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MarketingMix

M E A S U R A B L E M A R K E T I N G I N S I G H T S I Vol 26 Issue No. 3/4 I 2008 I R25.00 incl. vat


MarketingMix CONTENTS

I 0 2 I Book Review I 2 1 I Research 10


Marketing Mix reviews the Green Marketing Mix investigates the local
Marketing Manifesto, by John Grant, research industry, and explores major

and learns how to fit the green issues, current trends and future
options
revolution into marketing and sales
strategies
I 4 0 I Airport
24
Marketing
I 0 3 I Ed’s note
Do you know how to make the most
of airport marketing in spite of
I 0 4 I Direct Marketing airport upgrades? Marketing Mix
Marketing Mix reports back from the takes a closer look at some of the
marketing direct best practices challenges that marketers and media

workshop owners are facing

07
I 4 4 I Expert Opinion:
I 0 6 I Expert Opinion: 32
Helen McIntee
Richard Duncan
Helen shares her list of top 20 things
Richard gets hot and bothered about
she has learned as a customer and a
agency remuneration marketer

I 0 7 I 7 Day [B]itch I 4 6 I Expert Opinion:


Sharon Piehl, tells us how she deals Nicci Columbine
16 38
with traffic jams Nicci explains how technology can
be used to channel a marketing
message through contact centres
I 0 8 I Expert Opinion:
Michele Venter-Davies
I 5 0 I Expert Opinion:
Horrible consumer experiences leave Lisa Basson
Michele wanting more
Lisa explains why it’s important to
be innovative
40
I 1 0 I Top Media
Performers I 5 2 I Expert Opinion:
Marketing Mix lists the best in print,
22 Nici Stathacopoulos
based on the latest ABC figures Nici checks up on brands that are
taking on the virtual world

I 1 6 I Experiential
marketing I 5 3 I The Green
Shopper Workshop
There’s a reason why experiential
56 report back
marketing is being allocated a larger
Marketing Mix delivers the highlights
portion of the marketing budget
of the Green Shopper workshop.
every year
26
I 5 6 I Expert Opinion:
I 2 0 I Expert Opinion: Nana Nkosi
Yoav Tchelet Nana believes internships are the
Yoav makes web usability easy way forward

Vol 26 No. 3/4 I 2008 I MarketingMix 1


by michelle sturman BOOK REVIEW

The green marketing


manifesto
If there’s one book to read this year, this is it. cosmetic and marginal improvements.’
The ‘Green’ movement is gaining momentum Grant sees a huge opportunity to use green
and if marketers want to keep up, they have to innovations to leave competitors behind. He
play ball. But not just any ball. A green ball. uses Marks & Spencer’s extensively as a case
And play with the green ball properly – none of study throughout the book, for its Plan A (ie
this ‘greenwashing’ stuff please. You’ll be busted there is no Plan B here). What it boils down to
and the fall out won’t be pretty. for marketing objectives is that our current
And before you start moaning saying lifestyles ‘need to change beyond recognition’,
that green doesn’t fit with marketing and which impacts on all marketing, from everywhere.
consumerism, actually, yes it does. You just have The role of a marketer now should be to
to be clever about it. Grant doesn’t provide all change consumer behaviour. Grant says this can
the solutions in this book (incidentally, made be achieved in a number of ways:
from sustainable paper, etc, with a warning on Education; get being green out of being
the front cover not to put it in a plastic bag). niche; extend green culture outside of the middle
Instead, he gives brilliant case studies on how class; and make damaging practices unattractive.
other true green companies have made a huge To achieve the greenest marketing, three
success of their brands, and profits to boot. things need to happen: commercial outcomes,
Grant also points out the differences in being environmental outcomes and cultural outcomes. and easy to grasp
true green and greenwashing as well as how to To get to this point, a new approach to market- Integrative – combining commerce, technology,
incorporate green into your everyday marketing ing is required, but as Grant points out, in the social effects and ecology
activities. past 10 years or so marketing has (or should Innovative – creating new products and new
Here’s a simple breakdown of how this green have been) going this way with a move to more lifestyles
thing works: personalised and community marketing. This Inviting – a positive choice, not a hair shirt
Informed – lack of knowledge is what most
A. Green B. Greener C. Greenest distorts people’s behaviour.
And you mustn’t be confused by the
1. Public difference between green marketing and cause-
company & Set an example Develop the market New business concepts
related marketing. The latter is a link with a
markets
good cause that makes your brand feel good by
2. Social virtue of association. Green marketing is ‘a deep
brand & Credible partners Tribal brands Trojan horse ideas
set of reforms’. But you can do both.
belonging
The above information is a tiny snippet of
what’s available inside The Green Marketing
3. Personal Market a benefit Change usage Challenge consuming Manifesto. It’s chockfull with case studies and
products &
habits examples of brands getting green marketing
Set new standards/ Share responsibility/ Support innovation/ spot on, and those that failed. It’s also filled
communicate collaborate culture reshaped
with useful hints and tips on how to get green
The green marketing grid marketing right, and useful websites to visit for
more information on what being the ‘greenest’
Grant does fully explain this table but just makes the transition much easier. ‘We need really means as well as tons of references.
looking at it, it is fairly uncomplicated. What marketing that does good, rather than marketing There’s no excuse for not knowing how to truly
Grant does understand is that the concept of that just looks good.’ And there’s a difference go green when this book is on your reading list.
green marketing is a little more complicated and between green marketing as opposed to It’s a roadmap to change. 
therefore a brand can run the risk of getting this marketing green, which is for NGOs, charities,
horribly wrong, especially if it’s thinking of etc. Marketers need to follow the former.
The Green Marketing Manifesto
jumping on the bandwagon purely for profits. Marketers need to make green normal as
‘The first step towards sustainable green opposed to making normal green. By John Grant
marketing is to grasp that green issues are Green marketing follows five I’s: John Wiley & Sons
pointing to the need for step change, not Intuitive – making better alternatives accessible R344 (approximately)

2 MarketingMix I Vol 26 No. 3/4 I 2008


ED’S NOTE

Picking a
bone
I have a T-Rex sized bone to pick. I am frequently
approached by PR persons, publicists, PAs and
organisations wishing to see their latest exploits in print.
I am offered the ‘exclusive’ story or interview, and I happily
PROPRIETOR AND PUBLISHER:
accept, only to see that same story published in another
Systems Publishers (Pty) Ltd.
title two weeks later! Clearly, there is no understanding of
Tel: (011) 234 7008
what ‘exclusive’ means nor is there any concept of
editorial integrity.
North Block, Bradenham Hall,
Here it is then, for those of you who still don’t get it: the Oxford Dictionary defines the term
Mellis Road, Rivonia,
‘exclusive’ as: ‘reserved for or limited to the person or group concerned’.
Johannesburg As I have had more than a handful of frustrating debacles over this issue, I have decided to
take drastic measures. I am no longer going to accept offers of an ‘exclusive’, unless you can
PUBLISHER: Terry Murphy guarantee me that the content you are offering will not be seen anywhere else (and if it is, then
it won’t be for at least six months after I have printed it). Because I build this magazine’s
MANAGING EDITOR: reputation on the content within it, especially in an age that finds my readers simply ignoring
Michelle Sturman anything they have seen somewhere else, If you are not going to respect my mission to make
e-mail: michelles@systems.co.za this magazine content-rich and unique, I am not going to like you or your ‘exclusivity’.
These days, it seems that every Joe who has something to say about marketing wants to say it
EDITOR: Fulvia Becatti at once across every marketing-related medium, with no consideration of the fact that media are
e-mail: fulviab@systems.co.za not their personal mouthpieces. If Joe wants to broadcast himself, he should get a blog.
Magazines, especially niche B2B mags, are sophisticated media environments, with sophisticated
SUB-EDITOR: Jenny Bastomsky readers who have high expectations and demands of their media. And while I do understand
e-mail: jennybee@telkomsa.net that I have a responsibility to report on industry-relevant events, opinions and expertise, I also
have a responsibility to provide readers and advertisers with value. I will be ruthless in obtaining
ADVERTISING MANAGER: this balance, so don’t waste your time trying to woo me with an ‘exclusive angle’ on a story that
Robyn Richen everyone else will be getting!
e-mail: robynr@systems.co.za Right, now that I’ve had my rant, let me tell you a bit about the exciting stuff we have for you.
This issue boasts Research 10, a special guide to research in SA (I won’t spoil it for you – check it
PRODUCTION: out yourself!).
Spencer van Graan
And finally, don’t forget to check out our website www.marketingmix.co.za, which has taken
shape beautifully (congrats to managing editor, Michelle, for pulling it off).
spencerg@systems.co.za

SUBSCRIPTION ENQUIRIES:
Daisy Mulenga
e-mail: daisym@systems.co.za

Copyright of all material in this


publication and supplements are
reserved by the proprietors, except
where expressly stated. The opinions
in this publication do not necessarily
represent the views of the publisher.
Marketing Mix Events Programme
Database:
List Perfect • Footprint Awards Workshop: 23 April 2008
• Young Adult Marketing: 14 May 2008
• Marketing at-Retail: 20 May 2008

3 938 Jul-Dec 2007 Sponsorship and delegate enquiries: Robyn: robynr@systems.co.za (011) 234 7008

Vol 26 No. 3/4 I 2008 I MarketingMix 3


DIRECT

Marketing direct
workshop reportback
The marketing direct best practices workshop used Assegai winners as a background to direct marketing campaigns that
really work.
Speakers at the conference were:
Andrew Ambrogioni, managing director, Action Ambro’s
Michelle Perrow, MD of Lesoba Difference
Rick Joubert, executive head for Vodacom
Kathryn Price McKay, creative director, Primaplus
Christiane Duval, a director of the DMA

There are many ways to get creative with coordinated message to a target market with a At the other end of the spectrum, from the
direct marketing and that includes being powerful and synergistic effect, while achieving traditional to the new, is mobile advertising.
creative with standard direct mail – but it all a common objective or set of objectives.’ According to Rick Joubert, executive head,
boils down to what you do with the data you As Perrow puts it: “It’s not just the Vodacom, mobile is twice as big as online in
possess. “When you look at data, look at psychological relationship to the brand; you terms of marketing advertising and South Africa
people; not the names and addresses that have need to have depth, connective tissue – seeing has over 90 per cent mobile penetration.
made up that data,” says Andrew Ambrogioni, the same message from the same medium is And while cellphones are becoming increas-
managing director, Action Ambro’s. He says just boring.” Perrow suggests getting the sales ingly sophisticated, for now, the mass market
that marketers need to go back to the simplicity team involved in an IMC campaign. “You must can be reached by simple voice, text and USSD.
of data and also let the creatives work on it to have everyone involved, IMC is a business And you can be highly creative with mobile,
see what they can do. Ambrogioni suggests imperative. At the end of the day, if you’re according to Joubert.
that even the plain old envelope can be redone. going to be multidisciplinary, the teams must sit For the direct marketer, a service such as
“No more labels on envelopes please – there are in one meeting as one, as a brand team.” AdMe enables one to:
ways of personalising it,” he says. He suggests According to Perrow, there are three core  Select an audience that matches the target
using the data in the simplest of ways, for areas – promotional mix of tools, the channels market profile
example, determining whether the recipient is and data tools that are absolutely critical  Maximise the advertising budget
male or female and speaking to them differently. to success.  Guarantee that the marketing communications
“There are still huge organisations who do not Keys to IMC success include a synergistic are seen and heard by the audience
know who their customers are. As direct strategy, tactical consistency and interactivity.  Integrate mobile and direct response
marketers, we need to find new ways of finding But, one mustn’t forget the power of creativity mechanisms into the ATL and BTL advertising
data. One easy way of doing this is to check whether or not it’s IMC, especially if it’s a campaigns, instantly measurable for per-
out the new appointments sections in direct mail campaign. As Kathryn Price McKay, formance reporting.
magazines and papers – here you’ll find a pic, creative director for PrimaPlus, points out, using Still, there are many questions surrounding
job title, company and name and should be a little bit more creativity would help. “DM must legislation as many new bills become law.
able to figure out close to what salary people DO more. DM must BE more – it can’t just be According to Christiane Duval, a director of the
are earning.” about reward anymore. Consumers are weary of Direct Marketing Association of South Africa,
One of the most important aspects of a it and it needs to stop being formulaic,” says the marketing industry as a whole has adapted
direct marketing campaign is integration. Price McKay. to legislation well, and it has also caused it to
Michelle Perrow, managing director of Lesoba Price McKay’s own hidden camera research become more innovative. Technology, especially
Difference, uses the Dictionary of Marketing shoes that the envelopes that are opened are those the use of Bluetooth in shopping malls and viral
Communications by Norman A. P. Govoni’s that are more attractive and intriguing. “We need marketing, has a huge future. “E-mails, SMS
description of Integrated Marketing to treat envelopes as packaging. And then we need and telemarketing can become centres of
Communications (IMC): ‘a cohesive combination to treat the customer for opening the envelope.” innovation as they are economically worthwhile
of marketing communication activities, The bottom line for direct mail is that if it looks like but they will be affected by new legislation,”
techniques and media designed to deliver a junk mail to you, it will to the customer. says Duval. 

