Uploaded by muhammed olaleye


Muhammed, Olaleye
[email protected]l.com
The increasing middle age population, urbanization and the dream of mega city as well as
unfavorable government policy towards street trading is expected to drive the growth of
organized retailing in Nigeria. Rather, many traditional retailing stores, kiosk and shops fail to
grow to the standard retailing store (convenience Store) as expected and the few retailing store
(Departmental stores, warehouses e t c) keep inventory till close to shelve live(expiration) and
sell at a discounted price to avoid total loss. The objective of this research work is to examine the
significant impact of retail marketing mix of FMCG in Jos south,Plateau State. Survey research
design was used with the administration of two different types of structured questionnaire to 120
sampled customers of selected five retail stores in Ray field and Ahmadu Bello Market in Jos as
well as retail store customer across Nigeria through online questionnaire administration using
google form. Simple percentage was used to analyse the data and it was discovered that retail
store customers prioritize retail store shopping convenience, quality and unique brand and
competitive price over other retail marketing mix variables such as packaging, advert, etc. In
contrary, advert do not motivate retail store customer of FMCG brands and they are indifferent to
sales promo. Therefore, the manufacturer of FMCG brands should invest more on research and
development of improved quality product at a competitive price and the retail store owners
should also research into the brands perceived as higher quality by the customers.
Key Words: Urbanisation, traditional and organized retailing, mega city, inventory,
FMCG, Google form
Since time immemorial, marketing mix i.e Product, Price, Place and promotion have been
identified as the controllable parameters that firm use to influence customer buying
process(Kotler 2010).Marketing as a dynamic process evolves with the developmental process
and the state of information technology, so also the consumer decision making process changes
in complexity. For this reason, marketing mix has been adapted to various domain and situations
including retail marketing (Constantinides 2006).
Embracing services, product and relationship marketing, retail marketing scholars have extended
the traditional 4Ps through the inclusion of elements such as Personnel, Process, Physical
evidence, store format, (Baker,parasuvan,Grewal&Voss, 2002,Mulhern,1997)
Retail in Nigeria was once confined to traditional open markets and small local storekeepers –
loosely referred to as the informal retail sector of the Nigerian economy – which serviced
communities (Nigeria Retail sector report 2014). Nigeria's retail sector remains relatively underdeveloped. Over 80% of the shopping is still carried out at the traditional shops such as corner
shops, kiosks, local markets and also from street vendors. Notwithstanding, the sector is seeing a
shift towards modernisation as the economy grows and diversifies (Mckinson report 2013).
Olajide Olutuyi (16 Feb 2018) on his blog post opine that the trend towards modernisation will
continue as the rate at which the population is shifting from rural to urban areas continues.
According to the McKinsey report, Nigeria's rate of urbanization is one of the fastest in the
world, with ongoing urbanisation rate estimated at 4 per cent per annum.
Despite the positive forecast of the retailing business growth in Nigeria, The success rate of
retailing business is determined by the income level of the population density and concentration.
Nigeria Retail sector (2014) report that the decision on the scale and structure of outlet can
however be decided by the investor after further analysis, but most small Nigerian towns can
sustain any form of organized small retail outlet, while the bigger outlets seem to thrive better
where density and purchasing power are high. BMI report examine key drivers of retail sales
growth and future prospect including consumer spending, private investment, changing in
consumer demography and regulatory environment. According to Mckinson report (2013)
consumer facing industries have quietly grown into a significant economic force in Africas most
populous nation (Nigeria). In the coming year, retail sales will become an even bigger part of
Nigeria GDP.
Mckinson report (2013) also predicts the continuous growing of the consumer facing industries
with the emergence of middle class growth in retail sector. It is projected that between 2008 –
2020, there is $140 Billion growth opportunity in food and consumer goods in Nigeria, the
highest of any African nation. An extra 2.5% Billion people will be living in ever expanding
cities in the next 30 years with as much as 90% of the urban growth centre in Africa and Asia
(UN REPORT). The boom in the city dweller will be concentrated in certain countries with 35%
of Urban expansion occurring in India, China, and Nigeria alone between 2018 and 2050
Increasing population explosion, rural urban migration, the emerging middle class, change in the
consumer purchase behavior and aspiration pose a new opportunity in the emerging mega
economy. Another major notable factor that is also driving consumer spending is the growing
presence of women working outside the home, a trend that is prompting an increased demand for
foods offering convenience and time saving.
This kind of emerging market must be carefully served and satisfied in a way that is cognizance
of their expectation. This require the standard quality product, that is internationally measured,
the firm and competitive price, attractive packaging and shelve display, conducive atmosphere,
well spacious store outlay, good store ambiance, and large parking space and security.
As a consequence of digital disruption, a one-sided approach to retail marketing strategy is
potentially catastrophic for your business; it is like randomly walking blindfolded. An omni
channel approach (mobile-first) is the only adequate move: a complete digital customer journey
rather than separate e-commerce and physical retail experiences (Neosperience Team, on Jul 7,
2015). All studies highlight the evidence that the traditional physical store we grew up with is
inadequate to appeal empowered customers of the digital era, and to respond to the challenge of
e-commerce. Yet retailers are “dramatically underestimating the influence of digital and are
caught in a divide where they are making digital investments that primarily support their ecommerce business rather than their brick-and-mortar business.” (Neosperience Team, on Jul 7,
For decades, the core of retail growth strategy revolved around promotion, place and price. But
that was before the mobile mind shift came in to shake up the rules of shopping. We live now in
an era of rapid technological advancement, with Internet and mobile devices as catalysts for a
massive change in the retail & consumer goods industry.
