MarketingMix

S T R A T E G I C M A R K E T I N G I N S I G H T I Vo l 2 5 I s s u e N o . 1 / 2 I R 2 5 . 0 0 i n c l . v a t
 MarketingMix
I 0 2 I Book Review
Marketing Mix reviews brandvision by
David Taylor, a no-nonsense approach
to building successful brands.
I 0 4 I Ed’s note
I 0 6 I The DMA
This month the DMA reveals a new
founder member and Virgin Mobile
wax lyrical about direct marketing.
I 0 8 I News
All the latest gossip in the wonderful
world of the marketing mix.
I 1 3 I Expert Opinion:
Richard Duncan
Richard gets all shirty about
customer satisfaction
I 1 4 I Brand Anatomy
Adele Wapnick from Cross Colours
explains how the Nando’s brand has
developed over the years into one of
our most successful global brands.
I 1 6 I Community
Media
Community media is growing, but
where and why?
I 2 2 I Events
Events can help strengthen a brand
but what does it take to pull off a
great event?
I 3 3 I Expert Opinion:
Nici Stathacopoulos
Nici takes a look at your budget and
wonders what you base your
allocation on.
CONTENTS
I 3 4 I Cinema
Will the local cinema industry take a dive as
seen elsewhere in the world, or will it
manage to keep growing?
30 I 3 8 I Custom Publishing
A lucrative market for publishers but more
important for company branding. What
does it take to make a custom magazine
successful?
I 4 4 I 7 Day [B]itch
DJ Fresh lets us into his world of music,
10 radio, partying and family.
34
I 4 6 I African Media
The African Media Development Initiative
has released its media survey of 17
countries. Marketing Mix provides a
summary.
11 38 I 4 8 I POPAI
Marketing Mix introduces POPAI, the global
organisation for Marketing-At-Retail.
I 4 9 I Expert Opinion:
Nomalanga Nkosi
Nomalanga says global brands must
44 think local.
14 I 5 0 I Celebrity Marketing
Do you really know who are the hottest
celebrities in town, or are your
thoughts clouded by your age and
what you like?
I 5 4 I Expert Opinion:
49
Ian Rheeder
Ian says that CEM is the hottest topic
this year.
16
I 5 6 I Law Mix
Rowan Joseph explains how to make sure
your designs are not ripped off.
Vol 25 No. 1/2 I MarketingMix 1
by michelle sturman BOOK REVIEW
brandvision – How to Energize
Your Team to Drive Business Growth
According to the blurb on the back,
brandvision is a masterpiece of brand
building practical know-how. The very
first page of this book by David Taylor
(founder of brandgym and author of
brandgym and brandstretch) states
that this is not a theoretical textbook
but rather a ‘practical toolkit you use
day-to-day.’ He also warns one not to
expect groundbreaking new theories.
‘Rather, this is one small part of a big-
ger quest to help you cut through the
bull**** and buzzwords of branding
so that it adds more value for your
business.’
According to Taylor, a clear and
inspiring vision is the most important
growth driver for your business, fol-
lowed by aligning and engaging
organisation and consumer insights.
Taylor goes on to state that a clear and com-
pelling brand vision has both internal and
external benefits. The internal benefits are:
guidance, inspiration and engagement. The
external benefits are: clarity, consistency and
cut-through. One of the most important
statements that Taylor makes in brandvision is
that ‘Strategy tourists treat brand visioning as
a theoretical exercise that is separated from
the harsh reality of the business world. Their
overly-intellectual and introspective approach
is why branding has such a bad image in
many businesses, especially when you go out-
side the marketing department.’
Building on this Taylor explains the strategy
tourist’s guidebook – an amusing read
which will nevertheless probably ring true
for many people. Here’s a little teaser from
the tourist guide: ‘Take 10-12 quite junior
people with no real authority over the
brand. Fly them business class to a
posh hotel in a nice destination. Lock
in a windowless room for 2 days. Then
do the following:
• Overload them, with pages of PowerPoint
research debriefs…
• Ensure the team spend most or all of
their time trying to fill in the boxes…
• Encourage them to focus on word-
smithing, twiddling and fiddling…
• Focus on how to use the vision 100% on
communication…
2 MarketingMix I Vol 25 No. 1/2
of practical ‘how-to’ information. They are
filled with case studies from around the
world – both those that were successful and
those that sucked.
This is definitely a book to dip into,
depending on how far along your brand
visioning journey you are. Taylor’s no-non-
sense approach and down-to-earth attitude
is refreshing in an era of heavy branding
theory. This book should appeal to everyone,
from students to those who think that they
know it all. Also included in the back of the
book is a Brand Vision to Action Toolkit with
plenty of space in which to record your
own brand journey, using the tools provided
earlier in the book.
For more information on David Taylor and
brandgym, visit www.thebrandgym.com or
www.wheresthesausage.com for his blog. I
4 2 I POPAI SA
brandvision
“The external benefits are:
by David Taylor
clarity, consistency and John Wiley & Sons, Ltd
cut-through. One of the most R511
important statements that
Taylor makes in brandvision is Reading list
The Long Tail: How Endless Choice
that ‘Strategy tourists treat
Is Creating Unlimited Demand by
brand visioning as a theoretical Chris Anderson R164.
exercise that is separated from Perfect Pitch: The Art of Selling
the harsh reality of the Ideas and Winning New Business by
Jon Steel (Adweek Books) R492.
business world.”
Killer Web Content: Make the
– David Taylor Sale, Deliver the Service, Build the
Brand by Gerry McGovern (A & C
Black Publishers Ltd) R409.
Process works best if repeated annually Advertising Is Dead: Long Live
on the arrival of a new marketing director to Advertising! by Tom Himpe (Thames
come up with a new vision.’ & Hudson Ltd) R638.
One shouldn’t be discouraged by Taylor’s Ultimate Guide to Google AdWords
severe truthfulness since he then makes sure by Perry S. Marshall (Entrepreneur
that a positive and successful case study Press) R410.
turns this around, illustrating how strategy Made to Stick: Why Some Ideas
tourists can be turned into brand CEOs. Survive and Others Die by Chip
After his harsh introduction, the chapters Heath, Dan Heath (Random House
that follow map out how to make successful Books) R213.
brands via a journey of four key areas, All Marketers Are Liars: The
namely Search for True Insight, The Visioning Power of Telling Authentic Stories in
Journey, Bring the Vision to Life and Brand- a Low-Trust World by Seth Godin
Led Business. These four topics are then (Michael Joseph) R120.
each split into manageable bite-size chunks
 Do you dare miss out?
Subscribe to Marketing Mix
Contact Louise at louisew@systems.co.za
(011) 234 7008

MarketingMix
 by michelle sturman ED’S NOTE

A new start
Welcome to 2007. I have a feeling that this is going to be a great
year for everyone – particularly for Marketing Mix. There are
going to be a few changes to the magazine this year, namely our
move to bi-monthly as we concentrate on bringing you
specialised, branded Marketing Mix publications. Some of these
you will be familiar with: Migrate (the official Loeries magazine),
Newspaper 10 (to be released in time for the 60th World
Newspaper Congress to be held in June in Cape Town) and direct,
all about the world of direct marketing. There are a few others
that will appear during the course of this year but they are being
kept under wraps for now!
Marketing Mix has begun its foray into the world of events,
already a direct marketing event and the Measurable Marketing workshop that was held in
November last year. During this year we’ll host a number of other events that will showcase the
best case studies and local speakers, including the Consent Marketing in February, the Online
and Mobile Marketing Summit in March, the CRM Masterclass in June and a Sales Promotion
event (also in June).
We’ll announce other exciting Marketing Mix ventures as the year unfolds. I welcome any
suggestions that will assist you as a marketer and a reader of the magazine. Our ties with some
of the leading marketing organisations – the Direct Marketing Association, the Online
Publisher’s Association, the Loerie Awards and POPAI (see page 48 for further information) –
will serve to make sure that you’re always informed of the latest goings-on in these vital
marketing arenas.
As for me, I promise to keep my blog updated and look forward to bringing you the best
information regarding the whole marketing mix, including both local and international news.

Have a fabulous year

blog: http://mmxsa.blogspot.com

PROPRIETOR AND PUBLISHER: SUB-EDITOR: Sarah Webster Database:

Systems Publishers (Pty) Ltd. Email: sarahweb@mweb.co.za List Perfect
Tel: (011) 234 7008
ADVERTISING MANAGER:
North Block, Bradenham Hall, Terry Murphy
Mellis Road, Rivonia Email: terrym@systems.co.za

PUBLISHER: Terry Murphy

PRODUCTION: Spencer van Graan
EDITOR: Michelle Sturman Email: spencerg@systems.co.za
Email: michelles@systems.co.za
SUBSCRIPTION ENQUIRIES:
JOURNALIST: Fulvia Becatti Louise Wilsenach
Email: fulviab@systems.co.za Email: louisew@systems.co.za

Copyright of all material in this publication and supplements are reserved

by the proprietors, except where expressly stated. The opinions in this publication
do not necessarily represent the views of the publisher.

4 MarketingMix I Vol 25 No. 1/2

DMA

SA Post Office
is third founder
member
Seven valuable Founder Member spots remain subsequent to the Legislation update
SA Post Office announcing its decision to become a member. An update from Christiane Duval regarding the Protection of
According to Matshepo Majola, senior manager, Direct Mail Personal Information Bill:
Centre (a division of the SA Post Office), the organisation will be The PPI Bill has been delayed as the SA Law Commission has
able to make a huge difference to the industry through the DMA. had to evaluate all of the 63 submissions that were received. It is
“We’re totally committed to the growth of direct marketing in trying to accommodate them as much as possible without losing
South Africa. Our traditional activity as a business is the provision the spirit of the Constitution. (The DMA should have access to the
of a postal service, inside and outside of South Africa. However next draft as you read this.) The Bill is expected to be finalised at
this activity extends beyond the delivery of letters since we also the end of March and the DMA should have most of February to
provide other services to the SA public, government and business study it and comment on it. The DMA will look closely at the opt-
sector. Although international statistics continue to point to a out approach and hopes that it takes precedence.
decline or stagnation in the growth of mail volumes, South Africa An update from Joe van Blerk on progress with the Consumer
seems to paint a different picture. The economic conditions under Protection Bill:
which we operate and the moderate absorption of technology The BUSA Task Team has sorted out some contentious issues in
point to opportunities for the the Nedlac draft report and DMA members can
growth of mail services,” she says. obtain a copy on request. The dti is still working on
Matshepo goes on to say that the third draft of the bill. It is expected to go directly
direct marketing, especially in the to Cabinet during March or April after which it will
field of direct mail, opens up many go to the State Law Advisors for approximately
exciting possibilities in marketing three months before heading to the Parliamentary
and communication activities. “The Portfolio Committee. At this point BUSA will have
partnership with the DMA is aimed an opportunity to raise any outstanding issues.
at best serving the needs and At the same time, the regulations will be
expectations of the direct marketing drawn up and the dti has asked for input from the
industry while influencing its DMA. Once a draft is ready it will be circulated to
growth and enhancing its reputation all the role players for comment. The BUSA Task
both locally and internationally,” Team will engage with the DTI on the regulations
says Matshepo. before publication.

Founder Members are offered the following:

• One year free DMA corporate membership
• A free (full day) customised educational seminar about direct marketing, presented by industry specialists
• Representation on the DMA website
• Logo on all pro bono DMA ad placements
• Six free tables over the course of 12 months at various DMA events
• Showcasing at various relevant exhibitions and conferences
• An official Founder Member certificate
• An opportunity to join the planned mentoring programme

Special consideration will also be given to Founder Members through Marketing Mix, with respect to:
• Nominating topics and being invited to provide expert opinions, leading sponsorship rights and occupying premium advertising
positions within Marketing Mix
• Nominating topics for executive roundtables that are hosted by Marketing Mix
• A customised communication programme that can be implemented with the DMA and Marketing Mix

6 MarketingMix I Vol 25 No. 1/2

 DMA

Virgin Mobile explains why

direct marketing is vital
to its success...
Direct Marketing (DM) is becom-
ing increasingly important in the
mobile arena (particularly in the
higher LSMs) as we head towards
market saturation.
For Virgin Mobile, DM can give
rise to efficiencies in the following
ways:
 Cost reductions, arising from

the nature of the channels and

the automation of communications;
 Extended reach, arising from the nature of the channels; unique structure and function with a slight twist due to the
 Enhanced conversion-rates from prospect to purchaser, as affiliate relationships that we already have.
a result of customised targeting based on data about
each prospect; and
 Get prospects to respond to the offer immediately.

Given the extremely high cost of acquisition in our
market, we need to focus on highly targeted messag-
ing, unlike our main competitors who follow a
greater mass media strategy. Mass media is only really
effective if you have huge coverage in all channels,
which is not the Virgin Mobile strategy. Direct
marketing has helped to position us within the South
African mobile market. Our first contact with
consumers was through a direct e-mail campaign
called the Best Friends Test, in which we invited
people to play a game that tested them and their
three best friends in order to become eligible to win
a fabulous trip to London. This direct campaign
introduced us to the market and built a base of
people who are interested in our brand and who
would like to hear more from us. Direct marketing
therefore gave us our initial push and provided the
first prospects for us to convert to Virgin Mobile.
We work with all digital media and are experimenting
to see which of these work best for our customers.
Our viral campaigns have worked well for us thus far,
due to the need (of our customers and people who
are interested in our brand) for INFORMATION. We
use direct marketing to help people to acquire this
information in a fun way and to empower them to
make their own informed purchase decisions.
We’re always keeping ahead of technology and
working on ideas for mobile direct marketing, as well
as developing a rewards programme that will have a
Join the DMA…
To join, visit www.facilities.coza/dma
DMA fees are paid annually on the anniversary date of
joining the organisation and are based on the size of your
company. Payment can be made via cheque or EFT. An
invoice will be e-mailed as soon as you have completed
the online membership. Before you go to the link above
in order to register to become a member, you will need to
have the following information available:
• Your company details
• Your company coordinator’s details ie the person
who will be responsible for keeping your company
details up to date on a quarterly basis
• Your company decision maker’s details ie the person
who will authorise your membership of the DMA
and the essential payment of membership fees
• The details of staff members who you believe should
receive information updates from the DMA on an
ongoing basis. If you do not have all the details with
you, your company coordinator can go back into the
system at any time to update these details
Contact details:
(011) 577 2780
dma@facilities.co.za
www.dmasa.org

Vol 25 No. 1/2 I MarketingMix 7

NEWS
National Geographic
Launch date: March 1999
Platform: DStv, Channel 66
Programming times: 24 hours
Ownership: National Geographic
Society, British Sky Broadcasting, National
Geographic Channels International
Programme highlights: Gospel of
Judas, Seconds from Disaster,
Megastructures, In the Womb, The
Genographic Project, Unlocking Da Vinci’s
Code, Knights Templar, Air Crash
Investigation, Mad Labs
Number of viewers: 1.3 million
subscribers for DStv
Target market: High LSM, urban, male
aged 35+
Products: (not all available in South
Africa) TV channel, National Geographic
and National Geographic Kids magazines,
DVDs, books, clothing, websites,
accessories, toys, games.
Advertising rates: R3 500 primetime
and R40 000 for 40 spot package.
Details: National Geographic
Channel was launched in 1997
in Europe and Australia as a
subscription channel that covers
science, nature and history in
documentary format. In 1988 NGC Asia
was launched, followed by NGC US in
2001. The documentaries are produced
and/or commissioned by the National
Geographic Society and Channel and
revolve around adventure, exploration,
eyewitness accounts and culture. In 1997
there were four million subscribers in the
UK, Scandinavia and Australia. Today the
channel can be seen in 32 languages in
162 countries and in 218 million homes.
Programming strategy: For over seven
years the National Geographic Channel on
the DStv platform ran its feed from the
Benelux. This meant that programming
could only be scheduled for 18 hours a
day due to a shared European channel
strategy. All of this changed in August last
year when it became a 24-hour channel.
“Now we get the direct Central European
feed, finally allowing us to launch a 24-
hour service. This means that with the
time zones for Central Europe, premier
programmes can now be seen earlier in
the evening, especially during the week,”
says Errol Pretorius, regional director,
National Geographic Channel Africa. In
terms of viewership, NGC is among the
top 12 channels. Although content
remains a challenge due to the number of
different African languages, NGC is over-
coming these hurdles. Angola and
Mozambique, for example, can watch
NGC in Portuguese. Pretorius has moved
back to South Africa after spending six
years in the UK in order to focus on a
dedicated African office.

