Beruflich Dokumente
Kultur Dokumente
Database:
List Perfect
Oops! In Vol 25, issue 11/12, we referred to Lucille Van Niekerk as the editor of Beeld, when she
3 938 Jul-Dec 2007 was in fact the general manager (she is now the CEO of RCP Media – congrats).
Google Zeitgeist
Every year Google provides the ‘zeitgeist’ of the most searched for topics, people
and words through its search engine. It provides a great insight into what’s hot
and what’s not.
New TV shows
M-Net has a host of new shows for 2008 some of which are destined to become huge hits. Marketing Mix gives its views on which shows will
be hits based on US and UK ratings as well as critics’ reviews and gut instinct. For the local shows, Marketing Mix expects them to be winners.
Just add
music
Which music is currently
enjoying its 15 minutes of
fame or would make a brilliant
soundbed for an ad? The list
below includes a wide range
of local and international
music styles and, most
importantly, it highlights
which songs are hip and
happening within different
target markets right now.
The following list is courtesy
of Roy Harman, who manages
South African artists and works
on various music entertainment
productions and events.
For more information on
how to match your brand
with an appropriate song
e-mail royharman@gmail.com
or call 083 407 4928
Act and song Why it’s hot Genre and emotion evoked
Joe Cocker A classic crooner with striking Rock, blues – powerful and ambitious
With a Little Help from my Friends vocals. He will be touring in March
Good Charlotte It’s fun and young. The well-known Punk rock – upbeat, elation and energetic
Broken Hearts Parade band tours SA in March
Johnny Clegg The local legend is touring again and World – honour, positive and patriotic
Cruel, Crazy, Beautiful World receiving favourable media attention
Loyiso Beautiful, melodic and romantic ballad; R&B – romantic, warm and loving
Dali Wami perfect for Valentine’s season
Gang Of Instrumentals A crossover hit that is very popular Afro pop – uplifting and happy
Cry For Me
Cassandra Wilson Powerful chorus that is captivating Jazz – lustful, yearning and vulnerable
Sunshine
DJ Nu-Mark Funky instrumental take of the John Hip-hop – kindness and peaceful
Imagine Lennon classic that will be instantly
recognised
Shawn Lee Quirky and funny instrumental with Chill – fun and spirited
Bollywood Indian charm
Easy Star All-Stars Well-known and groovy Pink Floyd Reggae – relaxed and comfortable
Money cover done reggae style
Puff Johnson Huge hit in urban market with strong R&B – smooth, sensual and slow
Forever More romantic and loving associations
“
have seen first hand the disruptive influence of Ask yourself this: Who ultimately pays for the
Procurement Departments who increasingly costs incurred in agencies’ new business pitches?
wield enormous power within corporates across I think pitches in their current form are
Any marketer worth
the globe. Sadly, it usually manifests in a outdated. Certainly pitches serve to galvanise their salt should be able
destructive manner in the pursuit of saving a and motivate staff, but at the same time they
few pennies. put huge pressure on staff and rarely generate to identify the key
As you have probably surmised, I am not work that sees the light of day.
characteristics, strengths
convinced that marketers have got the pitching In short, pitches have become an accepted
process right, nor do I feel that a pitch is the way of doing business because agencies have and weaknesses of an
best way to go each and every time. I certainly failed to stand their ground and instead have
am not impressed when I hear of pitch lists of chased the money, often at enormous costs.
agency without having
six, eight or even a dozen contenders. I think For clients, I suspect that pitches have to resort to a full-scale
”
three is more than sufficient. Any more suggests become a crutch of sorts for them to lean on.
that the client doesn’t know what they are They may be a way of levelling the playing field pitch.
looking for. Either that or they’re lazy. On top of and enabling apples to be compared with
that, I personally think twice before agreeing to apples, but I personally think that they are a cop
pitch on an account if the client is not prepared out as there are better ways to draw comparisons.
to offer some sort of pitch fee, however small, Any marketer worth their salt should be able to
to help towards costs. Having witnessed some identify the key characteristics, strengths and
pitches turn out to be no more than fishing weaknesses of an agency without having to
expeditions for ideas or aimed at pressurising resort to a full-scale pitch.
the incumbent to drop their prices, pitches Sadly, many executives rely on the protection
without pitch fees seem like commercial of the decision by a committee and try to
Russian roulette. rationalise the selection process of what is often
For me, one of the key measures of selecting an emotional purchase decision, like buying a
an agency is the chemistry between them and house. Perhaps there is something to be learnt
the client, both in terms of company culture by comparing pitches with dating. Which route
and shared values as well as on an individual would work best I wonder; the five-minute Richard Duncan
level. The pitching process doesn’t always allow speed date, the long drawn out engagement, Sydney, Australia
for the true chemistry to reveal itself as everyone the pre-arranged marriage or the good +61 41 154 9791
is ‘acting’ on their best behaviour and trying to old-fashioned dinner date? lduncan@bigpond.net.au
its focus on ethical codes of business and product Red for Life
manufacture as well as its ongoing commitment The Red for Life programme uses a variety of media platforms to reach its target market (particu-
to the community and the environment. “How larly the youth) with its messages. “While traditional ATL mediums like TV and radio are still
products are made, by whom and with what – effective in driving awareness, I would argue that their ability to influence or inspire action out of
all these factors are becoming more important the receiver – particularly on weighty issues such as HIV/Aids – is questionable. We have found
to consider, and this is borne out by consumer success through a more interactive, non-traditional approach because, for this communication,
studies globally,” says Gebhardt. The company’s it’s important that it engages the receiver in totality. It should add value to their lives, challenge
business policies include, among others, their thinking and cater for their needs, fears and preconceived ideas. And what makes this
addressing social biases; as early as the 1920s, possible is that non-traditional media allows one to be specific when targeting the end
the company was advertising in Spanish and consumer,” says Gebhardt.
Chinese, to specifically target and serve these TV and radio are also expensive, while non-traditional media approaches (mobile testing
often neglected markets. During the 1960s, it centres, condoms, etc) make a difference and drive real value for the brand. And by all
would not open new plants in those US towns accounts, it’s working. “Over 51 000 people have been tested, including many top local
that imposed racial segregation. And in 1991, it musicians and celebrities, the offices of the President, two United States Congresswomen, the
was the first multinational company to develop COO of the SABC and DJ Fresh and his team, live on air,” says Gebhardt. The campaign was
a code of conduct that made provision for the helped along by the SMS service established in collaboration with Karabo; people could SMS
individuals who manufacture their products; the their location to the service, and it would reply with the details of the testing station nearest to
company set guidelines for the safety and health them. The service received over 2 000 SMSes in a little over six weeks.
of its employees as well as for their treatment in
the workplace. says Gebhardt. These initiatives include Levi’s
The company’s guidelines also take the Original Music (which supports local original
environment into consideration, with Sourcing music) and the Levi’s Red for Life programme,
and Operating Guidelines, Global Effluent which addresses the HIV/Aids pandemic.
Guidelines and a Restricted Substances List, all Gebhardt says that the denim brand has built
of which seek to control the impact that Levi’s itself and leveraged its initiatives through its
manufacturing has on the environment. “As a commitment to a local association with a
brand, we have always prided ourselves on a property literally embedded in its genes – music.
‘profits through principles’ approach; and this is South African musicians lend their voices and
reflected through our Terms of Engagement their fan appeal to Levi’s causes, making the
contract that we employ with our suppliers, brand message irresistible to the youth that are
which devotes a chapter to environmental the target.
sustainability,” says Gebhardt. Another brand dimension which holds campaigns that have, over the decades, made
Globally, Levi’s was the first major brand to huge market appeal is the sassy advertising this brand a firm favourite. You may remember
launch a fully sustainable pair of jeans (Levi’s the ad featuring the ‘blind’ voyeur in the petrol
Eco Jeans) in mid-2006, while locally there are a station bathrooms or the sexy blonde who uses
few projects in the pipeline. “We are currently train tracks to cut her jeans? Levi’s is making
conducting a project with the National Cleaner good use of this ‘street cred’. “I believe that as a
Production Institute (NCPI) to further ‘green’ our sexy brand, we are demonstrating to people,
facility. We have also recently introduced video- specifically the youth, that you can be sexy AND
conferencing to cut down our employees’ travel responsible. And, encouragingly, we have
and are launching a small 100 per cent organic seen this approach resonate more and more
cotton line that aims to educate the consumer particularly with the younger generation – we
on the lack of ‘green’ manufacturing options in see it reflected by the youth,” says Gebhardt.
South Africa,” says Gebhardt. “This is an The Levi’s brand appeals to just about
important issue to which everyone needs to everybody, regardless of age or race. According
contribute but ultimately consumers have the to Gebhardt, the brand achieved this through its
opportunity to drive that change.” use of relevant, local properties in its Original
Community involvement and support, as well Music and Red for Life campaigns. “Levi’s is one
as a dedication to social issues, such as the Aids of the most widely recognised brands in the
pandemic, have also given the Levi’s brand a history of the apparel industry. It has evolved
certain leverage. Locally, Levi’s has four for over 135 years by remaining firmly in
Community Involvement Teams (CITs), which touch with the youth market. Going forward,
identify and organise several community projects the brand will remain true to its pioneering
each year. “The programme is driven and heritage, seeking to uncover consumer
managed by the staff as opposed to management. insights, probing global trends and innovating
Locally, we have focused particularly on helping to meet consumers’ ever-changing needs,”
those in need, from the elderly to street children,” says Gebhardt.
“
obsession with bodily functions. A toilet roll copywriters, journalists and even scriptwriters
manufacturer says that we should be quite keen To me the English have lost the plot (pun intended). I used to enjoy
to overindulge in vindaloo as, with its product, watching Isidingo with my daughter but even
we will look forward to sitting on the loo longer
language in South Africa that has become unbearable – rape, gangsters,
(yeah right!) It seems too that marathon today is a vision of its drugs, murders, election fraud, affairs, mercenaries,
runners suffer from diarrhoea while running. corruption and so on. Where is the good stuff,
(Gee, thank you for telling me that). former self – please can does it have to be bad or rude to entertain?
Motor car companies refer to ‘cardinal And after reading a recent newspaper report,
we all do something
knowledge’ (sic), I discovered the word I cannot believe that a journalist reporting on
‘decadent’ being used to sell mayonnaise and a about it before we degen- the horror of an attempted rape resorted to
financial services company using phrases like using words such as ‘vagina’ and ‘penis’. I
‘bullshit’. None of this is clever writing – it’s
erate into adopting a would assume that in a crime of this nature
boring and unintelligent. series of grunts with finger those body parts are generally the ones used –
”
Where is the originality, the beautifully scripted how tasteless and offensive to the victim to be
words that invoke in the consumer thoughts of movements? quite so blunt!
the real benefits of the product, the real positive To me the English language in South Africa
sense of what they are buying? Granted, there today is a vision of its former self – please can
may be many people out there who enjoy this we all do something about it before we
type of humour and perhaps they like to degenerate into adopting a series of grunts with
visualise themselves stuck on the bog all finger movements?
morning, feeling endlessly grateful for their
double/triple/quadruple ply toilet tissue. But I when we were revelling in our freedom,
think you may find just as many people who certain members of the community may have Helen McIntee
would rather use their imagination than be misinterpreted the Constitution as a wonderful academic director
thrown figuratively into a small room that smells piece of work that says ‘we can do, say, and IMM graduate School of Marketing
rather badly. behave’ in whatever way takes our fancy. (011) 628 2038
Perhaps in the early days of ‘independence’, In fact, to that end, I was blown away when helen@imm.co.za
Nic Haralambous –
editor/blogger/business strategist
Think pink
What do Hugo Boss, Mumm Champagne, competitors who have been slow to However, research is difficult to carry out.