Infrastructure such as power is one of the major impediments to the growth of retail store in
Nigeria. Kenya, with a GDP per capita that’s only 70 percent of Nigeria’s, has three large
retailers (Nakumatt, Tusky's and Uchumi) with a combined 107 stores and almost $1 billion
annual revenue between them. These stores offer not only a standard, formal retail experience,
but have also started online shopping. Some are open 24 hours a day. Most of Nigeria retail store
do not open 24hrs due to lack of basic infrastructure and security challenges. This is one of the
major setbacks in the industry
Mckinson report (2013) projected that between 2008 and 2020, there is $140 Billion growth
opportunity in food and consumer goods in Nigeria, the highest of any African Nation. An extra
2.5% Billion people will be living in ever expanding cities in the next 30 years with as much as
90% of the urban growth center in Africa and Asia (UN REPORT). The boom in the city dweller
will be concentrated in certain countries with 35% of urban expansion occurring in India, China,
and Nigeria alone between 2018 and 2050. Another major notable factor that is also driving
consumer spending is the growing presence of women working outside the home, a trend that is
prompting an increased demand for foods offering convenience and time saving.
Despite all these favourable economic parameters, many traditional shops, kiosk, open stores and
bukas (corner shops) fail to grow to the standard convenience retail store and the inventory of the
existing retail store stay on the shelve till close to the product expiration and will later be sold at
a discounted rate to avoid total loss. Besides, most specialty store usually target festive season
and use the low turnover product as a festive sales promo or end of the year promo at the
supposedly peak period.
the key issue why high rates of economic growth in recent years have not been translated in
urban settings into real improvement in economic opportunity- employment or job creation,
poverty reduction , is largely yet unaddressed. This can be traced to the limited understanding at
the overall or sectorial level of the Nigeria current economic geography and of sector level
organization performance in Nigeria urban metropolitan region, cities and towns.
This research work will provide an informed solution to these myriad of challenges.
Objectives of this research are
1- To investigate if the compelling advertising of FMCG brands determine the purchasing
decision of retail customers.
2- To know if product quality influence FMCG retail customer purchasing decision.
3- To find out if attractive brand packaging and product display influence retail consumer
purchasing decision
4- To enquire the effect of retail store shopping convenience on the purchasing decision of
the FMCG retail customer
5- To understand if the competitive or low pricing influence the purchasing decision of
FMCG retail customers.
6- To know if consistence product availability and accessibility determine the choice of
FMCG brand of retail customer.
My research instrument would answer the following research questions
1- Does compelling advertising of FMCG brands influence purchasing decision of retail
store customers?
2- Does product quality and uniqueness influence FMCG retail customer purchasing
3- Does attractive brand packaging and product display influence retail consumer
purchasing decision?
4- Does the retail store shopping convenience affect the purchasing decision of the FMCG
retail customer?
5- Does competitive or low pricing influence the purchasing decision of FMCG retail
6- Does consistence product availability and accessibility determine the choice of FMCG
brand of retail customer?
The assessment of the impact of retail marketing mix of FMCG brand is important to the
government in the sense that the retail store in other economy such as Wal-Mart Stores, Inc.(US)
with revenue of $ 485,873M, Schwarz Group(Germany) with revenue $99,256M, Carrefour S.A.
(france) with revenue of $84 ,131M, The IKEA Group (INGKA Holding B.V.) Netherlands with
revenue of $37,982M, W.M Morrison Supermarkets PLC(UK) retail revenue of $21,744M, Fast
Retailing Co., Ltd.(Japan) with retail revenue of $15 ,739M (Global Powers of Retailing 2018
pg19). All these retail stores contribute in not a small measure to economy GDP of their nation
and also influence the economy of other nation of the world. Government can learn through this
work to concentrate on the development of retail industry as a driver of growth.
The financial sectors would benefit by having an insight into the retail industry and how to
develop a customized product that will impact on the retail industry growth.
The entrepreneur would gain understanding of the right strategy to sell their stores to the
consumers and the producers of goods and services. Meanwhile producers will be guided on the
retail customer’s expectation and their unique characteristics in order to develop a product that
will always meet their immediate expectation and future aspiration.
Lack of Adequate time and the reluctant respondent attitude towards answering of research
instrument (questionnaire) are among the challenges encountered during this work.
The concept of Marketing Mix was first pioneered by Prof. Neil H Borden (In the Late 1940s).
But the famous 4P's of Marketing namely, Product, Price, Place & Promotion, were devised by
Gerome McCarthy (1960), These remain widely used by marketers and practitioners around the
world. Though a lot of empirical work lacks in the field of marketing mix, but several studies
confirm that the 4Ps Mix is indeed the trusted conceptual platform of practitioners dealing with
tactical/operational marketing issues (Sriram & Sapienza, 1991). Scholars substantially identify
marketing mix as controllable parameters that firms use to influence consumer buying process
(Brassington & Pettitt, 2005; Kotler, 2010). The conventional framework of marketing mix
comprises 4Ps: product, price, place and promotion (see review in Waterschoot & Van Den
Bulte, 1992). The authors in the previous literatures have agreed that the 4Ps of marketing are
not enough and do not present an adequate platform for planning of marketing activities in this
As the marketing literature evolves the 4Ps mix has been adapted to various domains, including
retail marketing (Constantinides, 2006). Embracing both services and relationship marketing
theories, retail marketing scholars have extended the 4Ps through the inclusion of elements such
as store environment, personnel, store formats and physical evidence (Baker, Parasuraman,
Grewal, & Voss, 2002; Mulhern, 1997). Most researchers suggest replacing the conventional 4Ps
mix with new concepts or adding new elements to it; Personnel, Physical evidence & Process are
factors contributing to unique customer experience as basis of differentiation and retention
(Constantinides, 2006). According to Lazer and Kelley (1961) Retail Marketing Mix includes all
the goods and services a store is able to offer to its consumers and also all the programmed
efforts of the managers that adapt the store to market environment. Over the years, different
authors have proposed different elements of the retail Marketing Mix.
