Oluseye 1

Oluseye Toluwanimi
Victoria Crossan
BBB4M
14 November 2024

4-2E: Selling Canadian Products Abroad [9%]

(Ilich, 2013)
Introduction:
A Canadian snack product that I would like to introduce to my home country,
Nigeria, is the chocolate candy known as Smarties. Famous for its colourful
decoration and chocolatey taste, Smarties has been a long-time favourite candy
in states such as Germany, Australia, South Africa and Canada (Nestle, 2024).
Under the popular corporation known as Nestle, Smarties has been creating
wonderful sweet treats that have reached all parts of the globe, with no
artificial colours or flavours as well as the use of highly recyclable paper
packaging (Nestle, 2024). The light-hearted, yet satisfactory nature of the
product makes it a reasonable product to be marketed and imported into my
country Nigeria.

General Information:
Political, Social and Environmental Challenges
Nigeria, as a developing country, has numerous barriers and limitations that
make the importation of goods difficult. The country is faced with a number of
political, social and environmental problems that do well to further hinder the
process of successful importation. Political challenges in the sense that Nigeria
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has been faced with the issue of bad leadership for numerous years. Alongside
the presence of conflict caused by political competition, there is a high rate of
corruption between high-ranking officials that has affected the country on an
economic scale (USAID, 2016). Social challenges such as poverty,
unemployment, terrorism (in the form of a terrorist group known as Boko
Haram) and education inequality have been on the rise in Nigeria and have
greatly affected the economic standards and security of the country (LaVopa,
2021). Such problems lead to numerous other disadvantages for the country in
not only local but also international affairs. These problems divide Nigeria and
as a result, make the process of business between countries all the more
difficult. Environmental issues in Nigeria, although not as discussed, is another
major problem that hinders business in the country. Air pollution, Land
pollution, Water pollution and, especially Noise pollution, has severely
degraded the environment in which the Nigerian economy is set and has had
many adverse effects on the country (Folorunso & Folorunso, 2022). Erosion,
flooding, and oil spillage are common causes of such pollution in the country
and are prominent in all the six geo-political zones of the country (Folorunso &
Folorunso, 2022).
Geographic Location:
The Federal Republic of Nigeria is located in West Africa, on the border of the
Gulf of Guinea in the South, Chad and Cameroon in the East, the Republic of
Benin in the West and Niger in the North. It is known as the most populous
African country (Embassy of Nigeria Sweden, 2023).

(World Kids Travel Guide, n.d.)

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Natural Hazards or Environmental Issues:

In Nigeria, there have been many instances and regular occurrences of natural
disasters and hazards. Problems such as floods, landslides, drought, erosions,
storms and pest invasions appear frequently in the country. Many of these
disasters have been warranted due to the natural orientation of the country’s
vegetation and have led to devastation in many areas of the country
(Babamaagi et al., 2023). Previously mentioned environmental issues such as
land degradation (land pollution), erosion, oil spillage are still prevalent in the
country today (Folorunso & Folorunso, 2022).

(Meshioye, 2024).

National Population and Growth Rate:

As of Monday, November 18 2024, the population of Nigeria reached
234,520,044 people (Worldometer, 2024). The Nigerian population is estimated
to make up about 2.85% of the overall population of the entire
world(Worldometer, 2024). The country ranks at a number of 6 in the list for
countries by population (Worldometer, 2024). A significantly huge amount of
people.
This is the yearly growth rate of the country:
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(Worldometer, 2024)
According to the above table, it is sensible to say that Nigeria faces a steady
growth in population and has maintained such growth from as far back as
1960, when it gained its independence. As of 2024, the growth rate of the
country is about 2.1% and has been on a 2% growth from the years 1983 till
date (Worldometer, 2024).

