer, a fund manager at T. Rowe Price Group Inc. “There’s more people that would wear an Apple watch than would wear Google glasses,” Spencer said.
Jazeera Eyes Stake in Kuwait Airways Kuwait’s Jazeera Airways is “definitely” interested in investing in soon to be privatised, loss-making airline Kuwait Airways, the lowcost carrier’s chairman has told Arabian Business. “Yes, I would definitely focus on investing more on aviation in Kuwait, subject to a clean clear balance sheet,” Marwan Boodai, chairman of Jazeera Airways, said in an interview, when asked if he was interested to invest in rival Kuwait Airways, which is due to be privatised by thegovernment within the next three years. “Like any investment you have to look at what the balance sheet is like and then you have to decide if yes it is worth investment,” he said.
“Governments are meant to govern, not run airlines. Once they get Kuwait Airways privatised, rest assured there is a huge weight of opportunities in Kuwait Airways that could be exploited but you need a private sector mentality to make sure you get the best returns,” Boodai said in an interview with Arabian Business in Kuwait City in August 2012. Kuwait-based analyst Rick Bhandari estimated that Kuwait Airways had accumulated losses of over US$2.5bn and he believed it was “being run as a government ministry rather than a commercially viable operation” and the Kuwait government needed to absorb the losses in order to make the carrier more attractive to private investors.
“If you look at Kuwait Airways’ balance sheet for the last five years when they decided to privatise it, the Kuwait Investment Authority, along with Citibank, they didn’t do the brightest job, they should have sold it years ago. “Since then, to date, the accumulated losses, which the government has cashed, reached KWD468m [US$1.663bn], which is published officially in our gazette,” he added. Recently, Jazeera Airways Group reported net profit for 4Q2012 soared 93 percent, compared to the same period in 2011. Government-owned Kuwait Airways has this year been plagued by strike action by workers looking for better wages and conditions, its planes being grounded due to a safety concerns and bitter discussions with Iraq over aircraft stolen from it during the Gulf War.
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Marwan Boodai - Chairman Jazeera Airways
I N T E R N AT I O N A L
BlackBerry Battles to Retain Market Share
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lackBerry’s new smartphone platform launched recently, faces an uphill battle to win back corporate and government users who helped spawn the “crackberry” culture, analysts say. The Canadian-based firm, which re-branded itself with the launch of its BlackBerry 10 platform, must stem the loss of its core customers and win back those who migrated to the iPhone or Android devices, according to industry watchers. While BlackBerry helped create a culture of mobile users glued to smartphones nearly a decade ago, many of those customers have since moved on to Apple or Android. “They still have work ahead of them and that is to get their existing customers as well as Android, Apple and Windows customers to give BlackBerry a second look,” said Dan Shey, analyst at ABI Research. “They’ve been losing some of those customers, not necessarily an entire enterprise but losing users, losing the executive who wants to use an iPhone,” he said. Shey said BlackBerry has succeeded from a technical perspective in upgrading its operating system and producing “a pretty sexy device” in the touchscreen Z10, the first phone launched using the BlackBerry 10 platform. “BlackBerry has now ticked the boxes: they are a one-stop shop that addresses all the enterprise’s issues, so they are in a good position to win back customers,” he added.
Auto Roundup: Chevy, Nissan,Toyota raise the ante If you think that reChevrolet is supporting a project called IdleAir to help long-haul truckers avoid idling emissions during rest breaks at truck stops. IdleAir works by allowing drivers to install a reusable plastic window adapter to their cab, which can power heating and cooling air vents, TV, electrical outlets, Internet and other conveniences. The truck engine can then be turned off, saving fuel, reducing emissions and keeping power on to the big rig’s amenities. The system is said to save a gallon of diesel fuel per truck per hour and since drivers typically rest at night, IdleAir uses off-peak power and has even begun installing solar panels on some of its overhead trusses to provide solar-powered electricity. Chevrolet is purchasing IdleAir’s GHG reduction credits as part of a broader goal to prevent up to 8 million metric tons of carbon dioxide from entering the earth’s atmosphere. To date, Chevy’s parent company GM says it has secured commitments for nearly 7 million metric tons. Nissan debuted an innovative three-wet paint process that reduces energy consumption, cost and emissions while increasing production efficiency. The 250,000-square-foot facility is capable of reduc-
ing energy consumption and carbon emissions by 30 percent and volatile organic compound emissions by 70 percent. The new paint process saves time and energy by applying all three paint layers in succession before the vehicle goes into the oven – previous processes required the vehicle to bake in between the primer application and the topcoat layers. The plant is Nissan’s showcase project as part of the Department of Energy’s Better Buildings Better Plants Challenge, where Nissan has committed to reducing energy intensity in its three U.S. plants 25 percent by 2020. Toyota announced it will begin selling an electricity management system that employs recycled nickel-metal hydride batteries from hybrid vehicles. The energy management systems will be sold to Toyota vehicle dealers throughout Japan, allowing for better control over consumption, storage and discharge of electricity, as well as increased efficiency. The offering is part of Toyota’s larger Building Energy Management Systems for dealers, which include solar carports, solar power generation, LED lighting and energy-conserving air conditioning. By cutting the amount of electricity used during peak usage times, the amount and cost of electricity and gas used for a single dealership can be decreased by half compared to dealerships without the system, Toyota said. Backup electricity can be stored and used during power outages during events such as disasters, making the system useful for emergency response centers to power equipment necessary for gathering critical emergency information and to power evacuation shelters.
2012: Worldwide Phone Sales Drop 8% - Gartner Sales of mobile phones around the world fell last year for the first time since 2009 as consumers shunned cheaper feature phones, research Company Gartner said recently. “Tough economic conditions, shifting consumer preferences, and intense market competition weakened the worldwide mobile phone market,” Gartner analyst Anshul Gupta stated. Smartphone sales, a category dominated by Samsung (005930.KS) and Apple (AAPL.O), continued to rise, he said, and the higher-end devices would account for more than half the market for the first time this year. Total worldwide mobile sales to end users fell 1.7 percent to 1.75 billion units in 2012, Gartner said. Samsung and Apple continued to dominate the market, with the Korean company selling 385 million phones in 2012, of which 53.5 percent were smartphones, with Apple selling 130 million smartphones. In the fourth quarter alone, Apple and Samsung accounted for 52 percent of smartphone sales, up from 46 percent in the third quarter. Chinese company Huawei (002502.SZ) reached third spot in worldwide smartphone sales for the first time in the fourth quarter, Gartner said. It sold 27.2 million smartphones to end users in 2012, up 74 percent. BrandiQ 15
SPECIAL INTERVIEW
AAAN Should Spearhead Participation of Nigerian Agencies in Int’l Awards - Omojafor
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PERSONALITY INTERVIEW
To most ad practitioners, Steve Bamidele Omojafor, Chairman of Zenith Bank Plc and Group Chairman, STB McCANN, is a living legend in the field of advertising. In this interview with Ntia Usukuma and Abiodun Obisesan, this tenacious ad man unveils those unique principles and qualities that have kept him active and relevant in the profession for 40 years. How did your romance with Advertising begin? My professional life did not start with STBMcCANN. After graduation, my first job was at Daily Times as a journalist. I worked in the Daily Times for a little over two years as a reporter and eventually, sub-editor. I was responsible for producing the newspaper and casting the headline. In those good old days, Daily Times was the biggest and fastest selling newspaper in Africa, South of the Sahara. At that time, I worked with my chairman, Alhaji Babatunde Jose and other great minds. I left Daily Times in November 1974. I later got attracted to the world of Advertising when I crossed over to work for Lintas. Lintas advertising, at that time, was the biggest in Nigeria. It had strong affiliations with Lintas overseas in England and I was fortunate to have had a great part of my training with Lintas overseas. I worked with Lintas till 1978 when two colleagues of mine who were the best decided to set up Rosabel advertising. Chief Akin Odunsi who is now a Senator and Mr Tunde Adelaja, now retired from marketing communications and I set up Rosabel. We managed it together for about 13 years before we decided to set up our second line advertising agency which now became STB-McCANN. Then, it was STB Communication when we first set it up. In Rosabel, Akin was the Managing Director. I took charge of the client service and Mr. Adelaja took charge of media development. We ran Rosabel from 1978
to 1990, the time we decided to set up a second line agency because we had succeeded with the first. Why was it necessary to set up another agency? We did that because at the time, you couldn’t handle two competing brands at the same time. So, we decided to set up STB. S stood for Steve, T stood for Tunde Adelaja and B stood for Babalola Akinodunsi. And the lot fell on me to run STB. We started off with just five staff members. I was in my third month trying to structure the agency, just about the time the biggest upheaval hit the industry in those days. McCANN ERICKSON, from the UK came to Nigeria to try to pick a new agency to handle the Coca-Cola brand. Coca-Cola has been in mainstream advertising for so long. They must have heard about STB then; so they came to search for a new agency. So, they spoke to a good number of agencies and there I was; STB Communications was just about three months. I was no way close to anything as big as that, just a young company trying to get along. So they came as news fly very fast. I thought that I should give it a shot. I got in touch with a man called David Henshaw who was the McCANN agent, who had worked with Grand in Nigeria. So, he was still the same person that was sent to Nigeria from England to find out the market, as it were. I got in touch with him and he said that we are not capable as an agency. I told him that STB can mould up to the culture of the Coca-Cola brand and McCANN
ERICKSON. I told him that, established agencies are not likely to bend and make flexible adaptations to the foreign agency. During the pitch, there were agencies that made flamboyant presentations. I didn’t have a lot to present but I presented the young people I had and what I have done in the last 10 years. At the end of it all, we won. It was one of the biggest challenges of my life. It was difficult because we had to look comprehensively at the problem. We had to read up so much about Coca- Cola, both local and International. We had to go through all their profile outside, and of course in Nigeria. We had to find out what their problem was with their former agency and what their expectations were. So, we tackled all this and needed more investment in personnel with real experience, quality people in the industry. I needed to fast-track, reequip the agency and create an enabling environment to service this big account. It was probably the toughest time of my life. I worked all day and night training people. Later McCANN ERICKSON fused with us and we became STB-McCANN. After that we went after Nestle, Smithkline Beecham now GSK, and a few other businesses here and there. You said your initial focus was training and re-training. Today, probably because of frequent mobility of labour, most agencies refuse to spend much in this area. What is your view on this? They have to look beyond their nose because whoever they are training will add to the growth and development of the industry. It is not just about you. A lot of people got trained and of course, they left. Maybe they leave to go and set up their own agency or work for other agencies, but that training is not wasted. You might think that you have lost money training this person; I was the first agency to package my workers and send them Omojafor to McCANN ERBrandiQ 17
PERSONALITY INTERVIEW
Omojafor
ICKSON in South Africa to spend a month to three months. Not one person at a time, each time I will send a client service person, a creative person and a media person to South Africa; they work and learn together as a team to be better equipped. I know the value of training. What I did was that I put them in a form of bond to stay for at least three years and even within those three years, if the person is adamant to go, I will wish him or her well. Even when I feel bitter, I try to look beyond it. Today, we are all friends. Some of them have their agencies or work in other agencies where I receive calls form their MDs that my products are doing well. So, I don’t think we should feel that bad. People have to move on. Imagine if I kept everybody here in the last 20 years, they have to go for younger people to come and then the training continues. Training one person is part of building the industry. You have interacted with creative persons across different continents, do you agree with those who say that the level of creativity in Nigeria is rather too low? It is true we are not there yet. You will want to ask yourself, why Nigeria is not playing the same kind of football like Brazil, Spain, Manchester United, Chelsea or Barcelona. It is just the same trend. I once attended a training programme outside the country and we were discussing creativity across the board. Looking at creativity in Africa, Europe, Australia, Asia, Canada and we discovered that the bulk of creative people in these places may not have gone beyond the equivalent of our secondary school certificate. But the environment in which they operate is so wonderful, the exposure to technology is high, the environment is clean, so this makes all the difference. The little kid in England is already being faced with how to understand symbols, colours, BrandiQ 18
movement across the universe. At that early age, their brains are challenged than what you have in Nigeria here. We may need to also admit that the intelligence quotient over there is probably more than what we have here. The typical Briton or American doesn’t necessarily have to go to the university to excel. They leave secondary school and go straight into the creative world and by the time they have spent 5-10 years, they become geniuses. At that stage, they don’t have to be taught the difference between one equipment and the other. Also, the clients they work for over there are very exposed. The people that they work for are not people that you must reduce everything to the barest little thing for them to understand. Here, in those days, if you advertised a bank without seeing the customer and a manager shaking hand, you had not advertised anything . If you advertise a detergent and you don’t show the foam covering virtually the entire screen, then you haven’t done it. But over there, they don’t need all that. Advertising detergent is not based on how much foam you are able to produce. The level of awareness is high. You can even go extrinsic completely. You can sell detergent by just showing a happy person, either in the office doing something else and the message sinks. Can lack of exposure to international awards be one of the things affecting creativity in the industry? It is a combination of many things. Nigerians don’t enter for some of those awards because we underestimate ourselves. Also, the cost of entering for those awards doesn’t come cheap and a lot of agencies can’t afford it. Even the LAIF award that we organize here in Nigeria, how many agencies are participating? They are not entering because they take a look at themselves, their mate-
rial resources and decide against entering for the award. Even if you have the materials, you are supposed to part N250, 000 for an entry and you want to enter for about four which is already a million. They simply pull out. So, it is still our own local problem. Even without going to for Canes, Blue Lions or any other international awards, we can recreate ourselves locally. I don’t even subscribe to jumping into the world arena when, internally we are still trying to find our feet. I think what you should do is that after LAIF Award, some of the award winning materials should be sent for Canes Award. For instance if an agency won seventeen awards in LAIF award competition, it shouldn’t stop there. The AAAN should work in conjunction with the agencies that won to pick the best three or four materials and present them in international creative award competitions. If the cost is too high, let the AAAN, in conjunction with the agencies invest side by side to enter at least five creative materials in a year - because I don’t think AAAN is showing enough interest in all these international awards. They just talk and stop at the LAIF award without doing anything extra. They should spearhead the participation of Nigerian Agencies in International Awards. That will at least help to grow the industry. I will also mention it to the current executive; we all should be working together to build up the Nigerian market. Is the trend of agencies bringing in foreign creative directors helping as well? In terms of freewill, if you have the right material from a foreign agency, it could help at least in the areas of process and procedures. You need to talk about process; a lot of agencies don’t have a formal process in place and what do I mean about process? From the time you get a brief to the point
PERSONALITY INTERVIEW you produce marketing communications materials for a brand, there are processes you have to take. A lot of agencies do not have a research and planning department. It is this department that should go to the market to find out what the market thinks and feels about the product in terms of the usage, taste, colour, competition and quality of the brand. So they interrogate the brand before they can now pass their findings to the creative unit. Then they can now start the campaign proper. Most times, the Nigerian client doesn’t understand that creativity takes time; they will give you a brief today and expect you to deliver in the next one week. Over there, the week you start thinking of how to formulate a new brand is when you get your agencies involved. They are involved in naming a brand, looking at the formulation of the brand, testing it out here and there. So, you form that partnership right from day one and you are already part and parcel of it that when you plan or talk about it, you talk with all authority. But here, we wait until the brand is signed, sealed and delivered and the clients come to you demanding some magic in the next one week. So, we have a lot of problem with our system by not doing things the right way. How do you rate the Agency-client relationship in Nigeria? It all depends on the way the agency positions itself. If you show enough expertise in your service delivery to get the kind of brand that they desire, they will be happy. But if they hire you and realize that all you want to do is run errands for them, then they may not respect you. You must challenge their decisions with superior knowledge. If you don’t have well-trained guys in your team worth their respect then that will pose a challenge. The clients are always better trained than the agencies up till today. This is not supposed to be the case. Agencies are meant to be more knowledgeable. That is why you are a consultant. How is STB McCann doing at present? STB McCann is about 20 years old now. You know I stopped managing it directly about seven years ago. Talking about succession, we have everything in place for a smooth and consistent hand over. However, the last two to three years, it has not been that
rosy for the company. You know the former Managing Director left. The situation was not the best; so we are trying to restructure the agency. We all sat down to talk about it and now we are in the position of trying to restore the company. We are looking at the structures from staffing, equipment, clients, portfolio and all that. I am going to spend the whole of this quarter to put all that in place. Part of it was moving the agency from Yaba to Ikeja. Is affiliation beneficial to local agencies? It is, but it should not be a do or die affair. If you are able to work out a good affiliation, besides furnishing them enough information about the market, it can be useful. A lot of the time when they have a pan-African client, they are not willing to come to Nigeria to start doing the market research and product insight. So the local agency can always handle this. There was a lot of symbiotic relationship and that is what makes it work out well. They have something to benefit from you; you also have something to gain from them. Basically, business referral is important. Really, if you can get a good affiliation arrangement, there are benefits. What is the value of Nigeria’s advertising sector? I have a grouse with this information that marketing communications or advertising is worth 50 or 60 billion naira. If that means anything to you, it doesn’t mean anything to me. Because I always ask myself, what percentage of this has passed through the agencies? Take for instance, virtually every big company and multinational, even those from South Africa, Asia have their own agencies inside their bedrooms. They poach people to set it up; they poach creative people, media people, clients’ service people, and then they run it as their outfit. So, what is the big deal about putting it on the papers that marketing communications is worth N60billion. So, we have been clamouring that APCON and AAAN have to sit back and find out exactly why clients are taking over the sole purposes and roles of agencies. They buy media, do creative, client service, radio-TV production; so what is left for agencies to do? Last year, figures were thrown all over. I know that APCON has been working seriously to come up with new guidelines and regulations that will guide what clients can do and what
agencies can also do. I am hoping that it will take effect within the first quarter of this year because that will sanitize the whole place. We are also looking for legal backing so that no client is authorized to set up an agency. Some practitioners feel the new APCON regulation is not in the spirit of increased foreign investment and globalisation that the federal government is trying to drive. What is your view on this? AAAN will not set up a regulation that is anti-government rules and regulation. If that clause is there, then it must be in line with the government policy. If I go to South Africa to set up a company, they will probably give me more stringent rules than that. So, why will they come here and take you for peanuts when we cannot do it over there? So, if you must set up 100%, go through our rules and set up 100%. If you want to come via partnership, go into partnership and follow the rule. For a long time we have exposed ourselves to all kinds of exploitations. I want to assure you that whatever information they have put in place is going to affect the industry positively. I have no problems with bringing in foreign experts, but when you come, please play according to the rules of the game. Because you can’t be an island to yourself, if you want to interface and interact, share information and expertise as you go along. We should partner only with any foreign organization and countries, who are also willing to partner with us legally and respectfully. So, I believe that this is the only way for industry going forward. And agencies who cannot cope with the upward trend will have to fall out.
Omojiafor BrandiQ 19
INDUSTRY F E AT U R E
YBO @ 50: Igniting Debate on Nigeria’s Image Manager By Abiodun Obisesan
whose prime responsibility it is to manage Nigeria’s image. Although it was unanimously agreed by most speakers at the event that all Nigerians have a role to play in accelerating the economic wheel of the country forward, it was stated unequivocally that the responsibility of laundering Nigeria’s image lies with the Nigerian media and the government at various levels. In as much as Major-General Ike Nwachukwu (rtd) tried to give a holistic appraisal of the problematic image of Nigeria through a series of historical addendum and panaceas to mitigate this challenge, his speech yet did not address the subject matter objectively. Instead, his submission aptly paraphrased J.F Kennedy’s cliché, ‘Think what you can do for your country and not what your country can do for you.’ Understandably,
Yomi Badejo-Okusanya
U
ndoubtedly, Nigeria’s image in recent times has become a major concern to many Nigerians at home and in the Diaspora. No doubt, the obvious plummeting of the country’s internal and international image in spite of the huge human and natural potential will continue to elicit intellectual discourse from communication professionals. Maj. Gen. Ike Nwachukwu (rtd) With the growing spate of insecurity, religious violence, fraud, corruption, electoral irregularities, unemployment and the like, the perceptual value of the average Nigerian which has been tactically re-engineered through several rebranding projects in a bid to upgrade the battered image of the country, has been largely futile over the years. At the colloquium in honour of CMC Connect’s Yomi Badejo-Okusanya who turned 50 recently, there was a raging debate on BrandiQ 20
Gen. Nwachukwu is a respectable and revered statesman who has steered the government machinery in various capacities, and at different times. His position is akin to Odumegwu Ojukwu’s famous book entitled: Because I was involved. In trying to achieve a soft-landing for the Nigerian government, Nwachukwu enjoined the media to eschew negative reportage of Nigerian affairs. “The Nigerian media should review its strat-
egy of laundering the image of Nigeria. It is pertinent that the media avoid painting the country bad; they should try to strike a balance in their duty of reporting the country. I encourage you to condemn bad and ugly developments but also eulogise millions who are of exemplary character in the society,” he urged. It is important to state that accuracy and fairness form the major construct of the code of ethics for the Nigerian journalists; the public has a right to know. Hence, it will be highly contradictory to this code of conduct to trounce news items meant for the public consumption on the altar of patriotism and nationalism. However, the journalist is also expected by the same code of ethics to present factual, accurate, balanced and fair reports. This is the ultimate objective of good journalism and the basis of earning public trust and confidence. Journalism entails a high degree of public trust. To earn and maintain this trust, it is morally imperative for every journalist and news medium to observe the highest professional and ethical standards. In the exercise of his duties, a journalist should always have a healthy regard for public interest. In her submission, Prof. Dora Akunyili bemoaned the self-destructive tendencies of some Nigerians who have unwittingly cast aspersions on her effort to rebrand Nigeria during her tenure as the Minister for Information and Communications. Akunyili said: “Nigeria’s greatest challenge is its image. I embarked on the ‘Good People, Great Nation’ rebranding campaign in order to fast-track an acceptable image for the country. Today, we have great icons that can be a selling point to the outside
I N D U ST RY F E AT U R E
world, that most Nigerians are criminals or fraudsters, and that Nigeria is a country where nothing palatable happens.
Prof. Dora Akunyili
Mr. Lolu Akinwunmi who was the Chief strategist and Chief Executive of the rebranding campaign during Prof. Akunyili’s tenure as the Minister for Information and Communications, similarly highlighted some positives and negatives of Brand Nigeria. He stated that the achievements of Nigerians in academics, science, entertain-
Hon. Femi Gbajabiamila
world. It is sad that the Nigerian media has not helped in this regard.
campaign when she held fort at the Information and Communications Ministry then.
“The media is awash with negative reportage which has never helped to build the image of the country. All civilized countries have their challenges and their media down plays them. The Nigerian media can help a great deal in reporting positive events in Nigeria. We should learn to tell our own story to avoid distortions and misrepresentations from foreign media,” she added.
According to Gbajabiamila, ‘‘the rebranding campaign of the former Minister of Information and Communications was fundamentally flawed because the rebranding effort was basically ‘bottom-up and not top-down’. Also, the complaint by Mr. Akinwunmi on low budget from government is irrelevant because branding does not require so much money.’’
She also related her experience at Charles De Gaulle Airport, in France, where her purse was stolen when she was the Director-General, NAFDAC. She argued that the daylight theft did not get any mention in the country’s media in spite of the embarrassment caused her person on the visit. Could this incident provide a fundamental ground for the Nigerian media to ‘kill’ stories that should expose criminal and dubious character in the society? In her characteristic way, Mrs. Maiden Ibru, wife of late publisher of The Guardian, Dr Alex Ibru, spoke extensively on the role of the media, what it represents and some of the misconceptions people have about the industry. ‘‘There is no newspaper house in Nigeria that I know that is set up to malign any government or individual,” adding, “we must note that the media has a goal, primarily to protect the people’s interests. So castigating the media for Nigeria’s battered image is greatly misplaced.” The negative perception about Nigeria, Akunyili also noted, has gone unchallenged for so long that it is beginning to stick in the consciousness of most people around the
Mr. Lolu Akinwunmi ment, and others can be improved upon to enhance the image of Nigeria. However, he stated that vices such as smuggling, fraud, kidnapping, electoral irregularities, poor infrastructure and the like have brought the image of the country into disrepute. He, however, highlighted some panaceas for managing the image of the country. ‘‘It is important that government-driven campaigns should not be deployed to patronise the global community. Also, the obvious disconnect between what is being said and actual experience must be resolved. Nigerians still need to do more internally before deploying its tourist potential effectively,” Akinwunmi said.
In a similar vein, Chairman of the Nigerian Bar Association, Lagos Chapter, Barrister Monday Ubani Esq) commented on the issue of whose responsibility the task of image building is. Ubani said: ‘‘Government officials present here today have harped on the need for the citizens to do more. But I tell you the greatest image launderer is what the government does with the environment. If the environment is conducive, the people will be speaking positively about the nation. You don’t have to spend millions on CNN to project the image of the country.
He also pointed out the several image management agenda by different administrations have not helped matters. This situation, according to him, has not allowed the image of Nigeria to blossom. ‘‘The challenge of these inadequate image management campaigns did not allow the rebranding efforts to grow,’’ he submitted. However, a member of the House of Representatives from Lagos State, Hon. Femi Gbajabiamila faulted Akunyili’s rebranding
Barr. Monday Ubani (Esq) “As long as the country is safe, bustling with all infrastructure, such as good roads, portable water, safe aviation, stable electrical power supply, I assure you that investors BrandiQ 21
I N D U ST RY F E AT U R E and tourists will be coming in droves. The major priority around the world is good governance and people-centered government. Other flourishing nations enhance infrastructure and human capacity in a bid to remodel happiness in their country,’’ he added. On the alleged high-handedness of the Nigerian press, Ubani said: ‘‘I must say that the Nigerian press is soft and timid in its journalistic duties. They have not really highlighted the level of corruption, indiscipline, unemployment, social vices in Nigeria. The criticism against developed countries is very strong and their respective press often champion it. They hold the government accountable and the system allows it. The Nigerian press is not doing enough because it is afraid and intimidated with threats from government personalities. The press should criticise as well as praise the government when issues arise.” The Nigerian market is evolving because its economic potential are well-recognized among foreign investors. However, disparities in living standards, security challenges have impeded the business opportunities inherent in the country. These were the thoughts of erstwhile president of Public Relations Consultancy Association of Nigeria, Mr Emeka Maduegbuna, who also spoke at the colloquium. ‘‘I think that there is an unnecessary focus on the media because the media is a channel in capturing events in the society. However, the challenge is that Nigeria’s reputation has not been professionally managed. So, there is the need to get experts to do the job. Apart from the negative issues in the country, there are also positives that can be projected in laundering the image of the country,” he said.
Maduegbuna further remarked: “One of the major deficiencies in managing Nigeria’s image is that professionals are not at the forefront of the move. The way forward is that professional competence should be the hallmark of managing the embattled image of Nigeria. Even the campaign of changing attitudinal ways of Nigerians can be done professionally. We need a more professional approach in managing the image of Nigeria.” BrandiQ 22
When Your Brand Lies!
Jide Ayegbusi
There was this popular ad on TVs and billboards. The ad introduced a new brand, a croissant. In fact, the feeling was great, the visuals - graphics and images - were powerful and compelling. To crown it all, a popular celebrity was used to personify the brand. If there were a thousand and one consumers craving for the product, I was one of them but for several weeks, it was not available in the traffic like other FMCG (Fast Moving Consumer Goods). I finally stumbled on the product on a very tiring day while returning home but the new traffic law in Lagos forbade my pouncing on it immediately even though the adrenalin rush was unimaginable. The whole excitement turned dissonance even before consumption. The product size could not measure up to the package, same as the size portrayed in the advertisement. I felt cheated, embarrassed and discomforted for wasting my precious hundred Naira on a product that could not offer value, which a fifty Naira worth of product would. Since there was no value for money, repeated purchase will be the last thing on my mind and never would I allow my close associates to make the mistake I made. Things like this are common in the Nigeria market. Since our consumer law is extremely porous, advertisers could advertise, cheat consumers and go unpunished. If the managers of these brands have forgotten, then they need to be reminded that a brand is a promise to the consumer to deliver a particular desired experience most of the time. They need to be reminded that consumers offer their trust and loyalty with the implicit understanding that the brand will behave in certain satisfying ways through product performance and through appropriate pricing, promotion, and distribution programs. Sadly, many brands fall below this vivid description. Advertising images make implicit promises. When the product doesn’t match up to the advertised promise, isn’t that like cheating, or on some level, stealing from people’s hopes?