Hansen (1990) proposed nine elements of the marketing: Location; Assortment; Product,
especially Private Labels; Store Layout; Price; Sales Financing; Sales Promotion; Customer
Service; Customers’ Complaints Management. Berekoven (1995) defines, ten retail marketing
elements: Assortment; Commercial Brands; Quality and Quality Assurance; Service; Price;
Advertising; Sales Promotion; Store Layout and Merchandising; Sales Force; Location.
More recently, Müller-Hagedorn (2005) considers only six policies (Location; Assortment;
Price; Promotion Planning; Sales Force; In-Store-Management). The most popular elements of
retail marketing mix are Product, Price, Place, Promotion, Personnel, Physical evidence &
Quality is a one of the most important dimension of any retail organization. Department Stores
have a high focus on quality; they emphasize more on the quality of products rather than price
(Williamson, 1986). Hypermarkets keep a large assortment of products that are both of good
and average quality, their national brands are of high quality, while the private labels are of
moderate quality (Zentes & Schramm-Klein, 2007). Hence, they give moderate emphasis on
the quality of their products. Specialty Stores offer high quality products that are hard to find in
other stores. The selection of products in a specialty store is considered exclusive, i.e. things
consumers buy to have some luxury in their lives. (Skallerud, Korneliussen, & Olsen, 2009).
Convenience Store retailers have committed to fresh, high-quality food as their driving focus'
(Longo, 2007) having a high focus on the quality of products.
Price Competition
Prices and promotional activities may affect the image that customers have from the stores
(Srivastava and Lurie, 2004). Department stores have moderate focus on price competition. They
are not as aggressive with prices as compared to their counterparts like discount stores etc
(Chong, 1996).Hypermarkets have a very high emphasis on product pricing to increase sales
volume (Cataluna et.al. 2005). Specialty Stores offer excusive products and hence a consumer
visits it irrespective of the high prices (Skallerud, Korneliussen, & Olsen,2009). Since the
convenience stores focus more on convenience, rather than price, Price of the product has
moderate importance for a convenience store.
Location of departmental store customers have been researched to associate moderate or high
importance on convenience of location as compared to a specialty store, where the location is a
lesser important factor (Schiffman, Dash, & Dillon, 1997). Hypermarkets are generally located
outside city centers (Castrillo, Forn, & Mira, 1997). Location is an important factor for
convenience stores, since they focus on consumer convenience and so does their name signifies,
they are generally located in residential areas that are easily accessible to the consumers (Wood
& Browne, 2007).
Product Promotion
Department Stores lay high emphasis on product promotion. Department stores have recorded
the highest percentage increase in loyalty card usage among consumers in the USA (Berry,2013).
Even Hypermarkets also emphasize a lot on Product Promotion by heavily using channels like
newspapers, flyers and coupons (Zentes & Schramm-Klein, 2007). Specialty Stores emphasize
moderately on retail promotions by means of mass media of promotion, rather they use medias
like social networking sites or sites like youtube etc for this purpose (Walters, 1988).
Convenience stores have very little to moderate promotions for their stores (Zentes & SchrammKlein, 2007).
Personnel Management - The role of an employee is more important at a Department store as the
customers often need assistance while shopping and hence more emphasis is paid on personnel
management, while the same research empirically investigated that convenience stores require
less of such kinds of assistances and hence a lesser emphasis on personnel Management
(Bianchi, 2009); Similarly it was researched that the competence and friendliness of workers was
an equally important factor rated by customers and retailers alike, emphasizing on the
importance of personnel management in specialty stores (Hansen, 2003). Since in-store service is
an important aspect of hypermarkets, there has to be a keen attention on personnel management,
as employees are large in number at hypermarkets (Zentes & Schramm-Klein, 2007).