4 MarketingMix I Vol 26 No. 3/4 I 2008


by richard duncan EXPERT OPINION

The remuneration trap


There are fewer more contentious and hotly allow their agency to meet its own profit targets.
debated subjects in our industry than agency Some have even ventured into the spirit of
remuneration. partnership by exploring payment by incentive
Agencies’ source of revenue is constantly sub- (PBI) and offering rewards to their agencies when
ject to client budget cuts as well as increasing they meet certain pre-agreed sales, market share
pressure from procurement departments to or profit targets. This is not an easy area to
show annual savings despite increased workload agree on as the means of measurement are
and resource needs. The pressure on agency sometimes difficult to set and monitor. Market
margins has therefore never been greater and share or sales could be one such measurement
this has led to the creation of inventive charging tool but as it is subject to many other influences
techniques that are designed to extract further beyond advertising, just how to isolate the
income streams. impact of an ad campaign is a tough one to
Some agencies are paid monthly retainers determine. Often, agencies and clients alike turn
while others have a basic monthly fee that is to a more subjective performance appraisal system
supplemented with a project price list. In both and cross-tabulate the results with general
cases, this fee has no doubt been determined business performance figures. The one area that
based on a projected headcount calculation. can offer a more accurate measurement platform
Some clients have avoided the murky waters of is the direct response category of direct mail
the monthly fee and have rather relied on the and online communications. Here at least, the
traditional, if not outdated, media commission impact of a particular mail pack or electronic
formula from the days when there was still a direct mail (EDM) can be finitely measured and
line between below- and above-the-line. Few the ROI calculated.
pay the type of rates that were commonplace in What further underpins the remuneration
the past though, which has placed agencies challenge and makes the issue all the more
under considerable financial stress. important to resolve is that marketers expect a
This situation is further exacerbated by top-quality service and creative product. This in
internationally aligned accounts where the turn requires the agency to have top talent and


remuneration deal has been agreed in London, this comes at a price, which is tough for agency
New York or Paris. In these cases, the percentage management to find and keep unless it has the
commission is usually woefully inadequate for Marketers have their necessary funds. So every time a corner is cut on
the local agency office. For example, five per an agency fee, the coffer shrinks that little bit
own pressures of needing
cent on a multi-million dollar account may work more, making it harder for the agency’s
well in New York but the revenue that this deal to meet increased sales management to deliver the world-class quality
generates in a satellite office in South Africa, offering that its clients demand.
where its total media billings might be half-a-
targets and market Marketers have their own pressures of
million rands or less, barely pays for the agency penetration levels with less needing to meet increased sales targets and


to get out of bed in the morning let alone the market penetration levels with less budget than
types of resources the international brand budget than before. before. Unless things change, the big agencies
automatically expects from its local agency office. will be forced to change the way they work and
Let’s face it, what would you expect from this could lead to a growth in start-ups and
your agency if it was only earning R25 000 for smaller players whose overheads enable them to
the whole year? Would you expect it to spend offer a quality product at the price the marketer
hundreds of thousands of rands on your is willing to pay. At least then, marketers will get
account because of its prestigious profile? This the expertise and talent they want. What will
scenario may seem fictional, but sadly, it’s this mean for the bigger agencies out there?
absolutely real, not that I would want to name Time will tell. 
and shame the brand concerned (the story may
be absolutely out of context as perhaps its Richard Duncan
remuneration deal with its agency is fairer now. founding partner, The Partnership
If not, then this is another example of the It’s not all doom and gloom. Not by a long Sydney, Australia
absolute remuneration crisis that some agencies shot. Many marketers have developed well +61 41 154 9791
face with their clients). structured and fair remuneration deals that richardd@thepartnership.com.au

6 MarketingMix I Vol 26 No. 3/4 I 2008


7 DAY [B]ITCH

Sharon Piehl, client services director,


Inzalo Communications

28/01/08
Woke up at 3am with Bell, my seven-and-a-half kilogram cat, sitting on my
bed with a present for her mom – a mouse. After taking care of the mouse
and praising Bell for her hunting abilities, it was nearly time to get up.
Every Monday starts with a team status meeting which involves
updates on client progress, discussing new opportunities and flagging any
items or issues that might crop up. Received final approval on a press
release involving four parties, which is always a challenge and very
rewarding when all the pieces fall into place (especially on a deal which
has been three months in the making).
Made it home in time for my reinstated ‘doctors’ appointment’ with Made it back to the office in time to do a ‘song-and-dance’ routine for
Grey’s Anatomy – not my night to cook so I relaxed on the couch to a colleague’s birthday.
watch McDreamy. Decided to cook for my husband, and got creative with a creamy
tomato lamb casserole. My husband cleaned as fast as I was cooking, so
29/01/08 by the time I had finished cooking the kitchen was clean. Decided to end
Woken by husband preparing to do Ironman training; he brought me the evening reading The Monk who Sold his Ferrari, one of five books on
coffee in bed so I could languish a little longer. my bedside table, which I aim to read.
Early meeting with a client who has only ever experienced negative
publicity and has now approached our company to change the public’s 01/02/08
perception of it, as well as build and maintain positive publicity. This has Got up in the spirit of joining my husband in his training frenzy. Ran round
involved educating the client about the many-faceted arena that is the block, decided it wasn’t for me and kicked it back under the bed.
publicity. Then a status meeting with long-standing client who has a good Started monthly management meeting on time. A day in the office to
sense of humour – a nice way to end off the afternoon. catch up on e-mails and admin. Fridays are lunch days with the girls at
Dinner with friends – so once again off the hook with cooking dinner. the office; we catch up on how our week has been and what we’re up to
on the weekend.
30/01/08 Briefed our creative team on a March launch event for one of our
Got up at normal time, 5.15am, and fed our two rather large Rottweilers. clients; she needs to revert with exciting concepts for next week.
Enjoyed treating the cat to a back massage while she ate. Packed cooler Got home while the sun was still shining and took the dogs for a
box for the day and proceeded to office for early meeting; hoped to have run by the river. Enjoyed a relaxing standard Friday night – movies and
time to do admin prior to the meeting but as I looked out of my driveway takeout on the sofa with my husband.
saw traffic stretching in both directions. Decided to take a different route
to work, and ended up sitting in traffic till 7.30am, but not going any- 02/02/08
where. Turned around and took option C, which was now merely to get Husband did a three-hour training cycle in the morning, which gave me
to the office in time for the meeting. Option C only helped me drive for time to fit in a hair appointment. Treated husband to a massage at the
1km before once again hitting a traffic backlog. At 8.05am, I realised I local health spa, as he has had a hectic start to the year, and then we
was only a few kilometres from my front gate so I turned around to work enjoyed a leisurely lunch at the Design Quarter. In the evening, went to a
from home till traffic subsided. pink-and-white bling party – husband looked the part in white cut-off
Eventually headed for a meeting and that set the mood for the day linen pants with candy-pink shirt. His bling accessory was a wand, which
with back-to-back meetings. he used to great effect all evening, granting wishes.

31/01/08 03/02/08
Excited – I’m meeting a business leader who I find very inspiring. He has As this is usually our day to sleep late, we only got up at 7.30am, to
worked his way up through the ranks and truly understands the company; hungry dogs howling for their breakfast. Caught up with the family over
he is passionate and it’s not just about rands and cents. We’re putting breakfast at Lifestyle Nursery. Did dreaded grocery shopping and spent the
together a 25-year commemorative book for his company and I’ve afternoon preparing for a busy week. Browsed through the Sunday
enjoyed doing interviews with the staff. papers to see if any clients were mentioned and had an early night. 

Vol 26 No. 3/4 I 2008 I MarketingMix 7


by michele venter-davies EXPERT OPINION

Experiential experiences
There are some exceptional experiential chicken is fresh and prepared on the spot.
marketers out there – affording consumers During the 40 minutes it took to find the
brand experiences that are both unique and clucking cutie, rid it of its feathers and doodas,
unforgettable. Brand interactions so creative and convert it into a Mediterranean delight, we
that industrial theatre needs to up its game. had nothing better to do than observe the staff
A Saturday visit to a large wholesale outlet arguing over the horse racing card, scratch
bestowed a theatrical indulgence second to hardened thingies off the tatty tablecloth and
none. For nearly 15 minutes we waited uncom- view a flyer advertising specials that expired a
plainingly in a lengthening queue at the week previously. What an experience. But... the
Information Desk – courtesy of the Eskom expe- brand is thriving!
rience we needed to add our names to the We know about ‘moments of truth’.
’generator list‘. Like good South Africans deter- Customer/brand interactions on a daily,
mined not to become negative, we turned this mundane level are the real brand experiences
into an opportunity to indulge in the ambient and South Africa boasts some of the best expe-
sounds of till operators discussing customers’ riential marketing companies in the world. What
every purchase; inhaling the fragrance of spilt a shame that the brand managers who are
pickled onions waiting whiffily to be whisked commissioning these marvels don’t focus as
away – tomorrow maybe; and savour the build much time and energy on the daily, often trivial
up of clamminess in the absence of air condi- experiences of customers. It is convenient to
tioning (‘let’s admire them for saving energy,’ brand customers as ‘unreasonable’ or as having
we said). ‘unrealistic’ expectations, but customer relationship
And then... just as we reached the front of management is about engineering all contact
the row, the Customer Service officer terminated points. Every connection should yield a positive


her personal cell call and announced ... ’I’m on experience. This is boring old text book stuff
lunch!’ No warning, no understudy in sight and and basic common sense, but it seems that
no chorus line to take over. The leading lady
Every employee should marketers are often too occupied with exciting
simply hauled out her lunch and entertained us be mentored to assume promotions and initiatives to take a sensory tour
to a culinary rendering of ’Pampoen‘ as she of the realities surrounding their brands.
shovelled it into her mouth... slowly... and
ownership of the brand Every employee should be mentored to
glared. Then to top it off, in full view of the experience required to assume ownership of the brand experience
patrons now standing three deep, she delved required to satisfy consumer needs for products
into her bag, whipped out a product ‘with satisfy consumer needs and services that provide sensory pleasure,
wings’ and flaunted it in front of us in all its variety and cognitive inspiration. Brand
for products and services
glory as she disappeared. I will never forget the interaction should simulate social interaction
faces of the audience; the collective gasp ... and that provide sensory and consumers need to be able to relate to
the mad dash for the exit before Act II began. brands on an appropriate level of intimacy and
pleasure, variety and