Maybe brands can get away with this sort of thing because nobody is really paying attention anyway. But it’s worth thinking about. I am sure you share my view! It is high time Nigerian brand managers knew that promises matter to people. If you don’t deliver what you promise to people, in time, you won’t matter to them. This is true in every product category. This is true in all walks of life. More importantly, in our social media crazed world, vetting out broken promises made to consumers has instant ramifications to the credibility and trajectory of your brand’s perceived value. It is true that the goal of any brand positioning exercise is to develop a brand promise that is unique, compelling and believable. Any successful brand positioning project must evaluate all potential brand promises against these three criteria – unique, compelling and believable. The winning promise must deliver against all three criteria, or it won’t work. Lie shouldn’t be told to sell your brand. A lie told will only stimulate trial but never will consumer repeat purchase. Most times, a consumer once deceived will make sure others never fall victim to the falsehood. Tell the truth, and don’t shoot yourself in the leg. Never over-promise and under-deliver. I’ll draw the curtain over this issue with these few words from a marketing legend, Ekwunife Okoli. He says that advertising is powerful but ad is not what the consumer is buying. You can spend one billion Naira on ad, if the product lacks merit, you would not sell. In fact, your ad begins to irritate. The value of ad is based on the fact that product is right. There is a coinage in marketing, which underscores this, that the best way to kill a bad product is to advertise it. Does your brand tell lies? If yes, kindly readjust! Jide Ayegbusi is a Brand Strategist at MediaPlus International. informjiday@yahoo.com, 08036566809
I N D U ST RY F E AT U R E
Consumer Insight Is Key to Market Success Sonny Ebhomenye
As a veteran in the market research industry, I have been privileged to witness a number of changes, especially the adoption of powerful hard- and software technologies. While some of these technological breakthroughs have been evolutionary, others have had revolutionary and transformative impact. These technologies have assisted in generating and accessing large databases: Applications like SaaS enterprise software, a data analytic platform, can handle over a billion respondents highlighting opportunities previously hidden to marketers. WalMart, the biggest retail chain in the world, uses this application in determining which products should be marketed as cross-promotional items, increasing consumer spend per visit. Financial industries also use similar analytics to cross or up-sell new products to customers. They also use it to track fraud which hitherto was difficult to achieve in large and complex business environments. The growth of Web 2.0., otherwise known as the social media, has also lent a hand to marketing companies who can now directly seek critical information from consumers without third parties. The volume of data available on social media is so much that it has been dubbed BIG DATA, and presents a major challenge to business owners desperate to make sense of the sea of data. Coca-Cola, the global beverage giant, uses the satellite technology to determine the best harvesting time for fruits ensuring a more consistent flavour. This offers consumers a consistent taste across the seasons. The advent of digital media, such as digital TV, provides data on programme ratings without their involvement. There are also devices which are capable of passive listening. All of these developments have made traditional research, quite traditional, and they offer marketers opportunities once unseen in the history of commerce. However, the volume of data available to organisations has also become a source of threat. Connecting all the dots
in a market that’s moving on light speed can make all the difference between failure and success. How then can companies take advantage of these sources of insight to deliver exceptional customer experience? In the Seven Principles of Effectiveness by the late leadership mogul, Dr. Stephen Covey, companies have to place first things first. Working closer with finance and strategy, marketers need to assess which products deliver the best ROI (Returns on Investment). Too often, most companies base their entire competitive strategy on their competitors. While keeping a close look on competitor activities is a key part of “enhancing” organizational strategy, it should not be the sole basis for crafting one. There are too many Me too brands in Nigeria when opportunities abound for creating game-changing products and services. If an American radio personality speaks with an American accent, I don’t expect locals to acquire same overnight. Within manufacturing, nanotechnology and biotechnology offer blue-ocean opportunities for businesses while information technology remains a dominant driver of growth. Secondly, companies need to adopt eclectic tools in collecting and analyzing data. The use of brain mapping technology is gaining grounds. Brain mapping is a set of neuroscience techniques predicated on the mapping of (biological) quantities or properties onto spatial representations of the human brain resulting in maps. This technology can enable businesses better understand consumer response to product or communication design, even at the concept stage. During the recently concluded nation’s cup championship in South Africa, heat maps were used to highlight which positions on the field of play represented major threats to opposing teams – the spots from which most shots were taken were highlighted red. Data visualisation and mapping made this possible; ordinarily these patterns would be unnoticeable to untrained eyes. Businesses must also encourage co-creation by ensuring a major part of their innovation process is supported by consumers. Companies who adopt an open source model perform better than those with a closed system. As consumers become savvier, their input into innovation becomes critical. Ultimately, in initiating and sustaining a profitable relationship with customers, marketing organisations should strive to develop a consumer-brand engagement model which recognises customers are protagonist, own the brand, and deserve 100% attention and fidelity. Sonny Ebhomenye is an international consumer insight consultant and also an adjunct lecturer at the Pan African University, Lagos. BrandiQ 23
MARCOM TUTORIALS MARKETING, PR, ADVERTISING,MEDIA AND BRANDING
Dear Reader, It is a delight to know that, you are beginning to understand the construct of the Marcom Tutorial segment in the BrandiQ magazine. Some of you, particularly students of the school of media and communication of Pan African University, Lagos, University of Lagos, Akoka, Lagos State University, Ojo, Redeemer University and Babcock University have shown so much interest and commitment to the course of the Marcom Tutorial project. Other schools are Yaba College of Technology, Lagos State Polytechnic, Covenant University, Olabisi Onabanjo University, Caleb and Bell Universities. We are looking forward to the Nigerian Institute of Journalism and other Universities across the country catch the fire and seize the moment to their own advantage. Marcom Tutorial is a platform in the BrandiQ magazine developed to support learning, training and scholarship amongst marketing communication (Branding, Marketing, Media, PR, Advertising, Design and allied disciplines) students and new entry professionals in the industry. To ensure the students benefit fully from this opportunity, the magazine is currently distributed free to students and a special website also designed to power the content digitally. Just check out www.brandiqng.com. We also expect students to fully participate in contributing stories about events and happenings in and around their campuses and existential environment. Beyond the tutorial, postgraduate students (including doctoral candidates) can contribute researched articles in the BiQ Journal, another segment of the magazine. From the May edition, we expect students and new entry professinals to take hold of this segment and own it. Meanwhile, the board of BrandiQ will do all it can to ensure that the tutorial standard is maintained to the benefit of the readers. Subsequently, workshops, seminars and conferences will be set up to complement the editorial. Have a great time of study. Co-ordinator
Desmond Ekeh
meet the tutors
Idorenyen Enang
Phil Osagie
Bola Akingbade
Richard Ikiebe
Josef Bel-Molokwu
Joko Okupe
BrandiQ 24
info@brandiqng.com. www.brandiqng.com
Casmir Onukogu
MARKETING Principles of Marketing • An Examination of Product Planning, Consumer Analysis, Pricing, Sales Distribution and Promotion
ties and threats), which will help them measure their strengths and weaknesses against competitors in the market. With this, the firm will be able to identify areas it has an advantage over competition and use it as an opportunity to fill in the gap.
Every human being has needs or wants to satisfy. For the satisfaction of these needs, something in form of a product must be available. A product is anything which can be exchanged in order to satisfy the needs or wants of a consumer or customer. For a product to satisfy consumers’ needs or wants, the quality, packaging, labeling, price, colour and other attributes must be good.
Phase 3. Marketing Research In this phase, a company may decide to do a marketing research in form of focus group. Focus group allows the company to ask consumers their likes and dislikes of the product. This will help to further fine-tune the product in areas where adjustments need to be done before production starts.
Every product that we use or see in the market passes through a certain process - from the conception of the idea to when the product is introduced into the market. This process is what is known as product planning. Product planning involves managing a product through its life, using certain marketing strategies which may include repackaging, increased distribution channels, increased advertising budget, promotions, etc. To successfully manage a product through its life, market and marketing research are required. Product planning comes in phases examined below: Phase 1. Developing the Product Concept The first phase of product planning is developing the product concept. What is normally done at this stage is for marketing directors or marketing managers to come up with ideas for a new product as a result of consumers demand in the market or trends in the market or to monopolize the market. After the product is conceived, managers will begin to plan the composition of the product. Some companies can even develop a product model as a guide. Phase 2. Conducting Market Study The next phase in product planning process is to study competition in the market. To really get to details on key competitors, some companies may decide to conduct a market research. Some may also carry out a SWOT analysis (strengths, weaknesses, opportuni-
Phase 4. Product Introduction In this phase, if the result of the survey carried out in phase 3 is favourable, the manufacturing company will decide to go ahead and introduce the product on a small scale into major cities or in regional markets. The company may decide to run advertisement and sales promotions for the product to persuade and induce purchase trials by consumers. If consumers show positive response to the product; and if sales increase, the company will then consider expanding distribution channels on a national basis. Phase 5.Product Life Cycle Product planning must also include managing the product through various stages of the product life. These stages include introduction, growth, maturity and decline stages. • Introduction -at this stage the product is made for public purchase in the market. • Growth stage -at this stage sales continues to make progress. • Maturity stage -at this stage sales is slowed down because no additional channels to explore to increase sales. • Decline stage - at this stage sales begin to decline and drop. Consumer Analysis: Every marketing effort aims at satisfying the needs and wants of consumers: Consumer analysis is the study of consumers’ behaviour in terms of their life style, purchasing pattern/behaviour and segmenting them into groups so as to be able to satisfy their needs and wants.
Consumer analysis involves some kind of marketing research in order to be able to provide answers to questions such as: • Who and who are the target audiences for the product? • Will the target audience be able to buy the product or is the purchase decision going to be influenced by another person? • How will the target audience get to buy the product? • What social and cultural factors might influence the purchase of the product? etc. When answers are provided to these questions through consumer analysis, helps manufacturing firms and service providers to introduce products or service into the market without running into problems. Sometimes, people are confused with “pricing” and “price.” At this point, an attempt is made to distinguish between the two. Pricing Pricing is the process of determining what a company or a firm will charge consumers or customers in exchange for its products or services offered to them. With the exception of pricing, other elements in the marketing mix does not create sales avenue. Pricing structure must take into consideration the cost to produce the product, materials used in production, time, labour and overheads as well price of competing products in the market. Pricing has objectives. Objectives of Pricing: The objectives of pricing include but not limited to the following: • To maximize profit through sales. • To be able to face and manage a competitive situation. • To maintain market share in a particular market through friendly pricing policy. • To capture a certain market share in highly sensitive markets through lower price strategy. • To recoup returns on investment. Price Price is the actual amount paid by a conBrandiQ 25
MARKETING
sumer or a customer for a product/ goods, or services provided by a manufacturing firm or rendered by a service provider. Price is also the monetary value attached to a product or service. In some quarters, price is referred to as fees, fare, interest, etc. Certain factors can determine the price of a product. The following factors can help a firm to determine the price of a product in the market: • The demand for the product in the market. • The cost of producing or manufacturing the product • The price of competing products in the market • Economic indicators such as level of inflation, values of the currency, purchasing power of consumers, disposable income of consumers etc. Depending on a given situation, a product owner can apply any of these pricing strategies for its products: • Product penetration strategy: This is where a firm considers price reduction to be able to have easy penetration into a market that already has players. • Competitive pricing strategy: Perking the price of a product based on what competitors are charging in the market. • Promotional strategy: This involves cutting down the prices of products during festive periods such as Easter, Ramadan and Christmas to increase sales. • Demand strategy: This is where the high demand for a product helps to determine the price of a product such that when there is less demand for such a product, price reduction is considered. • Price skimming: This is a situation where a company charges a higher price initially for a newly introduced product to meet cost of production and later reduces the price to improve sales through consumers’ patronage. • Optional pricing: Mostly noticed in entertainment business where people are made to pay extra amount for reserving a place for them. Other pricing strategies abound. Sales Distribution The distribution of products plays a very vital role in marketing without which, products, goods and services will not get to consumBrandiQ 26
ers. Sales distribution is the process through which goods and services move through the right channels to reach consumers at the right time, place and quantity at a reduced cost. Sales distribution can take the following patterns: • Manufacturer-Consumer: This is a situation where the manufacturer or producer involves in direct sales of products or goods to retailers then from retailers to consumers. • Manufacturer-Retailer-Consumers: Here, the retailer has a direct link with the manufacturer and then feeds consumers with the products. • Manufacturer-Wholesaler-RetailerConsumers: This is the most common channel of distribution in our marketing system because of the nature of the market and it involves a long process. The following factors can affect pattern of sales distribution channels of a firm’s product: • Target audience in focus. • The level of perishability of a product. • The use of a product and frequency of purchase. • The complex nature of a product. • The need for effective control. • The market structure. Sales Promotion Sales promotions is any kind of incentive aimed at consumers to further encourage them to patronize a particular brand or product against a competitor. What really makes sales promotion to stand out is the creative idea. Steps to follow to evaluate sales promotion ideas Step1: Identification of objectives: The objectives of the promotions as it relates to trade and consumers must be clearly stated. The objectives may be to induce product trial, fight competition, etc. The objectives must be put to writing in specific and measurable form. Specific and measurable promotions objectives can read thus: To increase sales by 35% after three months of promotions. Step 2: Reaching of agreement: Every member of the sales promotions team such as marketing and brand managers must agree to the objectives arrived at because fail-
ure to do so results in decision makers’ pushing for different objectives entirely. Step 3: Evaluation procedures After the objectives have been stated and agreement reached, the following evaluation process should be used to rate any sales promotion idea. • How good is the entire idea? Every idea should be assessed against stated objectives. If the objective is to increase sales by 25%, is it considered a good idea? • Will the sales promotion ideas appeal to our target audience? If the sales promotion is aimed at children, decision makers need to find out if the idea will appeal to the target in mind. This requires target audience analysis. • How unique is the idea, or is it similar to what competitors do? Sales promotions must try as much as possible to be unique so as to draw consumers’ attention. Sales promotions must be driven by creativity in order to attract consumers’ attention. • Is the promotion presented in clear-cut ways? Sales promotion should be presented in clear, friendly and simple ways so that consumers can easily understand the offer to respond to it. • How cost-effective is the planned idea? This requires proper evaluation to know if the planned promotion will achieve the stated objectives at a reasonable cost. Conclusion Every effective product management must start from product planning and then pay great attention to pricing, distribution and promotions. When a brand manager or a marketing manager is thinking about organizing sales promotions, he or she must first of all think about the target audience, the objectives and the cost implication. An Assignment: Using 800 words, discuss five factors that can affect effective product distribution in Nigeria. First prize -Ten thousand Naira worth of phone recharge cards. The two other best written answers will get 3,000 Naira worth of recharge cards. Answers should be sent to: info@brandiqng.com.
PUBLIC RELATIONS Outline: Managing Customer Relations through Public Relations Platforms
The complexity of 21st Century customers is that they are more aware of global trends and development because of the internet that has helped collapse boundaries. To this end, brand owners must be creative and innovative in keeping this complex and informed consumers by having good relations with them. One way by which firms and brand owners manage their customers is by having good relations with them. In Nigeria, for instance, only a few organisations have tried to maintain good customer relationship, while others still toy with it. The Concept “Customer Relations and Customer Relationship Management” Customer relations is the way a business communicates and relates with the public to make them and retain them as customers. It also has to do with the overall interactions between a company and its publics. Beginning from the late ’90s till date, maintaining good customer relations has become a strategy most companies use in winning customers’ confidence without spending much money and time. Good customer relationship of a company can help build a positive image for the business and sustain customers’ patronage and loyalty in the long run. The need for companies to maintain closer relationship with their customers brought about Customer Relationship Management (CRM). Customer relationship management is the act of building and sustaining a stronger relationship with customers so as to enhance their loyalty to a particular brand and in the process discourage defection to competing brands. Customer relationship management evolved because of the attempt to expand the scope of marketing due to the failure of traditional marketing effort to sustain sales of some consumer products and customer loyalty. This led to the expansion of the original 4Ps
of marketing with additional 3Ps -namely: perception of service, people and process to gain more consumer attention for products and services. Deductions from the Discussion • Without assessing customer relations, it will be difficult for a company to know what customers or the public thinks or feels about the company and its products and services. • The best ways to carry on with customer relations are to treat customers well, listen to them and continuously ask them what they feel about the services or products offered to them. • It will be difficult to grow a company without a proper understanding of the relationship it has with its customers. • It is imperative for businesses to cultivate good customer relations to attract and keep customers. • Businesses that do not cultivate good customer relations may likely experience customer turnover, or customer defection -terms used to describe loss of customers. • Sectors mostly affected by customer defection include banks, telephone service companies, Internet service providers, insurance firms, airlines, etc. • To sustain customers and win their loyalty, companies need to operate an effective customer relationship management programme that should run through the entire organisation. Ways to Maintain Good Customer Relations in Business • Always give a listening ear to customers’ complaints and provide prompt and courteous solutions to their complaints. • No matter how bad a customer’s complaint might be, try as much as possible to find a solution to the complaint that will make the customer happy at the end of the meeting. This is important because a customer’s complaints actually constitute an opportunity to make a lasting impression, whether positive or negative.
• The quality of service a business renders to customers goes a long way in shaping customer relations. Customers who are satisfied by the business will always come back for a repeat purchase, provided the product or services are of good quality. Poorly rendered services or products that do not meet expectations will put customers away from the business, other things being equal. • When it is difficult to find out whether customers are happy with the business or not, conduct a marketing research. This will help to find out what ideal customers are thinking about the business and areas the business can make amends to satisfy them better. The concept ‘Public Relations’ Public relations is a strategic communication process that aims at building a symbiotic relationship between organisations and the public through articles, press releases, speeches, etc. It is also a way through which a firm communicates and relates with its various publics, such as customers, employees, suppliers, government agencies, and the society or community in which it operates. Tools used in PR for Managing Customer Relations Media relations: Media relations lays emphasis on how messages are circulated through media channels to help portray and protect the image of the business. Media tools may include media statements and facts, concerning the business, media tour encouraging journalists to report positive messages about the business. Developing good media contacts and building good relationship with brand journalists can help manage crises and promote the business in the eyes of consumers. This has explained the reason why PR companies need to develop good relationship with brands they are working for so that the brands will be portrayed in a good light. Social media: Social media or online media these days have become very strong platforms for social networking. They allow direct interactions with customers. Social netBrandiQ 27
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working sites, such as Facebook and Twitter help drive Web traffic to brands and allow businesses the opportunity to manage issues raised by customers by responding quickly to criticisms or negative perceptions. These platforms increase exposure for brands. Newsletters: This process includes collecting contact information of consumers from customers’ data bank and sending letters to them on certain areas that concern the company. Companies use print or emailed letters to communicate with customers and through this way inform them of new products and services. Regular use of newsletters can help strengthen business connections and relationship with customers and promote the business while maintaining good relationship with the brand. Newsletters are certainly an effective way to get in touch with existing or potential customers. Brochures and Catalogue: Take home or mailed-out brochures or catalogues to customers can make customers think about the business and its products. At the same time, well-designed business or product brochures and catalogues, websites can go a long way to give customers confidence in the business and its products and drive customers to the website. Business Events: Events organized by a company are opportunities for the company to gain exposure, create awareness for their business, promote new products or services and make sure accurate information reaches target customers. From a sales point of view, events are a chance to counter customers’ doubts and build customers’ confidence for the business and its products and services. Corporate events help a company to reach out to both old and new customers and challenge competitors in the market. Speaking Engagements: This is a kind of talk carried out by a representative of a company to present it before the public in an industry convention or corporate gathering. This is a typical way of letting prospective clients know about the company’s potential and capabilities as well its products, services, corporate social responsibility activities, etc. This method may not necessarily involve a product launch but to communicate the BrandiQ 28
company’s activities and its expertise in a particular field to potential clients. Speaking at events where customers are likely to attend helps position the company as a leader or an innovator in the field. Through this way, a business can build its reputation and draws new customers to itself. Sponsorship / Partnership: Partnerships and sponsorships are good for businesses. Support for a non-profit cause can help build feelings of goodwill to a business, its products or services. Support and partnerships to carry out community project can promote business reputation as well as help consumers identify with the business or brand with good business practice and ethics. Employee Relations: Organisation’s members of staff are ambassadors for the business and its brand. When a business builds a good relationship with its employees, it makes them promote the organisation and further introduce it to members of the public. An employee who sees his or her organisation to be a partner in progress will promote its cause. This can improve teamwork, staff retention/ productivity and endear customers to such an organisation or business. Community Relations: Building good relationship with members of the community where a business is located helps build customer loyalty. Businesses that give support to community development can positively drive community support for the business and as such, attract more customers through word-of mouth to patronize the business / products. Special Events: Special events can be organized to publicise a company and its products. In such special events, arrangements could be made for a party, a dinner and a set of stunts to be performed. Provisions are made for media personnel for good coverage and publicity of the events to members of the public. This can help attract customers to the business. Media Tours: Such tours are generally conducted when a manufacturing company wants to successfully advertise and promote its newly launched product or services. Media tour has remained one of the most effec-
tive ways of product publicity. In a media tour, the organisation’s spokesperson visits media houses both print and electronics - introduce a new product or service, and calls for their support. It may also include attending TV and radio talk shows. A celebrity can be used for this purpose. A media tour might as well include airing a prerecorded interview on a famous TV channel about the company and its products. Through these ways, many people get to be familiar with the company and its products. Advertorials: Advertorials are advertisement in the form of news stories or reviews in newspapers about products or brands. Advertorials in form of news stories allow a brand to associate its advertising with the credibility of the newspaper. When an article is written by a journalist, its content will be from the angle of a third party endorsement. This allows target audiences the opportunity to see the article with more credibility than advertising messages where target audiences sometimes see them as attempt to sell something to them. This helps to attract customers to the brand. Conclusion No matter how impatient, demanding and educated the customers of today may be, they could be managed through the cultivation of good customer relationship management by the business. PR as one of the marketing communications tools can be used to manage customer relations through media relations, social media, newsletters, brochures and catalogue, business events, speaking engagements, sponsorship/partnership, employee relations, community relations, special events, media tours, advertorials, etc. An assignment: With 800 words, discuss five areas which a business can use to maintain good customer relations with its customers. First prize- Ten thousand Naira value of phone recharge cards. The second and third best answers will get 3,000 Naira value of recharge cards. Send your answers to: info@brandiqng.com
ADVERTISING Principles of Advertising
Formulating an advertising strategy requires a five-step program to be undertaken by the advertiser. The steps include:
Outline:
Step 1: Identify the key Fact: The key fact is a strategy that has a single minded statement or proposition that can attract consumers to the product or brand or why they should patronize the product. It could be price, taste, etc. A single minded statement or proposition can read thus: XYZ … the reliable courier company for your letters.
• Advertising Plans and Strategy-A Five Step Programme. • The Advertising Brief- Writing a Creative Brief. Every successful accomplishment one makes in life starts with a plan. A plan is therefore, a roadmap to make a success of whatever endeavour we embark on. Advertising plans provide the roadmap for the systematic execution of advertising strategies because without advertising plans, advertising objectives will not be achieved. The execution of advertising plans requires three key things namely: • Careful evaluation of target consumers’ behaviour related to the brand such as their income level, social class, and lifestyle (how they unwind/ have leisure, where they go to with friends or family members, media habits, and use of digital opportunities). • Detailed evaluation of the competition in terms of what competitors are doing in the market, such as promos and advertising. This provides an insight into the gap that is yet to be filled. Newspaper tear sheets and other databank can provide information for such competitive analysis. • Coordinated effort to link the proposed advertising program to the overall brand marketing strategy. Advertising Strategy A strategy is a plan to be carried out in order to achieve stated objectives. Advertising strategy is a plan of what the advertiser wants to say in form of a message about a product or a brand. It is how the advertising message is packaged and formulated that communicates the primary benefits of the brand to consumers to induce trial or patronage.
Step 2: State the primary marketing problem. This is stating the problem that is to be tackled from the marketer’s point of view. The primary marketing problem may be an image problem suffered by a brand, a product perception problem, or a competitive problem. Stating the primary marketing problem can come in this form… XYZ, which operates in the Nigerian market for 2 years, has continued to have a bad image from the consuming public…. Currently, XYZ market is being seriously affected by poor consumer patronage. This campaign strategy is being embarked upon to help XYZ Courier Company stay alive and have favourable public image. Step3: State the Communication Objective This has to do with stating in clear terms what effect the advertising is intended to achieve on the target audience or market and how it should help persuade consumers for either trial, re-trial, or patronage as the case may be. A statement like this can be what is expected of advertising to do. Position ‘XYZ’ Courier Company as safe, convenient, fast, and reliable means to send letters and parcels. Step 4: Implement the Creative Message Strategy. This is sometimes called the creative platform. The creative message for a brand is captured in a single statement called “positioning statement.” A positioning statement is how you want the target audience to see the brand or what the brand stands for, taking into consideration its competitors. Positioning statement can come in this form - XYZ should be seen as a courier company that is
highly safe and reliably convenient to handle letters and parcels in the Nigerian courier business industry. Implementing a creative message strategy requires defining the target market, identifying the primary competition, choosing a promise and offering reasons why. Defining the Target Market This has to do with the people the brand is focusing on in terms of demographics, psychographics as well as product usage characteristics. For example, Coca-Cola is focusing on the youths in primary, secondary schools and tertiary institutions, aged 13-35 years old, who are less concerned about sugar. Identifying the primary competition: This has to do with identifying the primary competitors in terms of what they are doing, their advantages and disadvantages. A careful understanding of what primary competitors are doing in the market will enable an advertiser to know how to position a brand against consumers’ perception of a competing brand. This may require some element of research and SWOT Analysis. SWOT Analysis Stands for: S- Strengths W- Weaknesses O- Opportunities T- Threats SWOT Analysis should not be done in isolation; rather it should be done against a competitor. Choosing a Promise: This aspect of creative platform amounts to selecting the brand’s primary benefit, or major selling idea. In most cases, it is the promise a consumer will benefit from the brand/product or solution it will provide to a problem. Offering Reasons Why: These are the facts to support brand promise. In some cases, advertisers can support advertising claims made about a brand with concrete information that is relevant, informative and interesting to consumers. Although sometimes it may not be possible to physically prove the promise a brand holds when it is symbolic or psychological. In this case, advertisers can BrandiQ 29
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turn to experts or celebrities to support advertising claims made about a brand. Step 5: Mandatory Requirements The final stage in the formulation of advertising strategy requires that mandatory requirements must be included in an ad. Such mandatory requirements may include the corporate slogan or logo, registered name, telephone numbers, email and website etc. Writing a Creative Brief A brief is a report written or verbal, which is intended to make people take informed decisions. Depending on the kind of problem to solve, writing an advertising brief requires following certain guidelines but not limited to: Background or Introduction This is why the advertising agency is being asked by the client to perform a certain advertising job –such as launching of a new brand of product, gaining back a lost share of the market to a competitor, or introducing a new version of an existing product. Background information can read like this: XYZ Bank is one of the first generations bank in Nigeria. For so many years now, the performance of the bank has been on the decline, following factors such as continuous Board crises, bad image, poor customer relationship management, etc. We wish to embark on an advertising campaign that will replace the existing one to highlight XYZ Bank’s new direction and image. Campaign Objectives This serves as a reminder of what the client wants the advertising to achieve. When campaign objectives are properly stated, that will help creative personnel to design appropriate advertisements that can help achieve the objectives. Considering our background, campaign objectives can read thus: • To firmly re-establish XYZ Bank as one of the most well-managed banks in Nigeria. • To achieve a minimum deposit growth of 35% in six months of commencement of campaign. • To attract more customers to the bank. Brand positioning Brand positioning statement is how the public should see the brand and advertising must BrandiQ 30
creatively express this. Considering our focus, positioning statement can read like this: XYZ Bank should be seen as a financially stable bank in Nigeria. Desired Image Considering the fact that XYZ Bank has a bad image, the new task of the campaign should be to give it the following image: -Solid and stable -Innovative -reliable in service delivery -Very efficient and effective in service delivery in all departments Single-Minded Proposition This should be the most differentiating and motivating message about the brand that can be delivered to the target audience. It should focus more on the brand than on its features. In view of this, the single-minded proposition can read like this: XYZ Bank -The effective, reliable bank. Substantiation for single-minded proposition (SMP) Since credibility and believability are important to convince the target audience to accept the key propositions made about a product, there must be evidence. Substantiation for SMP can have the following statements: • XYZ Bank offers innovative products to the banking public. • XYZ Bank is now highly profitable and stable as the 7th top bank in Nigeria. • XYZ Bank is now highly capitalized to deliver on any big business in a proactive manner. Who are we talking to? (Target market) With the knowledge of the demographic or psychographic characteristics of the intended customer, creative personnel will have specific target at which to direct their efforts. In case of a bank, its target audience includes: -The banking public -Customers in: -Government agencies/ministries -Private organisations -Investing public -Suppliers Age range is put at 16-73 years old. What Message do you want to Pass Across to the Target Audience?
The message should be in line with the slogan which is a financial institution that ensures: -Reliability -Security -Peace of mind -Efficient service delivery What would we like them to think and do? XYZ Bank is reliable, secure banking institution that offers reliable financial services even in rural areas. As such, start to use the bank immediately and recommend it to friends and family members. Campaign Requirements: Above-the-Line: -TV -Radio -Press-using selected newspapers and magazines -Outdoor Below-the-Line: -Leaflets -Stickers -Posters Table calendars New media Platforms to Explore -Facebook -Yahoo -SMS Others Events related and Public Relations Presentation Date etc. Conclusion Advertising strategy lays out the details that an advertising campaign should take. It provides a useful approach to analysing a product, brand, the consumer and competitors. The strategy becomes a roadmap or a guide to subsequent advertising efforts when it is completed. Similarly, writing an advertising brief follows guidelines which may not be limited to the ones examined above. An Assignment: Mr. B recently produced a certain brand of biscuit to be introduced into the market. He has contacted you as one who has a good knowledge of advertising for a creative direction. In not more than 800 words, write a creative brief. First prize- Ten thousand Naira worth of recharge cards. The two other best answers will get 3,000 Naira worth of phone recharge cards. Answers should be sent to: info@brandiqng.com
MEDIA OUTLINE • Elements of communication process: A marketing communications perspective • The relevance of marketing communications to brands
Communication is the transmission of a message from a sender to a receiver in a manner that will be understood by both parties. The importance of communication is unquantifiable in the world of business and in personal life. In the traditional manner, communication between human beings involves a simple process as follows: Sender-EncodingMessage-Decoding. Marketing communications is a collection of all the elements used by a brand or a service provider to communicate to prospective and actual customers. Big brands want to constantly connect with consumers, get them informed about some benefits and induce them to participate in some kind of activities. So, they use marketing communications to achieve all these and more. From marketing communications point of view, communication involves a process, starting from the Sender. The sender may be a business firm, a brand owner, a service provider, a person or a group of individuals that want to share some ideas or thoughts with particular target audience. The sender must know who the receiver of the message is before the message is sent. This is why proper understanding of your target audience is very important before communication starts. Encoding: The message has to be translated right so that the sender can send the right message to the receiver. This is known as encoding. In marketing communications, this is where advertising agency plays an important role because the creative ad agency has to put the message of the client in the proper format so that the receiver can get the right message. The format depends on the type of media vehicle used to deliver the message. For TV, a script and a story board is used. Radio requires only script. Outdoor
requires a visual; press requires a layout and a body copy or sample layout, etc.
• The media vehicles to use to communicate the message
The message: The message is the expression of the thoughts and ideas of the sender which could be a brand owner or a service provider to the receiver of the message that could be consumers or customers. In marketing communications, the message can come in forms of advertisement, sales promotions, etc. Key ingredients of a message are that the message has to be of proper language, appealing, highly convincing and sometimes educative so as to spur target audience or consumers to take a positive action about advertised brands or services.
The receiver: The receiver is the person or a group of persons the sender attempts to share his idea or message with. In marketing communications, the receiver is both the prospective and actual customers of a company. For example, prospective and actual MTN subscribers that receive the brand’s message and take a decision based on the message are the receivers of the brand message.