Capital City and Major Cities:

The Capital of Nigeria is the Federal

Capital Territory known as Abuja. Abuja
lies in the centre of Nigeria, 480 km
Northeast of the former Capital city,
Lagos and was created in the 1980’s
(Britannica, 2019). As of 2024, Abuja is
estimated to have about 4,025,740
people and has a 4.85% annual change (World Population Review, 2024). Other
major cities in Nigeria include Lagos, the largest city in Nigeria with a
population of 9,000,000 people, Port Harcourt, with a population of about
1,148,665, Kaduna, who had 1,582,102 people and many others (World
Population Review, 2024b).
Picture of Abuja: (Ogbuenyi, 2022b)
Major Ethnic Group, Religion and Languages Spoken:
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There are three major ethnicities in Nigeria; Hausa in the North, Yoruba in the
Southwest and Igbo in the Southeast (MINISTRY OF FOREIGN AFFAIRS, 2022)
and these languages, apart from English and Pidgin, are the main languages
usually spoken throughout the country. The language varies depending on
which ethnic group the person speaking belongs to and due to the fact that
there are over 250 ethnic groups, there are multiple languages used by
Nigerians (MINISTRY OF FOREIGN AFFAIRS, 2022). In terms of religion, Nigeria is
mainly made up of both Christians and Muslims. Most Hausa people and a
majority of states in the Northern part of Nigeria as well as in Nigeria as a
whole are Muslims and have been Islam for as far back as the 10th century, the
other states are mainly made up of Christians with the the occasional
traditional worshipper (MINISTRY OF FOREIGN AFFAIRS, 2022).
Communication Systems:
There are numerous communication systems in Nigeria, including, radio,
television, fixed and mobile telephones, the internet and others. Among these
are telecommunication networks such as 9mobile, Airtel, MTN and Glo (Media
Landscapes, 2018). Television services such as GoTv and DSTV are made
available to Nigerians and internet service providers such as MTN and
Spectranet are also widely used throughout the country.

Current Trade Relationship:

The trade relationship between Nigeria and Canada is relatively good. Nigeria
was known to be Canada’s largest bilateral merchandise trading partner in the
entirety of Africa in 2023, with a bilateral merchandise trade of a total of
$3.6million. Canada’s main import from Nigeria comprises mineral fuels, oils
and cocoa (Canada, 2020). This shows a strong and reasonable trade
relationship between the two countries. Canada also exports a variety of
resources such as cereals, fertilisers, vehicles and equipment into Nigeria
(Canada, 2020).
Potential Barriers:
There are certain limitations and barriers that could impact international trade
between Canada and Nigeria.
1) Corruption: There is a high rate of corruption in the country. Crimes such as
embezzling, fraud, theft, bribery and others are common practices within the
Nigerian government and the country itself, rather it be business related or
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political.Corruption often leads to detrimental effects on the business and

economy as a whole. The presence of corruption at certain ports that should
enable the transfer of goods and services between countries would hinder the
business process and would become a barrier that negatively affects
international trade and relationships between countries. If there is corruption
on the site of business and the production process is disrupted, there would be
no opportunity for Canada to get imports from Nigeria, nor would Nigeria be
able to get exports from Canada, negatively affecting both countries.
2) Worldwide Issues: Worldwide issues such as war or terrorism in Nigeria
would definitely negatively affect and impact international trade with Canada.
War and the likes usually leads to high prices of goods and commodities due to
their rarity at that time as well as a slow rate of economic growth. A slow rate
of economic growth or increase would then lead to weaker relations with
international countries. Factors such as exchange rate and matters concerning
foreign diplomacy would most likely crumble and weaken the relationship
between the two countries. Not only the country’s economy would be weak
but the likelihood of international trade with Canada will significantly reduce.

Domestic Market-Entry Information:

