It’s the market asking. I’m only a dispatch writer. Because, whenever a Nigerian brand announces increment in price, 2 kinds of market reactions typically follow it.
The first kind outrightly condemns the increment. With little to no consideration for socio-economic realities, it subtly labels it exploitative, insensitive and unnecessary.
This kind of reaction is the most dominant and obvious. It attracts the most attention, focus, and treatment from brand custodians/issue owners.
The second kind of reaction questions the need for such increment compared to the current value the brand provides.
Unlike the first, it doesn’t outrightly condemn or cancel. Instead, it asks “why” such price increment compared to the quality and/or quantity of current value enjoyed.
It’s less dominant and less obvious. It doesn’t command attention or focus immediately. But overtime become more consequential to brand perception and consideration in such situations.
You’ll likely see this reaction as 1 in every 5 reactions of the other kind.
Typically, some days, weeks or months after its posted, this kind of reaction begins to garner supportive engagement from other concerned people/target audience.
It then evolves to set an agenda for further discussions on the brand action/inaction around price increment via social and/or traditional media.
I’ve seen this pattern for about 3 years now. Across education, power and energy, telecommunication, SVOD/VOD, food and beverages, and fashion industries.
Latest was the MTN & Airtel Nigeria’s price increments.
For me, “why” we see this kind of reaction is much more important than “how” we see it. It’s a chance to travel into the attitudinal depth behind it.
And bring back findings to review brands ideas and state of value creation, brand building and management, and the role of the creative agencies in this dynamic.
I noticed 2 market beliefs behind this hideous yet consequential market reaction to price increment:
First belief: price increment should be commensurate with the basic value a brand provides to its target market.
Second, value should first be noticeably improved upon before brands increase prices of whatever they offer.
When examined, these beliefs indicate a market ideology of value is non-negotiable and must proportionately determine brand or business behavior. Particularly, pricing behavior.
In other words, if value doesn’t add up, price increment doesn’t make sense.
This market attitudinal and behavioral reality questions our marketing culture in Nigeria across pillars of:
- Existence and state of value creation.
- Strength and performance of brands in price de-sensitivity.
- Role of agencies in this brand/business situation.
On the first pillar, it becomes necessary to ask ourselves:
- Do Nigerian brands create and deliver users/consumer value in its real sense?
- If yes, who/what realistically determines and shapes this value: the market or c-suite/shareholder/the chairman?
- How well is this value delivered and sustained?
- Is it possible to improve value while increasing cost?
- And do Nigeria brands consider this?
Brands play different yet interconnected roles in the business-market relationship dynamics.
If well planned and invested in overtime, a brand is expected to help business reduce and/or manage how sensitively the market react to its price adjustments.
Given the sensitive and consequential reactions that typically trail price increment in Nigeria:
- Is it safe to say we build brands in their ideal forms at all?
- If yes, do we invest in brands enough to function as expected in price increment situations?
- Is there another meaning and expectation of a “brand” in Nigeria?
Branding, brand planning and brand management are not done by businesses alone. Most times, it’s a co-activity with marketing agencies/consultancies/studios etc.
So, it’s only right to ask; do agencies:
- Do enough to bring in possible market perspectives to brand’s price increment intentions?
- Guide brands on how to approach this increment safely.
- Bring in market reactions to shape the brand’s destination and trajectory going forward?
As long as the market question value as reaction to brands’ price increment, these questions demand answers.
The answers and how we use them will do well to improve market confidence in brands going forward.
This then makes it easy and less consequential for brand custodians to execute and sustain the business of brands.
For what’s the use of a brand to the business if it cannot legitimately increase price without facing the “where’s the value?” question?
Samuel Sokale is a strategist by day, other things at night. Currently, he co-finishes office coffee, sometimes, office alcohol and “annoys” teammates as head of strategy and insight at UpInTheSky Limited, Lagos, Nigeria.
You’ll find him blowing things up or cooling things down on Linkedin: Samuel Sokale, Twitter & Instagram: O_proz.
