Friesland Campina, Promasidor in fierce competition

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Friesland Campina and Promasidor are top brands in the production of fast-moving consumer goods and these brands are cashing out daily to do whatever it takes to remain on top in the minds of
consumers.

Pressure on consumers’ disposable income and rising prices of milk brands as well as quest for additional value on milk products have forced the leading brands in the market into dynamic product change. Strong competition has also come with a wide range of brand repositioning activities, including smaller pack sizes, generous discounts and promotional sales.

Peak Milk, a product of Friesland Campina WAMCO, for 60 years, has been positioned as a premium brand and with that segment, it rose to become the leader in the dairy market, ignoring a wide range of products in the mass-market.

With little or no option, the perception then was that Peak milk and the dairy sector served the rich and only the rich.  The creneau was so large that when Cowbell Milk made an entry into the market monopolised by Peak, it didn’t position itself to compete with Peak. Rather, Cowbell Milk, produced by Promasidor, saw the goldmine in the mass-market and created its own monopoly with pocket friendly products.

Initially underrated by competitors, Cowbell won the heart of the Consumer with its inclusive pay-off, “Cowbell, Our Milk”. The brand and its campaign was a massive hit and it virtually became the darling of the lower-end consumers.

However, the brands are now positioning their products on consumers’ health consciousness (low cholesterol, for instance) while paying attention to product repackaging and availability. Along these elements of marketing mix, the companies are not relenting on their various positions in making price insignificant in the race for increased market
share.

The brands have also embarked on promotional drive, based on health messages and quality, to enhance patronage and acceptance.

As each brand intensifies its push for a larger market share, consumers insist that the regulatory authorities should step up their act to ensure healthy competition, especially in brand campaigns that tend to mimic or market others.

In separate interviews with consumers and traders in various Lagos markets, opinions obtained were divergent. One of the contributors, Miss Fatima Hamed, who runs a wholesale store at Oyingbo market, said that there had been a fierce competition between Cowbell and Peak milk brands but indicated also that Peak sold more, according to her sales book in the last three months.

A consumer, Mr. Salam Lekan, said he preferred Cowbell, stating that, for him, it had always been a family milk choice overtime, adding, “Notwithstanding the economic situation, the brand has been realistic in terms of pricing and fortification.”

Another consumer, Mrs. Ifeoma Amadi, who preferred Cowbell, said it was tasty and “easily dissolves in hot water.”

Also speaking, a consumer who gave her name as Mrs. Orie declared her preference for Peak Milk, saying it was because of its richness in vitamins and
mineral.

Madam Owofadeju, a wholesaler at Ketu Market, said, “The moment you get into Cowbell Way, you might begin to wonder you missed your way or could it be that Promasidor had moved and Friesland had taken over? You might just have to really ask because Friesland has branded the entire streetlights on Cowbell Way (in Lagos) with Peak Milk banners.