Latest / Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint / The Myth of the Brand-First Business
Transcript
- 0:01Hello and welcome to the show. Today.
- 0:03I'm not in the audio booth, so I expect to hear some
- 0:05interruptions in the background. So with the apologies out of the
- 0:09way, let's head straight into the topic for today.
- 0:14OK, Today I'd like us to look at branding versus sales, which
- 0:19comes first. The reason why I want us to look
- 0:22at this today is because there's a problem in business circle
- 0:25business circles these days, and that's because most people my
- 0:28age are obsessed with brand when they want to start their
- 0:31business journey. Everybody assumes I'm going to
- 0:33be in business. I'm going to be a doctor, I'm
- 0:35going to be a photographer, I'm going to be an architect, I'm
- 0:37going to be a consultant. So let me start with building my
- 0:40brand. That's one of the first things
- 0:43that I run into when I'm talking people.
- 0:44Everybody wants to start from the brand journey, but which
- 0:48comes first? Does branding truly come first?
- 0:52The problem with this whole theory of all, to get into
- 0:55business, let me start building my brand, is it doesn't reflect
- 0:58the trajectory of most businesses.
- 1:01It doesn't show how most businesses actually grow.
- 1:04And so because of this, a lot of people my age and younger are
- 1:08ending up with a very flawed picture of business.
- 1:12You're ending up with a very erroneous idea about how
- 1:15business, how businesses grow, how businesses come about.
- 1:19Now, the reason why we end up with this flawed picture or this
- 1:24backwards picture is because of the stories and the brands that
- 1:27are celebrated in books and celebrated in media when some of
- 1:30us were kids. So I want to take some of those
- 1:34stories and scrutinize them a little bit much more clearly.
- 1:38And then you're going to be able to see that even though your
- 1:40favorite businesses have evolved into mega brands, they didn't
- 1:44always start out as a mega brand.
- 1:47So let me repeat that in case you didn't get it.
- 1:49I want to take two very famous stories from when I was a little
- 1:53youth just to prove a point. That's for those of us who are
- 1:56of the same age that even though your favorite brands are
- 2:01currently mega brands, they didn't always start out as one.
- 2:07The case study that I'm going to be looking at today, Remember,
- 2:10I'm talking about companies from my own generation.
- 2:13So you're not going to hear anything about Amazon or
- 2:15Facebook on this. So 2 of the mega stories from my
- 2:20own generation would be Coca-Cola and Nike.
- 2:24Coca-Cola, of course, is the soft drink.
- 2:28Back when we were kids, there was the advertising campaign.
- 2:31Coca-Cola is it in the 80s, Coca-Cola Teach the world to
- 2:35sing the Coca-Cola X mask Christmas campaigns, you know,
- 2:40back when we were kids, you know, stuff like that.
- 2:43So Coca-Cola, the massive brand, because when those, when we were
- 2:47kids, you know, late 70s, early 80s and beyond, this is the kind
- 2:51of stuff that we saw. And so because of that, you
- 2:54know, we're now 40s, fifties, we're trying to start our
- 2:56businesses and we assume, oh, you know what, I'm going to
- 2:58build a mega brand because the businesses that were successful
- 3:03back when I was a kid, they were mega brands.
- 3:05So Coca-Cola and then Nike. So of course, Nike every OK, no,
- 3:10not everyone now, people of a certain age, because I I don't
- 3:14live Nike is really raining these days by anyway, let me not
- 3:18go on go off into a strange rant.
- 3:20So but Nike, you know, 70s eighty kids were familiar with
- 3:24it. You know, the Just Do It
- 3:26campaign, the Michael Jordan endorsements, you know, the Air
- 3:29Force Ones, Tiger Woods endorsements, you know, and all
- 3:32the branding activity that went on then.
- 3:35So for those of us who are born in late 70s, early 80s and
- 3:38beyond, we are familiar with businesses, successful
- 3:42businesses doing massive marketing campaigns and doing
- 3:46massive branding campaigns. And then we'll become adults and
- 3:49want to start businesses. And then we assume that that is
- 3:51how it has always been. I want to open my medicine
- 3:55practice. Let me start with massive
- 3:57marketing campaign. Let me start with massive
- 4:00branding campaign. I want to open my law practice.
