Marketing in Africa: Finding the perfect fit for Ghana

In the days of old, town criers, gong gongs and banners were but a few of the methods employed by individuals to create awareness for their goods and services. Shoemakers, bread sellers, tailors, etc would come up with songs and chants as they walked past houses and rooms, all in a bid to gain publicity. In Ghana, these can still be seen, especially when one pays a visit to the marketplace.
According to africanoutlookonline.com, the African traditional media are the indigenous means of communication in various countries. They reflect in the various talking drums, folk songs, drama, festivals, town criers, traditional wears, the artifacts, art works, paintings, folklore, among other cultural architecture that reflect in the palaces, shrines, and African cities, towns and villages.

With the advent of internet, radio and television in Africa, a lot of marketing and advertising has moved to these areas. Many Ghanaians have fond memories of theme songs from adverts like Chocomilo, Sunlight and Royco Shito Mix. I believe many of those who use the internet are seeing “Red” everywhere due to the flurry of Vodafone adverts. Indeed, marketing in Ghana has come a long way.
These advances in marketing can be linked to the progressing economy, not just in Ghana, but Africa as a whole, which is becoming more business-friendly every year. Accenture.com has observed this to be as a result of fewer conflicts, more democratic elections, higher economic growth rates and improved business regulation. This fact has been recognized by the World Bank’s 2009 Ease of Doing Business report, which highlighted Africa as a continent that is making strides toward becoming a business-friendly regulatory environment.

One of the key elements of doing business in Africa has been observed to be the predominance of individual self-employed vendors. Nairobi alone has an estimated 100,000. This is obviously tricky for financial institutions such as banks that wish to tap into these businesses - many of whom have little or no credit history. Stanbic Bank in Nairobi made use of a tool that enabled portable psychometric testing of potential loan recipients, rapidly assessing their risk tolerance, ethics, honesty, intelligence and business skills. Seed loans with ‘graduation plans,’ which allowed the bank’s business with a given customer to grow as the customer’s credibility was established, were used.This may be a good initiative but the question of whether or not it can be applied to the Ghanaian market needs to be asked; mainly, whether or not the right systems are in place for smooth implementation of such a project. Nana Yaw Kesse of First Capital Plus believes that the feasibility of such a project would be highly dependent on the tracking systems available to trace loan recipients. Citing First Capital Plus as an example, he spoke of things taken into consideration before loans are given out; finances, business assets, market size, sales and banking records are used as a check on credibility of figures. Focus is placed on hard facts as opposed to softer metrics. He however opined that the propensity for one to pay back the loan as indicated by the hard facts can be a measure of one’s credibility. Mr. Kesse added that if it was a small town, it would be easier to gain access to a loan because the people knew each other, but in a big city like Accra, where tracing may be difficult due to inefficient residential address system, identification systems amongst others, more checks would need to be put in place. This notwithstanding, the banks in Ghana can try.

Many Africans live on less than $1 a day. This may pose a problem for some companies which aim to serve all African consumers, and ultimately find the most profitable way to make its products available and affordable for the poorest Africans. In achieving this, consumer goods giant, Unilever, created the small unit pack/low unit price, where smaller than usual packs of detergents or salt were sold to consumers. In Ghana, a similar principle is being applied by the likes of Nestle where products such as Milo are being sold in packs as small as 25g. With more and more companies entering the Ghanaian market, there is definitely a wealth of opportunities available for Ghana. Even though the market in every country is different, there is a lot that can be learnt from what is being done in the other African countries, which if properly applied to Ghana, will successfully win lot of points for businesses.


0 comments:

Post a Comment

Labels

Recent Posts

Facebook