What you Need to Know when Bringing New Products Into African Markets

By Cem Perdar

To run a successful business in Africa, it is obligatory to undersand the market and its needs. With the right product and a suitable marketing strategy, long-lasting business markets can be established in the medium term. In addition to the quality of the selected product, its permanent supply and market entry price are also important factors in whether the product will gain a sustainable place in the market or not.

Determining the correct product

Just like with the rest of the world, Africans have long-standing habits about their product preferences. The product to be offered must both meet the needs of the people at the highest level and at the same time be budget-friendly. Today, since the economic conditions are getting harder, price-quality performance is of great importance in people’s preferences. This is why before launching the selected product, a detailed market and competitor analysis should be done from A to Z.

Finding the appropriate distributor channel

Identifying a local business partner is as important as identifying the right product. At the end of the day, the person who will put your product on the market and distribute it, is your local business partner. The more your local business partner embraces and concentrates on the product, the higher your chances of success. That’s why delivering your product to the right partner’s hand is as important as finding the right product. When choosing your distributor, please pay attention to your distributors relationship with wholesalers, supermarkets and retailers. Because the wider the scope of your distributor, the greater the sales success of your product can be.

Marketing campaigns

You have found the right product, you have found your local agent, the export processes have been completed and the product has came to the market. The most important remaining phase is the presentation of the product to the market with an effective marketing campaign. At this point, the vital thing is to understand the communication character of the country well and to reach the end user in that way. To give an example, a “road show” style activity may be more effective in a country like Burundi, while radio advertisements may be more effective in countries such as Nigeria and Botswana, as the habit of listening to the radio is high. Or in countries where social media is actively used, such as South Africa or Senegal, advertisements can be placed on the internet via Instagrammers or Youtubers. Or for countries such as Democratic Congo, Madagascar or Uganda, billboard advertisements may be more effective because in these countries, the advertising habit is progressing through more colorful and more attractive visuals. At the end of the day, before determining how the marketing campaign will be done, it would be more rational to clarify the advertising understandings of the countries and proceed through them. While these advertising processes are continuing, a certain amount of sample products should be given to the end user free of charge and the products should be tested. Free product distribution all over the world is known as one of the best marketing strategies. In this way, the brand perception and permanence of the product will be better provided.

Advice to players who want to introduce new products to African markets:

• Keep your relations warm with your local distributors/agents.
• Pay attention to the warnings, suggestions and comments from your distributors. Because they are your hands and eyes in the market.
• Pay close attention to the quality of the product you sell. The quality of the product in the     1st container and the product in the 10th container must be the same.
• Markets should never be left out of stock.
• Frequently check your product stocks positions with your distributors.
• Get information about competitor products in market on a regular basis.
• By closely following the frequently changing market dynamics, campaigns should be prepared accordingly.
• It is most appropriate to see the products on site by trying to make field visits as much as possible.
• Frequently follow the economic and political situation of the country you export to.
• Try to keep your product sales prices at average levels.
• Don’t focus on big profits all at once. Aim for permanent gain in the long run.

Cem Perdar is a Master’s graduate of Rome Business School and Export Sales Manager/​Africa at Pakmaya, Pak Holding.