Has Elephant Detergent Succumbed to Competition?

Hardly would anyone find a household in Nigeria that hasn’t, at one time or the other, been graced by a pack of Elephant Blue detergent powder. In response to a number of sweeping changes that have taking place in the detergent market, Elephant introduced its Gold and Colour variants. Despite having some brands like Imperial Leather Soap, which was introduced more than one hundred years ago, PZ seems to be stuck in the past with some of its major brands like Elephant detergent. Ralph Tathagata reports.

The perceived lingering complacency on the part of PZ Cussons’ brands is becoming a source of concern in the market. Market watchers are equally worried whether that could be another form of the company’s exit strategy from Nigeria after earlier threats.

In the early part of 2009, rumours were rife that PZ and Unilever Plc simultaneously considered pulling out of Nigeria, probably relocating to neighbouring Ghana because of the deplorable state of infrastructure in the country. But business has since continued as usual, especially in the detergent category, which controls an enormous share of the Fast Moving Consumer Goods’ (FMCGs) market.

Omo and Elephant detergents were some of the leading brands in the Nigerian detergent market many years ago. Somehow, in the mid 1990s, Klin detergent (now So Klin), from the stable of Eko Supreme Resources dramatically converted the market to its white washing powder with a promise to remove tough stains. This histrionic difference and the immediate consumer loyalty it garnered put major players like Unilever, P & G and PZ among others on their toes for instantaneous rebranding. While Omo and other conventionally bluish detergents strategically repositioned to retain market relevance, Elephant dawdled before it embarked on what observers considered a belated change.

In the same vein, M2′s recent investigations reveal that Elephant detergent positioned at the premium end of the mass market, either to compete favourably in the family size pack or the Bottom of the Pyramid (BOP) size.

Major shops and markets visited by M2 around Ikeja, Lagos and its environs suggest that Elephant detergent is struggling to hold on to its fair share of the market. One of the retailers at Ipodo market, Ikeja, simply referred to as Madam White, disclosed that Elephant has lost reasonable share of the detergent market.

“Don’t just ask for the small size of Elephant because you can hardly find it in this market. It is very scarce. This family size (1000 g) is the major one in the market,” she says.

Though Madam White could not explain why the small sachet Elephant was quite scanty on the shelves and stands, she however, reveals that other leaders like Omo and Ariel far outsell Elephant.

“Even though customers hardly buy the available big size of Elephant detergent par pack, except in cartons on rare occasions though, Omo and Ariel sell ten times more. But I don’t know why it is like that,” she adds.

Subsequent surveys at Alade Market among others validated the findings in the previous markets.

Surprisingly, further market survey carried out by M2 in the neighbourhood of PZ Cussons, at the Ilupeju Ultra Modern market, disclosed that even the family pack of Elephant was not on the shelves.

Following the foregoing alleged decline in market share and shelf presence of Elephant, M2 made concerted effort to hear from PZ Cussons. However, several attempts to see either Ibraheem Akanbi or Jimi Taiwo, Brand and Marketing managers hit the brick wall as the front desk officer routinely said they were not picking their intercom lines.

Taiwo, who later picked after several hours of persistence, complains of being barged in upon and declines comments; his reason being that he was coming out of a conference.

“We can’t allow you in because you did not book any previous appointment and you know the rules. You can’t just barge in on me like that. Moreover, we are just coming out of a conference and are still in the spirit of the conference. So you can call back later,” he says.

Further effort to get his personal contact so as to reach him later proved abortive as he asked the M2 reporter to drop his phone number which he did. But Taiwo did not call as at press time.

It must be recalled that investment in marketing, especially experiential marketing, has been the major tool for the success of some detergent brands like Omo and Ariel in the nation’s market.     

According to experts, the increasing competition in Nigerian detergent market requires that brand owners must constantly innovate, and experientially engage and tempt consumers with new and exciting offerings. Meanwhile, Elephant’s ability to measure up to the appeal that Omo and Ariel presently enjoys in the market, or to simply provide an emotional consumer connection as a point of difference is yet to be seen.

As its heritage suggests, PZ Cussons is a truly international company. Though it has had its fingers burnt some years ago in the Russian and Chinese markets, its success in the Nigerian market has been notable in recent years. But whether the company is ready to challenge the changes that now characterize the market is another story entirely. In addition, the obvious poor performance of many PZ brands in Nigeria is refuelling speculations that the company might quit operation in the country in the future if the trend continues. Whether they will rise up to the challenge or chicken out, only time will tell.