Message channel: This is the path or route which message passes from the sender to the receiver. In marketing communications, the sender for instance, a brand owner or a service provider, can send messages to consumers or target audience through television, radio, print (newspapers and magazines), out of home media, posters, point of sales material, pitch panels, and online media to consumers. The objective of a message is to reach as many prospects as possible. A well-packaged message through the right channel can connect immediately with the target audience and draw their attention to the brand. This is why it is important to do a study to understand the media habits of consumers or target audience before choosing a media channel. Depending on what objectives a brand or service provider wants to achieve, communication messages can come in various forms such as: • Introducing a new product into the market • Creating brand awareness among consumers or target audience • Building brand image for XYZ product • Promoting customer patronage for XYZ brand of soft drink Every message must be fashioned on the basis of: • The target audience • The message to communicate
Decoding: This involves attempts made by the receiver to interpret and get meaning out of the marketing messages from the sender. This calls for good concepts and illustrations to captivate the attention of the receiver to further understand the message. A lot of people may continue to patronize a particular brand of product as a result of good concepts build around a brand. For this reason, the story line in case of TV has to be very clear, layout in print must come out well, and pictures on bill boards must attract people’s attention out of their homes. Noise: This is what interferes with the free flow of the message or distorts the message from the source/sender to the receiver in its original form. It could be a newspaper or a magazine page cluttered with so many adverts, during an important football match commentary, or a poor signal that prevents good viewing of a television commercial. Watching football matches in Nigerian television stations, for instance, is interrupted by ‘noise’ in forms of too many adverts, long discussions and intermittent power outage that create noise to the receiver of the message. Feedback: Feedback affords the sender of the message the chance to evaluate how accurate the message has been received. It affords the source of the message the opportunity to find out whether the message sent to the target audience was well received or not with the intention to either fine-tune the message or change the channel as the case may be, so as to achieve the desired result or objective. In marketing communications, this may necessitate media research evaluaBrandiQ 31
MEDIA
tion study. Key lessons to learn from this discussion • Communication from any angle involves two parties. One person as the sender and the other as the receiver of the message. When one is thinking of what to communicate, one should always think of who will get the message else, the message will not achieve the desired result or objective. • Every intended receiver of a communicated message has a channel through which he or she could be reached. So, brand managers, advertisers, etc., must take the pains to know the media channels that can easily connect with their target audience, else the message will be directed to wrong target audience. • Every communication could be directly or indirectly be affected by some interferences called “noise.” So, we should try as much as possible to guard against this in order to achieve free flow of message from the source/sender to the receiver. • Every message communicated is intended for a purpose and for this reason, at the end of every communication, efforts should be made to measure the effectiveness of the message against stated objectives. This calls for evaluation. The Relevance of Marketing Communications to Brands Just as human beings need blood to survive, so do brands as far as marketing communications is concerned. The success of any brand is not only determined by its quality but through the efforts of marketing communications. At this point, it is necessary to point out marketing communications can add value to brands in areas such as: Creation of Brand Awareness Marketing communications helps to create brand awareness to consumers about products and services because before consumers make efforts to try available products, they must first get to know about the company and what it offers. To this end, companies and service providers when coming out with new products, use marketing communication mix to reach as many potential customers as possible to tell them what the company has to offer and the benefits they stand to BrandiQ 32
gain from such products and services. It does not stop here, as the company must continuously create brand awareness on the product and services to a point where brand patronage is achieved, and further sustain this to win customer loyalty through sustained marketing communications activities. Brand promotion A brand could be made to stand out among competition through quality, name, and logo but then, what can really sustain a brand in spite of all these are sustained marketing communications activities. Sustained marketing communications efforts are needed to create a strong favourable image about a brand. Brands that do not pay much attention to marketing communications even if they have good quality and other positive variables may lose their market share because these variables are not complemented by sustained communications efforts in the face of strong competition. Some years ago, some banks in Nigeria that were considered to be big brands in the industry did not pay much attention to sustained marketing communications, and as such, lost that position to those ones that were mindful of sustained marketing communications . Today, if one should ask you to mention the names of five banks in Nigeria, one can easily have names such as Zenith Bank, GTBank, Diamond bank, First Bank and Ecobank. These banks may have strong financial base and offer good services, but then, they have not toyed with sustained marketing communications. Again, if you ask people to mention brands of soft drinks available in Nigeria, Coca-Cola may come first followed by Pepsi and Mirinda. If you ask people to mention brands of beer in Nigeria, Star, Gulder and Guinness may top the list. If you should ask people to mention names of telecom companies in Nigeria, MTN, Airtel, and Globacom may top the list. Why? The answer is that these brands, no matter what they have given back to the society in terms of CSR, are very mindful of sustained marketing communications to connect strongly with consumers and promote themselves in that process against competition.
Creating competitive Edge When marketing communications is strategically used on brands, it helps position a brand to have superior value over direct competitors in the market. This is why brand owners always seek the services of marketing communications professionals to help them come with a message, and other strategies that will make a particular brand of product look superior in the eyes of consumers over direct competition and how it can help them overcome need problems or meet expectations desired of a product of that nature. Building of Corporate citizenship In today’s business world, communities where businesses are located often make demands from such businesses. The business as part of its CSR or goodwill may respond to some of the demands and then use communication strategies as a platform to create an image of being a socially responsible citizen or a good corporate citizen. Publicizing a company’s CSR or charitable activities has a way of encouraging brand patronage among members of a community. Conclusion In whatever we do, communication plays a very vital role. Like in human interactions, communication has a process, so does marketing communications. The understanding of this communication process in marketing communications is very useful for brand managers and advertisers to direct messages to their targets. Brands need to invest in marketing communications as its relevance to brands comes in ways such as brand promotion, brand awareness, competitive advantage and building of corporate citizenship or goodwill. An Assignment: Using 800 words, discuss five factors that can affect the free flow of a message by a brand owner to its intended target audience. First prize -Ten thousand Naira worth of phone recharge cards. The two other correct answers will get 3,000 Naira worth of recharge cards. Answers should be sent to: info@brandiq.com
BRANDING Outline: • Brand promotional tools in marketing communications-Advertising, Sales Promotions, Personal Selling, Public Relations
A brand refers to a product or a service with certain features or attributes different from others in the market. The awareness enjoyed by brands in the market, the inducement of consumers to various brands of products and the encouragement of salespersons to aggressively sell brands are done by certain brand promotional tools. In this edition, we are examining the promotional tools in marketing communications that can be used to promote brands in the market. These brand promotional tools include -advertising, sales promotion, personal selling and public relations. Advertising Advertising is the awareness firms, individuals, etc., create about their products, services, or ideas, using different communication platforms that are available such as TV, radio, newspapers, magazines, social media (such as Facebook, Yahoo, SMS etc) usually by a sponsor. What Advertising does to Brands Advertising as a tool in marketing communications plays certain roles to brands namely: • Informing: Advertising makes it possible for consumers to know about both old and new brands /services in the market, educate consumers on brands and services as well as the benefits they stand to enjoy from using a particular brand of product in the market against competitors. • Persuading: Advertising helps to increase the consumers’ patronage for a particular brand by persuading them to try to use the advertised brands and services in the market. Without advertising, consumers will not get to know much about brands from which they can choose. • Reminding: Advertising helps to remind
consumers of a firm’s brand or product. This makes the advertised brand or product to be fresh in the minds of consumers for the sustenance of their patronage and loyalty. • Adding Value: Advertising helps to add value to a brand by making the brand to look more superior, stylish, appealing than other brands in the same category. • Completing Marketing Communications Effort: Advertising is one of the members of marketing communications team. What advertising does is to assist other members of the team such as PR, personal selling, events sponsorship, to achieve its marketing and advertising objectives. This confirms the fact that a firm can achieve more for its brands when marketing communications tools are used to complement one another. Sales Promotions Sales promotions is any kind of incentive, either in monetary terms or gifts, used by a manufacturer of a brand or product, or a service provider to induce or encourage the trade (wholesalers and retailers) and consumers to buy a particular brand of product or service and to further encourage salespersons to aggressively market it. Take, for instance, in the Banking industry various banks come up with various offers like “save 5000 Naira daily and stand a chance to win a brand new Toyota Corolla car.” This is sales promotion to induce customers. In the telecom industry in Nigeria where there is strong competition among them, each tries to induce subscribers by coming up with various sales promotions, for example, “buy 500 Naira worth of Airtel recharge card daily and stand a chance to win a brand new Hyundai car.” The intention behind this is to encourage subscribers to purchase the card in large quantities. Learnings from the Definition Certain things are drawn out from the above definition and examples cited above. First, sales promotions has to do with incentives like bonuses or rewards that are meant to induce end-users or trade customers to purchase a particular brand frequently, in
large quantities that will benefit the manufacturer or the service provider that offers the promotion. Second, the incentives are not given free but as additions for buying products or services, for instance, “buy 5 units of LG air-conditioners from January 1st –March 31st 2013 from ABY shop and get one free.” Third, the incentive is either aimed at the trade, consumers, or the salespersons or all of them. Finally, the incentive offered can affect the price value of a product for only a temporary period that the promotions last. Developments Causing the Growth of Sales Promotion by Brands Certain developments in the late ’80s led to the growth of sales promotions for brands such as: • Consumers have become highly sensitive to prices than they used to be which have forced firms to turn to promotions to gain advantage over competitors. • Consumers are less loyal to brands than they used to be as a result of similar or competing brands trying to induce consumers to make brand switch. • Decline in advertising media efficiency and advertising effectiveness with a corresponding increase in ad clutter and high media cost (media inflation) forcing many brand owners and brand managers to budget heavy amounts of money for sales promotions to break out from the clutter. • The fact that consumers respond to money-saving promotions more than ordinary advertising. • The need for brand managers and firms to achieve short-term sales growth than long-term growth. What Sales Promotions can do to Brands • Ginger sales force -love for new, improved or mature brands. • Facilitate the introduction of new products into market to encourage wholesalers and retailers to stock new brand of products. • Maintain consumer loyalty for a particular brand by encouraging them for BrandiQ 33
BRANDING
repeated purchase through incentives. • Reinforce and strengthen advertising efforts in a campaign. • Can be used to challenge competitors advertising and sales –promotions efforts. For instance, if MTN gives 20 free SMS in a month, Airtel may decide to give 25 free SMS. What Sales Promotions cannot do to Brands Sales promotions cannot achieve the following for a brand: • Sale promotions cannot compensate a brand that has weak advertising platform or a brand that has weak brand image and no awareness. • Sales promotions will not be able to compel consumers to purchase brands that are not good. Brands must, on their own, be able to satisfy consumers’ needs before sales promotions can induce them for product trial, purchase and patronage. • Sales promotions cannot permanently stop declining sales trend of a product or a product that is not accepted by consumers. A declining sales trend over a period of time indicates that the brand is not accepted and sales promotions cannot change the non-acceptance of an undesired brand due to its bad quality. Personal Selling Personal selling is a form of communication that involves person-to person interaction whereby, a salesperson approaches someone with the intention to influence and convince him or her to buy a product that he or she sells or markets. The important feature of this definition is the idea that personal selling involves personal interaction between the salesperson and an intended buyer of a product. This is different from other aspects of marketing communications where the audiences consist of many people in case of mass media advertising. On many occasions, you must have been approached by young girls or boys in the streets of Lagos or somewhere else who try to influence/convince you to buy one product or the other. What they do is personal selling. Modern Selling Philosophy to keep CusBrandiQ 34
tomers of Today Sometimes, a sales person just for the sake of trying to make money for the company he or she works for may want to cut corners - this is quite unethical. Against this background, modern selling practices should be based on the following principles: • The process of selling needs to be built on trust and mutual agreement between parties. • Customers’ welfare must be given utmost consideration. • Sales representatives should always put themselves in the position of customers. • Professionalism and integrity of a salesperson count a lot in personal selling business and sales. • Sales personnel must try as much as possible to be “customer-friendly”, no matter the level of provocation from customers. What Personal Selling does to Brands • It affords the salesperson the opportunity to give a customer high level of attention concerning a product or service. • The two-way communication in personal selling yields a good opportunity for on-the-spot feedback on a product. • It allows the salesperson the opportunity to explain the technical aspect of a product to customers. • In personal selling, there is the chance for the salesperson to demonstrate how a product functions to customers. Public Relations Public relations or PR is an activity that has to do with cementing goodwill between a company and its various publics. PR efforts are aimed at various corporate constituencies, such as employees, suppliers, stockholders, governments, the public, labour groups, citizen action groups, consumers, etc. PR is integrated with other marketing communications tools to give a brand or product additional exposure, visibility, newsworthiness, credibility, etc. Whereas advertising and personal-selling claims are sometimes suspect - people attach more credibility to what is communicated through PR. What Public Relations does to Brands There are so many ways in which PR can
create positive impressions about brands such as: • The positive placement of stories about a brand in the media, sustained over a period of time can help build a positive image about the brand in the minds of consumers. At the same time, favourable editorials about a brand can help portray the brand in a good light over competitors’. • PR makes news about a brand by highlighting newsworthy developments about it. A good PR campaign will ensure that the brand maintains a continuous presence in various media be it print, electronic and online media. • PR has a stronger element of credibility more than advertising. For this reason, PR editorial third-party endorsement tends to give a brand a higher level of credibility because a lot of people these days do not really believe what they see in advertisements about a brand, but attach more credibility to PR information made concerning a brand. • Through feature articles, product press releases, executive statement releases, PR shapes public and customers’ perception about a newly introduced brand, inspires action to it, and changes public and customers’ perception of an existing brand. Conclusion No matter how fantastic brands are, they still need some sort of promotions as a means of attracting consumers. Brand promotional tools include advertising, sales promotions, personal selling and public relations. An Assignment: A certain brand of soft drink in the market has continued to enjoy poor visibility by consumers. “QRT”, which is the owner of this soft drink, has approached you as a good student of PR to help proffer a solution to this problem from the PR angle. Using 800 words maximum, discuss PR platforms that can help solve the problem. First prize will receive 10,000 Naira worth of phone recharge cards. The two other correct answers will receive 3,000 Naira worth of recharge cards. Answers should be sent to: info@brandiq.com
BiQ
Journal Academic work and scholarship is largely hinged on research. To be reckoned with as a scholar, you need to be engaged in rigorous research and consistently too. You also need to get your research work published in quality research journals. BiQ Journal is a component of BrandiQ Tutorial in the BrandiQ magazine. BrandiQ Tutorial is targeted at university students and fresh entry professionals in the media and marketing communications industry, while BiQ Journal is a platform specially designed for lecturers, scholars, professionals and researchers generally to follow current research works in various aspects of media, marketing communications and business. It is also a platform reserved for them in the magazine to publish their own research works. What would I benefit publishing my research work in the BiQ Journal – you would say: Anyway, starting from the March edition of the magazine, BiQ Journal plans to be peer reviewed by our editorial board members and Marcom Tutorial Tutors and reputable academics most of who are accomplished professors, lecturers and facilitators at the prestigious School of Media and Communication, Pan African University, Lagos and other well respected academic institutions in Nigeria and abroad. We accept research works from academics and scholars in Nigeria and from all over the world mainly but not limited to the areas of Media and Communication, Cultural Diplomacy and Media, Advertising, Public Relations, Marketing and marketing research, Branding and brand management, Design and Signage and ancillary disciplines. Manuscript Submission Guideline: Your manuscript should be prepared following the 6th edition of the Publication Manual of the American Psychological Association (APA). Double-space all manuscripts, including references, notes, abstracts, quotations, and tables on 8 1/2 x 11 paper. The title page should include all authors’ names, affiliations, and highest professional degrees; the corresponding author’s address and telephone number; and a brief biographical statement. The title page should be followed by an abstract of 100 to 150 words. Tables and references should follow APA style and be double-spaced throughout. Ordinarily, manuscripts will not exceed 4,000 words (double-spaced), including tables, figures, and references. Authors of accepted manuscripts will be asked to supply camera-ready figures. Please note that, presently, only a maximum of two research works will be published in each edition of the magazine. However, there are plans to pull out the journal from the magazine as an independent publication as soon as the number of quality manuscripts increases. Also, only materials which have not been published elsewhere are acceptable and submission is a commitment to publish by the editors. Currently, only materials submitted in English language is acceptable. To submit your manuscript please contact The BiQ Journal Coordinator, Desmond Ekeh at info@brandiq.com or call +234 1 8023215535
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BiQ
Journal
Media Effect: Does Television
Influence Children More Than Adults? By Desmond Ekeh Background: At the centre of the investigation into media and society is the debate on what the media do to individuals, groups, institutions and the public and what these categories possibly do with the media. McQuail (1994:327) asserts that, “the entire study of mass communication is based on the premise that the media have significant effects”, but what these effects are, their nature and the extent are still a subject of research tension amongst scholars and investigators. Researching the influence of television on children, and whether children more than adults are influenced by television, though an age old academic vocation, has become of more contemporary interest, owing to the emergence of the internet - with all the trappings and appurtenances of social media – twitter, facebook, linkedin and all. Over several decades, there is a litany of research results, especially from western scholars in this regard, including but not limited to: Pavlov (1927); Skinner (1938); Peterson and Thurlstone (1933) and other studies which claim causality in media-audience relationship. These results incidentally influenced media theories that support the presence of ‘powerful media effect’ (Elizabeth Noelle-Neumann, 1973); ‘minimal media effect’ (Joseph Klapper, 1960); and then ‘no media effect’ (Paul Lazarsfeld, 1940). The most prominent of these research projects focus mainly on the negative effects of television on the viewers - particularly on children, in relation to advertising and violence. Advertising, according to American Marketing Association, is “any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor” (Biagi, 2003: 193) while violence is defined as “the use of physical force to injure somebody or damage something” (Collins Advanced English Dictionary). To address the concern whether children are susceptible more than adults to the influence of television, this essay will do a literature review of empirical studies on the subject matter and then critically assess the literature with a view to either confirming or disproving the assertion. The essay will argue that, the definition of the term ‘children’ does not lend itself to easy categorization, and that, folBrandiQ 36
lowing the theories of audience research – there are intervening variables, especially between, the “physical context of viewing and reading and the social and cultural context that lie between the delivery of a message” - which influence how the receiver constructs meaning out of the message (Newbold, 1995:118). The essay will conclude that, even though research has pointed at possible effect on television influences on children, no research has confirmed causality on the one hand or that the influence is more on children than adults on the other hand. Attempting a Definition between Children and Adults: To determine whether children are more susceptible to television influence than adults presupposes that, children and adults are identifiable and separable categories. To an extent, this poses a challenge in defining what ‘children’ means in contradistinction to what ‘adults’ means. Definition of terms or concepts is not given to straightforward explanations. Definitions take different shapes at different turns. However, this essay will make an attempt at defining both terms - so as to provide a roadmap or guide in determining what we mean by ‘children’ and adults’ - as a way to locate what effect media consumption makes to each category, and also to find out if one category is more amenable to television influence than the other. As Buckingham (1998:131) observes, the histories of childhood have shown that the idea of identifying children as a distinct social category and separating them from adults is relatively a recent one. The construction of the ‘Child’ and the development of children’s genres in literature, music, toys, pictures, television and radio programmes amongst others were in the early years to serve a pedagogic role of educating the children, in an attempt to do well to them, as well as protect them from harm. Recently, this has been sacrificed to commercialism where television advertising targeted at children for instance serves mostly commercial purpose. “The definition of what it means to be a child is an ongoing pro-
cess which is subject to a considerable amount of social and historical variation .…” (Buckingham, 1998:132). The Collins Advanced Learners English Dictionary defines a ‘Child’ (singular word for Children) as a “young human being: somebody not yet of age. Somebody under a legally specified age who is considered not to be legally responsible for his or her actions, immature adult who is regarded as behaving in a childish or inappropriate way”. It also captures it in a specific way by mentioning ‘Teenagers’ or somebody under the age of 18 years. This definition helps, but it is also constraining, as teenagers are between ages 13 and 19. Noticeably, some young people start watching television actively from as early as 4 years. So, age 13 as a teenager will be far in between. Again, in terms of the legal consideration of 18 years, that is contextual - depending on varying laws and societies. This classification is even more challenging. However, for the purpose of this essay, we take it that any person who is under age 18 and conscious enough to bear the impact of a television programme is a ‘Child’. In this case, without seeking further sociological clarification of the terms, this essay will adopt the dictionary conception of ‘Adult’ as a fully matured person: Somebody who has reached the age of legal maturity, generally 18 years or above and fully developed and mature. Television Effect on Children/Viewers: The assertion that children are more susceptible to the influence of television than adults presupposes that exposure to television has a cause and effect (correlation or causal relationship) impact on the viewer - whether adults or children. It also presupposes a certain category of people identified as children. The debate on the negative influence of the media particularly television and even recently video games on young people - whose minds are considered fertile and naive – is aged. Robinson and Willett (2006:6) citing (Fiske and Hartley, 1978) posit that, long before now “Plato expressed serious reservations about the influence which stories of a certain kind might exercise on young minds and urged that the first stories a child encountered should be those which would teach desired behaviour. Shakespeare also came in for strong criticism in his day”. This reservation by Plato and Shakespeare highlights the claim of powerful media effect on children. Media effect theories including hypodermic needle/magic bullet theory, cultivation theory and orders project a stimulus-response relationship between television (media) and the viewer (children). The media, particularly television, are credited with the power to shape the beliefs, behaviors and opinions of individuals when exposed to them. For instance, the hypodermic needle theory or the magic bullet theory collectively suggest that the mass media are like a bullet fired from a ‘media gun’ into the viewer’s ‘head’ or in the case of hypodermic needle, the message is injected into the viewer’s vein, which automatically influences his/ her action in response to the message. The effect model assumes that the audience is passive and media message unmediated, such that the receivers are manipulated by the creators of the media message.
Meanwhile, even with the seeming strong evidence of media effect research results driven mainly by behavioral science methodology (particularly experimental methods) which involves the “strict control of variables upon the process or relationship under study”, (Newbold, 1995: 10) various scholars (Barker and Petley, 1997; Buckingham, 1993; Gauntlett, 1998; Hodge and Tripp 1986) cited in Robinson and Willet (2006:13) have argued and challenged the inherent faults with the methods and methodology of the effect research studies. They criticized and faulted those results especially on the grounds of false premise, wrong methodology, illogical deductions and hackneyed conclusions. “Much of the criticism of effects studies is based not only on the individualistic orientation of the research, but also on the researchers’ media-centric approach, that is, an approach which is purely interested in the direct relationship between the medium and its audience” (ibid:12). This approach does not take consideration of the intervening variables – social and cultural – which can affect audience interpretation of the message and how the audience makes meaning of the message. In reference to children and violence, common sense deduction easily attributes children’s exposure to violent television as a major cause of aggression found amongst them. Based on practical experience gained by observing what my children aged 8, 5 and 2 years watch on television, I agree that children are prone to imitation and copy, but how and to what extent it can be attributed to what they watch is difficult to know. Robinson and Willet (2006:12) argue that, “lack of evidence is one of the many problems with much of the research which claims a causal relationship between children’s behaviour, attitudes and skills and their consumption of media”. Meanwhile, the opponents of the effect theory are not completely saying that television does not influence children’s behaviour. They are rather at variance with the nature and extent of the influence, especially when it does not take cognizance of children’s ability to read meaning to the message or even reject the message completely. This way of perceiving children portrays a constrained view of understanding children’s relationship with television - a portrayal that positions them as ‘dumb’, just sitting and staring the screen, even when they are socially and cognitively involved in their interaction with the screen (Robinson and Willet, 2006:13). “What children bring with them to their viewing will influence substantially what they extract from it” (Durkin, 1985: 72-73 cited in Robinson and Willet, 2006:13). This position assumes that all children will bring with them something to their viewing. What about some who may not bring anything for whatever reason or inadequacy? However, children whether adequate or not are not an undifferentiated group of passive viewers and hence knowingly or inadvertently interact with television actively. Recently, much research is tilting towards the audience than the media. Before now, most researchers tended not to understand, or pay inadequate attention to how children learn and make sense of the media and the social and cultural arena and environment within BrandiQ 37
which these meanings are made or constructed - within themselves or amongst their peer groups. By this, it is meant that children should not be looked at as Robinson and Willet (2006:16) would say: “simplistic as passively affected by what they encounter in the media”. We need to appreciate their interpretative role in interacting with television. Looking at media from audience research would be adjusting more appropriately the popular question recomposed by Waples (1940) cited in Newbold (1995:22) suggesting that instead of asking the question of ‘what the media do to people’ we should rather ask ‘what people do with the media’. This reverse process found theoretical backup in the Uses and Gratification approach propounded by Katz et al (1974) cited in Anaeto et al (2008:70). The Uses and Gratification approach is a reaction to the stimulusresponse theory (effect) that is media-centric. It is a theoretical assumption which conceives the audience as active and goal-oriented seeking to use the media to achieve their goal. “Ultimately, Uses and Gratifications research was always more interested in the origin of mass media use than simply in the effects of that use” (Newbold, 1995:25). In this case, what the children do with the media and how they find meaning from media messages should be the concern of research much more than trying to find an answer as to how the media influence them – an inquiry that may remain unresolved for a long time. Are children more Susceptible to the Influence of Television than Adults? The concern that children are more susceptible (easily influenced or affected by something) than adults to the influence (effect of something on somebody or power to say somebody to do something) of television stems from the assumption embedded in the perception that television has a narcotic effect on children – bearing in mind that children are considered vulnerable and innocent with fertile mind. “It is argued that violent television programmes can have particularly deleterious effects on children because they have not yet built up skills of critical viewing that forms a bulwark against such harmful influence of television programmes” (Goonasekera (1996:25). Following this reasoning means that children are innocent and considered inadequate to make sense of essentially irrational appeals of visual media (Buckingham, 1998:133). This position also assumes that the adults are rational and mature in mind with the capacity to decipher what is imagined and what is real; what is harmful and what is gainful, and that they have the capacity to withstand or reject the luring appeal of television, especially advertising visuals. The adult is expected to be mature enough to appreciate that the violence noted in a television programme, for instance, is more dramatic than real. This is why in some quarters, it could be argued that because children may not be able to differentiate drama from reality, they may go ahead - following Bandura’s Social Learning theory and his ‘Bobo Doll’ experiment result - try to ‘imitate’, ‘copy’ or act out what they watched on television. If, by this assertion, children are truly vulnerable and immature in appreciating television for what it is – especially in relation to advertising and violence, if they are easily attracted to the appeals of television visuals, they are therefore logically likely to be more susceptible to television influence than the more rationale and mature in mind adults. However, that is not the BrandiQ 38
case claimed Connell (1985) cited in Buckingham (1998:133) who affirms that, “blaming television may thus serve to deflect attention away from other possible causes – causes which may well be ‘closer to home’ or simply much too complicated to understand”. Advertising, for instance, is seen to be a purely commercial message with a broader effect of encouraging consumerism or materialism, and in terms of ideology, accused of stimulating false needs or irrational fantasies targeted at persuading audience to respond and act in a particular way. The argument here is that children may be at risk especially when they are the target audience of such an advert, and that, because they are malleable and their apparent inability to understand the persuasive intention of such advert message, they may fall prey to such an intention to their own harm (Buckingham, 1996: 134). “Unlike adults, children are seen here as lacking in the level of conceptual and experiential maturity needed to evaluate commercial messages rationally” (Leiss et al, 1990:365). My position is that, this is not the case. For instance, the problem with most of the effect based research works - that blame television for children’s violence - is that the researchers do not take a sociological approach to the multiple issues that can affect a child and induce violent actions beyond media effect. Research premise should begin from the social causes of violence and the background of the children and not from media. It should begin with a careful examination of factors such as their identities, character, background, poverty, unemployment, housing, peer pressure and family influence. “The media effect approach, in this sense comes at the problem ‘backwards’ by starting with the media and then trying to lasso connections from there on to social beings, rather than the other way around” (Gauntlett, 1998:120). The general position of effect model tends to define children as passive victims of television or media persuasion, and essentially perceive them as ‘trusting and uncritical viewers’. There are however, research results which posit otherwise. These results claim a general growth in children’s cynicism about advertising claims. Even though it seems that this range of cynicism differs, and I have personally carefully observed my 8 year old daughter express such cynicism on a particular telecommunication company advert on Channels TV, Lagos, Nigeria, “it seems that, children become aware of the persuasion intention of advertising at an early age” and that, the level of skepticism grows higher as they get more mature in their childhood (Gaines and Esserman, 1981; Dorr, 1986) cited in Dickinson et al (1998:135). Parents and schools are beginning to take media literacy education very seriously. This is the case with my children and their school. This training, I presume, will help them early in life to respond appropriately to television advertising and other forms of media influences. Young (1990) cited in Dickinson et al (1998:135) asserts that, “children’s growing awareness of the functions of advertising and their increasing skepticism about it can be seen as part of a more general development in ‘metacommunicative’ abilities”. The emergence of alternative research approaches particularly ‘Audience research is a response to the challenges of the media effect model. Unlike the effects model, audience research does not see the audience (in this case children) as a mass of undifferentiated and passive individuals, but as active interpreters of television messages
who construct meaning from what they watch and also use television for their own good. With the advent of uses and gratification model, the audience and the intervening variable between the audience and television message is now put into much consideration. Conclusion: Human common sense easily assumes that, children are more susceptible to the influence of television than adults, especially in the area of violence and advertising. This common sense position is variously supported by several research works - mostly using the experimental and other behavioural science methods. The experimental and quantitative method promotes stimulus-response results which are referred to as the media effect model. This model characterizes children as uncritical, mentally immature, innocent, and naïve. Children are perceived as passive and unable to construct meaning from television beyond watch and act accordingly. But, later research methods, including audience research using theoretical tools like uses and gratification and learning theory have shown that children are very active media consumers who can construct meaning from what they watch, following their socio-cultural contexts. So, while this research based on personal observation and experience and evidence from the literature review, agrees that television has effect on children, there is no conclusive evidence based on the reviewed literature to prove causal relationship of this influence on the children, nor that children are more susceptible to television influence than adults.
Social Psychology Account. In Robinson, M. and Willet, R. (2006) Children and Issues of ‘Media Effects’, Media and Communication, University of Leicester, U.K. Fiske, J. and Hartley, J. (1978) Reading Television. In Robinson, M. and Willet, R. (2006) (Eds) Children and Issues of ‘Media Effects’, Unit 45 of the Media and Communication, University of Leicester, U.K. Gains, L. and Esserman, J.F. (1981) A Quantitative Study of Young Children’s Comprehension of Television Programms and Commercials. In Dickinson, R., Harindranath, R. and Linne, O. (1998) (Eds) Approaches to Audiences: A Reader. London: Arnold. Gauntlett, D. (1998) Ten Things with Effect Model. In Dickinson, R., Harindranath, R. and Linne, O. (1998) (Eds) Approaches to Audiences: A Reader. London: Arnold. Goonasekera, A. (1996) Asian Audiences for Western Media, Media and Communication, University of Leicester, U.K. Katz, E., Blunder, J. G. and Gurevitch, M (1974) Utilization of Mass Communication by the Individual. In Blumler, J.G. and Katz, E. (Eds) The Uses of Mass Communications: Current Perspectives on Gratification Research. In Anaeto, S. G., Onabanjo, O. S. and Osifeso, J. B. (2008) (Eds) Models and Theories of Communication. Maryland: African Renaissance Books Incorporated.
BIBLIOGRAPHY Anaeto, S. G., Onabanjo, O. S. and Osifeso, J. B. (2008) Models and Theories of Communication. Maryland: African Renaissance Books Incorporated.
Klapper, J. (1960), Noelle-Neumann, E. (1974) and Lazarsfeld, P.F. (1940) all In Anaeto, S.G., Onabajo, O.S. and Osifo, J.B (2008) (Eds) Models and Theories of Communication. Maryland: African Renaissance Incorporated.