A stopover for a stiff midday drink was now mutual satisfaction.
in order. Time to take solace in the arms of a cognitive inspiration. There is nothing gained from brand
hospitality brand claiming to be welcoming. As environments that provide no stimulation or
we waited (and waited) for a waiter (treated to deliver doses of hostility and irreverence. The
the sounds of the bar fridge firing up for take- old clichés abound... ‘treat the consumer as
off, sniffing the stale aroma of the bachelor’s you would a guest in your own home’ ... so just
party from the previous night and caressing the excuse me while I eat alone in front of my
sticky table top), we observed a group of ‘movers dinner guests while indulging my intimate
and shakers’ enduring a brand experience they personal hygiene requirements before kicking
will, no doubt, share with many others. the company out for daring to gag on the
A drink laced with a fetid lemon slice was floaters in their drinks. 
politely returned... only to be replaced by another
bearing half a hairdo floating merrily on its
Michele Venter-Davies
surface. Management objected to the audacity faculty head: Marketing and
of the customers to expect better service ... ‘word of mouth’ marketing, one imagines. Advertising, AAA School
produced the bill... and asked the ‘fussy’ Next we soldiered to the ‘fast food’ outlet. (011) 781 2772
patrons to leave. A decision worth its weight in Now, we do appreciate the promise that the michelev@aaaschool.co.za

8 MarketingMix I Vol 26 No. 3/4 I 2008


TOP PRINT PERFORMERS

Top print performers 2007


Looking through the ABC figures for 2007 has demonstrated what Circulation key
an interesting time print is going through. Most interesting, is that Red: Subscriptions and single copy sales
newspapers have increased circulation while the consumer magazine Blue:Total paid
section has decreased circulation for the Oct-Dec 2007 period. One of the Green: Total circulation
main reasons for the decrease in consumer magazines is that a number
of magazines have been pulled from the ABC and out of circulation, but Please note that all the figures in brackets refer to the
also the Media24 debacle has left many of its (successful) titles missing corresponding previous period.
from the past six months’ figures.
While a key focus is the Oct-Dec 2007 ABC figures, Marketing Mix also For those who need a reminder, the following magazines were
took into account a publication’s performance over the whole of 2007 from suspended, terminated, resigned, ceased publication or didn’t submit
quarter to quarter as well as each quarter’s corresponding previous period. figures within the consumer magazine category for Oct-Dec 2007:

Job Mail: terminated Monthly Golfer: no submission Village Life: terminated


Tribute: no submission Sports Illustrated: suspended Truth Magazine: terminated
SA Health Matters: no submission Fairlady: suspended Ride Magazine: terminated
Shape: suspended InStyle SA: suspended (now ceased Gymnast SA: no submission
Men’s Health: suspended publication) The Wisden Cricketer: resigned (now
Autolocator – Gauteng edition: resigned Leef: suspended ceased publication)
Caperush Magazine: no submission Sarie: suspended Art South Africa: resigned
Drive 2.0: resigned True Love: suspended New Homes: no submission
Maxpower SA: ceased publication True Love Babe: suspended (now ceased Baby Gro: no submission
Xtreme Machines: resigned publication) Beautiful Brides: no submission
Kick Off: suspended Inwater Boating & Fishing: terminated SA Builder: resigned

Daily newspapers the tabloid is doing well because it’s tapped into the community in a way
As a category, daily newspapers have increased by 70 331 to 1 957 415. that tells it the newspaper cares for it. On top of this, last year saw a
Out of this, 1 528 436 are copy sales and subscriptions. There are 14 complete overhaul of layout in terms of look and feel. “Our news stories
digital editions. are tops – besides reporting on issues that directly affect – and often
The top five daily newspapers are: afflict – our community, we regularly come up with hard-hitting, breaking
Daily Sun news. We also have some of the best sports reportage in the country,” he says.
The Star Distribution has also been increased, as has on-street awareness. The
Sowetan newspaper’s street selling points have grown from 80 vendors to 350 and
Beeld PoS within shops and an increase in franchises have also helped. “We also
Isolezwe believe in aggressive – and from time to time controversial – postering,”
says Capraro.
The top performers for 2007 are:
Isolezwe 98 565 98 565 98 565 (96 485) Weekly newspapers
Daily Sun: 513 291 513 291 513 291 (494 875) As a category, weekly newspapers have increased by 37 197 to 729 760.
Son (Daily) 97 135 97 135 97 135 (72 049) Out of this, 729 756 are copy sales and subscriptions.
The top five weekly newspapers are:
The mighty Daily Sun may finally be slowing down but it’s still gaining Soccer Laduma
significant numbers. However, according to publisher, Deon du Plessis, Ilanga
there is still huge room for growth. “In 2007 we had a good year…but Son (weekly)
we outran our distribution infrastructure. Hopefully, we’ve fixed that now. Mail & Guardian
I think Daily Sun’s growth is far from over…it’s now not a question of The Post
whether we can grow but whether we want to. And when is enough
enough? My answer: Enough is not yet enough. We’re still on the growth The top performing weekly newspapers for 2007 are:
trail…if, of course, we can print enough copies and continue to distribute Ilanga 105 673 105 673 105 673 (100 906)
them on time.” Mail & Guardian 51 842 51 842 51 842 (48 292)
Interestingly, the other daily that showed significant growth was also a Soccer-Laduma 321 986 321 986 321 986 (303 461)
tabloid, the Afrikaans Son. Ingo Capraro, national editor of Son says that

10 MarketingMix I Vol 26 No. 3/4 I 2008


TOP PRINT PERFORMERS

Ilanga is an institution that is over 100 years old, and continues to grow a generally better coordinated leadership team, which means more eyes
despite the introduction of other Zulu titles. According to the Ilanga over copy and more clever copy. All of this adds to the appeal of the
team, the launch of the hugely successful Thursday tabloid supplement, paper,” says Tsedu. A distribution drive through Media24’s Media
Ilange Le Theku, has set new benchmarks for the upwardly mobile new Circulation Services24 (MCS24) has also helped – subscription drives and
generation of readers. Its Monday supplement, Lase Khaya has intro- new initiatives such as getting through gated communities.
duced a whole new set of readers to the newspapers, and grown the Ilanga LangeSonto, although a relative newcomer to the weekend
female readership. editions, is going great guns. Credited with being the first isiZulu lan-
The Mail & Guardian has finally broken the elusive 50 000 barrier, so guage Sunday newspaper to be published in South Africa, within two
more power to it. A series of breaking news stories has definitely years it has almost reached 100 000 copies. “The growth of our titles is
helped its circulation figures (SABC internal audit report, for example), ongoing; we have captured the new young upwardly mobile market as
and its powerful website has also more than likely contributed to well as kept our traditional Ilanga readers. It continues to grow weekly
increased circulation for the physical newspaper. and there is something in it for everyone; this is what makes it the
As for Soccer-Laduma, this giant just keeps on growing by massive Sunday paper it is. We have the right recipe,” says the Ilanga team.
amounts. While the soccer newspaper doesn’t ‘do’ anything to
increase its circulation except reader events and creative competitions, Consumer magazines
it’s the editorial that keeps its fan base constantly growing. “You have As a category, consumer magazines have decreased by 58 417 to 4
to talk to people in a language they enjoy. You can talk to them in a 507 839. Out of this, 4 229 313 are copy sales and subscriptions. The
language they understand but they may not enjoy or engage with biggest selling category (even with numerous suspensions and closures)
you,” says Peter du Toit, editor and publisher, Soccer-Laduma. Content is the Women’s General with 1 073 961 subscriptions and copy sales.
is king and readers rule, is the editorial team’s mantra, and a focus on The top five consumer magazines are:
topical and interactive features has increased loyalty with the paper’s huisgenoot
readers. you
Move!
Weekend newspapers Cosmopolitan
As a category, weekly newspapers have increased by 92 155 to 2 666 Idea/Idees
955. Out of this, 2 616 549 are copy sales and subscriptions. There are
13 digital editions. A lot of the magazines that performed exceptionally well over the past
The top five weekend newspapers are: year are very niche titles such as Noseweek, Wine, LIG and Africa
Sunday Times Geographic. The women’s category and general entertainment suf-
Rapport fered severe knocks, as did the sports and men’s category (although
Sunday Sun with the closure of Zoo Weekly/Weekliks, it may bounce back this
Sunday World year).
City Press Condé Nast House & Garden grew by 7.45 per cent (using the total

The top performing weekend newspapers are:


Citizen 53 598 53 611 (incl. digital editions) 55 140 (52 217)
City Press 180 321 180 321 195 150 (183 101)
Ilanga LangeSonto 84 061 84 061 84 061 (70 291)
Sunday World 199 344 199 344 199 499 (184 772)
The Weekender 12 058 12 058 12 404 (9 368)

The weekend newspapers on the whole have done exceptionally well circulation data only) from the 2006 Oct-Dec period with steady
over the past year, increasing figures by almost 100 000. So while growth of subscriptions of more than 25 per cent year on year, accord-
figures for The Weekender may not seem that impressive in the grand ing to the team. “Condé Nast House & Garden has positioned itself as
scheme of things, it is worth remembering that a) it’s a weekend South Africa’s premier luxury lifestyle magazine. South Africans’ wealth
newspaper and b) it’s a very niche newspaper and c) it has a very and buying patterns are ever more diverse, and Condé Nast House &
desirable readership. The Sunday World has increased figures Garden mirrors and, in fact, leads that trend, as recently increased cir-
substantially over the past year, indicating a market that is showing its culation figures show,” says editor Liz Morris.
desire to read. Also attributing its success to its editorial is noseweek. According to
City Press, managing editor Mathatha Tsedu, says it boils down to Adrienne de Jongh, advertising and marketing manager, noseweek’s
really good editorial, including a new supplement for the Gauteng audi- retail sales increased by around 14 per cent on the previous year and
ence – a weekly eight-page tabloid. “A big point for editorial is a focus are directly connected to the nature of the editorial, and the resultant
on politics, which is certainly interesting the readers and we’ve now got publicity and media attention. “The big stories were the First
a really good investigative team that has found big scoops. We also have Rand/Ansbacher fiasco and the resultant court case which noseweek

Vol 26 No. 3/4 I 2008 I MarketingMix 11


TOP PRINT PERFORMERS

The top performers in 2007 are:


Drum 100 695 100 728 100 728 (79 895)
Move! 130 917 130 917 130 917 (104 507
Longevity 23 369 26 955 29 687 (23 279)
Wine 11 049 12 524 14 645 (11 936)
LIG 28 329 28 329 29 261 (26 181)
Golf Digest 35 302 35 452 35 452 (30 545)
Condé Nast House & Garden 44 160 49 079 50 060 (46 589)
Noseweek 19 777 19 777 19 777 (16 640)
Africa Geographic 26 417 26 543 28 826 (25 158)
Popular Mechanics 40 099 40 212 43 978 (40 619)
Cosmopolitan 123 134 123 604 125 454 (113 255)
Real Magazine 56 126 56 126 57 211 (56 033)
National Geographic Kids 39 812 39 812 40 405 (33 108)

won. In addition, our articles on Judge Hlope and National Police shopping mall). “Part of our success is due to ongoing contact with readers
Commissioner Selebi created huge media interest,” she says. and advertisers through eye-catching print ads, edgy television commercials,
Retail sales were also an important factor in the increasing circulation trade shows, reader events, letters and online forums.
figures of Africa Geographic. As a largely subscription-based magazine, a “We also interact with readers via provocative point-of-sale posters,
focus on retail sales has paid dividends. “We are particularly thrilled with newsstand promotions and other strategies,” says Alan Duggan, editor
the ABC results for a number of reasons. Firstly, because they reflect our and publisher of Popular Mechanics.
conscious and strategic investment in retail sales and, secondly, because “After five-plus years on the market, advertisers and media planners are
the results help to underscore the increasingly mainstream consumer inter- finally acknowledging that Popular Mechanics is a perfect fit for this tech-
est in matters of conservation and environmental concern,” says Tanya nology-driven world. More importantly, our magazine is making its pres-
Caldwell, publisher, Africa Geographic. The strategic push to grow reach ence felt among people who identify with our pay-off line, ‘Be the first to
involved an increased print run to put more copies into stores as well know’,” he adds.
more distribution outlets (in particular, Woolworths) and point-of-sales Cosmopolitan, on the other hand, has increased circulation by virtue of
displays, window displays etc within main CNA stores. A change in being such a forceful brand and providing readers with exactly what they
distributor also helped according to Caldwell. want and expect. The ABC circulation figure for the period Oct-Dec 2007
Using the public’s awareness of environmental issues has helped to push is 125 454 (paid circulation figure: 123 604). This amounts to a circula-
copies. “Editorially, the push was assisted by the themed August 2007 issue tion increase of around 11 per cent over the previous corresponding peri-
on Climate Change which captured a far broader audience’s attention and od. Its supplements always go down well and its October issue, for exam-
resulted in a 70 per cent sell through. This issue subsequently sold out ple, offered a sex booklet in a foil bag, which sold over 135 000 copies
within a few weeks of going on sale in stores. Discerning marketers and and its December issue was its biggest ever at 392 pages.
advertisers take note!” says Caldwell. Real Magazine is another title that has relied on its editorial to drive
Public awareness and innovative reader interaction helped another sales. With no specials, supplements or any advertising, its circulation has
magazine last year, this time in a completely different category. Popular crept up mainly through word of mouth and well-targeted editorial as
Mechanics has made good use of increased interest in technology and well as an increase in the distribution footprint. “This has been our best
driven this further with advertising and innovative PR campaigns (the most marketing tool and has driven circulation and growth has been a function
recent that made headlines was the man in a nappy walking through a busy of meeting the editorial needs of an underserved reading market,” >p14