Choice gift
Instead of sending gifts to clients
and taking a wild guess at what
they may like, try Delicard, a per-
sonalised gift option service. Users
send recipients a choice of Delicard
Classic or Delicard Chic gift cards.
These are then accessed online and
the recipient is able to select six
gifts that they would prefer. Gifts include a spa trip, a golf bag
and Belgian chocolate, amongst others. Once the gift is ordered
either telephonically or through the website, it is delivered within
five working days. Each gift card can be handwritten with a per-
sonalised message. Branded Delicards are available for large
orders. Visit www.delicard.co.za for more information.
NEWS
Madonna and child
According to the Madonna Report presented by Alchemy Publishing
(which includes the findings of a Markinor study of 800 women in
LSM 6-10), mothers are not being marketed to as effectively as they
could be. This category represents a very important and lucrative
local market as it is estimated that there are approximately 9.7 mil-
lion parents with children under the age of 13. They earn an average
household income of R7 500 and have a market spend of about
R600 million (AMPS 2005). “I don’t need to tell you how powerful
this market is,” says Liezl de Swardt, MD, Alchemy Publishing. The
study found that while women generally expect the many changes
that pregnancy and birth will bring, they are unprepared for the
magnitude of these changes. They fear that they will be unable to
protect their children from harm (sexual abuse, illness, kidnapping)
and that they may be unable to provide them with a good educa-
tion. Mothers perceive themselves as a complex group (not as a sub-
set of women). They want to be understood without being patron-
ised and they desire information that will help them to do the best
for their children. “They are anxious, stressed and confused. They
want empathy, support and good service from marketers,” says de
Swardt. She stresses that the age of a woman’s child is more of a
factor than her income.
It’s interesting to note that one of the issues raised during the
presentation was the fact that there are no magazines that cater for
black or Indian women specifically. While black and Indian readership
of magazines such as Your Baby, Baba & Kleuter, etc have increased
over the past few years, they are still not niche enough and many
women feel that these magazines do not speak to them.
 NEWS

Internet zeitgeist - Year-end

Google has released its year-end ‘zeitgeist’ – a list of the top ten items that are searched for by the global audience on Google.com. The
list is about the fastest growing search queries rather than the most searched-for items by volume. Google also takes out the most popu-
lar hits which are always there. It should be noted that many of the terms will be from those that typed in the website address rather
than using the browser. Below are some of the most interesting search trends from Google Inc.

Google.com – Top Who is… Wedding… – Google also releases top

Searched 2006 – Top Top Searches monthly, country-specific
Searches 2006 search results. Here are the
2006 1 Nicole Kidman latest results from
1 Bebo 1 Borat 2 Tom Cruise Google.co.za:
2 myspace 2 Hezbollah 3 Avril Lavigne 1 ABSA 9 Nedbank
3 World Cup 3 EU 4 Campbell Brown 2 Mango Airlines 10 Paris Hilton
4 Metacafe 4 Hot 5 Tomkat 3 Vodacom 11 Vodacom4me
5 Radioblog 5 Capote 4 FNB 12 UNISA
Divorce… – Top 5 News24 13 Britney
Google News – Top Where is… – Top Searches 2006 6 Standard Bank Spears
Searches 2006 Searches 2006 1 Paul McCartney 7 Kulula 14 SAA
1 Paris Hilton 1 Togo 2 Travis Barker 8 Christmas 15 IOL
2 Orlando Bloom 2 Matt 3 Britney Spears
3 Cancer 3 Torino 4 Whitey Houston
4 Podcasting 4 Darfur 5 Eminem
5 Hurricane Katrina 5 Villanova

DESIGN INDABA 10
The fabulous not-to-be-missed Design
Indaba 10 conference that is held in
Cape Town every year is back to
celebrate its 10th anniversary. The
conference which attracts speakers from
some of the world’s best creatives,
graphic and industrial designers,
architects and trend forecasters, draws
over 2 000 delegates. Those attending
the conference include ad agencies,
corporate marketers, film production com-
panies, fashion and jewellery designers etc.
Keynote speakers this year include
Konstantin Grcic and Keith Helfet – both
industrial designers – as well as Daljit
Singh, Brian Eno, Jurgen Bey and David
Lachapelle.
Specialist Indabas featuring Li
Edelkoort, Cameron Sinclair and
Professor Dave Watkins will be taking
place, as well as a Young Designers
Simulcast.
What: Design Indaba 10
Where: Cape Town Convention Centre,
Cape Town
When: 21-23 February 2007
Cost: R3 995 for the three-day
conference
Website: www.designindaba.com

SA Design Awards Website of the month – Second Life

The annual SABS Design Institute Awards for Design
Excellence is calling for entries. The invitation is open to
designers, design teams and companies to enter product
designs into the disa Design Excellence Awards 2007.
Products should be designed in
South Africa and be currently avail-
able in the market with a service
record of a minimum of one year.
Products do not need to be manufactured in South
Africa. Categories include: urban environment and land-
scape products; education, leisure, sports goods and toys;
electronics and ICT, home and office ware; mechanical,
electrical power and agricultural engineering, transport,
automotive, mining and machinery; medical, healthcare
and other. The closing date for entries is 12 February
2007. For more information visit: www.sabs.co.za.
If you haven’t heard all the gossip
about Second Life, you’re missing
out. It’s not a new website but it’s
one that has attracted the interest
of major brands that include Dell,
BBC Radio, Reuters, Toyota, adidas,
Pontiac and American Apparel. Leo
Burnett Worldwide has also recently purchased a spot. Fundamentally
Second Life is a 3D virtual world that is inhabited by over 2 million resi-
dents. Basic membership is free but most people pay in order to buy
land and sell their goods and services. Currency is in Linden Dollars.
Thousands of gamers make real money out of Second Life and singer
Suzanne Vega has even played at a concert here. This could be a great
way of enhancing a local brand internationally, although sceptics believe
that there is no inherent value in placing a brand in this virtual world.
Visit www.secondlife.com for a lot more information on how this works.

1 0 MarketingMix I Vol 25 No. 1/2


An African Experience
Africa’s first experiential summit takes place in March and
some of the best local and international speakers will be
making presentations at the conference. The Exp Summit is
designed to educate marketers on experiential marketing as an important
means of connecting with consumers on a personal level; something
that is becoming increasingly difficult to do. “The aim of the experiential
Summit is to offer greater insight into the category of experiential
marketing through the case studies and learnings of leading marketers.
Advertising clutter dominates our lives and experiential marketing has
become an important marketing function. Personally connecting with
targeted consumers is essential to offering a better and more meaningful
understanding of the brand as well as to building long term relation-
ships that have a lifetime value,” says David Boon, CEO, Exp. The
Demand Activation Agency; creators of the summit.
The opening keynote speaker is a representative of the Disney
Institute and the presentation is entitled Loyalty, Disney Style. This
presentation is an interactive and informative benchmarking
programme and explores the business case for fostering loyalty. The
components of this keynote address include what loyalty is, why loyalty
matters and which steps to take to create loyalty connections.
A big draw for the event is the closing presentation: Martin
Lindstrom, author of Brand Sense, will speak on Experiential Marketing
as a Part of a Brand’s Strategic Plan. Lindstrom will explain that simply
promoting products or creating one-dimensional websites is not good
enough for today’s consumers. He will also explain how consumers are
in charge and how to get through to them.
The first X-Power session will be presented by Liz Bigham, VP/director
NEWS
of Brand Marketing, Jack Morton Worldwide; a lead-
ing experiential marketing agency. It will be entitled
Experiential Marketing: Inspiring Advocacy and Word
of Mouth and will draw on recent research that gauges the effectiveness
of experiential marketing. Bigham will also use case studies to explain
why experiential marketing should be leveraged as a core strategy.
The second session features Dr Jan Hofmeyr who is now the head of
Global Innovation, Synovate. Dr Hofmeyr is a member of the advisory
board of the Unilever Marketing Institute, University of Cape Town;
Honorary Research Associate in the Dept of applied Statistics, University
of Cape Town and Honorary Professor in the Dept of Business
Administration at the University of Stellenbosch. Dr Hofmeyr also
developed The Conversion Model, globally the most widely used
customer equity model. His session will deal with Revolutionising
Marketing Information.
The third session, Defining a Brand’s DNA, is provided by local brand
guru Jeremy Sampson, chairman, Interbrand Sampson. This session will
expand upon the importance of ‘Before-the-line’™ – defining and
understanding a brand before you can work with it.
There are six break-out sessions available featuring: sponsorship
marketing from the Coca-Cola Group, ABSA & Sponsorship, Exp; brand
engagement with David Boon and Mark Steinhobel, VWV Group;
Different Strokes for Different Folks from Xolisa Dyeshana, Joe Public.
What: African Experiential Summit 2007
When: 15 March 2007
Where: Monte Casino, Johannesburg
Website: www.exsummit.com
 NEWS
 Outdoor will continue to provide bigger
and bigger outdoor hoardings and will
make a significant move towards digital
boards and the introduction of some really
cool technology. This will also include the
use of Bluetooth and other means that con-
sumers can interact directly with an ad.
 Online will continue to grow tenfold and
advertisers will really begin to consider it seri-
ously and in a big way. Look at it in this way
– there are over four million Internet users.
Compare this to newspaper or magazine
readers, for example – or even radio. Those
that use the Internet, especially at home, are
mostly in the very desirable high LSM group.
2 007
So why are advertisers reluctant to advertise
online?? Let’s make 2007 the breakthrough
year for local online advertising.
 There will be an increasing number of
magazine launches and at the same time
there will be a consolidation of the market.
Media24 will continue to acquire more
niche publications for its ever-growing port-
folio. Consumer publications will continue
to be churned out and community maga-
zines will fly. Some of the more savvy maga-
zines will come up with new formats and a
few will move online. (For some bizarre rea-
son the general thinking of many magazine
editors is to stay away from online.) An
increasing number of titles will close or at
least post declining circulation figures, while
niche and customer publications will steal
the limelight.
 The newspaper industry will stay fairly
still, although we should expect to see
more innovative moves online – watch the
Mail & Guardian and the Sunday Times for
some of the most creative ways of enticing
readers. Newspaper owners are in for a
shock as the news emanating from Europe
and the US is revealed at the International
Newspaper Conference to be held in Cape
Town in June. Newspapers will continue to
modify content but this will be mainly in
the form of new supplements. They will
increasingly become more magazine-
focused, both in content and design. The
Daily Sun, Ilanga and Isolezwe will continue
to boost overall newspaper figures along
with the Sunday Sun and The Sowetan.
We may just be treated to our first free
newspaper, similar to The Metro or the
1 2 MarketingMix I Vol 25 No. 1/2
predictions
two new London ones (London Lite and
thelondonpaper). The question is, who will
be brave enough to take the first step?
 Citizen journalism will continue to
expand and the number of local blogs will
increase in growth and more importantly, in
influence. More and more South Africans
will make use of social networking sites such
as MySpace. In fact many already do – but
how many marketers have even bothered to
check these sites out? Someone, somewhere
will launch a local social networking site.
 MMS will really fly this year. There’s going
to be some shuffling around within the cell-
phone industry and innovation will be key.
Expect huge ad spend from the three net-
works as number portability grows in favour.
We might even be lucky enough to see the
formal release of DVB-H but we’re not hold-
ing out much hope, which is a shame.
 Experiential marketing and events will be
taken more seriously this year and we’ll see
some genuinely cool and inventive events
and campaigns. They will move out of the
realm of being exclusively for the youth
market and everyone will get to see, hear,
touch and feel.
 Africa will provide a more stable market
(as much as this is possible in Africa) as the
international focus from 2006 continues.
It’s definitely worth looking at opportunities
in certain key markets during this year,
before the Chinese really mark their territory.
 Nation branding will kick off both locally
and abroad and the rest of the world is
going to hear all our lovely crime, corrup-
tion and negative 2010 stories. This will be
a big battle between media owners,
commentators, government and the public.
 Radio is a tough one to predict. RAMS
for last year were positive but how much
longer can they be sustained in the light of
satellite radio, online radio and MP3 players?
2007 will still be a solid year for radio with
increasing revenues and a continued rise in
overall listeners.
 Content will become more available any-
time, anywhere, on anything. Apple is look-
ing at the cellphone; the video iPod is here;
cellphones will add more and more func-
tionality, the launch of the Zune, Nintendo
Wii, XBox 360, PlayStation 3 etc.
 M-Net loses its Open Time window dur-
ing the course of this year. Expect more
press coverage regarding those that have
applied for the new broadcast licences as
the race continues. Hopefully last year’s
excellent programming will continue and
MultiChoice, eTV and the SABC will consis-
tently bring out better programming for all.
It will be interesting to see if there are any
results regarding the PVR and if any
research has been done into ad-skipping.
Expect scores more PVR decoders to be
sold. We will see more reality and quiz
shows on the box.
 Direct marketing will continue to
increase its presence and be a force to be
reckoned with, especially as the Direct
Marketing Association picks up speed. The
only blimp here will be the new legislation
and its wide-ranging implementations.
 Alternative and commuter media will
continue to grow substantially although
new and innovative ways of communicating
with the audience will need to be found to
maintain consumer interest. A quick browse
for campaigns from abroad could spark
new ideas.
 Aside from the usual CSR programmes
(HIV, poverty etc) there will be an increased
global focus on going green – everything
from fuel, cars, clothes and food. Obesity
will still feature heavily so get ready for even
more weird and wonderful health foods
landing on our shelves.
 Townships will continue to thrive in terms
of new developments and shopping malls.
The focus on this market will gain ground
and the need to embrace township culture
will become vital for brand development.
 International brands that continue to
enter the country (especially in the retail
market segment) will really begin to shake
local brands that don’t get their act togeth-
er in terms of consumer innovation, service