Flexbender, Exclusive Books, Bacardi and 5FM acknowledge this market. “The respondents are difficult to identify as the
have in common? In a nutshell, they have It is estimated that about 10 per cent of the only element they have in common – their sexual
successfully marketed to the gay community (or population of developed countries is lesbian or orientation – is invisible or intangible,” says
LGBT – Lesbian, Gay, Bisexual and Transgender – gay. Locally based Hot Salsa Media has been Quann. According to Morne Ebersohn, publisher
community). These are brands that have realised conducting research since 2001, it has found of local gay magazine Wrapped, there is the
the potential that the LGBT market has, and that 10.8 per cent of the adult market is gay or problem of where to sample from. “We have no
have also taken the right steps to communicate lesbian. “In perspective, in these groups there database to draw on for a study of this market.”
with it effectively. And you can bet your fabulous are more gay and lesbian people in SA than Nonetheless, the profile of the gay community
Pink Rand that they have more support and there are white people,” says Viv Quann, senior has been raised, thanks to the entertainment
loyalty from this community than those of their group strategist, Hot Salsa Media. media (think Will & Grace, Queer Eye for the
Gay media in South Africa: power of the gay and lesbian market in the USA
Wrapped magazine at US$641 billion. Mark da Mata, marketing
Mambaonline.com executive at Pink Advertising, says: “while it is
Mambagirl.com true that a fair proportion of the sector is in the
Gay Pages upper LSM bracket, there are a few things that
Exit should be taken into account.”
Gaypeers.com For example, gays and lesbians have been
The Pink Tongue found to be far more entrepreneurial than other
Bravo Brava, Radio 2000. populations. Hot Salsa Media found lesbians
earn as much as heterosexual men, with 25 per
cent earning more. Compare this with studies
that put heterosexual men and women side by
Courtesy Queer City Productions side, and you find that 34 per cent of these
women earn less than men. “That’s because
one in three lesbians is a successful entrepreneur
and one in four gay men is an entrepreneur; for
their heterosexual counterparts it is one in six,”
says Quann. This is usually because gays and
lesbians don’t have the family responsibilities
that heterosexuals have, although Hot Salsa
Media reports that locally, 24 per cent of
lesbians and five per cent of gay men have
children living in their homes.
Further food for thought, is the fact that a
fair proportion of gays and lesbians are
“
In perspective, in these groups there are more gay
”
and lesbian people in SA than there are white people,
Viv Quann, Hot Salsa Media.
Straight Guy or The L Word, all of which screen
on DStv), and new legislation (specifically, the
Civil Union Act, which now recognises same
sex marriage). This has opened up huge
opportunities for the hospitality industries here.
Ezemvelo KZN Wildlife Resorts has seen a jump students, falling into the 18 to 22 age group.
of over 300 per cent in bookings and a 100 per “They are students without disposable incomes.
cent increase in the number of LGBT weddings Yet this is the right place to create loyalty and
at its resorts, reports Quann; all this simply build a brand,” says Rossouw.
because it marketed itself correctly and has One thing’s for sure: brands are starting to
trained its staff in dealing with gays and lesbians. show greater interest in this market. The 2006
Mainstream media coverage of gay events Gay Press Report found that advertising in the
has boosted the gay community and gay events gay and lesbian press was up 205 per cent since
industries. “All the media coverage has helped 1996, reaching $223.3 million. Over 183
us to start doing bigger things, because brands Fortune 500® brands were active in the gay
and companies trust us to do bigger things,” market as of 2006 (compared with 150 brands
explains Pieter Rossouw, MD, Queer City in 2004). The report found that the most
Courtesy Queer City Productions
brand on the outset. It was 0.5 per cent. At the Advertising to this market must be subtle and
end of the second year, this had jumped to 3.5 must show an understanding of the gay lifestyle.
per cent, which is over R2 million in revenue,” “The gay market is tough and unforgiving. You
says Quann. can’t lead them by their noses,” says Rossouw.
In the US, LGBTs have specific websites Da Mata adds that understanding gay
geared to them, such as gay financial network relationships is also key. “But more important is
www.gfn.com; there does not seem to be a the understanding that being gay is not a sexual
local equivalent. But locally, gay couples who thing. It’s about lifestyle and mindset,” he says.
Segmenting by age group or lifestyle interests is
more positive. LaMuraglia suggests that religion
and politics be kept out of ads. One-size-fits-all
ads, catering to the masses, won’t endear you
to this market (keeping in mind that gays and
lesbians will have different needs and shopping
habits, for example, and also that the LGBT
market has various sub-cultures, each of which
wants to be addressed directly). “Use a
gay-targeted message to relate to the target
market… if you are going to show people,
don’t show a straight couple. Take time to think
about your market,” says La Muraglia.
Marketers who are concerned that targeting
the LGBT market will alienate their straight
customers should tweak their campaign material
accordingly, so that the messages and creative
Courtesy Queer City Productions
according to da Mata.
Brands are reminded that they should be
seen to be in it for the long term. “Many
companies have mistakenly believed that they
can come into the LGBT arena, throw a few
bucks at the market for a month or two and the
market will be so grateful it will run and buy
their products or services immediately,” says Quann
A company’s service also needs to address
this market correctly. “Your staff members need
to learn to speak without bias or assumption.
They shouldn’t assume that every person they
speak to is straight, married and has kids. If they
are married and have kids, staff shouldn’t
assume that they are married to someone of the
opposite gender,” says Quann. Non-gender
specific language is especially important.
Traditional media formats targeting the local
LGBT community are seeing major growth.
Wrapped magazine, for example, has watched
its sales figures growing from just 32 per cent in
April last year to around 70 per cent in
December. The Pink Tongue, a recently launched
community newspaper, published by the fact that it is often ‘targeted’ by brands and
Independent Newspapers Cape, is taking is therefore in a position to choose who it wants
gay news and lifestyle features to the gay to support,” says De Klerk.
communities around Cape Town and Gauteng. The good news for marketers is that when
Distribution of the title’s 15 000 free copies is targeting the LGBT market, they are freer to
through various gay-owned and gay-friendly experiment with events, activations and online
establishments. “Before the paper was tools. “As long as it’s the right product and it is
launched, various NGOs (such as the Triangle presented in the right way,” says Rossouw, who
Project) were approached and they all gave has watched some brands try to enter this
the thumbs up to the concept,” says editor, market and fail miserably.
Gary de Klerk. Events are one affordable option for brands
The newspaper is tasked with challenging seeking exposure to this market. Rossouw has
homophobia, and it achieves this by featuring also found an increasing number of brands
and following up on current news, including want to get involved, especially as the quality of
articles dealing with homophobia. The publication event production improves. “It’s not that there
embraces homosexuality and publishes a is hesitation on the part of advertisers or sponsors.
mainstream monthly publication that shows gay It’s just that until recently, there was a lack of
life and lifestyles. The newspaper is the ideal structure in the planning of events – proposals
environment for cars, cosmetics, banks and and documentation, for example, and the
investment companies, travel operators, alcohol, exposure for these events,” he says. Events must
speciality brands, shops and clothing stores. be of a high quality – the market demands it,
“Brands and products need to be aware of the and because it is becoming increasingly
fact that the gay market is picky; it is aware of acceptable to be openly gay or lesbian, events
really need to deliver something extraordinary.”
Da Mata further emphasises donations to
Gay car of the year: gay causes and the development of corporate
www.wheels24.co.za recently held the second annual Alternative Car of the Year Awards, policies should be looked at. Global Rental (a
in which car fanatics cast their votes in categories, including Corrupt Politician’s Car, locally based company offering local and
Straight Car and Gay Car. international car rental services) is allocating five
Nominees in the Gay Car category included the BMW 3 Series Cabriolet, Mini Cooper, Alfa per cent of its profits to two LGBT non-profit
Romeo Spider and Audi TT Roadster. But the winner, with a whopping 8 700 votes, was organisations. The campaign relies on LGBT
the Peugeot 207 Coupe Cabriolet. According to Wheels24 editor, Wilmer Muller, the key websites to forward an e-mail advertising the
characteristics highlighted by online voters, which set the Peugeot apart included services of Global Rental and the LGBT initiative
stylishness, fashion ability and uniqueness. that it has committed to, so that it eventually
Who is the gay market? frequent magazine readers, and 21 per cent
Mambonline has done some research, and has found that: have a personal income above R15 000 a month.
Over 65 per cent of this market falls between LSM 8-10 Look out for the growth of targeted ad
Over 80 per cent aged over 25 own their own homes networks, says LaMuraglia, as these will help
Over 15 per cent own a second home marketers speak to LGBT consumers in their
Over 70 per cent take more than five power breaks in upmarket settings a year own voice and on their own turf. “The
Over 25 per cent are self-employed entrepreneurs proliferation of blogs and social media networks
Over 30 per cent have tertiary education has increased the raw number of gay
consumers online, but from a marketer’s
becomes viral. “This is measurable, to the cent, perspective, it is difficult to manage multiple
actually, as it is online bookings done through a campaigns to an increasingly fragmented
single URL created only for this campaign,” market,” he says.
explains Quann. The brand is successfully building Get the marketing, communications and
its profile among a market of which a large service right, and your brand is in for a long and
portion are successful, upper LSM individuals, rewarding love affair with the LGBT market,
who have more opportunities to travel and because this is a brand loyal market. Hot Salsa
therefore more opportunities to use the rental Media found respondents prefer to purchase
services provided by Global Rental. from gay-friendly companies, even if their prices
Online tools are great options. “The gay are higher. They feel it is important not to buy
market talks and interacts online a lot more from companies who are hostile toward them.
than straight markets do, with chat rooms, Eighty per cent of respondents reported that
social networks and dating sites allowing more they would change their attitudes towards
social interaction. These platforms also allow purchasing brands that support them, with
them to meet other gays without possibly 73 per cent saying that they would purchase.
offending others,” says da Mata. Fifty-seven per cent of respondents reported
Gaypeers.com, a local social networking that they have changed the brand they
website, was launched in October 2007, and purchase based on a company’s positive stance
now has over 1 500 members. Lay says that the toward the gay and lesbian community. Of that
majority of the members are LGBT (between number, 76 per cent stayed with the brand for a
80 and 85 per cent are male). “There is a small year or more. “The best thing about this market
percentage of straight individuals joining the is that they become brand ambassadors when
website as well. However, it must be stipulated they are served in the right way,” says Rossouw.
that the content on the website and the LaMuraglia too points to gaywheels.com surveys,
marketing activities are solely directed towards which saw 86 per cent of GLBT respondents
the LGBT group.” She says that online marketing considering a company’s policies towards them
is highly popular and efficient for advertisers before purchasing a product. “Statistically, we
who want to market their products within the are loyal to brands that are gay friendly and that
gay community, especially because the Internet support our media,” he says.
is the only medium that covers the gay community And once the gay market has adopted a
thoroughly and extensively. “Even in brand and endorsed it, the straight market will
underdeveloped, suppressed and highly quite likely follow suit. “Gays are perceived as
homophobic societies such as Uganda, the gay chic and to have style,” says Rossouw, pointing
community groups or gathers together and to the metrosexual trend as one example of a
stays in touch via the Internet,” she says. gay-pioneered trend.
Website mambaonline claims to reach It would seem that the LGBT market is
43 000 people a month through its lifestyle untapped, and in need of brands bold enough
website. The site reaches urban gay men and to snuggle up with it. But not all brands will
women aged 18 to 45. Site content includes benefit from a foray into gay marketing. The
weekly lifestyle features, daily news, fashion, cosmetics, fragrance and car markets
entertainment and a popular online dating will find it relatively easy to get a foot in the
service (Meet Market), which boasts in excess of closet door. Baby products, on the other hand,
18 000 members. According to a survey of should avoid trying to woo gays. “While there
visitors to the site, 76 per cent own PCs; 60 per are a lot more gays adopting children now, this
cent are regular cinema-goers and restaurant is still a small niche,” says Ebersohn.
diners. Fifty-two per cent travel internationally
every two years. Eighty one per cent are
Industrial developments
Several industrial development zones (IDZs) are
attracting local and foreign investment.