- 4:03Let me begin with massive marketing campaign.
- 4:05Let me begin with massive branding campaign.
- 4:08I'm about to become a wedding photographer.
- 4:10Let me begin with massive advertising campaign.
- 4:13Let me begin with massive branding campaign.
- 4:16But is this truly the case? And is this how these mega
- 4:21brands really began? I went online, I did bit of
- 4:25snooping around and I confirmed my hypothesis.
- 4:29Coca-Cola in the early days. Oh, by the way, I haven't
- 4:33confirmed these from official sources.
- 4:35So after you're done listening to the podcast, please go and
- 4:39check, go online, you know, check Coca Cola's website or
- 4:42whatever, or maybe check Wikipedia and then confirm some
- 4:45of the stuff. Google it.
- 4:46So in the early days, the pharmacist who invented
- 4:49Coca-Cola, John Pemberton, if I got the name correctly, he
- 4:52invented it as a headache remedy.
- 4:54And then he started selling this thing to local pharmacies and
- 4:58was mixed with carbonated water. Carbonated water.
- 5:01That's the, you know, that thing.
- 5:04You drink Fanta, you drink Coke, you drink Sprite and then you
- 5:07belch. That's just that's just carbon
- 5:10in the in the drink. So it mix everything together.
- 5:15Then according to the gist I found, Pemberton's friend Frank
- 5:19Robinson, who was also his bookkeeper, was the one who
- 5:21designed the logo. And anyway, let me just skip all
- 5:27of that since I haven't confirmed some of these things.
- 5:30But basically the early marketing or getting Coca-Cola
- 5:35off the ground involved distributing samples to
- 5:41pharmacies. I repeat, taking a bottle,
- 5:46taking a sample, going from one pharmacy to another.
- 5:50If you're in Lagos or in Abuja, picture this, you go to popular
- 5:54street in Lagos, there are like 5 or 6 pharmacies there.
- 5:57That is what the people who are behind Coca-Cola, that is how
- 6:01they started. You enter this pharmacy, you try
- 6:04your luck, you come out, you enter the other pharmacy, you
- 6:08try your luck, you come out, you enter the other pharmacy and you
- 6:12try your luck. And that was how Coca-Cola
- 6:16began, from distributing samples to pharmacies, promoting the
- 6:22drink to pharmacies. Now let's look at Nike in the
- 6:27early days. Well, I can't confirm this
- 6:30information, so, you know, go on interwebs for yourself and go on
- 6:34check. So the names that I was able to
- 6:38find, Bill Bowman and a track coach, Phil Knight, then a third
- 6:45guy. What's the third guy's name
- 6:49anyway? Basically, they started off
- 6:51importing running shoes from Japan and how they got the show
- 6:55on the road was they started slinging shoes from Phil
- 6:59Knight's car trunk. They will go to runners and
- 7:04track meet, they're going to running events and track meets
- 7:06and things like that. And then they will open the
- 7:08boots of Phil Knight's car and then they will start slinging
- 7:10shoes 1 by 1 by 1. So those of you who are in
- 7:15Lagos, in Abuja, I think we only have one stadium that I know of.
- 7:18But in Lagos, there's that stadium that is Adojo Alegba.
- 7:21And then there's another stadium at where again, I think in Lagos
- 7:25are like 3 or 4 stadiums, I can't remember.
- 7:26It's been a while since I left Lagos.
- 7:29So think about it. These people import shoes from
- 7:33Japan and then what do they do? They would drive to national
- 7:35stadium, then they open the boot and then they start flogging the
- 7:39shoes. They start selling the shoes 1
- 7:41by 1 by 1. Then when they finish at
- 7:43National Stadium and then they hear that OK, at the stadium in
- 7:46Nigeria, like maybe African National Scorp is playing or
- 7:50something like that. They will now drive there,
- 7:52sharply open the back of the car and then start selling a shoe
- 7:56again, 1 by 1 by 1. And the whole thing was focused
- 8:01around building relationships with runners, trying to
- 8:03understand their needs and sales motions of selling 1 by 1 by 1.
