Nigeria is known as the retail economy of Africa so Walmart can enter the Nigeri

Question

Nigeria is known as the retail economy of Africa so Walmart can enter the Nigerian market and become quite successful. The middle class in the country is growing and it is spending more on food and consumer products. So a large number of the population falls under the Nigerian primary target market. The people who are below poverty line are struggling to have a decent life in Nigeria but they are spending on the food and consumer goods in a small way but its certainly a requirement for them.

The company should create the marketing plan keeping the major cities like Lagos and Ibadan in mind. Both the cities have the middle-class crowd and have the buying power to make the purchase at Walmart. Based on my research done for the business expansion of Zara in Nigeria, I can confidently say that the Nigerians are price sensitive, become loyal customers soon, and they are ready to experiment with new brands in the market.

So the Primary target market would be the working class people in both major cities and the secondary target market would be the below poverty population. We cannot neglect the below poverty audience for the fact that they are gaining the buying power as they are moving to the category of middle class. They will definitely have an impact on the business of Walmart in Nigeria. The company should play with the pricing and the same should be marketed aggressively. More than 10% of the entire country's population is considered as middle class and this is a huge number for Walmart to consider.

The estimated size would be 20 million people in the primary target market and at Least 45 million people in the secondary target market. We don't have to segment the market based on the gender and age as people of all age groups visit Walmart for their daily needs including children. With an overall market size of around 70 million, Walmart can easily market their products as there is no tough competition in the country at present. It will also gain the first mover advantage and gain the trust of Nigerians.

Explanation / Answer

In developing a Marketing plan for ringing Walmart to Nigeria, descrtibe target markets both primary and secondary and their estimated size.

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