Battle of the shirts
A battle that started over a century ago has
now reached global proportions and today
there is a burgeoning market in tailored work
shirts, suits and accessories. Whilst tailored
attire was once the exclusive domain of the
distinguished gentleman, it has now become
accessible to a far wider audience than the
founders of the fine establishments of Jermyn
Street in London could ever have anticipated.
Today the world of luxury tailored clothing has
outgrown its roots and is open for business
24-hours a day, thanks to online shopping.
There are a multitude of players vying for
the modern day business executives’ dollars,
pounds, euros and yen. The three major
brands that we focus on here are those that
are learned about by word of mouth. It’s
interesting to note their varying levels of
innovation in response to the evolution and
ever increasing demands and expectations of
their customers.
Thomas Pink opened its doors in Chelsea in
1984 with a modest 200 square foot store,
offering the very finest tailored shirts and silk
ties. The brand, which was started by three
pioneering brothers, was based on the 18th
Century Thomas Pink who made the best hunt-
ing coats that money could buy. This gave
birth to the expression ‘in the pink’ which
came from the pride that English gentlemen
took in wearing them. Today the Thomas Pink
network boasts nearly 40 outlets across
England, Ireland, Scotland, France, the USA,
China, Dubai and Thailand. This includes their
3 500 square foot flagship store in Jermyn
Street and their 4 300 square foot store in
Madison Avenue, New York, which is
heralded as the largest shirt store of its kind in
the world.
In 2003, Thomas Pink launched ‘Personally
Pink,’ a made to order shirt service that allows
for measurements, fittings and deliveries to be
taken and made respectively at the customer’s
home or office. This was rolled out at their
Madison Avenue branch in Autumn 2004 and
brings back to the market some of the original
features of the traditional tailor. In addition,
the company offers a personal shopping
service that offers expert personal advice along
EXPERT OPINION by richard duncan
with a special service for grooms and ushers,
as well as alterations, an ironing service and an
optional monogramming service. What also
makes Thomas Pink special is their distinctively
wrapped merchandise, the quality of their
product range and catalogue and the superior
level of customer service – all of which com-
bine to provide a unique balance of old and
new world personal service in the luxury cloth-
ing business. Their stores boast the custom of
the likes of Bill Clinton, Hugh Grant, Cate
Blanchett and Gwyneth Paltrow.
Another brand to follow in Pink’s footsteps
is T.M. Lewin, the ‘shirtmaker since 1898.’ They
have performed an amazing service for busi-
ness executives worldwide by supplementing
their 44 outlet UK based network with an
impressive mail order website and customer
service call centre. Perhaps even more signifi-
cantly they have taken the concept of modern
retail with its sales, bulk discounts, loyalty
rewards and savings into cyberspace. Unlike
Pink which targets the top echelons of busi-
ness, T.M. Lewin seeks to tap into the new
trends of mastige, attracting a wider business
executive market that seeks affordable prestige
and quality. The brand has truly embraced the
mail order concept by passing operational sav-
ings back to their customers through a
reduced pricing structure and a multi-buy sav-
ings scheme. Both brands have moved with
the times and now offer a comprehensive
range of products for the female executive,
which may well have their tailor forefathers
turning slightly in their graves.
One brand that appears to be following in
Pink’s footsteps is Café Coton. It has a distinct
French essence and was created in June 1990
by Charles-Augustin Jeuffrain, whose family
boasts nine generations of textile tradition.
Today the network spans France, the UK,
Spain, Italy, Switzerland, Belgium, Germany,
USA, Mexico, the Caribbean, Morocco, Russia,
Dubai and South Africa. Offering a more
modest range of quality shirts and ties and a
few accessories, the brand has more readily
adopted franchising and this may be the key to
some of its flaws.
Café Coton is a brand that I am familiar
with as I was a regular customer of their Cape
Town branches. While I was always greatly
impressed with the quality of their products, I
was not entirely convinced that the price was
competitive. I had repeated concerns with the
quality and consistency of the customer service
that was offered – not by their retail store staff
– but by their franchise management.
Having now experienced first hand the
quality of both the T.M. Lewin mail order
experience and the Thomas Pink experience,
I fear that Café Coton could come unstuck and
that their pricing structure could be exposed if
the likes of T.M. Lewin’s reach were to extend
to South Africa.
Café Coton certainly offers a quality product
but in my opinion they have a long way to go
before they match the overall experience that is
delivered by Thomas Pink and T.M. Lewin. They
will also have to contend with new kids on the
block, like Australian-based Herringbone, who
celebrate their 10th anniversary this year.
Whilst they might only have six stores at
present, they seem to have taken a leaf out of
Pink’s book and are set to take the world by
storm in the years to come. g
Richard Duncan
Sydney, Australia
+61 41 154 9791
lduncan@bigpond.net.au
Vol 25 No. 1/2 I MarketingMix 1 3
 by adele wapnick BRAND ANATOMY
Nando’s –
Forward-thinking, free-spirited, original,
vibrant, intelligent, fun, humorous and
irreverent – imagine what you can do with a
brand with these attributes. A great deal, in
ten years.
Nando’s started life as a quick service restau-
rant and the brand has evolved into what
theorists classify as ‘Fast Casual,’ a blend of
quick service and casual dining. These
restaurants derive their market share through
people who trade up from traditional fast food
outlets and down from casual dining concepts.
The category is catering to fast food consumers
with more discerning tastes and to casual
dining customers who are in search of
convenience and value for money. There aren’t
many concepts such as these in South Africa –
not many companies get it. However it is not
the industry but peoples’ needs that lead the
way – and Nando’s understands people’s needs.
Nando’s journey has been long and success-
ful and it’s not just about the chicken. Since
its inception Nando’s has understood the
impact and longevity of great marketing. By
marketing I mean the traditional roles of
advertising, design and PR, including the
not-so traditional internal marketing, which is
also something they do exceptionally well.
There are a number of elements that can
work together to provide the identity of a
brand. Classically the logo is the biggest
contributor, followed by the slogan or payoff
line. The ideal situation is to ensure greater
impact and sustainability by building on these
and creating layers which further enhance the
values and personality traits of the brand. This
is what we’ve attempted to do with Nando’s.
The brand began with a distinctive cockerel
logo and a particular typestyle that has
evolved over time. We adapted the cockerel so
that it became a little plumper and shorter and
developed the handwritten typeface so that it
provided a True- and PostScript-typeface. It
assisted us in no longer having to painstakingly
hand write each headline or sub text. Over the
years the brand has been given depth by these
layers. Along with the typeface, stories, myths,
legends, icons and appropriate messaging or
1 4 MarketingMix I Vol 25 No. 1/2
love the schicken..
sentiments, these elements have all combined
to create an offering and experience beyond
peri-peri chicken.
The real success of the brand lies in the fact
that all these brand icons are established and
form an essential part of its being, while the
vision of its marketing means that creativity
and innovation are constantly sought after.
Nothing remains the same for too long. It is
constantly evolving; an aspect of a forward-
thinking strategy.
Its success also lies in the consistent need to
deliver quality communication with meaning,
heart and humour. Couple this with innovation
and you have an equation that has the
potential for magic.
Below/alongside is some of the work that
you will no doubt recognise from being a
consumer – we hope. (Comprehending it in
the terms I have suggested will have been a
subconscious process, enabling your under-
standing of the brand.)
The stuff:
 The iconography has developed over the years
and includes the chilli, the sun, the heart and
some whirls and textures – singular and
simplistic in the beginning and now devel-
oped into full patterning
 Packaging has evolved over the years and is
in fact in the process of being revamped as
we write. Look out for the new designs
shortly!
 The menu’s were adapted to fit each
territory without losing their original id
when Nando’s went global – they are con-
sistent, if different
 Promotions are specific to countries and
their seasonal offerings.
With obesity figures so high, health and
nutrition is a big focus globally across all food
services. The new brand fits with this interna-
tional trend although it should be noted that
this has been a focus and objective of Nando’s
since its inception – A-grade chickens trimmed
of fat, marinated for 24 hours, flame-grilled…
This isn’t only about the external brand. I
 BRAND ANATOMY

. think Nando’s is so successful because

management considers the internal brand to
be as important as the external brand. We
began this process with the concept contained
in the statement “it’s the people who make
the chicken” and we have built on this idea in
all internal communication for the UK.
A customer care training programme was
developed on the basis of a performing arts kit.
The Nando’s Performing Arts kit teaches
Nandocas (people who work at Nando’s) the
art of customer service. Every time a Nandoca
arrives at work they are in a sense performing
on a stage. The customers are both their critics
and their audience. Like actors they need to be
professional and to know their lines and cues.
Each drawer in the kit contains a role-play sce-
nario or game or interactive training device to
ensure that extremely high levels of service are
covered. The minute a Nandoca takes the stage
they begin delivering the Nando’s Experience.
As the brand grew the need arose for some
international corporate guidelines – a sure sign
of maturity. So how does one capture the
essence of a brand such as Nando’s in a Brand
Style Guide, knowing full well that the users of
such a guide are the ‘keepers of the flame,’
requiring mandatory knowledge and absolute
inspiration? We captured all the ‘mandatories,’
learnings and trade secrets in a guide that par-
odied a paint-by-number paint tin (the tradi-
tional type) and called it the Art and Soul of
Nando’s. Marketing the unique soul of
Nando’s is an art that comes with a proud his-
tory and an exciting vision.
The Art and Soul provides a deeper knowl-
edge of Nando’s as a brand and an understand-
ing of the tools and processes that are required
to market Nando’s successfully in any country.
So the journey continues. As the brand
evolves strategically, so does the communication
and its visual interpretation. While one
assumes a greater level of maturity as the
responsibility grows, the knowledge that the
brand requirements are humour, fun and
irreverence helps to maintain the balance…
after all, life’s too short not to have some fun. g

Adele Wapnick
director, Cross Colours
011 442 2080
E-mail adele@crosscolour.co.za

Vol 25 No. 1/2 I MarketingMix 1 5

 by fulvia becatti COMMUNITY MEDIA
Community media is basking in its own
success. The past year or two have seen the
debut of community magazines Get It and
My Week, both of which are experiencing
healthy growth and expansion. According to
Gill Randall, joint MD, NAB, readers are call-
ing in and inquiring about subscriptions and
the knock-and-drop distribution of these
magazines. Community newspapers that have
free distribution (such as the Sandton
Chronicle and the Fourways Review) continue
to widen their reach as far afield as Botswana
and Swaziland. Community radio is also
growing in popularity.
Community papers have evolved a very
simple and very effective model. “Unique local
content has been the driver of their reader-
ship. Consumers have come to rely on their
newspapers for any local information… If
they have evolved, it has been in the way the
advertising is used by the market, particularly
1 6 MarketingMix I Vol 25 No. 1/2
with reference to loose insert advertising,”
says John Bowles, joint MD, NAB.
Research carried out by Ads24 has illus-
trated the extent to which consumers use
the loose inserts to plan their shopping,
manage their budgets and identify specials
or new products. “The significant growth in
advertising revenue generated by communi-
ty newspapers over the last two to three
years is testimony to the fact that commu-
nity papers, which were previously per-
ceived as the orphans of the newspaper
industry, have evolved to become more top-
of-mind amongst local and national advertis-
ers,” says Sedrick Taljaard, publisher, WP
Newspapers. With more titles entering the
market each year, advertisers are spoiled for
choice. “Coverage of an increased number of
targeted communities is now possible, which
is of great value to advertisers,” says Retha
van Zween, national sales manager, > p18
COMMUNITY MEDIA
>> p16 Community Newspapers, Ads24.
The growth of community newspapers has
had a great impact on the knock-and-drop
industry. Community papers are focused on the
LSM 6 to 10 areas and are allowed entry to the
suburbs that are restricted for security reasons,
while knock-and-drop distributors are not.
According to Trevor Ormerod, MD, Primedia
@Home, the knock-and-drop distribution of
leaflets declined by between five and eight per
cent between 1995 and 2005 and the industry
has had to shift its focus to the lower LSMs,
where it is seeing considerable growth.
NAB’s community newspapers reach around
80 per cent of purchasing decision makers in
the areas they are delivered to: some areas are
more community focused than others, such as
Johannesburg west, east and south, where
their reach can be as high as 90 per cent.
“While community newspapers need to be
promoted, by virtue of their geographic nature
and massive penetration into suburban areas
they also tend to promote themselves,” says
Bowles. WP Newspapers “reach a total of 750
000 households in the greater Cape Peninsula
Top performing community newspapers (ranked according to ABC
circulation figures):
Title
City Vision Johannesburg
Botswana Advertising
PE Express
Metroburger- Mitchell’s Plain
Plainsman
Algoa Sun
Vukani
City Vision Cape
The Mirror
Vaal Vision
Total community papers
Top performing Community Radio Stations:
Station
Unitra Community Radio
Jozi FM
Sekgosese Community Radio
Radio Tygerberg 104 FM
Radio Mafisa 93.4 FM
Univen Community Radio
Nkqubela Community Radio
Zibonele Community Radio
Radio 786/ Voice of the Cape
Barberton Community Radio
1 8 MarketingMix I Vol 25 No. 1/2
every week,” says Taljaard.
Population growth is one of the factors that
impact on the growth and development of
community newspapers. “We review our print
orders annually and grow the distribution in
response to population growth in different
areas,” says Dave Hill, editor, Cape Community
Papers. They are currently tracking the growth
in the West Coast region surrounding
Tableview. According to Media24’s advertising
manager for the Eastern Cape, Reinaard Du
Plessis, the increase in the construction of
townhouse complexes and shopping and
lifestyle centres across the country is encourag-
ing the growth of community newspapers.
“Our greatest growth has been in the Nelson
Mandela Metropole and in surrounding areas
such as Jeffreys Bay, Humansdorp and St.
Francis – and of course, there are the 2010
FIFA World Cup plans,” says Du Plessis. Ads 24
is also expecting huge growth in the Kathu
region of the Northern Cape.
The expansion of community newspapers
into the previously disadvantaged areas and
townships is proving very successful. “Raw
data from our soon to be launched ROOTS
007 survey has shown that residents have
already begun to rely on their local newspapers
and that advertising support is increasing dra-
Total circulation (ABC, July- September 2006) matically,” says Bowles. He adds that while
272 605 community papers were traditionally regarded
89 965 as a retail medium, the Soweto papers have
89 806 attracted a lot of FMCG and branded advertis-
83 340 ing. “Generally the market has seen the need
80 987 to expose their brands to what we believe to
76 154 be the epicentre of SA’s future economic
75 560 growth – this has to be Soweto,” says Bowles.
70 000 As more national retailers establish themselves
65 000 in Soweto they bring in a wider range of prod-
64 946 ucts and stock, which means that consumers
4 199 953 have more choice.
In the Cape, WP Newspapers’ City Vision
papers are seeing huge growth in the town-
Listeners (RAMS October 2006) ship areas. “There are two challenges that we
413 000 as publishers of community newspapers are
398 000 dealing with. Firstly we need to change the
295 000 perception (of potential advertisers outside of
294 000 the townships) that this market is all low
222 000 income and doesn’t have much disposable
191 000 income. Secondly, we need to educate the
173 000 local retail advertisers in the townships. Word
160 000 of mouth advertising is not the Alfa and
158 000 Omega and they can extend their reach by
153 000 advertising in their local community newspa-
pers,” says Taljaard. He stresses that the > p20
COMMUNITY MEDIA
>> p18 up and coming black middle class
don’t always leave the townships once they
are earning more; most prefer to remain in
their township communities. “With low hous-
ing costs, this market has a lot of disposable
income available. Furthermore, it doesn’t come
cheap – people are brand conscious and they
want quality. Price is not an issue and once
they are hooked on a brand they remain loyal
to it,” he says. Du Plessis believes that literacy
has grown amongst this market thanks to
greater access to educational facilities: “It can
no longer be seen as anything other than a
unique, educated, passionate community.”
Hill explains that Independent Cape’s
township title, Vukani, is delivered to over 80
000 homes in the West Coast area and is pub-
lished in English and Xhosa. Advertisers are
seeing positive results and the title’s readers
are relating well to a paper that is written in
their first language.
With the growing demand both nationally
and internationally for local news, analysts
expect community newspapers to maintain
solid growth. “Today’s more mature con-
sumers understand the role of advertising and
use it to fit/suit their lives… the frame of mind
that a consumer is in when they are exposed
to the various media choices is crucial when
planning media. Fortunately local newspapers
are in a very dominant position regarding
frame of mind when it comes to the planning
of shopping decisions,” says Bowles.
The explosive growth of community papers
has raised questions about their quality.
Ormerod is concerned that community news-
papers have become nothing more than a car-
rier of adverts. “News content has deteriorated
and a minimum number of local stories are
carried. A lot of the news content seems to be
syndicated and premium rates are charged for
inserts,” he says.
However, quality issues are not preventing
the newspapers from extending the brand into
other formats, although online migration may
be fairly slow. “This does not mean that a
media owner should not launch such a project
(should they be able to absorb the costs) since
the first-to-market advantage should not be
underestimated. With technologies such as
Wi-Max and broadband-over-power lines
being actively investigated by municipalities
such as Tshwane, community websites might
well become a reality,” says Du Plessis.
Media24 has taken the lead in this regard –
2 0 MarketingMix I Vol 25 No. 1/2
many of their community papers are already
online. “In fact Helderberg.com, the virtual vil-
lage for DistrictMail and HelderMail in Boland,
was one of the first community newspapers to
launch its website back in the early
90s,” says van Zween.
NAB and Media24 have both ven-
tured into the domain of the communi-
ty magazine: they publish Get It and My
Week respectively. Both publications
seem to be doing well and their reach is
expanding. Get It covers 450 suburbs; its
circulation has exceeded 295 000 and
more than 19 versions of the mag are
available. My Week destributes 420 000
magazines across 17 zones according to
managing editor, Angelique Arde. “The
market loves Get It and local advertisers in par-
ticular enjoy having a magazine envi-
ronment for their community,” says
Bowles. According to Bruce Sturgeon,
CEO, Caxton Community Newspapers,
research and trends indicate that
consumer interest in lifestyle topics is
broadening (increased interest in home
renovation, travel, eating out, etc). “While
the 19 Get It editions currently being
published (more editions are scheduled for
next year) follow a standard recipe, each
one has its own editorial team focused on
the community that it serves,” says
Sturgeon. Community mags do not carry a
cover price as yet although there are
indications that consumers would be
willing to pay the postage fees to have
the mags delivered to them.
Community radio is also faring very
well. While total commercial radio
listening dropped from 75 per cent in
2005 to 74 per cent in 2006, com-
munity radio listening has jumped
from 16 per cent to almost 19 per
cent (AMPS 2006). It seems that
the localised content and community
focus of these stations has paid off.
Community TV has shown no growth or
innovation over the last few months
and the reason for this is unclear.
According to contacts at ICASA,
although planned for 2006, TV licens-
ing for community TV will only be
granted in early 2007 (due to
delays). They are confident that
community TV will take off once
licenses have been granted. g
by fulvia becatti EVENTS
Events excitement
With below-the-line communications
becoming more popular as the focus shifts to
the consumer’s experience of a brand, mar-
keters could look to events and experiential
marketing for help. “This is especially true for
the brands that have limited ATL budgets;
they just don’t have enough scale to break
through the clutter,” says Abey Mokgwatsane,
group marketing director, VWV. Clients are
demanding more innovative means through
which to engage with the consumer. “Events
are the ultimate choice in any communica-
tions process as all five senses are applied to
communicate the message,” says Nicole de
Klerk, general manager, Thebe Events and
Productions. While exhibitions are defined as
‘hard sell’ events, experiential events offer a
more subtle approach. “If we appeal to a con-
sumer and subtly drive a brand experience
into the event, the consumer will understand
and see the benefits that the brand has to
offer their lifestyle,” says David Boon, CEO
South Africa, EXP Agency.
While exhibitions and conferences allow
for some form of measurability, experiential
events are something of a wildcard. “It is vir-
tually impossible to put a value to an event…
If a synergy exists between the event organis-
er, the client and all of the suppliers, the
event will always deliver a return on invest-
ment. If the client walks away having pleased
the audience, the investment is justified,” says
Claudia Eicker, creative director, Creative
Directions. Client satisfaction and positive
consumer responses are the obvious indica-
tions that an event has done well although
these are not easily measured in terms of tan-
gible ROI. “It’s an industry worth millions of
Rands. However, I hasten to add that it is not
a get-rich-quick scheme. Customers are
increasingly becoming more value-for-money
orientated and they want their Rands’
worth,” says de Klerk. Clients compare both
price and value before making an informed
decision to ensure that what they see is what
they get.
The trend towards experiential campaigns
shows no indication of slowing. Analysts are
confident that we will see more innovative
and interesting event ideas, as well as a focus
on interactivity. “Experiential events will
demonstrate richer strategic thinking and
2 2 MarketingMix I Vol 25 No. 1/2
they will become more measurable. Both of
these factors will be driven by the additional
resources that will be allocated to experien-
tial. As budgets increase, so too will the need
to produce more informed and accountable
work,” says Mokgwatsane. He believes that it
will become increasingly important for agen-
cies to create experiential divisions if they
don’t already have them.
The future looks bright for experiential
marketing and it is expected that the event
side will become an important part of brand
activation. “As marketers we are going to get
better at activating brand experiences
through a deeper understanding of how con-
sumer brain behaviour works,” says Boon.
“The only constraints will be budget and the
degree of creativity,” adds Ian Watts, AV
development manager, Gearhouse.
With this industry booming, it is comforting
to know that legislation, industry standards
and ethical practices are healthy. Rowena
Hudgson, marketing and PR assistant, EXSA,
says that EXSA is currently working with the
dti to raise the credibility of exhibitions and to
improve industry standards. Guaranteeing the
safety of guests is a major local challenge “We
have a high level of expertise in our industry…
legislation ensures that our safety standards
are of the highest quality and that copyrights
are adhered to,” says Eicker. The Safety at
Sports and Recreational Events Bill, which is
soon to be passed, will also have an impact
on the industry. While there are many risks
that the industry must deal with (including
crowd management, new sites and suppliers,
high-risk activities and new communication
mediums), experienced agencies have policies
and procedures in place that effectively
manage these. Craig Shapiro, director, Liquid
Chefs, says that while alcohol makes it difficult
to control peoples’ actions, you can control
how much they drink, for example, or who
drives them home. Liquid Chefs barmen are
trained to identify guests who have over-
indulged and to stop serving them. They also
make sure that they have a safe ride home.
“Clients should request a list of previous
events that have been successfully organised,
as well as reference letters from other clients,”
says Eicker.
Deadlines and time management loom
large amongst the day-to-day challenges that
face this industry. “The show must go on, so
you have to stick to your deadlines and man-
age your clients,” says Eicker. Logistical chal-
lenges for specialist agencies include factors
such as the time lapse between the concept,
design acceptance and delivery. “What does-
n’t work is when a marketer insists on the
WOW factor for the sake of the spectacle. Fit
the staging of the event to the rationale –
sometimes the simplest idea works best and
then the WOW factor happens naturally,”
says Robyn D’Alessandro, marketing
manager, Gearhouse.
South Africa is well-equipped in terms of
events and industry players insist that we are
on a par globally. “In terms of design South
Africa certainly surpasses many countries,”
says Hudgson. Both the venues and target
markets are varied. “South Africa’s event
industry has the capacity, the know-how and
the resilience to stage world-class events,”
says de Klerk. Value for money is a major
draw card for the international market.
Looking ahead, it seems that there are no
limits to what experiential events can deliver. As
Mokgwatsane puts it, “The injustice occurs
when you limit the scope of experiential
marketing to the actual physical experience and
when you assume that Experiential Agencies
aren’t able to leverage other mediums such as
TV, Internet, SMS, direct mail etc, for the purpose
of embellishing consumer experiences.” g
How does one ‘do’ an experiential
event? According to EXP Agency’s
CEO, David Boon, there are seven key
considerations.
• Understand the brand opportunity
• Understand the consumer reality
• Go to the consumer
• Activate a brand experience
• Own the space that you activate in
• Activate in an appealing/entertaining
manner
• Let the consumer escape with the brand
EVENTS
Please note that case studies have been supplied by the event companies.
Vegas Nights D1 Oils Africa year-end event
November 2006 saw Vegas Nights hosting
the D1 Oils Africa year-end event at the
Bryanston Country Club in Gauteng.
According to Vegas Nights CEO, Dion
Mostert, the event’s success is attributable to
impeccable planning. “Every detail was exam-
“Many factors ensure a successful casino evening,
beginning with the equipment which has to be
authentic enough to give it a real casino feel. The
croupiers are all professionally trained and they have
to fit a certain personality in order to deal and enter-
tain at the same time. They are also trained to pull
everyone into the game regardless of their knowl-
edge.” – Dion Mostert, Vegas Nights
ined time and time again and nothing was
left to chance,” he says. The event was
planned over two months. “Many factors
ensure a successful casino evening, beginning
with the equipment which has to be authen-
tic enough to give it a real casino feel. The
2 4 MarketingMix I Vol 25 No. 1/2
croupiers are all professionally trained and
they have to fit a certain personality in order
to deal and entertain at the same time. They
are also trained to pull everyone into the
game regardless of their knowledge,” says
Mostert. All of the above ensured that Vegas
Nights met the request of client D1 Oils Africa
to draw all of their guests into the games
evening. The funny money was branded with
the D1 Oils logo and the currency was named
D1 Dollars.
A casino manager monitored the winnings
and distribution of prizes, while underhand
dealings added to the overall atmosphere.
The Vegas showgirls lent the event further
credibility and photo opportunities; they were
also trained as hostesses. “Later in the
evening, two of the staff members swapped
clothes with them and paraded around in
Vegas showgirl costumes, amid roars of
laughter from the guests,” says Mostert.
The Vegas theme decor was arranged by
Fiona of Unlimited Events. The decor is flexible
and is adapted for each Vegas event. The
guest list of 200 included staff and clients
from all over Africa. g