- 8:12Now it is easier to tell the sexy stories about building the
- 8:17Coca-Cola brand and building the Nike brand.
- 8:21But The thing is these massive companies that we love and that
- 8:24we respect, again, people my age, I'm not talking about you,
- 8:28you young bloods, because you young bloods.
- 8:29Yeah, I know you know Coke, but I'm not sure if you guys know
- 8:31Nike. So you can see that the early
- 8:34success was around strong sales and strong business development.
- 8:42That is what they used to differentiate themselves.
- 8:45That's what they used to get themselves on the road.
- 8:48So both people were trying to build relationships.
- 8:53They understood what's up. When you're going from one
- 8:56pharmacy, you try your luck, another pharmacy you try your
- 8:58luck, another pharmacy you try your luck, you're building
- 9:01relationships. You have to because somebody
- 9:04might say no today. It doesn't mean that the person
- 9:06will say no forever more. So the fact that you try
- 9:09Pharmacy A on Monday doesn't mean that you can't come back
- 9:12next month and try your luck again.
- 9:14So they had to build relationships and they had to
- 9:18connect with on the Coca-Cola and how to connect with
- 9:21distributors and then on the Nike end, how to connect with
- 9:24runners, you know, understand and understand their needs.
- 9:29Then of course, you know, marketing eventually will become
- 9:36important. The slogans would become
- 9:38important, the endorsements would become important, you
- 9:41know, so the Coca-Cola and the Santa Claus thing and, you know,
- 9:46their fancy advertisements. And then Nike with what's his
- 9:51name, that basketballer, the one that is bald is bald
- 9:54basketballer. This old guy Michael, Michael
- 9:57Jordan, you know, the Michael Jordan endorsement and all that.
- 10:00So all those things would eventually become important.
- 10:03But in the beginning, Coca Cola's growth was a distribution
- 10:06play, pure distribution play. Funny thing is right now
- 10:10actually still is a distribution play.
- 10:12So they have NBC based in Lagos, making that their stuff in
- 10:16Alausa. And then you have a massive
- 10:20wholesalers driving their massive truck buy all the
- 10:23bottles of Coke and then go out and then try and sell it to
- 10:26distributors. Distributors try and sell to
- 10:30middle men, middle men sell to retailers, retailers sell it to
- 10:33us. So it still is a distribution
- 10:34plate, but it started off as a distribution plate going from
- 10:37one pharmacy to another pharmacy.
- 10:40So the channel choice was really, really pivotal what to
- 10:44sell this thing, how we're going to do, we're going to go this
- 10:47thing through pharmacies. And then it was a very
- 10:48grassroots approach because it is walking leg by leg.
- 10:52Enter this pharmacy, come out, enter the next pharmacy, come
- 10:55out, enter the other pharmacy, come out.
- 10:58This was prospecting, physical prospecting, going to somebody,
- 11:03visiting a pharmacy, visiting an office.
- 11:07This is how we started before the mega marketing campaigns and
- 11:10the mega branding campaigns, simply with Nike.
- 11:12In fact, Nike, you can't even say that was prospecting.
- 11:14That is just pure Hosking because you know, we see people
- 11:17like that in the city center. You know, they do it in Lagos
- 11:19and they do it in Abuja. I'm not sure about other parts
- 11:21of the country. We see it all the time.
- 11:23Somebody would just drive somewhere, just park his car,
- 11:25open up and you know, before you know it, bring out shoe, bring
- 11:28out this, bring out that and then the guy is just selling his
- 11:30stuff from the car. If local government why these
- 11:35people called this would like to harass people for for all these
- 11:40levies. What are they called again?
- 11:43And you, you know what I mean. Sure, you just open your boot,
- 11:46start selling your things. If you see local government
- 11:47people just throw everything inside your boot, close your
- 11:49car, zoom off. So that's what Nike them that's
- 11:52what they were doing. It's pure hustling, meeting
- 11:54people directly hustling market one-on-one before they had their
- 11:59huge corporate offices with air conditioner and we billion
- 12:02dollar advertising and with branding budgets.