Ambience/Display - Department stores are nicely decorated and well organized stores with a
high focus on the Ambiance of the store (Greenley & Shipley, 1992);(Jones). A lot of time is
devoted to enhance the visual merchandising of these stores. It refers to arrangement of
merchandise and Displays. Specialty Stores centre their focus on product display as the
consumers use it as an indication of the quality of product and form perceptions about the store
image (Gagliano & Hathcote, 1994). The architecture of Hypermarket is cost effective with a
simple store design and a functional oriented store atmosphere, while convenience stores have
average looking store atmospherics owing to their limited scale of activities (Zentes & Schramm
- Klein, 2007)
Operational Excellence - Department Stores lay a high emphasis on operational excellence
because of the large number of product lines and substantial scale of activities (Doubman &
Whitaker, 1927). Hypermarkets deal with a considerably large number of products lines and
breadths, and they have a huge setup to manage, hence they give more weightage on achieving
operational excellence (Castrillo, Mira, & Gurdjian, 1998). Though nothing could be found much
on the retail store operations of specialty and convenience stores, so based on the scale and scope
of their activities it has been hypothized that these stores give moderate emphasis on operational
Barbara Farfan (August 29, 2018) define Retail as the sale of goods to end users, not for resale,
but for use and consumption by the purchaser. Retail involves the sale of merchandise from a
single point of purchase directly to a customer who intends to use that product. The single point
of purchase could be a brick-and-mortar retail store, an Internet shopping website, a catalog, or
even a mobile phone. The retail transaction is at the end of the chain. Manufacturers sell large
quantities of products to retailers, and retailers attempt to sell those same quantities of products
to consumers. While Wholesalers sell in large bulk quantities, without worrying about many of
the aspects of retailing that consumers expect like visual merchandising. Wholesalers do not
want to deal with a large number of end-user customers. Rather, their goal is to sell large
quantities to a small number of retailing companies (https://www.thebalancesmb.com/what-isretail)
Retail formats today have made the life of the customers hassle free and convenient. This has
eventually resulted in aggressive competition amongst retailers and opened a gateway of
metamorphic innovating store concepts in the market (J.Maronick & M.Stiff, 1985). Retail
formats can be classified into a number of ways. Based on ownership, Merchandise offered, nonstore, service based etc e.g Hypermarkets, Department Stores, Specialty Stores and Convenience
According to Barbara Farfan (Aug 2018) retail store can be broadly categorized as follows:
Department Stores: Sell a wide range of merchandise that is arranged by category into
different sections of the physical retail space. Some department store categories include
shoes, clothing, beauty products, jewelry, housewares, etc. Department Stores usually
deal with the sale of apparel, furniture, home appliances, and electronics. They stock high
quality assortment with an emphasis on the length and breadth of the assortment. They
give limited variety to the consumers and focus more on quality. They cover area of Less
than 10,000 sq ft. These are the general merchandise retailers offering various kinds of
quality products and services. Examples of department store retailers include A.G
Leventis Nig,Plc Lagos, Spar Nigeria,Happy Point supermarket and Dept Store River
State, Payless Departmental store Abuja. (https://www.directory.org.ng/shopping)
Grocery Stores and Supermarkets: Sell all types of food and beverage products, and
sometimes also home products, clothing, and consumer electronics as well.The instance
of grocery store in Nigeria are Evron Food Store, Delis Grocery Store, Adidde store e.t.c
Warehouse Retailers: Large no-frills warehouse-type facilities stocked with a large
variety of products packaged in large quantities and sold at lower-than-retail prices.
FOUANI Nig Ltd, Alma- Store e.t.c
Specialty Retailers: Specialize in a specific category of products. Specialty store varies
according to the type of retail product. Specialty stores offer a vast array of product for
every category of the goods that they deal in. A conventional specialty store concentrates
on a limited number of complementary merchandise categories and emphasizes on a high
level of service. They are generally small in size whereas the size can vary from large to
small depending upon the type and category of the product. These are highly specialized
stores with limited assortment of products.It ranges from Appliances and equipment e.g
Chevrolet,Chosyaris motor,A.C okocha Motors, Phones and accessories e.g Slot,. Super
Market and Mall e.g
Shop Rite e.t.c
are some of the specialty store in Nigeria
Convenience Retailer: Convenience stores (c-stores) is determined by the variety of
products that they store. They can be as small as a kiosk with a size of around 800 sq ft or
as vast as 4000 to 5000 sq ft. Their prime attraction is the accessible location and
convenience that they provide to the customers. The items stocked by convenience stores
are the daily use products. Most of the sales of convenience stores come from refrigerated
goods (Kirby, 1986). Along with convenience of location, these stores also offer
extended working hours to the public (NACS online, 2011). They provide the maximum
ease and convenience of buying a product for the consumers (Bianchi, 2009), rather than
competing on prices or product varieties (Welsh, Bent, Seaman, & Ingram, 2003), they
compete more on customer convenience.Usually part of a retail location which sells
gasoline primarily, but also sells a limited range of grocery merchandise and auto care
products at a premium "convenience" price from a brick-and-mortar store. Example of
convenience store in nigera are ;SALUBATA, GLOD STUFF,CORNER SHOP,KIDS
Hypermarkets are self-service retail formats that provide a vastly wide variety of
merchandise for the consumers to choose from. A Hypermarket is a large establishment
combining the characteristics of a supercentre and a department store. These
establishments are generally larger in size and cover 1, 00,000 sq ft or more floor space in
a retail outlet. Their business model focuses on high volume and low margin sales. They
stock around 35, 000 to 60,000 Stock Keeping Units (SKU). Food items constitute
around 60 to 70 percent of the total sale of hypermarkets (Castrillo, Mira, & Gurdjian,
The types of retail outlets in Nigeria according to Business day intelligence report – Nigeria
Retail Sector Report 2014, can be classified along the lines of the NAICS which provides a
platform for the collection of comparable statistics across North America. The report classifies
Nigerian retail outlets into four categories, based on their structure and scale of operation. For
this particular research, we have taken four kinds of retail formats.
The traditional open market outlets; the traditional retail market is the most common
in Nigeria. This system of trade comprises roadside retailers and those who operate from
stalls in the open markets. Essentially, this retailer class includes all transactions that
occur on stalled traffic and on congested street corners. It is estimated that transactions
worth more than N1 billion are carried out by these retailers daily. The traditional retail
market are not well regulated, traditional open market retailers do not pay taxes, and may
deface the environment where city plans do not support their existence in the particular
areas where they conduct their businesses
This has led governments across the country to continue to impose trade restrictions on
them. However, they still make up a remarkable part of the retail industry. Most
Nigerians still patronise these outlets because of their proximity to homes, the personal
shopping experience they offer, and the cost of the commodities they offer consumers.