Please note that case studies have been supplied by the event companies.
The Events Rock Challenge
Thebe Events has managed the Rock
Challenge in South Africa on behalf of the Be
Your Best Foundation for two years. The event
promotes positive lifestyle messages and is
supported by the Industry Association for
Responsible Alcohol Use (ARA). It was initiat-
ed in Australia more than 25 years ago and is
now produced in several countries across
the globe.
Thebe Events has grown this event from a
two-night production to a ten night show,
involving more than 135 schools from five
provinces. The ten events have been staged in
VWV Brutal Fruit Fantasy Fruition
The Brutal Fruit Fantasy Fruition campaign was
the culmination of a multi-platform brand acti-
vation that spanned radio, web and trial pro-
motions. The Party was hosted in three individ-
ually themed rooms that represented different
facets of the Brutal Fruit brand. “The show-
I learned that the future of experiential marketing is
about collaborating with different mediums to ensure
the maximum impact of an experience, latest
variant.” – Abey Mokgwatsane, Brutal Fruit
EVENTS
Johannesburg, Durban, Bloemfontein,
Kimberley, Cape Town and Khayalitsha. Thebe
achieved this growth by sourcing additional
sponsorships and by negotiating preferential
rates with suppliers, making the process pain-
less for the client. “Given the magnitude of a
national tour of these proportions, the timing
of the arrival of goods on site is of extreme
importance. You also need to remember the
team’s fatigue; you are working with people,”
says Carol Weaving, MD, Thebe Exhibitions
and Events Group, South Africa.
Participating learners are transported to the
venues where they participate in educational
activities that promote important health and
lifestyle messages in an entertaining way. The
fireworks that were held in Khayelitsha remain
a highlight for the Thebe team. “We are privi-
leged to be in a position to contribute to
social upliftment in South Africa through
what we do best – the staging of professional
events and productions,” says Carol Weaving,
MD, Thebe Exhibitions and Events Group,
South Africa. g
stopper was the surprise revelation of
Lavacious Lemon – Brutal Fruit’s latest variant,”
says Abey Mokgwatsane, group marketing
director, VWV. The event used environmental
design, dance, food, celebrity and surprise to
create a memorable, multi-sensory experience.
“What was most inspiring for me was the fact
that the whole experience was the manifesta-
tion of a nice idea that was flawlessly pursued
across multiple platforms. I learned that the
future of experiential marketing is about
collaborating with different mediums to
ensure the maximum impact of an
experience,” says Mokgwatsane. g
Vol 25 No. 1/2 I MarketingMix 2 7
EVENTS
Please note that case studies have been supplied by the event companies.
The winwin group’s Harmony Gold VCT campaign
Harmony Gold joined forces with the
winwin group to create a campaign which
would change attitudes and behaviours
around HIV/Aids, while also supporting
Harmony Gold’s VCT (Voluntary Counselling
and Testing) programme at the Evander Mine
site in Mpumalanga. Over a four month peri-
od the campaign addressed 6 000 miners and
surrounding community members. The strate-
gy involved an integrated campaign known as
the Unleash formula: Connect, Involve and
Unleash. These three defined triggers engage
people and deliver the desired impact. In
order to Connect the winwin team spent a
2 8 MarketingMix I Vol 25 No. 1/2
week on the mine, conducting workshops,
interviews and focus groups etc with everyone
from mineworkers and board-members to tra-
ditional healers and sex workers. Their pur-
pose was to explore the attitudes and behav-
iour around HIV and Aids. “The entire stake-
holder community was drawn into the
process. We believe that any engagement
needs to be built on a great idea and on a
sound theoretical understanding and that it
also needs to be respectful of the unique local
culture and its idiosyncrasies,” says David
Germond, winwin group. The team ‘declared
war on HIV/AIDS.’
To Involve, the team engaged key person-
nel from management, unions, healthcare
providers and peer group educators. Some of
the activities included the painting of informa-
tive wall murals by community artists, public
events to drive education as well as the use of
platforms such as mine radio and industrial
theatre to initiate and sustain momentum.
To Unleash, the winwin group educated
peer group educators and managers exten-
sively. “The results speak for themselves. After
a five week VCT blitz, more than 60 per cent
of the mine’s population had been tested and
knew their status! Through their continued
participation the disease management pro-
gramme is making good progress. It is evident
that this is just the beginning of a significant
change in the attitudes and behaviours on the
mine,” says Germond. g
EVENTS
Please note that case studies have been supplied by the event companies.

Maverick Standard Bank Pro-20 Series cricket

The Standard Bank Pro-20 series events
have become the global benchmark for the
activation of this format of cricket. The series,
which has evolved with each season, delivers
at more than just a stadium level. Creative ele-
ments (including mascots, hard hats, dunk
Sportainment in the truest sense of the word,”
says Andrew Ross, creative director, Maverick.
“No stadium eventing element at a Pro-20
match is activated without a reason. We aim to
deliver and add credible value to the fantastic
cricket action on the field; we don’t get
there are many logistical challenges. Attention
to detail is essential to successful execution and
the safety of stadium spectators.
According to the Maverick team, research
has indicated that the Standard Bank brand
and the eventing aspects in the stadium have

tanks, etc) have made this series popular with involved in sideshows that detract from the become synonymous with the Pro-20 series.
fans of all ages. “In order to ensure maximum game,” he says. With 18 matches being played Maverick constantly seeks to develop, chal-
crowd focus and impact where it matters in 10 stadiums nationwide over the one month lenge and question existing norms to ensure
most, Pro-20 must remain about period of the domestic twenty over season, that they deliver innovative event concepts. g

Subaru Annual Dealers’ Conference

Icarus Concept Design provided the decor
and styling for Subaru’s Annual Dealers’
Conference, held at the Kyalami Theatre on
the Track on 28 October 2006. The confer-
ence was built around a new marketing and
business strategy, which focused on words
beginning with the letter R. The theme posed
the SMS question: ‘R U Subaru’ during the
daytime conference (the R and the U are
reflected in the brand name, Subaru). During
the evening awards and gala dinner, an SMS
answered ‘U R Subaru.’
The evening gala event was used as a plat-
form for self-reflection. Mirrors were incorpo-
rated into all elements of the event, from the was made up of five moving mirror panels.
décor to the menus and the staging. Decor Dancers and artists – dressed in shimmering
and styling specialists Icarus CD transformed costumes – performed mirror-image move-
the awards and gala dinner venue into a ments and dances. “The key to any successful
world of light and reflections. Large panels event is taking the client’s needs and translating
made up of mirrors were suspended from the them into every element of the event, visually
ceiling, seemingly in mid-air. Pyramids of mir- and psychologically enticing the audience into
ror, lit internally and surrounded by blue and a strong belief and passion for the message
white live wire pebbles, formed the table cen- and the brand,” says Claudia
trepieces. An enormous mirror mobile floated Eicker, creative director, Creative Directions –
above the audience, while the stage backdrop The event coordinators. g

3 0 MarketingMix I Vol 25 No. 1/2

 Events – MarketingMix

Sponsorship
Opportunities
Events – Sponsorship opportunities
Intellectual leadership positioning
Marketing Mix offers sponsors a range of benefits integrating print and face to face
marketing at the events. Sponsors can select the range of benefits appropriate to their
communication objectives.

Events
• Branding at events
• Info desks at events
• Inserts in delegate packs
• Access to delegate list
• Right to nominate topics
• Right to invite VIP prospects
10 seat tables at premium events
Publication
• Branding on questionnaires and promotional material
• Branding on Title page
• Branding on Awards pages
• Branding on report back in Marketing Mix
• Right to nominate case studies
• Right to nominate expert opinions
• Extra copies – one to one distribution

Workshop Topics
Consent Marketing – Feb ‘07 rewards systems; sales force metrics; cross
ROI and metrics; best practice case studies; leading and up selling; proposals and presentations;
edge technologies. key prospecting.

Online and Mobile Marketing Summit Sales Promotion – June ‘07

– March ‘07
The evolving content model; engaging youth
audiences; social networking; mobile marketing;
advertising evolution.
Sales Management – April ’07
Key account management; sales force structuring;
Ten hot promotions; in store; sales promotion
metrics; competitions and prizes; technology
innovation; experiential marketing.
CRM Masterclass – June ‘07
Case studies; metrics; data profiling; reducing churn;
optimising the Internet.