12 MarketingMix I Vol 26 No. 3/4 I 2008


TOP PRINT PERFORMERS

>>p12 says Jonathan Harris, publisher, Real Magazine. Being a niche magazine has certainly helped Habitat to increase its
National Geographic Kids has shown phenomenal growth for a hard- circulation, especially in light of the difficulties the print sector is facing.
to-reach market and has shown 21.7 per cent year-on-year growth in total Fine-tuning the magazine in terms of updating its logo, fonts and layout
paid circulation. “This strong sales figure excludes distribution of 250 000 has contributed but, more importantly, so has extended distribution. “Our
copies via a special Engen marketing initiative over the December 2007 association with Lew Geffen Sotheby’s International Realty saw 5 000 sold
holiday period. This title continues to impress readers with fun and inter- copies added to our ABC figure and this has undoubtedly helped.
active components – its phenomenal subscriber base is testimony to this,” “We are hoping to institute a similar arrangement with a leading hotel
says editor Fiona Thomson. The inclusion of the Afrikaans magazine was chain and a financial institution during 2008,” says Colin Ainsworth Sharp,
also a contributing factor as it increased footprint and boosted sales, publisher/managing editor, Habitat. According to Ainsworth Sharp,
including subscriptions, according to associate publisher, Dene Strain. Habitat should remain secure in the face of economic difficulties as its
A number of covermounts throughout the year and ad campaigns target market is the high LSM group. “We are very niched and the LSM
(winners of numerous awards) helped to increase awareness and conse- sector we are targeting is largely unaffected by the current slowdown, but
quently push sales. Other initiatives included an Engen deal in December whether this will continue is a good question. However, I believe the
with an extra 250 00 copies, which were used for forecourt promotions high-echelon lifestyle advertising sector we target should remain secure.”
and while this number is obviously not claimed in the ABC figures, it Being niche has also helped Your Child, which is aimed at parents of
helped to boost awareness of the magazine countrywide. Other examples kids aged 4-12 years old. “There are no other magazines in this market, so
include providing a magalogue in Weg with a compelling subscription it’s not as if we were broadening the offerings in the niche, or trying to
offer and competition as well as an awareness drive at the Klein Karoo claim readers from other titles – we really had to create the niche as we
Nasionale Kunstefees in Oudtshoorn during April for the Afrikaans edition. went along. That takes time, but it seems that in the second half of 2007
we did make good inroads in terms of brand recognition and trial, and in
Consumer magazines July-Dec attracting and retaining readers,” says Kate Sidley, editor, Your Child.
As a category, consumer magazines has decreased by 32 613 to 708 500. For Your Child, word of mouth is especially important, as is the editorial.
Out of this, 535 518 are copy sales and subscriptions. The biggest selling “Our marketing efforts are quite editorially driven, too, and we make sure
is Youth with 87 553 subscriptions and copy sales. that we keep them relevant to our readers and to our content. We also
The top five consumer magazines are: launched a Readers’ Panel, which has proved popular and has enabled us
Hip2B2 to include more ‘real- life’ stories and comments from readers,” says Sidley.
Taalgenoot Fit Pregnancy, on the other hand, simply put more magazines in more
seventeen places and changed the frequency of the magazine. “We increased the
Your Pregnancy number of outlets from 1 100 at launch to 2 300 and also frequency
Soccerlife 442 from four to six issues; our double issues performed well, and sometimes
better, than our quarterly issues,” says Gillian Chapman, circulation
The top performers in 2007 are: manager, Fit Pregnancy. 
Fit Pregnancy 17 735 18 333 18 333 (15 869)
SoccerLife 442 33 477 33 477 33 865 (31 314)
Habitat 20 941 20 941 21 093 (15 890) Custom magazines (only total circulation and
Your Child 17 864 17 864 18 414 (16 023) corresponding previous period)
Dish & Skottel 1 656489 (1 431 245)
Dish Africa 236 613 (169 907)
Edgars Club Magazine 899 681 (876 985)
Foschini Retail Group Club Magazine 869 991 (834 198)
Super Club for Kids 86 303 (65 675)

Custom magazines July-Dec (only total


circulation and corresponding previous period)
Jet Club 1 143 607 (1 124 912)
Off-Limits 70 000 (22 882)

Custom Magazines Jan-Dec (only total circula-


tion and corresponding previous period)
Mercedes 84 007 (46 436)
Mercedes Benz Transport 14 547 (9 020)
Pezula 13 043 (11 472)

14 MarketingMix I Vol 26 No. 3/4 I 2008


EXPERIENTIAL MARKETING

Experiencing brands better


Experiential marketing is a brand’s Experiential Marketing Forum’s 2007 Research:
commitment to going the extra mile to offer the key findings (www.emf.com)
consumer something far richer than advertising  The experiential marketing label has many definitions and companies are confused
can ever deliver. VWV’s Group CEO, Abey about what they will get from it
Mokgwatsane, defines it as a multi-sensory  One third of respondents consider it to be the lifeblood and core of their organisations,
intervention, which generally takes place in an around which company philosophy is built. Half of respondents consider it a tool for
environment where the consumer is happy to building relationships, engaging prospects, stimulating trial and creating buzz. The
be engaged. And it’s growing. Experts point to remainder consider it to be a frontier (an approach they might explore depending on
research worldwide, which finds that an increasing their courage or their clients’ needs).
number of marketing activities are, in fact,  Many respondents think engagement is the strong suit of experiential marketing
experiential. “If you consider trends around the followed by giving a positive experience, increasing sales, and getting prospect’s
world, a recent study by MICE Group PLC attention. However, the respondent’s concept of the role of experiential marketing is
showed that 13 out of the 19 marketing dependent on how they use it in their work (ie either implementing or evaluating it).
activities conducted by companies are experiential,”  Campaign objectives accomplished by experiential marketing can include: making
says David Boon, group director of marketing prospects more receptive to other marketing, fostering believability and trust,
and strategy, EXP. Experiential marketing is motivating consumers with the urge to respond, stimulating voluntary brand
increasingly defined as something that needs to engagement, converting prospects to customers and transferring ownership of the
be combined with other marketing functions. brand to the consumer.
“In the current volatile economic environment,  Experiential marketing is most widely associated with the terms ‘sensory experience’,
I would suggest that experiential marketing should ‘interaction’, and ‘relationship’. Also, with ‘memories’.
make up at least 60 per cent of the marketing  The biggest risks associated with using experiential marketing were: lack of control
effort,” says Melvin Chagonda, CEO, Primedia@Home. and limitations of the impact of event-based tactics; the difficulties of training and
He adds that to ensure an above normal return on implementation as well as bad experiences, which will erode the brand.

investment, one needs to spend more on engaging Experiential marketing is made more manage- buy,” says Boon. Furthermore, traditional
differentiating marketing. able, thanks to a better understanding of con- agencies are now offering experiential services,
As you cannot catch the consumer through sumer lifestyles, their purchasing behaviour and but still give priority to traditional media (with
traditional mass media the way you used to, it is so on. “This has moved experiential off and true experiential being the afterthought, or
obvious why experiential marketing (and indeed, beyond the stage to engagement strategies something that is outsourced at the last minute).
BTL media) is growing. “Too much emphasis is where the brand is required to communicate,” A poor understanding of what true experiential
still being placed on passive communications says Ricardo Gressel, business development marketing is, and how to pull it off properly, is
from both a brand and corporate perspective,” director, VWV Group. But are marketers and also a major issue. “We battle to sell it to clients
says Mokgwatsane. For this reason, he says, agencies getting it right? via agencies; I think this is because it’s hard
marketers are looking for new ways to reach the The experts seem to think that only a handful work, with intense logistics. It requires specific
consumer. “On the other side, consumers and of experienced players are doing this platform training and takes place in a very different
audiences are demanding more meaningful justice. “Clients seem to look at experiential as a environment. It’s far easier to deal with TV and
relationships with the brands they choose, and short-term quick fix solution to a particular sales radio,” says Jacques du Preez, managing
look to experience the brands rather than merely problem, and expect the experiential agency to director, Provantage Media. The average
receive information about them.” offer them a tool kit of services that they can campaign brief does not address this >p18