Baker, M. and Petley, J. (Eds) (1997) Ill Effects: The Media/Violence Debate, In Buchingham, O. (1993) Reading Audiences: The Young People and the Media. Gauntlett, D. (1998) Ten Things Wrong with the ‘Effect Model’; Hodge, B. and Trippo, D. (1986) Children and Television In Robinson, M. and Willet, R. (2006) Children and Issues of ‘Media Effects’, Unit 45 of the MA in Mass Communication (By Distance Learning). Department of Media and Communication, University of Leicester, U.K.
Leiss, W., Kline, S. and Jhally, S. (1990) Social Communication in Advertising. London: Routledge Newbold, C. (1995) The Media Effect Tradition. In Boyd – Barrett, O. and Newbold, C. (Eds). Approached to Media: A Reader. London: Arnold
Biagi, S. (2003) Media Impact: An Introduction to Mass Media. Canada: Holly J. Allen Buckingham, D. (1998) Children and Television: A Critical Overview of the research. In Dickinson, R., Harindranath, R. and Linne, O. (Eds) Approaches to Audience: A Reader. London: Arnold. Collins Advanced Learners English Dictionary, Glasgow: Harper Collins Publishers Connel, I. (1985) Fabulous Powers: Blaming the Media. In Buckingham, D. (1998) Children and Television, (Eds) Dickinson, R., Ramaswani, H. and Linne, O. Approached to Media: A Reader. London: Arnold
McQuail, D. (1984) With the benefit of hindsight: reflections on uses and gratification research. In Critical Studies in Mass Communication, vol. 1. No. 2. In Newbold, C. (1995) The Media Effect Tradition. In Boyd – Barrett, O. and Newbold, C. (Eds). Approaches to Media: A Reader. London: Arnold Waples, D., Berelson, B. and Bradshaw, F.R. (1940) What Reading Do to People. In Newbold, C. (1995) The ‘Media Effects’ tradition, Media and Communication, University of Leicester, U.K Young, B. (1990) Children and Television Advertising. In Buckingham, D. (1998) Children and Television: A Critical Overview of the research. In Dickinson, R., Harindranath, R. and Linne, O. (Eds) Approaches to Audience: A Reader. London: Arnold Desmond Ekeh is a PR consultant and researches in the area of Globalisation, Political Communication and Public Relations.
Durkin, K. (1985) Television, Sex and Children: A Developmental BrandiQ 39
MEDIA FOCUS
Most Nigerian Journalists Can’t Fit into Digital Age - Martins Oloja
In a chat with Ntia Usukuma and Henry Otalor, Editor of The Guardian Newspapers, Martins Oloja, reveals concrete steps professionals should take to ensure that media practice in Nigeria becomes competitive globally in this age dominated by digital technologies. What factors influenced your choice of journalism as a profession, and how would you describe your experience so far? I started journalism really on the campus. I attended a Teachers’ Training College, in OkiBrandiQ 40
tipupa Local Government Area, Ondo State. The institution is now a unity college. It was the school that approached me in my final year to serve as the editor of the school publication. It was there I did my O’Levels and A’Levels before gaining an admission into the University of Lagos where I studied Mass Communication. After my training at the Teachers’ College, I was posted to a primary school for a week and later posted to a secondary school to teach. It was from there that some Ghanaian teachers, who were my colleagues in Comprehensive High School, Ode-Aye (in Ondo
State) where I was teaching, encouraged me to go for journalism. Specifically, the secretary of the teachers’ meeting said that from the way I was taking minutes of the meeting I would be better-off as a journalist. So, he advised that I should embrace journalism. From there I took special interest in the profession up till when I left for the University to study Mass Communication. From the University of Lagos campus, I started writing consistently and even contributed to most of the national dailies. As an undergraduate in Lagos, I was writing copiously for Daily Times, Concord and even news
MEDIA FOCUS magazines. I also took interest in writing and reviewing journals. At Daily Times I was contributing in the common errors even in other newspapers after leaving school. However, the major break came when the first newspaper was setup in Abuja in 1988 by certain Hassan Adamu, who was the Chairman of the Board; the publisher was Alhaji Buka Zarma. I was invited to join them. It was from there I was made a member of the pioneer management team. I was recruited as Lagos Bureau Chief in 1988, a position I occupied until 1990 when I was appointed editor of the paper. In 1993, during the heat of the June 12 crisis, General (Ibrahim) Babangida’s administration closed down the newspaper with other newspapers in Lagos. The publisher didn’t reopen it even when the government opened it that same year. Even after the paper was reopened, Babangida’s administration was still looking for me. I ran away to hide in Lagos for a very long time before I returned to Abuja. At that time, I couldn’t write effectively. In 1997, they set up a news magazine, The Source Magazine. I was one of the pioneer Associate Editors in 1997; later I was made a Senior Associate Editor. It was from there I was invited to join The Guardian Newspaper in 1993 as Abuja Bureau Chief. From there I was promoted to be Deputy Editor in The Guardian even as Abuja Bureau Chief. It is from Deputy Editor I was appointed the Acting Editor in October last year and within 22 days, I was confirmed as the Editor. In the course of your career you have worked with so many writers and reporters. What could you identify as shortcomings among reporters or journalists in recent times? The first fundamental trouble, you will notice, is that graduates coming from most institutions cannot cope with the challenges of the 21st century journalism. One, there is this gap between the training institutions and the
industry, a very huge gap. The people that should be teaching journalism are practitioners. In other words, the people that are training journalists are not practitioners. Most of them are just professors, academic people and it should not be so. Journalism is a craft. The people who are practising, members of the editorial who write editorials and opinions on a daily basis are the people who should be teaching editorial writing. A person who has never written an editorial before should not be teaching Editorial Writing as a course. It is a misnomer in modern sense. Even in the Western world, it is the people that are practising journalism that are also teaching journalism on a part-time basis. Some have retired from the newsroom so they move to the classroom to teach journalism. That is what they do even in the best journalism institutions in the world. Here when people graduate from journalism schools and come to the newsroom they are confused because they don’t know what journalism is all about, they don’t know how to write, they don’t know what reporting is all about. It is a huge gap and that is the fundamental problem we face - getting people who will give good contextual reporting, interpretative reporting, the way things should be done in the 21st Century. You don’t find a young graduate who can cope immediately. So, the newsroom then becomes a training institution which is terrible. Men such as Mike Awoyinfa, Dan Agbese, Ray Ekpu and all these giants that have retired and/or experienced are supposed to be teaching in the Universities. All these institutions offering Mass Communication and Journalism should just sign on these experienced people, and you will see how things will change as regards the sloppy writing we see these days. This is the first problem. And then you notice that young people don’t have that attitude for desk research to enrich stories. You will notice young ones are not deep even in the history of their
own country not to talk of the global context. And they don’t have time to read, what they are all looking for is money. Young people don’t want to do the real journalism job because may be there is no much money. This is part of the problem we editors face. How is digitalization affecting the traditional Media? The power of a newspaper is in the quality of its front page. The person who buys the newspaper buys it because of the quality of its news. Now the 21st Century has come suddenly upon us to the extent that printed newspaper is in trouble because of digitalization. The digital platform has affected the way the newspaper is now managed. The newspaper we are producing now we are producing for tomorrow. A lot of things will happen today and nobody wants to wait till tomorrow before they get the news. In other words, if a major event happens in our country today, the challenge we have is that without reading the newspaper, watching the television or listening to the radio you can always get the news. Therefore, newspaper tomorrow morning must find a way of getting something reasonable to the readers, something that is worth reading, something that discusses a new perspective to even breaking news, like features. That is why nobody waits for news magazine till next week to get a news magazine. After 1937 or there about when they set up Newsweek, they stopped printing the hard copy December last year. Printed newspapers are troubled all over the world; so reporters should migrate to digital platform and even proprietors have to look for ways, because as soon as you find better Internet penetration in Nigeria, they will have more trouble - because people would have read today all the things you want to publish tomorrow online. But we still have difficulties with the Internet now. That is why we are still breathing. So, journalists should be
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MEDIA FOCUS trained in that context now to avoid problems tomorrow. Are you campaigning for media convergence? It has come; it is no longer the issue of campaigning and it is only people who don’t know what business is all about that will not know that convergence has come. People now get everything online; media organs should look for ways of making money online. That is why one of the best journalism institution in the world, Colombia University, has a Postgraduate programme that gives a dual degree where they join Computer Science with Journalism to produce a digital journalist that can work for radio, television and even work on these digital platforms. Most journalists in Nigeria today cannot fit into the digital age - because reporting the social media is different from writing for the newspapers, magazines. Writing for online readers’ needs is a different skill; so we should prepare for that. Do you think Nigerian newspaper houses are preparing for this change, based on your experience thus far? From my own observation, I think we are not ready; because, we are not ready for training and the institutions that we are supposed to be using are also not ready. Maybe except for Pan African University (in Lagos, Nigeria) that might be ahead of the other universities: They have embraced veterans to be doing some teaching, despite that we are not totally there. The university system is supposed to be the pathfinder that everybody in the society will use for research. The University system is for teaching and research. Look at the University in any country and you will see their level of development. The United States being the No. 1 economy in the world, when you rate the 10 best universities in the world, eight are in the United States, two will usually be in the United Kingdom. In Africa, look at the economic development, South Africa is No. 1 in Africa, and when you rate the 10 best universities in Africa, eight are in South Africa, two in Egypt. The best university in Nigeria is like number 40 in Africa; it used to be 30 but now it is 40 despite all the noise that people are making. And we have no sense of urgency, no sense of concern on the part of people that are in charge of policies and politics. That is why we are at this low level. You cannot divorce development of a country from the development of the curricula of the university. It BrandiQ 42
is the university that is called the pacesetter. It is the university professors that develop countries, philosopher kings, and they are the ones that are doing the research for people that are developing for Apple, Samsung, etc. These things are not miracles; they are from researchers in the universities. When you develop a concept, you take to the laboratory and it is from the university. And so as long as our university system in Nigeria is like this, so long would we continue to grope in the dark, we would continue to wait for miracles. Most politicians and administrators castigate the Nigerian media that it takes every opportunity to batter Nigeria’s image. What is the strength of the Nigerian media in shaping Nigeria’s image? The media cannot design communication policies for people who are in charge of business and politics. The institutions and their managers are the ones who can determine the image of the country and not the media. The media will only reflect what is. We are like a mirror; we reflect events, we reflect issues, we reflect people, we reflect places. All those saying that media are basically propaganda, do they evolve policies that will enable Nigeria have good image? No power supply yet they are boasting that they have provided 5000 megawatts. For a good country - if we want to speak truth to ourselves - if you take 5000 megawatts to Agbara Estate (in Lagos State) that is heavily industrialized it wouldn’t be enough. Even if you take 6000 megawatts for Lagos that is heavily industrialized we would still complain. That is why there is no power supply anywhere. So, what image are we talking about? Do they want the media to talk and reflect what is not there? South Africa population is about 50million people, yet they enjoy 48,000megawatts compared to what 170 million are struggling for in Nigeria. The Nigerian media reports what it sees. What makes a country is its economy, through industrialization, through good policies. What makes a country is its critical infrastructure. Look at the commercial capital, Lagos, for example, apart from the major highways, nothing more. When you get out of the highways what you see are slums. Even the road to the (Murtala Muhammed) International Airport does not present a good image. You will see craters and articulated vehicles parked by the road. What images are we then talking about? Is it The Guardian Newspaper that will repair the road or do we report that the roads
are paved with gold? This is the 21st Century. You cannot hide anything. It is what we see we reflect in the media. Let no one deceive you with propaganda, even propaganda doesn’t work anymore in the digital age because as you are saying it, people are telling you that it is a lie. They open their iPad to check the authenticity of every information you give. Everybody knows the countries that are doing well. South Africa was invited last year to join BRIC to make BRICS which comprises the original emerging markets in the world Brazil, Russia, India, China and South Africa. Nigeria was not invited; so what image do we have? What will the media do when you cannot find any good thing to report, or progress to report about governance issue either in business or politics? The only thing you will see everyday is corruption and what our people are doing with our small income. Our income is very small; less than 10billion Dollars every year which is not up to budget of fire service of New York City (in the United States), not for the state, not for the police, not for education - small money that we steal from. Because the media is a stakeholder, we would constantly tell them the truth even though we know that government does not like to face the truth. The truth is if you want good image you have to do things that competitors or the world over are not doing. Because we are talking in the Marketing world, government will have to replan strategy, do what others are not doing better. If you want good image, do things that your competitors or the world over are doing and do it better. You need to outsmart your competitors with your strategies. Just like in the marketing world where you talk about competitive advantage, what advantage do we have in Nigeria? What competitive strategy do we have to even outsmart South Africa? What competitive advantage issue can we discuss in our country? We should stop deceiving ourselves; we are in the 21stb Century where business is done at the speed of thought. According to Bill Gates, business is done at the speed of thought and no longer at the speed of light as we used to say. Because nothing is hidden anymore; everything you ask online you get as long as you can ask the right questions. Do you think our poor reading culture is affecting the media? Although there is no clear-cut data, it is generally believed that the entire newspaper circulation in Nigeria is not up to 600-700 thousand copies daily
in a country of about 170 million people? Newspaper owners should do their own research to find out their own market. The reading culture cannot be improved upon magically, but the reading population should be segmented and nobody should just jump out and say I want to satisfy everybody. I believe that the reading culture is something that the newspapers should research and get their own segment from. There is need for transformation by the renewing of our minds. We renew our minds about how to handle strategies. The reading culture is still there; we have more educated people now than before. I know some people were saying that circulation of one newspaper was about four hundred thousand copies before not to talk about all newspapers combined. But at that time how many newspapers were publishing up to 24 pages or even 48 pages at that time? Today people who do qualitative analysis or marketing analysis should consider that 1000 copies of The Guardian now can cover their socalled 40,000 copies in a day. Today, when you hold two copies of The Guardian newspaper, which in most cases, publish close to 200 pages of one copy, that means that when you are holding two copies, you are carrying about 400 pages. When you now compare two copies with 20 copies that people were publishing in those days you realize we are not doing badly now. Newspapers should do research to benefit from marketing strategy such as segmentation, market analysis that will give them competitive advantage and competitive strategy. The modern market is different, it is dynamic. The modern market is not a monopoly anymore for anybody. That is why global brands such as Apple and Samsung are fighting because of the market. The average reader and advertiser over the years have remained hooked to 5 top newspapers, as there is a perception that the average advertiser is just rigid and unadventurous. Do you agree to this claim, and do you see hope for young publications? I do not agree to that analysis. There is a theory behind this: in marketing management - it is called brand loyalty. People are loyal to their brand because of the image of the same five brands you are talking about. The Nigerian press consists of mainly five brands you are talking about because they have been able to develop their brand equity in such a way that they don’t lose anything in the eyes of the ad-
vertiser. The advertiser does his own market research; he follows the media no matter what you are doing. If you lose your segment in the market, he will know and he will drop you. In planning their strategy, the agencies advise the advertisers where to put their adverts. This is determined by the target audience and which newspaper they read. It is the brand equity of these newspapers that determines the advertiser’s choice of these organs, not about being rigid. Also Brand Association determines those that will read your paper. The Guardian with its reputation can create another organ like Television or Radio for instance and you can associate that new brand with The Guardian based on their reputation . Or if a particular person who has reputation moves from paper A to paper B with his reputation, it is natural that readers will associate with that paper because of his reputation. When you do content analysis and analysis for staff movement and placement in some of these organs, you will see why people continue to associate with some newspapers. The current editor of The Nation, Mr. Gbenga Omotoso, was from The Guardian. When you see their pattern, people follow them because of his style while he was here and has remained consistent with it. These five top newspapers have been able to build on their brand equity, which explains why advertisers and readers will remain loyal to them because they don’t lose out on anything. That is why they remain loyal to them which is brand loyalty. This is effective perception management. Do you think specialised publications can survive in Nigeria? Definitely, that is where we would end. That is why market segmentation is important. We should specialize. If you don’t specialise and decide to remain a generalist, you will fizzle out. Journalist should specialise in reporting business, economy, brands, energy, etc. And that is where we are going to. New York Times is a specialised newspaper that reports what is going on in New York area and catchment area. Washington Post also in New York, but it specialises in reporting what goes on in the seat of power in Washington, D.C. When you look at their front pages and other pages, this practice doesn’t make them less popular. Specialization is theme for the 21st Century. If you are generalist people may ignore you. You have to be strategic in your planning to ensure that you specialize in a big market like ours.
Lagos is a market; South West is a market on its own; South South; North-Central, etc., are markets on their own. Unfortunately, journals are not taking advantage of these to get competitive advantage in strategic planning but globalisation will drive all of us there. We need to start doing some strategic planning that will make this market segmentation a reality. Market forces will drive us there. What advice will you give any young person desiring to toe your line of Journalism? People don’t have to toe my line; they have to toe their lines. My advice for young people coming into journalism is that things have changed. It is not journalism of Daily Times of those days. It is modern journalism and modern journalism is digital journalism. And specifically, social media because the social media management has affected the way journalism is practised today. In the Scandinavia countries, they migrated long ago to digital platforms and they get a lot of adverts online, and that is where Newsweek is going and that is where we would all end up. If Glo 1 were serious, it would have put pressure on us to innovate or we die. Anyone coming into journalism should know that no employer will take you seriously if you don’t have 21st Century skills of reporting in a digital manner like producing documentaries. Anybody coming in should come in a multimedia platform where you can put the entire gadget together on your own by yourself. 21st Century has merged responsibilities together. You must also be ready to link with civilised part of the world where you get these innovations and technologies. Journalism is changing all over the world; you can’t stay in one newspaper because it cannot pay you. Journalism curriculum has changed but dramatically only in Nigeria curriculum has not changed. Apart from maybe Pan-Africa University I can’t see any university or polytechnic that is training journalists that can be competitive.
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APCON Reforms:
A Rough-and-Tumble Takeoff By Ntia Usukuma
For most ad practitioners used to practicing within a relatively serene atmosphere, this turbulent period in the industry is one they would pray and hope disappears quite speedily. APCON’s new reforms aimed at protecting local players from being alienated in their own industry seem to have taken off on a rather shaky note. Veterans and former close pals are pitched against one another on both ends of the divide. And the worrisome aspect to practitioners is that the entire issue is like a piece of biscuit. Nobody knows the point it will break next. Already, it is reported that a leading Telco brand has pulled her portfolio of brands out from a feuding partner to avoid being hit by any crossfire in the current imbroglio.
ScanGroup had approached Prima Garnet (PG) last year, offering to buy 51 percent shares, in their bid to establish a strong foothold in the Nigerian market. This offer, it was learnt, was turned down. The two parties could still not agree on a percentage even after series of tough negotiations. Sources confirmed that negotiations
2013 APCON reform. Scanad was equally monitoring activities in the market so the company , anchored in Nigeria by ebullient Rufai Ladipo, immediate past president of AAAN, registered last year to beat deadline for reform. Other things happened in swift succession. Ogilvy Africa, now a part of the ScanGroup terminated the affiliation after Prima Garnet had gone to court challenging its operations in Nigeria against the spirit of their affiliation agreement which prevents the firm or any of its related companies from opening for business in the country. The Court had ordered all parties to maintain status quo pending the conclusion of court proceedings. In what sources from Prima Garnet perceive as an “unholy solidarity with their Indian kinsmen”, Airtel promptly fired Prima Garnet and called for a pitch to select a new handler for her advertising account. However Scanad CEO, Bharat Thakrar finds the Indian Linkage quite laughable. Speaking to BrandiQ during his last visit to Nigeria Thakrar said, “We are in the era of promoting business activities across the African continent. I am a full- blooded Kenyan. My grand- parents were Kenyans. My investments are in Kenya and other African countries. I am rushing back to Kenya now because I am an ac-
Chairman of Council (Lolu Akinwunmi) and Chairman ACAPR Committee (Willy Nnorom)
It is now common knowledge that APCON’s ideological bent which has found expression in the mould of protectionism has invariably pitched Prima Garnet and its owner, Mr. Lolu Akinwunmi, APCON’s Chairman, against his former principal associate and affiliate in South Africa, Ogilvy Africa.
descended to the level of threats when the foreign affiliate insinuated that if PG refuses to succumb, then the agency’s days with the juicy Airtel account are numbered. It was obvious that the “foreign technical partner” was tinkering with the idea of entering the arena as a full- fledged player.
Indeed, industry observers have monitored the complex affiliation web which is threatening to engulf the industry. From investigations in the last one year as well as confirmation from all the parties concerned,
Protectionist elements within the industry must have sensed that allowing Scanad to have the upper hand could lead to a chain of actions that can drastically erode their bottom-line. What followed was The
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took over the ownership of the GSM license. Celtel could not go the long haul as name was also changed to Zain. It was on the Zain name that the brand traded before Indian conglomerate; Bharti Airtel bought controlling shares and eventually became owners of the company. The management of Airtel may find it regrettable that they are caught again in the web of another crisis, no thanks to the turbulent 2013 APCON reforms. Alhaji Garba Bello Kankarofi, Registrar APCON
tive opinion leader for one of the candidates in the Kenyan Presidential elections. The issue of a foreigner trying to swoop on our resources does not exist. There is a Nigerian owned outdoor agency doing very well in Kenya”. (See full interview). Just last week a Lagos High Court, presided over by Hon Justice Onyeabo again granted Prima Garnet an interim injunction seeking to halt all ongoing pitch process being organized by Airtel for its marketing communications business. Before this pronouncement, Local and foreign agencies were jostling for the huge portfolio to manage Airtel, a brand that has been mired in controversy following disagreements between current handlers of the brand, Prima Garnet Ogilvy and their affiliation partners, Ogilvy Africa. Justice Onyeabo ruled for the maintenance of the status quo on the Airtel business pending hearing of the substantive suit on April 19, 2013, a development that temporarily halts the hasty effort by the telecom giant to move its account from Prima Garnet. Interestingly, the Airtel brand has become synonymous with crises. At the onset of GSM services in Nigeria, the mother-brand, Econet Wireless, owned by a Zimbabwean tycoon, Strive Masiyiwa was on record as the first network to make a GSM call in the country. But boardroom squabbles soon slowed growth. Econet was soon to change name to V-Mobile after Mr. Masiyiwa was ousted from the board. But V-Mobile was also short-lived as a new partner, Celtel,
However, an industry insider who spoke on conditions of anonymity said a look at the regulations and guidelines guiding foreign investments in the country indicate that APCON and her cohorts might face challenges in enforcing some of the rules drawn up in these new reforms. “Nigeria’s investment laws have been so lowered that we no longer have any no-go areas for external investors probably except the military and armament. The major requirements for foreign investors to operate include registration with the NIPC after incorporation under the Companies and Allied Matters Decree of 1990”. He added that the conditions for registration have also been so lowered that foreign investors no longer need more than two or three Nigerians to be on the Boards of their companies before they can operate, probably for moral reasons. In this reform programme, there are requirements that both local and foreign agencies will struggle to meet. Among other conditions, every foreign agency coming into Nigeria must produce a bankers’ credit guarantee from a Nigerian bank in the sum of N500 million and produce an agency business insurance to the tune of another N500 million from a Nigerian insurance company. N200 million is the amount required from local agencies for insurance and bankers’ credit guarantee respectively. Some practitioners find it puzzling that APCON defines a foreign agency as those with foreign shareholding from 25.1 percent and above. Other requirements seen by some practi-
tioners as somewhat nebulous include the obligation that any foreign practitioner must provide evidence from the agency that the foreign hand is filling a genuine labour shortage; that his remuneration package is compared to those offered to Nigerians of the same status; that the employment of the foreigner will create jobs for Nigerians and that it will assist in transferring new skills and knowledge to Nigerians. It is on record that many practitioners have called for moderation and level-headedness from all stakeholders on this issue of reforms. Mr. Tunji Abioye, former Managing Director of Rosabel, now CEO of Fuel Communications feels careful implementation of these reforms would be beneficial to the entire industry down the line ultimately. He said: “Every industry requires some sort of management and regulation; otherwise, it is prone to abuse. And I think what APCON and other stakeholders in the industry are trying to achieve is to ensure some element of sanity in the industry. If you have structures of a building and those structures are not sufficiently supported and upheld properly, and you find people attacking the pillar of that building, in no time, that building will come down. “So, as far as I am concerned, the structures of the industry must be supported so that ultimately the overall good of the industry can be sustained and kept in the interest of all the stakeholders. No doubt, there are issues that require some bit of management and possible infringements that may happen along the line. However, it doesn’t, on
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the whole negate the totality of the essence of the reform that is being advanced by APCON. And I do not think that it is necessarily at variance with the interest of the smaller and medium-size agencies. What is being called for is for all of us to look at the global interest of the industry and properly align our businesses to ensure that what we are doing does not ultimately destroy the industry in which we are playing. Everything can be achieved tactfully and with great caution,” Abioye added. Speaking to BrandiQ on the need for the reform, Tunji Olugbodi, Managing Director and Chief Executive Officer of Verdant Zeal, gave the reforms his full backing. His words: ‘‘I opt for protectionism. It is not new; it is not strange because it happens in different markets. For example, Brazil, India and a lot of other countries protect their own local industries. To that extent, yes we must have something. Going to the specifics of what is enshrined in this law- I have not studied it in details but I know that there has been a lot of hue and cry about it. What I do know is that if you want to go to any environment as a foreigner, there are rules and regulations and obviously what you will be subjected to will be different from what the locals will be subjected to.”
Views on APCON Reforms We must find a careful balance Tunji Olugbodi, Managing Director/ CEO, Verdant Zeal -
We must compensate local interests - Lolu Akinwunmi, Chairman, APCON APCON in pursuance of its statutory obligations, and within the laws establishing it, and working with its various professional components, has taken a decision to review various parts of the advertising professional practice laws with a view to ensuring that they conform to global standards and compensate local interests. In addition, APCON will exercise its mandate in ensuring that the advertising profession is allowed to grow and mature within an equitable environment.
He stated further: ‘‘If you look at our locality, what we want to do is to ensure that the barriers to entry are elevated, the other is having what I’d like to call visible values that will make us more cosmopolitan, competitive and global. We must ensure that the standards set are not only global but are also relevant within the context of the local needs.” Mr. Olugbodi, however, implored APCON to tread softly in view of the need to embrace global opportunities. ‘‘What we need to do is to find a careful balance; you cannot scare people away because no one is an island, and if you do, you are most likely not to play the global game in a way that is effective and competitive. Again, you cannot throw your own local market to the dogs because you want foreign direct investments; so it is a matter of the balance.’’ Olugbodi declared. BrandiQ 46
I have not studied it in details but I know that there has been a lot of hue and cry about it. What I do know is that if you want to go to any environment as a foreigner, there are rules and regulations and obviously what you will be subjected to will be different from what the locals will be subjected to. What we need to do is to find a careful balance. You cannot scare people away because no one is an island. And, if you do, you are most likely unable to play the global game in a way that is effective and competitive. Again, you cannot throw your own local market to the dogs because you want foreign direct investments. So, it is a matter of the balance.
Foreign Agencies must play by the rules Steve Omojafor, Chairman, STBMcCann
Only Specialized Agencies should exist Mr. Willy Nnorom, Chairman, ACAPRThe reform is in the best interest of all registered professionals within the advertising industry. Hence, the council has taken far-reaching decisions to grow local content. Among the reforms is that each firm must have specialized areas of operations: Advertising, Media, Full-service advertising, Creative, Interactive agency, Advertising artiste (which include voice-over artiste and modeling agency) and others.
If you must set up 100%, go through our rules and set up 100%. If you want to come into partnership, go into partnership and follow the rules. For a long time, we have exposed ourselves to all kinds of exploitations. I have no problems with bringing in foreign experts, but when you come, please play by the rules of the game. You can’t be an island to yourself. So, I believe that this is the only way for the industry to go forward.
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Everything can be achieved with tact and great caution - Mr. Tunji Abioye, CEO, Fuel Communications
Every industry requires some sort of management and regulation; otherwise, it is prone to abuse. And I think what APCON and other stakeholders in the industry are trying to achieve is to ensure some element of sanity in the industry. If you have structures of a building and those structures are not sufficiently supported and upheld properly, and you find people attacking the pillar of that building, in no time, that building will come down. No doubt, there are issues that require some bit of management and possible infringements that may happen along the line. What is needed is for all of us to look at the global interest of the industry and properly align our businesses to ensure that what we are doing does not ultimately destroy the industry in which we are playing. Everything can be achieved tactfully and with great caution.
We are Bringing Global Best Practices into the Nigerian MarketScanad CEO
There are one or two issues to sort out - Jim Awosika, Managing Director, Insight Communiccations
Nigeria is a signatory to the WTO (World Trade Organisation). Whether an agency is regarded as foreign or not, we still have Nigerians working there. I doubt if we would have an agency with all the employees as foreigners. For me, it is just a classification. However, it can enhance competition. I will also believe that APCON has set up a parameter on how people can come in, what they can do and what they can’t do. Concerning the issue of providing banker’s guarantee and insurance, I honestly cannot tell what the intentions of APCON are. Probably one of the things they are trying to do is to address the issue of industry debts which has been a lingering issue for some time. Whether it’s high or not can be debated; there might be one or two issues to sort out but I know that APCON means well.
It might not be exactly the kind of attention any player entering into a new market would love to attract, but Scanad Group seems poised to overcome every obstacle in her efforts to gain a strong foothold in Nigeria’s vibrant marketing communications industry. When Scanad MD, Bharat Thakrar visited Nigeria last week, Ntia Usukuma had an encounter with him. Vintage Bharat opened up on his views about his company’s travails in Nigeria and his plans to ensure that his company is eventually cleared to operate in Nigeria.