Prices are often negotiable in this class of outlets. Other than this, they hardly offer the
alluring shopping experience with more sophisticated outlets offer (Nigeria Retail Sector
Report 2014)
Unit neighbourhood stores or supermarkets; Unit neighbourhood stores or
supermarkets in Nigeria are those stores that do not have more than one branch. They are
located within neighbourhoods they serve and bear an assortment of items which are
needed by households. They are often owned by single individuals and operated by
family members and a few employees. Often, these commodities are stocked and
dispensed to customers who live within the vicinity of the stores. Before the reemergence of multiple branch supermarkets, these stores served as the alternative to the
traditional open market outlets. Unit neighbourhood stores/supermarkets have been
known to grow into multiple branch supermarkets/franchises. Often, the entrepreneur
begins with one outlet and spreads as the business becomes more profitable. Many major
franchises have developed from Unit neighbourhood stores/supermarkets (Nigeria Retail
Sector Report 2014)
Multi-branch supermarkets/franchises; multiple branch supermarkets/franchises in
Nigeria are small or medium-sized retail outlets which offer assortments of products and
are scattered across major cities. The distinguishing factor between Unit neighbourhood
stores/supermarkets and multiple branch supermarket/franchises is that in the case of the
later, the same shop is replicated in several locations. Good examples of this type of
outlets include Best Choice and Addide which have major presence in Lagos. In some
cases, these outlets offer unique customer experiences and services which mega malls
offer. In other cases, too, they are organised like departmental stores (Nigeria Retail
Sector Report 2014)
Mega Supermarkets/shopping Malls; Mega supermarket/shopping malls are large
multi-product offering retail outlets in the mould of Shoprite, Grocery Bazaar and SPAR.
Their selling point include the unique customer experience they offer, quality products,
and in some cases low prices. Often, they are patronised by the middle class. The
resurgence of sophisticated retail outlets in Nigeria can be credited to this set of retailers.
There are still less than 20 of this type of outlets spread across Nigeria(Nigeria Retail
Sector Report 2014)
While the traditional open market retail outlets constitute over 70 percent of the retail structure
of the country, the trend is changing in many cities. The traditional system is gradually shrinking
while other forms of retail are expanding (Nigeria Retail Sector Report 2014)
Online shopping is a form of electronic commerce which allows consumers to directly buy
goods or services from a seller over the Internet using a web browser. Online stores typically
enable shoppers to use "search" features to find specific models, brands or items
Nigeria Retail Sector Report 2014 confirm that sophisticated retail activities, e-retail or online
retail took root in Nigeria because of expansion in the use of the internet, rise of the urban
middle class and the convenience it offers. Online retail was localized in Nigeria less than 10
years ago. Before then, most Nigerians who had to purchase things that were not available on
local shelves had to resort to foreign platforms like e-bay and Amazon or wait till they travelled
aboard. Not that Nigeria’s online retailers have suddenly made everything available, but they
have helped replicate some of the luxuries which foreign online retailers offer locals. By early
2014, the number of online retailers in the country stood at roughly, 60, with some significantly,
bigger than others. The market has continued to attract new entrants and venture capitalists who
have invested massively in most of the online startups. Over the past few years, the number of
individuals who made purchases online continues to increase. The bulk of purchases revolve
around light electronics, luxury goods, groceries, clothing, phones, books, food items and other
small commodities.
With internet penetration, according to the World Bank, at 32%, by December 2012, Nigeria is
the biggest internet market in Africa (Though the level of internet penetration may really be
much higher, considering the number of Nigerians who use their phones to access data on the
internet). Of the Nigeria’s 115 million mobile phone subscribers, according to data made
available by the NCC, 64 million use their phones to access internet services regularly. Between
2000 and 2012, internet penetration grew from a paltry 0.06% to 32%, and there are indications
that this trend will continue in the foreseeable future. The major factors fueling the growth of
online retail in Nigeria include the growth of the middle class, improved internet literacy, better
guarantee of transactions online, enhanced internet banking capacity of local banks, convenience
and the creativity of online retailers. Less than a decade ago, Nigeria’s few online retailers did
not fully meet the needs of the population in terms of the assortment of what they offered and the
kind of strategy that met the needs of most locals. But as time progressed, the assortment of
products improved with retailers even focusing on specific commodities. Among the most
popular are Jumia, Konga, DealDay, and Taafoo, e.tc. According to Ventures Africa as at late
2013, Nigeria’s internet business industry was worth $250 million.
However due to structural and economic challenges, some of the online retailer have been
restrategising their operation in order to cut the cost and meet overhead and also to be able to
satisfy customer. Professor Ndubuisi Ekekwe May 6,2018 tagged brilliance of New Konga
strategy,” The Punch wrote a piece today where it quoted the CEO of Konga, Nick Imudia. The
business leader revealed his strategy to redesign not just Konga but the entire Nigerian
ecommerce sector.
Commenting on the acquisition, Chief Executive Officer, Nick Imudia stated, ‘Our mission is to
revolutionise e-commerce, not just in Nigeria, but the whole of Africa and Kong is at the heart of
this bold move.