16 MarketingMix I Vol 26 No. 3/4 I 2008


EXPERIENTIAL MARKETING

>>p16 platform either. This is why specialist implementation, must be acceptable. “My essential, but can be successfully implemented
agencies have developed strategies and advice is, if you’re able to sell your proposal to (by tying the campaign into a trade channel,
methodologies that are more specific to this marketers, as a mimimum, ‘implement it for example, or to a model that generates sales
platform. Indeed, Du Preez is finding that more properly’,” says Chagonda. There should be leads). Chagonda maintains that ROI is an
clients are choosing to go directly to specialist sufficient planning and preparation made essential measurement, as is a strong call
experiential agencies, instead of going through upfront. to action.
media planners and regular agencies. “In the Running an experiential campaign in conjunction “The feedback cycle is quick. Customers will
South African context, we have a very strong with above-the-line advertising lends it credibility. tell you immediately what they think of your
agency culture that generally leads to strategic “It creates pre-purchase dissonance, allowing brand in the context of an experiential cam-
thought of a brand’s communication strategy. consumers to knock off their concerns even paign,” says Du Preez. And these campaigns
In so doing, priority is given to traditional media before they purchase,” says Du Preez. But allow for adaptations and tweaks to be made to
and the balance is allocated to experiential, not research indicates that, as with most media, them quickly and easily (or at least, they should
affording it a real place and chance in the integrated campaigns are the most effective. An be flexible enough to allow for this).
budget to be part of and have a meaningful integrated approach widens the reach and What are consumers looking for? During an
impact,” says Boon. appeal of the campaign. “You tend to find that experiential event, says Du Preez, you are
The brief for an experiential campaign is TV, radio, outdoor, door drops and newspapers swapping consumer time and attention for a
unique, and, as Chagonda points out, it should are great for publicising the campaign,” says few critical things: the latest news, an emotional
be open-ended enough to create room for Chagonda. He has found that supporting connection and entertainment.
creativity. “Unlike a normal brief, the wider the experiential with these media results in a greater Experiential marketing is not limited to
opportunity for creativity, the higher the chance uptake. FMCG goods, as well as service innova- external brand activities. Internal employee
of a cutting edge proposal,” he says. The initial tions (especially in the banking and telecommu- experience is becoming increasingly important.
brief proposal should be simple, detailing the nications industries), and bit ticket products, will Likewise, the realisation that experiential
target market and the implmentable aspects. benefit from aopting an experiential approach. marketing is an essential part of CRM. Some of
The second level of the proposal, detailing Measurement of campaigns is not only the more popular trends in experiential market-
ing, says Gressel, include role play for research,
industrial theatre, team building and personal
The Jack Morton 2006 Experiential Marketing Study: recreational development through activities such
key findings (www.jackmorton.com) as mountain climbing and basketball inside and
 Consumers don’t prefer experiential marketing to other media (it ranks third after pop-up retail.
TV and the Internet), but they do report that it is more influential, with 82 per cent Looking ahead, agencies will need to invest in
of respondents agreeing that participating in a live event is more engaging than the right training and tools to enable them to
other forms of communication. develop effective strategies for clients, because it
 80 per cent of respondents agreed that participating in experiential marketing is clear a growing number of brands are recog-
would give them more information than other media. nising the importance of experiential. There is
 80 per cent of respondents agreed that they would be more likely to purchase after evidence of increased spending in this sector,
attending a live marketing event. and bigger budgets.
 85 per cent of respondents agreed that participating in a brand experience is Experiential will need to occupy a more
something they would tell others about. prominent place in ongoing and integrated
 Integration with the Internet was found to be the ideal way to relay information marketing campaigns, rather than be a short-
about a brand or product, while integration between experiential and word of term solution or brand-booster quick fix. Clients
mouth best allows brands and products to relate to consumers’ interests and and brands will need to be more proactive
concerns. Direct engagement with the consumer (via experiential marketing) leads about getting their experiential partners
to spur of the moment purchases. onboard from the start to achieve this.
 18-23 year olds are lifestyle driven and want brands to communicate to them And while events (live concerts, parties,
through their interests. The 24-37 year olds demonstrate a strong affinity for branded functions etc) have generally been the
experiential marketing in the workplace (particularly live events). The 38-49 year olds first thing marketers think of when experiential
want brands to communicate their value. And 50-65 year olds, who have leisure marketing is mentioned, it is not the only
time and money, want experiential events to teach them. option. Marketers will need to be more creative
 Preference for experiential marketing by product category finds shoes in first place, in using alternative and traditional media to
followed by food and beverages, clothing, personal/beauty products, cars and create experiences around their brands.
household products. Measurement and evidence of ROI is
 Women are significantly more influenced by experiential marketing than men (which something that experiential agencies and
is crucial, because women own or influence such a high proportion of purchase marketers will need to be able to deliver to
decisions). their clients, as research indicates that this
 Only 33 per cent of employees are satisfied with the quantity and quality of communication is a key obstacle in the uptake of experiential
from employers, although they want to be engaged, especially through events. marketing. 

18 MarketingMix I Vol 26 No. 3/4 I 2008


by yoav tchelet EXPERT OPINION

Web usability for dummies


While reading through the latest web sampling methodologies, your perception of
traffic statistics from the major South African your website will be turned upside down,
publishers, one big question came to mind: believe me!
How do they measure the usability aspect of Recently I met with a large e-commerce com-
their websites? pany that was quite happy with its online sales
I raise this question quite often with my col- and growth. Year-on-year growth of around 40
leagues in Europe and the US. Web usability is per cent is great and keeps investors happy. But
somewhat of a forgotten science when it comes when delving a little deeper into the user experi-
to online media. ence, I found that its growth could easily be 10
What is web usability? Well, in short it’s the to 20 per cent more. A big problem it had, but
process of ensuring the best possible user expe- wasn’t even aware of, was that users spent 60
rience on a website. per cent of their time trying to find products.
In 2004 a company called Yahoo! established That’s okay, don’t you think – it’s an
an interesting division, with the sole purpose of e-commerce site after all?
enhancing user experiences across Yahoo!’s web- Not really, because 24 per cent of those users
sites. Aptly called the ‘Exceptional Performance’ left the site before concluding their purchases,
group, this small team set about taking Yahoo! because they were not prepared to waste more
to another level of end-user experience. It time searching. This was confirmed when the
measured a multitude of elements on its web search system was upgraded and within seven
pages such as the use of images, JavaScript, days, the average sales on the site increased by


cascading style sheets, browser versions, etc. 18 per cent a day.
During the re-engineering and testing, the team Web usability, just like Not bad, but I went even further, and
at Yahoo! managed to achieve a minimum through an analysis of user behaviour, and the
speed performance improvement of 25 per cent search engine optimisation time it was taking them to make purchases
on its sites. This is just one example of what can after they had found what they were looking
is a never-ending process
be achieved when you focus on improving the for, I discovered that this also needed slight
end-user experience on your website. and the sooner you improvement. A new checkout system was
Web usability can get quite involved, but the implemented which cut the amount of time it
golden rule is to focus on making sure your
employ it as part of your takes to checkout in half – this resulted in
users have the best experience when visiting overall web strategy the another six per cent rise in sales after 10 days.
your site. This can be a matter of a performance It’s changes like these, and the analysis of
better your bottom line


increase to make the site load faster or it every piece of information, layout navigation,
can involve a multitude of elements such as images, look and feel, and much more, that
will be.
improving the navigation, speed, readability, contribute to the ultimate success and growth
layout and more. of your website and business online.
Many companies that have websites make Web usability, if done correctly, can be a
the mistake of assuming that users will time-consuming and involved process, but it will
interpret the layout, and look and feel of their always generate results, whether you have a
website the way they do. It is crucial to get the give you information while it’s happening, as blog or a large e-commerce site. I always
basics right and to keep an objective overview at opposed to waiting 24 hours for data from suggest building a web usability strategy in
all times. current analytic systems), with other small steps and to slowly tweak each piece of
The advent of website analytic systems has technologies such as live support and other the puzzle, so to speak.
helped to improve the accurate monitoring of tracking systems give marketers a whole new Web usability, just like search engine
user behaviour on a website. But alas, this is way of tracking and understanding user optimisation is a never-ending process and the
not always enough, especially when dealing behaviour online. sooner you employ it as part of your overall web
with e-commerce sites and those that generate It’s not enough to look at the web stats strategy the better your bottom line will be. 
business online. provided by your hosting company to reflect
Advanced page capturing technology, which accurately what people are doing on your site or
shows user movement on the screen and how they perceive the experience of browsing Yoav Tchelet
across your website is already making inroads your site. director
into the analytics market and when used Web usability is about bottom-line results. iLogic
correctly can provide a wealth of information. By employing not only cutting-edge analytics (011) 832 2800
The combination of real-time analytics (which technologies, but also some old-fashioned yoav@ilogic.co.za

20 MarketingMix I Vol 26 No. 3/4 I 2008


RESEARCH 10

A note from the editor: A note from the consulting editor:

W R
here would marketers be without research? And what would esearch 10 came about after a discussion between publisher Terry
marketing look like without research? For a start, would Murphy and some industry stakeholders who felt that it was time for a
anyone know that black diamonds existed, for example, or the fact review of the research industry in the light of the fast-changing world that
that kids actually like Mo the Meerkat? Probably not. Guesswork we live in.
and (maybe) sales figures would be all we’d have to go on. And In South Africa in particular, we have seen enormous socioeconomic
some might argue that this is enough for any brand to get by. After and political changes over the past 10 years and the good news is that
all, isn’t the whole idea behind marketing to sell products, regard- there are more to come. In addition, the technology revolution is far from
less of how much jargon and marketing gumpf we can come up over and will affect the lives of every single person on this planet.
with in the middle of the night?. At SAARF, a large part of our activities is to look at the future and try to
Essentially, brands would not be able to operate without some anticipate the changes that we can expect. Due to the size, complexity
idea of what the target market looks like (how they walk, talk, eat, and investment that our surveys require we normally work with five- or six-
shop, play and sleep). Today, not knowing exactly where your tar- year contracts. To think that we can accurately determine what the situa-
get market is, and exactly how, when and where you can make tion will be five or more years from now is, unfortunately, not possible.
yourself available to it means that you are as useful as a milk However, too many people think that future planning is a waste of time
bucket under a bull. and that is why many countries and organisations find themselves unpre-
Mass marketing doesn’t work as well as it used to, at least not pared for events that could have been anticipated.
without a little help from below-the-line and alternative media. I hope that the glimpse that Research 10 gives you into the current state
And figuring out how to manage all of that without making a mess of play as well as the near future will be enlightening and will assist you to
of it requires a decent amount of research and insight. be better prepared for the inevitable change that is round the corner.
Plus, the board wants affirmation that the huge amounts of Unfortunately, we also face other issues that will to a large extent
money it gives you each year is actually doing something tangible determine our actions in the future.
(sales, brand share and so on); and you can’t prove that without The dearth of skills and the flight of experienced people from our indus-
research. try are both frightening and tragic. The fact that the South African schools
That’s not to say that research is always right or easy to carry system produces people that cannot add two figures together without the
out. It’s not. It is often a major investment (if it’s not, it might not aid of a calculator (and sometimes even with the help of a calculator)
be taken seriously) and it will sometimes tell you things you don’t means that most school-leavers are unable to become successful
want to hear. The only rule is to do it right. researchers.
Research in SA is on par with global standards, if not better. After Numeracy, or rather the lack thereof, is probably the biggest failure of
all, where else in the world is there so much diversity, across so the new democratic South Africa and will haunt us for many years to
many layers? Our researchers are developing methodologies and come. Add to this the fact that many companies have closed their
models that are unique and fascinating, and could pave the way research departments and in the process lost the knowledge and skills
for research around the world. It seems the major issues are accumulated over many years, which further exacerbates the situation.
around access to research and an understanding of how it works, So, for all of us in research, the message is clear. It is not going to be
what it means and how to use it. This is something that researchers smooth sailing. We’ll have to dig deep and adapt to the challenges to a
and the marketing industry will have to address collectively. much greater extent than previously contemplated.
Moving forward, I hope to see more creative thinking around However, we still have a strong base from which we can operate and
research and its application. if, as an industry, we work together to overcome these shortcomings, we
I hope that Research 10 sheds light on the industry as a whole will be able to dodge the curve balls that will be coming at us from
and addresses some of the questions and issues around research all angles.
in SA. Please visit our website for extra content and information As the Chinese saying goes, may you live in interesting times!
(with so much to say, we ran out of space in the magazine!).
Enjoy! Paul Haupt
CEO, SAARF