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Why are you so determined to play in the Nigerian Market? Big global players like Coca-Cola, Unilever, Airtel, and Procter & Gamble strongly desire a top-flight Marketing Services Company like us to provide them with standard marketing solutions so that they can deliver great results. The world is getting very competitive. Before now, if you run few ads on television and newspapers, people will buy your products; but today, things have changed completely. Globally, the industry is changing. For instance, the digital space is playing very vital roles. In Nigeria, I must agree that we have a combination of good instrument players, but no matter how good they are, when there is no experienced quality conductor, it will be difficult to provide good sound or great music. How do you make great music? You need a good conductor, who can tell every instrumentalists when and how to play. Our coming into Nigeria is to fill that gap. We need to raise the bar and bring in global standards so that the advertising industry in Nigeria can rise up to provide world standard services. We have in our business a process called communication planning. For you to give the whole mix, everyone is constantly planning and talking to each another- the digital company talks to the media agency, the media agency to the creative agency to provide the desired synergy. In Nigeria, before the recent drive for foreign investment, multinational companies were very few, besides there was a decree that prevented full foreign involvement in advertising and other related areas. Now that decree was later removed. So, today, we are looking at taking Nigeria to the next level where we need to bring in expertise from the outside to sort out the communication challenges that some clients in Nigeria are facing. Another key reason we came into Nigeria is beBrandiQ 48
cause our international clients want us to be here to give them what we collectively give them in other African countries. You are based in Kenya; tell us about your Operations there and in other African countries In East Africa, we operate as a group but in diverse areas. There is the digital agency, PR agency, Research agency, and that is what we want to bring them into Nigeria. So, we are not coming to take anybody’s business, we are coming because the clients we deal with internationally; Procter & Gamble, Unilever, Airtel want us to provide them with our level of expertise that we have developed. We started the company in 1982, in 2006, we went public, and so we became quoted on the Nairobi Stock Exchange. We did it to attract multinational investors, so WPP came. They took 33 percent. As the major shareholder, I owned 80percent but in the new arrangement now I have just 18 percent. The reason we had the deal with WPP was because I needed expertise from the outside. When WPP came, they brought in Hill &Knowlton, Ogilvy. They brought other brands one after the other. We bought into this relationship to uplift the company because WPP is developed enough to face the challenges the industry demands. Today, we are dealing with Procter & Gamble and others that want to see global best practice, and global best practice means implementing the same level of services they get across foreign market , and for us to do that, we need to be connected to multinational agencies. Today, if you ask
any multinational brand if they are satisfied with the service they get from agencies in Nigeria, compared to what they get internationally in terms of marketing services, the answer will be no. The reason is because there is no infusion externally to raise the bar. Nigeria is a very fast developing market, the richest and most populous nation today in Africa; and multinationals wants to be here but agencies need to up their game. So this ruling by Nigeria’s advertising regulatory body, APCON to prevent people like us from investing here will not enhance the growth of the advertising industry. What is really your grouse with the 2013 APCON reforms? If you read some of the points in the APCON reforms, you will wonder what is going on especially the one that talks about foreign agency -that if I own more than 25per cent in Nigeria, it means it is a foreigner agency. As a foreign agency, I will have to practice outside the shores of Nigeria. In other words, as a foreign controlled agency, I can be here but I can’t work with the local clients, I can go and work for a client in Ghana or Cameroon. Why would I set up here if I have to work for a client outside the shores of Nigeria? Have you found out if APCON has the powers to do that? The reform has a lot of grey areas. From what I have been told, APCON was established to regulate practitioners. In the past, APCON was known to regulate the qualifications of the practitioners in the business of advertising and content. Now, it seems it has been given more authority to license agency. But, if you look at these reforms, it is a totally new advertising licensing regime. They are saying that all agencies must
COVER
be licensed by APCON and if I apply today as a 100per cent foreign owned company, I will not get the license to operate in Nigeria. They can even give me a license but I must operate outside the shores of Nigeria. This is quite incredible. This might be a response to the fear some indigenous practitioners have that foreign players coming in with huge huckster and strong financial background might probably push them out of business; what do you say to that fear? Their fears are misplaced. Competition improves the standard. If we start to deliver quality service, others will have to match up. Competition is healthy in any market. They have to raise the standard, train the people better, which is the law on how competition works. APCON has argued that this is a sensitive industry in the sense it has to do with communication and security. When you handle communication in any country, you are bound to control people with your message. What is your view on this? Aside Saudi Arabia, there is no other place in the world where advertising is restricted like this in the whole world because advertising supports marketing companies. How come Coca-Cola can establish 100per cent here? How come communication companies in Nigeria are 20per cent locally owned and 80per cent of foreign ownership like MTN and Airtel? They are more relevant to security issues than the advertising. There are no security issues in the advertising industry. And how come these kinds of stiff reforms are not applied to other industries. There is no logic in this reform. NIPC gave us letter that authorizes us to run as an advertising agency without restrictions. We put in three and half to four million dollars and they gave our people coming in a work permit. The companies were registered in March last year but this reform came into effect January this year. We have invested in money, opened offices, hired personnel and now we are told you cannot be licensed by APCON to operate here. Another thing we must also understand is that if you say you are a regulator, you must be independent from the practice.
In every sector, there must be an independent regulator just like the telecoms where NCC regulates that sector or CBN regulates the banking sector. You cannot have one of the banks’ MD sitting on the board of the CBN because there will be a conflict of interest. If you are a regulator, you have to look at the best interest of the country and the economy; you cannot use the rules to suit your needs. I have realised that very active practitioner chairs the advertising regulatory body. This attitude by APCON is quite strange and big disservice to clients in Nigeria and the entire economy. Do you agree that as much as we operate an open door, each country has its right to economic protection against those bulldozing in with might and money? We are not coming into Nigeria with might and money. We are coming with talent. It is quality that we are going to offer. We don’t need might and money to offer better quality services. We have not come to buy everybody and put some people out of business. In Kenya, the reason we became what we are was because we were focused. Everybody in the business saw the need to raise the bar, but, we uplifted the bar. We started offering better quality services product. Our strategy is the strongest. We are the strongest talent base. We are successful because we are good at what we do not because we have the cash or the money. Small and local companies can only survive if they offer better quality service and they have to offer the full discipline properly. There must also be some level of synergy where one message is the same whether in digital, PR, or media activation. The business is changing completely globally. We use to have Creative Director but now we call them Creative Technologist because they need to technically know how to send messages, how to create campaigns that are interactive to younger audience. Why did you not partner with a Nigerian agency, probably you would have avoided all these brouhaha? Yes, we had a partner and we gave them that offer but they refused. We told them to give us 51 per cent and they refused.
less, maybe 51percent was on the high side No, we need that 51per cent to take full grasp of the company’s control to do what we want to do as well as offer that quality that we need to offer. If you are a minority shareholder in a company you cannot manage the control to deliver the product. Again, that is the reason why many foreign affiliates are pulling out of their partnership with some agencies in developing economies like ours. When an affiliate realises that an agency is not offering quality services the client is expecting, there are very few other options. It is just like going to any intercontinental or Protea hotel wherever it is Africa, Europe or Asia, you expect them to offer you the same kind of service, or at least, key elements must be there. If there are differences, then it’s a major issue. What steps are you planning to take now? I think either APCON has been misled or misadvised or under the pretense of reforms, these contradictory elements were slipped in. I don’t think clients or most stakeholders in the industry were adequately consulted before such reforms were made. We would make every effort to help APCON re-direct her focus to what is acceptable globally. We are in the era of promoting business activities across the continent. I am a fullblooded Kenyan. My grand- parents were Kenyans. My investments are in Kenya and other African countries. I am rushing back to Kenya now because I am an active opinion leader for one of the candidates in the Kenyan Presidential elections. The issue of a foreigner trying to swoop on our resources does not exist. There is a Nigerian owned outdoor agency doing very well in Kenya. You may recall when Ghana tried to put some strange hiccups on the path of Nigerian businesses, good reason later prevailed. It was not as extreme as this one. I believe good judgment would soon prevail. Almost 4 million dollar investment cannot go down the drain. We can’t afford to send wrong signal to international investors.
Why did you not go for 49 percent or BrandiQ 49
industry interview
‘Let’s use our stories to ride to success’ Tola Bademosi is the Chief Executive Officer of BD Consult, a Public Relations agency established in Nigeria in 2006. Equipped with gratifying experiences while at The Quadrant Company and JWT Nigeria, Bademosi in this interview with Ntia Usukuma and Henry Otalor, relates the story behind the formation of BD Consult, measures agencies need to manage big brands and secure mutually rewarding affiliations with foreign firms, importance of staff training and re-training, and helpful approaches to rebranding Nigeria.
Establishment of BD Consult After school, the typical thing everyone wants to do back then was to work in the bank. At that time, the new generation banks were just coming up. Though I had wanted to do something related to marketing, the first thing I did was to work in an insurance company as an insurance salesman - where I sold life insurance. It was while doing that I discovered they are so many interesting things one can learn on the street as a salesman on the field. After 16 months, I realised that, there was need for change. Then, I began to look for that platform that gives one that opportunity which was in marketing services. The opBrandiQ 50
tions were outdoor, advertising or a Public Relations firm. I spoke to a very close relation in the industry who worked out something and I joined The Quadrant Company back then. After handling several accounts and growing them, from minimal billing to something extraordinary, after about two years plus I wanted to try something else, and so I moved to advertising to get a feel of it, then I joined JWT Nigeria as a client service executive then. After a while I got bored with client service; I moved to strategy as Head of Strategy for JWT. I stayed in JWT for two years and understood advertising from start to finish. From there I went back to my first love which was PR.
It was something that came naturally. At that time there were interests from several people who wanted me to handle a few projects for them and then we had to do it in a more structured format. So we started BD Consult and by 2006 BD Consult was incorporated. BD Consult strategy for managing big brands The philosophy that was guiding the establishment of BD Consult was “make a change”. Looking at the industry then you will realise that the major forerunners in the industry are getting older by the day; there is need for new generation of PR
INDUSTRY INTERVIEW
practitioners to be at the forefront. We said let’s not practice PR the way everybody else was doing it. Let’s come up with something different, innovative and challenging, that was why we came up with cliché we use in-house and with our client that they must own the conversation in their industry. And that has been our story for every client we work for. They always own the conversation in their industry. If you look at the noodles industry, Indomie takes the lead; in the beverage industry, Bournvita holds the ace, and in the carbonated soft drink La Casera holds that
sus PR? We as PR practitioners are responsible. For example, I am a member of NIPR and PRCAN but not an active member. The reason I have not been active is, take NIPR for example, every organisation is determined by the head. Whoever drives the car determines the direction not the passengers. Take the Lagos chapter as a case study, who is the head? Does he practice PR? Does he own a PR firm, and can he drive PR practitioners? You don’t expect the likes of Yomi Badejo, Emeka Maduegbuna, who are the forerunners in the in-
for staff and activities coming up. Perhaps this change will come into NIPR. When you look at the plans that PRCAN has for its members since Nwakanma took office as the president, one can see the active initiative that tells us there is a future for the association. Being active or inactive has to do a lot with the drivers. PRCAN reaches to its members and the members are actively involved in its programmes. Hope this wind of change gets to NIPR. As regards affiliations, who stands to benefit? I wouldn’t say we are planning or not. The
TOLA BADEMOSI CEO, BD Consult
market. All these brands you can testify that they hold the market in terms of perception, acceptability and goodwill. We always ensure that the strategy and tactics we put in place for all our clients are that, they own the conservation and that is what drives us and perhaps what can be considered as our trick. Above all of that are the people behind it. An office is just a building if there is no life in it and what makes the life are the people in it. Same applies to every organization. An organisation will remain a name or logo without the people behind it. So we say our people - but those that have worked with us and those currently working with us have contributed to us immensely to where we are today in just six years, and of course the future is bright. Which is more visible, Advertising ver-
dustry to come sit down to say they are members of NIPR to be driven by someone who is not practising PR. I understand that the Chairman Lagos chapter of NIPR is a lawyer. You can never see a PR man as the president of AAAN. And it is not like there are no practitioners in NIPR, there are lots of active PR practitioners in NIPR, some are heads of committees. The question is why will a non-practising PR person be the Chairman Lagos chapter of NIPR? And that is why people are not active, what is the reach out plans for people to be fully engaged? Because PR is all about engagement. If we practice engagement and strategy for clients to engage with their consumers, I think we as practitioners must also put in place things to ensure that we are also engaged. PRCAN is changing. In the last 1year, PR has become more visible doing a lot of training
question is what is the objective of affiliation? You can’t go into affiliation because everybody is doing it or because you want to take pride in having an affiliate from the UK or South Africa. There must be an objective you want to achieve. The question you must ask is it relevant? Do we need it? Yes, of course, we have foreign partners that we can cross-fertilise ideas together. I am a member of the Public Relations Society of America, which is a network of PR practitioners in America. We have a meeting point online and an annual conference where we burn and discuss issues, and get actively involved in it. There are several platforms people can come together and discuss ideas and issues; you don’t need to have an affiliate to succeed. Must we have an affiliate to deliver unparalleled PR solutions to our clients? We need to build our brand. We don’t have to ride on the back BrandiQ 51
INDUSTRY INTERVIEW
of anybody to succeed. We want to achieve and get there on our own. Some agencies that depend on affiliates to survive will even have their names silent and the affiliates will be very loud which should be the other way round. I can tell you that we are a local brand with a global outlook. By March this year, we would be opening an office in Ghana. Already we have started business. We don’t want to ride on the back of the global brand to success yet we are not known. We want to use our stories to ride to successes. The issue of training, that members are not trained enough, some people believe the agencies have refused to train their staff so that when they leave, their agencies do not lose anything? Training in the industry is below average. The truth is there is a very limited opportunity for professional training in Nigeria and that is a big deal. I support staff training 101%, because our job is knowledge-based. If you expect a mind to be knowledgeable, productive and interact with the client and provide solutions for the client, then that mind must be trained. You don’t expect a mind to be the same way and yet you expect a different result. I train my staff and train myself as well. It is not every time I have the opportunity to sit in front of the client, sometimes my colleagues will have to sit in that meeting and in front of the client, how would they then make sense when they are having discussions with the client? The only way to ensure that this happens is to ensure that they are adequately equipped with the right knowledge PR perspective to Rebranding Nigeria This issue is still an ongoing discussion. On the issue of perception, have we really tried to manage it professionally? Has the government really invited professionals to manage these problems. But if we have professionals in this country that are turning brands around from nowhere to become global brands? Why are professionals not involved professionally? I believe with good hands, some of the best advertising practitioners in Africa, some of the best PR practitioners in Africa, I don’t see why we cannot change the image of our country if we are sincere about it. The image of NigeBrandiQ 52
ria is a perception issue and an attitudinal thing. If you don’t change people attitude you cannot change their perception, you can use as many songs as you want to sing or cliché as you want to use that doesn’t mean that the experience you have lingers with you longer than all of those things. The kind of experience people have when they visit Nigeria goes a long way to determine their perception goes to determine their experience, and that is the experience they will leave with and that is what they will call Nigeria. For a lot of people they have not been to Nigeria but their perception is built from what they see on CNN or hear on Radio. Is there a communication that has been developed to communicate the Nigerian state that it is aired globally just like what India, South Africa, Sri Lanka are doing on CNN? And you will want to go to those countries, not that there are no crimes in those countries at all, but what are we saying about ourselves and how are we saying it and what platforms are we using to say these things? Those are the issues we need to look at to say how we are going to address them. Even in Ghana and the West Africa coast, we say we are the giant of Africa, are we really proving it? Is it just about population? There are questions to be asked and when we are able to answer these questions rightly and take the right approach, we will just have that problem solved. How can the issue of quackery in the industry be checked? The issue of quacks is not peculiar to public relations. Quacks will always be quacks; there are quack doctors just as there are quack engineers, Lawyers, quack teachers, quack journalists, etc. Quacks are everywhere and in every industry. But what we can do in the public relations sector is to put some restriction, and PRCAN has started that to educate and enlighten the public especially those who require public relations services to deal with only PRCAN certified and registered members. In America, you cannot practice PR if you are not fully registered – There are strict laws against that. What are the laws we have in place to penalize the quacks. If you want to practice PR there are minimum required qualifications that you must have. Now if
that is not in place and organizations are dealing with such individuals, those are questions that we must ask. Why few brands sponsorship at AFCON? Different brands have their strategies and approaches for sponsorship. Another reason why it seems like brands are not sponsoring AFCON 2013 could be the fact that it is the Nations Cup. Remember in 2010, when South Africa hosted the World Cup, brands where falling over themselves to sponsor. Perhaps the strategy may be a lot different rather than have their brands logo come up at intervals especially during the 15minutes’ break, you see the number of adverts that came in. It may be a different strategy to say rather than sponsoring with my logo shown behind the field or by the spectators’ stand, I can have it in form of interlude. Before you make any sponsorship attempt or sponsor any property you must be able to identify your marketing communication objective. If it’s in line with your objective you go with it. If it’s going to help achieve your marketing objectives you go with it. I am sure that is what most of the Nigerian brands are asking themselves. I don’t think the dearth of sponsorship by Nigerian brands is as a result of the Super Eagles’ performance. It is a case of marketing objectives. If you take a look at the stands during each game, you would have noticed a lot of empty seats, you need to also ask that question, why?
TOLA BADEMOSI CEO, BD Consult
BRAND IN FOCUS
Customer Service in Nigerian Banks By Nathaniel Udoh and Ekene Odiari respondents in the new generation category
O
ne thing that business owners sometimes fail to understand is that customers are the driving force of businesses; without them, businesses have no future.
8
Customer service is the way a business relates and interacts with members of the public to win and keep them as customers. It is also a strategy that those in business use in winning customers and making them happy as well. In the last ten years, much transformation has taken place in the Nigerian banking landscape in a bid to improve customer service. Despite this, people are still expressing mixed feelings about customer service among banks in Nigeria. To find out the level of customer service among these financial institutions in the country, BrandiQ embarked on a research. The study classified banks in Nigeria into two - old and new generation banks- and adopted qualitative and quantitative methods of research, with structured questionnaire as the instrument of collecting information from the respondents. 250 respondents in the A, B, C, and D socio-economic classes, male and female aged 16-50 years and above were interviewed. Simple random sampling was used in the study, and the following are the findings: Popularity of banks Most popular banks among respondents in the old generation category
8.8
6.4
Ecobank Diamond Bank Others
In the new generation banks, the brands that were mostly mentioned by respondents were GTB with 40.8%, and Zenith Bank with 36%. In the third place was Ecobank with 8%, while Diamond Bank with 6.4% occupied the fourth place. Others still in this category accounted for 8.8%. Contact with banks Old generation banks respondents frequently relate with 45 40 35
44.4
43.2
30
UBA
25
First Bank
20
UnionBank
15
Wema Bank 8.4
5 0
60
Zenith Bank
36
10
70
GTB
40.8
UBA
First Bank
UnionBank
4 Wema Bank
50 FirstBank
40 30
UBA 60
Union Bank Wema Bank
20 22
10
10
8
Union Bank
Wema Bank
0 FirstBank
UBA
Among the old generation banks, First Bank was the most popular among the respondents with 60%, followed by UBA with 22%. In the third place was Union Bank with 10 % and Wema Bank came last with 8%.
Among the old generation banks, respondents frequently relate with, the UBA came top with 44.4%, followed by First Bank with 43.2%. Union Bank with 8.4% and Wema with 4% occupied the third and fourth places respectively. Contact with banks New generation banks respondents frequently relate with Among the new generation banks, respondents frequently relate with, GTB topped the chart with 36%, followed by Zenith Bank with 43.4 %. Closely followed was Access Bank (13.6%); Skye Bank was the fourth mentioned with 7.2% and Fidelity Bank in the fifth (5th) place with 4.4%. Others accounted for 4%.
Popularity of banks Most popular banks among respondents in the new generation category BrandiQ 53
Others
4
Fidelity Bank
4.4
46.4
GTB Sky Bank
First bank
Zenith Bank
7.2
Access Bank
UBA
53.6
Access Bank Sky Bank
13.6
Fidelity Bank Zenith Bank
34.8
GTB
36 0
10
20
30
Others
Among the two most preferred banks in the old generation category, First Bank came first with 53.6%, followed by UBA with 46.4%.
40
Accounts Domicile-old generation banks Reasons for preference Where do respondents mostly have accounts among old generation 60 banks? respondents mostly have accounts among old generation banks? 50 45
40
42
40
39.6
30
UBA
25
First Bank
20
Union Bank
14.8
15
Wema Bank
10
First Bank
Security of customers money Reliabilty
20 10 0 Security of customers money
3.6
5 UBA
44
30
35
0
56
Union Bank Wema Bank
UBA with 42% was the most mentioned bank which respondents have their accounts, followed by First Bank with 39.6%. Union Bank with 14.8 % and Wema Bank with 3.6% came third and fourth respectively.
On why respondents show preference for these two against other old generation banks, security of customers’ money came top with 56%, followed by the issue of reliability with 44%. Three most preferred banks by respondents -new generation banks
Accounts Domicile - new generation banks
17.2 45.2
40
Zenith Bank
35 30
39.6
37.6 GTB
38.8
25
GTB Skye Bank
Zenith Bank
20
Sky Bank
15
Fidelity Others
10 7.6
5 0
Reliabilty
GTB
Zenith Bank
Sky Bank
6 Fidelity
8
Others
GTB with 39.6% was the most mentioned among the new generation banks where respondents have accounts, while Zenith Bank came second with 38.8%. Closely followed were the Skye Bank with 7.6% and Fidelity (6%). Other new generation banks in which respondents have accounts accounted for 8%. Two most Preferred banks by respondents -old generation banks BrandiQ 54
The three most preferred banks in the new generation category were Zenith (45.2%), GTB (37.6%) and Skye Bank with 17.2 %. Reasons for preference Security of money with 42.8% was the first reason why respondents show preference for the above-mentioned banks. Prompt service delivery was the second, with 40.8% while customer friendly attitude of staff was 16.4%.
45 40
42.8
35
40.8
30 25
Security of customers money
20
Prompt service delivery
15
16.4
10
Customer friendly attitude of staff
5 0 Security of customers money
Prompt service Customer delivery friendly attitude of staff
Zenith Bank Zenith Bank was established in May 30, 1990. It became a Public Limited Company in July 2004. On October 21 that same year, the bank had an initial public offer on the Nigerian Stock Exchange (NSE). Jim Ovia was the first Managing Director/Chief Executive Officer of the bank. The present Managing Director and Chief Executive Officer of the bank is Godwin Emefiele. Through its strategic deployment of its personnel and information and communication technology, the bank has redefined its customer service to always deliver exceptional service to surpass customer expectations. Pay off line…. “In your own interest” Why Zenith Bank is rated high in customer service
Customer Service Customer service is not a department; it is an attitude, a culture and a collective way of seeing the world. Wowing the customer is not the exception; it is the rule (John Murphy). Customer service is about making customers to be happy -happy enough to disseminate positive words of mouth to others about the company and its products or services who may then want to give a try on what is offered and in that process, become repeat customers to the company and its products or services.
50 45 40 30
Good customer service is the lifeblood of any business. The business may offer as many promotional activities but unless the business has a way of relating well with its customers, it may not be profitable for long. The essence of good customer service is to form a relationship with customers, a kind of relationship that individual customers will like to go back to the business the next time. At this point, an examination is made about customer service in banks. Respondents’ three highly rated customer service banks.
Skye Bank
20.8
GTB
Zenith
37.6
20
41.6
0
10
21.2
15
Professional ism in service delivery Prompt & efficient service
10 5 Staff courteousness to customers
Professional ism Prompt & in service efficient service delivery
Zenith Bank is rated high in customer service delivery as a result of staff courteousness to customers, professionalism in service delivery and prompt/ efficient service to customers. GTBank Guaranty Trust Bank Plc popularly called (GTBank) was incorporated as a limited liability company to provide commercial and other banking services to the Nigerian public in 1990. The bank commenced operations in February 1991. In September 1996, it became a publicly quoted company on the Nigerian Stock Exchange. It won the Nigerian Stock Exchange President’s Merit Award that year, and subsequently in 2000, 2003, 2005,2006,2007,2008 and 2009. The bank’s culture is tied to eight guiding principles known as the “Orange Rules”, driven by Simplicity, Professionalism, Service, Friendliness, Excellence, Trustworthiness, Social Responsibility and Innovation. Today, backed by its growing regional spread and strong domestic franchise, GTBank has extended its operations across countries. Pay off line…. “Wouldn’t you rather bank with us?” Why GTBank is rated high in customer service?
GTB Skye Bank
Zenith
Staff courteousness to customers
30.8
25
0
Customer service is considered a form of marketing because a happy and a satisfied customer, through “words of mouth”, can promote a business or a brand just as unsatisfied customers can go elsewhere and talk bad about the business which may cause the business to lose customers to competitors.
48
35
20
30
40
GTBank is equally rated high in customer service owing to staff politeness to customers, quick service delivery and prompt attention to issues raised by customers.
50
Based on respondents’ experience, three banks were rated high in customer service delivery. Zenith Bank came top with 46.6%, followed by GTB with 37.6%, and Skye Bank with 20.8% BrandiQ 55
40 35 30
39.2 34.8
25 20
Politeness to customers 26
15
Promt attention to issues raised by customers
10 5 0
Quick service delivery
Politeness to customers
Quick service delivery
24, 1998, the bank became a Public Limited Liability Company. On November 18, 1998, Access Bank was quoted on the Nigerian Stock Exchange and on February 5 2001, Access Bank got a Universal Banking License from the Central Bank of Nigeria. On January 31 2002, Access Bank announced the completion of its acquisition of Intercontinental Bank through a merger deal. The bank core values are: Leadership, Excellence, Empowered employees, Passion for customers, Professionalism and Innovation. Pay off line…. “A passion for excellence” Why respondents rated Access Bank poorest in customer service delivery?
Promt attention to issues raised by customers
60 50
Skye Bank The origin of Sky Bank dates back to 1989 when the then Prudent Bank Plc was incorporated as a limited liability company. In 1990, the bank was issued a license as a merchant bank. The same year, it was rebranded Prudent Merchant Bank Limited. In 2006, Prudent Merchant Bank Limited through merger with four other banks namely: EIB International Bank plc, Bond Bank Limited, Reliance Bank Limited and Co-operative Bank plc teamed up to become the Skye Bank plc of today. The bank is driven by a culture of ‘customer centrism’ to create value for customers through its dedicated workforce. The core values of the bank are: Continuous learning, Integrity, Mutual Respect and Accessibility. Pay off line…. “Expanding your world”. Why Skye Bank is rate high in customer service? 45 40
41.2
40
35 30 25
18
20 15
Responsive customer care unit Friendly disposition to customers Quick service
10 5 0
Responsive Friendly customer disposition care unit to customers
Quick service
For Skye Bank, what contributes for its being rated high in customer service are-its responsive customer care unit, friendly disposition to customers and quick service delivery. Three banks respondents identified as the poorest in customer service delivery: Access Bank Access Bank was issued a banking license in December 19 1988, and in February 8, 1989, Access Bank was incorporated as a privately owned commercial bank. On May 11, the bank commenced banking operations at its Burma Road Apapa Office, in Lagos. On March BrandiQ 56
52
40 30
No regard for customers
35.6
Staff arrogance
20 10
Delay in sevice delivery 12
0 No regard for Staff arrogance Delay in sevice customers delivery
Access Bank is one of the banks identified with poor customer service as a result of staff’s lack of regard for customers, staff arrogance towards customers and delay in service delivery. Union Bank Union bank was established in 1917 as Colonial Bank. In 1925, Barclays Bank acquired Colonial Bank, and changed the bank’s name to Barclays Bank (Dominion, Colonial and Overseas) or Barclays Bank (DCO). In 1969, Barclays Bank DCO was incorporated in Nigeria as Barclays bank of Nigeria Limited in line with the banking laws that were enacted in 1968. In 1971, the share of the bank stock was listed on the Nigerian Stock Exchange. That same year, 8.33% of the shares of the bank were offered to Nigerians and later the Federal Government of Nigeria acquired 51.67% ownership of the bank leaving Barclays Bank of London with 40%. In 1979, the 40% shareholding was sold to Nigerian individuals and business in line with then enacted banking and investment laws. In 1993, the Federal Government of Nigeria completely divested its ownership in the bank. In line with the Central Bank of Nigeria’s banking sector consolidation policy, Union Bank of Nigeria plc, acquired the former Universal Trust Bank plc and Broad Bank Limited. It also absorbed its former subsidiary, Union Merchant Bank Limited. The bank plans to maintain its Pay off line….. “Big, strong and reliable”. Despite the ongoing overhaul of its operations, it has unveiled a multimedia advertising campaign tagged: “We’ve only just begun”, which is aimed at building a new image for the bank and making it more customer-centric in service delivery. Why Union Bank is rated poor in customer service delivery? For Union Bank, its civil service attitude to work, slow in dealing
with customers’ matters and impoliteness of some branch staff to customers contribute a lot to poor customer service attitude of the bank. 60 50
52
40 30
No regard for customers
35.6
Staff arrogance
20
Delay in sevice delivery
10
12
0 No regard for Staff arrogance Delay in sevice customers delivery
UBA Today’s United Bank for Africa (UBA) is the product of the merger of Nigeria’s (3rd) and fifth (5th) largest banks, namely the old UBA and the erstwhile Standard Trust Bank plc, (STB) respectively and the subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). The union emerged as the first successful corporate merger in the history of banking in Nigeria. The history of UBA dates back to 1948 when the British and French Limited (BFB) commenced business in Nigeria and the erstwhile STB and CTB both in 1990. When Nigeria gained its political Independence from Britain, UBA was incorporated in 1961 to take over the business of BFB. UBA was listed on the Nigerian Stock Exchange in 1970. Today, United Bank for Africa is one of Africa’s leading financial institutions offering universal banking to more than 7.2 million customers across 700 business offices in 19 African countries. Payoff line is… “Africa’s global bank”. Why UBA is rated poor in customer service by respondents?
20.8 44.8
34.4
Conclusions • Customer service in some Nigerian banks is still very worrisome and needs to be given more attention than what obtains now. This is necessary in order to attract customers of today who usually, are difficult to please and can easily switch loyalty to competitive banks offering better banking services. • The health of a bank in terms of financial stability and security of customers’ money determine which banks customers bank with. • Quality of service delivery is a key factor in attracting customers to a particular bank. • How a bank performs as regards service delivery to customers goes a long way to determine patronage for a particular bank. Banks such as Zenith, GTB, and Skye have taken the lead in this aspect while Access Bank, Union Bank and UBA still have much work to do in this regard. • Most customers see banks as only safe havens to keep money. Apart from this impression, they believe that banks are not there to assist them grow in terms of offering loans at favourable interest rates: that banks would rather look at what they can get from customers.
No courtesy for customers Non-challant attitude to customers' inquries Lack of professional service delivery
For UBA, lack of courtesy for customers especially paying and receiving cashiers, non-challant attitude of staff in most customer care units and lack of professional service delivery skills constitute a setback to customer service of the bank. FirstBank Nigeria Launches its Premium Banking Lounge in Lagos & Abuja! BrandiQ 57
VOXPOP VOXPOP Consumers Rate Customer Service in Nigerian Banks Banks in Nigeria are no longer attractive because of the kind of treatment given to customers Wale Ogunade-Human Rights Lawyer
Banks rip off customers a lot because many people do not know their rights. People are made to go through hell during transactions in some banks as they are made to sweat before they can get their money. Some bank officers are not courteous and respectful to customers. Banking is about delivery of service to customers (not wearing suits), but this is not the case in Nigeria. And with all these, banks in Nigeria are unattractive to some people.