Product Considerations:
In the process of introducing my product, Smarties, into Nigeria there are
numerous things to be considered. In Canada, Smarties are classified under the
name ‘Rockets’ which could appeal to the people of Nigeria as an unusual, yet
daring and adventurous name that would grab their attention (Candy
Funhouse, 2019) but since the people of Nigeria are a more traditional bunch,
retaining the brand name ‘Smarties’ would sell well there. They may associate
the word ‘Smarties’ to being smart and be more encouraged to buy the
product because of that pun based form of branding. The slogan of Smarties is
“Only Smarties have the answer” and this branding will encourage people to
buy from them. Intelligence is highly praised in Nigeria according to custom, so
the slogan will enable more traditionally inclined people to believe that
Smarties does indeed ‘have the answers’, the vibrancy and brightness of the
logo will also appeal to the customs and culture of the country as it is a country
that promotes liveliness and the colorfulness of the product enhances this.
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Concerning the taste and ingredients, the product has a chocolatey taste which
might not capture the attention of Nigerians as they are more concerned with
spicy foods and traditional meals. The ingredients used will not be a problem
however as there is a relatively significant amount of calcium provided in the
meal, of about 4% (Nestle, 2018). Despite being a small amount, Nigerians have
a wide variety of food that contain Calcium and find it to be very valuable.
There is, thankfully, no specific food item used in the production of Smarties
that would upset the people of Nigeria. The fact that Smarties come in
different flavours will attract Nigerians to it as diversity is praised in the
country, they thoroughly believe in the fact that ‘monotony kills interest’.
NAFDAC (National Agency for Food and Drug Administration and Control) is an
organisation in Nigeria that is responsible for the importation, distribution,
manufacturing etc. of goods and will be responsible for assessing the product
quality, packaging and labelling and product benefits of Smarties such as
ensuring that everything is well labelled and does not have any misleading
information and will thoroughly inspect the product (NAFDAC, n.d.). Language
may not necessarily be a problem because English is one of the most common
languages in Nigeria and Smarties is essentially written in and advertised in
English. It may need to be converted into different languages though if it wants
to reach a majority of the country. It is advisable that the Smarties label and
the like is translated into the language of the three major ethnic groups,
Yoruba, Hausa and Igbo as they may not be able to translate it into all the
different ethnic languages and apart from English, these three are the most
commonly spoken.
Place Considerations:
Concerning the choice of distribution channel, I believe it is best to go through
the most common channel of distribution. From the producers (in Canada) to
the wholesalers, to retailers and then to the consumers. Buying in bulk and
selling through wholesalers is the most popular distribution channel in Nigeria
so it is advised that the distribution channel used is concentrated on the
middlemen like retailers, but mainly wholesalers and wholesalers are beneficial
in the importation of goods into Nigeria. E-distribution is known as the digital
process of spreading products, services and/or information through electronic
channels (Editorial Staff, 2024). As beneficial as using E-distribution could be,
Nigeria has not yet reached that level of development so it would not be
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advised to use such means to properly distribute the products. Currently, there
is no branch of Smarties in Nigeria, or any country in Africa, so the company
would have to establish a place, preferably in a city as influential as Lagos or
Abuja, to open up shop and start selling. There are different types of licensing
agreements available in Nigeria such as copyright licence and trademark
licence, but there are also distribution licences put in place to give businesses
the opportunity to freely go through with business processes (Pavestones
Legal, 2023). Smarties will have to go through with company verification,
trademark, NAFDAC registration, Franchise and distribution agreement and a
Letter of Credit, before it can be fully assimilated into the country as a company
(Aluko, 2017). The Nigerian International Franchising Association is responsible
for franchising within the country, and they have defined franchising as a
business arrangement whereby the franchisor grants a franchisee permission
and rights to operate and distribute certain products or services in a specific
way, at a specific location for a specific period of time (Global Legal Group,
2024). The company would have to go through certain registration
requirements relating to the franchise system such as the use of trademarks,
supply of machinery and plant, supply of detailed engineer drawings, provision
of operating staff and the likes (Global Legal Group, 2024).

Pricing Considerations:
In terms of pricing, the best pricing strategy to use would be the penetration
pricing strategy. This is due to the fact that entering the market with a low price
would naturally attract consumers to the product. Nigeria has been facing large
periods of inflation throughout the years, where the prices of everything is high
and entering the market at a low price would naturally encourage consumers
to buy the product so even when the company decides to increase the price in
future, there would be many loyal customers who would be willing to buy the
product. Due to this, the demand for the product will be higher and the
company would have multiple opportunities to increase the price. It is heavily
advised that price skimming is completely avoided in this situation. The local
cost of labour in Nigeria is relatively low in comparison to other countries
(Iarossi et al., 2009). The minimum wage of work in Nigeria is currently
70,000NGN which amounts to $44 USD and $61.55 CAD, a reasonable price for
labour and if the company offers labour to multiple people they would not be
 Oluseye 9

