Though many companies would want to openly boast of the contributions of roadside trading to their bottom line, perhaps because of its illegality in some areas like Lagos following the implementation of the Lagos State Street Trading and Illegal Market Prohibition law, the benefits of the activity and strategy to manufacturers cannot be swept aside.
Roadside trading which is an aspect of small-scale retail trading involves selling of goods or services on a road or footpath or from a place adjacent to the road. The traders usually place along the road, a vehicle, a stall or a vending machine or any structure used for trading purposes. They may also be walking along the road selling or offering to sell goods and services to various consumers.
With a population of not less than 167million people, 67.1 per cent of the country’s population are living below the poverty line according to a recent report by the National Bureau of Statistics, NBS.
Research has it that the major customers of the roadside retailers are people at the bottom of the pyramid, representing the 67.1 % of the population, though some percentage of the affluent and critical audience also take pleasure in patronising hawkers on the road.
For most brands coming into the market either as new entrants or existing ones, the goal is to establish an identity in the market, get recognition and brand awareness, engage the consumers, enjoy consumers’ loyalty, brand advocate and of course, a larger market share, amongst others.
While there are different techniques including below and above the line advertisements that companies employ in achieving these key objectives, the roadside trading is another subtle and cheap enhancer that has given edges to brands.
Ranging from ICT, banking, fast moving consumer goods, farm products, fashion and kitchen items all have their market at the roadsides either being hefted on the head, shoulder, wheel barrow or shaded in a temporary stand in the driveways and alongside busy roads which can be easily accessed by passersby and even motorists.
According to marketing communications experts, there is no more fundamental way to increase the awareness of a brand than to place it in potential customers’ line of sight and at locations where people congregate, which mostly is the traditional open air market.
Managing Director of Seiko Energy Venture, Sikiru Aminu pointed out that roadside activity was another strategic and effective tool for brands.
“Some companies used hawkers to launch their products especially at major traffic points. You see hawkers selling these products to consumers who are trapped in their vehicles, especially consumable goods like drinks and biscuits.
More often than not, when a product enters the market, apart from the usual advertisement, the exposure given it by roadside traders keep the product resonating in consumers’ consciousness and in most cases, these traders offer price rebates often more than what you get at the modern supermarket because they want to quickly sell off their wares, make their little profit to cater for immediate needs or plough it back into trading.
In his view, a marketing communications expert, Mr. Isreal Bolaji, “such is an informal marketing technique that takes the brand to the people which is particularly very apt and effective especially for mass market brand.
“In terms of sales volume, such a retailing model contributes about 15 per cent of overall sales. It also offers a direct marketing opportunity to explain the benefits of products to end users directly. It also offers direct sales and merchandising,†he said.
Also, another communications expert, Julie Rains, stated that roadside enterprises may not become business empires that will one day be purchased by Google for billions of dollars, but they do provide insights into important marketing and operational truths.
Harping on convenience and accessibility as some of the score points of roadside sales, she said: “The inherent nature of the roadside stand is that customers drive or walk by on a regular basis. It’s much simpler to stop by a stand while commuting to work or running errands than to plan a trip to the grocery store or supermarket.
“Being so accessible and top-of-mind, without being intrusive, is a marketer’s dream.â€