According to information published on
www.coega.co.za, the 11 000-hectare phased
Coega development zone will create industry
clusters dedicated to export manufacturing
companies in the region. This IDZ is set to
attract foreign and local investment in the
manufacturing industries; the sites are serviced,
and there are flexible lease and utility prices. Key
priority investment sectors include metals,
textiles, automotive, services, chemicals and
energy. News reports indicate that a deepwater
port is being built in this zone, and this has
attracted investment from Alcan aluminium
smelter as well as a Seark shrimp farming project
(both of these investments amount to millions).
The East London Industrial Development Zone
has grown since its inception in 2002, to
number more than 100 fully serviced sites and is
© Graeme Bridger home to DaimlerChrysler South Africa as well as
initiatives promising to further grow this region, in the province, and it is the biggest consumer renowned component manufacturers. It also
it is a market area that cannot be ignored. of Amstel Lager. offers opportunities to businesses in the
Marketing Mix takes a closer look at this The Eastern Cape’s economy saw growth of automotive, marine aquaculture, agro-processing
province, and all that it offers the marketer. 4.8 per cent in 2005 (up from 4.2 per cent in and pharmaceutical industries. This IDZ is also
the preceding year). Annual GDP growth is also focused on attracting local and foreign
Overview on the up. The main contributors to this investors. Some of these projects may be
AMPS 2006 figures found that 14.8 per cent of growth are finance, real estate and business affected by the power crisis, but it seems they
the total population lives in the Eastern Cape; services, followed by government services and will continue to run smoothly for now.
almost 53 per cent are females. Thirty-two per manufacturing. The automotive industry is a “The Eastern Cape has not been affected by
cent of the province’s population is aged 16 to major source of investment and GDP for the load shedding to the degree that Johannesburg
24; 24 per cent is aged 25to 34. Twenty eight province. General Motors invested R700 million has – we are managing it,” says Neil Hart, MD,
per cent of the Eastern Cape population has a in a plant, when it launched the H3 in South Boom Town Advertising. It is involved in the
household income of between R600 and Africa. Volkswagen is awaiting completion of its Govan Mbeki renewal project, which is
R1 000 a month; 5.4 per cent earn between R750 million paint shop. And Daimler Chrysler is modelled on such urban regeneration projects
R8 000 and R14 000. Total provincial personal upgrading its facilities in East London. Farming as we have seen in Newtown, Johannesburg.
disposable income is estimated at an annual and horticulture generate around R2 billion for “With regard to the Govan Mbeki renewal
R50 billion. the province, according to Stats SA. project, it is a longer term project where a
Almost 80 per cent of the province’s residents “The Eastern Cape has 15 per cent of South number of things have to be addressed first in
Summer Lovin’ • The majority of respondents indicated that they have visited
Nelson Mandela Bay Tourism and the Eastern Cape Tourism Nelson Mandela Bay more than three times. Most of the
Board’s Summer 2006/7 Research Survey reported the following first-time visitors were foreign visitors.
findings: • There has been an increase in the use of self-catering
• 84 per cent of respondents were domestic tourists and 16 per accommodation, second homes, guest houses, camping/
cent were foreign tourists; this shows a decrease of 4 per cent in caravanning accommodation and backpackers’ lodges.
domestic respondents compared with the 2005/6 period, and an • The majority of respondents spent more than R500 or more per
increase in foreign respondents from 11 per cent. day per person.
• Of the foreign visitors, 25 per cent were from Africa. • Most respondents made use of a telephone to book accommo-
• The majority of domestic visitors were from Gauteng, followed dation, followed by Internet/e-mail, travel agent and tour opera-
by the Western Cape, Eastern Cape and KZN. tors, walk in, family and friends, timeshare, booking agency and
• Most of the respondents from abroad were from the UK, other. However, for international visitors, booking via Internet/e-
Ireland, Germany, Sweden, the US, New Zealand, Australia, mail was more prevalent.
Switzerland and Italy. • Most respondents were motivated by friends and relatives to
• Compared with previous years, there has been a marked visit Nelson Mandela Bay. Twenty per cent were motivated by
increase in visitors from Ireland, Botswana and the UK. their previous visits, followed by Internet recommendations, mag-
• There was a fairly even spread of respondents from each age azine exposure, brochures and business.
category, with 31-40 year olds accounting for 20 per cent of • While shopping and entertainment is less of an attraction this
respondents. They are followed by age groups 16-20, 41-50, year, the beach is increasingly an attraction to visitors. The wildlife
26-30 and 51-60. and adventure pursuits have also seen increased interest.
• In terms of occupational status, the strongest market is profes- • The majority of respondents said they perceive Nelson Mandela
sionals, which account for 35 per cent of respondents. They are Bay as a safe destination. Only two per cent of respondents said
followed by students, self-employed, state employed, pensioners, that it is unsafe.
other and unemployed. • The wind, the beach and the weather are the least enjoyed
• The majority of respondents stayed in Nelson Mandela Bay for aspects of the area.
11 days or more. Twenty-five per cent stayed 3-5 days, 18 per • Only 30 per cent of respondents were aware of the Summer
cent between 6-8 days and 14 per cent between 9-11 days. The Season Programme this year compared with previous years
statistics reflect that, compared with previous years, there is an (this may be because the campaign started late due to financial
increase in people staying for 11 days or longer, as well as an constraints). However, overall ratings for the Summer Season
increase in short stays. programmes were all high.
Newspapers
The newspaper sector is well developed, with a
range of daily, weekly, weekend and free
community titles distributed in the province.
According to AMPS 2007 figures, newspaper
penetration in the province has risen to 26.5 per
cent, from 25.2 per cent the previous year. And
while this is still the lowest penetration across
the country, this is a sector that looks set to
grow, especially in developing regions (the
townships and new development zones). “Our
province has also seen a recent boom, so there
are many more businesses springing up, which Eastern Cape community newspapers
means there are more advertisers,” says Title Distribution Circulation Estimated Readers
Mauneen Charter, Chief Sales Officer, Avusa (ABC Jul-Sep readership
2007)
Community Newspapers. Two new malls opened
in Port Elizabeth, with a third opening in April
2008. “Once these developments attract talent
and empower people economically, newspapers
in the area might see an increase in circulation
and readership,” says Reinard du Plessis,
advertising manager, Die Burger Oos Kaap.
Outdoor advertising
The outdoor advertising industry in the Eastern
Cape is growing steadily. “With the previously
limited outdoor media channels available to
local as well as national businesses in the
Eastern Cape, the growth in the outdoor media Johannesburg, Cape Town and Durban. which attract consumers across all LSM groups.
industry in this area is providing a welcomed “This has changed due to advertisers now Positive factors include good transportation
solution for advertisers,” says Wall. He adds that seeking to gain a foothold in the area and with routes, diversified mix of retailers and service
outdoor advertising in the region is subsequently the municipality changing its view on outdoor providers, along with the rejuvenation of the
new, fresh and affordable compared to TV, advertising,” he says. Clients can expect a larger CBDs attracting consumers to the heart of
radio and print. Wall believes that the Eastern ROI than they might see in Johannesburg or cities,” says Wall.
Cape traditionally has not had good stock of Cape Town, thanks to the affordability of sites With economic pressures forcing consumers
outdoor opportunities due to the conservative and the comparatively uncluttered environment. to spend less on luxury items such as
outlook of the municipality and outdoor “Prime sites are those situated in the heart of magazines, Wall predicts that there will be an
advertising budgets being split between the cities of Port Elizabeth and East London, increase in the use of outdoor.
The marketing of
marketing
After a recent call-in radio show, I was forced an hour or so supplementing textbook learn-
to wonder, once again, how we attract the ing? Giving a few insights which fascinate so
right people to the marketing profession. The many – once they know what we actually do!
programme topic was The Importance of Good qualitative researchers make a living
Career Guidance and it was frightening to out of the ideas and input of the target
realise just how many scholars flounder when market. They have so much to say – and so
making subject choices in Grade 9, and again much to learn. On a small scale, I have had the
when deciding which career path to follow. opportunity to interact with schoolchildren,
Having spoken to many parents, diverse introducing them to case studies and getting
views were forthcoming. There are those who their input on the future of brands they relate
believe that career choice is determined to. To see them mesmerised by the basic facts
parentally – based on family background and about Wonderbra or M&Ms is rewarding. Their
cultural input (yes, there are still those who views on how vehicles and cellphones should
believe that girls ‘waste tertiary education’). be marketed responsibly are awesome. And yet
Many parents suffer from ‘I Should’ve these young minds are lost to other
Syndrome’. That is: ‘When I look back I realise professions because no one is really
I should have been a lawyer, plumber or marketing Marketing.
salesman and so that is what I am Many have stumbled into marketing or
encouraging Johnny to do’. And some who advertising by default. Several chose to study
couldn’t give a continental and leave their kids advertising because they genuinely believed
“
to find their own way or blame the school if that they were going to star in ads as a first step
Sophie brazenly wanders into the world of vice to becoming the new Halle Berry. Thousands
marketing (very profitable, I believe). PR is NOT downing opt for positions as sales reps as ‘a place to
The most thought-provoking view, for me, shooters with clients at start’ without realising the importance and
was offered by a gentleman who regards career potential of this crucial role in business. The pro-
guidance in any form as a load of *&%$#@ wet T-shirt competitions liferation of ’PR poppies‘ and ’event managers‘
because, after all, a “job is merely a means to bears testimony to the fact that hundreds are
and event management
an end’ and kids should realise they need to clueless as to the real value of these disciplines –
make a living and any old means will do. That goes beyond organising PR is NOT downing shooters with clients at wet
concerns me. I am sure there are relatively few T-shirt competitions and event management
people making money out of what they are
a dinner for three top goes beyond organising a dinner for three top
truly passionate about. But many saying ‘if only Party officials and their Party officials and their connections, lawyers
I had…’ or ‘I wish I could…’. Perhaps we could and hitmen.
connections, lawyers
”
institute a ‘job-swap’ programme – I am sure Perhaps marketing professionals could make
that for every plumber wishing to be a one resolution for 2008. Could each one contact
and hitmen.
hairstylist, there is a stylist itching to be a one school, business economics teacher, matric
mechanic or a mechanic born to pursue class, guidance teacher or one teen TV show and
medicine. A swap around would probably result go out there and market our profession – pas-
in every square peg fitting neatly into its little The OBE schooling system, despite its critics, sionately – so as to educate, entertain and pass
square hole. (Let me rethink that is geared to produce learners who are far more that passion on to the young, vibrant minds out
mechanic/stylist fit!) sussed when it comes to real-world functioning. there. They are the foundations of our brand
Bottom line, I come into contact with They have, for example, been studying the architecture for the future. Dare you!
many people who express an interest in basics of advertising and film production since
marketing, but aren’t sure exactly what it is. Grade 7. They know what an income statement
Michele Venter-Davies
There is the age-old confusion between and balance sheet are by Grade 9. The schools
marketing and sales; marketing and are pushed to their limits financially and, sadly, faculty head: Marketing and
advertising; marketing and public relations. No one of the areas considered a ‘luxury’ that many Advertising, AAA School
one outside the profession really knows exactly cannot afford is career guidance. What are we (011) 781 2772
what we do. as a profession doing to go out there and spend michelev@aaaschool.co.za
3D HD busts out
We are born with stereopsis – the brain’s 3D power products
amazing ability to instantaneously combine Window on world (WOW) 3D display products
two slightly different views into a single three are unrivalled in their ability to show powerful
dimensional (3D) perception of the world advertising messages on flat-panel plasma and
around us. Yet, up until now, most of our LCD screens. Images can be originally
media has been 2D. Finally, 3D technology is produced in 3D or converted from existing 2D
coming to the fore and changing the way we for our state-of-the-art digital signage. Global
see the world around us. brands have seen significant revenue growth
After years of false starts, 3D imaging generated through 3D screens, creating a
systems are ready to go mainstream with the more real experience and message, thus
advent of 3D autostereoscopic screens that enticing the customer
require no glasses. From cellphones to laptops Today there is a range of autostereoscopic
and monitors, the 3D boom is about to hit displays that can be used in applications
your eyeballs. 3D is moving across all media – ranging from advertising to scientific
cellphones, laptops, point-of-sale systems, visualisation. As the demand for such displays
corporate presentations, cinema, Internet and increases, the 3D HD and computer graphics
IMAX. The new 3D HD imaging technologies fields face the challenge of demystifying 3D
will help bring a new dynamic to the world of technology and simplifying the image
business, advertising, art, science and education, generation process by creating uniquely effective
and has already sparked intense debate. 3D 3D images. Volumetric displays illuminate
will also transform the public’s view of galleries points in a spatial volume. Parallax displays are
“
and museums, with virtual tours taking one the most common autostereoscopic displays
right into the buildings in which works are We saw the 2006 FIFA and are compatible with computer graphics.
housed and enabling one to walk around 3D digital cinema immerses viewers in a virtual
the corridors and to be inside the painting, World Cup Trophy Tour world filled with images so vivid, they can’t help
visualising impossible scenarios. This creates a but respond. Scientific studies have proven
(and tournament) filmed in
completely different view, one that is not conclusively that viewing in 3D results in deeper
available in the real world. 3D; this was a world first impressions, better retention of information and
A digital revolution on convergence has been a more memorable experience. Science aside,
the enabling technology for 3D re-emergence.
that opened up huge anyone who has ever watched an audience in a
Although technically very complex, a huge possibilities for 3D HD, live 3D theatre will see kids grabbing at thin air,
consortium of technological companies and while adults smile and appear mesmerised. There
action and animation.