- 12:05So I guess I've overflowed it. So let me just bring this
- 12:08episode to a close. All you people who are trying to
- 12:12start something, you know, you know, brand, brand, brand,
- 12:14brand, you know, what's going to be my logo, What's going to be
- 12:16my caller? What's going to be my this,
- 12:17what's going to be my that all this branding decision.
- 12:20See, I'm not saying branding is not important too because you
- 12:25guys should hear what I'm saying in context because I've pointed
- 12:28out time and time again, like mom, she was a marketing
- 12:30communications professional, her MBA was in public relations, and
- 12:35she ended up as APR and brand specialist.
- 12:38So branding is something I grew up around.
- 12:40But The thing is, people are paying attention to branding
- 12:43without paying attention to the substantive issues.
- 12:46And that's the reason why a lot of us are suffering.
- 12:48So branding is important, but The thing is, the people you
- 12:51respect, your favorite businesses, do not begin as a
- 12:54brand. Even if you check Dangote.
- 12:56I'm guessing I'll go and do the research itself so I can make a
- 13:00podcast episode about that. I'm willing to bed my
- 13:05grandmother's teeth. That for Dangote was also
- 13:08similar as well that before the Brangote brand became a thing,
- 13:13he probably was hustling one or two things, prospecting, You
- 13:16know, let me meet this person, Let me see if I can hook up
- 13:19this, let me hook up that. Let me see what I can arrange.
- 13:21You know, one-on-one grass roots.
- 13:24Go and see somebody. Go shake your hand, go have a
- 13:26conversation. I'll be surprised if that's how
- 13:28the whole thing started. I don't think this Dangote brand
- 13:30just drop from the sky like that.
- 13:32So your favorite business is not begin as brands.
- 13:36These people started going to the street.
- 13:37They were walking on the streets, they were going to the
- 13:40market. They were talking to people one
- 13:42after another. They were trying to validate the
- 13:44business idea. This is my drink that is
- 13:46supposed to cure cold, blah, blah, blah, blah, blah.
- 13:49Is it any good? Let's go to the pharmacy.
- 13:51OK, people are drinking this thing, but it's not really to
- 13:53cure cold. They're drinking it because it
- 13:55gives them a good time or it gives them energy or whatever
- 13:57the market research was at the time for Coca-Cola.
- 14:00But first of all, they're trying to validate the business idea
- 14:03and walk on the sales channels. Do people like this thing?
- 14:07Is somebody willing to pay for it?
- 14:09OK, people are. So what's the best way that
- 14:10we're going to sell this thing? Then after they got money and
- 14:14the business going, they not have money for massive marketing
- 14:17and then for branding. So if you're starting out,
- 14:21please do not join every all these people who are fascinated
- 14:24with a brand. But again, I say branding is
- 14:27important, but I'm just saying let's not put the cap before the
- 14:31horse. You don't start with the brand.
- 14:33The brand is something that you end with and the brand is
- 14:35something that evolves organically over time.
- 14:37So if you're starting out, instead of calling up your best
- 14:41friend and saying who do you know that is good at branding?
- 14:44Let the person give me logo, let the person give me colour, let
- 14:46the person give me website, let the person give me letterhead,
- 14:50you know, and all of this, first of all, start at level of market
- 14:53validation. Is this a product or a service
- 14:57that people even want? Can I sell a bunch of these
- 15:00things to be sure that it is even going to work in the first
- 15:02place? Is that product market fit?
- 15:04Do people like this thing? Are people demanding this thing?
- 15:07Try and answer that question 1st.
- 15:08And I've said it time and time again on the podcast that the
- 15:12way you solve the market validation challenge or the
- 15:14product market fit challenge is actually go out into the market
- 15:16and try and do some sales motion, try and sell some stuff.
- 15:20If you talk to 10 people and it looks like eight people snap it
- 15:23up, they're like, oh, OK, OK, we're making progress.