“On the short term, we would re-position the business on the path of profitability. Our mid-term
goal would see to the establishment of more stores across Nigeria, while our long-term plans will
be focused on seeing Konga well established in many other African cities.” The professor is also
optimistic of the sustained process in the online retail industry and recommended hybrid
commerce strategy comprises of offline and on-line business integration strategy.
Nigeria FMCG industry
Alternatively called as CPG (Consumer packaged goods) industry, Fast Moving Consumer
Goods Industry (FMCG) primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables
which are normally consumed by the consumers at a regular interval. Some of the prime
activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also
engaged in operations, supply chain, production and general management.
FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector
with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by
2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of
Gross Domestic Product (GDP).
Common FMCG products
Some common FMCG product categories include food and dairy products, glassware, paper
products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing
and stationery, household products, photography, drinks etc. and some of the examples of FMCG
products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes,
watches, soaps etc.
Some of the well-known FMCG companies are Nestlé, Reckitt Benckiser,Unilever, Procter &
Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars, , Cadbury's and
GlaxoSmithKline, PZ, etc. Most of the leading FMCG are manufactured and marketed in Nigeria
by local subsidiaries of multinationals such as Coca Cola, Guinness, Unilever, P&G, PZ, Reckitt
Benckiser, Nestle, Cadbury's and GlaxoSmithKline, etc. Increased marketing activities of these
industry players have further stimulated demand among consumers. For instance, earnings for PZ
and Unilever grew appreciably by over 20% over the past five years. Although the impact of the
credit crunch and inflationary pressures from rising commodity prices were felt in 2008, the
sector has since rebounded.
Vietnam ( May10,2018) reporting for Nielson – The nationwide fast – moving consumer goods
(FMCG) sales of traditional trade channel continued to experience a dip in the first quarter of
2018, dropping to - 1%, according to Quarterly Market Pulse report released by Nielsen Vietnam
– a global measurement and data analytics company. However, the report showed that while
traditional trade slowed down in both urban and rural areas, FMCG sales of modern trade in
urban region continued to gain momentum.
According to the report, the slowdown of nationwide FMCG sales of traditional trade was seen
across six super FMCG categories ( beverage- including beer, food, milk base, household care,
personal care and cigarettes). Only beverage and cigarette showed a positive growth rate at 0.6%.
Other four categories such as personal care, homecare, food and milk base all showed a decline
He added “2018 is expected to be the year of innovations/new launches as well. The first 3
months of launch decides 70 - 80% of the launch success and the go – to – market
implementation, not necessary the ATL/Communication efforts, is the decisive factor”
Created by the Researcher, 2018
Research conducted on the Elements of the retail marketing mix: a study of different retail
formats in India (Saba Azeem and RRK Sharma 2015) is anchored on the eleven parameters of
retail marketing mix and adopted the survey research method with the administration of 210
questionnaires to the store or functional managers based on convenience sampling method. The
result of the research work suggested that reveal that all the strategy dimensions are of high
importance for department stores. Whereas, for Hypermarkets and Specialty Stores, they are
either High or moderately important. There are only two strategy items i.e., Big floor space &
Loyalty Programs, that are of low importance for convenience stores. A summary of results
reveal that all the strategy dimensions are of high importance for department stores. Whereas, for
Hypermarkets and Specialty Stores, they are either High or moderately important. There are
only two strategy items i.e., Big floor space & Loyalty Programs, that are of low importance for
convenience stores.
The marketing mix management paradigm has dominated marketing thought, research and
practice since it was introduced almost 40 years ago. Today, this paradigm is beginning to lose
its position. New approaches have been emerging in marketing research.Despite the paradigm
shift in the perception of the fundamentals of marketing taking place today, ANA MARIA
BOBEICA opine that Marketing researchers have been passionately convinced about the
paradigmatic nature of marketing mix management and the Four P model. To challenge
marketing mix management as the basic foundation for all marketing thinking has been as heretic
as it was for Copernicus to proclaim that the earth moved.
From a management point of view the Four Ps may have been helpful at one time, at least for
marketers of consumer packaged goods. The use of various means of competition became more
organized. However, the Four Ps was never applicable to all markets and to all types of
marketing situations. The development of alternative marketing theories demonstrates that even
from a management perspective, the marketing mix and its Four Ps became a problem.
On the other hand, marketing is more and more developing in a direction where the toolbox
thinking of the marketing mix fits less well. In industrial marketing, services marketing,
managing distribution channels and even consumer packaged goods marketing itself, a shift is
clearly taking place from marketing to anonymous masses of customer to developing and
managing relationships with more or less well-known or at least somehow identified customers.
Marketing mix management with its four Ps is reaching the end of the road as a universal
marketing approach. Some authors now use the 7P Model.
Developments on the commercial landscape and changes in consumer and organizational
attitudes over the last four decades, have frequently prompted marketing thinkers to explore new
theoretical approaches addressing specific marketing problems and expanding the scope of the
marketing management theory. The most important landmarks of the evolution of the marketing
management theory include…”the broadening of the marketing concept during the 70’s, the
emphasis on the exchange transaction in the 80’s, the development of the Relationship Marketing
and Total Quality Management in the 90’s” (Yudelson 1999) and last but not least the emergence
of Information and Communication Technologies as major actors of the 21st century Marketing.
At the same period the consumer behavior has also evolved; one of the noticeable changes has
been the gradual evolution from the mass consumer markets of the 60’s (Wolf 1998) towards
increasingly global, segmented, customized or even personalized markets of today (Kotler et al.