”
producers are working together to bring this is huge growth potential in the digital content
powerful technology to the fore. and 3D markets. As of May 2008, 1 200 digital
3D displays have recently become both 3D cinemas will be open in North America and
increasingly popular and practical in the by the end of 2008 over 3 000 digital cinemas
computer graphics community. This interest can will have 3D capability worldwide.
be attributed to many factors. In our daily lives Cinemas across the Western world are
we are surrounded by synthetic computer converting to 3D, which will change the face of
graphic images in print and on television and advertising and the cinema experience. We saw
can now even generate similar images on the 2006 FIFA World Cup Trophy Tour (and
personal computers in our homes. We also have tournament) filmed in 3D; this was a world first
holograms on our credit cards and lenticular In the business of computer graphics, the that opened up huge possibilities for 3D HD,
displays on our cereal boxes. And has it really computational power now exists for desktop live action and animation.
been so many years since we first saw Princess workstations to generate stereoscopic image
Leia projected into thin air in the Star Wars pairs for interactive display. At the high end of
motion picture? With each new technology or the computational power spectrum, the same Don Searll
movie, the excitement seems to grow. advances that permit intricate object databases director
The developments in the computer graphics to be interactively manipulated and animated Haptics
industry have also done their part to make also permit large amounts of image data to be (011) 804 2468
spatial images more practical and accessible. rendered for high-quality 3D displays. dmsearll@gmail.com
Pack it in
Packaging is no longer just the pretty paper that sustainable packaging is a necessity, and is
that covers your favourite cheese and helping packaging/manufacturing companies as
differentiates it from its neighbouring well as retailers to develop products and
competitor brand. It has the power to extend packaging that are acceptable.
the life of its contents, and maybe even call out Already, consumers in the UK and US are
to your customers from the shelves, with jingles. taking a stand against brands, products and
Packaging can change colour when its contents retailers that have not made a move to cut
are stale (or too hot to drink). And today, it can excess packaging from their products. Wal-Mart,
also help to save the planet. for example, has developed a Sustainable
Marketing Mix takes a closer look at the Packaging Scorecard. The retailer’s 60 000
impact that consumer trends are having on suppliers must provide substantial info about
packaging as well as how new technologies their packaging, and in so doing, are ranked
are taking packaging to places it has never against other such suppliers. It may not be long
before been. before local retailers initiate something similar.
According to John Gordon, director, Design
Going green Partnership Brandertising, the global food
Birds do it, bees do it. And now Wal-Mart is packaging industry is now worth US$100 billion
doing it. With the global focus on the a year and growing at a rate of 10 to 15 per
environment, and ways of preserving our cent each year. “Anything between 10 and 50 per
natural resources, the manufacturing and cent of the price of food today is for its packaging,” has the Europeans. “The green trend may not
packaging industries have come under fire. he says. He also refers to recent research have major consequence locally for some time.
‘Cradle-to-grave’ packaging (ie packaging that conducted in Europe, which found that UK From a manufacturer’s point of view, it requires a
ends up in rubbish dumps and landfills instead households produce the equivalent weight of lot of energy to make it happen,” says Maciek
of the recycling plant) is being booed by around 245 jumbo jets per week in packaging Michalski, head of design, Joe Public. “Brands are
consumers. Organisations are under pressure to waste. More than three million tonnes of the aware of it, but consumers aren’t pushing for it
make products and packaging in a ‘cradle- 26 million tonnes of household waste produced yet. They are more concerned with their health
to-cradle’ system, where the maximum value is annually comes from packaging. Meanwhile, and the ready-to-eat foods.” Look out for
extracted from existing materials, which in turn 150 million tonnes of packaging waste comes biodegradable materials, and soy or water-based
are recycled, re-used or biodegraded in an from industry and commerce each year. “These inks that will not damage the environment.
environment-friendly manner. The Sustainable figures are startling and the race is on to dimin- Petro-based chemicals will be shunned in favour
Packaging Coalition in the USA estimates that ish packaging to its utmost simplistic functional of corn and potato starch components. “Brands
worldwide, the packaging industry is valued at form. Yes, we most definitely will be following and stores will be jumping on the bandwagon,
around US$420 billion, and employs more than global trends in this regard,” says Gordon. but they aren’t explaining what biodegradable or
five million people. The Coalition acknowledges Locally, the green wave has not yet hit us as it recyclable means,” says Michalski. Some products
may promote their recycling processes, but there
are no recycling plants, so where does all the
recyclable packaging go? Brands will need to
address this holistically.
“All segments of the packaging industry,
especially food packaging, face environmental
issues. Yet packaging is integral to today’s
lifestyle. Nowhere would the loss of modern
packaging be more quickly felt than in the food
processing and distribution system. In
under-developed countries where packaging is
minimal or nonexistent, food losses of 30 to 50
per cent are not uncommon,” says Gordon.
Health kicks
With diabetes, hypertension and obesity
threatening developed populations, there is an
increasing focus on healthy living. “South Choices logo, consumers will be able to identify Wine in a box
Africans are definitely health conscious, more so their favourite compliant brands,” says Maharaj. Distell has launched a new range of
after all the scares we have had around tainted Whilst the local branch of this international boxed wines – Wine on the Move – with
foods,” says Michalski. Foundation is still in the process of registering as the aim of making its wines more
Healthy school lunches are another trend to a Section 21 company, local brands in the accessible (consumers find wine bottles
watch out for. “But there is a major duality Unilever and Knorr stables have expressed difficult to carry, open and preserve).
here,” says Michalski. “You have to interest. And the good news is that there is a The good news is that the Tetra Prisma
communicate the health benefits to moms, but local board of doctors and scientists who will be packaging is 100 per cent recyclable.
at the same time you have to market to kids.” managing the foundation’s local branch; they “Twenty-five Tetra Prisma packs, flat-
Local draft regulations on food labelling and will report to an independent international tened after consumption, take up the
advertising will change the way foodstuffs and board, which sees a local doctor representing same amount of room as one empty
beverages market themselves. News reports are South Africa. “This Foundation, and the Choices glass wine bottle. Hence a quarter less
indicating that foods that have been claiming logo and labelling, are credible on their own,” truck transporting waste, which means
nutritional value and essential health benefits says Maharaj. “From a marketing point of view, less carbon emissions into the
will have to change their packaging and with health and wellness the fastest growing environment,” says Shelley Ellse, brand
advertising to show that they are, in fact, not development, Distell.
essential to a healthy diet. If these regulations,
proposed by the Department of Health, are
passed, fruit juices, iced teas, sweet biscuits,
cakes, desserts, fast foods, savoury snacks and
soft drinks will be affected. This is great news
for the consumer. But will these foodstuffs
survive once they have been labelled the
‘baddies’? Marketing Mix will provide updates
on the regulations as they become available.
Choices International Foundation recently
promoted the ‘Choices’ front-of-pack labelling
system, which sets a scientific benchmark locally.
“In South Africa, there is no one set of labelling
criteria across different companies. There is also
no standard nutrient profiling. The Choices
system is the first to set nutrient benchmarks
that brands must comply to,” says Ruksha
Maharaj, Choices SA programme coordinator. It
will help consumers to make healthier choices,
especially because they make purchasing sector globally, brands who sign up will naturally Middle East called CHUE (Choose How U Eat).
decisions within a few seconds and need this have a better reputation amongst consumers. “We literally turned things inside out with the
info fast. Research has also shown that And they will innovate in line with the criteria.” packaging and had a lot of fun with it. Usually,
consumers often find current labelling systems most brands would cover their packaging on
confusing, and this system will address this. The It’s about what’s inside the outside with creative visuals or slogans
Choices system will be supported by a strong Marketers could be using packaging in a more indicating what is inside. Usually what is inside
marketing and educational campaign, which holistic way, says Gordon. “To touch on as many is a burger in a grease-stained interior – a burger
“
coffin.” They decided to play down the exterior
of the packaging and deliver the final brand
Story telling is important, because humans relate to punch on the interior. Hence, the burger clam,
once opened, literally became a ‘visual feast’.
this. The brand story should be on the front of the label Michalski believes we will start to see more of
and it should encourage the consumer to slow down this locally, especially because we have a large
”
‘ready-to-eat’ market. Look out for fast-food
and engage with the product. packaging that is more appealing and functional.
“Food tastes better when it’s eaten from well-
designed packaging. Sophisticated consumers
will see everyone from marketing executives at of the senses as possible to get the brand well will pay more if they get better packaging,” says
major brands, to dieticians and even the man represented on the shelf, good packaging is an Michalski. He adds that South Africa has the
on the street learning more about Choices, and all-round experience,” he says. potential to be a leader in the design of packaging
what it means for health and wellness. “And The Design Partnership was recently involved that addresses the needs of the ready-to-eat
because product brands are integrated with the in the development of a new brand in the market, especially amid the global focus on
simple packaging that allows for greater and lifespan of fresh produce, decreasing
portability of food and personal items. “The product loss in both the home and supermarket.”
packaging experience should be clean, protected, Tiny fractures in the packaging allow the
attractive, promise good flavour, usefulness, produce to manage its own atmosphere, and to
convenience and no worries about contamination. hibernate effectively. It is hoped that this new
These attributes will win consumers’ hearts,” packaging will reduce food waste.
says Gordon. “A bioactive paper has recently been developed
overseas which is attached to the food packaging
Long life on either the inside or the outside to indicate
Parallel to the concerns about the environment the substance’s lifespan or any other problems.
and our health, is the focus on food and product This strip of bioactive paper could be creatively
waste. “New research projects are underway in standard film mix, allowing produce to manage incorporated into the packaging as a visual food
the UK to extend the storage life of fresh the atmosphere within the packaging,” says lifespan monitor,” says Gordon.