facing many significant losses (Varrella, 2021). Nigeria is rich in many resources
such as cocoa and milk which are essential in the production of Smarties, there
are many other resources that are readily available and could cause the
company to save the money that could have been wasted on having to import
said resources from somewhere else. This also ultimately reduces the overall
price for the consumers in Nigeria. In order to get capital, the minimum capital
base is NGN 500 billion which is $417,747,729.49 CAD so this price must be put
into consideration when trying to acquire capital (HKTDC Research, 2024). The
company would also have to consider overhead costs such as exchanging their
currency into the Naira to cover the salaries of the people, insurance and all
other things that may not directly be linked to the product. The company
would have to contact the Nigerian Chamber of Shipping, a trade association
that is concerned with the formulation, implementation and monitoring of
maritime affairs technical matters and whatnot (Nigerian Chamber of Shipping,
2017). The company would also have to consider the different shipping fees in
Nigeria. Packaging and Inspection are still covered by NAFDAC (National Agency
for Food and Drug Administration and Control) to ensure that everything is
properly regulated and will not cause harm to consumers. The legal fees, plus
additional costs, can range from a total of NGN 15,000 to NGN 150,000 or more
(counseal, 2024). These fees need to be put into consideration when trying to
create business there.
Promotion Considerations:
In terms of advertising, the Smarties company has invested in all sorts of
advertising methods, mostly focusing on advertisements, posters, shirts,
posters and the like. The colorfulness and vibrancy of not only the product
itself but also the ads will easily attract the attention of people and will be a
smart way to get potential customers. In Nigeria, brightness and diversity are
associated with good things. The eye-catching nature of the product will peak
multiple people’s interest and increase its popularity within the country.
Although, there are not really a lot of advantages associated with Smarties as a
chocolate company that make it stand out, Smarties compares to its
competitors such as KitKat and M&M’s through its engagement with social
media, it regularly interacts with its followers and has a pronounced social
media presence, which encourages buyers to purchase the product. Smarties
also finds a way to make its cover and product look extremely attractive, so
 Oluseye 10

much so, people want to bite through their screens to get a taste (paulinaam,
2015). An advisable promotion tactic would be the creation of new ads,
tailored to suit the culture and customs of the country. Rather than using the
foreign advertisements, make the advertisement a little more personal and
make it pertain more to the Nigerian market and emphasising its success in
other countries. Also consider translating posters into more local languages and
using slang and phrases common to Nigerians to make them more interested
and engaged with the product.
Consumer Considerations:
The domestic target market demographic is mainly tweens and families.
Children will also be largely considered due to the fact that it is a chocolate
producing company. The demographic is children and pre-teens from the age
ranges of 6-12 as it is a convenient snack for people who like sugar. This love for
sugar is mostly found in children. Psychographic determinations are most likely
nostalgic and imagination driven. The child-like and youthful appearance of the
Smarties pack might cause people to become nostalgic and be encouraged to
buy the product or there could be people who are attracted to the creative and
imaginative nature of the product and become encouraged to buy the product.
Local cultural norms have a large part to play in all this as culture is one of the
most important things to Nigerians and they hold their cultures with pride and
high esteem. For example, celebrations and special occasions are always held
with utmost importance and extravagantly celebrated, if Smarties is to make
their brand available at these times or find a way to appeal to the entire
concept of the celebration, it would greatly influence people’s decision to buy
the products. This is also applicable in terms of education, seeing as intellectual
prowess is very valuable, so the whole concept of ‘Smarties’ and the slogan of
‘Only Smarties has the answer’ would cause people to automatically associate
it with being intellectually smart and encourage more people to buy it. In 2019,
24.16% of total household expenditure was spent on food consumed outside
the house (National Bureau of Statistics, 2019). The spending patterns of
Nigerians are usually planned and not all that impulsive, so it is essential that
the company gives them a reason to want to buy their product. Motivations of
domestic consumers include wanting to satisfy personal needs. This satisfaction
of personal needs mostly pertains to Maslow’s hierarchy of needs concerning
 Oluseye 11

esteem. The satisfaction of slight hunger would lead to the purchase of goods
such as Smarties.
Competition Considerations:
Direct competition would be other chocolate brands such as M&M’s, Kinder Joy
eggs, KitKat and the like. Indirect competition includes locally made sweets
such as puff puff, chin-chin, coconut candy and other sweets that have been
locally made and will cause competition for profit in terms of money seeing as
they are all small snacks meant to satisfy personal needs. There are numerous
local markets in Nigeria that make a living off selling their local-made sweets.
They have more experience between Nigerians and have higher advantages
concerning production and distribution costs. They most likely would not have
to spend as much money in hiring labour or looking for distribution channels
and due to their time and experience in this field it is likely they will serve as a
significant competition to the newly arrived Smarties company. They also have
better insight into the local customs and culture of Nigeria and will have an
easier time appealing to the nature of Nigerians. The product Smarties has
significant product differentiation by means of their packaging which is unique
to them as well as their quality of packaging and the quality of the product
itself. The way the Smarties are made and presented also make it stand out in
comparison to other products in the market. Due to the fact that Smarties is a
relatively well-known brand outside of the country and around the world, it has
brand equity that will make it seem even more important and significant in
comparison to other brands. It is highly recognised world-wide not only for its
good quality but the simplicity and attractiveness of its design that would make
it stand out among competitors.