2001) where innovation, customization, relationships building and networking have become
issues of vital significance. The developments on the ground have prompted the development of
new theoretical approaches dealing with specific rather than general marketing problems and
Significant cultural, social, demographic, political and economic influences during the last
decades of the 20th century, combined with rapid technological advances have radically
transformed the consumer’s needs, nature and behavior. The new consumer has been described
as existential, less responsive to traditional marketing stimuli and less sensitive to brands and
marketing cues.
The Marketing Mix Revisited groups on the new consumer’s behavior is changing or
Diminishing (Christopher 1989). More researchers share the view that the modern consumer is
different: demanding, individualistic, involved, independent, better informed and more critical
(Capon and Hulbert 2000; Lewis and Bridger 2000). A factor underlining the change is the
increasing consumer power and sophistication due to wide availability of affordable personal
computing power and easy access to online global commercial firms, networks, databases,
communities or marketplaces. These developments have intensified the pressure on marketers to
switch from mass marketing approaches towards methods allowing personalization, interaction
and sincere, direct dialog with the customer.
Such approaches allow marketers not only to improve communications with their target groups
but also to identify the constantly changing and evolving customer needs, respond quickly to
competitive movements and predict market trends early and accurately.
The retail marketing theory embraces elements of both services marketing and relationship
marketing as previously discussed. E. Constantinides arguments against using the 4Ps as basis
for services and relationship marketing can be easily expanded to retail marketing.
Yet retail marketing includes some additional, distinctive aspects that the Marketing Mix also
fails to address: physical evidence, shopping experience, atmosphere (Mulhern 1997; Kotler
2003) and personalized rather than mass contacts (Wang et al. 2000). The idea is that the 4Ps do
not present an adequate platform for planning of marketing activities in this domain. Most
researchers suggest replacing the mix with new concepts or adding new elements to it. Personnel,
Presentation and Retail Format are factors contributing to unique customer experience as basis of
differentiation and retention.
It is imperative to understand that none of the new 7Ps marketing mix elements can be used in
isolation in order to achieve the profitable customers’ satisfaction. All the variables must be mix
in the correct proportion base on the consumers’ requirements, demography and the store
location and the composition of the type of consumers at that location.
It is established that the retail marketing mix variables cannot be used in isolation rather it must
be rightly combined (Mix) in the correct proportion. The ratio or percentage required of each of
the mix in different retailing activities is not discussed or explained in the theory.
Survey research design was adopted in conducting the research with the quantitative and
qualitative method of primary data collection through the administration of two different types of
structured questionnaires to the targeted five retail stores customers in Ray field and Ahmadu
Bello Market in Jos North, plateau state and the retail store customers across the Nigeria retail
outlets through the on-line questionnaire administrations using google form. The cashiers,
attendants and the receptionist of the target retail stores were also informally interviewed to
understand the average number of patronage per day and the extent of the store facilities that will
provide expected customer experience, expectation and aspiration.
Population/Sample frame – The population for this study is the customers of five retail outletsNo Name (Convenience store), Winlot Store (Departmental store), Save a lot
(Departmental Store), Oluwalogbon Supermarket, cash&Carry (specialty Store) in Ray
field and Ahmadu Bello Market in Jos North, plateau state. The information gathered from the
cashiers of the retail stores from their sales record, the average customer patronizing each of the
retail store is 200 customers per month and 1000 for the five stores. i.e N = 1000.
Because of the reluctant attitude of the targeted retail store customers in completing the research
instrument despite the Pen attached to the filling of questionnaire as a free gift, and the time
constraints in completing the research work, online questionnaire administration was devised to
elicit more responses from the retail store customers.
8000 online respondents were arbitrarily targeted as population. The completed questionnaire
will automatically be sent to my e-mail for the analysis after completion. The link for online
responses is www.goo.gl/forms/MS96jsYE864yg153
Sample Size: (Targeted Store sample size)
n= N/1+N(r) 2 (Taro Yamane 1967),
Where n = sample size, N = population, r = 10% Margin of error
Therefore n = 1000/1+1000(.1) 2,
N = 1000 / 1+ 1000(0.01) = 1000/11 = 90 samples
Sample size for online population
80 responses were gotten from the online survey from different store, it is assumed that each
store has 100 number of minimum retail customer. This gives us a total of 8000 retail customers.
Using Taro Yamane
n= N/1+N(r) 2 = 8000/1+8000(0.01)
n= 8000/81 = 98 samples
Total Sample = 98 + 90 = 188 samples
Sampling Technique – The purposive sampling technique was used to select the sample by only
chosen the valid responses. Any respondents that mark two different responses under one
question will be regarded invalid. For online only respondent, affirmative responses to the
question “Do you patronize retail store” is only considered.
Only 44 respondents answered and returned the questionnaire from the 5 targeted stores out of
which 40 questionnaires were valid for analysis.
77 online responses were analyzed out of 80 returned questionnaire. 3 questionnaires are invalid.
Though this is not up to the sample of 98, the margin of 21 were regarded as or assumed to be
invalid responses. The total number of analyzed research instrument is 117.
Validity & Reliability – The content and the construct validity was tested by pilot study of the
questionnaires to the convenience stores within the neighborhood as well as the insight of my
veteran researcher Dr. Dan of University of lagos, Akoka. The reliability was tested by test-retest
of the research instrument.
Frequency distribution was used in the data presentation and simple percentage was used in data
8 - I purchased the choice brand because of attractive shelve display
Strongly Agreed
Strongly Disagreed
Field Report
31.7% of retail customer purchases the brand as a result of attractive shelves display.