Contact: Terry Murphy terrym@systems.co.za or 011 234 7008


Speaking financially
When I moved from client to agency in
the early 90’s I was really surprised at how an
agency would apportion the communication
budget. For example, if it was R20 million, the
business director from the above-the-line
agency would ‘take’ R19 million and the rats
and mice agencies (including direct and below-
the-line), were left to fight over the R1 million.
Has anything changed? Not much, except
that clients are now more to blame than their
agencies are. It appears that prior to allocat-
ing a budget, the client decides that he is
spending Rxxx in various media channels. He
then apportions some money to web devel-
opment and one-to-one communications,
possibly splitting the budget even further into
experiential marketing and promotions.
The flaw here is quite obvious – how do
you know what percentage split to allocate
before all the different parts of the mix have
submitted a strategy? Most clients have
acquired the understanding that there is more
to life than a TV advert but they still don’t
seem to understand that ‘the other stuff’
requires money if you are going to do it well.
I know that postage is expensive and I am
often asked, ‘how do I know that my mail will
reach the recipient?’ How do you know that
someone watching TV will see your ad? The
affordability of mailing is always an issue but
if you are going to invest in the R2 postage
cost per envelope, at least insert something
more than a letter and a DL brochure. If
clients were to consider the wastage factor of
mailing higher quantities rather than mailing
relevant, highly targeted and personalised
packs to a smaller database, they would
achieve a higher return on investment. This
would provide the opportunity to generate
more budget for the next campaign.
The beauty of what we do in CRM (using
all channels) is that most of the time we can
measure the efficacy of a campaign and show
the client the return on communications
investment (ROCI). With this information in
hand, the client can then accurately assess it
and roll out to similar databases, in this way
mirroring highly successful campaigns. By
using channels such as the Internet, e-mail
and mobile marketing, an even more compre-
hensive and accurate report can be obtained
EXPERT OPINION by nici stathacopoulos
for the client. The challenge therefore is to
decide exactly what the objective of any com-
munications campaign is from a strategic per-
spective. If it’s brand building, agree as a
team on the typical channels that will allow
for this to happen – ie go ahead and make a
‘Cecil B. de Mille’ style advert (a great example
is the Virgin Atlantic Upper Class Suite advert,
which did a superb job of building the
brand). If the objective is to increase the num-
ber of customers that you have, choose a
channel and message that fits the objective:
mail your dormant database and activate
them; e-mail your current loyal customers and
get them to refer a friend etc.
Integrated marketing campaigns are, of
course, the optimum. However, one needs to
be scientific and clever about allocating a
budget within this framework since budgets
are increasingly becoming limited and
capped. Use the available money wisely.
It’s also important to realise that apportion-
I know that postage is ing budgets does not only include the
communications mix split. When it comes to
expensive and I am CRM, very often the technological support of
often asked, ‘how do I a campaign or the building of a database will
influence what is available for communica-
know that my mail will tions purposes. Spending R2 million on the
reach the recipient?’ building of a database or R1 million on the
back-engine of a website while having little
How do you know that money to communicate with the base, does-
n’t serve a holistic purpose either. There needs
someone watching TV
to be a balance – and that’s where a team
will see your ad? effort comes into play.
Too often I hear ‘my budget’ when in fact
it should be ‘OUR budget.’ Collectively agree
on the job in hand in order to meet the
stated objectives. My colleagues and I in
the direct marketing industry are passionate
about our discipline and the various
opportunities that we are offered. Given the
information above, we recommend that
before you decide on ‘10 per cent’ for direct
marketing, discuss it and see what spend is
actually required to achieve the results and
meet the objectives. g
Nici Stathacopoulos
CEO of proximity#ttp
(011) 447 7093
nici@proximityttp.co.za
Vol 25 No. 1/2 I MarketingMix 3 3
by fulvia becatti CINEMA
T h ebigger
bigger picture
In the US and particularly in the UK the
film industry is feeling the pinch as cinema
attendance continues to drop. Why are
attendance rates declining and more
importantly, will our local cinema industry
suffer the same fate?
While the US box office broke the US$9
billion dollar barrier back in 2002 for the first
time, revenues have decreased since then,
albeit slowly. In 2005 US box office revenues
were down to $8.99 billion. In the mean-
while US cinema admissions dropped from a
high of 1.64 billion in 2002 to 1.40 billion in
2005 – the lowest level since 1997.
Australian box office figures also show a drop
from US$668.2 million in 2004 to US$623.5
million in 2005 (according to figures pub-
lished on the Australian Film Commission’s
website). “Admissions in the UK dropped to
165 million in 2005, down from 172 million
in 2004,” says Katharine Wright, research
director, Dodona Research UK (specialising in
research for the cinema industry).
Global box office trends are much the
same. In 2004 global box office figures stood
at an all-time high of $25.23 billion, while in
2005 this figure went down to $23 billion (all
figures quoted from the Motion Picture
Association of America, MPAA, research
reports – unless otherwise stated).
3 4 MarketingMix I Vol 25 No. 1/2
What lies behind the box office slump? In
an acronym, DVD. The price of state-of-the-
art home theatre systems is dropping and the
home theatre experience is becoming accessi-
ble to an ever-increasing number of film fans.
While this may be one of the most significant
factors, it is by no means the only one.
Added to this is the fact that ticket prices are
rising (the MPAA reports that US ticket prices
averaged $6.41 in 2005; up more than three
per cent from the 2004 price of $6.21) and
there are a greater number of leisure activity
options available. New technology is also
making it easier to access films via the
Internet for ‘home comfort’ consumption and
since the youth are the primary adopters of
this technology, it threatens to steal away
cinema’s future market. Throw in the
increasing trend towards ad avoidance, as
well as increased competition from studios
that are capitalising on innovative film release
and distribution models – and the picture
looks bleak for cinema (or at least for US, UK
and Australian cinema). Locally things look a
little rosier. Natasha Martinaglia, sales strate-
gist, CineMARK, maintains that local cinema
attendance is growing. Compare local figures
for October 2005 and October 2006 and you
will notice that attendance has increased by
five per cent. The year on year increase is sub-
stantial. Between 2002 and 2003 attendance
increased by 4.5 per cent, going from 24 619
432 to 25 719 608. This jumped by another
1.8 per cent to 26 173 243 in 2004 and then
increased by a further 5.5 per cent to 27 623
373 in 2005. According to Ster-Kinekor CEO,
Fiaz Mahomed, revenues increased in 2006
over 2005 and Nu Metro cinemas saw more
than eight million moviegoers moving
through its doors between 2005 and 2006.
2006 Australian ticket sales amounted to
$866.6m, representing a 6% increase on
2005. “Cinema attendances are largely affected
by two things – content and accessibility. In
this country, cinema has in some instances
been made more accessible through competi-
tive pricing and by virtue of geography (cine-
mas have recently opened in areas like
Worcester and Lenasia),” says Marisa Torrani,
director, Cinevation.
The developed markets are more vulnera-
ble to the impact of such factors as the
increase in DVD consumption, while cinema
industries in the developing markets are
enjoying growth. South Africa is unique,
mirroring the trends in both developed and
developing markets. Our emerging markets
and growing middle class are just beginning
to enjoy the movie-going experience.
Ster-Kinekor is opening a new eight cinema

complex in Soweto’s Maponya Mall later this
year to capitalise on this development, while
CineMARK’s mobile movie unit, CineMOBILE
(launched July 2006), takes the movies to the
lower income markets of our rural areas. The
screenings are advertised for a few days prior
to the event (creating opportunities for
advertisers and sponsors to get involved) and
admission is free. “This allows us to market
not only brands and movies but the movie-
going experience itself. Up to 3 600 people
per week attend the screenings of movies,
with action and comedic themes that include
Pocahontas, Liberty Stands Still, Wake of
Death and Thicker than Water,” says
CineMARK MD, Elmarie Pretorius.
In the meanwhile the upper LSM markets
are becoming more discerning, given that
they have more choices in terms of
entertainment options as well as greater time
constraints – a response to a lack of relevant
product and a non-differentiated movie-
going experience. “We are experiencing a
slowdown in the traditional LSM 9 and
10 mainly white consumer market. However,
as in other developing countries, we are
fortunate to have a largely untapped middle
income market. Hence the launch of Ster-
Kinekor’s Junction strategy, where the latest
movies are available at just R16,” says
Mahomed. In 2001, the middle income
sector represented just two per cent of overall
cinema attendance. In 2006 that figure
increased to an average of 37 per cent,
thanks to the development of affordable
cinema circuits. The thousands of DVD titles
that are available and the steadily decreasing
cost of DVD players are easily cinema’s
greatest threat. Locally 31 per cent of the
population owns (or has access to) a DVD
player (up from just 19 per cent in 2005),
according to AMPS 2006. It is therefore not
surprising that 15 per cent of a 2005 Nielsen
study’s respondents indicated that they prefer
to watch films on DVD; nor is it surprising
that companies such as the USA’s Netflix (an
online DVD rental company) are enjoying
ballooning profits. “I do think that some
cinemagoers are making a conscious decision
of whether they should go and see a film at
the cinema or wait for it on DVD,” says
Wright. However Pretorius argues that
consumers will not stop going to the movies
just because home theatres and DVDs are
accessible. “These are the same challenges
that other media and entertaiment indusrties
have experienced. While you might have the
large, flat screen TV and the surround sound
home theatre system, you will still choose to
go and experience movies,” she says.
“The lure of cinema will be around for a
number of years but we will have to
constantly evolve how it is experienced,” says
Mahomed – and therein lies the rub. Digital
technology presents an innovation that
guarantees optimum picture clarity and
therefore a better film experience. Ster-
Kinekor commissioned a three-month trial of
the country’s first 2K DCI (Digital Cinema
Initiative), which launched in December 2006.
CINEMA
They also have a number of digital projectors
that are utilised for advertising, local content
and film festivals. Nu Metro (which has 1.6K
digital screen projectors in 32 screens nationwide)
is also capitalising on new digital technology.
The company has also acquired a new 2K
digital projector and server which was
unveiled in Montecasino’s Il Grande theatre
in December last year.
“Digital cinema will eventually replace the
current 35mm format but will not necessarily
increase attendances. However the technology
does for example, bring the opportunity of
3D and whilst content is limited, it offers the
potential to increase attendances,” says
Mahomed. Digital technology will also enable
local film makers to show their work locally
without having to produce the expensive
35mm prints. It will cut down on piracy and
allow more cinemas to screen the same film
at the same time. “Digital projectors also
offer alternative revenue streams for
exhibitors, such as live concerts, sporting
events, etc. We now have the ability to utilise
our cinemas for alternative purposes in
downtime,” says Mark Harris, Nu Metro
national product manager. He believes that
digital cinema will create new opportunities
for the production of films that will be
relevant to targeting smaller niche communities
– something Hollywood doesn’t always do
(films produced in Sotho or Tswana, for
example). “Where digital film does have a
role to play is in making some content more
accessible to cinema audiences. (We have just
Vol 25 No. 1/2 I MarketingMix 3 5
 CINEMA
witnessed this with Faith Like Potatoes, which
grossed over R2 million in its first four
weeks),” says Torrani.
This bodes well for our local film industry.
“Investors remain cautious as the risks are
high but with rebates from the dti and with
the IDC, SABC and NFVF investing in movies,
it is possible to make films that are commer-
cially viable,” says Mahomed.
Currently Nu Metro’s 2K system allows the
cinema to alternate between 35 mm format
and digital format (to allow for the screening
of ad material which is still in the 35 mm format).
However, are local advertisers prepared for
the digital roll-out? According to Harris, there
are a number of advertisers that are already
working on a digital format, following the
roll out of the 1.6K digital technology in
Who goes to the cinema?
34 per cent of movie-goers are between
the ages of 16 and 34 years. Almost 26
per cent of moviegoers fall into LSM 6
and 62 per cent of moviegoers are black.
The majority of moviegoers are single or
live with their partners (TGI SA 2005/06).
2006. “There is a cost saving for advertisers
because there is none of the huge expense
that is involved in having to manufacture
35mm print copies. The major Hollywood
studios are still looking at a way to supply
theatrical trailers in a digital format. Until
they have resolved this we will continue to
show these trailers in the traditional 35mm
format,” says Harris.
In the US and the UK where new media
and the home theatre threaten cinema, the
focus is on creating a movie experience that is
unique. National Amusements Incorporated
(a US based chain of cinemas which also
acquired Viacom and CBS) now offers
audiences the ‘Cinema de lux’ experience.
Their theatres are decked out with exclusive
restaurants, cocktail lounges and reclining
seats. Moviegoers can order meals and
refreshments from their movie seats via
wireless devices. NAI president, Shari
Redstone told Variety.com (13 November
3 6 MarketingMix I Vol 25 No. 1/2
Top 10 films 2006
Box office
1. Ice Age 2
2. Pirates of the Caribbean 2: Dead Man’s Chest
3. Da Vinci Code
4. Over the Hedge
5. Big Momma’s House 2
6. Cars
7. Superman Returns
8. Mission Impossible 3
9. Pink Panther
10. X Men 3: Last Stand
2006) that she believes that this is the only
way to get movie fans away from their
gadgets and back into the movie theatre. In
the UK, the Ipswich Film Theatre has
launched special monthly screenings exclusively
for parents with children under the age of 18
months to give these adults the opportunity
to catch the latest film releases, with their
toddlers in tow. “There are two distinct
groups that cinemas now need to cater for –
the family audience and the older audience.
This faces many cinema exhibitors with a
challenge,” says Jackie Colvin, head of
research, Pearl & Dean (a UK firm specialising
in cinema advertising and research).
Locally, Ster-Kinekor has a few initiatives up
its sleeve. “May will see the launch of the
new look Cinema Nouveau screened by
Jameson,” says Mahomed. Torrani maintains
that our local cinema industry works to high
standards, comparable to those of foreign
markets. “We have a number of beautifully
kitted out megaplexes such as Montecasino,
Menlyn, Canal Walk and Sun Coast.
Technically our picture and sound quality
complies with international standards and
our furnishings and systems are constantly
being upgraded and renewed,” she says.
What else should we expect from cinema?
“Towards the end of the decade as digital
cinema really starts to make an impact, we
are expecting to see some new business
models and more flexibility in the offering to
customers,” says Wright. US based 2929
Entertainment, founded by Todd Wagner
and Mark Cuban (who also founded Internet
R21 901 556
R15 470 751
R12 395 260
R11 564 842
R11 426 987
R10 977 816
R10 836 330
R10 631 097
R10 367 123
R9 986 565
Source: CineMARK
broadcasting company Broadcast.com
together), is a ‘vertically integrated’ media
and entertainment company which includes
movie production and distribution services,
home video distribution services, art-house
theatre chains and High Definition Cable TV
services. 2929 Entertainment’s business
model is challenging traditional film release
models. The company releases films simulta-
neously across theatrical, TV and home video
platforms to give the individual greater
choice. Mahomed believes that it may be too
soon to tell if this model works. “Remember,
there have always been movies developed
only for TV and DVD. Whether movies will
be successful when released on all
platforms simultaneously remains to be seen.
In any case, these decisions are driven by the
content owners, so we have the luxury of
waiting to see what happens overseas,”
says Mahomed.
With the growing global focus on mer-
chandising and product placement in feature
films, the question of whether there are
opportunities for local advertisers is relevant.
“There are risks. One of them is that
traditionally only a small number of locally
produced features perform very well at the
box office, so a client’s exposure can be
limited. In such a case, one has to ask
whether it isn’t preferable to use the money
on a traditional campaign? There are no
guarantees as to how a movie is going to
perform,” says Torrani. She also stresses the
need for a natural fit between the
product/brand and film. g
 by fulvia becatti CUSTOM PUBLISHING
Customisation
Customisation
Customisation
Picture your favourite magazine. It’s glossy
and colourful; it’s interesting and it engages
you in a powerful way. Now imagine that you
have total control over this magazine. You can
deliver the information that you want your
audience to read in a way that they value and
enjoy. You have created your own medium.
This is custom publishing – the creation of
editorial content that marries a brand’s mar-
keting ambitions with the needs and interests
of its target audience. It has a marked influ-
ence on their attitudes and behaviour and it
enhances the client’s bottom line through the
improved relationship between reader and client.
It’s difficult to ignore the latest AMPS 2006
reports, which indicate that the penetration of
3 8 MarketingMix I Vol 25 No. 1/2
local custom titles has grown. Club magazines
have moved from a 10 per cent penetration
in 2005 to 17 per cent in 2006. The Edgars
Club Magazine has more than doubled its
penetration, increasing from 1.6 per cent in
2005 to 3.7 per cent in 2006. Its circulation
stands at over 900 000, making it the third
largest magazine in the country, according to
Irna van Zyl, editorial director, New Media
Publishing. MultiChoice’s Dish/Skottel has a
total circulation of over 1.3 million, making it
the largest monthly magazine in the country.
The Jet Club magazine has grown from a 7
per cent penetration in 2005 to 8.4 per cent
in 2006. Clicks Club Card magazine has
entered the market with a 3.3 per cent
 CUSTOM PUBLISHING

“The huge variable is the question of what happens

with online media… While there is definitely a greater
value placed on content, there is also more pressure
on publishers to find advertising to support the
content. This is encouraging for those who are doing
things right.” – Mark Beare, director, The
Publishing Partnership

penetration and Vodaworld magazine has
expanded its penetration from 2.6 per cent in
2005 to 2.9 in 2006. The figures for Discovery
magazine have increased from 2 per cent in
2005 to 2.3 per cent in 2006. Research by
New Media Publishing in 2006 has estimated
the value of the customer publishing industry
to be in excess of R850 million. Clearly custom
publications are a force to be reckoned with.
Consider that more and more brands are
choosing to launch new products with (or
through) custom titles, such as Mango
Airlines’ custom inflight magazine, Mango
Juice. “Custom publications are highly
effective vehicles through which organisations
can engage with an audience that they
are not normally able to reach through
mainstream distribution channels such as
newsstands,” says Stephen Horszowski, MD,
Succeed magazine.
Content is sophisticated and it targets a
market that is known to the magazine. “This
market is also much more likely to read these
articles because they have a bearing on peo-
ples’ daily lives. The audience is captive in the
sense that people have a vested interest in the
magazine since it is part and parcel of a serv-
ice they have bought – one that they pay for
on an ongoing basis,” says Marieza van Zyl, De
Kat. According to Irna van Zyl, since Edgars
Club Magazine revamped its content and
became more focused on shopping, fashion,

