Thursday, April 23, 2015

Ace Roots vs. Orijin: Renewed Drive to Win Consumer Loyalty

After many encounters and bloodless wars, Nigerian Breweries and its main rival in the market, Guinness, are back in the boxing ring as they intensify efforts to push Ace Roots and Orijin respectively, Raheem Akingbolu reports.



Few months after Nigerian Breweries introduced its first-ever “Ready-To-Drink” product called “Ace- Passion Apple Spark” with which it intended to tackle Guinness’ Snap Apple Alcoholic drink, the company raised the stake recently with the introduction of Ace Roots. To market watchers, the new entrant also has a mission; to dislodge Orijin, an herbal drink from the stable of Guinness that has continuously held tight to that segment of the market.

In Lagos, where Ace Roots was first launched, the company was clever in its presentation and setting of the venue to let the few distributors present know the naturalness of the new comer. Towards the entrance of the venue, guests were welcomed with a bold banner with the inscription “Let’s take you back to your Roots”.

Aside a documentary that pointed out the company’s INVESTMENT into research about herbal formulation and consumption in Nigeria, a senior officer of Nigerian Breweries was bold to give the details of the components of the new drink.

After a few weeks assessment of the Lagos market, effort has begun to enter the regional markets. The brand stormed the ancient city of Ibadan recently with the trade launch to distributors and retailers, drawn from Ibadan, Oyo, Ogbomosho, Oshogbo, Ilesha zone.

The market

Though the herbal market is new, the rivalry between Guinness and Nigerian Breweries has been on for a while. The subtle war for the leadership of the beer market has particularly grown in recent time as a result of the threat pose by wine and other beverages.

More than before, INVESTMENTS in marketing and other positioning strategies have suddenly jacked up in the last three years.  A few factors have been attributed to this but the most recent opinion in this regard is that the market has started picking up after a little lull that led to decline in the growth of the industry and each of the players is working hard to be on the front seat.

There is also the argument that the expansion of the wine and spirit market has become a thorn in the flesh of top players in the beer market. It is believed that a few urbane consumers are now moving away from beer consumption and embracing spirit and wine. Pundits believe that the various factors have influence the decision of promoters of beer brand.

But this has been dismissed by stakeholders in the beer market, who have consistently argued that the market is daily growing and so there is no cause for alarm. To them, what are going on are natural trends in the market, to innovate, refresh and keep the patrons.

In the last few months, handlers of all the brands; both in the stout and beer categories have involved in one or two activities to extend their frontiers as well as bonding more with consumers.

The introduction of Orijin by Guinness Nigeria was an instant hit in the market. The level of acceptability of both the bitter and the herbal drinks sure attracted analysts and other players in the market.

Ace Roots Chances

With a company like Nigerian Breweries to ride on, the market penetration may be an easy task for Ace Roots and its handlers. It is believed that the brand will have a big marketing budget and good distribution networks to play with.
Considering the fact that the company has successfully sustained top brands in the market with relevant activations, Ace Roots may also make headway in the market.

The acceptability of alcoholic herbal drink in market the market may also be an advantage. The need to reflect and appreciate African taste has made the new drink attractive to consumers. Until 2011, when Alomo Bitters emerged in the market and became the toast of many consumers, the market did almost not exist. Though there were pockets of local products that appeared to be filling the gap, their presence was not felt until the herbal brew produced in Ghana showed up in the market.

To position Alumo Bitters, its promoters had employed a special branding myth that was strung around enhancement of sexual prowess. Within a short time, this, and the fact that it was easily affordable, made the profile of Alumo Bitters to skyrocket.  A few years ago, when this reporter visited the Kasapreko Company Limited, where the drink is being produced, the management admitted that Nigeria market boosted the fortune of the product beyond imagination.

Today, the situation has changed, as many brands have since come on board to challenge the monopoly of Alomo. As at the last count, not less than 10 Nigerian companies are currently offering bitters to consumers. The list include; Origin from the stable of Guinness Nigeria, Osomo Bitters (by Yem-Kem), Sapiro (by Yoyo Bitters), Agya Appiah Bitters (also from Ghana), Pasa Bitters, among others.

Herbal drinks received immediate consumer acceptance from the beginning because consumers needed something different from lager beer.

With the financial muscle of Nigerian Breweries, getting Ace Roots to the top may not be difficult. As a strategy, the company has assured its teeming consumers that Ace Roots will offer better in terms of values than Orijin.

Positioning

According to the company’s Zonal Business Manager – West, Opeyemi Oluwalusi, Ace Roots is a product of painstaking research and response to consumers’ retailers and distributors’ demands and the result of Nigerian Breweries Plc’s in-depth consultations with critical stakeholders before its intervention in the herbal mix section of the beverage drink market.

Oluwasusi, who spoke at the Ibadan launch said: “At Nigerian Breweries Plc., we love to respond to consumers’ demands. You will bear me witness that your feedback from consumers and critical stakeholders have continued to play critical roles in our decision making process. When our competitor came up with her brand sometimes last year and stakeholders like you and our teeming consumers started asking when is Nigerian Breweries going to come out with her own brand of herbal mixture drink?  We responded by appealing to you to exercise patience as we need time to carry our proper research and consultation with you (retailers, distributors), including teeming consumers and other critical stakeholders before we can make a decision. The result of that painstaking research and consultation is what we are launching and unveiling to you here today – Ace Roots,” he said.

Speaking further, the zonal business manager stated that Ace Roots is produced with the, wellbeing and welfare of the consumer in mind. He further stated that Ace Roots composition include natural herbal extracts from roots, leaves, kolanut, ginger roots and  chilli pepper. Others are; sweet orange, bitter orange, ginseng roots cocoa bean and others.

In what looks like a direct comparison, the NB spokesperson has also pointed out that the herbal mix comes with the lowest sugar content in the market. “Whereas there are herbal mixtures with as much as five cubes of sugar, Ace Roots has very low sugar content of just one cube. Aside this, Ace Roots is made with actual herbal juice extract from age-long roots, leaves and herbs. Its alcoholic content is moderated at six percent, that’s a little higher than lager beer and slightly lower than stout beer beverages. More importantly, Ace Roots is entering the market with great value that takes care of the consumers’ purse. I can assure you that Ace Roots will not bore holes in your pockets.’’

Oluwalusi added that the beverage is sweetened with low calories that were tested and accepted as healthier replacement for sugar.

With the determination to explore other regional zones, market watchers are expecting a fresh competition in the market, especially as its success can also affect the fortune of some other brands that are making waves in various regional markets.

Courtesy: Thisday

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