- 15:27There's room here. Well, if you talk to 10 people,
- 15:32eight people snap it up, but the, the amount of the amount of
- 15:38toasting, the amount of selling was too much, then maybe you
- 15:41might think, well, there's demand or more distress involved
- 15:45in this thing. Maybe it's not the stress that I
- 15:46want to, this is not the kind of stress I want to insert into my
- 15:52life at this stage, but set out and try and answer these
- 15:56questions. So first of all, we're starting
- 15:58off with market validation, product, market feed.
- 16:01We're trying to see, do people like this thing?
- 16:02Do people want it? Can I sell a bunch of stuff #2
- 16:07Now that we've figured out that people want a bunch of stuff,
- 16:09we're going to try and see what selling channels should we
- 16:12optimize on what's going to work best.
- 16:16Then we're also going to try and come up with the selling
- 16:17framework. The reason why we need a selling
- 16:20framework is this. In the beginning, Coca-Cola boys
- 16:25that went from pharmacy to pharmacy.
- 16:26Eventually when this thing works, you need to hire other
- 16:30people that will start going from pharmacy to pharmacy on
- 16:33your behalf. This is where selling framework
- 16:35comes in. If you have a well established
- 16:37framework, when you're now hiring the next person that is
- 16:40going to start going from pharmacy to pharmacy, you'll be
- 16:42able to tell the person that, look, this is the sales channels
- 16:45we're doing, we're doing distributorship.
- 16:47We're only going to pharmacies and these are the kind of
- 16:50pharmacies we go to. Don't go to these kind of
- 16:52pharmacies because these tertiary pharmacy, they're not
- 16:54going to, our customers are not there.
- 16:58Go to this kind of pharmacies that are in VI or go to this
- 17:01kind of pharmacy that are on Lagos Island or go to this kind
- 17:04of pharmacy that can, you know, on and on.
- 17:07So that's why this stage is important.
- 17:11Figure out the sales channel, figure out the selling framework
- 17:13because eventually you're going to amass a team and you need to
- 17:16be able to direct your sales team accordingly so that they
- 17:18can sell well on your behalf. When you get the sales team,
- 17:22then the next step is going to be scaling your sales efforts.
- 17:26Scaling just means multiplying. Before it was you and your
- 17:30friend. We're from pharmacy to pharmacy.
- 17:32That's how you people started. If you don't have 5 people going
- 17:36pharmacy to pharmacy, then I mean obviously two people going
- 17:40to pharmacy, pharmacy to pharmacy are making progress.
- 17:42You hire 1010 people, those same people who take your selling
- 17:48methodology and your framework work to sell on your behalf.
- 17:50That is multiplying the effort. That is scaling the effort.
- 17:54That is what scale means in the primary sense.
- 17:56Well, of course, you know when we start talking tech, tech
- 18:00ideas anyway, for now, when you hear scale, that's just what it
- 18:04means. Scale just means multiplying
- 18:06efforts from scaling. You're going to get stable cash
- 18:09flows, you're going to get customers and stuff like that.
- 18:12Now from those steady customers and from that market, sorry, I
- 18:16said market from those steady customers and from, from those
- 18:20profits. Now that is where you're going
- 18:23to be able to get the money to start doing massive advertising,
- 18:27massive marketing, massive branding.
- 18:31These things don't come cheap. Those of you who are looking for
- 18:33branding specialist, you want somebody to design logo for you,
- 18:36You want the person to design letterhead for you.
- 18:38You want the person to build website for you.
- 18:41You want the person to build branding guide and everything
- 18:45for you. But you only want to pay the
- 18:46person 50K. Come on, wake up.
- 18:48Be realistic here. Be realistic.
- 18:51These things cost money. This is how you're going to be
- 18:53able to afford it. By starting off with marketing
- 18:55validation, establishing the selling framework, getting your
- 18:58sales channels, scaling on your efforts, getting customers,
- 19:02getting stable cash flows. Then you'll now be able to pay
- 19:05for it. So that if the person says OK or
- 19:07guy, I've looked at everything, this package that we're going to
- 19:10design for you, everything is going to be 400 K.
