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Navigating Ghana’s Market Nuances for a Successful Market Re-entry
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The strategic approach to repositioning our product as ‘luxury within reach’ was key to our success in Ghana. Their understanding of the market and ability to execute impactful marketing campaigns helped us quickly establish a strong presence and drive growth.
Background
A multinational FMCG company, renowned for its diverse range of personal care and hygiene products, sought to further expand into the West African market with the launch of a new line of bath soap in Ghana. However, the initial product launch faced significant challenges due to positioning and messaging that did not resonate with local preferences.
Recognising the need for a more localised approach, the company engaged us to realign its market entry strategy. We focused on repositioning the product, enhancing its visual appeal, and executing an integrated marketing campaign to effectively reach and engage the target audience.
Challenges
Building on the brand's initial data, our research uncovered several key issues that needed to be addressed:
Product formulation and misaligned messaging:
The soap was initially marketed for its moisturising benefits, but the formula left a residue that required multiple rinses, - an issue in Ghana, where water scarcity is a concern. Additionally, the focus on moisturising did not align with their target audience and local consumer preferences for practicality and ease of use.
The soap was initially marketed for its moisturising benefits, but the formula left a residue that required multiple rinses, - an issue in Ghana, where water scarcity is a concern. Additionally, the focus on moisturising did not align with their target audience and local consumer preferences for practicality and ease of use.
Building brand recognition with visual appeal:
As a new entrant in the Ghanaian market, the brand needed to quickly build trust and visibility among consumers loyal to established brands. Given varying literacy levels, bold and visually appealing packaging was essential for immediate recognition, allowing the product to stand out and convey its benefits without relying heavily on text.
As a new entrant in the Ghanaian market, the brand needed to quickly build trust and visibility among consumers loyal to established brands. Given varying literacy levels, bold and visually appealing packaging was essential for immediate recognition, allowing the product to stand out and convey its benefits without relying heavily on text.
Developing a reliable distribution network in a cash-driven market:
Although the brand had an existing network of distributors, achieving success in Ghana required a more robust distribution strategy to ensure widespread product availability across supermarkets, convenience stores, local shops, and open markets in both urban and semi-urban areas. In this cash-driven market, it was also essential to implement strategies that facilitated rapid product turnover and efficient cash flow management.
Although the brand had an existing network of distributors, achieving success in Ghana required a more robust distribution strategy to ensure widespread product availability across supermarkets, convenience stores, local shops, and open markets in both urban and semi-urban areas. In this cash-driven market, it was also essential to implement strategies that facilitated rapid product turnover and efficient cash flow management.
Armed with these insights, we pivoted the strategy to attract middle-income and aspirational consumers by emphasising practical benefits, strong visual branding, and widespread accessibility to position the soap as an “affordable luxury.” Over 12 months, we rolled out a comprehensive strategy that included:
Brand repositioning and messaging:
We redefined the brand’s positioning to highlight “luxury within reach,” appealing to middle-income consumers aspiring to experience luxury without the high price tag. This strategy resonated with those seeking a high-quality, fragrant, and skin-benefiting soap that remained accessible and affordable.
We redefined the brand’s positioning to highlight “luxury within reach,” appealing to middle-income consumers aspiring to experience luxury without the high price tag. This strategy resonated with those seeking a high-quality, fragrant, and skin-benefiting soap that remained accessible and affordable.
Strengthening distribution networks:
We identified and patterned with additional local distributors with strong networks in key urban and semi-urban areas. This ensured widespread availability across key retail points—supermarkets, local shops, and open markets—enhancing market reach and supporting quick product turnover.
We identified and patterned with additional local distributors with strong networks in key urban and semi-urban areas. This ensured widespread availability across key retail points—supermarkets, local shops, and open markets—enhancing market reach and supporting quick product turnover.
Enhancing visual appeal for immediate recognition:
Recognising the importance of visual appeal in a market where literacy levels vary, we redesigned the packaging to feature bold, elegant designs that conveyed luxury and quality at a glance. The new packaging clearly communicated the soap’s benefits, such as its enticing fragrance and skin-enhancing properties, without relying heavily on text.
Recognising the importance of visual appeal in a market where literacy levels vary, we redesigned the packaging to feature bold, elegant designs that conveyed luxury and quality at a glance. The new packaging clearly communicated the soap’s benefits, such as its enticing fragrance and skin-enhancing properties, without relying heavily on text.
Solutions
Integrated marketing campaigns:
We executed a comprehensive integrated marketing campaign that combined traditional media—TV, radio, and billboard advertising—with in-store promotions and targeted digital efforts. The campaign emphasised the soap's luxurious feel, appealing scent, and skin benefits, reaching the key target audience and reinforcing its "affordable luxury" positioning. This multi-channel approach built strong brand awareness and trust, significantly increasing brand recall, store foot traffic, consumer engagement, and conversion rates.
We executed a comprehensive integrated marketing campaign that combined traditional media—TV, radio, and billboard advertising—with in-store promotions and targeted digital efforts. The campaign emphasised the soap's luxurious feel, appealing scent, and skin benefits, reaching the key target audience and reinforcing its "affordable luxury" positioning. This multi-channel approach built strong brand awareness and trust, significantly increasing brand recall, store foot traffic, consumer engagement, and conversion rates.
Our strategic approach delivered impressive results for the brand in Ghana:
Established market leadership in beauty soaps:
Within six months, the soap achieved a 12% market share in the beauty soap category, becoming a preferred choice for consumers who value quality and affordability.
Within six months, the soap achieved a 12% market share in the beauty soap category, becoming a preferred choice for consumers who value quality and affordability.
Built a stronger distribution network:
The soap’s availability across supermarkets, convenience stores, and local markets ensured widespread access and rapid product turnover, supporting strong sales growth.
The soap’s availability across supermarkets, convenience stores, and local markets ensured widespread access and rapid product turnover, supporting strong sales growth.
Achieved high brand recognition and trust:
Effective marketing efforts led to a significant increase in brand recognition and trust, with 80% of surveyed consumers associating the soap with quality and luxury.
Effective marketing efforts led to a significant increase in brand recognition and trust, with 80% of surveyed consumers associating the soap with quality and luxury.
Results
Boosted sales and market presence:
The integrated marketing strategy resulted in 37% increase in sales, solidifying the soap's position as a trusted beauty brand in Ghana.
The integrated marketing strategy resulted in 37% increase in sales, solidifying the soap's position as a trusted beauty brand in Ghana.
Conclusion
With our expertise, the multinational FMCG company successfully entered the Ghanaian market, positioning its new soap line as an affordable luxury product. By leveraging local insights, refining the brand's positioning, enhancing visual appeal, and executing targeted marketing campaigns, we achieved strong consumer appeal, market penetration, and high brand recognition, laying a solid foundation for sustained growth in West Africa.
SMIC Insights
- Barbara Mettle OlympioSMICOur work with this global FMCG company, which had existing brands across various West African countries, highlighted a key lesson for us: while there are cultural and economic similarities across the region, each market requires a unique approach. The company’s initial research suggested that the Ghanaian market was similar to others they had successfully entered. However, our deeper analysis uncovered critical nuances that were crucial for success in Ghana.
Assuming a strategy that works in one country will succeed in another can be misleading. By recognising and leveraging these subtle differences, we effectively repositioned the brand, demonstrating that a tailored, market-specific strategy is crucial for achieving long-term success in Ghana and for expanding more broadly across the continent.
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SMIC Marketing, 2024
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