22 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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Research in South Africa:


the big issues
T
he research industry in SA is top class, with researchers in the know assuring Sarel Du Plessis, CEO, Ads24 believes that while marketers might have a
us that our methodologies and standards are up there with global standards good understanding of their target audience, they tend to think of the targeted
and best practices. Increasingly, global research institutions are acquiring local group in broad strokes. “In reality, people, although they may be in the same
research houses – we’ve seen TNS joining forces with Research Surveys, and LSM group, are not the same throughout the country. Marketers should investi-
Ipsos linking up with Markinor. This is good news: not only are local research gate their target audiences at more regional and local levels, and understand
houses benefiting from global support structures and resources, but they are in the differences,” he says.
turn impacting on global research with local perspectives, and unique models Liphoko says that existing studies (such as the AMPS, LSMs and Black
and methodologies (after all, our society is unique and highly complex, so our Diamond) are frameworks for understanding macro trends and not a substitute
research models are proving dynamic and relevant). for brand-level research (which can have markedly different results compared to
Looking at the research industry a little closer, it becomes clear that there are the overall category data). “I think the criticism has to be put into its proper
some issues in and around research. Research 10 explore some of the big issues. context. Most planners criticise the misuse of segmentation studies in marketing
decision-making,” he says.
The high price of insights And then there’s the fact that good research takes time. “Everyone wants a
Research can be very costly, and many brands have to plan and set aside a quick solution, so they buy research and shoe-horn it into their own research,”
substantial portion of their budget for research (which must be justified says Brauer. Research should be factored into the whole branding programme
post-campaign). from the start. Simply looking to one resource for answers is risky – any errors in
As Donald Liphoko, associate media director, The MediaShop, says, insightful the database will skew your view on the market.
consumer research that is actionable, adds value to the media decision-making “The paradox is that marketers are battling to be heard in the boardroom.
process and influences the brand decision-making process is uncommon due to There’s an attitude that if they can prove their ROI through surveys and
the costs involved. “This is a huge drawback,” says Anina Maree, client services research, then they will get more credibility in the boardroom,” says Shirley
director, African Response. “Agencies end up using what information is available Benney, CEO, Ipsos Markinor.
to them, and assumptions are made to fill in the gaps.” But, as Tiaan Ras, man- Perhaps there is not sufficient understanding of research and segmentation
ager: Marketing and Media Intelligence, Ads24 points out, classic research is models among marketers and media planners. Take the LSMs or AMPS, or even
expensive; it needs to be deliberately viewed as a positive investment. “Too the Black Diamond segments – each has been criticised for falling short of its
often, research is a grudge purchase that is made because the marketer has purpose to define specific market(s). But as Maree says, everybody’s using these
money for it, and if they don’t use it, they lose it,” says Heidi Brauer, director: as common currencies. She goes on to say that these studies have their place,
Marketing and Client Relations, Ipsos Markinor. “Ad agencies are the worst and when they are used in the manner intended, they are effective. “People
offenders in this case.” have a limited understanding of how they work,” she says.
Researchers admit that expensive, large-scale budgets are not always neces- The Ipsos Markinor researchers maintain that any research or segmentation
sary or effective. As Andrew Fulton, owner, Eighty20 points out, secondary data study will present the facts or trends at a particular point in time and within a
is inexpensive. “The trick is to look for databases that have large enough sam- particular context, and must always be seen as such. “With any research, you
ples, are accurate and relevant to the problems they try to solve.” Synergised should be asking ‘why’ three times, and if you can answer all of these, then
studies have emerged as a viable option, where two or more brands or compa- you’ve got a solid case,” says Brauer.
nies will conduct a study together to determine major trends and insights. This might be something that tertiary institutions should address more vigor-
Omnibus studies might be very effective in testing something basic, in a short ously. Perhaps research houses and marketing agencies need to be more proac-
time, without excessive cost. And perhaps online or mobile methodologies will tive in educating one another and developing the right skills between these
emerge as cost-effective solutions, though at present, these are not being used industries. “The research itself is not the problem,” says Ailsa Birch, marketing
to any great extent. director, ACNielsen SA. “It’s that there are no skills to take it further.” She has
“Companies spend millions on research when there may actually be simpler, found that some clients will poke holes in the research when it doesn’t yield the
cheaper and more effective ways to get insights,” says Fulton. answers they were looking for, or when it doesn’t reflect what they think they
already know. It all boils down to their understanding of the role of research.
Lack of understanding and skills shortage But it goes beyond this – a lack of skills and training (on both sides of the
There is the complaint that some marketers and media planners are not delving fence) as well as high employee churn is contributing to the problem.
beyond the basics of research data; that they are quick to use LSMs or the Black For Gordon Patterson, MD, Starcom Media, there are three issues at the centre
Diamond study, for example, as the be-all-and-end-all, and might base a cam- of the talent shortage. The first is tertiary education – Patterson believes that
paign on this without doing further research to get a more detailed picture of these bodies need to measure their success by the quality of their graduates,
their market. The result is a campaign that doesn’t hit the bull’s eye and, too not by the number of graduates they produce. The second issue is that the
often, marketers and media planners are quick to blame the research. profession of media planning and marketing is not marketed effectively

24 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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to the youth. “We need to have a peer group that inspires,” says Patterson. Briefs fall short
Thirdly, the profession should be more discriminating and selective of people Briefs are also not up to scratch, say researchers, and again, this is the result of
who have the right skills. a poor understanding of research and its role in marketing.
John Bowles, joint MD, Newspaper Advertising Bureau (NAB) believes that Campher says that the briefs they receive from clients are often not up to
the advertising industry has changed, and business models do not have the standard, and it would seem that these clients don’t know enough about
margins to attract the skills, invest in staff and reward them appropriately. “In research to really put together a brief that can be actioned by the research
the past, agencies used to do regular research, had research managers and house. She goes on to say that the research houses have upped their game,
automatically offered that to their clients. As that industry has carved itself into and are providing a myriad of research solutions. “But are they being used?
specialist services, research has taken a back seat,” he says. And the media There is always doubt as to whether there is someone responsible for this.
owners who do conduct research find their credibility is questioned. There’s a definite gap.”
New planners and marketers are coming into an industry that has no culture Campaigns are often not briefed in the right way (often verbally, says
of research, and no understanding of the quality of research. “Their depend- Patterson). “In terms of comprehension, I’d say that most clients/agency
ence on or desire for good research is non-existent and their ability to use it to personnel have a working understanding of research, but if it’s a real problem,
make decisions is not a priority,” he adds. then perhaps the research companies should prepare a template which could
The modern researcher needs to be able to do so much more than crunch form the foundation of a checklist,” he says. But the media is also to blame,
numbers and spot trends. “It’s not only numeracy skills that are crucial, but for misunderstanding and misusing research; journalists who don’t understand
also critical verbal thinking. What good is it if you understand the numbers, but the research data and objectives, for example, will sensationalise certain stud-
can’t put the trends into words or make sense of them,” says Ras. The ideal ies (but are not always reflecting on the research in the right way).
researcher would have a healthy mix of the two skill sets, he adds. However,
marketers and media planners should be involved in training that gives them a Working together
more comprehensive understanding of research. The relationship between the agency and the researcher is also under the spot-
Employee training and mentorships are suggested as means to address the light, with researchers saying that clients are sometimes not willing to be open
skills crisis and uplift standards. But, as Birch points out, training does not give or to share their business models and brands with them. Mari Harris, Ipsos
employees experience. Markinor director, insists that jargon be left at the door (or at the very least, be
“Training does not give researchers the right experience or the opportunity discussed, so that all parties have the same understanding of the jargon and
to get to know the client and build a relationship with them,” says Birch. therefore the same expectations). Likewise, researchers across the board admit
Interestingly, the number of research houses that offer employee training has that briefs should not be communicated via e-mail or telephone, but in person,
dropped in recent years, as has the number of brands with dedicated in-house where discussion will clear up misconceptions and help to drive the research
researchers. “On-site research and consultation are costly, and many clients do forward with greater focus.
not see the value in it,” says Elmari Campher, Customised Research director, Clients are urged to be more open about what the research did for them.
ACNielsen. She points to the dismal success rates of new product launches “There is no 360-degree approach: very seldom do we actually get feedback
as proof that brands are missing out on the benefits of quality research and from clients,” says Birch. Leaving our researchers in the dark about what
in-house research teams. worked and what didn’t impact negatively on the industry. Some researchers
believe that local marketers and planners need to up their attendance at
Is media planning all it’s cracked up to be? research presentations and seminars.
Media planners are a bigger problem in the issues of research, says But perhaps researchers need to change the way they are viewed. “We are
Neil Higgs, director: Innovation and Development, TNS Research Surveys – not good at positioning ourselves as equal professionals, so we are simply
they are too focused on numbers. “It’s not only about reach. The thinking of mass seen as a supplier. And our credibility is compromised,” says Brauer. Research
marketing days is over. In today’s fragmented media markets, and in the age of needs to be positioned as a creative field, based on strong scientific founda-
niche tribes, this thinking is no longer valid,” he says. After all, niche titles may not tions. She adds that researchers don’t ask their clients enough questions to
have the biggest circulations, but their readers consume every page of their favourite understand their needs and businesses better, and to find out what decisions
mag (including advertising) and are therefore a more valuable media buy. are being made based on their research. “We ask our clients what it is that
Planning programs and software packages make it easier to access existing keeps them up at night. What a client needs is not always what a client wants,”
research, and create media plans and campaigns based on this. But these are says Brauer.
often used without a good understanding of how the research behind the
figures works. “In this case, the researcher or marketer is taking the research A complex market
too literally. It must be contextualised and given a background. The underlying Of course, the complexity and dynamism of the South African population
trends must be understood and the full story behind the numbers should be is both a treasure and a problem. “Coping with all the information out
explored,” says Maree. there is quite a task,” says Ras. And as the markets evolve, the questions we
For media planners to be familiar with every magazine, newspaper, radio ask of them also need to evolve. The boxes that we try to put people into
show and TV programme is virtually impossible. But Du Plessis says that more to be able to count and measure them are changing constantly. “The question
and more marketers and planners are seeing the value of including ‘softer” is, are we assuming the right things about them. Yesterday’s facts are today’s
issues (readers’ headspace or a magazine’s editorial positioning) into the fiction,” he says. Perhaps sampling needs to be better understood and con-
factors they consider. Perhaps this is the way forward. trolled to create a better understanding of the complex South African markets,
Bowles believes that media planners (and marketers) have inherited adds Birch.
traditional techniques and definitions that they have to use, and for them to “There is interesting stuff going on outside of classic research surveys. For
change that behaviour would be very difficult. “I think they are frustrated but example, the intercept research that takes place at the taxi ranks or filmed
willing to take on new research that can help them plan better and become interviews, such as those collected by c.i.a’s NOW project,’ says Ras. “We
more informed to make calculated decisions.” need to start thinking out of the box,” he concludes. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 25


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AMPs
T
he SAARF All Media and Products Survey (AMPS) is an in-home face to face
personal interview (conducted using CAPI, that is, Computer Assisted
Personal Interviewing). Respondents are asked questions relating to mass media
consumption, ownership of motor vehicles, durables and household items, as
well as personal items; they are also asked about their financial services, their
personal activities (holidays, shopping patterns and Internet usage), as well as
their product and brand usage or purchase.

The results of this valuable new addition to AMPS not

only give us interesting information about people’s

attitudes towards important issues, but, because it forms

part of the AMPS survey, the data can be cross-tabbed


workers, are sampled differently, in accordance with their gender composition.
with any AMPS product, brand or with the mass of media “AMPS is the official currency for printed media and is still doing a great job in
determining reader incidence and the sustainability of the match between target
consumption information that AMPS contains. market and reader audiences,” says Sarel du Plessis, CEO, Ads24 and current
chair of SAARF. “Although AMPS is sometimes criticised, compared to similar
The AMPS sample is currently just over 21 000 adults per annum, and fieldwork surveys throughout the world, it is still of the highest quality”. In June 2007, the
runs from mid-January till end of June and then from July to December. The AMPS AMPS study was audited by Erhard Meier, an independent international consultant.
sample is a multi-stage area stratified probability sample, pre-stratified by province The audit found that the AMPS study is a well designed and well executed survey,
(9 strata), community size (4 strata), gender (2 categories) and age (4 categories) comparing well with international standards.
adding up to 288 cells. In urban areas, the sample is collected by using a random In March this year, SAARF released the results of a new battery of attitudinal
starting point and selecting systematically with a fixed interval every 9th address statements which are now included in the AMPS survey. The statements test peo-
number. A cluster of four addresses are selected at each primary sampling point to ples attitudes about subjects such as advertising; cultural traditions; patriotism,
save travelling costs. In rural areas, sampling points are selected using maps of the and so on. “The results of this valuable new addition to AMPS not only give us
surveyor general’s office. Again, a starting point is selected at random and every interesting information about people’s attitudes towards important issues, but,
Nth dwelling is used. Clusters of two are used. because it forms part of the AMPS survey, the data can be cross-tabbed with
One respondent is selected at every address, using gender and age to ensure any AMPS product, brand or with the mass of media consumption information
a proportionate sample. Inhabitations at mines and hostels, as well as domestic that AMPS contains,” says Paul Haupt, CEO, SAARF. 

