Nigerian brands should learn to compete in the market — Tony Agenmonmen, former NIMN president

Immediate Pass President, National Institute of Marketing of Nigeria (NIMN), Mr. Tony Agenmonmen, In This interview with CLOSE ADEWAKUN, see Nothing unusual In THE in progress price 'war' In Nigeria aviation sector, but said local brands need has gear up has survive such competition. Excerpts:

As A seasoned marketing practitioner, how will You describe THE recent price war, Or predator price, concerning THE Lagos-London flight tickets?

I think THE problems are bigger that predator price, price competition, Or never mind. Competition In THE walk place East not unusual. In do he East THE standard, Any of them industry Or there East No competition will be moribund And THE consumers Or THE general public will not get THE best of he. SO as A marketing person, I encourage competition any of them time, any of them day. SO, has that extent, THE incursion of Air Peace In international itinerary East A very to welcome development Since THE economic indicate of see. THE Airline company, either For patriotic Or strategic marketing the reasons, brought their prices down has THE level they brought them. I would be be surprised if Air Peace did not to wait for that THE competition, which, In This case, East each other Airline company, would be react A path Or THE other, because if You as he Or not THE future In of Air Peace has amended THE dynamic. And This, THE stranger Airlines companies to have do, through miscellaneous prices be band around. If You possesses any of them of THE airlines, You wouldn't it be sit back And watch A new participant enter THE walk, And take on without respondent. It is not marketing. You must react has competition. SO I don't do it think there was A meeting of stranger Airlines companies has decide that they would be gang up. I don't do it believe that. What they to have do East has look has THE landscape, analyze THE possible impact of THE entrance of Air Peace, And take A position on how they are going has organize their price.

Do A brand infringe any of them marketing ruler Or ethics by engaging In undercutting Or predator price with THE aim of push competition outside?

When We are talk about walk here, I to want has believe We are talk of A free walk economy. HAS be Candid, there East Nothing as A Perfectly free walk economy. If I am produce bed sheet , And sale he has 20,000 naira by unit, And get A margin of 45 percent. I have reached fame, And I am manufacturing earn because either THE competition East not strong Or there East none. But if another brand come In THE walk, And decided has charge 15,000 naira. I to have 45 percent has play with. I can look has My cost, And say if THE brand East play sports A price war, I can cut he has 12,000 naira. I am always manufacturing profit, despite THE drop In THE margin. Don't do it forget, I always to have THE advantage of ladder because I have has been In THE walk For a few time, And THE competition, because he East just future In, can not to have THE ladder has bring THE price of their some products has 12,000 naira. That becomes A issue For THE new participant, he can go bankruptcy, Or go back has It is cost profile And say if these people can sell has This price, I, Also, should. I wouldn't it be to wait for he has go And TO DO 10,000 naira, because if he do that I can go down further because I to have THE advantage of ladder. You see price war East A classic marketing case that it hurts everyone, And Sometimes THE END result East that When everyone has self-destruction, they will all come back has reality And SO adjust has What East reasonable. SO has answer your question, there East not A marketing crime For You has price your GOOD has THE price that agrees your strategy. I think What Air Peace has do East What East called penetration price. He East do everywhere, but You to have has pay For he. I would be be surprised has see competition not react. WHO said they are manufacturing losses? But he East not always that price East THE postman For All. From THE sector I come Since, Heineken East a lot more Dear that Goldberg, Star, Gulder, but people always buy Heineken because of their value proposal. Air Peace should get disabled THE screen And be ready For competition.

What should be THE strategy For A domestic brand caught up In This type of situation?

Nigerian brands should learn, And be ready has compete In THE walk, let's go not be tears victim, victim, victim. THE walk East war. If You play by THE ruler, you go earn, if You don't do it, You lose. Star blond beer beer was THE First of all locally prepared blond beer In Nigeria. When Harp was future In Nigerian Breweries did not cry. He prepared For competition. SO any of them brand that East not ready has compete should not be In THE market.

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Keywords: walk