- 19:11Then you will have the 400 K to pay the person instead of trying
- 19:16to get solid branding output, but you want to pay the person
- 19:1950K. Please, let's get realistic
- 19:21here. By the way, I don't sell
- 19:23branding services, so I'm not angry that, you know, you guys
- 19:27are mispricing me or something, just in case you get the wrong
- 19:30idea. So that's it pretty much.
- 19:34Or another thing, when you start off this way, like Coca-Cola or
- 19:39Nike on the streets, talking to people, going to somebody's
- 19:44office, trying to sell things directly from your boot, you get
- 19:49a sense of who your customer is. You get a sense of what it is
- 19:52they like, what it is that they don't like, and you're going to
- 19:56get all the data that you need that will inform your brand.
- 20:01So when the Nike people just do it, blah, blah, blah, you know,
- 20:05all that jazz, all that stuff. The reason why they're able to
- 20:09get the thing right is because they are there in National
- 20:12Stadium or, you know, Joey Legba or whatever.
- 20:15They're talking directly to people.
- 20:17So when the branding team sits down and they say, look, we're
- 20:21going to build the brand around this, around this, around that,
- 20:24it is not guess work. It is because they know and
- 20:26they've been interacting with customers one-on-one or on the
- 20:30Coca-Cola end, they've been interacting with distributors
- 20:33one-on-one. They know what it is that the
- 20:35distributors like. They know what it is that the
- 20:36final customer likes. And that is also another reason
- 20:39why I say that we need to take this approach so that
- 20:43eventually, when you do have enough money and you call a
- 20:47branding person in to say, Oh yeah, let's manufacture
- 20:49something, let's work on the brand, you'll be able to tell
- 20:52the branding person that, OK, these are my customers, this is
- 20:55who I target. This is how they like to be
- 20:57treated. This is how they like to be
- 20:58talked to. And with that information, you
- 21:00guys will now select the right colours, the right logos, the
- 21:04right fonts, have the right philosophy behind, you know,
- 21:10designing your website or whatever, you know, all the
- 21:12fancy stuff that you branding people have to do.
- 21:15So that's also the reason why I say we should put the sales
- 21:18thing before the brand thing because actually the sales thing
- 21:21will give you the money that you can use to build the brand and
- 21:24also give you the data that you need to build the brand.
- 21:28Instead of doing all this, guess what that happens where you call
- 21:30the branding person. First, you create the logo, you
- 21:33come up with market positioning, you say you want to do luxury
- 21:36luxury, and then you hit the market, but the clients that
- 21:40you're servicing clearly are not luxury.
- 21:42And then there's that mismatch. Your positioning, your logo,
- 21:45your everything screams luxury, but meanwhile you're dealing
- 21:48with everyday Joe, So sorry, Joe's and Janet, let me be.
- 21:55What's that word? Let me make it equal here.
- 21:58Anyway, this episode doesn't have to be a long one.
- 22:02Bottom line is if you'd like to get out of your brand obsession,
- 22:05trying to start up your small and medium scale business, or if
- 22:08you want to see how you can integrate good sales practices
- 22:10with your brand, then reach out to me and connect.
- 22:13My phone number is 08064662140. The country code is +234.
- 22:21If you're going to buzz direct no Allah, it's no problem.
- 22:24If you're going to call on LinkedIn, however, please send a
- 22:27message ahead of time because there are too many fraudsters on
- 22:29WhatsApp. I don't know what is going on,
- 22:31so send me a message first. Heard you on the podcast blah
- 22:34blah blah. Would love to chat.
- 22:36We'll ping back and forth and then we'll hop in a phone call
- 22:38and then you can also connect with me on LinkedIn.
- 22:41My name is Tavishima Ayedi, I'm the host of the show.
- 22:43Look at the link. We're currently listening to
- 22:45this episode. If you're on YouTube, it's
- 22:48bottom left. You see my name there.
- 22:50Boldly highlight it, copy it, paste it in LinkedIn.
- 22:55My profile will come up, send me a connection request, and we
- 22:58could be vibing in another 24 to 48 hours.
- 23:00So thank you very much for your time.
- 23:01And what do I even say again? Anyway, thank you very much for
- 23:06your time. I'll catch you guys tomorrow.