Back to basics: LSMs


D
uring the 1980s, marketers used to segment markets by separating them
into either rural or urban markets. However, it was evident that the
differences between the rural and urban markets were disappearing fast.
“SAARF then started looking for a segmentation tool that would be better than
every single demographic,” says Paul Haupt, CEO, SAARF. Around this time,
SAARF was approached by Eddie Schultze, of Unilever, with a new take on
research. Schultze believed that SAARF was not looking in the right place, and
he pointed out that ownership of TV, radio and motor vehicles, for example,
would allow for interesting segmentations. When looking at ownership in different
combinations it became possible to plot the population and segment it.
SAARF decided to adopt this approach to segmentation, using mostly existing
AMPS variables and the power of multivariate statistics. These variables were
statistically ranked according to their discriminatory strength and the strongest
discriminators selected. From 70 odd variables that were analysed, 13 were selected,
and these were used to segment the population into eight simple groups.
“We published this for the first time in 1990, and it was very well received. It
really worked from day one,” says Haupt. “Over the years we have >p28

26 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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>>p26 updated and changed the LSMs, continually improving them.


Today the SAARF Universal LSM is an excellent segmentation tool, and is the
most widely used segmentation method in South Africa. It has also been
adopted in more than a dozen other countries and a Pan African LSM has
Is race still
also been developed.”
The strength of the LSM tool lies in the fact that it is the result of the
a viable
combined efforts, money and research impetus of three key industries –
advertising, marketing, and media. This combined force means that SAARF
has the budgets to do research on a substantial sample. “It also means that
differentiator?
I
we are able to do standardised research that compares apples to apples. In s race a viable differentiator, especially in a democracy
addition, and this is the most important point, it also allows for the research that is trying to heal the wounds inflicted by racism? Is
to be shared instead of each individual industry keeping its findings to itself. this a suitable differentiator today?
This is the basis of a common currency when all users have access to the In the 1990s, SAARF was accused of racism in a case
same research” says Haupt. As Lucas Raganya, technical support executive, that was taken before Parliament. The premise of the
SAARF, points out, because the LSMs, RAMS, TAMS, etc all use the same accusation was that SAARF founded its research on the
respondent base, there is minimal wastage of resources; plus, the research is distinction between the white, coloured and Indian (WCI)
transparent and credible. The SAARF surveys have been audited by inde- and black populations. SAARF responded by offering to
pendent international experts on more than one occasion, and have been remove race from its questionnaires and surveys. However,
given the thumbs up. the industry realised that race was still an important and
relevant differentiator, so SAARF was asked to keep it.
However, SAARF argues that the LSMs are indeed
powerful segmentation tools when correctly used “Race is still an important classification
and especially when used in combination with variable in SA… but, like wealth,
other such tools (demographics, lifestyles, shopping
we should be seeing it as just one
behaviour etc).
way of looking at people’s different
Another plus is that the LSMs are independent. “They belong to the
industry and therefore there are no vested interests,” says Claire Milne, worldviews – that is where the true
technical support executive of SAARF. A further benefit is that the LSMs have
become a common currency, and there is virtually no important survey in our richness for marketing, advertising and
industry that does not contain the SAARF LSM’s, thus enabling our stakeholders
to use the same measure in different research. To keep the LSM current, it is research lies.”
updated every single year by reanalysing the variables that make up the index.
The LSMs have been criticised by some marketers and media planners Neil Higgs, director: Innovation and Development, TNS
who say that they are insufficient measures. However, SAARF argues that the Research Surveys, says that race and wealth are the most
LSMs are indeed powerful segmentation tools when correctly used and ubiquitous differentiators in research and marketing in SA.
especially when used in combination with other such tools (demographics, “Because of the way people were discriminated against by
lifestyles, shopping behaviour etc). “It’s not the tool that is deficient, it’s the race in the past, so much of their thought and behaviour
way that it is used,” says Michelle Boehme, technical manager, SAARF. “LSMs patterns are dominated by the race group to which they
are not the only tool out there, and shouldn’t be used as such. Very often perceive they belong. So, to the horror of those who are
they need to be used in combination with other tools to paint a better picture politically correct on issues to do with politics, poverty alle-
of the market.” viation, service delivery and related social issues, not to
Eighty20 ran a competition on their website, challenging users to guess analyse by race is to miss the main context of the data,”
what their LSM is. And only a third of users actually got it right, proving to he says. At the same time, BBBEE continues to entrench
Andrew Fulton, owner, Eighty20 that working knowledge of LSMs is low. the social divide, he adds.
John Bowles, joint MD, Newspaper Advertising Bureau (NAB) says “all of us However, moving forward, this will evolve. “How we
have gotten quite carried away with defining target markets according to LSMs. process information and make decisions follows patterns
They have just become an easy target market definer, but in reality, most that are the same regardless of race, culture or other
marketers use them as if they were income segments.” He goes on to say that groupings – it is to do with how our brain works, and
the industry is no longer looking at target markets according to category. transcends race and all the rest,” says Higgs. He suggests
Another pitfall is over-targeting, says SAARF. The problem here is that that worldview and culture may become more significant
marketers and media planners often over-target to the extent that they end up differentiators.
with too few respondents in their sample and then they criticise the research. “Race is still an important classification variable in
Ultimately, the interpretation and logical use of the LSM tools is the SA… but, like wealth, we should be seeing it as just one
responsibility of the user. It is also their responsibility to ask for the necessary way of looking at people’s different worldviews – that is
training, which SAARF and other bodies regularly provide in the form of LSM where the true richness for marketing, advertising and
workshops and training courses.  research lies,” concludes Higgs. 

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TAMS
T
he SAARF Television Audience Measurement Survey (TAMS) data is gath- them to use, says Haupt); channels with educational programming targeted at
ered electronically through devices called people meters that are installed children will benefit from the expanded panel. Currently, SAARF is conducting
in more than 1 500 respondent homes across the country and that measure the trials with the new panellists, but it is hoped that over the next few weeks, the
viewing behaviour of approximately 5 000 individuals. Each household is new panel will be formalised.
equipped with a remote control device; each member of the household has
their own ‘button’ on this control device, and they push this button to log in and DStv-i
log out whenever they start or stop viewing. Households are continuously moni- DStv announced the DStv-i audience measurement tool late 2007. This is a
tored to ensure full cooperation by all respondents, and if necessary they are return-path measurement system (ie the decoder is used to capture viewing
counselled, either by phone or in person. SAARF TAMS counsellors will coach behaviour rather than a people meter).
any panellists who are not logging in and out correctly and panellists who con- According to Peter Mackenzie, managing director, Oracle Airtime Sales
tinue to do so after counselling are removed from the panel. In addition, coin- (OATS) DStv recognised some years ago that with the proliferation of media,
cidental telephone interviews are conducted from time to time to ensure that channels and devices, and the explosion of digital platforms (a problem that is
household compliance is at a high level not unique to SA), the TAMS panels would simply not be able to measure multi-
The TAMS people meters were initially dependent on landline telephones to channel audiences adequately. Very small sample sizes were one major short-
communicate with the central computer system in Johannesburg. In areas coming of the panels; Mackenzie says that for 60 per cent of the DStv chan-
where many houses did not have telephones, radio links (limited to a specific nels, the sample size was probably smaller than five people.
radius) were used to connect such houses to the nearest house with a landline “There was no industry strategy for dealing with TV and measurement rat-
telephone to transmit readings. ings,” says Mackenzie. In 2006, DStv started looking at overseas models and
During the early years of TAMS, a large part of the black population did not identified return-path panels as a viable option. Click stream data is recorded
have electricity or landline telephones, so measurement in black areas was lim- and stored in the memory of the set top box, and retrieved daily, where after it
ited. By the early 2000s, Eskom had succeeded in supplying almost 80 percent is downloaded to TNS in the UK for analysis and compilation. “It is a huge
of the country with electricity, so there was the potential to report deep into rural technical challenge and an enormous investment. But it means that we will
areas. In addition the advent of GSM cellular phone technology also provided have robust ratings for TV advertising,” says Mackenzie.
SAARF with a new way of communicating with households. The TAMS panel currently measures a sample of between 1 500 and 1 600
Today, transmission of reporting signals takes place via GSM cellphones, households (about 350 of which have DStv). By comparison the DStv-i panel
landlines and Fastnet, making it possible to communicate with households will measure 4 000 households. “These panels are passive – panellists
everywhere. “The improvements in communications technology have made the don’t have to do anything to be measured, so it’s got to be more
rural panel possible,” says Paul Haupt, CEO, SAARF. In 2007, accurate than measurement tools that require the panellists to log in and
SAARF began releasing results from rural households, in line out each time,” says Mackenzie. Plus, the system has safeguards built
with its aims to provide a national into it, so power cuts and faulty Internet connections will not have a
picture for television viewing. “This national picture has negative impact. Industry expert, Brenda Wortley has been appointed
proved great for stations like SABC 1 and e.tv,” project director, while an independent audit process is being finalised (the
says Haupt. audits will be made available to SAARF).
The switch to overnight ratings in July 2006 has Mackenzie goes on to say that major channels overseas are developing
also been a major plus for the TV industry in that it similar models. “This means that we are in a leadership position and it
provides stations with a much more up to date picture of their underscores the fact that this is where the industry is going.” Planning tools
audiences and therefore greater accountability. will be updated to include the DStv-i data.
Nobody is quite certain about the future of TV audiences and trends. There Haupt points out that although return-path panels will play a role in future,
will be great challenges for SAARF starting with the measurement of the new the DStv-i panel only measures viewing at a household level and not at an
pay television channels as well as the switch to digital terrestrial television (DTT), individual level as is done by the TAMS panel.
which will go ahead later in the year. Haupt and the SAARF team expect that It also involves complicated and extensive modelling of data and will not
the SABC, e.tv and even M-Net will apply for acquisition of channels. “And then produce information that is comparable to that produced by the TAMS panel.
in 2010, we will be faced with the 2010 FIFA World Cup which will need “What must be pointed out is that a television media owner will now put a
innovative ways of measuring out of home viewing and at the same time, media owner controlled currency on the market instead of one that is jointly
high-definition TV is also fast becoming a reality. All of this is going to put a controlled by marketers, advertising agencies and media owners,” says Haupt.
strain on our measurement capacity. As there will be more audience fragmentation, “The provision of industry controlled common currencies for the buying and
so we will need to increase the TAMS sample size amongst other things,” says selling of media space and time was one of the main reasons for the
Haupt. SAARF is investigating all their options, and is working towards a viable creation of SAARF and it served all media and the industry well over the years.
solution which will in all probability consist of a hybrid solution and not just be The fact that there could be different currencies controlled by individual
a question of expanding the existing TAMS panel. media owners that are not comparable may not be to the advantage of the TV
Personal measurement devices are on SAARF’s radar, especially since 2010 industry.” To address this, media owners with such panels will need to work
soccer viewing will see people watching the matches in pubs and clubs. “The closely with SAARF in ensuring that comparable ratings for television channels
future is a bit uncertain, but it’s exciting,” says Haupt. are evolved.
In the meantime, they are expanding the current TAMS panels to include DStv-i will begin recruiting panellists during the course of the year with a view
children as young as four years of age (the remote device is easy enough for to reporting data by early 2009. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 29


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RAMS OHMS: measuring


outdoor media
S
AARF’s Radio Audience Measurement Survey (RAMS) is a survey, which meas-
ures radio audiences and time spent listening to radio stations. The figures

P
represent total audience sizes as well as stations’ reach into the adult population. rior to the launch of SAARF’s electronic Out of Home Media Survey
More specifically, the following information is gathered: (OHMS) data, outdoor had been measured by AMPS, and relied on
 Radio stations listened to during a seven-day period respondents’ recall. As Paul Haupt, CEO SAARF, says, this data was not suffi-
 Times listened to each station (for each day of the week, for each quarter cient for the industry, since it did not allow for campaign planning. “It was not
hour of the day in a 24-hour period) on par with other media. We needed to find electronic devices that would
 Radio stations listened to in the past four weeks measure outdoor and put it on a par with other media,” says Haupt. The
 Favourite radio stations. Npod has been eight years in development, since Nielsen and SAARF joined
A set of respondents taken from the AMPS study are used for RAMS. These forces in 2000 to develop the measurement device and get the pilot study up
respondents, as well as all the adult members of their household, complete a and running.
SAARF RAMS Diary in which they record the above information. The RAMS fig- Today, the devices have been refined, and now track not only outdoor
ures have become the radio currency in SA, with results being published every media passed, but also the speed at which the respondent is travelling, and
two months. However, marketers and media planners are urged to look at these the route people travel too. “During the development of the device we stip-
results in detail, especially because the stations spend a lot of time and money ulated that we needed a pocket-sized device, which would allow us to
communicating the nuances of their core audiences to the industry, says Norman measure pedestrian traffic and taxi commuters,” says Haupt. In Canada,
Gibson, Radmark marketing manager. for example, outdoor measurement is a vehicle measurement, but here,
personal measurement will be necessary, given the number of pedestrian
and taxi commuters. “The actual fieldwork started in 2006 and we will
The RAMS diaries do however measure all radio soon have a national picture of outdoor,” says Haupt. “This will make it
possible for media planners to consider outdoor on a par with other media
listening independently of the mode of listening. formats, and allow for campaign planning.”