produce by including natural additives in the Gordon. “This will greatly improve the quality
Packaging that talks…
New technologies could see packaging talking
Unwrapping South Africa’s ethical consumers to the consumer. Gordon points to overseas
Added Value has taken a closer look at South African consumers and ethical packaging, company MedivoxR, which has developed Rex
and has identified four major mindsets that are influencing the way consumers make the (disposable) Talking Bottle. This bottle plays
choices (see Marketing Mix, vol 25, issue 9/10 for a broader explanation; Ethical consumers back medication dosage information to visually
under the microscope). These are not mutually exclusive (consumers may show different impaired patients; the message is either
degrees of each), but there is usually a dominant mindset. This will usually determine pre-recorded by the pharmacists as they type in
whether their mindset is driven internally or externally. We examined how these mindsets label info or by patients themselves, by means
inform consumers’ choices when it comes to packaging. of the Rex Starter Kit (includes a special
Empathising: The main driver is the show of solidarity (making small differences in the recorder). The microelectronic technology in the
worlds of others). This is a strong mindset locally. These consumers want to feel proud, bottle allows only the user to record or change
empowered and engaged; they respond to fair trade produce and donating to charity, the prescription info. A button on the side of
so these should be made clear on packaging, without dominating branding. Also, the bottle replays the message. “Wouldn’t it be
educational messages should be included to help the shopper make the ‘right’ decision. cool if Smarties, for example, came in a container
Campaigns that involve the consumer work well (eg, the brand donates a portion of that started telling jokes when you opened it,
spend to charity). and warned you when you only had a few
Healthy Awakening: Choosing healthy for the good it does the individual, society in Smarties left?” says Gordon.
general and the environment. This is a relatively strong mindset locally (especially because
concerns over diseases like HIV are driving consumers to accept responsibility for their own Watch this space
health). These consumers want to feel pure, healthy and holistic, and respond to safe, Other trends to watch out for include clever
healthy alternatives, including organic or super foods. They will read labels and look for packaging (innovative designs or the use of
information about ingredients, key health benefits and customer care line details. Opt for non-traditional packaging materials). Although
clear packaging that shows off the ingredients. For mums, safety is a key concern as well as it may be the smaller brands who lead in this
something that’s interesting and exciting for their children. Artificial colours or over-styled trend, as they are more likely to experiment.
photography should be avoided. Do not over-claim or use pharmaceutical language. Sarita, a new alcoholic beverage, has taken its
Ethical Way of Living (EWOL): Choosing ethical as a way of life, so it informs everyday consumers’ needs to heart. Ring-pulls make
decisions and lifestyle. This is an emerging, very niche trend. These consumers want to feel these bottles easier to open, and are therefore
disciplined, involved and proactive. They will pay a premium for ethical products. ideal for women.
Recyclable packaging is key (especially if it educates the consumer and makes recycling Michalski predicts that we will see more use of
easier for them, through, say, partnering with recycling centres). The full packaging chain locally made packaging materials for import items,
must be considered. Sincerity in talking about less packaging is key, and don’t as this reduces the cost to the environment.
‘greenwash’. Concentrated formulations and refills are great options. Charge a premium Single servings could also find firm footing in
and be aware of the power of this mindset in terms of word of mouth. developing markets; look out for brands
Ethical badging: Choosing ethical because of the image it projects of being trendy and experimenting with this, says Michalski.
noble. This mindset is strong locally, especially among those who have succeeded and And then, look out for design that brings
want to be seen to be ‘in with the leading-edge tribes’. This consumer wants to feel savvy nostalgia back into the mix. “Story telling is
and stylish and like they are keeping up with trends. Opt for high quality, premium important, because humans relate to this. The
packaging that reflects how the customer wants to be seen. Celebrity endorsements are brand story should be on the front of the label
ideal; secondary wrapping (the shopping bag) is also key in showing others that they have and it should encourage the consumer to slow
shopped ‘premium ethical’. Display appeal is also relevant (it must look good in their down and engage with the product,” says
homes), as is innovative packaging. On-pack promos are seen as tacky. Brands must be Michalski. Customised designs (for example,
widely acknowledged to stand for something, as this consumer gives publicly, not privately. Christmas designs) are another great option.
“
10 companies never fully follow through on employees, channel partners and customers.
their strategies. There are several applications on the market –
An increasingly useful but you’ll need to choose one carefully to make
So how do you keep your incentive tool for collecting and sure that it does what it says. Rule of thumb:
programme on track? look for an application that offers the following
Start with these four practices and you’re off on collating diagnostic capabilities:
the correct footing: Needs and impact analysis, and assessment
1. Practise organisational alignment
information is a centralised, tools
All operations, behaviours and activities, no online strategic diagnostic Flexibility to monitor and measure diverse
matter who’s doing them or when, should be criteria
aligned to support your vision, mission and
system that monitors and The ability to customise surveys that fit with
values. That way you know that everything that reports on performance, your organisation
happens in your organisation helps drive your Demographic filtering
programme strategy. satisfaction, behaviour, Benchmark/target scores for comparison
2. Define your performance measures and ongoing performance management
systems and trends across
Your programme should be measuring your Real-time reporting
employee and company performance against your employees, channel Controlled login to ensure all information is
”
Effectively managing a
brand through a call centre
In South Africa’s growing economy, where Marketers can in turn assist agents to
there is still a high dependence on voice understand the profile and demographics of
communication, call centres are vital to customers, what their interests and needs are
consumers to obtain information and support and, if data provides it, what drives their
with service queries, make bookings and also to response to the company’s brands. Marketers
facilitate financial transactions and manage should work with agents to more creatively tap
credit. Yet, according to local dipstick surveys, it into the opportunities that call centres present
is perceived that call centres (whether in or to communicate a stronger positioning about
outbound) do not render a satisfactory and company to the customer during the
experience. What is more important to engagement over the telephone.
acknowledge is that customers associate a Call centres are also an essential vehicle to
negative service experience with a company’s launch a product to market and run promotions
brand rather than with the call or contact for clients, thereby providing a conduit to
centre. Research confirms that poor customer revenue streams for companies. In this regard, it
satisfaction is the most instantly determining is vital for marketing and, indeed, sales, to work
factor influencing brand reputation today. cohesively with the call centre to monitor both
“
In a globally competitive market, where price statistics and customer feedback. Marketers are
and availability of goods has somewhat blurred sometimes guilty of not fully briefing call centre
corporate differentiation, customer service Likewise, hellopeter.com managers about a new campaign and providing
remains one of the few areas where a company is a service monitor such information at short notice, impeding call
can establish a competitive advantage and centre managers’ ability to adequately brief their
achieve differentiation for its product or service website that publishes teams on new campaigns and how these relate
in the mind of the customer. Given the role to the overall market position of the company’s
that call centres play in the customer service
customers’ ratings and brand. This can be challenging for both
supply chain, it is no longer adequate to ensure comments on companies marketers and call centres alike, creating
that service is readily accessible, consistent and challenges for agents to deliver effectively which
fulfils a basic level of response to queries from
and their poor or good may affect campaign results.
customers. service, including that of Unfortunately, all too often customer service
”
Companies must take the necessary measures does not meet customer needs, and therefore
to ensure that their call centres are used as a call centres. the brand that a company may have spent a
vehicle to positively and consistently meet large amount of marketing budget and
customers’ needs, while also delivering their time on to establish a certain market position,
desired brand proposition to achieve good service, including that of call centres. This will fall short of expectations and the
differentiation in the market, time and time direct feedback certainly puts companies in the company’s credibility can so easily be eroded
again. A call centre can have a significant impact picture about how customers regard their service. as a result.
on customer loyalty, based purely on service quality. Marketers should play an integral role by As shared in the previous column, a higher
Reading a regular survey conducted by Ask working together with the call centre to deter- level of collaboration between marketing
Africa published on www.finweek.co.za, which mine how a company’s brand is communicated departments and the call centre would build a
rates companies according to the customer service to the customer, and also what feedback the stronger foundation to add value to customers
provided by their call centres, the customer’s customer is providing about the company’s and help companies become better informed
experience, impacts on their satisfaction with a products and services that can assist marketing about customer needs and expectations and
brand. Time taken to answer a call, ability to to respond to the market more appropriately. thereby market their brand more intuitively.
understand and answer a query, knowledge of Irrespective of whether a call centre is captive or
the product or service, resolution of the query and outsourced, it should be regarded as an
courtesy of agent are rated as the most important essential barometer that provides marketers Nicci Columbine
factors that influence callers’ satisfaction. with early warning signals about service managing director
Likewise, hellopeter.com is a service monitor complaints, which can be tackled directly with Columbine Communications
website that publishes customers’ ratings and customers before they become issues and (011) 880 8137
comments on companies and their poor or impact negatively on a company’s reputation. info@columbine.co.za
The workshop will focus on best practices across the full spectrum of
marketing options and activities relating to the retail environment
Building your Brand in a Retail World Enhancing Customer Response through Digital
Sue Evered, Strategy Planner for Saatchi & Saatchi, will focus on the Retail Media
marketing discipline developed by Saatchi & Saatchi to deliver Roelf Venter, Marketing Director of Spar, will discuss his experiences
sustainable results; she will draw from their international experiences with the first comprehensive retail digital network installed in SA.
and relate this to the SA environment. Roelf will report on the results and the lessons learnt to date.
His digital partner Mike Bosman, CEO of One Digital Media, will
How to Select Alternative Media demonstrate some innovative content applications to stimulate
Geoff Whyte, Marketing Director of Cadbury’s, has developed a shopper response.
methodology to select and weight alternative media and to integrate
into the brand communication strategy. Geoff will show you Best Practices in Digital Signage Technology
examples of some really clever communications. The technology underlying digital signage is crucial to the success
of an investment into a retail digital network. In an environment
The Best of In-store Marketing populated by a multitude of technology vendors, what are the key
Lucien D’Avice, MD of Barrows, will explain how to transform the evaluation criteria that retail network builders should keep topmost in
store into a measured medium, and based on the latest MARI result, their mind when selecting a technology? What are the best practices
will explain how to use insights for category plans, and how to of a sound technology driving a digital retail network? How do retail
develop flexible and effective platform strategies to achieve maximum digital signage business models intertwine with technology models?
retail results. He will also provide specific examples of successful Chander Nijhon, Head of the Enterprise Division at Apple IMC,
POS promotions. Southern Africa will take us through this.
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Mobile
marketing
The cellphone is perhaps the most personal, 2007 the proportion was 24 per cent (AMPS
private gadget around (aside from say, a 2003, 2007). This makes the cellphone the most
pacemaker), and it rarely leaves your pocket or powerful personal digital medium around, with
your handbag. And yet, it is equipped with a marketing potential that is astounding.
myriad of media and communication technologies, “Cellphone marketing is the next big wave. I
making it a very powerful media device. “The think it will be bigger than Internet marketing
cellphone was one of the first electronic fashion and that it will have a similar percentage of use
“
as other digital media have in other countries
(about five per cent),” says Tim Legg, CEO,
Locally, brands must get involved in this now Opera Interactive; marketing director Edward
Wicks, says that while hit rates on mobile ads
and try it. It’s simple now, but it will become
”
remain fairly low, it is high when compared with
more and more complex. Antonio Petra, the online environment, Locally, estimates place
the worth of cellphone marketing at anywhere
Action Ambro’s. between R1 billion and R2 billion. On a global
scale, advertising spend in this sector is set to
items, which is what drives the majority of increase from the current US$1 billion a year to
consumers to have the latest and greatest $8 billion in 2011 (emarketer.com, November
handsets,” says Antonio Petra, digital director, 2007). “We believe that by 2011, the mobile
Action Ambro’s. media market will be at four per cent of ad
Relative to other countries, local cellphone spend. At this rate, it won’t cannibalise
penetration is high, with experts placing it at traditional media, but it will still be in the
around 90 per cent. Eighty20’s Fact a Day billions,” says Rick Joubert, executive head,
reports have indicated that in 2003, 60 per cent Vodacom Mobile.
of households did not have a cellphone. In Russell Atkins, managing director, Thumbtribe
Mobile Solutions, says that South Africa has just but the technology is there,” says Legg.
over 40 million subscribers, with an active So a consumer can view an ad, and use their
installed handset base of just over 30 million. cellphone to access a mobile site or Internet-like
According to Chris Rolfe, CEO, and Andrew WAP portal instantly, where they will find more
Cardoza, CTO, Mobilitrix, the number of cellphone info about the product or service and even
users is set to grow by 15 per cent over the next experience branded content; they can then
few years. respond to a call to action, by booking a test
Cellphone marketing offers marketers great drive via SMS, for example, or clicking to
reach. “It overcomes many of the hurdles that redeem a discount voucher. Consumers can also
we are presented with in South Africa, such as register (and give you their details in the
lack of fixed address and low Internet penetration,” process) and opt in to receive additional info
says Petra. He goes on to say that the cellphone or content. “Brands can give value back to
is the ideal tool for reaching the growing consumers through ringtones, wallpapers and
middle class, and equipping them with digital more products and services. Fifty per cent of
connections. And, of course, it delivers access cellphones in the market are enabled for this
to a youth market that is not lured by media. That equates to 15 million phones,”
traditional media. says Legg.
