Nigerian Packaged Goods, Ltd.(Instructor's Note) (2004)

CASE DESCRIPTION Ever wished you had a full-length case (lots of issues, lots of data) about a large under-performing company in the developing world? This case challenges students to use the information provided to develop a plan to dramatically increase profitability and to double the number of tons of products sold by Nigerian Packaged Goods Ltd. within a four-year period. The case is based on field research conducted by the author in Nigeria. At first glance, students may believe the central issue in the case is strategy. As they will discover in the epilogue, however, the solution developed by the company's Managing Director involves initiatives on a very wide range of factors with the potential to impact corporate performance. Those factors include not only marketing strategy-related issues (that is, target market and the four marketing mix variables) but also company, competitor, and customer characteristics; industry considerations; and the macro-economic environment in Nigeria. The case is appropriate for senior-level undergraduates as well as students in MBA and Executive Development programs. It is designed to be taught in a one hour and a half class session, and is likely to require at least a couple hours of preparation by students. CASE SYNOPSIS Brian Keith is the newly-appointed Managing Director of Nigerian Packaged Goods Ltd., a large subsidiary of Global Packaged Goods Ltd. and a major manufacturer and marketer of consumer packaged goods (foods, cosmetics, soaps, detergents, toothpastes, etc.) in Nigeria. The company has just reported a massive loss, and the former managing director together with most of the senior management team have retired. To ensure continued support for the company from worldwide headquarters in Belgium, Keith believes that he will need to dramatically improve profitability and to double sales volumes within the next four years. Data and information in the case include: 1. Description of the challenge the company faces. 2. For Nigeria: Historical overview, a sample of recent statistics from the World Bank, and (for benchmarking purposes), some comparable statistics on the United States. 3. On the company: Historical overview, current performance, and numerous factors impacting that performance. (d) Characteristics of the marketing strategy, including descriptive information on the product line, characteristics of the distribution system, and information on the promotion and pricing strategies the company is currently using. 5. Characteristics of the competitive situation. INSTRUCTORS' NOTE Our hero, Brian Keith, newly-appointed Managing Director of the Nigerian Packaged Goods Ltd. (hence, NIPAG) subsidiary of Global Packaged Goods Ltd. (hence, GLOPAG), faces the following situation: 1. NIPAG has just recorded a huge loss. 2. The former Managing Director and most of his team have retired. 3. It is by no means certain that NIPAG will continue to enjoy continued support for ongoing operations from the worldwide headquarters of its parent company (GLOPAG) in Belgium. As regards lessons and/or information which students should learn from this case, at least four points can be made: 1. At the beginning of the case, students will need to consider the extent to which developed-world models and conceptual frameworks can be applied to challenges and opportunities in the developing world. By the end of the case discussion, they will have discovered that many conceptual frameworks (for example, models of corporate performance, models of marketing strategy, etc.) can be useful guides to managerial action not only in the developed world but in the developing world as well. 2. Students will be able to compare their plan to double the company's business in four years to the successful plan developed by the hero of the case, that is, the managing director of the company. …