Rum Distributor Request Letter and Market Proposal for Nigeria Market

This assignment presents a distributor request letter and a corresponding market proposal designed for the Nigerian rum market. The letter, addressed to a distribution manager, expresses the interest of Rum Distributors Limited in securing distributorship of rum products in Nigeria. The proposal includes an introduction outlining the company's goals, followed by an industry report and analysis, which highlights the growth of the Nigerian rum market and consumer behavior, including spending habits and market segmentation strategies. A SWOT analysis is provided, identifying strengths, weaknesses, opportunities, and threats within the market. The proposal also outlines strategies for promoting rum products in Nigeria, such as establishing partnerships and building consumer trust. Competitive analysis and risk assessments are included, along with a conclusion that emphasizes the opportunities for new entrants despite existing risks. The assignment references various sources to support its analysis, including market reports and consumer behavior studies.

Running Head: DISTRIBUTOR REQUEST LETTER 1
Distributor Request Letter and Market Proposal
Students Name
Institution Affiliation

DISTRIBUTOR REQUEST LETTER 2
Distributor Request letter
To
Distribution Manager
Hampden Estate Rum Tour
Subject: Application for distributorship of Rum in Nigeria
Dear Sir/Madam,
I am writing this letter to notify you that my company Rum Distributors Limited is
willing to gain distributorship of your products in Nigeria. Our company has a firm market
position in Nigeria. We have been in business for the past seven years, so we have adequate
knowledge of the market situations and consumer demand in the country.
I have attached all documents related to our company and our achievements with the
letter for your review. We have a team of highly trained and experienced professionals who are
working hard to maintain the sales throughout the year. Therefore, I can assure you that our
company will provide best services and assistance to help you to resell the products in Nigeria.
A short marketing proposal plan is also attached to this letter, which will give you a brief
idea of the Rum market in Nigeria at present. For any further information, do not hesitate to
contact me on [e-mail] or you can call 0700568985.
Sincerely,
Manager
Rum Distributor

DISTRIBUTOR REQUEST LETTER 3
Introduction
The Marketing proposal plan will focus on the strategies and methods; marketing
techniques that Rum Distributors can adopt.
Industry report and analysis
According to (Euromonitor International 2012), the value of the Rum market in Nigeria
grew 13% in 2013. A chart is mentioned below to exhibit export and import data of Rum
products in Nigeria.
Consumer behavior
Nigeri' health Ministry stated that consumers in Nigeria spent nearly $4 billion on Rum
products every year. The amount had increased by $1 million in the year of 2014 and became 5$
(Blythe, 2013).
Market Segmentation
Market segmentation in Nigeria is Geographical Segmentation, Psychographic
segmentation, and Behavioral segmentation. Rum companies can target consumers according to
their geographic location and demand.
SWOT analysis
The main weakness of Rum market in Nigeria is it totally depends on the economic
growth of the country. Because of steady economic growth, the Rum market had great
opportunities but now the market is slowing down and as Nigeria’s GDP came down to 2.9% in

DISTRIBUTOR REQUEST LETTER 4
2014 (Creative Educational Video, Inc., & Insight Media Firm, 2009). It is also the main threat
to the Rum industry along with fierce competition.
Strategy to promote Rum product
Some strategies to exhibit a Rum in Nigerian market are, establishing a partnership with
someone who is already familiar with the market, joining hands with local partners, building
trust among the consumers, developing women business network and finally, developing a firm
social network presence
Rum exhibition strategies in Nigeria
Building trust among the consumers, developing a strong social network existence,
forming partnerships with people who already in the market and have a familiarity on how the
business is conducted, joining the local associates and lastly increasing women business
networks (Nigeria & Federal Government Economic Reform & Governance Project, 2007).
Competition
Leading Rum companies is Nigeria are Hagen & Co. Ltd, Hopeful Invet. Ltd and Jocletz
Products Ltd. This shows how the industry is competitive.
Opportunities
According to Business (2012), despite of fierce competition among the Rum companies
in Nigeria, there is another fact, which states that international companies of Rum are dominating
the market in Nigeria with 75% market share.

DISTRIBUTOR REQUEST LETTER 5
Risks
Entering the Rum market of Nigeria can be considered as risky at this moment. The
economy is falling so people are not showing same interest towards the products. Besides, some
companies are already present in the market.
Conclusion
In spite of having some risks, it is clear that Nigeria Rum market has an enormous
opportunity for new entrees. Proper marketing strategy can help an organization to achieve a
secure place in the Nigeria market.

DISTRIBUTOR REQUEST LETTER 6
References
Abam, F. I., Nwankwojike, B. N., Ohunakin, O. S., & Ojomu, S. A. (July 01, 2014). Energy
resource structure and on-going sustainable development policy in Nigeria: a review.
International Journal of Energy and Environmental Engineering, 5, 1-16.
Blythe, J. (2013). Consumer behaviour. London: SAGE.
Creative Educational Video, Inc., & Insight Media (Firm). (2009). SWOT analysis. Lubbock,
Tex.: CEV Multimedia.
In Cervigni, R., In Rogers, J. A., In Henrion, M., & World Bank. (2013). Low-Carbon
Development: Opportunities for Nigeria. Washington, D.C: The World Bank.
In Correia, A., In Gnoth, J., In Kozak, M., & In Fyall, A. (2015). Marketing places and spaces.
Melissen, J., & Sohn, Y. (2015). Understanding public diplomacy in East Asia: Middle powers
in a troubled region.
Nigeria., Nigeria., & Federal Government Economic Reform & Governance Project (Nigeria).
(2007). Consumption pattern in Nigeria. Nigeria: Federal Republic of Nigeria.