Competitive Strategy and Market Sizing

Market segmentation

The business will target the Yoruba community in Nigeria.  The Yoruba is one of the largest groups in South Sahara Africa. It forms a substantially large target market for the company’s products. The group is made up of approximately 50 million people, forming the largest single native group of people in Africa and in the world.  Other large groups such as Hausa and the Igbo are considerably large but made up of composite population. The market segment speaks one language unlike other native group, the Yoruba group of people are mostly urbanized and have built and lived in many towns and cities.  The target segment is large and can be compared to other countries in the modern world. The composition of the group is larger than most of nations in the developed world. It is a little larger than Canada, about the size of Spain or Poland, approximately four times larger than Sweden or Portugal.  

The Yoruba group of Nigeria is considered a good target market for products sue to various inherent characteristics. First, it is substantial. The size determines the profit potential of a market segment and is adequate to economically justify different marketing activities for the segment.  A small market segment is not likely to justify the cost of marketing activities. The segment is substantial to generate required returns.  The segment is also relatively unique as compared to other segments. However, the consumers are also similar in terms of needs and wants. It is also reachable, particularly in terms of marketing communication and distribution.

At the beginning, a market segmentation survey will be carried out to determine its diverse and unique needs. Consumers in a market segment have diverse and unique needs. Grouping them and conducting a survey will allow the company to have a clearer picture of the market by grouping consumers with unique characteristics together. By focusing on the Yoruba, it is possible to target marketing communications to consumers in a more accurate manner.  It will also enable determination of market strategy. Having segment characteristics will also enable the identification of similarities and differences between customer groups. It will be possible to understand what market strategies best suit the segment grouping. The company will first recognize the aspects of a product or service that best appeals to the groupings within the market segment. This way, it will be easier to adapt products or services to closely match each customer’s grouping within the segment.

Market sizing

Market size data

Demographic characteristics

Population (2015)	Number	%
Total population	182201669	100%
Yoruba population	38262351	21%
Population growth rate (estimate)		2.5%

 Table 1: Statistics (World Bank, 2015)

Population figures are important in determining the steadiness of oral products market. There is a large scarcity of statistics on Nigeria’s use of particular products within this category. However, the population figures are important in forecasting future sales of products such as Mouthwash as they fall in this category.  Sales within the oral care market have remained steady owing to the increase in widespread product usage. Opportunities exist for companies to increase the intensity of product usage, particularly through portable oral care products. A focus on product innovations within the floss segment is likely to improve sales.  Opportunities exist for companies to increase sales, fundamentally by encouraging consumers to increase the frequency of product usage. This can be achieved through promoting more portable oral care options such as mouth washes that can be used on while on-the-go. The mouthwash segment will mainly drive growth in the short future as oral care buyers demand more from the products they purchase.

According to Euro monitor, oral care in Nigeria has seen a positive performance over 2014 and 2015.  The retail value growth of 11% was the fastest growth in the personal care categories. The growth in the category is largely attributed to the growth in the overall population. As a result, many consumer groups have become interested in the category. While the country experienced economic crisis, the industry has experienced a considerable growth in oral care products. It is predicted that Nigeria’s oral care will record a positive performance over the forecast period. The value is estimated to be CAGR of 2% based on constant 2015 prices. The demand for proper oral hygiene, consistent marketing activities by sellers and manufacturers and the growing population are expected to drive sales of oral care products over the forecast period (Euromonitor, 2016). Spurred by increasing incomes, particularly young professionals and adults, Nigerian consumers are projected to progressively adopt the benefits of the consistent usage of oral care products. These factors are expected to help to improve growth in the category over the predicted period.

 References

Euromonitor( 2016) Oral Care in Nigeria. 

World Bank (2015) Nigeria population statistics. 

Sherry Roberts is the author of this paper. A senior editor at Melda Research in best nursing writing services if you need a similar paper you can place your order for custom nursing papers