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Working with SMIC Marketing was a game-changer for our entry into Nigeria. The results of their research gave us a lot of food for thought. Overall, their support was key in helping us to move forward with a clear, well-prepared strategy, setting us up for success in this exciting market.
Background
A rapidly growing fintech company specialising in payments, invoices, and financial tools was determined to expand its footprint into Lagos, Nigeria. To mitigate the known risks associated with entering a market with economic volatility, but immense opportunity, they turned to us to deliver comprehensive market research and a go-to-market strategy.
Our deep understanding of the Nigerian market, combined with our extensive network of local insights, positioned us well to provide the company with the strategic guidance needed to navigate the complexities of launching in Lagos, Nigeria.
Challenges
Navigating government instability and developing a risk-mitigation strategy:
The Nigerian market is marked by significant uncertainty due to government instability, unpredictable regulatory changes, and economic challenges, especially in the post-COVID environment. This volatile landscape, with risks such as fluctuating currency values, inflation, and political uncertainty, requires companies to be agile and adaptive. To succeed, it is essential to develop a robust risk-mitigation strategy that protects investment and maximises the chances of success in such a dynamic environment.
The Nigerian market is marked by significant uncertainty due to government instability, unpredictable regulatory changes, and economic challenges, especially in the post-COVID environment. This volatile landscape, with risks such as fluctuating currency values, inflation, and political uncertainty, requires companies to be agile and adaptive. To succeed, it is essential to develop a robust risk-mitigation strategy that protects investment and maximises the chances of success in such a dynamic environment.
Understanding local consumer behaviour and needs:
Given Nigeria's diverse demographics, understanding local consumer behaviour, payment preferences, and financial management needs was crucial. The fintech company needed granular insights into what drives customer adoption and retention in a market like Lagos, where trust in financial services is still building.
Given Nigeria's diverse demographics, understanding local consumer behaviour, payment preferences, and financial management needs was crucial. The fintech company needed granular insights into what drives customer adoption and retention in a market like Lagos, where trust in financial services is still building.
Converting existing data into actionable insights:
While the company had extensive data from its own research and operations in other markets, translating these insights into a Nigerian context required a nuanced understanding of local market dynamics. They needed support in interpreting their data to ensure their product offerings and marketing efforts would resonate with Nigerian consumers.
While the company had extensive data from its own research and operations in other markets, translating these insights into a Nigerian context required a nuanced understanding of local market dynamics. They needed support in interpreting their data to ensure their product offerings and marketing efforts would resonate with Nigerian consumers.
To address these challenges, we developed comprehensive market research and a go-to-market strategy that provided a clear roadmap for entering Lagos, Nigeria. Our approach included risk assessment, local market adaptation, and strategic planning:
Extensive market research and local insight analysis:
We built on the company’s existing data and conducted deeper market research to understand Nigeria’s economic environment, regulatory landscape, consumer behaviour, and competitive dynamics. This research included both qualitative and quantitative data analysis, providing a holistic view of the opportunities and challenges in Lagos.
We built on the company’s existing data and conducted deeper market research to understand Nigeria’s economic environment, regulatory landscape, consumer behaviour, and competitive dynamics. This research included both qualitative and quantitative data analysis, providing a holistic view of the opportunities and challenges in Lagos.
Risk assessment and mitigation planning:
Our team conducted a comprehensive risk assessment to identify potential threats related to political instability, currency fluctuations, and regulatory uncertainties. Based on these insights, we developed a risk-mitigation framework that included scenario planning, regulatory compliance strategies, and contingency plans for economic downturns.
Our team conducted a comprehensive risk assessment to identify potential threats related to political instability, currency fluctuations, and regulatory uncertainties. Based on these insights, we developed a risk-mitigation framework that included scenario planning, regulatory compliance strategies, and contingency plans for economic downturns.
Tailoring the product offering to local needs:
We supported the company in translating their existing data into actionable insights by mapping it against local consumer behaviours and needs. Our research revealed that Nigerian consumers value transparency, security, and convenience in financial services, particularly in a market where trust in digital financial solutions is still growing.
We supported the company in translating their existing data into actionable insights by mapping it against local consumer behaviours and needs. Our research revealed that Nigerian consumers value transparency, security, and convenience in financial services, particularly in a market where trust in digital financial solutions is still growing.
