Fraym for

CONSUMER GOODS

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A prominent consumer goods company sought to increase its sales of soft drinks in Nigeria. Fraym was asked to:

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Measure the total addressable market for soft drinks in the country

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Reveal the geographic distribution of target consumers

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Construct Target Consumer Profile

First, Fraym built a customized profile of the target consumer and then used this profile to identify sub-national markets with latent demand for soft drinks. Among these target consumers:

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Roughly 74 percent of households in Nigeria spend money on soft drinks, spending an average of $96 annually per household.

 

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Target households are urban and connected: 75 percent of soft drink purchasing households live in urban areas and 80 percent are connected to electricity and own electronics like televisions and radios.

 

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Spending on soft drinks is split evenly between consumption at home and eating out.

 

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Locate Areas of Latent Demand

Based on population and annual spending on soft drinks, Fraym highlighted the top ten states by market size. Then Fraym assessed latent market demand in every major city:

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Lagos City and Ibadan had the highest number of target households, at roughly 4 million collectively. 

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Other significant concentrations of target consumer households are in the South-South, in cities such as Port Harcourt, Uyo, Enugu, and Calabar.

CONCLUSION

Fraym found that the total market for soft drinks in Nigeria is roughly $3.3 billion.

Lagos City represents roughly 22 percent of the total addressable market. Fraym identified other areas of consumer potential with detail down to a few square kilometers, providing critical marketing insight for cities across Nigeria.

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