Bank customers in Nigeria are yet to be treated well as it is the case in other countries
Akeem O. Aponmade-An Entertainment Lawyer My personal experience with banks shows that where your account is domiciled, if you cultivate a relationship with your account officer, you will be treated well. If not, you are treated with no respect: this is not supposed to be so. Banks in Nigeria make people to waste too much time during transactions. Most bank service staff do not put smiles on their faces when dealing with customers. This is a trend that affects level of interactions between the banks and their customers. Bank workers especially those at the counter “paying and receiving cashiers” in some banks do not show any element of respect and courtesy to customers. A lot of banks in Nigeria subject customers to too much unnecessary and irrelevant questioning especially if one goes with a third party cheque for withdrawal of cash irrespective of genuine particulars of identification. BrandiQ 58
Poor customer service in Nigerian banks will continue unless people complain Mohammed Gani –A Lagos-Based Lawyer
So many people are not pleased with the kind of services banks give to them these days but do not complain. A lot of people do not know their right when it comes to doing transactions in their banks to complain about poor services. Banks on the other hand do take an advantage of this not to relate well with their customers. When a lot of people begin to challenge poor service delivery they receive from their banks, it will make banks to improve on service delivery customers.
Customers are exploited in Nigerian Banks Comrade Abiodun AremuGeneral Secretary of Joint Action Front
Service transactions and delivery from banks to customers in Nigeria are slavery in nature. Banks rip off customers through high interest rates. Banks act like casinos.
SPECIAL FOCUS
NO&G: Emerging Energy Brand Repositions Nigeria with Innovative Facility By Ntia Usukuma
I
n the last edition of our magazine, we had predicted in our cover story that the previous style of government ownership and control in the oil and gas sector would be giving way to increased privatization in this megabucks industry. We had forecast that this development would bring forth many strong local and foreign brand-conscious players in 2013.
The likely emergence of visibly active players in 2013, especially in areas such as gas and power distribution where competition is expected to be intense with greater interface with the general public was equally predicted, that the preferred bidders for the country’s power generation and distribution firms are expected to take control of these companies before the middle of this year.
However, at the time, the magazine was not looking in the direction of the rave of the moment in Nigeria’s oil and gas sector, Net-work Oil & Gas, a 100 per cent Nigerian based company that just completed the ultra-modern Oredo Integrated Gas Handling plant.
With proven Gas reserves put at a whopping 100 trillion cubic feet, it was the trailblazing sector in the industry, gas that witnessed the earliest emergence of a fast rising indigenous brand in 2013. That was when a major milestone in the drive towards steady power supply in the country was recorded
with the commissioning of the Oredo IGHF constructed by Net-Work Oil and Gas Limited to supply gas to the National Independent Power Projects (NIPP). This feat is seen as a positive step in the drive to rebrand and reposition Nigeria. Most of Nigeria’s current natural gas production of about 100 million standard cubic feet/day (MMcsfd) occurs as associated gas, i.e., produced along with crude oil. Since the 1960s, and until a few years ago, all of this associated natural gas was flared. But with the commissioning of Nigerian LNG, in Bonny in 1999 and continuous establishment of gas Handling Plants like that of Oredo at least 60 per cent of currently flared gas would BrandiQ 59
SPECIAL FOCUS tent Act was signed into law in 2010, various indigenous marketers, operators and service providers in the downstream sector of the Oil and Gas Industry had come to full fruition.
Mrs. Diezani Alison-Madueke Minister for Petroleum Resources
be converted for economic purposes. Also with the existence of quality indigenous construction firms like Net-Work Oil and Gas, meeting the dateline for zero percent gas flaring in the nearest future seems quite achievable. At the formal opening of the IGHF, the Minister for Petroleum Resources, Mrs. Diezani Alison-Madueke commended Mr. Clifford Osawaru, the Managing Director/ Chief Executive Officer of Net-Work Oil & Gas and the Nigerian Petroleum Development Company (NPDC) for exceeding the government expectation in project delivery. The facility is a 100 per cent local content facility. The Minister said since the Nigerian Con-
“I think the Oredo Gas plant is a fantastic example of this sort of indigenous enterprise where a wholly indigenous crew has worked with our NPDC - which is a subsidiary of NNPC- to bring a gas plant to fruition within the shortest possible time; and to make good Mr. President’s 12month emergency gas supply plan. “It is wonderful for us and very satisfying for me and Group Managing Director of NNPC as well to see that by the end of 2013, this plant alone will be supplying to the domestic gas market at a hundred million standard cubic feet of gas per day (MMcsfd). Already, as we speak, it has wrapped up and is supplying 76 million MMcsfd. And I think that it is quite amazing,” Alison-Madueke remarked. She stressed that with the commissioning, Nigeria will be getting gas for power supply as well as LPG for domestic consump-
‘Only Nigerians who Dare Can Build Brands with Global Relevance’ - Clifford Osawaru, CEO, Network Oil and Gas Net-Work Oil and Gas catapulted itself into national limelight when it single-handedly built the integrated gas handling facility, a multi-million Dollar project that would serve Nigeria’s Independent Power project. In this chat with Agbo Agbo and Ntia Usukuma, the Company’s Managing Director, Clifford Osawaru, reveals the strategies behind the steady rise of this home-based energy brand. BrandiQ 60
tion. The spin-off effect will further assist in moving the economy forward by opening up the service sectors to indigenously owned companies to be able to produce a facility like the IGHF. Also speaking at the event, the Group Managing Director of NNPC, Engr. Andrew Yakubu, said the Oredo IGHF is unique and very dear to NNPC because it is the first major gas development project which is aimed at the realization of a strategic road plan of being an integrated and oil and gas company. It is also special because it symbolizes our response to the Federal government’s gas-to-shower initiative.
Engr. Andrew Yakubu
“As we speak, NPDC produces an average of 130, 000 barrels per day and currently ranks as fifth largest oil producer in the country. NPDC is poised to surpass her target of 250
What brought the idea that led to the establishment of Network Oil and Gas? Let me begin by saying God gave the vision from the outset. It started in October 2000 when I resigned my appointment from my former base at Elf Petroleum to concretize the dream of establishing Net-Work Oil and Gas. It did not take too long before the breakthrough came when we were approached to pick up the challenge of building a gas power turbine. We took up the challenge and that same year, we did not only build the turbine, the project was commissioned. That was how Shell registered us. Till date, we have executed over 40 projects for Shell and all are in a top condition. Prior to this, we registered with the Federal Government and NIPEX. This agency is the governing body to register with before you can do major projects or any services in the oil and gas industry. In other words, you must be checked and duly approved by NIPEX. In the course of executing jobs for Shell, we were also ranked one of the 50 top major contractors for SPDC, when we delivered the fibre optic cable for Shell. Thereafter, the opportunity came for this project which was commissioned by Mrs. Diezani Alison-Madueke, the Petroleum Resources Minister. There was an advert for the project which we applied and was prequalified. After that, we scaled through technical inspection and today the first phase of the project has been commissioned. What were the initial challenges? Quite frankly, it was challenging initially especially from the banking sector. In 2009 when the project was awarded, there was a global financial challenge as you are aware with some banks going under. There were consolidations, mergers and all manner of permutations taking place. This was the major issue we had to grapple with. This and other issues compelled us to think outside the box. We asked ourselves, if the banks were not available would the project get stuck? We answered No. We started on our own by going through the engineering in-house, domiciled it and brought in professionals who were 100% Nigerians. After the design, we sent it to our client for a review which they did and reverted back to us. We started construction and we got to a stage where NNPC (Nigerian National Petroleum Corporation) had to come in, having seen the challenge we were having with the banks. We were able
to make marginal progress and when the banks saw the progress we had made, they stepped in. In your opinion, why were the banks somewhat reluctant initially? I think they may have been apprehensive because this kind of plant had never been built in the country and more so by an indigenous company. It had always been done by multinationals. Since the project runs in millions of dollars, they may have been concerned about the risk factor, but I thank God for how things later turned out. When they saw the performance and the level of integrity
Osawaru
that was involved, they stepped in and began to aid the project. Also with our own project cost from other multinationals, we pooled funds from the profit we made from other projects to get to this stage that we are now. I can tell you today that it is divine, and it is a success. From the foundation to the erection and commissioning, it has been awesome experience with our local content. It takes divine inspiration to be able to dig deep into unique things. In the field of Engineering, the older you get the weaker you become. So in order to keep in tune with the time you need to be vibrant and innovative. You need to take up day-to-day challenges because new technologies emerge daily, weekly and monthly. You will see different manufacturers coming out with different concepts on how to add value and you have to be abreast with these technologies otherwise you will fizzle out in this rapidly changing century. Did your background as an oil or petroleum engineer influence your participa-
tion in this industry? Yes exactly. My background is Process and Instrumentation. That is backbone of this type of project and it has been assisting me tremendously. How long have you participated in the industry? I have been in oil and gas industry since 1986. You made mention of local content. Is it in all areas, or which specific areas do we have great efficiency as far as Nigerians’ participation is concerned? Which area do we have reasonable involvement? Deficiency as the case may be is mostly in the area of seeking finance for projects. For know-how and professionalism, we are proficient; Nigerians are near perfect because we have the core competencies. We have what it takes in all areas of engineering, it is wonderful. Nigeria is a place where you have the best hands in engineering but what we still lack is that our banks have not been able to put a structure in place to finance huge projects in this sector. For example, in the Western world, they can give you as low as 2-2.5 per cent loan facility for a range of 3, 5 or 10 years. But in our own industry here, our banks do not give you more than 45, 30, 60 days. Then for long range financing, 9 months or 1 year maximum. And if you put that into the industry, it takes a minimum of 1 year to do your engineering, procurement and freighting to site. That 1 year should have been for moratorium which would allow you bring in your equipment especially the ones you don’t have locally and would need to import as well as other foreign procurement you may need to get. So for all of these, it takes a minimum of 1 year. So, the main area of challenge or deficiency in the industry is in the area of finance. Why are there not many Nigerian companies involved in what you are doing? Or how can this trend be reversed so that more Nigerians can be involved? In the first instance, it takes a strong mindset. It is capital intensive to drive into the core oil sector. Like the oil and gas industry, it costs more to build a gas plant than to build an EPF. To build a flow station is cheaper than to build a gas plant. Gas plants are built to precision, there are no shortcuts. Everything BrandiQ 61
you do must be to specification and the cost to execute it is high and for a bank in Nigeria to single-handedly give you a facility of millions of dollars, is not easy to come by because these banks have also not gotten that capacity to lend such an amount. Secondly, it is difficult even for people with courage to face the challenge of bringing in the engineering technology in the oil and gas industry to Nigeria because of cost. Their strengths often fail because if you have a mindset to go into a certain business and you cannot afford 30% of the cost, you struggle. First the bank will tell you that we are going for equity participation, say 40%, the least is 30% or 20%. If you are asked to bring 40% of $200 million, for instance, you know it is a massive challenge. All these factors have curtailed the speed we would have achieved in this project. Also, the government on its own is an institution to contend with before you can play at that level. The government also has not given a free hand through the oil and gas industry bill for people to really participate. Building a corporate brand is not always easy, especially a wholly Nigerian brand, given the circumstances in Nigeria. What are some of the challenges of getting the right people to start this company? Having worked in the industry and gathered experience for years has been quite helpful in this regard. While working with Shell I encountered what we called Shell scholars. Shell has the ability to check how sound their staff are. Who is qualified? Who is trainable and who has enough integrity to acquire this training and come back and add value. Most of us had the opportunity to be trained. Through all these training, we had colleagues that were also trained in different capacities. They have the know-how in different areas. Also having worked in the industry for 20 years, I know personnel that are also as good as I am and also can take risks. So when this company was formed we
BrandiQ 62
started with flow lines, pipeline, leak repairs, then facility revamping to build capacity. Having done this for several companies with the young engineers who have worked with me over these years and with those that I also trained, we came to the conclusion that it would take Nigerians to build Nigeria. That was how I went about recruiting the caliber of Nigerian engineers you saw on site, great engineers they all are, I’m proud of them. I reasoned with myself for a very long time and said if we take this project outside, we would transfer our financial endowment outside. But if we are able to domicile all your engineering here, and do all it takes - although there might be one or two challenges - but overtime, we would get it right. In that light, my experiences in the oil and gas sector gave us an idea on how to go about the project and get it right. I have worked in ELF flow station where we do EPF; we produced crude and control gas for utility consumption and flare. I was working there when we started the foundation of Obito Gas Plant from concept to commissioning. All these experiences I garnered over the years helped with the Oredo IGHF. We understand that the plant just commissioned is part of the NIPP project. Could you throw more light on what it is all about? The Federal Government of Nigeria has given a directive to provide energy for the country so that businesses can thrive. The government has said it is going to put in place two tiers of energy sector, the NIPP and the gas providers that would produce the gas which they would use to fire the turbines. That is where we belong. We are the ones to build the plants that are going to provide the gas specification for which the NIPP is going to use to fire all their power turbines. What we have just done is to produce the gas that is going to NIIP to use to fire the turbines. They build gas turbines to be able to generate elec-
tricity which is sent to the national grid. The gas turbine is very critical in energy generation. We are the foundation of the electricity energy. We build the gas plant. We produce gas to specifications for the turbine they have built to be able to generate electricity. The gas produced has a specification. The one we are producing now is rich gas for them to be able to produce electricity. The specific is methane gas to enable them drive their turbine. NIPPs have their turbine and their pipeline networks. The Nigerian Gas Company (NGC) is the sales outlet for this gas. They market it and have their customers at various levels. Following the recent commissioning, the Minister specifically commended your brand for performing beyond expectations. How do you feel about this? I was excited because at that stage. I wanted the world to see what we have done if it meets the specification in the global industry. From the outset, we have agreed with our team that we wouldn’t cut corners. Whatever we are going to put here must meet global standards: the engineering core standard. What people were expecting to see was the other smaller EPF you saw before getting to our site. It baffled them to see the alignment that was taken, the precision, the leveling and the height and the erection of that flare. In all that you see there, there was no Whiteman involved; it was wholly indigenous. If you are privileged to see the pictures from the beginning when we started coupling, dismantling and erecting, you will not be left with any doubt that it is purely Nigerian content. When the Minister made the commendation, it gladdened my heart. The team I have put together has delivered and we can also do greater projects if given the opportunity to add value to our nation. This same plant would have cost the nation four times the amount awarded if it were given to foreigners to handle.
Most indigenous contracts are always controversial in nature. But yours was awarded, commissioned and subsequently commended; how did you achieve that? It came to be because we have the belief that for every glory, there is a story. When issues are resolved you always have a clear direction. If we have challenges, we call the whole team together and address them. It is called IGHF because all members of the team were integrated. We had issues from the onset because the engineering concept given to us was faulty and we challenged it. We decided to come out with an acronym called IGHF. So we integrated the team together so we can all perceive things the same way. We looked at it as a teamwork and that the project must not fail. We said for every review we are going to do as experts, we are going to tell ourselves the home truth. If you have any questions, raise them. And if it is not okay by us, we would tell you why we wouldn’t take your advice. But if we see that your contribution is correct and makes sense, will adopt it. That was how we were able to mitigate the issue of customer and client challenges. Our greatest challenge came from the banks. The banks wanted to stall the project. If we had waited and relied on the banks, this project wouldn’t have been commissioned. It would have failed. They never believed that the project could be done by Nigerians and that even if it was done, it wouldn’t work. But all that was put to rest recently at the commissioning. Everyone present at the commissioning saw that it worked perfectly. As of the commissioning time, we were using one compressor and were producing 42 MMcsfd. When we use two compressors, we do about 75 to 80 million. We have never gone below 65-75 MMcsfd except if we have production issues from our counterpart EPF who provides us gas. Although the Federal government gave us a target to do 65, we have beaten their projection and are doing 70-75 million. Do you have any mentorship programme? Yes we do and the sole aim is to equip and empower anyone that steps in here. 60% of the people that came here yesterday were nobody. It was 40% that came here to build. If this 40% build and execute without people that would succeed us, then we have not built a plant. So when we came in, we brought in young people. For example, one of them who was formerly a draftsman
is today a process analyst. He is into design, run stream and can even tell you how the plan layout should be. The welders we have today were just roadside welders. But we have trained them beyond that capacity to be able to use argon welding and different types of welding equipment. If we are not here today, these same people may not have had a place to exhibit their professionalism. It is also instructive to note that 80% are from the community where the facility is sited, they were not brought from outside. The agreement we had with NNPC, our company and the community was that they would give us 10 personnel on this project. But as we speak today, we have over 300 from the community trained in various disciplines. Some are in the production crew now running the plant. Some are welders. All these people were retrained to fit into different sectors of the project. Normally in the oil and gas sector, when a company is given a whole project, what you do is that you break your project into phases. Company A, will do electrical while company B and C would do the welding and erecting, etc. But if we subcontract all of these, then our people won’t gain the type of training we want to give to them. We decided to put them into one envelope by training the people doing the job physically. We did not do any sub-contracting. All the people we used are our staff in different professional capacities. We also went to different universities to bring in fresh undergraduates. We brought them in on IT (Industrial Training) to learn engineering processes. We give them practical experiences on site. Those that have so far participated were grateful for the experience. We find out that our universities produce engineering graduates without adequate practical experience which multinationals require before employing them. We are also planning in future to establish a college of engineering. It is our Corporate Social Responsibility project that will assist our engineering undergraduate to have the requisite skill in modern engineering practice in various levels of engineering discipline. Our aim is to ensure that when they are employed and given tasks they would be given less supervision to enable them take right decisions and work perfectly. And when they are eventually thrown into the market, we hope to see that the Nigerian engineering sector grows. If we are able to pull this through, we would have built local experts instead of importing experts from other nations. We would bring
products from our universities here and expose them and make them part of nation building. What is your partnership with the NNPC? Is it in any way conscious of your contribution as far as local content is concerned? Is it doing specific things to ensure you get assistance in that area? When I used the word IGHF, it is to enhance the local content drive because of financial challenges. When this project was put in place, a budget was made available. They cannot just give you the money without something being done, seen and confirmed well done. They have also thought out of the box. We have set a precedent for them. They have contributed and have also been a part of it, because the people in the same NNPC are also Nigerians. The engineers whom they also brought are Nigerians who have worked with us. They saw the challenges we had and also tried to mitigate them. What other things are you doing for the community aside from the ones mentioned? When we began the project, we decided to build 10 classrooms in a school for the community. We started from Primary school because it is the basic foundation for knowledge acquisition. The project has been completed and handed over to the community. We have also sat down with the management team to look at other things we can do for these communities as part of our efforts in adding value because of the cooperation we have gotten from them over these years. You are standing on a strong footing, how do you see Net-Work oil and gas as a brand in this industry? What is the dream for the company within the next 5-10 years? My team and I have put a structure in place that this company is not just going to live as a 100% local content here. We would also exploit other areas. We have an office in America, Ghana and Nigeria. We intend to use our Ghana office to reach out to other West African countries and use the U.S base to link up with other multinationals and see how we can digress. I can assure you that we have a 5-10 year plan for Net-Work oil and gas to be able to run without issues in the meantime. *(EPF- early production facility) BrandiQ 63
barrel equivalent by the year 2015. Where we are standing today in Oredo covers a bloc of about 460 square kilometers consisting of 3 fields with an average production of 6, 000 barrels per day with more prospects for further development. “The average production from this field in the past 15 years was stagnated at less than 1, 000 barrels per day. This facility also has the capacity to eliminate gas flaring in compliance with the Federal Government environmental requirements. Furthermore, NNPC and NPDC are pursuing with vigour the development of more resources in order to provide gas to Pan-Ocean Oil Company limited to optimize the utilization of their gas plant in Pan- Ocean,” Yakubu also commented. The Managing Director of Net-Work Oil and Gas, Mr. Clifford Osawaru, enthusiastically thanked the Honorable Minister for Petroleum Resources and the GMD of NNPC for giving the company the opportunity to prove that Nigerian companies have all it takes to excel.
Mr. Clifford Osawaru
“I want to express my appreciation to President Goodluck Jonathan, the Honourable Minister, the GMD of NNPC and the Federal Government for giving us the opportunity to showcase our capabilities, with this plant. There will be no doubt that Nigerian companies have come of age in the oil and gas sector,” Osawaru said. The Managing Director of NPDC, Victor Briggs, equally said the Oil and Gas reserves in the area had increased by almost 400%. Briggs said: “Today, NPDC has two rigs on location. One completing the Oredo South well, in Oil Mining Licence (OML) 111, which is part of the 100 MMscfd. The other rig is in BrandiQ 64
part of her Corporate Social Responsibility (CSR), to ensure increased local content especially in the area of manpower development.
Victor Briggs
our off shore location in OML 119. By the end of 2013, a total of 4 drilling rigs, that is 1off shore, 2 lands and one swamp, will be working for us. We are set to meet the target that you have set for us for attaining 250,000 barrels per day of oil production by year 2015.” It would be recalled that the Nigeria Oil and Gas Industry Content Development Act 2010 was signed into law by President Goodluck Jonathan to increase Nigerian participation not only in oil and gas industry, thereby increasing Nigerian participation in the upstream and service sectors of the Nigerian energy industry but also seeks to regulate support services in the sector as well. These support services include but are not limited to financial, insurance and legal services. The Act establishes the Nigerian Content Development and Monitoring Board with the mandate to oversee the implementation of the provisions of the law. The Act also provides a host of requirements designed to ensure workforce development of and technology transfer to Nigerians. It requires that whenever possible, operators will hire Nigerians. When the operators are unable to find skilled workers, the Act requires that they put in place programs and procedures for training workers and make periodic progress reports to the Board. In addition, the Act mandates that operators provide a succession plan for all positions filled by expatriates, except for five percent of management positions, which may be permanently held by foreigners, with the plan that Nigerians take over after a maximum of four years of apprenticeship under incumbent expatriates. Not only has Net-Work Oil & Gas embraced the Gas Industry Content Development Act, the company has gone many steps ahead, as
According to Osawaru, “Our universities today produce engineering graduates without adequate experience required by multinationals and large oil firms if they are to get jobs. So we have gone to different universities to bring in undergraduates for industrial attachment (IT).” On the benefits accruable to such young Nigerian professionals while on IT with his company, he added: “We give them practical experiences on the site. We were so excited over the results we have seen. So we are also planning something more permanent, a college of engineering. This means after a student has gotten his or her B.Sc. or BEng. in Engineering, he or she can come to our college of engineering for adequate training in various areas of engineering. When these people are employed, they would need less supervision; they can take the right decisions and work perfectly. And when they are deployed to the market, we would see a large crop of Nigerian engineers in the industry. We can then have the capacity to build instead of importing experts from other nations as we do now.” Another thing worthy of note in this project is that the execution was with the highest level of global safety standards. The Safety Officer, Hope Aki, also said: “We have spent about 1 million two hundred and forty man hours to achieve this, and all this was LTI (loss time injury) free. Our safety concern here is very high. We were able to do it fatality free. If you want to carry out an operation that involves a very high level of hazard, you have to consider first the safety of carrying out that operation. Would I be exposed to hydrogen sulphide, a dangerous gas which can kill in less than 5 minutes? We are lucky that the crude we produce here does not contain hydrogen sulphide. The maximum level of noise anyone should be exposed to is 80 decibel; anything beyond that would result in the person getting deaf and nobody wants that. That is one of the reason we use ear protection. Safety officers in the oil and gas sector are specially trained to ensure that nothing is compromised.”
SPECIAL FOCUS
Nigerian Engineers Built Virtually Everything at Our New Gas Plant’ ‘
- Adeyanju Emmanuel Abiodun, Project Manager performing creditably well when we compare ourselves to what obtains globally. Like how many plants of this nature does Nigeria need to eliminate gas flaring? We would need quite a number of them. We have some wells that are fully gas wells which are more or less money generating investments for the government. By the time more of this plant comes up, we are going to have a reduction in gas flaring. As soon as we are done with this facility, you would only be seeing some candlelight flare. We are also moving towards being eco-friendly.
The Project Manager of the Integrated Gas handling station, Emmanuel Adeyanju, gives some insight into the application of local content in the operations of a plant constructed by Network Oil and Gas, at Oredo, in Edo state of Nigeria. Excerpts: Information on the new project This is actually a gas handling facility. At this moment, we get gas from the flow stations; we compress and send these products into a pipeline for bio-projects. This facility has the capacity to do up to 100 mm scurf of gas and an expanded capacity of 200mm scurf. Presently, we are taking gas from the flow station. We compress the gas, and send to the pipelines from where we now feed various power generation systems. The gas we are getting here can fetch us at least 300 megawatts of power which will go a long way in improving power supply if added to the (Nigerian) national grid. How many of this kind of plants do we have? There are very few of them in Nigeria, but this is the only one that was constructed and operated by indigenous engineers. We designed this facility here. Virtually everything here was done locally. That is why we say we are Proudly Nigerian. We can beat our chests and say this facility is 100% Nigerian. Our versatile Managing Director has a strong belief in youths. He then got good hands locally to do the job. We are
After the commissioning of the plant, would Net-Work continue to maintain the facility or leave it for the government? Our company is an EPICOM company. We engineer the units. We procure the materials for the construction. At the moment, we are operating the facility. So, we are equally maintaining the facility. The units are being operated by our people. The equipment has the capacity to work for 5, 000 hours non-stop. Thus, we would just need to carry out normal preventive maintenance which would still be done in-house. We are still going to continue with another phase of the project where we would now get LPG and natural gas as the next product. So, we would still continue. What they get from us now is actually an associated gas which is a mixture of gases. Before it is being fed into the gas turbine, the NIPP (Nigerian Independent Power Projects) engineers might need to do some gas conditioning. How many Nigerians would gain employment through this project? At a point during the construction, we had a work force of about 300 Nigerians. But presently, we have about 80 workforce strength. But when we continue with the other phases, we would have about 300 comprising both direct and indirect staff. We also have a very good relationship with our immediate community. At the moment, we have slots for the community people. We want to help the community by building capacity within the community so that as soon as we are done with this project, they can raise their heads and stand tall anywhere. The company has been able to assist the community with some developmental projects that would benefit it. We are doing as much as we can to make sure we carry everybody along. Apart from gas handling, which other project does your company do? Like I said earlier, our company is an all-inclusive engineering company. We have the capacity to design any oil and gas engineering facility, even refineries. We can construct and build. We are on the ground and we believe we would continue to get better. BrandiQ 65
DESTINATION BRANDING
Carnival Calabar: Canaan Street
Party Expands By Ntia Usukuma
O
ne of the perceived highpoints of destination branding efforts is when the destination itself becomes a huge attraction even for the local people. The benefits that accrue to the destination brand in question include financial gains, image enhancement, investments and brand loyalty. The 2012 Calabar carnival has been described as a great spectacle. More than any of the previous versions held, the 2012 carnival, brought the event to tremendous BrandiQ 66
limelight both locally and internationally. The annual event has thus earned the Cross River State a reputation as not just a destination of choice but also a hub for tourism and hospitality which was the underlying motivation for the pioneers of this event when it began in 2004. Carnival Calabar also tagged: “Africa’s Biggest Street Party”, is a part of the vision of making Cross River State of Nigeria the No. 1 tourist destination for Nigerians and tourists from all over the world. The carni-
val which runs through the last month of every year promotes the cultural wealth of the Nigerian people while entertaining the millions of spectators within and outside the State, and boosting the Nigerian tourism industry. The carnival is a unique display of the African heritage, showcased through music, dance, drama and visual creativity which are all reflected in the designs of floats, costumes and make-up.
D E ST I N AT I O N B R A N D I N G
The main carnival parade which takes place on the 26th and 27th December each year is the highlight of the 32-day Calabar Festival which runs from 30th November to 1st January. The Carnival is the largest cultural festival in Africa with 50,000 costumed revelers, 2 million spectators and an audience of over 50 million television viewers on the NTA Network, NTA International, AIT, CRBC and Continental TV (African Magic, Channel O and MTV Base). This year, there was a dedicated channel on DSTV to the delight of the international audience. Each year, there are 5 major competing bands and 10 non-competing bands. The major bands comprise approximately 10,000 revelers each, including up to five kings and queens wearing large-scale costumes that interpret the annual theme and set the tone for the other outfits. Sections of these costumed revelers create a riot of colors and sparkle, along a 12km route accompanied by live music, DJs, welldecorated floats and steel bands. The Carnival parade terminates at the UJ Esuene Stadium which is the final adjudication and end point of the competition for ‘Band of the Year’ in various categories. The competition attracts additional 15,000 seated spectators and 10,000 others in and around the stadium, as well as millions of TV viewers. The Carnival Parade is the climax in the potpourri of events offered by the Cross River State Carnival Commission. Other exciting events include essay competition for secondary and tertiary institutions, Carnival Calabar football competition(The Carni-Cal Cup), Traditional drumming, arts, crafts and food festival, Adults’ and children’s dry runs(the dress rehearsal for Carnival), Carnival Calabar queen pageant grand finale incorporating the Mary Slessor Golf Charity Dinner, Children’s Carnival and Carnival
Calabar Adults Costume Parade.
Resort, Marina Resort.’’
The carnival has also become a huge and increasing attraction for both leading and emerging brands in the country. These brands see it as an opportunity to align their businesses with the event.
Having been economically disempowered with the loss of her 76 oil wells, the state government has since turned the attendant economic challenge into an opportunity by looking inward and harnessing the vast tourism potential that abound in the state.
For the first time, the Calabar street party attracted the presence of the ever growing South Korean entertainment and culture, popularly referred to as Korean wave. The Team was accompanied by the Director of Korean Cultural Centre Nigeria - Mr. Kwon Yong. The Trinidad and Tobago steel band also performed impressively at the event.
This explains why no stone is being left unturned by the government at ensuring that all that is needed to bring about a memorable carnival is put in place. As part of government’s deliberate policy, all streets in the state capital are swept and decorated; lawns are mowed, buildings given added gloss.
The 2012 Carnival Calabar also witnessed the participation of troupes from some African countries, including Ghana and Congo DR. The most scintillating appearance was that of the “Samba girls” from Brazil. The Brazillian troupe created wild excitement as they jiggled creative dance steps in their G-strings. The Chinese contingent with their dragon dance could not make it to the event, after issues bordering on logistics made it impossible.
Every year, the fever of Calabar Carnival spreads like a virus and morphing gradually into a contagion. Nobody is left behind in the carnival train. Even conglomerates and multinational companies such as First Bank, Guinness and Dangote Group, have stepped up their level of involvement and sponsorship of Calabar Carnival. It is this kind of fervour that has come to define the warmth, hospitality and tourism culture of the state.
Obviously, the growing reputation of Carnival Calabar has been the pull, the reason why several bands, even from outside Nigeria, were attracted to the Calabar street party in the last year.
Speaking on this year’s edition of Calabar Carnival and what makes it unique, Special Assistant and Chief Press Secretary to Governor Liyel Imoke, Mr. Christian Ita said: “The uniqueness of this year’s event is that while it is still called Calabar Carnival, the focus of the government under Governor Liyel Imoke’s administration is to make the entire state a tourism destination. So it is ‘Destination Cross River State’. In other words, this administration is taking the scope of the carnival beyond Calabar to include the entire state. It is a deliberate policy of this administration to consciously market Cross River State as a tourism brand to the whole world.