Why are marketers still hesitant about this Cellphone technology allows for location-
medium? Petra has found that many clients still based segmentation, efficient targeting and
don’t really understand the medium and the filtering. “Mobile media has the potential to be
plethora of tools and options that it delivers. highly targeted, not just in terms of
“I think the greatest hurdle for advertising demographics, but also in terms of time and
agencies is that of perception. When I present location,” says Atkins. After all, as Joubert
mobile advertising products and opportunities, points out, each cellphone number is unique
I often find that the clients look at them from and allows for individual tracking. Increasingly,
their own context and judge them as having the networks and ad services are using this as a
little or no value. The primary fault with this
perception is that they are not the primary users of
these products,” he says. There is no blueprint
for how cellphone marketing works, says Legg. Location-based segmentation
“As usual, people are scared to move to a Antonio Petra, digital director, Action Ambro’s, argues that location-based segmentation
platform that is not very well understood and/or is still under exploited; while there are some products and services which make use of
‘tangible’. When you are advertising through a the technology, there are still glitches which need to be ironed out. He points to the
mobile platform, you can’t drive down the Socialite platform in the US, which used location-based segmentation to send its
highway and see your billboards on the side of members information about happenings in their surrounds, but did not allow
the road, so your initial feeling is that the members to select what type of content they received, so they received messages that
marketing has been ‘lost’. Only when the hits were irrelevant.
start arriving, is it very visible just how effective Locally, Vodacom has launched The Grid, a location-based blogging service
it is,” says Philip Belamant, managing director, which is free (ad funded). Users upload content to The Grid (video, pics or text),
PBel Mobile Gaming. where it is geo-tagged and then shared with a private network of users who are
So what exactly is on offer to marketers? The interested in events and info relating to that particular location. “We have launched it
means of communicating to cellphone has not to the universities and will be rolling it out nationally,” says Rick Joubert, executive
changed much (SMS, MMS and Bluetooth head, Vodacom Mobile.
technology is not new). But cellphones have
evolved and are now capable of carrying
hyperlinks that take the user directly to a means to profile their entire subscriber base in
website or portal; or links that allow them to order to deliver ever better targeting and
click-to-call or click-to-reply. “As a portable segmentation and to track call patterns, for
medium the cellphone is an ideal bridge example. “It’s really clever. Other media can’t do
between digital and physical worlds – allowing this,” says Joubert. He points to other options
consumers to receive a brand’s message and such as storyboarding (where a series of ads are
then act on impulse at a point of purchase and displayed in a sequence), handset targeting and
in a very localised manner,” says Atkins. even context-relevant targeting.
And then there is the delivery of bar codes Further benefit to marketers is that cellphone
and vouchers, which will change retail marketing marketing allows for time targeting and
forever. “Stores still need to update their frequency cutting, which limits the number of
point-of-sale systems to accept mobile vouchers, times that each subscriber will view an ad
message. Ensuring that your messages don’t create new communities around new niches. In
wake your target consumer at 3am is becoming fact, Facebook announced recently that it has
increasingly important, not only from a branding launched Facebook for Mobile Operators, which
point of view, but also because consumer is designed to make the site’s social networking
protection legislation is calling for more responsible applications work better on cellphones.
communications. “Don’t abuse the ‘always on’ Operators are given the set of technical
opportunity. Make sure you reach people at the specifications which resolve usage glitches on
right time and in a way that is relevant to cellphones. Facebook Mobile (which until now
them,” says Atkins. was the platform’s unsupported mobile site) has
6 million users; it is expected that Facebook for
Mobile Operators will grow this mobile user
Please Call Me base. As yet, there is no advertising on this site,
The local Please Call Me services are powerful tools for reaching a large base of though operators will generate revenues when
customers. “I don’t think many clients realise how many people the Please Call subscribers access Facebook.
Messages reach every day. There are 18-20 million messages sent daily across all the Mobile gaming is a lesser exploited option
networks,” says Antonio Petra, digital director, Action Ambro’s. Recently, an insurance which could fast gain ground. PBel Mobile
company used this platform, at a cost of R11 000; the campaign raised R139 million Gaming launched recently in South Africa. “We
worth of leads (all of them valuable because the company had charged a premium have been running for one week, and already
reply SMS fee of R2.50, which acted as a filter). Vodacom’s targeting may soon enable have 300 users. We are getting between 700
marketers to tailor the Please Call Me messages according to demographics. and 800 transactions each day,” says Belamant.
Users register and download an application
which allows them to download games, upload
Instant feedback and measurability mean their scores and interact with the gaming
that marketers will know straight away if their website where they post messages for fellow
campaign is not hitting the mark. “The cellphone gamers. Gaming takes place off line, with prizes
is a real-time response mechanism,” says Joubert. for top-scorers. So what’s in it for marketers?
When creating a mobile campaign, “Every time a player connects to our server, it’s
entertainment is key – the modern cellphone is an opportunity for us to stream an ad to their
designed for this, after all. Consider Vodafone phone,” explains Belamant. These can be text
Live! and its huge successes, especially in ads or full-screen splash ads (which remain
targeting consumers aged 18 to 34. “In terms on-screen until the game has loaded – the
of value for money, this site has the best real gamer can’t ignore them the way they might
estate around at the moment,” says Petra. ignore an online banner ad).
Other entertainment media worth exploring Custom development is also available where
include music, downloadable content, gaming marketers can create a form within the
and social networking or messaging. “Several application, which allows the gamer to enter
brands have taken advantage of the potential of their details and, say, click to book a test drive;
sponsored music – Coke and Pepsi as two their enquiry is immediately forwarded directly
examples, and others have distributed advertising to the advertiser. Every time the gamer clicks
within mobile games,” says Atkins. Marketers through to a new screen or page, the ad
should keep in mind that, while the cellphone is changes. According to Belamant, the trick is to
a very personal device, it is a social device. have a short and sweet ad message that won’t
“Brands need to find ways to enter this be ignored. The system allows for segmentation
conversation in a relevant and compelling way,” and targeting, so marketers can be selective
says Atkins. about who sees their ads. Reporting is also
Some brands are sponsoring mobile chat available, so campaigns can be tracked and
environments or events, for example. “This is measured. Belamant estimates that currently,
tricky, so brands need to be careful to involve half of the gamers are females; general gaming
themselves in a relevant way – negative word of trends usually indicate a 70 per cent male bias.
mouth spreads more quickly than positive,” says “Our core target audience is between the ages
Atkins. Consider MXit, which has set a of 15 and 23 years,” he says. Brands such as
phenomenal standard, simply because it has cellphones, electronics and other downloadable
leveraged the need for a cheap messaging content services would do well to get involved
service. The platform boasts around six million in this medium; giveaways tend to incentivise
registered users, sending about 200 million higher click-through rates.
messages a day. Experts are predicting that Mobile television and video are seeing major
other such offerings will enter the market and growth in the US; eight million mobile users
Spam and Scam “It will be a CPM model until the community
Spam and scams continue to be an issue, with a handful of unscrupulous players out grows to 30 000 USERS and then we can offer
to make a quick buck. According to Tim Legg, CEO, Opera Interactive, legislation such click-model pricing,” says Herbert.
as the Consumer Affairs Act are making it more difficult for marketers to charge Cellphone marketing is highly effective as part
people for entry into competitions. “Some people will use SMS to enter competitions of an integrated campaign, where it can really
to make money, sometimes with no prizes at all. My advice to any client who wants take ATL and BTL further. “If your SMS campaign
to use this mechanism is to use it intelligently. It must be totally transparent,” says is a stand alone campaign, it must be brilliant.
Antonio Petra, digital director, Action Ambro’s. Advertisers who try to trick consumers Via cellphone, you have a very short time in
into divulging their personal info or grab these details from return communications which to engage the consumer with your
will be rejected, says Andrew Cardoza, CTO, Mobilitrix. marketing message,” says Petra. Also, remember
And while the Electronic Communications Act and the WASPA guidelines are in place, that this environment is all about impulse
these are not exhaustive; the industry must self-police, says Petra. Quite simply, this behaviour and instant gratification, says Atkins.
technology is developing so rapidly that legislation just cannot keep up. Cellphone marketing is set to grow
exponentially this year, not only in South Africa,
but across the African continent (where it is
and then target users according to their age, estimated mobile networks will be extended,
location, gender and content interest levels, thanks to investments of around US$50 billion).
with useful advertising messages. Adverts “Some brands are already on board and are
will focus around coupons, loyalty and doing amazing things,” says Joubert. “All are
special discount options,” he says. The coming back after doing a first, experimental
platform will also benefit from the viral campaign with bigger and bigger budgets, so
aspect (users can refer friends or pass on we know it’s working.” Much of Vodacom’s
the alerts via email forwarding. Ad metrics inventory is sold out, which is a good sign that
are easily tracked and it is hoped that the cellphone marketing is taking off.
service will add Google AdSense for The future of cellphone marketing will see
Mobile Text Ads locally soon (the search greater use of the various platforms and
engine giant announced in September products, as brands seek to snuggle up with the
2007 that it had made AdSense for consumer on their terms. Petra looks ahead to
Mobile available, created specifically for the third phase of mobile marketing, in which
mobile browsers). “We suspect that free content and services will be delivered to
sport will be the biggest driver for consumers in exchange for ad views. Blyk, an ad
downloads in 2008,” says Herbert. It is funded mobile operator in Europe, is one much
expected that advertisers will pay publicised example of this model, which offers
between R5 000 and R50 000 for users free airtime minutes each month, on
advertising on the platform, depending condition that the user views a certain number
on the size of the user base, plus of advertising messages. Petra believes this
other channel sponsorship options. model will find firm support locally, where some
markets don’t have the money to buy airtime.
He also believes that, moving forward, we
“
can expect increased focus on topics that
include restricting marketing to children via
Savvy marketers have moved beyond interruptive cellphones (asking for an ID number, for
communication and now offer consumers more ways to example, in the registration process) as well as
more refined permission-based campaigns,
interact with and contribute to the brand experience – especially as consumers become more
aware of their right to privacy and protection.
allowing consumers to submit their own brand experiences,
”
“Response rates for untargeted push campaigns
or even produce advertising on behalf of brands. are dismal, and they are potentially damaging
from a brand reputation perspective,”
Russell Atkins, Thumbtribe Mobile Solutions says Atkins.
Marketers can no longer afford to shuffle
their feet on this one – the time to learn and to
implement cellphone campaigns is now.
“Locally, brands must get involved in this now
and try it. It’s simple now, but it will become
more and more complex,” says Petra.
“
radio and so on) allowed us to target control and where brands are accepted on the
consumers more precisely. But this seemed to be basis of a personal experience. So no matter
the limit in reaching the consumer closer to Interactivity has what we tell them through bell ringing we have
home, while for those who could afford it (the to make the brand experience a more rewarding
mass market) a national brand campaign was
changed the nature of and meaningful one to gain loyalty – in essence
still the weapon of choice for mass exposure. In marketing and marketers more experiential and even tactile.
short, it was a lot easier to reach consumers Interactivity has changed the nature of
who reacted to this heavyweight communications
must now reach beyond marketing and marketers must now reach
approach by buying the most heavily advertised their traditional roles of beyond their traditional roles of raising awareness.
