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Coca-cola, 7up War: Quality May Be Affected -experts - Business - Nairaland

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Coca-cola, 7up War: Quality May Be Affected -experts by themomentng: 11:34am On Aug 13, 2017
The unending brand war between Nigerian Bottling Company (NBC) and Seven Up Bottling Plc, Nigeria’s two rival makers of coke, over the control of the country’s soft drink market, yet again came to the fore with the duo reviewing the prices of their bottled drinks downward to regain their market share, which experts said shrink as ongoing economic recession erodes consumers’ purchasing power.

But experts express fear over the quality of the product, which according to them have health implications.

NBC had earlier raised its prices across the board as it continues to battle macroeconomic challenges such as continued naira devaluation, inflation and higher input cost of imported raw materials.

It increased its prices to wholesalers across the country for its various brands early in January with the exception of its Eva bottled water whose price had remained the same. Also, the company had quietly withdrawn the 60cl PET bottle it introduced in February 2016 for the standard 50cl PET.

The development was followed by massive decline in volume of sales; even Pepsi Cola was spared by the fall in demand as consumer struggle to survive the harsh economic situation.

So 7Up, maker of Pepsi Cola in a move to regain the lost volume took the battle for consumers to Coca-Cola’s doorstep with the offer of its 50cl bottled brands at the same price as its rival’s 35cl bottles.

The price of the 50cl Pepsi cola was N150.00 before it was reversed to N100.00.

However, as Nigerians were about to settle down to enjoy what seem to be affordable soft drink from 7Up company , Coca Cola reversed its price to 35cl to N100, even as another major competitor, AJE Group Big Coke swept into action with the introduction of their 50cl bottle for N100.

The development is leaving the consumers in the position of making decision as to whether to go for 35cl Coca Cola for N100 or 7Up products of 50cl bottle in the same price.

Speaking Marketing Expert, Mr. Olujide Fabanise, said Coca Cola’s reduction of its 35cl bottle Coke to N100 may have resulted in low sells of the PepsiCo’s 50cl that was selling at N150.

He said 7Up and Coca Cola have no option than to engage in the price reduction to regain their market share or lose out completely as there is now an alternative in the market–Big Coke which sells its 50cl bottle at N100.

He said that a producer who is not creative and innovative in terms of price and promotion of its products will loss the Nigerian consumer now whose disposable income has seriously been reduced by the economic recession ravaging the Nigerian economy.

According to him, hardly can you see people buying drinks for friends and relations again because they no longer have the money to play around with.

On the quality of the soft drinks, he said,” Yes, that’s the Nigerian factor. Any increase in price of goods, leads to reduction in the original quality of the product, much water and sugar. Such is our life. The more money you pay, the less the quality, content you get”.

Marketing and Media expert, Mr. Obiajulu Agu said Nigeria is a huge and, profitable market for numerous products because of the free spirited consumption and spending disposition of Nigeria’s huge and ever expanding population.

“These factors are what any serious-minded business enterprise must key into to grow and those were what Seven-Up Bottling Company must have considered in slashing the prices of the 50cl-sized plastic containers of its various soda brands from N150 to N100.

“This is a great marketing move, bearing in mind that the company’s great rival, Nigerian Bottling Company Plc (NBC), is retailing the 35cl-sized plastic containers of its various soda brands for N100. I bet you the NBC Management is having sleepless nights mulling over countering the rival’s killer marketing moves, including the decision to pay the toll fees for motorists plying the Lekki Toll Gate in Lagos between 5:00pm and 6:00pm as from Friday, August 11, 2017?

Meanwhile, feelers from Seven-Up indicate that free drinks might also be part of the package for the motorists, and some other lucky persons that are positioned for the company’s largesse for members of the public.

Managing Director/ Principal Consultant, PR plus Consulting, Mr. Kunle Ogedengbe said that the price angle is a critical conscience in marketing if you look at the four Ps in the marketing which means price, product, promotion and placement.

He added that pricing is the critical function and what I think is happening on the price issue between cocoa cola and seven up is the function of the market that is Nigeria market presently.

“There is recession, high level of unemployment and capacity of Nigerians has reduced. In order to meet up with their sells volume and have more revenue, that is why they are doing the pricing.

“People don’t have money as they used to have. For them to think of Cocoa Cola or Pepsi Cola instead of table water of N50, they need to be attracted, so for the companies to survive in the present circumstances of the Nigerian consumers, they need to adopt the option to satisfy the market,” he said.

Our effort to get the two soft drinks maker to respond to consumers fear that quality might be compromised in they reduce prices to retain their market shares, did not yield positive result before the paper went to bed. Media Consultant to NBC, Mr. Akomeh Omijeh, who replied to only email message after several calls, promised to get back to the newspaper but did not.

In his response to the email, he said, “Email has been received and sent accordingly to the office for response. I will get back to you soon as I get the same thanks. We waited for some hours and sent a reminder which read, “Sir, my Editor is on my neck and this is an opportunity for your office to say their side of the story. We may go to print with what we have at hand sir. He responded thus: “No sir. We are on it. Pressure is being placed on them to give us a response fast. Kindly wait for our official response. Thanks.

However, the Corporate Affairs Manager of 7Up Plc, Mr. Segun could not be reach as his phone number did not go through for two days.

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Re: Coca-cola, 7up War: Quality May Be Affected -experts by serverconnect(m): 12:10pm On Aug 13, 2017
I like this. At least I bought Team bottle for N100.

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