Vol 25 No. 1/2 I MarketingMix 3 9

CUSTOM PUBLISHING
New Media Publishing is hosting the
country’s first ever Customer
Publishing Seminar at the Cape Town
International Convention Centre on 15
February 2007. The seminar will fea-
ture four international keynote speak-
ers: Andrew Hirsch, chief executive of
John Brown, a UK customer publishing
agency – clients include Virgin Atlantic
and Volkswagen; Jan Loovens, MD,
Media Partners, the largest relation-
ship communication agency in the
Netherlands – clients include KLM and
Postbank; Julia Hutchison, director,
Association of Publishing Agencies,
UK; Mark Jones, editorial director,
Cedar Communications, UK – clients
include British Airways and Tesco.
For more information, visit
www.newmediapub.co.za
4 0 MarketingMix I Vol 25 No. 1/2
Top ten custom titles (ranked by circulation figures)
Title Total circulation (ABC July- September 2006)
Dish & Skottel 1 374 746
Edgars Club Magazine 836 707
Foschini retail group club mag 824 168
Lewis Stores Club mag 501 850
Metrobeat 386 000
Magic 207 983
Dish Africa 167 512
The Teacher 96 721
Sawubona 95 150
M 64 105
and beauty advice etc, Edgars has seen an
increase in calls to its call centre, a boost in
sales – especially on items promoted in the
magazine – as well as increased loyalty from
club members who receive the magazine.
“One of the most under-estimated truths in
marketing and advertising is that it is just as
(if not more) important to communicate with
and reinforce your brand with your current
customers and clients, as it is to try to attract
new ones,” says Anthony Stroebel, group
marketing director, the Pam Golding Property
Group. He insists that custom titles are an
effective vehicle to that end.
Horszowski attributes the growth of cus-
tom publications to the increasing number of
companies who have realised just how
effective this method of marketing is.
“Another factor is that as the field has expect greater competition, which means that
become more and more competitive, the individual titles will need to distinguish them-
quality of these publications has improved. selves. “There are two fundamental criteria.
Consequently they have begun to attract the Firstly, you must ask yourself whether the
advertising support they deserve,” he says. For magazine you are producing is of a standard
Mark Beare, director, The Publishing that is comparable to a newsstand title? This
Partnership, the resurgence of custom titles is is relatively measurable. Secondly, you need to
related to the new focus on content. “The inquire whether you are working for the
focus on content supports a range of brand that commissioned you? Are you able
consumer titles too, which makes the market to measure this? The simplest way to measure
much more competitive,” he says. He also this is to ask: are you getting ads?” says
points to our strengthening economy, which Beare. Research is key to both criteria, as is
bolsters marketing budgets. This in turn customer feedback. “We find that people
allows for more creative marketing budgets. with a vested interest are more likely to give
“However, with the interest rate hikes and a you feedback,” says Marieza van Zyl.
slowing economy there will be rising pressure As more consumer magazine publishers try
on small titles and small companies.” their hand at custom publishing in an attempt
At present, there are a handful of major to grab a piece of the pie, Naomi Herselman,
players that dominate the custom publishing executive director, Corporate Communications
industry. These include The Publishing & Marketing and Events, New Media
Partnership, Essential Publishing, New Media Publishing, raises a very important question
Publishing and New Highway Publishing. around the sustainability of these endeavours.
With several publishers expanding their port- She insists that crossing over from consumer
folios to include custom publishing we can publishing to custom publishing is not as

straightforward as one might imagine. It is a
marketing discipline that relies on the combi-
nation of publishing skills, agency structure
and the client brief. “With custom magazines,
you have to make sure that the marketing
message is understood and that the reader
reads the magazine. There is also the chal-
lenge of working with a client (who doesn’t
always understand publishing) and the client’s
brief,” says Herselman. There simply is no ‘win-
ning formula’ that can easily be applied to
guarantee the success of a custom title, given
the variety of magazine models that exist and
the paucity of research. “At this stage, there is
not a lot of research available. We tend to look
at other custom publications in the same field
and to try and improve on them,” says
Marieza van Zyl.
Providing reader value and having a keen
understanding of the client and their needs is
a step in the right direction. It is also impor-
tant to be on the lookout for new opportuni-
ties for the client, such as a quarterly supple-
CUSTOM PUBLISHING
ment publication, for example. “It’s about cre-
ating the best possible magazine for both the
client and the audience,” says Irna van Zyl. It’s
also about proving that there is sufficient ROI.
“As publishers and their clients do more and
more research there is more information available
on the readers of these magazines, therefore the
scope to tailor content to them becomes much
greater.” – Anthony Stroebel, Pam Golding
Property Group.
In the UK several experienced consumer
magazine publishers (who have tried to cross
over into custom publishing) have learned this
the hard way. According to a Media Week
online report (7 November 2006), Conde
Naste’s UK division lost several contracts in
2006 (including the Harrods contract). The
CUSTOM PUBLISHING
report indicates that while consumer titles can
easily be reinvented when newsstand sales
start to slump, customer titles are tied to the
satisfaction of the client. The average Jane is
not too bothered if some of the content of
her glossy magazine is not targeted at her.
She will however cancel her subscription to
her club magazine if its content is not totally
relevant to her.
As yet only a few custom titles are moni-
tored by the ABC; marketers are encouraged
to insist on seeing proof of claimed print and
distribution. “Unfortunately this type of high-
growth market place does increase the risk to
clients,” says Horszowski. As far as regulations
and industry standards are concerned, the
Magazine Publishers Association (MPASA) is in
control at a macro level. At a micro level the
industry is self-regulated. “It has matured over
several years – the frames of reference are
quite clear and the industry is settled. There is
also an awareness of what types of publishers
are in the industry. It’s clear who’s who and
what differences exist between their respec-
tive offers,” says Beare. Stroebel explains that
previously custom publishers focused on hard-
sell advertising over the phone. “The industry
has now been led by some excellent publish-
ers into an era when nothing less than excel-
lent content is acceptable,” he says.
All this makes custom titles the medium of
choice for many a marketer. As Stroebel puts
it: “The magazine allows us to reinforce the
premium positioning of our brand and to give
something of genuine value to clients, which
subtly gets our brand message across.” The
Pam Golding Property Group’s Icon magazine
is filled with lifestyle related content that has a
focus on the home. “This allows the reader to
identify with a certain sense of style and good
taste as well as a level of excellence, which
underpins who we are as a company,”
says Stroebel.
Generally the allocation of revenues is
decided upfront between the publisher and
the client. A sales team will attract the adver-
tising that off-sets costs and profits can be
pumped back into the custom title to further
tailor it to the needs of its target readers. The
risks include accepting advertising from com-
petitors or accepting creative ad material that
does not match the personality of the publi-
cation. “We ensure that the magazines do
not become glorified sales brochures by mak-
ing certain that every issue has a substantial
amount of editorial. If the reader is inundated
4 2 MarketingMix I Vol 25 No. 1/2
with product and ads, they’re less likely to
read the magazine. This decreases its effec-
tiveness over time, which will have a knock-on
effect on your ad revenue and marketing
objectives,” says Megan Scharffenorth, pub-
lisher, New Highway Publisher.
What does the future of custom publishing
hold? “In future we will see print based medi-
ums becoming more integrated with other
modern forms of media, rather than being
replaced,” says Horszowski. Publishers will
need to be able to repackage information and
material for use across several platforms in
order to meet the needs of their clients. “We
see the consumption of information increas-
ing on all levels – the medium determines
how it will be used. This means that a maga-
zine will be used differently from an online
newsletter or website,” says Jaco Scholtz,
publisher, Eat In and Taste. “We also see great
possibilities with the device that allows
consumers to access the Internet via their TV,”
says Scharffenorth.
However, analysts are confident that the
print medium will remain strong, precisely
because it is unique and the most appropriate
medium for the purpose of custom publish-
ing. “As publishers and their clients do more
and more research there is more information
available on the readers of these magazines,
therefore the scope to tailor content to them
becomes much greater,” says Stroebel. He
also highlights the fact that marketers are
increasingly looking to talk to settled databas-
es and that custom titles will provide an
increasingly attractive forum.
Distribution models and strategic partner-
ships between advertisers or stakeholders and
publications will develop as well. “Multi-distri-
bution channels, such as those we use with
Pulse magazine (Musica’s title, also distributed
via Sportscene and Levis stores to increase its
footprint), are evolving. This is part of media
fragmentation. In order to attract advertising,
you need to be innovative… There is also a
demand for greater responsiveness from our
side,” says Beare. He raises questions around
the evolution of content and notes the
growth of online platforms such as MySpace
and YouTube. “The huge variable is the ques-
tion of what happens with online media…
While there is definitely a greater value placed
on content, there is also more pressure on
publishers to find advertising to support the
content. This is encouraging for those who
are doing things right,” he says. g
7 DAY [B]ITCH
DJ Fresh, radio presenter (The Fresh Drive,
4pm-7pm weekdays on 5FM), club DJ,
entrepreneur, Big Dawg Productions
07/01/07
Wake up in Durban on my boy DJ Tira’s couch at 8am in a panic,
thinking that I’ve missed my 10am flight back to Joburg. Quickly go
through the events of the previous night in my mind, just to make sure
that JACK did not take me down the wrong path. GRIN! I really appre-
ciate the mad love I always get in Durban. Cold ribs and pizza later, I’m
awake, just as hung-over DJ Tira gets up so that he can drop me off at
the airport. The drive consists of a postmortem of the previous night,
complaining about two hours of sleep and regretting that I’ve
promised to take my kids out today. Head to the lounge in the futile
hope that I’m not the only one in shorts and a vest. Get home, load
the family into the car and head over to Gold Reef City before I change
my mind. Just under R500 for all six of us. I feel scammed – no –
sodomised. My son and nephew are both under 1.2m tall so they
can only play at the kids section. I’m bored but hey, I chose to leave
bachelorhood. Just as I feared, my niece and my daughter are also
bored and insist we now move to the ‘proper’ rides.
10/01/07
Wake up at 6am for gym. Lie in bed for 30 mins wondering whether
to leave or to wake my peacefully sleeping wife so I can get my
conjugal rights. Gym wins just this once – but never again! Get back
just before 8am in time to take my son to school. Back home at
8.15am for a quick shower, then off to do an A/V for Spar. I was asked
to schedule an hour for it but was done in 30 mins. I guess I’m good –
ha ha ha! I head back home to finish off the prep for my radio show
so that I can e-mail it to my show producer, after which I’m off to my
office where I have an 11am meeting with DJ Euphonik. He needs
event and career management, so we come to an agreement and an
understanding. I don’t know why I’m doing this to myself as managing
talent is a headache – fragile egos are always involved. The meeting is
over, so at just after midday I’m off to pick up my son from school. He
insists on McDonalds. Back home I do manly household stuff. I arrive at
work at 2pm when the entire team meets to reconcile all the prep and
content for the day. Do my Drive show and as always, have the time of
my life. Back home, I eat and pass out on the sofa. Close to midnight
my wife asks if she should bring me a blanket.
11/01/07
Wake up to my usual 6am gym routine. I’m in Rosebank at 9am to do
a voice over for my album’s TV ad, after which I go to Neros to cut my
hair – bad experience as the machine that they usually use is broken.
Will I go back there again? I don’t know. Dash to Sandton City to pay
for my daughter’s clothes shopping. What is she wearing for three
grand? The price you pay for procreating! Off to work via my son’s
school and then home to pick up my laptop, which has become my
second wife. At work we debate whether or not to do a skit about the
4 4 MarketingMix I Vol 25 No. 1/2
Picture: 5FM
Vatican’s issue with the Dakar rally. What the hell – we go for it. Have
another awesome show despite attacks from Vatican followers. I’ll
explain to God when I get there.
12/01/07
Gym. School. Prep, then school again. Think I have an hour to nap and
then receive a call asking if I’ve forgotten the Street Journal interview at
the SABC. I arrive 15 minutes late but have an awesome interview
nevertheless. It’s a Friday, so we only meet at 3pm for prep issues and
to recap the week’s skits and produced bits. The Vatican bit gets us an
e-mail threat – guess we’ll deal with it accordingly. I get home at 8pm,
nap until 11pm, then go to Sudada for my gig. Play from 12am-2am
to a very receptive crowd. I love this job.
13/01/07
I’m due to drive to Botswana at 6am, so the next hour and a half is
spent negotiating with my team to leave. Get home at 4am and nap
until 6am. I’m on the road with the kids at 6.30am. When you are
tired and sleepless, it’s amazing how kids can keep you entertained
and focused. Three hours later, I drop the kids off with their gramps
and spend the entire day sorting out business, family issues and seeing
friends in between. Get back home at 7pm for a quick bath and bite to
eat, before heading out into the night to play at a party that the cops
eventually stop at about 1.30am.
14/01/07
Climb into bed at 3am, having requested a 6am wake-up call as I have
unfinished business to take care of. My son calls at 9am to ask when
we are leaving and we are on the road two hours later. I once again
appreciate the company of a 4-year-old because at this stage of the
game my body is wondering why I’m punishing it yet again. I buy a
quad bike on the way and we arrive home at around 3pm. In between
trying to get it working, I have lunch, pass out for a few minutes
before taking a shower and then head to the SABC for a shoot with
Corne and Twakkie. Back home at 9pm to nap until 12am before doing
my six year old Sunday Residence. Wake up at 6am. My schedule has
caught up with me and until it happens again – Yeeee Haa! g
 Consent Marketing Workshop
Adapting to Legislation– 27th Feb ’07
The Data Privacy Bill, the Consumer Protection Bill and the National Credit Act will profoundly influence direct marketing practices. The first big session will be led by South
Africa’s three foremost experts who will guide you and answer your questions. Then we move on to best practices dealing with implementation methodologies, lots of tips and
real customer experiences.
After lunch, we have picked three interesting topics to stimulate your thinking with the emphasis on Quick Wins.

Venue: Axiz Conference Room – Midrand, delegate fee R 2 250 plus VAT

Programme: Registration 7:30 for 8:00

Data Privacy Update: 8:00 to 8:45

Andy Quinan who heads up the DMA (Direct Marketing Association) task group preparing the submissions to government relating to the Consumer Protection Bill and the
Protection of Personal Information Bill will update you on the latest submissions, the current thinking of government and the likely resulting legislation. Andy is a practicing
direct marketer, so he will be able to focus on the issues critical to marketers.

Legal Guidance: 8:45 to 9:45

Brendan Hughes of Michalsons is one of SA’s foremost legal experts in the IT and privacy arena and he will advise you about the key legal points arising from the PPI Bill and how
they dovetail with the National Credit Act and he will refer to the Consumer Protection Bill. Key issues such as interpretation of consent and of confidentiality will be reviewed.

Good Governance: Best Practices – 9:45 to 10:30

Christiane Duval is preparing the DMA’s Code of Practice, which is designed to assist marketers to choose successful methodologies which conform to the intentions of
government legislation and which respect consumer concerns. Christiane will advise on the evolution “of disclosure of purpose” and consent strategies.

Coffee and Networking: 10:30 to 11.00

Ask the Experts: 11.00 to 11:30

A valuable opportunity to pose your questions about the impact of the legislation upon your marketing strategies and most importantly, really expert advice on the way forward.

Practical Steps to Enhancing Your Databases: 11:30 to 12:30

We all know that analytics and segmentation techniques properly applied will materially boost response. The inhibition is usually the state of the database. Candy Goodman of
Striata will lead a workshop highlighting practical steps and processes which you can implement on an incremental basis, allowing you to gain the additional response through
the database reform cycle. Candy will highlight successful list building techniques including clever calls for action.
A critical step is ensuring accuracy and standardisation of data capture and Candy will recommend specific approaches.

Lunch: 12:30 to 13:30

Telemarketing – Quick Wins and Pitfalls: 13:30 to 14:30

Is there a way of ensuring that we meet the high expectations of the campaign driver and optimise the Client/Contact Centre interaction. And remain within the bounds of legislation?
Roz Broome of e-Centric will talk about experiences and share practical tips put together from the many local and international campaigns run by her outsource contact centre.

Digital Print Personalisation: 14:30 to 15:00

To Millions, To Many, To One. It is the story of the adaptation of print and how personalisation can dramatically boost results. Christian Schwarze, Kodak’s Director for European
Major Account & Dealership Management, will demonstrate the versatility and show examples of very successful marketing promotions Lots of good ideas.

Loyalty Marketing: 15:00 to 15:45

Bruce Conradie of Razors Edge is SA’s research expert on what works and what does not work in Loyalty Marketing programmes. He will talk about techniques of how to
enhance Loyalty without a Loyalty programme and with a Loyalty programme and he will discuss the impact of legislation upon current methodologies.