Conclusion
Reflection:
The 4P’s are to be thoroughly considered in terms of Product, Price, Promotion
and Place. The product quality, benefits, packaging, labelling and how the
product is manufactured and presented overall are to be extensively assessed
to ensure that they do not offend the customs and traditions of the country
and do not cause any harm to the consumers consuming the product. Place in
terms of capital, distribution channels (wholesalers), branch plants and
licensing agreements are to be carefully considered to ensure the best place is
 Oluseye 12

used to gain the most influence and gain the most profit. Place is a significant
factor due to all the responsibilities surrounding it. Price is important because it
greatly affects the overall business procedures in terms of choosing an effective
pricing strategy that will appeal to Nigerians the most as well as the
accommodation of different costs e.g overhead, shipping, legal fees etc. By
taking this into consideration, the appropriate conversion can be made and the
planning of the product will go smoothly. The different conditions for each of
these costs based on the requirements of the country should be carefully
assessed and carried out. Promotion greatly affects how the company and the
product will be viewed by the general public. This includes means of
advertising that will mostly attract the attention of Nigerians and ensuring that
the advertisements are not demeaning or culturally offensive. For the
Consumer and Competition considerations, they are additionally, very
important factors to be considered. Concerning the consumer, they are always
right, so it is important that the Smarties brand ensures that the consumer is
always satisfied. This is done by understanding the consumer motivations and
trying to gain a deeper understanding of the consumer themself. Competition
is one of the most important things because once the competition is
understood, it will be easy coming up with strategies to overcome said
competition and dominate the market. This is done by acknowledging direct
and indirect competition as well as local competitive advantages and looking at
things such as product differentiation and brand equity which is a relatively
easy task in the country of Nigeria.
Ways Companies can use the 4P’s and 2C’s to Make Decisions :
Companies can use these concepts to make decisions about launching products
in the international market by;
1) Finding out consumer preferences: By applying the 4P’s and 2C’s, they
can understand what the consumers would want and be able to
ascertain and estimate exactly what they would need to ensure that the
consumers get exactly what they need. By doing this, they are assured
that the product will do successfully and be able to adapt the product
where needed to make sure they not only do not offend anyone but also
ensure that they appeal to the cultures and societal norms of that
particular market.
 Oluseye 13

2) Studying competitors in business: By applying these concepts, the

international business will be able to freely analyse and study the
patterns of competitors and adopt strategies that will enable them to
stay at the top of the market. Not only would they be increasing their
brand equity but it will also lead to consumer’s developing a preference
for the company’s particular product in whatever international market
the product is launched. This will ensure that the company will be able to
fight off potential competitors and tilt the market in their favour.

Benefits of International Trade in Canada:

1) Opportunity for Economic Growth: International trade within Canada will

allow for access to markets on a world-wide scale. The importation and
exportation of goods will not only strengthen relationships between
international companies and countries but also increase the demand for
a specific product outside of the country leading to a maximisation of
profit and greatly benefiting the economy of the country.
2) Creation of Employment Opportunities: The introduction of new skills
and different industries into the country will encourage the creation of
jobs and create multiple employment opportunities for those who are
unemployed which would not only benefit those people themselves, but
also the economy of Canada as a whole.

Drawbacks of Internal Trade in Canada:

1) Loss of Access to Global Resources: If trade is limited to within the

country. The country may not have enough resources that are readily
available in the country. This would lead to a significant loss because the
business will be unable to function properly without the proper
resources and will also be lacking in quality in comparison to importing
quality resources from another country.
2) Reduced Influence World Wide: International trade creates opportunities
to foster wholesome relationships between countries. The use of
internal trade will lead to weak relationships between countries and
Canada will lose presence globally. Its influence will be significantly
reduced as there are no trade opportunities between countries and no
 Oluseye 14

opportunities for Canada to create strong diplomatic relationships

between countries.

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