”
products and services. Simple, really. They must drive traffic into an extended world
So we were ill prepared, to say the least, in raising awareness. of intimate interaction in sales and customer
anticipating the full effect of the explosion of relations. This means that the advent of ’permission‘
new media options on consumers and their marketing will become as important in some
need for information. We responded by delivering dialogues as general bell ringing in others.
even more messages across ever more media to
even more audiences, creating a deafening
cacophony of marketing hype. Was this the Marc Spriestersbach
beginning of the end of mass marketing? managing director
In part, yes. This emerging media is shattering Publicis Johannesburg
behaviourist marketing tenets and proving that (011) 519 1800
businesses are not in control of the strings mspries@publicis.co.za
He points out that community papers and mag- Community magazine readership (ABC Jul-Sept 2007)
azines allow large and small advertisers to put
getit zone Net distribution
their hooks out into the areas where people
have access to their stores, products or services.
“For small businesses, the local newspaper is
ideal. It has no advertising wastage as it is delivered
to their immediate catchment area and, of
course, it’s affordable because they don’t have
to use a national or regional media type that
extends way beyond the borders of their opera-
tions,” says Bowles. Meanwhile, Erfort says that
the knock and-drop model used by community
media is in line with consumer needs. “New
research shows that readers are increasingly
reluctant to ‘go and get news’. They want their MyWeek zone Net distribution
news to come to them.”
Moving forward, she warns, the community
titles will need to be on their guard: “With so
many media competing for audience attention,
the successful community titles will be those
that remember they cannot be everything to
everyone.” She believes that the increased
competition among this media will see the
newspapers constantly seeking ways to improve
their look and feel as well as their content mix.
Likewise, she says, we should expect a focus on
growing youth readership (a trend reflected
globally).
Where community newspapers will see
growth and development is in niche communities,
such as the gay market (Independent
Newspapers launched lifestyle and entertainment
newspaper the Pink Tongue, last year in Cape
Town) – and among the burgeoning township
and rural areas (where Bowles says the NAB
titles are seeing great growth).
Look out for the expansion of these media
online and on mobile; while it may be early
days, publishers are already making plans in
these spaces. “To not have an online or mobile
presence, is to not be part of the 21st century,”
says Erfort. “At the same time, we have to be
aware of the rapidly changing technological
trends, and be sure to choose our online/mobile
vehicle very carefully to ensure sustainability
and effective integration with the product
that brings in the real revenue – the printed
newspaper.” After all, community titles will be
under great pressure to provide content free
of charge.
Magazines
The golden children of community media,
magazines such as getit and MyWeek will continue
to grow, with publishers emphasising the power
of these glossy titles. “In many cases, when a
local personality is put on the cover they
become overnight celebrities,” says Bowles. He Community radio listening top 10 (SAARF RAMS, Feb 2007 and 2008)
adds that because the mags include locally Average day
Station Feb 07 (‘000) Feb 08 (‘000)
relevant content, readership is growing and
attracting advertising. “I think we would be
naïve to think that the current state of our
macroeconomic environment is not going to
impact us. It remains to be seen how this will
balance out and how many brands will be left
standing at the end of all this,” says Amanda
Brinkmann, operations manager, MyWeek. She
believes that local retailers will continue to be a
cornerstone of their revenue stream. “This category
will grow slowly but steadily over the next three
to five years. I don’t believe that we’ll see a
proliferation of titles in the short term, but
rather an increase in the size of zones and
resultant readership base,” says Brinkmann. She Community radio listening top 10 (SAARF RAMS, Feb 2007 and 2008)
also points to online social communities as a Past 7 days
natural extension of the mags; these will provide Station
Feb 07 (‘000) Feb 07 (‘000)
new revenue streams and readership growth.
While readership figures and demographics
are yet to be researched, feedback is positive,
especially for those brands that are trying to
target women: “From our feedback at getit,
there tends to be a skew toward females, but
only slightly,” says Bowles.
MyWeek is represented in 26 zones across the
country and has a print order of 650 000; these
are delivered to LSM 8-10 households twice a
month. Two new zones will be added by end
March, in Rustenburg and Nelspruit/White River;
viability studies will determine which two to four
zones will be added in the next fiscal year.
Brinkmann says that ad support is showing TV on channel 360, while Soweto residents are Radio
steady growth month on month. “Bloemfontein able to tune in via UHF on a normal terrestrial According to Franklin Huizies, chief executive
is our most successful zone in terms of volume signal. “So far the economic situation has not officer, National Community Radio Forum
of advertising growth and resultant growth in affected advertising on Soweto TV; in fact the (NCRF), there are about 120 licensed
the size of the magazine. Bloemfontein runs rates are so value packed we may in fact see community stations locally. “Over the past
48 pages on average and often grows to 64 advertisers spend more money on an innovative decade, the community radio sector has proven
pages,” says Brinkmann. Specific quantitative channel like Soweto TV,” says Botha. itself able to maintain and grow its audiences.
and qualitative research results will be ready for Audience and viewership research will be The reason for this is that they cater for the
release in April 2008. carried out by Target Group Index and will be information needs of local communities through
www.myweek.co.za is due to undergo a bit available from July 2008, says Botha. Meanwhile, various means of interactive and creative
of a makeover in the next few months, and advertisers can expect to pay R4 660 for a programming ideas,” he says. As for the impact
according to Brinkmann, certain areas of the 30-second spot until the rate cards are reviewed of economic pressures, Huizies added that the
website will be monetised, and will provide and new ones published. “The content evolves on stations are seeing the impact of growing
added value for advertisers. CSI programmes a daily basis and is presently undergoing a facelift,” operational expenditures.
will also be initiated via the site. says Botha. He adds that the programmes that There are 6.2 million community radio
have proved most popular will be extended, listeners, which means that one in five people
TV while newer, shorter programmes will be added. listens to community radio; this is 20 per
Soweto TV launched last year under ICASA Soweto TV is working on improving its online cent of the total radio audience. “The profile
licence and has not looked back. “Viewer offering (www.sowetotv.org) and will soon offer of these listeners is predominantly in the
response has been positive,” says the station’s more detailed station and programming info. middle and upper LSM ranges,” says Huizies.
advertising sales manager, Deon Botha. “The online component of Soweto TV is under He adds that the NCRF aims to build the
“Viewers from as far afield as KwaZulu-Natal, development and will offer viewers who have image of the sector through capacity-
Limpopo Province and the Eastern Cape have online access a more informative view into the building projects and engagements with
been calling in.” DStv viewers can catch Soweto world of Soweto TV,” says Botha. strategic partners.
Digital marketing is hot, innovation is constant and to optimise response it is very important to appreciate current marketing best practices.
The speakers understand the South African market; they are at the leading edge, working with major corporates frequently, and are
response focused.
Online Media
Elan Lohmann, head of Social Networking/Media Services at 24.Com, will guide you through optimising online marketing spend best
practices, covering:
Marketing 2.0
Online media selection
Smart ways to boost online response/ Going viral in the digital space
Social networking/social media/Facebook widgets etc
How to initiate conversations with your market, build relationships and create trust.
Mobile as a Medium
Rick Joubert, Executive Head for Vodacom (also responsible for the recently launched Vodacom Mobile Advertising service) will discuss:
Why Mobile is not merely sub-set of “digital” media and could be the ultimate interactive medium.
Mobile as a medium has arrived and is no longer just a great idea.
Pricing
A morning workshop
R1 950 per delegate
Three or more R1 750 per delegate (plus VAT)
Of course the hot topic is load shedding A. Acknowledge all calls, e-mails and messages
and the lack of power. And by the time this within 24 hours
article is published, trust me it will still be the B. Behave honestly with your delivery and serv-
conversation topic of the day! The amazing ice terms
thing about South Africans is just how adapt- Over promise and you will lose out in the
We are done with raging and now we are existing customers at all times
getting on with living. Power outages, whether C. Connecting with your new customers
planned or unexpected, are here to stay. So let’s Consolidate the data you have on them; start
get practical and see who can offer true the moment they call you
relationship marketing over the next few years, Use as many channels as possible
so they can build a loyal customer base. I am Call centres (employ an extra person to
dining out on all the e-mails, texts, cartoons, operate the phones)
mpegs, jpegs etc that are circulating; even our E-mail
Fax
cost is exorbitant, not to mention the cost of to start your database, Excel and Access will
fuel, and the noise is just awful, impacting on do very nicely
our environment. Other colleagues, friends and Information is the foundation of successful
“
neighbours are looking into solar heating, which and lasting customer relationships. It drives
is, of course, a far better long-term solution for Z. Zealous, but not superior insight, which becomes the platform
us all. Many of us are waiting patiently for for building competitive advantage and
rechargeable lamps and have installed back-up
overzealous; treat your results.
batteries on our alarms and gates. customers warmly; pursue Basic demographic information, including
Phone around for suppliers and you are likely mobile number and email address
to be kept on hold for at least 20 minutes; call their needs earnestly and Size of household or business
”
backs don’t happen; responses are ‘e-mail me Limited but useful lifestyle information
arduously!
and I will get back to you in five days’ time – if E. Electronic communication is so easy
you are lucky!’ So if you can’t start one of these Set up basic e-mail templates and send out
relationships with your customers on a good monthly updates, handy hints (maintenance
footing, then you will create the prisoner rela- of the generator, how to maximise the use of
tionship (and put the airline miles programmes your solar panels etc)
to shame). F. Following up after the sale
Here’s the ABC to CRM for all those involved Ensure your new customers are satisfied
customers will prove to be far more profitable R. Remember the customer is king at all times
than advertising for new customers S. Service. Service. Service
G. Generators are here to stay so work with If you can’t service all your customers
your customers so they understand how they properly than get out of the business now!
operate, what the fuel issues could be and how T. Take advantage of the benefits of building a
to maintain the generator loyal relationship
H. Happy customers; happy businesses; happy Customers have emotional equity in
I. Insist on signed quotations with full details to They look to you to meet their needs and
ensure you don’t get caught with a large debt solve their problems
of installation and sales They ask you for guidance
As a business you are entitled to be paid They discuss your offering not your
stock if you don’t intend doing so The emotional equity translates into
“
If you fall behind, the newcomer in your
”
customers may appear angry with you for little
reason; they are probably suffering from fear of
years, so they can build a loyal customer base.
darkness and fear of crime, and if they feel they
don’t get instant gratification from you, may
turn their anger towards you; be patient and U. Understanding your customers’ needs by tak-
kind, and your potential customers will turn into ing a few extra minutes to listen to them will
your best activist save you all time and money in the long run!
M. Money is to be made off consumers who are V. Viral marketing is your best friend
making a grudge purchase – security companies Use your existing customers to tell their
in South Africa are typical of this; you are entitled friends about you; ask them for
to make a profit, but don’t rip people off. introductions in the neighbourhood, their
N. New ways of life is always hard to adapt to, office building etc
but South Africans do adapt W. Word of mouth can also be your worst
O. Offer options to potential customers enemy
Assess their real needs, their household or One happy customer tells 10 people, one
with them and that they opt in to as many with ease; if you don’t, your competitors will
options as possible be first in the market
Mail Z. Zealous, but not overzealous; treat your cus-
E-mail tomers warmly; pursue their needs earnestly and
Mobile arduously!