Close and Networking

Delegate Fee: R 2 250 plus VAT

Bookings – Louise Wilsenach louisew@systems.co.za or 011 234 7008

AFRICAN MEDIA
Africa
The African Media Development
Initiative (AMDI) has published its
media survey of 17 African
countries. The research
examined developments in the
media over the last five years
and identified future action
for the sector.
It includes a report on each
of the 17 countries that were
surveyed as well as a Summary
Report. Each report is divided into three
sections: media sector developments;
challenges for future media development
activities; Case study: illustrating good
practice in media development.
General observations drawn from the
research include the absolute conclusion that
the media sector is definitely growing, despite
the difficulty of finding reliable data. With
regard to South Africa in particular, the report
issued the following comment: ‘Response to
requests for information was tardy in most
cases. Many people simply did not respond,
or did not send through the data they prom-
ised to send – despite the importance of the
project being explained and emphasised (and
any approach backed up with reminders and
follow ups).’
Across the continent radio dominates the
media scene and although state radio has a
monopoly, commercial radio is experiencing
significant growth. It’s not surprising that the
report found that TV is less widely accessible.
Internet penetration is very low and the growth
in mobile has been spectacular. Newspapers are
concentrated in urban areas. The report did not
look at outdoor or magazines.
Generally speaking journalists are not well
trained. They are also poorly paid and are
using old and unreliable equipment.
Governments tend to keep a tight rein on the
media and many countries have no proper
media laws and regulations in place. Twelve
out of the 17 countries surveyed have at least
one news monitoring agency, 11 countries
have private news agencies and all but two
have at least one state or state-controlled
news agency.
4 6 MarketingMix I Vol 25 No. 1/2
unmasked
Radio
According to the
report, radio emerged at
the top of the media list. The countries where
‘heavy’ listening takes place are: South Africa,
Tanzania, Ghana, Mozambique, Kenya, and
Uganda – with weekly reach figures of over
90 per cent.
TV
Overall the growth in TV is slow. This is
mainly due to market entry, equipment and
running costs; unreliable electricity supply; the
cost of owning a TV set and liberalisation. TV
ownership is very low (less than 10 per cent)
in countries such as Somalia, Ethiopia,
Uganda, Tanzania and DRC. Angola has the
highest TV ownership percentage, followed
by Mozambique and South Africa. However
huge growth is taking place in this area in
Ghana, Kenya, Sierra-Leone, Zimbabwe,
Zambia and Tanzania.
Newspapers
Newspapers that are published in the vernac-
ular are becoming increasingly popular across
the continent, although there is much room
for growth. Newspapers are urban-centric
and are targeted at people with high levels of
literacy. However, tabloid-style newspapers
are becoming increasingly popular and are
creating an audience that may never
previously have read a newspaper.
The flipside of this is a concern
about the content of these
newspapers.
High levels of newspaper read-
ership (33 per cent or more read
a newspaper once a week) are
found in Mozambique, South
Africa, Nigeria, Zambia and
Cameroon. Growing markets
are Botswana, South Africa,
Senegal, Kenya, Mozambique,
Cameroon and Ethiopia. Declining
markets include Zimbabwe, Nigeria
and DRC.
Internet
According to estimates, South Africa has
the largest number of Internet users on the
continent (5,1 million), with Nigeria coming
in just below this at five million. Growth has
been positive and many countries have
reported a huge percentage increase over the
last five years – DRC: 4 588 per cent; Nigeria:
6 150 per cent; Zimbabwe: 1 900 per cent;
Senegal: 1 250 per cent. Only Zimbabwe and
Kenya have reached over one million users.
Mobile
Mobile telephone subscribers have seen
spectacular growth. South Africa has almost
34 million; Nigeria has over 18.5 million and
Sierra Leone has the lowest number at 113
214. Nigeria’s growth has been phenomenal
(they had only 30 000 subscribers just five
years ago). Kenya has over 4.6 million
subscribers; Ghana 2.8 million; DRC 2.7
million and Cameroon 2.2 million.
Ad agencies
In most countries there are a reasonable
number of ad agencies, the exceptions being
DRC, Somalia and Botswana.
For more information and copies of the
Summary Report and country reports visit
www.bbcworldservicetrust.org. g
POPAI

POPAI
The local retail industry is about to get
a huge boost with the launch of POPAI, the
POPAI SA Structure:
Global Association for Marketing At-Retail,
which was founded in 1936. Today POPAI The basic organisational structure of POPAI SA:
boasts over 1 700 member companies,
including the likes of Coca-Cola, Kellogg’s, POPAI SA Board:
McDonalds, Microsoft and Wal-Mart, Chairman
amongst others.
POPAI is active globally across 45 countries Vice-chairman
and is setting up an office locally under the
Treasurer
umbrella of the ECR (Efficient Consumer
Response) division of the Consumer Goods Seven other founder members
Council of South Africa (CGCSA). The organi-
A CGCSA Board member, as elected by POPAI
sation will function as an independent body
and will comply with POPAI International’s Country Manager
requirements and standards. “POPAI globally
requests that any office of POPAI be managed Administration support
as an independent concern, as all revenue
Function-specific Committees
generated must be used for the exclusive
benefit of POPAI members and activities Research
relating directly to POPAI initiatives,” says
Education and events
Russell Cagnacci, development manager, ECR.
POPAI SA will serve manufacturers, brands, PR and communications
retailers, producers, ad agencies, logistics
service providers, in-store promoters and mar- Ad hoc project teams (will implement identified programmes and events)
keters, retail research houses, industry-related
shopfitters and Marketing At-Retail media.
POPAI SA’s objectives include the establish- from the establishment of POPAI SA include a industry as a whole. It will also play an impor-
ment and promotion of Marketing At-Retail connection to the global network and access tant role in research and will become the
as an effective medium in the strategic mar- to global research and relevant industry infor- voice for the Marketing At-Retail industry.
keting mix. It will also encourage meaningful mation. POPAI SA will raise industry stan- Over the next two years, POPAI SA will pro-
collaboration between industry role players dards, establish and implement best practice mote its establishment locally and will set
and provide an education platform for the and play a significant role in education and about offering training and workshops, as
Marketing At-Retail medium. certification. Through its affiliation with the well as ensuring the availability of existing rel-
The benefits that the industry will derive CGCSA, it will drive collaboration with the evant research.
Currently the POPAI SA steering committee
is made up of Russell Cagnacci (ECR), Paul
What is Marketing At-Retail? Miller (Barrows) and Yatish Mehta (UPG).
Marketing At-Retail is defined by POPAI as ‘all activity that occurs approaching, within, At this stage, the management, organisational
and exiting retail locations’ (shelf displays, digital in-store signage, etc). It considers structure, objectives and goals, business plan,
that 74 per cent of consumers’ purchasing decisions are made in-store. It is the only founder programme and membership
mass medium that is executed at the critical point where products, consumers and the systems have not yet been confirmed. At
money required to purchase all meet at the same time. This medium is both flexible present the steering committee is
and sophisticated and it enhances the shopping experience (through an improved evaluating the perceived benefits of POPAI SA
overall store image, better managed store traffic and bolstered merchandising plans). relative to industry requirements and is
negotiating POPAI SA’s establishment with
For more information, visit www.popai.com local industry members. g

4 8 MarketingMix I Vol 25 No. 1/2


Brand relevance – the ultimate goal
What would we do without brands? Their
absence would certainly change the way we
make our purchasing decisions. It is fairly
straightforward for most people to walk into
a store and to choose products such as tooth-
paste, cellphones and clothing based on the
value they attach to a brand. People select
something off a shelf full of similar products
because they recognise the label and the vari-
ety of perceptions associated with it: ‘best
value for money,’ ‘scientifically proven to
work’ or ‘highest quality.’
Branding undeniably makes a buying deci-
sion easier. In a market where features and
advantages are interchangeable, a solid brand
creates a set of expectations around a prod-
uct without a consumer knowing the exact
specs of the item being purchased. The con-
cept of a brand has become an entity on its
own. South Africans (although not as devel-
oped as our international counterparts), are
increasingly taking the concept of a brand
and all its combined features more seriously.
There has been a growing shift in the local
market to create brands that can serve as real
alternatives to global brands. More importantly
there has been a greater need for the item to
be relevant to the South African market.
Where this is particularly noticeable is in
the IT/telecommunications sector. South
Africa often relies on our international
counterparts for these brands as we do
not have a large variety of locally developed
products in this area. The key aspect for
consumers in this regard is relevance and
individuals tend to choose brands that are
applicable to the local market.
International brands are starting to draw
on their global expertise and are developing a
range of territory-specific solutions and services
for the South African market. This does not
necessarily mean that these organisations
completely change their product make-up
according to the various markets that they
serve. It may only be a case of excluding
products in some and adding different
solutions in others: developing a new solution
by using an international product as a basis or
slightly altering product features.
EXPERT OPINION by nomalanga nkosi
However, this does not imply that this
process is simple and easy to execute. Taking
an international brand and translating it for a
local market can be complex. As this is an
emerging country our needs and requirements
are different when compared to developed
economies. International brands must take
care to recognise the factors that make up the
South African landscape and map the brand
and its principles accordingly. Some of the
most important factors include: government
legislations, especially within the telecommuni-
cations sector; marketing departments not
assigning the same marketing budget to SA as
the ‘bigger’ countries; correlating international
and local brand marketing activities.
Possibly the most important communica-
tion tool for an organisation’s brand is its
website. Today individuals have less time to
explore the alternatives that are available to
them and find browsing a website more
convenient. It is therefore crucial that an inter-
national organisation implements a website
strategy, ensuring that the brand is positioned
and communicated in an effective way to the
various markets that it caters to. A website
should be used as a basis for a global brand
but provides the opportunity to link through
to various other countries operating within
the same brand. As each country differs, so
should the information on the site: the range
of products that are offered, services, general
contact details and so forth.
Companies should ask themselves the fol-
lowing questions:
 What are you communicating and why?
 Who is your target audience?
 What qualities of the brand are most
important to your target audience?
 What is the single most important
message the website visitor needs to walk
away with?
 What strategy needs to be implemented to
delve into the target market’s insights?
An organisation’s website can be seen as
the brand’s promise to deliver, since this tool
can ultimately position the brand to a larger
portion of the market. Some effective website
tools organisations should be aware of to
ensure brand enhancement: user friendliness,
layout, navigation, clutter, keep Flash to a
minimum, search engine optimisation, length
of URL, how often the site is updated, how
long it takes to load and contact links on
every page with several options available.
The benefits of a strong brand are
immense: it influences buying decisions, cre-
ates trust and most importantly, indicates that
an organisation wants to build customer loy-
alty and not merely sell a product. Managing
the brand effectively ensures that individuals
not only recognise the brand but also under-
stand the features that make it unique.
It is inevitable that global brands are going
to continue to enter the South African market
for many decades to come. However the
question remains: are these organisations
equipped with the correct tools and strategies
to ensure that they can be successfully inte-
grated into the local market? Today it has
become a case of relevance – it no longer
matters what weight your brand holds in an
overseas market. It’s a question of how you
draw on your global expertise to powerfully
translate the brand for the South African
landscape. g
Nomalanga Nkosi
executive, Marketing & Social
Responsibilty
Verizon Business SA
(011) 235 6655
nomalanga.nkosi@za.verizonbusiness.com
Vol 25 No. 1/2 I MarketingMix 4 9
 by michelle sturman CELEBRITY MARKETING

Do you know your Ryk from your Nike and Colin Moss from Hugo Boss?

Celebrity branding and endorsements
worldwide add up to hundreds of billions.
Some celebrity endorsements have brands
soaring in popularity while others fail dismally.
Other brands benefit simply because celebrities
are seen using, wearing, eating, visiting or
drinking them. This is then captured by the
media and broadcast around the world. Ugg
footwear is a good example: a few celebrities
were photographed wearing them and they
became the ‘next big thing’ in shoes. Most fre-
quently however, celebrities are paid a vast
amount of money to publicly endorse a prod-
uct when they become spokespersons for a
brand. This is especially true with regard to
certain sports brands which initiated this trend
years ago (think Michael Jordan and Nike).
Celebrity endorsements can however, back-
fire (think Kobe Bryant and Kate Moss). When
matching a celebrity to a brand it is critical
that behaviour, performance (especially sports)
and reputation are in sync. Choosing the right
person for the right brand is vital. Trying to
make a campaign ‘fit’ a mismatched celebrity
and brand won’t work. It is also vital that the
celebrity who is endorsing the product does-
n’t have a stronger brand than the product
itself. However, get the celebrity and the
brand that they’re promoting right and there
is often no more effective way to send a
brand into the stratosphere. Never underesti-
mate their pulling power and the effect that
they can have on an audience – or their ability
to break through the clutter. “Accepting a
booking for something that is not suited to a
particular style or personality is a disservice to
both the celebrity and the client. In building a
brand or profile, we have to ensure that any
public platform is in line with the ultimate
goal,” says Ronnie Whitaker, Quirky House, a
local talent agent.
Locally however, we seem to have missed
all of this. Brands that make use of local
celebrities/personalities to endorse their prod-
ucts and appear in ad campaigns are a recent
phenomenon. Ryk Neethling seems to be the
most popular brand endorser. He has been
seen in the Lays, Tag Heuer and (more recently)
Jenna Clifford campaigns. Others include:
Schalk Burger for Puma; various fashion
designers for Woolworths; Hip Hop Pantsula
for Miller Genuine Draft; Lucas Radebe for
Aquafresh; Bryan Habana, Graeme Smith,
Makhaya Ntini and Natalie du Toit (amongst
others) for Nashua Mobile.
Nonetheless, according to the talent agents
in South Africa, the business of celebrity
endorsements and branding is lagging far
behind the rest of the world. Brands don’t
seem to be jumping on the bandwagon and
pushing it either. Despite the media evidence
that local personalities help to sell, talent
agents and their clients are not finding that
endorsement opportunities are being creat-
ed by marketers. The exception to the rule
appears to be sports stars. “Money is seldom
offered, unless it’s to sports stars. Others are
given product, which of course, they love. We
have not charged for ambassadorships so far:
we should actually be looking at how to han-
dle this as it’s an area that is growing,” says
Whitaker. Other agents agree. They are
requesting that marketers improve on the way
that local talent is used and that they start
providing (paid) endorsements in line with
international trends.
Finding the right celebrity for a brand can be
difficult. A good indicator of those that match
a particular brand (depending on the target
market) can be found by simply taking note of
media trends. If the target market is youth, for
example, finding out who’s hot on various
youth programmes on the SABC and on pro-
grammes and channels such as MK89,
MTVBase, Jip, Channel O and GO is a good
start. Following who is being gossiped about
or on the covers of magazines – once again,
choose magazines that target the right audi-
ence – is another sure-fire way of finding out
who’s hot at the moment. Even something as
simple as picking up the January issue of
Cosmopolitan (it features the hottest local men
calendar) can provide ideas. This year the

TalentFinders currently holds talent that is represented by over

20 different agencies across South Africa. From models,
musicians and voice artists to public speakers, comedians and
even sports personalities – TalentFinders has agents who represent the best talent available countrywide. Marketing Mix thanks
TalentFinders for helping to put together the Celebrity Poll for Marketer’s survey.

 Alain Tardin  Forwardzone Sports Agency  Stark Raving Management

 Ambizana Communications  Francois Brink Sports Marketing  Storm
 Artist Conenction  Interface Talent  Storm JHB

 Beyond Destiny Worldwide  J23 Management  Talent International Christian Model &

Entertainment  JSK Music Talent Agency

 Bold Heart Group  Leads  Tamara Dey

 Bon Model Management  Owen’s Management  National School of Arts

 Buffalo Model Management  Patricia Glyn  Tomorrow Today.biz

 Chix With Stix  Patrick Masse Music Services  Trinity Entertainment

 Chrome  Pro Sport International  Watershed

 Craig Mischief  Quirky House  Wendy’s Model & Talent Agency

 David Graham  Siyandiza Music  Xolisani

 Electro-Muse  South African National Rowing Team  Xtreme Attraction

 Flash Republic  Speakers Inc

5 0 MarketingMix I Vol 25 No. 1/2

 CELEBRITY MARKETING

calendar included Mark Bayley, Cito, Gareth
Tjasink, Craig Urbani, Stoan and Daniel Hadebe.
Listening to the radio – 5FM, Metro FM, YFM
etc – will provide an insight into which top
local singers and groups are making waves.
Media analysis
Marketing Mix asked various media owners
who the hottest celebs (providing the biggest
selling magazines and pulling in the viewers)
are at the moment. Not surprisingly they
mentioned many more international rather
than local celebrities, although this also
depended on which media outlet Marketing
Mix spoke to. Nevertheless, for music Kabelo,
Heinz and Danny K were at the top of the list.
For local actors or TV personalities, we had
Charlize (of course). For the older female
crowd, the Top Billing presenters and Noleen,
Ruda and Leanne Manas were firm favourites.
It seems that young females in particular are
drawn to international rather than local
celebrities. (This seems to back up the request
from the local talent agents that marketers
need to take local talent more seriously by cre-
ating local celebrity brands through endorse-
ments and advertising.) Overall Ryk Neethling
was top of the list. “Generally speaking, we
find that local rather than international
celebrities sell better for Huisgenoot. However
the trend is not necessarily the same for You
magazine. For Drum we use local celebrities
almost exclusively.
For this market we find that it’s vital to put
new faces on our covers as soon as they
become famous. Our readers tell us that they
love the fact that we feature people as soon
as they appear on the market’s radar. Other
magazines in this market tend to use the
same celebrities year after year. There’s such
an explosion of new cover faces in the black
market that it makes the task of being fresh
and topical easier,” says Esmare Weideman,
editor, Drum, You & Huisgenoot.
Last year the hottest international couple
was (of course) Brad Pitt and Angelina Jolie
and featuring the pair sold extremely well for
local magazines.
“Brad and Angelina featured on our covers
quite frequently last year. They’ve sold very
well (particularly for You) but I think that
readers are becoming quite tired of them
now,” says Weideman.
According to Melinda Shaw, editor of heat,
Brad and Angelina are generally speaking, very
popular. They also scored high in the heat Hot
100 poll – another source of useful informa-
tion – although as Shaw explains, they are
only hot if they are also in the news during
that particular week.
On the local front, Minki van der
Westhuizen is a popular choice for magazines.
According to Andrea Caknis, editor of people
and mense, she has showcased Minki on the
cover of mense twice and both issues have
sold extremely well for a new magazine. g

CELEBRITY POLL
Marketers from all types of companies were surveyed to see who they
thought were the biggest celebrities in a range of different categories
which were divided into youth, adult and business. This survey was
undertaken to find out whether marketers seemed to be heading in the
right direction and whether they knew their local celebs. The results are
probably not what you would expect, especially if you compare the
marketer’s responses to the media responses.
Please note: This is not a scientific research survey.
Categories are: DJ, MC, guest speaker, Cabaret, Celebrity, TV,
Musicians (split into various music genres) and Sport (split into various
sports). They were also divided into male and female and then into the
youth, adult and business markets.
The youth market
Many marketers experienced difficulty in finding celebrities that
appealed to SA’s youth across all categories – particularly in finding a
guest speaker, MC or female DJ. Marketers were also unable to identify
a female cabaret artist and pop star or any TV star.
The adult market
Very few marketers battled with this section as a whole, presumably due
to the age of the respondents. However, some categories that marketers
struggled with included female MC, male celebrities, female cabaret acts
and female TV (which put Charlize Theron in first place).
The business market
Quite a few categories missed out on names as marketers failed to
come up with anyone at all. It seems strange that marketers should
struggle with the MC category – after all, there are many functions that
are hosted by the companies that marketers work for. Once again there
was difficulty with the guest speaker category and no cabaret act at all.
There was also no choice for Afrikaans music or the cycling category.
Overall, the most popular celebrity on the marketer’s radar is Ryk
Neethling – he received the most votes by far.

