Finding Opportunities to Expand Soft Drink Sales in Nigeria
Fraym sought to highlight specific cities and neighborhoods for a consumer goods company to target in order to accelerate soft drink sales in Nigeria.
How did we accomplish this?
Construct a tailored profile for the ideal soft drink consumer
First, Fraym used proprietary consumer data to build a customized profile of the most profitable soft drink customer.
In addition to rich socioeconomic and demographic data, this target customer profile included critical details such as:
Location: Target customers are urban and connected: 75% of soft drink purchasing households live in urban areas and 80% are connected to electricty and own electronics like televisions and radios.
Spending habits: Roughly 75% of households in Nigeria spend money on soft drinks, spending an average of $96 annually per household.
Consumption habits: Spending on soft drinks is split evenly between consumption at home and eating out.
Calculate the addressable market for states, cities, and major neighborhoods
Based on population and annual spending on soft drinks, Fraym highlighted the top ten soft drink markets in the country. Then Fraym assessed latent market demand in every major city:
- Lagos city and Ibadan had the highest number of target households, at roughly 4 million collectively. Lagos City represents roughly 22% of the total addressable market.
- Fraym found that the total market for soft drinks in Nigeria is roughly $3.3 billion.
Prioritize distribution and sales locations at the neighborhood level
We mapped customer concentrations across the country to find, rank, and prioritize locations for marketing, sales, and distribution. For example, we highlighted promising market potential in Uyo, Enugu, and Calabar.