Solutions
Developing a go-to-market strategy with multi-channel engagement:
We developed a go-to-market strategy that combined digital and traditional marketing channels to maximise reach, focusing on targeted social media campaigns and partnerships with SMEs to build trust. Additionally, we identified strategic partnerships with local banks, telecommunications companies to leverage their mobile money network of vendors, and payment processors to facilitate seamless integration into Nigeria's financial ecosystem. This approach utilised established networks and coverage to drive adoption and credibility among local businesses and consumers.
We developed a go-to-market strategy that combined digital and traditional marketing channels to maximise reach, focusing on targeted social media campaigns and partnerships with SMEs to build trust. Additionally, we identified strategic partnerships with local banks, telecommunications companies to leverage their mobile money network of vendors, and payment processors to facilitate seamless integration into Nigeria's financial ecosystem. This approach utilised established networks and coverage to drive adoption and credibility among local businesses and consumers.
While SMIC Marketing did not execute the go-to-market strategy, our consultancy gave this fintech company a strong framework to navigate Nigeria's complex market. We leveraged local insights to identify key trends and barriers, advising flexibility to manage regulatory changes and currency risk. We also recommended partnerships with government initiatives on digital financial inclusion to strengthen the company’s position. With our guidance, the company turned its entry into Nigeria into a well-prepared and strategic endeavour, maximising its chances for success.
Robust risk-mitigation framework:
The risk assessment and mitigation plan we developed provided the company with clear guidelines on managing uncertainties like political instability and economic volatility. By preparing scenario plans and regulatory compliance strategies, the company was better equipped to safeguard its investment and operate effectively in a dynamic environment.
The risk assessment and mitigation plan we developed provided the company with clear guidelines on managing uncertainties like political instability and economic volatility. By preparing scenario plans and regulatory compliance strategies, the company was better equipped to safeguard its investment and operate effectively in a dynamic environment.
Data-driven product adaptation:
We helped the company translate its existing data into actionable insights tailored to the Nigerian market. By understanding local consumer needs—emphasising transparency, security, and convenience—the company could refine its product offerings to resonate more effectively with Nigerian consumers, building a foundation for customer trust and loyalty.
We helped the company translate its existing data into actionable insights tailored to the Nigerian market. By understanding local consumer needs—emphasising transparency, security, and convenience—the company could refine its product offerings to resonate more effectively with Nigerian consumers, building a foundation for customer trust and loyalty.
Strategic go-to-market plan:
The multi-channel engagement strategy we designed offered a roadmap for reaching the target audience through a blend of digital and traditional marketing channels. By focusing on social media marketing, partnerships with SMEs, and collaborations with local banks and payment processors, the company was well-positioned to build trust, gain market acceptance, and facilitate smoother integration into Nigeria's financial ecosystem.
The multi-channel engagement strategy we designed offered a roadmap for reaching the target audience through a blend of digital and traditional marketing channels. By focusing on social media marketing, partnerships with SMEs, and collaborations with local banks and payment processors, the company was well-positioned to build trust, gain market acceptance, and facilitate smoother integration into Nigeria's financial ecosystem.
Results
Confidence to enter a high-potential market:
Equipped with a well-researched go-to-market strategy and a deep understanding of the risks involved, the company gained the confidence to proceed with its expansion plans in Lagos, Nigeria. Our strategic guidance enabled them to enter the market with a clear, informed approach, laying the groundwork for a successful launch and potential future growth.
Equipped with a well-researched go-to-market strategy and a deep understanding of the risks involved, the company gained the confidence to proceed with its expansion plans in Lagos, Nigeria. Our strategic guidance enabled them to enter the market with a clear, informed approach, laying the groundwork for a successful launch and potential future growth.
Conclusion
Despite the uncertainties associated with Nigeria's government and economy, we demonstrated that with the right research, strategy, and local insight, significant opportunities exist for businesses willing to take calculated risks. Our expertise in navigating complex markets enabled the fintech company to make a confident entry into Lagos, setting the stage for sustained growth and success in the region.
SMIC Insights
- Barbara Mettle OlympioOur work with this fintech company highlighted a crucial lesson for us: despite the uncertainties in some markets, businesses that are equipped with the right research and a robust testing environment can find significant opportunities for success. This experience reinforced that, even in uncertain markets, businesses willing to invest in thorough research and tailored approaches can unlock substantial growth and valuable learning, positioning themselves for broader success in the region.
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