Most popular celebrities in the media

Local Music Actors/Actresses/TV Sport International celebrities
Danny K presenters Ryk Neethling Robbie Williams
Kabelo Ruda Landman Graeme Smith Britney Spears
Heinz Leanne Manas Doc Kumalo Beyonce
Dare Noleen Siyabonga Madonna
Tuks Charlize Theron Nkosi Paris Hilton
Kelly Khumalo Soap stars – 7 de Laan, Egoli, Bendict Vilakazi Brad Pitt
Miriam Makeba Isidingo, Other Angelina Jolie
Yvonne Chaka Chaka Yvonne Van Der Bergh Minki Van Der Mischa Barton
Westhuizen Wentworth Miller
Lindsay Lohan
Nicole Kidman
Grey’s Anatomy actors
Tom Cruise and Katie Holmes

5 2 MarketingMix I Vol 25 No. 1/2

 CELEBRITY MARKETING

MARKETER’S POLL RESULTS

MC
Youth Adult Business
1 Colin Moss 1 Michael Mol 1 Tim Modise
Notable mentions: Notable mentions: Colin Notable mentions:
Michael Mol, Derek Moss, John Vlismas, Jeremy Jeremy Maggs, Vuyo
Watts, Gareth Cliff Mansfield Mbuli
Notable mentions:
1 Leanne Liebenberg Jenny Crwys-Williams, 1 Leanne Manas
2 Penny Lebyane Noleen Maholwana- Notable mentions:
Notable mentions: Pabi Sanqu, Gerry Rantseli Basetsana Khumalo
Maloi, Elana Afrika, Ursula Stapelfeldt

Guest Speaker
Youth Adult Business
Notable mentions: Bryan Habana, Vuyo 1 Clem Sunter Notable mentions: Tim Modise, Toyko
Mbuli, Darren Simpson 2 Tim Modise Sexwale, Clem Sunter
Notable mentions: Sam Cowen, Ursula Notable mentions: Derek
Stapelfeldt, Lebo Mashile Watts, Mark Shuttleworth, Notable mentions: Tumi Makagabo,
Jeremy Maggs Basetsana Khumalo
Notable mentions: Joanne Strauss,
Basetsana Khumalo

Celebrity Business
Youth Adult Notable mentions:
1 Gareth Cliff; Mark Pilgrim Notable mentions: Gareth Cliff, Derek
Notable mentions: Heinz Alex Jay, Lucas Radebe, Watts, Lucas Radebe
Winckler, Lucas Radebe, Ryk Jeremy Mansfield
Neethling, Zola 1 Ruda Landman
1 Basetsana Khumao 2 Basetsana Khumalo
Notable mentions: Charlize 2 Noleen Maholwana-Sanqu
Theron, Jenna Dover, Irene Notable mentions: Leanne Liebenberg
Bester, Minki van der Westhuizen

Cabaret TV Colin Moss,

Youth Adult Youth Michael Mol
1 Marc Lottering 1 Barry Hilton No winners
No female Other notable mentions: Marc 1 Charlize
Lottering, Mark Banks Adult Theron
1 Derek Watts Notable mentions: Michelle
1 Sharleen Surtie-Richards Notable Botes, Ruda Landman
mentions: Leon Schuster,
No business winner

Presenter
DJ Youth Adult Business
Picture: 5FM

1 Gareth Cliff 1 Jeremy Mansfield 1 John Robbie

2 DJ Fresh 2 DJ Fresh Notable mentions:
Notable mentions: Alex Jay, Notable mentions: Alex Jay, Mike Mills, DJ Fresh, Mike Mills,
Nic Marais Gareth Cliff, Mark Pilgrim Nigel Pierce,
1 Nicole Fox Jeremy Maggs
Picture: 5FM

2 Elana Afrika 1 Tove Kane

Notable 2 Nicole Fox 1 Penny Lebyane,
Picture: 5FM

mentions: Notable mentions: Penny Natalie Becker

Picture: 5FM

Koula, Ursula Lebyane, Ursula Stapelfeldt

Stapelfeldt

Vol 25 No. 1/2 I MarketingMix 5 3

CELEBRITY MARKETING

Musicians Notable mentions: Skwatta Kamp Notable mention: Johnny Clegg

Afrikaans
Youth Adult Business
1 Arno Carstens 1 Mandoza 1 Watershed
Notable mentions: Robbie Wessels 2 Zola Notable mentions: Johnny Clegg,
Just Jinger
1 Karen Zoid Notable mentions: KB, Thandiswa
Mazwai Rock
Adult Youth
1 Steve Hofmeyer Business 1 Karen Zoid
2 Dozi 1 Mandoza 2 Wonderboom
Notable mentions: Kurt Darren, Robbie
Wessels, Arno Carstens 1 Thandiswa Mazwai Adult
1 Arno Carstens
1 Patricia Lewis Pop 2 Karen Zoid
Notable mentions: Karen Zoid Youth
1 Danny K Business
No business winner 2 Heinz Winckler Notable mentions: Karen Zoid, Prime
Circle, Watershed
Kwaito Adult
Youth 1 Watershed Other
1 Mandoza 2 Heinz Winckler 1 Soweto String Quartet
2 Zola

Sport Cycling Football Rugby

Boxing Youth Youth Youth
Youth 1 Robbie Hunter 1 Mark Fish 1 Bryan Habana
1 Baby Jake Matlala 2 Benny McCarthy
Adult Notable mentions: Doc Adult
Adult 1 Robbie Hunter Khumalo, Phil Masinga 1 Schalk Burger
1 Baby Jake Matlala 2 Percy Montgomery, Francois
2 Brian Mitchell No business winner Adult Pienaar, Bryan Habana
1 Mark Fish
Business Golf 2 Lucas Radebe Business
Baby Jake Matlala Youth 1 Naas Botha
1 Ernie Els Business Other notable mentions:
Cricket 2 Retief Goosen 1 Lucas Radebe Francois Pienaar, John Smit,
Youth Brian Habana
1 Graeme Smith Adult Swimming
2 Herschelle Gibbs 1 Ernie Els Youth
Notable mentions: Notable mentions: Retief 1 Ryk Neethling
Hansie Cronje, Jacques Kallis, Goosen, Gary Player
Makhaya Ntini 1 Natalie du Toit
Business
Adult 1 Gary Player Adult
1 Shaun Pollock; Jacques Kallis, 2 Ernie Els 1 Ryk Neethling
Jonty Rhodes 2 Roland Schoeman
Notable mentions: Graeme
Smith, Makhaya Ntini 1 Penny Heyns, Natalie du Toit

Business Business
1 Jonty Rhodes 1 Ryk Neethling
Notable mentions:
Shaun Pollock, Makhaya Ntini 1 Penny Heyns

5 4 MarketingMix I Vol 25 No. 1/2


Customer Experience
Management – the ultimate CUSP
The hottest marketing topic I can think
of is Customer Experience Management
(CEM). Surely a delighted customer is the ulti-
mate Competitive Unique Selling Proposition
(CUSP). CEM is positioning – or how you
want to exist in the customer’s mind.
According to Tom Peters’ Re-imagine!
Business Excellence in a Disruptive Age, CEM
includes the following:
 Humans have five senses – target all of
them
 Humans have a psychological/emotional
‘sense’ as well as a logical/rational ‘sense’
 There will always be a Customer
Experience. It’s a given, so make it reflect
the desired brand essence – product and
psychological positioning
 You must design the desired Customer
Experience
 Customers will pay large amounts for that
experience
An example of a rational and emotional
disaster zone: I bought a computer worksta-
tion from Game as a gift for my father. It
looked great when it was on display. I was
asked to pay for it upfront. While I was doing
so the teller stated that they were out of stock
and that I needed to pick it up at their depot.
It took me 30 minutes to drive to the depot
where I waited another 20 minutes for them
to process my order. Eventually a chipboard
DIY-kit was dropped into my trailer. It was so
compact that it would have fitted on my back
seat. However, that’s not all. It also took me
the entire evening to piece it together (terrible
instructions) – and the cold-glue (borrowed
from my neighbour) required an additional
24- hours to dry.
Here’s the point: While the rational CEM was
appalling, the emotional CEM was even more
disastrous. At each contact point, the service
staff operated like inefficient robots. They
showed no empathy, responsiveness or
accountability. At no point was it made clear
to me that this was a DIY-project (luckily I do
woodwork). In addition I had towed a trailer
there for no other reason than to check that it
was roadworthy!
Tips:
Good, bad or indifferent opinions are formed
by your customers at every contact-point. This
concoction of experiences is imprinted in your
customers’ minds. Each experience represents
an opportunity to control their defection or
loyalty.
If products are similar, the CEM experience
of the desired brand values will be your CUSP.
(Think ‘FTCPOV: From The Customer’s Point
Of View’ or ‘As you wish Mr/Ms Customer’)
Points-to-ponder:
 As products reach parity/proximity, emo-
tional CEM will differentiate you more and
more. There is very little difference between
banks, credit-cards and retail stores. Those
you like are the emotional CEM ones –
right? (Think Woolworths, ABSA – depend-
ing on your LSM grouping)
 High expectations are created by your
vision, values and proposition. For example,
a ‘Simpler, Better, Faster’ payoff line may
lead to a problem. If you can’t live up to
your expectations, change them – or
restructure your company. Your CEM must
deliver on the promise. Survey this by elicit-
ing explicit opinions before, during and
after a sale
 Vision, values and proposition: Make them
customer-centric and then deliver them
with CEM. Make sure that the CUSPs are
embedded
 Your corporate culture needs to match
your desired brand promise/essence
Operations need weekly meetings with
brand managers – consider restructuring
your company
 FMCG companies create loyalty through
EXPERT OPINION by ian rheeder
the emotional bond that is achieved by
great advertising. B2B companies need
to learn this classical marketing discipline.
However, FMCG companies need to
learn the rational B2B CRM relationship
principles too
 Measure emotional and rational CEM. The
emotional element is the most important
and the most difficult to measure. Focus on
CEM before (expectations), during (ask
‘What’s important to you?’) and after the
sale (collect and act on feedback)
 Customers must sense that you are on
their side. Ask them, ‘Tell me, what is
important to you about…? (Enter their
product, price and distribution topic)
 Moments-of-truth: Your frontline staff are
the most critical impact-points. They should
be a topic of discussion in every meeting
since they represent your potential cus-
tomer issues. Pay their bonuses according
to customer feedback
 Mystery-shopper: Arrange for your MD,
sales staff etc, to phone your own front-
line staff – and record the entire experi-
ence. Denial is the deepest flaw in the
human race, so check if you would defect if
you were the customer. Any negative
moments of truth?
 Service policies and procedures: Be sure
that they can accommodate the flexibility
of meeting your CEM Strategy. The cus-
tomer also needs to exert some ‘control’
over your service. There must appear to be
an ‘open’ policy, while keeping clients
informed
 Discovery Health: By brilliantly resolving
their most irate customers’ complaints,
Discovery’s ‘worst’ customers become their
most loyal customers
 Jaguar SA were recently stunned to see
that 45 per cent of their customers were
black females. They responded by tailoring
their CEM right down to the shop floor. g
Ian Rheeder
marketing and consultant trainer
Marketing Consultants
083 300 8080
www.markitects.co.za
Vol 25 No. 1/2 I MarketingMix 5 5
by dr rowan joseph LAW MIX
Designs on your designs
Product design protection is critical to the
prosperity of countless businesses, since a suc-
cessful design invariably invites emulation. In
their narrowest application, registered designs
guard against theft by competitors. In their
widest application, they may be able to secure
certain market sectors against competition.
Consequently, the importance of having
those competitive-edge designs registered
should not be underestimated.
The exclusive aim of a design is to enhance
the eye-appeal of new patterns, shapes, con-
figurations or ornamentation in articles. This is
the lifeblood of a design and just as impor-
tantly, the lifeblood of the business that takes
it to market. To register a design is surprisingly
simple, although the simplicity has been ren-
dered somewhat complex by legislation that
has differentiated between aesthetic designs
on the one hand and functional designs on
the other.
For example, there is a distinction that tries
to separate an aesthetic design (such as a pat-
tern applied to a fabric) from a design with a
purely functional value (such as the shape of a
camshaft lobe).
Although this example demonstrates an
unambiguous distinction, in reality it is often
very difficult to differentiate one from the
other. The good news is that such grey areas
can usually be ignored, since the overriding
factor is that designs can and should be pro-
tected, whether they are functional or aes-
thetic in nature. Asking what can be protect-
ed is probably the wrong place to start, since
our legislation only really tells us what cannot
be protected. Notwithstanding this, a design
can ultimately probably be protected if it can
be applied to an article.
Some of the most common protections for
registered designs involve new shapes of:
 Containers
 Household appliances
 Personal care products such as toothbrushes
and razors
 Motor vehicles
 Fashion items such as shoes
 Fabrics
 Furniture such as chairs and sofas
 Integrated circuit topographies
 Mask works used in creating integrated
circuits.
5 6 MarketingMix I Vol 25 No. 1/2
The exclusive aim of a
design is to enhance the
eye-appeal of new
patterns, shapes,
configurations or
ornamentation in articles.
This is the lifeblood of a
design and just as impor-
tantly, the lifeblood of the
business that takes it to
market. To register a
design is surprisingly
simple, although the
simplicity has been
rendered somewhat
complex by legislation that
has differentiated between
aesthetic designs on the
one hand and functional
designs on the other.
Indeed it is safe to say that designs can be
registered in any of the countless areas in
which designers operate. There are really only
two constraints with regard to what can be
protected.
The first is a broad limitation, which pre-
vents obtaining registered designs for articles
that are not intended to be produced by an
industrial process. These are essentially works
of art – and artists can always rely on copy-
right protection.
The second, more problematic limitation, is
a prohibition on protecting ‘spare parts’ for
machines, vehicles or equipment. Initially, this
prohibition was probably aimed at preventing
large players in the motor industry from killing
the ‘pirate parts’ industry, given that manu-
facturers could eliminate competition to push
up their prices.
What exactly is classified as a spare part? Is
an engine block or a piston a spare part?
The requisite definitions cannot be found
anywhere. Hence, there is of necessity a gen-
eral reliance on the approach that “if it is
intended to be regularly replaced, it is a
spare part; if it would be seldom, if ever,
replaced – it is not.” When in doubt, assume
that it is not.
Within these parameters, a brake pad
could be regarded as a spare part whereas a
steering wheel could not be considered to be
a spare part. Whether a windshield is a spare
part is doubtful – it would be safest to
assume that it is not.
A registered design will last between 10
and 15 years, depending on the type of
design. (An aesthetic registered design will
have a maximum lifespan of 15 years, while a
functional registered design will have a maxi-
mum lifespan of 10 years.)
However, one does need to pay an annual
renewal fee from the third year of filing the
registered design in order to keep it alive for
the full duration of its potential lifespan.
In the final analysis, registration acts as a
vital deterrent to competitors who are looking
to steal designs. The act of registration warns
them that the owner has taken steps to pro-
tect himself. It also immobilises entities that
make it their business to copy products.
In short, if used cleverly, registered designs
serve as a highly effective form of business
insurance. You ignore the registration of such
a crucial asset at your peril. g
Rowan Joseph, patent attorney
Bowman Gilfillan
(011) 669 9000
r.joseph@bowman.co.za