Chairman of the Carnival Commission, Gabriel Onah, has listed the enormous advantages of the festival. He said the yearly event had boosted the state’s economy. The state economy, Onah added, had enjoyed a boost as a result of the carnival, saying, “The State Government has employed this festival/ carnival over the past years to drive its tourism efforts and provide exposure for its vast tourism sites and infrastructure such as the Obudu Ranch Resort, the Tinapa Business
BrandiQ 67
POLITICAL MARKETING
What Will The Political Terrain in Nigerian Look Like in 2015? By Agbo Agbo
The politics of the first and second republics were perhaps the most exciting in Nigeria’s political history. In the election of those periods, there was a clear-cut distinction between the political brands and their respective ideologies and manifestoes - stating in clear terms what the parties intend to do for the Nigerian people. The ideology and manifesto of the Northern People’s Congress (NPC) was different from that of the Action Group, just like that of Northern Element Progressive Union (NEPU) was different from that of the National Congress of Nigerian Citizens (NCNC). This development was replicated in the second republic. The ideology and manifesto of the Unity Party of Nigeria (UPN) such as “free education”, etc., wa s different from that of the National Party of Nigeria’s (NPN) “qualitative education” for instance. The same cuts across the other political brands, Great Nigeria Peoples Party (GNPP), Nigeria Peoples Party (NPP) and Peoples Redemption Party (PRP). Though, to some extent, the ideologies of the military-guided third republic parties, the Social Democratic Party (SDP) and National Republican Party (NRP) were equally distinct –a little to the left and a little to the right - but it was imposed by the military and the politicians were whipped into line to join any of the two existing parties, depending on their ideological leanings from previous experiences. It is instructive to note that, of these three experiences, it was only in the third republic that the principles of integrated marketing communication were deployed in campaigns to market candidates as political brands and “products” to Nigerians. Remember the “MKO is the Man” and BrandiQ 68
“Nigeria SAI (SAY) Baba” campaign copies and jingles of 1992/93? They were deliberate, concerted and planned concepts aimed at “selling” Late Chief MKO Abiola and Ambassador Babagana Kingibe, first to the Social Democratic Party (SDP) and later to Nigerians. The political landscape is already abuzz with political calculations, permutations and campaigns ahead of the 2015 elections. A new political organisation, the All Progressive Congress (APC) has been formed by four political parties, the Action Congress of Nigeria (ACN), Congress for Progressive Change (CPC), All Nigeria Peoples Party (ANPP) and the All Progressive Grand Alliance (ANPP). Political analysts believe that if this party is registered by INEC the country may end up having a two party system since most of the parties in existence are just there by name. What impact would political marketing and communication play? What is political
marketing in the first instance? Will it be business as usual for election riggers? Are we going to see a return to the third republic scenario where marketing campaigns were carried out to position the respective brands? Are we going to see the re-enactment of internet campaigns akin to that of Barack Obama of the US in Nigeria? Will Nigerian youths, who form the majority, participate in the electoral process this time around? Do they even believe in the nation’s electoral process? Political marketing and communication is now a sub-theme of mainstream marketing, an integral part of Political Science and Mass Communication. Martin Harrop perceives political marketing as being not just about political advertising, party political broadcasts and electoral speeches but covering the entire area of party positioning in the electoral market. Dennis Kavanagh in his 1995 article “New campaign communications: consequences for political parties” sees political marketing as electioneering, i.e., as a set of strategies and tools to trace and study public opinion before and during an election campaign, to develop campaign communications and to assess their impact. Lock and Harris point out that “political marketing is concerned with communicating with party members, media and prospective sources of funding as well as the electorate,” while Dominic Wring defines
POLITICAL MARKETING political marketing as “the party or candidate’s use of opinion research and environmental analysis to produce and promote a competitive offering which will help realise organisational aims and satisfy groups of electors in exchange for their votes.” Aron O’Cass argues that the use of marketing “offers political parties the ability to address diverse voter concerns and needs through marketing analyses, planning, implementation and control of political and electoral campaigns.” A single thread running through these definitions is the desire to communicate and reach the electorate through legitimate means and strategies. Similar to the challenge that companies have in branding their products and services in the commercial marketplace, governments, political parties and campaign organizations all rely on similar theories and strategic tools to carve out successful niches for their leaders. Political parties are like corporate brands that offer an umbrella of predictability of performance - just as a corporate endorsement does for a new product that enters the market. Candidates become the political brands of a political party. So what has branding got to do with this? Branding is all about appealing to peoples’ dreams. Politics is all about selling hope to a people. It has become very difficult for Nigerian politicians to communicate to their respective target audiences without a clearly defined brand image. We live in an era where politicians manufacture their images through clever branding strategies. These images are sometimes altered overnight because of unexpected events and uncontrollable forces that may take place around the country. Theories and models that explain how products and services are branded are sometimes necessary when one attempts to make the leap to the political marketplace. Nigerians, like most people around the world, were held spellbound by the exciting and electrifying development that led to the election of President Barack Obama as the first black president of the United States of America. The fact that Obama has taken what we thought we knew about politics and turned it into a different game for a different generation is no longer news. What has hardly been examined is the degree to which his success indicates a seismic shift
on the business horizon as well. Politics marketing, after all, is about marketingabout projecting and selling an image, stoking aspirations, moving people to identify,
evangelize, and “consume” a “product”. The promotion of the brand called Obama from 2008 is a case study of where the American marketplace - and, potentially, the global one - is moving. His openness to the way consumers today communicate with one another, his recognition of their desire for authentic “products”, and his understanding of the need for a new global image- all are valuable signals for marketers and brand custodians in Nigeria especially as we move towards the crucial 2015 elections. According to Keith Reinhard, chairman emeritus of DDB Worldwide. “Barack Obama is three things you want in a brand, new, different and attractive. That’s as good as it gets”. Obama has his greatest strength among the young, roughly 18 to 29 years old, that advertisers love, hence the notion “the youths are the market”
Obama rose above what he calls a “funny” name, and unusual life story. He also moved beyond traditional identity politics. And now, the new reality he reflects eventually won him a re-election in 2012. Any forwardthinking brand or business would be wise to examine the implications of his ascent through marketing strategies and leadership styles. How does this concern us in Nigeria? It is instructive to note that, it does in a society that many consider to be “politically docile.” The result of a BrandiQ survey carried out in six tertiary institutions in Lagos and Ogun States is quite revealing. The survey conducted with undergraduates from University of Lagos (UNILAG), Lagos State University (LASU), Olabisi Onabanjo University (OOU), Ago-Iwoye, Ogun State, Lagos State Polytechnic (LASPOTECH), Moshood Abiola Polytechnic (MAPOLY), Abeokuta, Ogun State and Adeniran Ogunsanya College of Education (AOCE), Ijanikin, Lagos, showed that Nigerian students have become politically savvy - no thanks to the 2008 and 2012 US elections that produced Barack Obama as President of the US. (See graphs). Belief in the political process 18 16 12
UNILAG
10
12
6
LASU
10
10
8
OOU
8
7
4
LASPOTECH MAPO
2
AOCE
0
Participation in political process 80 70 60 50 40 30 20 10 0
In a research conducted in the US, this generation X and Y Americans (those born from the 1980s) outnumber the baby boomers (those born after WW2 - about 1945) in 2010. They are of different races, but what they share in common are - new media, online social networks and distaste for traditional barriers, such as ethnicity.
17
14
72 60
56
60
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62
UNILAG LASU OOU LASPOTECH MPO AOCE
These future leaders of Nigeria painted a very gloomy picture of the electoral process which they feel is “exclusionist, porous and gives room for mediocrity to thrive”. Some of the undergraduates said they had formed an on-line community aimed at ensuring that they mobilise their colleagues BrandiQ 69
to participate fully in the 2015 elections. It is heart-warming to note that majority of the students surveyed said they would participate effectively in the next election, and that, they believe strongly that the Internet would play an important role in the elections just like it did in the US. According to one of them, “This is an eye-opener of the power of technology which we should not think twice in embracing.” To these students, therefore, they never believed that politics could be this exciting, educative and issues driven. They are thus poised to contribute their quota to the development and enhancement of the political space in the country. To this end, one of the students from LASU said: “Obama embraced the Internet. In the process, he succeeded in converting online clicks into realworld currency: rallies in different locations, videos on YouTube, and most importantly, donations and votes. I am eagerly awaiting the politician that will do that in Nigeria.” On the uniqueness of the Obama example, both in 2008 and 2012 and how Nigerian political brands can tap into it, one of the respondents from UNILAG said “BarackObama.com features constant updates, videos, photos, ringtones, widgets, and events to give supporters a reason to come back to the site. On mybarackobama.com, the campaign’s quasi-social network, Obamaniacs created their own blogs around platform issues, send policy recommendations directly to the campaign, set up their own mini fundraising site, organize an event, and even use a phone-bank widget to get call lists and scripts to tele-canvass from home”. Impact of the internet on politics
people of 18 years and above. You can imagine what that can do to a branded political candidate who understands the new media and how to reach this population through new media.” A respondent as well said the way things are going in the country, especially with renewed interest in politics by the youths, Nigeria’s political landscape may have changed without our knowing it. “Today, you can see youths insisting that they want political reforms so that the right people get elected into political office. They are ready to take their position to the National Assembly and insist that the right thing be done. They have seen what a Fashola can do - thus, they believe that, having purposeful leadership in place is not a mirage after all - that it can be achieved in their lifetime and they are bent on ensuring it does.” Do they think that Nigeria’s political brands can rise to the challenge of selling themselves to the public the way Obama did? One of them said, it’s a matter of strategy and knowing what to do. “How many Nigerian politicians really know what it means to campaign? May be some did before, but definitely not now. Majority of them believe that once they belong to the ‘right’ party, whether they campaign or not, they will win. That was the situation between 1999 and now. But things have changed, that is why a Mimiko, an Oshiomhole and an Obi can campaign and win under the Labour Party, ACN and APGA platforms respectively. It has nothing to do with the party but the personality involved. I am happy that Nigerians are gradually becoming politically conscious.”
90 80 70 60 50
85 80
85 79
69
75
UNILAG LASU
40
OOU
30
LASPOTECH
20
MPO
10
AOCE
0
Another respondent from the same university said: “These are all amazing innovations. There are close to 100 million mobile subscribers in Nigeria out of a population of more than 150 million. Obviously, more than 50 per cent of this population will be young BrandiQ 70
Creative Director of a Lagos-based firm who spoke on condition of anonymity said it is possible to brand and sell a political product in Nigeria, though it may look absurd to some critics. “Who says you can’t effectively brand and sell a Kayode Fayemi, Rotimi Amaechi or Babatunde Fashola, for example? You can effectively ‘sell’ them and people would ‘buy’ them in droves. But, before doing this, all your communication materials must be in sync with the strategic positioning of the
brand in question. It means that first and foremost, your ‘product’ must be good, have the ability to stand the test of time, pass through quality control and must be tamper proof. In essence, your brand must not be tainted by controversy,” the Creative Director said. He noted that, most political party logos and campaign materials in the past were done by amateurs who “dabble” into design and/ or know how to use Photoshop. Campaign materials are something they do on the side. But, what value do amateur materials bring to an overall campaign? “Absolutely none. Look at the logos of the 80 plus parties that we have in Nigeria today, they are all crap. It goes a long way to show you how the minds of the Nigerian political brands run.” “The campaign brand,” he stressed, “is something that needs to have strategy and a marketing plan behind it; it’s not just a logo. The way you choose the people that do your design and branding should be viewed the same way you hire the rest of your campaign staff. You will likely hire an intelligent staff of people with experience and expertise in areas that help you build a strong and smart campaign that will get you elected. The same should be said for the people that create your brand; they should have experience and expertise in design and branding. That expertise will translate into a unique, smart and noticeable campaign that will help you win.” In all these, what has branding got to do with politics? Analysts believe branding has a fundamental part to play. Durojaiye Adebowale, a communications consultant and public policy analyst said, even those who are of the conservative bent still believe that branding and positioning plays an important part in selling a candidate. “If you will recollect, William Rees-Mogg, a well-respected political commentator and former editor of The Times of London was quoted as saying ‘Tony Blair is the New Labour brand. If he is contaminated, the brand is contaminated’. Coming from an ultra conservative journalist goes to show the importance of branding in politics,” Adebowale added. Another communications analyst, Olatunji Akande, observed that November 4, 2008,
will go down in history as the biggest day ever in the history of marketing. Referring to the Obama syndrome, he said: “Take a relatively unknown man, younger than all of his opponents, black, with a bad-sounding name - consider his first opponent: the bestknown woman in America connected to one of the most successful political brands in history. Then, consider his second opponent: a well-known war hero with a long, distinguished record as a U.S. senator. All of these didn’t matter. Barack Obama had a better marketing strategy than either of them: ‘Change’.”
“The irony of Nigerian politics in the fourth republic,” says Dokubo Amachree, a public policy analyst, “is that the political class is bereft of ideas on how to conduct a proper election because of our penchant for and mastery of the rigging process. But I doubt it seriously, if it will be business as usual this time - because the youths are gradually becoming politically conscious. They saw what happened in the US and they have seen the leadership qualities of brands like Fashola, Amaechi and Oshionmole and it has dawned on them that things can actually work in Nigeria.”
What is the big idea here? The big idea here is that a slogan that is short, all encompassing and direct should be adopted by candidates to drive their campaigns. “What was Hilary Clinton’s nemesis? First she tried “experience”. When she saw the progress Obama was making, she shifted to “Countdown to change”. Then when the critics pointed out her me-too approach, she shifted to “Solutions for America”. Her problem was that of inconsistency and lack of a focused direction. Being the master he is, Obama’s slogan for 2012 was “Forward”, he knew too well that he did not bring about the required change Americans were yearning for. Nonetheless, they still saw him as the preferred candidate to Mitt Romney.
He called on progressive political brands to carry out well-thought-out campaigns in the media to intimate the youths with the fact that they have the right to insist that their votes count because the next generation belongs to them.
What was true with Hilary was also true with John McCain. He tried “Conservative” “Maverick” “Hero” “Straight talker” “Commander” “Bipartisan conciliator” “Experienced leader” and “Patriot”. When a campaign can’t settle on a central narrative, it will fail. McCain did settle for a slogan, “Country first”, but it was way too late in the campaign and it was a slogan that had little relevance to the average voter.
President Goodluck Ebele Jonathan
“I will want to see a situation where these progressive political brands will team up with Nigerians in the Diaspora and come out with a comprehensive voter’s enlightenment campaign that will be carried to all the tertiary institutions in Nigeria to educate the youths that they hold the four aces of this country,” Amachree said. Political campaign is a serious and complex business. By using market research candidates can better understand the perception of their voters. For example, when associating brands with the voters of different candidates it can reveal how each candidate is viewed and can also help in developing brand strategies for that candidate. The utilization of media has matured to the point that you now need to have charisma to get elected. Most candidates today are not only unable to impress when on stage, they can’t think on their feet. As Dale Carnegie said,
Asiwaju Bola Tinubu
“If you’ve lived through it, you’ve earned the right to talk about it.” Digital Media is also changing the face of politics. The World Wide Web is a powerful influence on the public’s access to government and its tactics and it gives voters new insight into political campaigns. The behaviour of voters, the efforts of activists to circulate their messages, and the ways in which topics enter the public discourse are all being distributed instantly through new media. Elsewhere, Political Media is shifting the understanding of citizenship in a historical context, promoting an interactive cyber-democracy and growing an online community. Analysts are of the view that political media is in the forefront of the new media, and we in Nigeria should key into it and ensure that it is no longer business as usual for the brand eroding problem of election rigging. With the way things are going on in the country and with the drumbeat of 2015 about to start beating, the question still remains - are Nigerian political actors branding themselves and their parties to enable them “sell” themselves to the electorate? Or are they doing nothing and simply waiting for the time to come to be rigged in as governors, senators, etc? Times are changing and the environment may not favour rigging this time around.
Maj. Gen. Muhammadu Buhari (rtd) BrandiQ 71
photocafe photocafe 2013 Landmark Events
FAYROUZ LOVE LIKE A MOVIE CONCERT
Mrs Opeyemi Ishola, Marketing Director NB, Walter Drenth, Daniel Ishola winner Fayrouz ticket to the love like a movie concert, Nnenna Hemeson-Ifeibigh, Senior Brand Manager
Darey performing
L-R: Mrs. Walter Drenth, Marketing Director Nigerian Breweries Walter Drenth, Kim Kardashian
OPENING OF THE NEW SONY CENTRE, LAGOS
(L-R) Head Customer Relations Sony, Ugoh Anyanwu, Director Sales, Middle East, and Africa, Mukaida Shinya and the Vice President Services, Middle East and Africa, Redington, Sethu Raman at the opening of new Sony Service Centre today in Lagos.
(L-R) Head Nigeria Operation Sony, Vikram Salvan, Chairman Flying Dove Limited, Karan Israni and the Director Sales, Middle East, and Africa, Mukaida Shinya at the opening of new Sony Service Centre today in Lagos.
New Sony Centre, Lagos.
GUINESSS largest Super Eagles jersey
Permanent Secretary, Ministry of Sports, Youth and Social Development, Dr. (Mrs) Awonuga, Representing , Lagos State Governor, Head, Marketing Committee, Nigeria Football Federation, Mr. Deji Tinubu and the Marketing and Innovation Director, Guinness Nigeria Plc Mr. Austin Ufomba
BrandiQ 72
Permanent Secretary, Ministry of Sports, Youth and Social Development, Dr. (Mrs) Awonuga, Representing , Lagos State Governor, Head, Marketing Committee, Nigeria Football Federation, Mr. Deji Tinubu and the Marketing and Innovation Director, Guinness Nigeria Plc Mr. Austin Ufomba signing on the largest Super Eagles jersey at the Teslim Balogun Stadium.
Managing Director Guiness Plc, Mr. Seun Adetu, signing on the largest Super Eagles jersey at the Teslim Balogun Stadium.
INDUSTRY AMAZON
Media Cannot build Nigeria’s Image in Isolation Caroline Okafor
Caroline Okafor is the Head of Corporate Communications at Notore. In this chat with Henry Otalor, she stresses how agriculture yet remains the best way to empower a nation, why brand Notore is passionate about championing the Africa Green Revolution project, the role of substantial women representation in better management and corporate governance, and how she manages the communication channels of Notore - a company regarded as the only producer of NPK fertilizer in sub-Sahara Africa. Foray into sales and marketing terrain My degree was in Sciences but I had always known that I was not cut out to work in a laboratory. I have always wanted to be in the war front - like marketing in a corporate organisation. Marketing is where you make things happen. It is where you test your product, brand and whatever services it is you sell - and get people to buy or to take an interest in you which will be financial and sustained over time. I found out that in all the jobs I have done, there are elements of persuading people about what it is I do and it gives me a lot of joy. Today, as Head of Cor-
porate Communications, my job is to sell my company to the various stakeholders, put them in the best light possible. Therefore, I see myself as someone in sales and marketing, and of course, corporate communication which is a subset of marketing. It is interesting because our job is to dispel rumours were they are, create impression where there is none and sustain positive impression where they are. I have done this job now for six years and it’s has been a lot of fun. I am in Sales and Marketing because it is something I absolutely enjoy doing even if I am not paid. I have found out that every job I have under-
taken has contributed in some way to my being successful in my present job and I believe my experience will count for something when I leave here for some other job. What has been your driving force as Head of Corporate Communications? Six years later, all our stakeholders now know about us very well. In our brand audit. We know that our storyline, our stakeholders are changing and their knowledge about what Notore stands for and does is very clear. Before now, we have only been visible to our stakeholders who are farmers, though BrandiQ 73
INDUSTRY AMAZON we are embarking on a phase that would make the brand visible to not just our stakeholders but the general public. What drives me is the passion that as a brand we have to champion the Africa Green Revolution and because agriculture is probably the best way to empower any nation. It was the agricultural industry that empowered China and today China is on its way to becoming the richest nation on earth, yet the country has overtaken all other nations that were there before her. I believe that if we can focus on agriculture just like China did so many years ago, Nigeria would then be on its way becoming the best nation in Africa, and indeed, one of the top nations in the world - because we have all that it takes to make it happen. We just need to keep talking and pushing until these happen. Tell us some key things about Notore? Notore is the champion of the Africa Green Revolution. It started operations in 2005 with the acquisition of the assets of former NAFCON through a successful bidding section conducted by the Bureau of Public Enterprises (BPE). When we acquired NAFCON, it was completely wrecked. In 2007 we raised two hundred and twenty two million Dollars as well as equity totally about four hundred million Dollars which we used to repair the plant. By 2010, we began the commercial production of Urea which is a very important component of the fertilizers we produce. Fertilizers are of two kinds: Urea and NPK, and the N in NPK is Urea, which means that about 80% of the fertilizers in Nigeria contain Urea. We are currently the only producer of Urea in sub-Sahara Africa and we produce 500 metric tonnes. In today’s corporate Nigeria, more women are assuming key positions both in private and public sectors, naturally considered as the “role for the man”. Do you see this as true or something that has always been? Women are rising to key management positions. It’s not like women haven’t been in the corporate workforce especially since the BrandiQ 74
War World II. It is just that women have not risen to key board management positions. The general thinking in corporate governance now is that management is better when you have women significantly represented. Also, what you did have previously was that women were regarded as the softer issues managers, which means you saw us in Corporate Communications, Human Resources, Administrations, where there were a lot of interactions with the staff. But what you see today is a lot of women rising to technical positions where they are integral in the decision-making processes of the organization which is good. There are so many government bodies and developmental agencies. By the general nature of the women who are able to look at one particular topic from various perspectives, they feel women make better decisions, both managerial and personal than men. What you find previously was that men like to gang up; they like drink and hangout to tell their own stories and feel very insecure when a woman is around. And, for many years they got away with that. I am
dia on the basis that it gets favourable news mentions, is it fuelled by regular gratifications? When I came into this job I was given a job description, and sometimes they can be vague and you have to empower yourself. It is true that some organisations hire someone to write good press releases and give money to pressmen. When you make yourself a brand (by the way), a brand is a promise to all its stakeholders. Therefore, if all you do is to consistently chunk out money to pressmen, if your brand were true to its promise it will be exposed. Ideally, a corporate communications department should manage perception of the brand to all its stakeholders and stakeholders. Not just the people who read the newspapers, you have your staff, your board, your bankers, your market and government. Therefore, if different stakeholders have a different perception about your brand, then there is a problem. I think if giving money to press men is all an organisation does, then it is not a brand. Have the media been fair in reporting Nigeria’s Image? We must understand that sensationalism sells the media whether social, print, broadcast or online. People want to be entertained while they are informed; this is a trend that has come through time. Therefore, a journalist
whether local or international, wants to report something that is sensational. If we view it from the international press, Africa has a history of oppression depression, poverty, of disease, of everything negative, and they want to continue it that way because that is what the world sees Africa as. If the international press reports a positive story on Africa, it is probably few and far between, as you know when the editors sit to Caroline Okafor meet and tell the story, they look for the sensational angle and for glad that the situation is changing and they Africa, sensational angle is equated to be are giving more opportunities to women to poverty. If we understand the international be part of those decision-making processes media then, we can understand the way they by these companies. It can only serve us bet- report us up till now. Yes, the media is a key ter and Nigeria can be better for it. tool to repairing or building our image. But the question I ask the media that are supDepartment of Corporate Communica- posed to help build our image, do they have tions is considered a friend with the me- the correct support structure? Just like we
INDUSTRY AMAZON individuals are to be proud of our nation, do we have the correct support structure that enables me to be proud of my country? Do I feel I have the right leader? Do I feel I have the right infrastructure? Do I feel that the country cares for me? If these questions cannot be answered, why then should the media now be taken in isolation? Yes they are an important medium –‘the pen is mightier than the sword’ but they are also part of the people who the country should take care of. I think it goes beyond just saying that media is a powerful tool in improving our image. We need to go back to correct the root cause rather than the symptoms. Sensationalism is a symptom and not the root cause. What have been the challenges of promoting the image of brand Notore? First, we must understand that agriculture is not well-appreciated in Nigeria. In fact, when individuals use some local slang on the street to abuse people, they use the word Agbe, meaning farmer. Coming into a sector that has not been well-appreciated by Nigerians has been challenging. You must also build your brand locally before you go globally. And we have said that we are champions of the Africa Green Revolution. And if you take the fact that, one out of every four Africans is a Nigerian, there is a lot of work to be done at home. Since the organisation started, our main focus has been to develop the respect for agriculture as a business in Nigeria as well as respecting our company as a major developer of agriculture, and significant contributor to agriculture in Nigeria. Of course, it has been much easier with the farmers because the farmers understand and respect the value of fertilisers and improved seeds which are our primary business. In general, the Nigeria landscape has been quite a challenge persuading Nigerians that agriculture is a profitable business. Notore is in the right industry, and it’s been growing from strength to strength. It can only get better. From ECOWAS down to the Congo, down to Southern African, we are the only ones that produce Urea. Why has Notore not been visible in the media? Is it because of the monopoly that Notore enjoys? Obviously Notore is not a monopoly because, anybody can import fertiliser into the country. There are no restriction, no charges, no levies. Even now the government has
become more and more supportive for those who have stated they want to go into fertiliser product. Nigeria currently has a combined usage of one million metric tonnes of various fertilisers. But we have the capacity to consume ten million because Pakistan, a country that shares similar characteristics: in terms of, population and arable land like Nigeria, currently uses twelve million metric tonnes of fertilizer. They are about one hundred and seventy five million people, while Nigeria has one hundred and sixty five, Pakistan has forty percent arable land, Nigeria has forty arable land but uses twelve million metric tonnes of fertiliser while we use one million metric tonnes. So you see there is so much opportunity for growth. Anybody can import fertiliser and sell. We do not agree that we are a monopoly; yes we agree to have an advantage because we produce locally but not a monopoly. Also, we don’t believe that we are not a well-known brand because it is our strategy to reach the farmers first-they are our primary consumers -they know us very well across Nigeria, except you are not a farmer. The FGN recently announced it would give out mobile phones to farmers worth 1billion Naira to ensure that the information meant for farmers gets to them directly. As a corporate communications person, do you view this as a good strategy? It was an unfortunate PR blunder in the midst of great news. It was wrongly presented and very wrongly received. There is a lot more the Federal Ministry of Agriculture is doing, but one aspect of the thing was highlighted. Suffice it to say the minister has tried to correct the impression of course. With the power of the first impression, the people are not listening to the minister’s rejoinder even when he screamed himself hoax, saying that was not what was said but nobody is listening. What everybody wants to hear is that government is spending N6billion to acquire mobile phones. Really, what a PR blunder! The fertiliser subsidy exercise is a very complex exercise made of different aspects of the economy converging on the ability of a farmer to be able to get his subsidy directly. This is the first time our government is trying to give a subsidy to the farmer on the street directly. It takes a lot of education, communication, and persuasion which I don’t think was effectively done. To embark on an exercise like that you need to
hire the experts who will find the best way to communicate to those concerned and the larger public as you execute this kind of project. Therefore, that sadly was missing in the whole project. And don’t forget that some people who don’t want the government to stop the fertiliser - because they stand to benefit from the present system and so they cash in on any little opportunity to discredit what is being done by the government. They will take advantage of it. Now what the Federal government is saying , is that they will no longer buy fertilizer, rather they will allow fertiliser producers and fertiliser importers to go and buy and sell, just like soft drinks being sold in the corner shops. The retailer who runs a retails shop can also put 1 kilogram in his shop and sells it. Before now, the government would spend billions of Naira supposedly importing fertiliser, because of our corrupt practices at least half of that money would not be used to buy fertiliser at all, and the other half would be used for logistics and administration of procuring and distributing the fertiliser. When the fertiliser finally came between 20 and 25 percent of the total amount budget even at that, rent-seekers would take it up and it would not get to the poor farmers in the village. What this government is saying is that anybody can sell fertiliser but you the farmer register with your phone, have a bank account so that you can be traced. Be a member of a cooperative. Your brand projections for 2013 We will still be riding on our practice of think global but act local. Our products are sold global. Nigeria is a one-season farming country and so during the dry season, we find ourselves exporting some of our products and they are internationally accepted. We have always had an attitude of international best practices. As regards our communication, we try to ensure that whatever we produce, communication-wise, meets international best practices. The resource you have determines the strategy you will use. In the first five years, we have used our resources in the best way possible to communicate to our primary stakeholders who are the farmers. After five years and successful production for two years, we are going to be expanding our focus and speaking to the general public.
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ENTERTAINMENT DIGEST
With Lean Resources We Do Magic in NollywoodEmen Isong
It is a well-known fact that it requires a measure of professional decorum and intellectual finesse for a woman to stand out in a typically male-dominated industry. In this revealing interview by Abiodun Obisesan, ace scriptwriter and producer, Emem Isong, shares her recipe for success in the Nigerian movie industry, Nollywood.
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E N T E RTA I N M E N T D I G E ST You started scriptwriting in 1994. Ever since then, you have produced scores of prolific films which have earned you a pride of place in the Nigerian Nollywood industry as one of the best. How did you get here? Well, I will say hard work and determination. Also, passion is my mainstay as I love what I do. I love writing, creative activities and producing things. It was very challenging at the beginning but I thank God that it is getting better now. Initially, it was more like a trial-and-error activity. Originally, I went to computer school to acquire more knowledge and later worked in a bank. I was in the Banking sector for three years before I decided to call it quits and do a film with a late friend of mine, called ‘Jezebel’. I wrote it in English, co-produced it, but it was actually acted in Igbo. However, my first solo effort was ‘Breaking Point’ in 1996. It has been challenging and adventurous, but it has been worth it all the way.