9 - I purchased the choice brand because of attractive brand package
Strongly Agreed
Strongly Disagreed
Field Report
42.74% of retail customer purchases the brand as a result of attractive attractive brand package.
10 - I purchased the choice brand because of brand quality or unique attribute
Strongly Agreed
Strongly Disagreed
Field Report
48.72% of retail customer purchases the brand as a result of brand quality and unique attribute.
11 - I purchased the choice brand because of brand sales promo
Strongly Agreed
Strongly Disagreed
Field Report
32.48%, the highest responses, of retail customer are undecided to the reason that they make
their retail purchase as a result of ongoing sales promo, this is followed by 29.06% respectively
for agreed and non-agreed.
12 - I purchased the choice brand because of brand competitive or low price.
Strongly Agreed
Strongly Disagreed
Field Report
42.74% of retail customer purchases the brand as a result of competitive and low price.
13 - I purchased the choice brand because of the compelling Advert.
Strongly Agreed
Strongly Disagreed
Field Report
34.19% of retail customer purchases the brand as a result of compelling advert.
14 - I purchased the choice brand because of the Shopping Convinience (conducive
Strongly Agreed
Strongly Disagreed
Field Report
49.57% of retail customer purchases the brand as a result of conducive atmosphere.
SN Marketing Mix
attractive shelve display
37 (Agreed)
attractive brand package
50 (Agreed)
brand quality or unique attribute
57 (Agreed)
brand competitive or low price.
50 (Agreed) 42.74
Shopping Convinience
58 (Agreed) 49.57
Field Report
From the report 58 respondents representing 49.57% make a purchasing decision as a result of
shopping convenience. This is followed by product unique attribute of 57 respondents
representing 48.72%. The brand packaging and pricing shared the same numbers of responses of
50(42.74%) each. Shelve display comes last in the degree of preferences of the retail marketing
mix of 37 representing 31.7%.
brand sales promo
Compelling Advert
38(Neutral) 32.48
57(Disagreed) 34.19
In the responses 38 respondents representing 32.48% are neutral to their purchasing decision as a
result of brand sales promotion while 57 respondents representing 34.19% disagreed that
compelling advert influence their purchasing decision
The primary objective of this study is to find out the most significant retail marketing mix
element that will aids or enhance sales turnover of FMCG in retail stores, especially the
convenience store in Lagos Nigeria. This will have a multiplier effect on the need satisfaction
and also to meet the anticipation of retail customer of FMCG effectively. The Producers of
FMCG brands will also be able to produce and distribute brands to meet retail customers’ needs
and anticipation. This research work is anchored on the integrated retail marketing mix theory
which propound that the marketing mix variables or components of retailing should be used
concurrently or simultaneously in the different ratio in order to achieve the profitable customer
satisfaction and experience. The retail store owner or investor will also be able to customize their
retail business operation to meet the expectation of their customers’ base on their unique
attribute, demography and diversity.
It can be deduce from the retail customers response that majority of them respond favourably to
the shelve display,packaging, product or brand quality or unique attribute, competitive or low
price and shopping convenience marketing mix in different ratio. On the other hand , majority of
the retail respondents also disagree that their purchasing decision is influenced by compelling
advert while majority are indifferent towards sales promo.
On the scale of preference on the favorable or positive marketing mix components, shopping
convenience is more favoured , followed by brand or product quality. packaging and low
price(both share the same intensity) and shelve display come last in the scale of favourable retail
store marketing mix.
However, compelling advert do not receive the favour of majority of sampled retail store
respondents while the salespromo components is neither favoured nor disfavoured by majority of
retail sampled respondent.
The major finding that is discovered is that no major marketing mix component is absolute and
can be used in isolation of the other. This is testifying to the veracity of the grounded integrated
marketing mix component propounded in the research.
Following the result and findings of the research, the following recommendations suffix:
1- Retail store owner, investors and the FMCG brand owner should lay more emphasis on
the retail shopping convenience and store format
2- The retail store owners (Specialty,Convinience,Departmental,supermarket etc) should
mix their marketing mix variable in the order 1-shopping convenience, 2-Product or
brand unique attribute, low price and packaging(Vice Versa) and attractive shelve
3- Retail store should reduce emphasis on the advertisement of their in-store brand
4- Retail store should also reduce emphasis on the sales promo
5- Retail store owners should store product or FMCG brands of high perceived or equivalent
quality functionally or in terms of unique attribute with low price rather than the producer
sales promo strategy.
This research work is only limited to the components of retail marketing mix as a whole without
considering the subcomponets of each of the marketing mix. For instane retail store convenience
comprises of some other variable such as parking space, store ambiance, security, store air
perfume, light music or instrumental, ease of navigating store, etc. this research work do not go
in detail into all these and that can be another subject of further research.
The marketing and its variables evolves with development and information technology. This
work does not consider the various information technologies that may also exert influence on the
purchasing decision. As a result of the improvement in information technology, The marketing
mix variable may be expanded to accommodate the influence of information technology on the
retail store customer.
Also online retail store is still developing in Nigeria and there is a lot of prospect, though with
challenges too, it is another prominent researchable topic to further explore
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Olajide Olutuyi ,CEO Top-Olax Energy Ltd. He is on the Board of Calgary Quest School,
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Professor Ndubuisi Ekekwe May 6,2018 tagged brilliance of New Konga strategy
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www.goo.gl/forms/MS96jsYE864yg153 (google form response)
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Marketing Education, Apr 99, Vol. 21, issue 1, p 60.
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