Telephone
Word of
mouth
marketing
report
back
The Word of Mouth Marketing workshop held The Diesel Heidies campaign, for the launch Everybody is an influencer, but you need to
in November2007, brought together local and of the new underwear range, exploited reality find those of greatest influence (ie whoever is
international gurus to help marketers get a grip online. Two women filmed, photographed and relevant and credible to your market)
on word of mouth marketing. Speakers included blogged for five days about their adventures You have to have a good product because
Steve Barton, one of the founding members of and exploits in a hotel room, where they were this is where it starts and ends. You also have
the Word of Mouth Institute in the UK; Hendrik hiding out after having stolen the new range of to treat every person who engages with your
van Vuuren, director of Millward Brown SA; Diesel underwear. The website received millions brand like a VIP. Provide people with your
Jason Stewart, brand manager, Instant Seed of hits, with fans sending in their own videos, product and let them experience it
Division, Instant Grass; Mike Stopforth, CEO, pics and messages. This brand now has major Trust is integral (traditional advertising carries
Cerebra; Neil Higgs, director, TNS Research buzz and talkability, and Diesel has achieved a sense of manipulation).
Surveys; and Alan Kent, head of technology at even more cult status as a result. The right snowflakes become avalanches; you
Saatchi & Saatchi. The youth is a particularly word of mouth need to have the right people, in the right
Media fragmentation and mistrust of savvy market. Stewart advises marketers to places, with the right messages. People are
traditional marketing messages sees consumers understand the youth mindset as highly always after social knowledge. They want to
turning to friends and peers for information suspicious of marketing messages. “They don’t know about a new product or trend before
about brands. Barton refers to various research care about you or your brand. You need to add their peers – leverage this.
figures which show that consumers today trust value directly to them,” he says. The youth tribe Word of mouth marketing is perhaps most
advertising and company marketing less, and is a source of opinion, influence and identity for prolific online, where blogs, vlogs and user
their friends more, when it comes to seeking youth. To influence the youth, you need to reviews have allowed the average consumer to
out advice on new product purchases. influence the tribe leaders. “Traditional ads share their opinions and experiences with the
The most successful brands in the future will create awareness, but word of mouth market- world. Stopforth explains that brands that
be those that create powerful, positive word ing adds credibility,” he says. ignore the conversations that people are having
of mouth messages today, and then work to He outlines the principles of word-of-mouth about them are going to lose out. It is becom-
manage this in the right way. Kent points to marketing: ing imperative for brands to take note of these
campaigns such as the Lynx Jet (Axe Jet locally), It’s fluid and it’s happening everywhere conversations and add their voice to them. “The
the MTV Game Killers and the Diesel Heidies People love the unofficial story biggest companies still believe that they cannot
campaigns as examples of brand activities that The story needs to be sticky; it needs to have interface with customers as partners,” says
really win with consumers. conversational currency, if it is to have value Stopforth. And yet blogs are allowing this to
happen, with sometimes incredible results for you,” says Van Vuuren.
the brands that do it right. Brands that are talked about and that
He usually suggests to companies who have change trends have buzz. Nappies have the
never ventured into the blogosphere to initiate highest spontaneous talkability, for example,
and manage online reputation management simply because mothers will share all kinds of
programmes instead of using blogs, because conversations around them without being
these can become difficult to manage. prompted to do so. “A true advocate has no
Reputation management allows a company or affiliation to the brand, but endorses it out of its
brand to respond timeously and appropriately own right,” says Van Vuuren. Positive word of
to any mention by consumers, thereby creating mouth is critical to brand success. It can be
a more honest and open conversation. And if influenced by the marketer. But the most
consumers are criticising your brand, perhaps powerful tool is consistently exceeding customer
it’s time to listen and make the changes they expectations.
are asking for.
“
He outlines a few important guidelines:
Be authentic
”
Understand the network
Shopper-centric
Putting the shopper at the centre point means
understanding their needs, language and point Retailing has not changed as rapidly as Through extensive qualitative and quantitative
of view. Shoppers are now making lots of small shopping habits have changed in the new research we have idendified 12 basic types of
trips instead of fewer, bigger trips with some millennium. But, we are not so much behind the shopping mission divided into planned and
people making more than 40 shopping trips in trend as simply not capitalising on the opportunities unplanned, with the percentage of trips shown
a month. This does not mean that shoppers that are being presented to optimise our business. on the left.
have suddenly fallen in love with shopping – on You cannot expect to sell your brand every
the contrary, they begrudge the time it takes Shopping mission time a shopper comes into the store. Sometimes
but they are trying to be more efficient. Each time shoppers are prompted to go on a they just ‘drop in’ for an emergency item that
Shoppers are balancing their time against how shopping trip, a different consumption occasion they need, at other times they come in and out
efficiently they can acquire the brands and prod- or different need motivates the trip. So their quite quickly to buy specific daily fresh produce
ucts they need. To do this they shop more stores, whole approach to the shopping trip changes; or meal requirements. Other times they will
and make more visits than ever before. They their whole behaviour and the way they shop. bring both of their credit cards and fill two trolleys.
understand the value of their time – which is The strategic role of a category may be Some people treat shopping like the plague and
sometimes worth more than saving a few rands destination, routine, convenience or seasonal, will tell you that shopping is their worst.
on a commodity and then needing a forklift to get but all of that can change for a particular
their trolley to their car. They want convenience shopping trip. A destination category could Store repertoires
and efficiency from the stores they visit. become routine or convenience. What we need Store density has added to the repertoire of
to know is how the strategic category role stores shoppers visit. There are supermarkets
How can I save time? changes and when. and hypermarkets just about everywhere, with a
They are looking for a new dimension: ‘How This is where shopping mission plays a role. national network of Spar and KwikSpar,
can I save time?’ They want solutions. They The shopping mission is Mission Critical. Woolworths Food, and hundreds of petrol
want to get in and out quickly, and not spend station convenience stores staying open till late
their time looking around, bumping into Types of shopping missions or 24/7. Shoppers are now spoiled for choice.
people, merchandisers and boxes. They want to What are the types of shopping missions, and In my area, looking within a 3km radius, I
go to it, find it, get it and get out. how does the shopper change their behaviour? have a hypermarket, Spar, Engen (with a
Woolworths section), Shell Select, Caltex, two Five action points shopper feels. Help them spend less time at
Woolworths Food stores, five takeaways, three Here are five things that you can do to ensure the shelf. Make it easy for them to buy your
bottle stores and a cafe. So to compete and that you make the most of the shopping mission: brand and feel good at the same time.
create an efficient consumer response we need How can you make the experience of
to understand which missions are made to Merchandise and promote according to the shopping your category more of a pleasure?
which stores. time of day, week and month that missions Like providing category solutions – quick
for your category and brand are likely to occur. meals, all related ingredients in one place;
Category mission is critical Think about which other missions your easy to find and easy to combine into a
If mission for the store is critical then mission for brand or category could become a part meal solution.
“
the category and brand is even more critical.
People divide their shopping into different
missions, by breaking up the task into a lot of Getting into the basket will in future depend
smaller missions and making it easier. Pick up
the monthly items at the hyper where you get a
more on understanding the shopper than just
good price, then buy the bulk items from Spar having a well-organised category display. It will be
or a supermarket with close parking. Drinks and
snacks are bought at any time on any number shopper centric by focusing on what the shopper
of missions.
feels and needs for each mission – it will be
”
To get into the basket, an understanding of
the Shopper Mission is critical. mission critical.
The obvious solution is to expose your
category in as many contact points in the
store as possible. This is only partly true.
Too much clutter begins to degrade the of and find its way into the basket. This Getting into the basket will in future depend
shopping experience with more of a ’bazaar is about helping shoppers to find a total more on understanding the shopper than just
effect‘. If all categories were merchandised solution. having a well-organised category display. It will
everywhere, the store organisation and layout How would your category most logically be be shopper centric by focusing on what the
would become unclear and confusing to the laid out? Not just in terms of a planogram – shopper feels and needs for each mission– it will
shopper. The trend is starting to move in the but in terms of the decision hierarchy be mission critical.
opposite direction, to assist and facilitate of the shopper. What would be most
decision-making at the point of exposure. The helpful to the shopper? What would save
Graeme Taylor
more logical (as defined by the shopper, not the decision time? managing director
store owner) the layout is, the easier shoppers How can you make the category look better GlobalEdge Marketing Consultants
can find things – associated things – and then and work better? Great displays. Make it (011) 564 8168
buy them. experiential, which is about how the graeme@glx.co.za
Undersea
Cable Access
Undersea cable investment in South Africa Christmas Eve of 2007, in a move to open up
appears to be on ice, with no early thaw in access, ICASA promulgated draft regulations
sight. on essential facilities for comment. Undersea
Foreign investors continue to wait anxiously cables, including landing stations, backhaul
for the Minister of Communications to clarify circuits and international gateways, are regarded
local ownership requirements in respect of as essential facilities.
undersea cables. This is because, in order to The draft regulations provide that all licence
land a cable on South African shores, an holders should have fair and non-discriminatory
individual electronic communications licence access to essential facilities. In particular, access
will be required. Such a licence is only granted charges must be based on the ‘forward-looking,
pursuant to an invitation to apply, which must long-run average incremental costs of an
in turn follow a policy directive from the efficient operator providing access’, unless
Minister. What concerns investors is confusion agreed otherwise. In the absence of licensed
over the policy stance being taken on undersea competing undersea cables, the draft essential
cable ownership, and hence eligibility for facilities regulations, if passed, should drive
individual electronic communications licences. down international bandwidth charges.
The Minister has made a number of Although the charges for access to
statements in the media to the effect that any international bandwidth seem set to decrease,
new cable must be majority South African Minister may determine the licensing framework this does not resolve the continuing uncertainty
and/or African owned. Unfortunately, she has for ‘public entities’ listed in the schedules to the surrounding ownership and licensing of
omitted to say whether local ownership would Public Finance Management Act. Critics are of undersea cables. Foreign investors may well lose
be limited to the South African portion of a the view that this amendment undermines the interest in investing in new cable projects or, if
cable system, or extend across the entire independence of the Independent they stay the course, find themselves hopelessly
network. The promised guidelines on ownership Communications Authority of South Africa behind their deadlines. The delay in issuing
have not been forthcoming although they were (ICASA). landing right guidelines and licences is
to have been made available in November last More specifically, critics fear that the hampering the introduction of competition and
year. This lack of clarity can only be having a amendment to the Act allows Infraco to diversity promoted by the Electronic
chilling effect on potential local and international sidestep ICASA’s licensing processes. Infraco is Communications Act.
investment in proposed new undersea cables South Africa’s newest public entity, having For the time being, progress with licensing
such as EASSy and Seacom. recently been formed in terms of the Broadband additional undersea cables seems frozen by
Given high international bandwidth prices and Infraco Act to take transfer of the fibre confusion and uncertainty. It may be cold
and the shortage of bandwidth out of Africa, optic assets of Eskom and Transnet. comfort but the draft essential facilities
including South Africa, it is evident that such It is conceivable the Minister may make use regulations offer at least some prospect of relief
cable projects will go a long way towards of her ‘new licensing framework powers’ to for electronic communications service providers
alleviating supply-demand anomalies and grant Infraco the right to roll-out its own and consumers alike.
provide much-needed international bandwidth undersea cable without the necessity of
competition. complying with the usual licensing Note from the editor: At the time of
The Minister, who previously supported South procedures. This seemingly flies in the face print, the Minister of Communications had
African landing rights for the EASSy cable, has of government’s much-vaunted commitment just issued new guidelines stipulating the
now withdrawn this support, apparently to liberalising the communications sector. long awaited local ownership and licensing
because the cable is too commercially It could, however, fast track the granting requirements. Werksmans Attorneys will
orientated. Instead, she is reportedly trying to of landing rights, offering some hope deliver a follow-up on this in the next issue
convince EASSy investors to support the to potential investors. It is even possible of Marketing Mix.
Baharico cable, a project of the New Partnership that third parties may be permitted to invest
for Africa’s Development (NEPAD). in Infraco. Kathleen Rice
Adding to the confusion is that President Meanwhile, there are hints of progress in director
Thabo Mbeki has formally signed into law the regard to the cost of international bandwidth. Werksmans Attorneys
controversial amendment to the Electronic Telkom still dominates access to international (011) 535 8316
Communications Act. The effect is that the bandwidth and sets the prices for access. On krice@werksmans.com