Nollywood industry has grown in leaps and bounds. Apart from the widespread report that Nollywood industry is the third largest film producing industry globally, what other tangible features stand the industry out from its counterparts elsewhere? I honestly do not think that other film industries like Hollywood work tirelessly as we do in Nollywood. This is because we work under extremely demanding conditions. A lot of these developed film industries across the world can never thrive the way Nollywood is presently doing in Africa. Professionally, we are doing quite well; although, there is still room for improvement. We do magic in Nollywood with very little human and capital resources at our disposal. Most of your films and by extension, others produced in Nollywood are split into Parts 1, 2, even sometimes Part 3. Why? It is more of a marketing strategy and this is not only peculiar to us here in Nollywood
What is your impression about the Nollywood? Nollywood is evolving. It started like a joke. Some of my colleagues would say that Nollywood was an accident; we just stumbled on it. A lot of us had our fears and concerns because when we first started the practice, it seemed like a huge joke. For early starters in the Nollywood industry like me, money was not our motivation. It was about passion. We made a lot of mistakes and learnt on the job, but now it is getting better. There is much professionalism in the industry today. Players in the industry are acquiring more skills, study to upgrade themselves. For some, Nollywood is a huge business opportunity. Bankers and investors are cashing in on the business prospect in Nollywood. And let us not lose sight of trickling effects of job opportunities in Nollywood. The technological improvement of contemporary film production has developed from VHS cameras, celluloid, Beta Cam to digital camera, MMM. Nollywood has come of age and the industry can only get better for all of us. Also, the actors that we have today deliver top-class roles in short periods. Sometimes, they get scripts in weeks and are expected to Emem Isong perform magic. The entire arm of the
alone. Other film industries also employ this marketing strategy. Some foreign movies are in seasons, so why should Nollywood be different? However, I do not subscribe to this trend of breaking movies into parts or seasons. I make my films in Parts 1 and 2; now on DVD and sometimes deploy the cinema as a touch point, too. It is obviously a marketing strategy. It all depends on the individual and I cannot speak for other film producers in the industry. Apart from societal developments, what inspires you to write? As a film maker, entertainment forms the bedrock of my film productions. Primarily, I want to inform and educate my audience. However, entertainment is what drives my film productions. If you check my movies, for instance, they have a great entertainment value. I basically make movies for relaxation. Nigerians work so hard and are under stress. So I try to make movies that people can enjoy. No doubt, there are morals in my movies and sometimes, I do make advocacy movies. But primarily, my films are purely entertainment-oriented. In essence, my brand in film production is entertainment. Once in a while, I do films that would promote the culture of my tribe: language, dance and aesthetics. They may not be contemporary but they reflect and showcase our traditional values to the outside world. In terms of the erosion of our African cultural values by Western values, I would say that the world is now a global village. Cultures are being intertwined. Like crude oil, we have to preserve our culture. However, this does not mean that everything will be set in the format of olden days like the epic movies would like us to believe. Epic movies are good but we do not live like that today. We have to make movies about our environment and what we do. I do movies in my language more often to promote the speaking of indigenous languages. Today, there are homes where children cannot express themselves in their mother tongue; and that is a clever means to bridge the gap. Nigerians living in the Diaspora also need this kind of movies to understand their language. But I do more movies in my language because I believe in everything African. BrandiQ 77
N O L LY W O O D D I G E S T However, every now and then I try to inject my African perspective into global issues. There was a time I did a movie about the African viewpoint on the issue of adoption. But as a filmmaker, my brand of production is for entertainment purpose. What are the biggest challenges facing the industry today? Piracy is the biggest challenge facing this industry. Piracy is a chaotic distribution of the system. Distribution is a major problem right now. We make movies even if we don’t have enough cinemas. The challenge is not necessarily funding; even if you get the fund, you cannot make returns on investment if the endemic challenge of piracy remains unresolved. Hence, we must tackle and resolve the distribution problem; then we can smile. If you make a film and you cannot boast of selling a hundred thousand copies in a country of over a hundred and fifty million people, then there is a problem somewhere. We hope that the government can come to our aid but more importantly, Emem Isong industry players should come together and find a way forward. Although the Guilds have been talking about it, more importantly I want to suggest that we should have a coalition of actors or lobbying group that will come together and put forward a bill to be passed in the House of Representatives to formulate a more stringent policy against piracy. I believe that we should explore all avenues to tackle this menace. I am a core filmmaker and I know that beyond other challenges facing the industry, piracy is the ugliest. More so, there are other issues like premature taxing of the film industry. When a filmmaker takes a film to the cinema, the cinema gets 70% while we get only 30%. From this 30%, you will have to pay all sorts of taxes. How can we survive? I think that the Nigerian filmmaker is an endangered specie. We have built this industry on nothing. There are no funds from anywhere; BrandiQ 78
even the one that we should get has not been released. At 52, do you think that Nollywood has matured in terms of delivery? I can only state that the glass is half full than half empty. Nollywood has come a long way and it’s on the right path. The quality of some of our films is wonderful; even outside the country, some of our films are making waves. We haven’t quite gotten there and at 20, I think we still have a long way to go.
However, when compared to Bollywood and Hollywood, it is clear that we are doing well. I am very optimistic that we will get there eventually. How do actors and actresses fit into your scripts? It is my duty to know my casts very well. When I do auditions, I should be able to pick the person who will interpret the role better. Sometimes, it is not even that there are very good actors. But as a producer, I have the discernment about choosing an appropriate actor for a script or role in a film. Just like a good businessperson who has a knack of the kind of business that will be profitable, a producer should be able to spot the best actor for a role in a film in spite of the abundant talents that exist. Apart from that, I think it is a gift from God that I am
able to select the best act for a role in my script. I use popular talents, but I am also known for using unknown actors, as long as you are suitable for the script. How has it been, excelling in a maledominated industry? It is the grace of God. But beyond that, I strongly believe that a producer should not be seen as a male or female. The film industry shouldn’t be gender sensitive. I am a very meticulous person; I pay attention to details. I do not subscribe to mediocrity because excellence is my watchword. Right from when I started, when something is not right, I ensure that I get it right. There is this part of me that makes me reach for the height. It is not about money because I had no money when i made my first film. It still amazes people when I tell them that I made my first film with only N6, 000. I am a firm believer in what I do. I don’t give up on my goals. I respect people irrespective of the gender and I will not make you treat me less than a woman - that is why I do my work well. I strongly believe that I deserve to be treated first of all as a human being. As much as our culture demands respect for men which I do, but I don’t put that into consideration when I am working. Like I tell my female friends, you don’t really need support from men; go out there and take your place in your chosen field of human endeavor. If you are a banker, go out there and be the best banker that you can be. If you are a cook, go out there and be the best cook that you can be. When I first started, I went out there and did what I had to do, and here I am today. If you are good at what you do, they will give you a grudging respect. If you do your job well, you will be celebrated in the industry and be respected. I always advocate no compromises from a woman in any form. Be passionate about what you do and be the best in it; nobody is going to antagonize you. I always say that there is escalator to success.
TRENDS & ACCESSORIES
BlackBerry 10:
A Decisive Challenge from Canada? By Damilola Omitogun
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he much awaited Blackberry 10 operating system was officially unveiled in the UK on January 30, 2013. Developed by BlackBerry (formerly Research In Motion) for its BlackBerry line of smartphones and handheld devices, it is based on QNX, which was acquired by BlackBerry in April 2010. Kicking off the BB10 revolution is the BlackBerry Z10 tasked with re-igniting the ailing fortunes of the Canadian firm. Z 10 is the first BlackBerry that runs on the all-new BlackBerry 10 mobile computing platform. Not one line of code from the old BlackBerry operating system is present in BlackBerry 10. BlackBerry scrapped the BB OS7 base and rebuilt from scratch. According to techradar.computing, an online company, “The BlackBerry smartphone range has been in desperate need of a reboot for a while as the likes of iOS 6, Android Jelly Bean and Windows Phone 8 have outstripped the now extremely out-dated BB OS7 platform. BB 10 sees the implementation of a whole new user interface doing away with the familiar BlackBerry system consumers are familiar with, in favour of something which resembles the likes of Android and iOS, although with its own unique features. BlackBerry 10 has merged home screens, widgets, app lists and a unified inbox into one slick interface, offering up an easy-to-navigate user experience.” Older BlackBerry Smartphones have fallen into a device family - Bold, Torch, Curve - but Z10 BlackBerry has set a new naming convention which goes by just the device model, without a family sub-brand. The first BlackBerry 10 phone is full touchscreen but for those who are not touchscreen friendly, the full QWERTY BlackBerry Q10 is expected to be launched in the month of April, 2013. The BlackBerry Z 10 comes in both black and white colors and a full touchscreen phone with a 1280 x 768 4.2-inch display. It’s the first BlackBerry smartphone with LTE which enables one download apps and files at uber fast speeds. The phone includes 8 megapixel (MP) AF rear facing camera and a 2
megapixel front facing camera with 1080p video recording, with support for micro HDMI. It is the first BlackBerry with a forward-facing camera, which goes hand-in-hand with the new BBM video chat function. One of the main and new features of Blackberry 10 is the Blackberry Hub. It comes with 16 GB of built-in storage, 2 GB RAM and a removable micro SD card (up to 32 GB). The phone has an 1800mAh battery which has up to 10hours talk time (3G), dubbed the LS1. The user interface includes the ability to run 8 “Active Frames”. Active Frames are applications that are currently running within the operating system, but minimized and showing a feed of live information on the home screen. Connectivity options include NFC, Bluetooth 4.0, 3G, 4G LTE and Wi-Fi (802.11 a/b/g/n). BrandiQ spoke to a few people to get their views on the potential of the BB 10 in Nigeria. Imbor Maureen Iwuese, a Youth Corps (NYSC) member, is of the opinion that it will definitely have its chunk of the market share. He said in BB10, “Wi-Fi is not needed for a voice call, it’s adding a FaceTime-like video-chatting feature and another cool new trick is the ability to share your phone’s screen with the person on the other end of the call. If they’re also on a BlackBerry 10 device, you can review work documents or enjoy photos together without having to e-mail or upload the files. A market observer, Funsho Adeleye claims that the gadget will not sell in developed countries because BB is behind others in the market. Her words: “I don’t think anyone there (in a developed economy) will drop an iPhone or Samsung Galaxy, but in Nigeria I feel they will have a strong market here because we are used to carrying two or three mobile phones. Apart from the fascinations… Nigerians love IT gadgets as a lot of them see it as status symbols.” The Blackberry Z10 is already launched in Nigeria, and available by various telecommunication companies and authorised retail outlets. BrandiQ 79
F
ashion & Style
Is Mr. Price Making A Mark in Nigeria? Affordable Clothing: By Damilola Omitogun
in trying to give a new design to clothing and the different ways it can be explored as fashion. Trend in fashion has increased the purse of the fashion designers/cloth manufacturers but has constantly drained the purse of the unsatisfied customer whose wants are insatiable when trying to keep up with trends. This has culminated in the idea of patronizing second-hand and inferior clothing materials. The trade liberalization polices adopted in the ’90s opened the floodgates for second- hand clothing in Nigeria, The emergence of second-hand clothing in the country helped to satisfy the fashion needs of the middle and lower-class income earners.
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lothing is a basic need of man and has been in existence for time immemorial. In retrospect, as regards the biblical recitation of Adam and Even in the Garden of Eden, the Serpent deceived Eve into eating the forbidden fruit and she succeeded in luring Adam to eat the fruit which God had warned them against. They both gained knowledge and became aware of their nakedness. This prompted them into sewing fig leaves together to cover their nakedness, which is the innovation of clothing and gradual development into what is today known as fashion.
According to a report by Al Jazeera’s Mohammed Adow, despite a government ban on selling second-hand clothes in Nigeria, (Africa’s most populous country), it’s estimated that 80 percent of Nigerians dress in used garments. Gatankowa market in Lagos, the nation’s commercial hub, is the largest second-hand clothing market on the continent. The Moment newspaper in Nigeria equally, has described it as the “Wall Street of second-hand clothes”. China also plays a role in maintaining the clothing needs of the lessprivileged. China Town in Lagos, Nigeria, was built in 2004, and it is being managed mainly by the Chinese. It encompasses over 100 shops, selling everything from clothes, jewelleries, household wares, and what have you. Their items of trade are relatively affordable but not of superior quality.
Man, in his earlier day, was only concerned about covering his nakedness but as time went on, he began to realize style and creativity
China town, Lagos Traders selling second hand clothings BrandiQ 80
In 2006, China was adjudged the largest producer of apparel/textile products in the world. Apparently realising the Chinese cloth-
F
ashion & Style
ing our customers a better price. In a nutshell that is how we do it. “We are a cost business; we cut off the fancy stuff and we like to give them value and pass it on to our customers. Similar merchandise in other retailers I won’t want to mention focuses on the fancy, but Mr. Price’s price is waiving all that while not compromising quality. Our products cut across different range from N500 right up to N10, 000. They cover all segments and cut across the two genders and all age groups. Whether you are shopping for a new born baby or grandparents, we also have different lifestyle ranges. It is a one-stop shop when you are looking for clothing,” Mr. Subrathie further disclosed.
Mr. Imthiaz Subrathie, GM, Mr. Price West Africa
ing imports had practically destroyed the Nigerian textile industry some years ago, the Nigerian government banned them for such imports. Inferior clothing from Aba, in Abia State, popularly known as “Aba wares” and from Dubai, is not left out as the home-grown clothing brand has also played its role in clothing especially lowincome Nigerians. Recently, South Africa is making its presence felt in the Nigerian market with a huge contribution in the clothing sector. Clothing stores such as Woolworths, Truworth and Mr. Price, all South African clothing stores, are springing up and gradually gaining ground in the Nigerian fashion market. A remarkable store, which sells its clothes at affordable prices, compared to other stores in high-end Malls, is South Africa’s fast growing fashion value retailer “Mr. Price”. Clothes ranging from casuals to corporate wears are sold from about N500 upwards. It is yet unknown if Mr. Price wears are truly affordable, and if the development promises to eradicate the phenomenon of second-hand and inferior clothing items. Speaking with BrandiQ, the General Manager Mr. Price West Africa, Mr. Imthiaz Subrathie, said: “Mr. Price is a value business. We tend to do away with the fancy that other retailers might show. We rather cut down on those costs and channel those savings into giv-
In respect of the quality of his company’s clothing items, he added: “The quality of our garments goes through stringent quality control and we are very confident of the level of our quality and that’s nonnegotiable. We will never compromise our quality.” Subrathie also stated Mr. Price is offering the Nigerian consumers an international shopping experience, totally different from the local market primarily where the bulk of the people shop, saying, “the defining factor is that we offer quality; we offer the experience of international retailer but our brand stands for affordable prices, and that’s what we want to offer: everyday low prices on our garments in our stores.” On why his organization’s foray into the Nigerian market, Mr. Price General Manager revealed that it is no secret that Nigeria is an economic power house in Africa: a large population, large paying power, and the limitless potential. These, according to him, that have been proven by reasearch, including international research. “We thought that Nigeria will be the ideal place for us to start our African expansion. That prompted our decision. We also learnt from Shoprite (also a South African franchise in Nigeria) that took off some years ago and we have taken a lot of learning out of their experiences in conjunction with the research we have done. We chose Nigeria as our place of destination or a start to Africa,” Subrathie told BrandiQ. In connection with the company’s expansion efforts in Nigeria, he said presently, Mr. Price has two stores in Nigeria: one in Ikeja City Mall and Surulere Shopping Complex (both in Lagos). He however, disclosed that they are opening the third store in Ibadan, Oyo State capital, March 27, 2013, while the Abuja office will open for business in April this year. “We are expanding out of Lagos for now. So, we will be opening four stores within the space of 13-14 months. Our plan is to get about 25-30 stores in Nigeria in the next three years at least, of which primarily around 60-70% of them will be in Lagos, given the population here in itself but if opportunities present themselves in other states, we will definitely expand,” Subrathie stated. Abazie Ngozi Sandra, a customer of Mr. Price store, is of the opinion that Mr. Price’s wears are affordable and meet the need of various individuals. To her, the company’s clothing quality is up to standard for their price. BrandiQ 81
AUTOBRANDS
Our Aim Is to Manufacture Cars in Nigeria - Parvir Singh, Managing Director, Stallion Motors
Stallion Motors Nigeria is part of the renowned international business conglomerate, Stallion Group. As the Chief Executive Officer of Stallion Motors, Parvir Singh oversees the activities of 10 world-class automobile brands for which Stallion has exclusive distributorship in the country. In this chat with Adeshola Ogbodo, Singh comments on key issues in the automobile industry in Nigeria and sub-Sahara Africa. How would you describe the Nigerian automobile market? Nigeria auto market is very interesting, and we hope to take the market to the next stage where we start manufacturing cars in Nigeria. Nigeria is a very big market and also very important. It is one of the biggest markets in sub-Saharan Africa. It is a very strategic market for all manufacturers. We at Stallion would like to take advantage of Nigeria’s unique position in West-Africa and sub-Saharan Africa to start the process of manufacturing vehicles in Nigeria. What are some of the challenges Stallion faces in doing business in the country? In terms of challenges, I feel we still need to have a lot of vocational training where people are trained in the automobile field. It is very difficult to find very skilled human resources for the automobile industry BrandiQ 82
which requires a very high set of skills. This maybe as a result of lack of investment in this sector by the government. We also face challenges in terms of social infrastructure. The level of skills has not been that good. But it is a process and we hope that we see a lot of investment in the education sector. We feel that with this in place, Nigeria would be in league with the developed nations once the education sector is improved. This would also lead to an improvement in the industrial sector. We know that the government is working on this area. We hope it does more so that we can take the Nigerian automobile industry to the next level in line with world standard. The West-African automobile market, especially in Nigeria, has become very competitive and requires a great deal of expertise. How has Stallion been able to maintain impressive performance over time? We have done very well. If we were not very good at what we do, we wouldn’t have all the top manufacturers entrusting the distributorship of their brands to Stallion. They are doing business with us because we are the best in this field which is a testimony to our strengths. How have we been able to achieve this? Stallion has built up excellent systems and processes operating them to international standards unmatched in Nigeria. We have invested heavily in the
AU TOBR ANDS business. But most of all, Stallion has given customers’ satisfaction which is why people have faith in the company for providing good sales and after-sales services. Last year, Stallion Group won a major award from Hyundai Motor Company, Korea, in recognition of its excellent performance in Nigeria.
For how many auto brands does Stallion have exclusive dealership? We have about 10 brands which we are exclusive distributors for. They are Honda, Porsche, Skoda, Volkswagen, Hyundai, Mahindra, Ashok-Leyland, SsangYong, GMC and Foton. After sales service is a crucial aspect of the automobile industry. What is Stallion doing with over 10 auto brands in its portfolio in
this regard? Service is all about how you can meet customers’ expectations in terms of delivery. We are setting up the world’s latest IT (Information Technology) systems for capturing the customers’ requirements. We are building very exclusive large workshops so that the service centers are very close to our customers. This has been a process by which we want to keep upgrading our standards of service so that we can basically qualify for the ISO 9000 certification and have all the world-class certification. That is our aim, and that is what we are working vigorously to achieve. From experience, what features do you think Nigerians look for when purchasing cars? By and large, Nigerians have a passion for automobiles. Nigerians love the good things of life and cars are some of them. They like reliability of their cars. It should be easily serviceable. It should be less expensive in terms of servicing. It should also be economical to repair. All these are some of the features which the customers are looking for when they purchase or intend to purchase automobiles. To get commercial vehicles, they need reliability and economic viability of the commercial vehicle. We have a vehicle manufacturing plant along the Badagry Expressway (in Lagos State) where we manufacture Ashok-Leyland buses. Most of the Ashok-Leyland BRT buses you see around are assembled at the plant. Stallion Group is a very big international conglomerate. We are in different fields. We are in commodities business, auto, rice, fish, etc. Our aim is to give the customer great value and quality products at very affordable prices. This is the philosophy that has been driving our business.
2013 Hyundai Santa Fe:
Combining Style with Power
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AU TOBR ANDS
H
yundai has given the Santa Fe a new shape that adds a dash of ruggedness and practicality to its familiar ‘fluidic sculpture’ shapes.
The 2013 Santa Fe has come up with a clever redesign concept that is hard to ignore: There are two of them to contend with now, the familiar two-row five-passenger crossover and a new longer wheelbase three-row seven-passenger model. The 2013 Hyundai Santa Fe is a win-win strategy of performance and fuel efficiency. Every Santa Fe model also comes with steering-wheel mounted controls, a six-speaker audio system, XM radio, USB port and auxiliary input jacks, Blue Link telematics system, and under floor cargo storage. Additional noticeable features include well-lit door handles, a unique and ventilated design on the leather upholstery, a massive moon roof, and steering modes – all of this is enough to sink the midsize crossover competition. It’s also roomy inside for all five passengers and can accommodate extra cargo.
ing in the inner rear wheel to help control the vehicle in advance, at a stage before conventional ESC systems would activate. They deliver more stable driving performance by helping drivers control their vehicle at will and improving driving agility. The Santa Fe is without a doubt the best-built Hyundai of the moment. The car, features an ergonomic interior layout, sports luxurious quality seats, and ensures a quiet and smooth ride; state-of-the-art convenience features that offer the highest level of comfort and versatility of space. The inner space as well as the size and layout of the seats have been optimized to make it practical for any situation, whether it is for leisure or business. The rear seats can be divided into a 4:2:4 ratio, leaving enough seating room. The Elite model Santa Fe is stocked with beautiful, clear satellite navigation, dual-zone climate control, second-row vents with third row air-con, self-dimming rear view mirror, reversing camera and parking sensors, electric park brake with auto hold, phone and media, Bluetooth, rain-sensing wipers, auto headlights, cruise control and rear passenger privacy blinds. There’s plenty of storage also. Apart from the glove-box, there’s a space under the dash, huge door pockets shaped for a water bottle, under-armrest storage and heaps of cup-holders. The boot is a helpful 516 litres with the third row folded with 1615 litres available when the second row is flipped forward.
The 2013 Hyundai Santa Fe is a Top Safety Pick with The Insurance Institute for Highway Safety (IIHS) for ratings of “Good” in every crash test area. The vehicle has a 5-Star overall rating with The National Highway Traffic Safety Administration (NHTSA) USA. Standard safety equipment include a comprehensive airbag system, antilock brakes, electronic stability control, and hill-start assist control. The turbo four-cylinder alleviates any desire for a larger V6, as this powertrain is precise, responsive and commanding in every driving situation. The cabin is quietwith minimal blind spots and roomy for child seats. All Santa Fe models use the Active ECO System for smoothing out throttle response. If you want to hold out for the three-row seven-passenger Santa Fe model, it features the only gasoline direct injection V6 engine in it is class: a Lambda II 3.3-liter toting a quick 290 horsepower and competitive fuel economy. ESC/4WD Assistance control is a function that minimizes the risk of running off course in the event of entering a curve at high speeds. 4WD distributes traction to the rear wheels while ESC exerts brakBrandiQ 84
Hyundai Motors Nigeria Limited, the distributor of Hyundai range of vehicles recently unveiled the 2013 Hyundai Santa Fe and three other Hyundai models into the Nigerian market. The new models include all-new Hyundai Veloster, Azera and Genesis which are already on display at the company’s showrooms nationwide.
SPORT MARKETING
‘Events with Quality Followers Can Grow Sports Marketing’ - Spiff-Sagbamah
A leading campaigner for robust sports marketing environment in Nigeria, Godwin Spiff-Sagbamah of Hally Sports International, speaks with Adeshola Ogbodo on the challenges of sports business in Nigeria and how the country’s National Soccer Team, The Super Eagles, can become a celebrated brand. Background I work with Hally Sports International. It is Nigeria’s pioneer in sports business. It is a sports media and marketing communications organization duly registered in Nigeria. We are also registered globally. Hally sports is the only Nigerian sports media and marketing communications company doing sports marketing and sports business. In 2006, I was the only Nigerian sports journalist who was invited by FIFA to Germany to tour stadia for the World Cup. Principles of Sports Marketing When people watch football, they are excited about who scored the goal and all that. We don’t look at that. We look at what benefits it brings to the club. For example, if you are an Arsenal fan, the team is not a
club that is intentionally formed to win trophies. Arsenal is intentionally formed to make profits. Fans decry the team because they don’t understand the dynamics and the philosophy driving the club. Arsenal stands for 3 philosophies: identify, groom and expose. So when you see the club buying talents for less money. It is a policy of the club to identify talents, groom them and expose them. By the time you expose them, the clubs that want to win trophies and have all the money come and buy these players. A player you bought for N2 million is now being sold to another club for about N20 million, isn’t that good business? Arsenal match tickets are also the most expensive. All these are things that the average Arsenal fan does not understand about the business philosophy of the club. It is not just about
football. It is much more than football. It is about the philosophy of the club. Sports marketing like any other marketing communications is just picking sports as a sector and then try to look at the things that are available. You ask: do I want to go into sporting events? If it’s sponsorship or the core PR aspect of it. It is a very big industry where you must align yourself with one or more aspects of it. In Nigeria, we don’t engage the people who truly understand the total matrix of the business. It’s just like when a governor or any political appointee wants to employ a spokesperson, he or she tends to employ his or her friends. They forget that the person, who should handle media for the president or the governor, must understand 3 basic things: the spokesperson must be a good brand manager, a PR person and he must also understand the media. These 3 things must be there. If you just go and employ a journalist as your spokesperson, you will have a situation where the person is just going to be your spokesperson but would not be able to handle the image of the person. He wouldn’t be able to manage you as BrandiQ 85
a brand. For people in those offices, they are seen as brands. When you don’t have the right people doing the right thing, then problems will arise. Making Nigeria’s Super Eagles a Formidable Brand
In 1994, after the USA 94’ World Cup, the Nigerian Super Eagles became a brand. They were rated as the fourth best footballing nation in the world. Today, the Nigerian Super Eagles brand value is less than 15%. It is so unfortunate. The brand value in 1994 was 86%. Then every company wanted to identify with the Super Eagles. Every game at the national stadium was always packed full. It is obvious that brand managers have not been involved at the national team level. In the administration of our football, they are not there at all. If those who understand it want to come in, they shut them out. As this continues, the brand value of the team will continue to go down. How veritable is sports marketing in brand building? There is no better tool to build the Nigerian brand than sports. When Mrs. Dora Akunyili was trying to rebrand Nigeria, she was picking people from Nollywood. Research has shown that Nollywood viewership is just about 50 million. Sports is over a 100 million. If you go anywhere around the world and say you are from Nigeria, they BrandiQ 86
ask you about Jay Jay Okocha and Kanu Nwankwo. If government can latch unto that, it can give the country a good image. While Nigeria took part in the ongoing African Nations Cup, the whole of the world was watching. They saw Mikel Obi, Joseph Yobo, Victor Moses and the like. they won the AFCON and the world recognizes them and their image soared. The government can latch unto this to create brand visibility for Nigeria. Sports is the best avenue to achieve this. But we keep leaving sports in the hands of ministers who only ask about the time the next Olympics is taking place and start preparing budget for the government to release funds.
Sports can take away 25% of our youths who are roaming the streets of Nigeria. You don’t need education to thrive in sports. All you need is to harness your physical prowess. Imagine the Niger Delta filled with rivers and waters cannot produce one swimmer. There are people in the Niger-Delta who can swim against the tide. All the government needs to do is give them the right platform and all that is needed and they become world champions. It is a very sad thing for those of us in the industry because government has not realized that sports is a mega billion dollar industry. We understand that sports marketing leverages sporting events. In Nigeria, there are really no major sporting events that attract huge followers that can be leveraged. How then can sports marketing
business thrive in such an environment? What really trigger sporting events and all that are policies. A lot of companies are pulling out of sports in Nigeria. Mobil pulled out of the annual Mobil athletics trial. Why? Because they were not getting value for money. Telecom companies are fighting to be right owners of Nigeria Premier League and it was messy. It wasn’t properly done. Administratively, there is no accountability; there is no credibility. The English Premier League gives an account at the end of every season. Last season the teams that were relegated went away with millions of Pounds. For example, Bolton Football Club, one of the relegated teams got 24 million Pounds.
That was their share out of all the monies that were realized from the EPL last season. This can happen because the people there have to be accountable. The private organizations see that if they put their money there (abroad), they will get value. There is transparency. But in Nigeria, there is no accountability. At every forum I have attended with the government, they tell you that sports is to be sponsored by government because they know that nobody accounts for government money. We are preaching that the private sector should drive sports, but they are insisting that government should be the one to do it. Hitherto, there is no accountability. That is why Nigeria keeps using old men to prosecute youth tournaments. The reason is very simple. If the federal government gives you N2 million to prosecute an Under-17 tournament, if you eventually win the tournament, nobody is going to ask you to account for that money. The government is so happy Nigeria has won. So, we have a situation where 40-year-old men will go and play Under-17 tournaments, beat all
other teams, win the tournament and the government is happy and even give them more money for the win. Two years down the line, you find out that none of these over-aged players could break into the Super Eagles line up because they were playing at their peak. The recent National Sports Festival in Lagos State What the National Sports Festival has done is to destroy our future athletes and sportsmen and women. Most of the athletes that have represented Nigeria in the past like Falilat Ogunkoya and others were all graduates of the National Sports Festival. But when the states discovered that it was an avenue to make money and also gain prestige for the state, rather than look for raw talents in the various local governments of
their states, they go to other states to poach already made talents. So, athletes represent states that offer them more money. When this happens, it kills the biggest sporting activity we have in the country. When Lagos hosted it, you probably thought brands would fall over themselves to be part of it. But this was not so. A lot of the companies that came in did so because of Lagos state. Those that supported it did it on a humanitarian and emotional ground. They know there is no real benefit in there for them. If it was a Federal thing, they would most likely not have been part of it. The NSF doesn’t give room for younger athletes to develop. It is essentially using already made talents who just win laurel for the states. This is not meant to be so. The NSF is meant to open
doors for talents to come through. There was one young 13-year-old girl who won silver for Lagos state in Swimming. These are the kinds of things we want to see at the NSF. All they need to do now is to give her a swimming coach and then set a target for her to participate in the world swimming championships and subsequently in the Olympics. Nigeria winning AFCON 2013, what are your views? It was a great win because nobody really gave them a chance. But now that they have won it, I am more interested in what happens from here. Most corporate organizations are falling over themselves to identify with the team. But how does government take it from here is my major concern. This victory has also shown that for the Nigerian
youth, there are endless opportunities in sports. What the government needs to do is to sit down and look for ways to use this victory as a springboard or catalyst to trigger up all other sports, football inclusive to engage the Nigerian youth who has the potential to excel at the global stage. The issue is that how do we use this as a catalyst to engender sports’ development and growth and thus engage our youths productively and economically. That should be the concern. I expect that the presidency through the different state governments will use this as a good precursor to engage their various youths. The states are the guiltiest because
they constantly look up to the Federal Government to do things. They forget that on their own, they can engage their own youth using the different sports platforms in the country. We have about 32 different sports in Nigeria, how many states can beat their chests that they have absolute advantage in different sport areas except for Delta, Edo, Rivers and a few other states. Other states use money to poach athletes from other states. You can’t see any consistent developmental effort by any state government to engage the youth’s sports wise. This is a very good victory for the lads. And there were five home based players in the team. That goes to show that the Nigerian premier league can take a cue from here and use players like Sunday Mba, the scorer of the winning goal and other home-based Super Eagles, as the brand faces of the Nige-
rian premier league. This move will trigger up the corporate world to want to identify more with the Nigerian premier league. It is left for those who are managing our national sports, to think in this direction. Future of Sports Marketing in Nigeria? There is a bright future for sports marketing in Nigeria. It’s left for those of us who are in it to keep creating new platforms, coming up with innovations, ideas, creativity and also we need to create events. In the way it is we have to let the business community know that if you do not trust the public sector, there are some other people you can trust. We can create events that they can latch unto and deliver audience for them. BrandiQ 87