About the study:


In 2004, flooding was introduced, which saw all adult members of each respon- The SAARF OHMS sample is drawn from adults with mains electricity (a
dent household keeping a Diary. This procedure more than doubled the sample. sample base of 10 536 000 adults) and it forms a subsample of AMPS.
“Flooding was a good decision and definitely a step in the right direction. Although
it resulted in a more robust sample, the big question is whether it’s enough. It still
seems insufficient for an adult population in excess of 30 million. I would be inter- The NPod has been eight years in development, since
ested to know how we compare with markets like Europe and the US,” says
Gibson. He goes on to say that he believes electronic measurement would take Nielsen and SAARF joined forces in 2000 to develop
RAMS figures to the next level (the Diary methodology is outdated). “I know that
there have been talks about this, but the question is, when will it happen?” the measurement device and get the pilot study up
Paul Haupt, CEO, SAARF, says that we compare very well, and it is not true
and running.
that radio diaries are outdated. “It is still one of the most widely used methodolo-
gies in the world and in developing countries, it not only works very well, it is also
extremely cost effective,” says Haupt. Fourteen site clusters have been developed with the help of Out of
SAARF has been monitoring the development of electronic measurement of Home Media South Africa (OHMSA) members. In areas that were not
radio closely and like countries such as Australia, and have decided that it is too included in the sample, modelling was used to generate results.
early and too expensive to venture into electronic measurement at this stage. Respondents’ data was only considered if it complied with certain stipu-
“There is no doubt that it will come, but currently available systems are still in the lations (it had to be accurate, two days’ worth of data per respondent). The
early stages of commercialisation and will cost much more than the tried and device measures ‘opportunity to see’, which is the defined visibility zone of
tested methodologies now in use,” says Haupt. a particular site. This is impacted by the time of day, the size of the site, its
The RAMS data no longer includes ‘place of listening’, so there is no indica- location and whether or not it is illuminated (and can be seen at night).
tion of whether listeners listen at home or in their cars; likewise, ‘mode of listen- Pedestrian sites are also measured, but building wraps are not part of the
ing’ is not included, so there is no indication of whether listening is taking place study as yet. “We are currently out on tender for the OHMS research for
via radio or the Internet. “With the explosion of the digital age, it is important that 2009 to 2013, and are awaiting a decision. If we get the go-ahead, then
research houses start looking at those kinds of modes of listening,” says Gibson. we will look at including the wraps,” says Haupt.
The RAMS diaries do however measure all radio listening independently of the In January 2008, SAARF released the first set of results, for Gauteng
mode of listening. and KZN. The results indicated that there has been growth year on year of
Gibson also believes that some media planners do not have time to sift between 20 and 30 percent, over the past five years (indicating strong
through the RAMS figures as frequently as every two months. “This may be ideal growth of the medium). The results will be published for the Eastern and
for our stations from a programming perspective. But from a media planning Western Cape later this year, and users can get a national view of outdoor
perspective, it is simply too frequent,” he says.  by the end of 2008. 

30 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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Life stages and Media Groups Measure (MGM):


T
he SAARF Life Stages segmentation tool was developed in 2000, and MGM2: high exposure to radio, but at a lower level compared with MGM 1,
grouped the adult population into one of seven segments. This segmentation since other media come into play. TV has increased coverage. Outdoor follows
acknowledges that each of these groupings has different needs and behaviours. a similar pattern.
These can also be run relative to interests and activities, to paint a more holistic MGM 3: limited Average Issue Readership (AIR) of the AMPS newspapers
picture of the market. and magazines. Radio is at a high level, and TV has a greater reach.
The Life Stages study was followed by the Media Groups Measure (MGM), All forms of outdoor are apparent, though there is limited exposure to
which was initially developed to assist people by helping them to identify the bus shelters and trains.
best media mix to reach large groups of people, eg such as the government MGM 4: radio and TV have similar high coverage. All forms of outdoor are
that would for instance like to reach as many people as possible before a represented, though there is still limited exposure to bus shelters and trains.
national election. “It is different from LSMs, but enables you to reach the whole Improvement in the readership of AMPS newspapers and magazines.
population by using a mix of different media types,” says Paul Haupt, CEO, MGM 5: coverage for both TV and radio show a further increase. Readership
SAARF. Essentially, MGMs identify the best combinations of media to reach spe- shows a considerable increase (weekly and monthly magazines as well as daily
cific large pockets of the population (it is therefore not really intended for tar- and weekly newspapers). Outdoor extends its coverage.
geting smaller, niche groups). It comprises eight groups, the higher of which MGM 6: TV and radio have very high reach. Enhanced reading of weekly and
will focus on multiple media (these groups reach the upper LSMS, which have monthly magazines (there is a growing interest in print). The increasing levels of
access to media such as cinema, TV and the Internet). “This sort of segmenta- urbanisation see the inclusion of moving media (buses, trailers and trucks).
tion has proven very useful in mass markets. The MGM takes the impact of the MGM 7: there is evidence of some cinema and Internet consumption over the
different media into account,” says Haupt. past seven days. Print readership rises further. Reach for radio and TV remain
high. Continued growth in all outdoor types.
Description of SAARF MGMs MGM 8: all media show an increase. TV is at its highest, and radio at its
MGM 1: extensive exposure to radio (especially public service broadcasting), second highest (after MGM 1). More exposure to outdoor as a result of greater
and some exposure to TV. Outdoor advertising at stores and on billboards and, mobility. Higher income and discretionary spending sees access to the full
to a lesser extent, on taxis and minibuses. range of media options. Cinema and Internet are at a peak. 

Researching in Townships
By Wendy Cochrane, director, Consumer Insight Agency (c.i.a)

I
n our dynamic and shifting landscape, this manically morphing place that is
SA, townships have become a source of fascination to marketers. In the fallout
of the ‘Black-Diamond’ frenzy – they have become a key focus for almost
every brief.
A worrying aspect of many of these briefs is the reduction of the multi-
dimensional people that inhabit these colourful spaces into one homogeneous
‘Emerging’ or ‘Township’ catch-all. To start, the needs, drivers and dreams
differ as much in a cross-section of Soweto as they do in the entire country.
What’s more concerning about this revealing choice of descriptors is
that our industry appears to have collectively concluded that the entire
‘township’ (read ‘black’) market is either ‘emerged’, ‘emerging’ or at
least pretending to be. Strategic responses to that thinking are to inundate
the ‘target’ with aspirational messages and high-gloss goods and
premium-isation strategies to ‘trade them up’ – ready or not. Few have
awakened to the greater opportunities and more socially sensitive ideas that lie in
simply innovating and even researching what people’s real needs are – at all lev-
els of the ‘township’ spectrum – catering to the basic needs of mushrooming
‘have-nots’ survival.
Last year we began an epic study that sought to address that. ‘The NOW
project’ reveals deep insight into the diverse jigsaw of people that make up
SA, and importantly explores the connections between them.
We were asked to give hot tips for studying townships, and I guess in
conclusion the most important would be to enter with sensitivity – with your eyes
and ears open to the realities of the many different people who live there – to
leave pre-conceived ideas from the last PowerPoint presentation on your desk,
and to really listen to what people need. 

32 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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Research in Africa
A
frica holds huge potential for local brands – consider, for example, that
Nigeria has the highest number of Internet users, at around eight million Coca-Cola’s Africa technical centre
(www.internetworldstats.com). Or that urbanisation and local economies are The Africa Technical Centre was launched in Midrand in March,
booming throughout the continent. As a result, the need for research in Africa with a focus on support for the brand in Africa, including research.
is growing. “The Midrand laboratory is one of five locations selected by the
“We are seeing less and less research being carried out by big multinationals Coca-Cola Company as part of its global framework for analytical
in SA; there is a definite trend towards research in Africa,” says Bridget Fitschen, support to its operations worldwide,” says Racquel White, group
marketing director: Africa, Research International. She adds that mobile telecom- communications director, Coca-Cola Africa. “Africa is a rapidly
munication companies as well as financial institutions are the biggest drivers of developing market with a wide range of needs and preferences.
this research as well as the large multinational brands (Procter & Gamble, Matching our diverse portfolio with these needs and responding
Unilever and Coca-Cola). Countries in East Africa prove easier to research. swiftly to them is both a challenge and an opportunity.”

seven of which are fairly large. “The 15 countries we include adequately


represent Sub-Saharan Africa, and allow the marketer to compare like with like
across political borders,” adds Boniaszczuk.

Challenges for research in Africa:


The most obvious challenge is that each African country is different to its
neighbours, and the environment and markets are unique. “The quality of
fieldwork is a major issue, as it is not always up to scratch,” says Fitschen. “In
most parts of Africa, the only way to do research is with pen and paper –
technology in Africa is generally not very advanced.” Other challenges include
the lack of adequate infrastructures; language, cultural and geographic barriers;
the high cost of research due to the long distances that must be travelled, or
the translators that researchers may need to work with. “There is a serious skill
shortage among researchers in Africa,” adds Fitschen.
“We have found that research in East Africa is straightforward and possibly
easier to carry out than elsewhere,” says Fitschen, pointing to countries such as
Kenya, Zimbabwe, Malawi and Zambia.

Nielsen carries out research in the African markets


Nielsen highlights some important considerations when doing research in Africa:
 Retail channels and trade structures are different – adopt new methodologies
to capture the unique trading environment rather than a one-size-
fits-all approach.
 Consumer segmentations are different (an income bracket in one country
does not equate to similar buying power in another).
 Understand the geographic and natural barriers to accessibility,
climatic conditions hindering data collection during certain seasons and
topography.
Research International was involved in the development of the Pan African  Understand language differences for wording sensitivity and structure.
LSMs, which were launched in mid-2004. According to Joe Boniaszczuk,  Understand cultural and religious barriers for potential restrictions (ie
marketing science director, Research International, these LSMs make it possible restrictions on women and children in certain areas). These could impact
to compare 15 African countries in Africa, and get a detailed picture of living on the questions and scale interpretation, and gratuitous respondents.
standards in sub Saharan Africa. “Where AMPS-like data was available for  Understand political barriers as well as social structures.
these countries, we used that. For those countries that did not have this data,  Communication technologies differ and can impact on an agency’s ability
we conducted customised ad-hoc surveys. We now have the same data as is to make spontaneous changes to questionnaires and methodologies.
available in the South African LSMs, which measures between 50 and 80  Distances can be vast, and this will impact on turnaround time, so plan
variables. We also use the same methods and statistics to score them,” he says. ahead.
Since mid-2006, the Pan African LSMs have been in the public domain, and  Clarify expectations upfront.
are therefore easily accessed by marketers. “They were developed by a consortium  A single research supplier is advantageous, ensures standardisation and
of companies, many of which were banking groups, and insurers, who wanted comparability of results
to see a finer discrimination of the richer end of the African markets,” says  Research agencies with offices, expertise and experience in the specific
Boniaszczuk. The markets are segmented into 18 different groups, the first country are your best bet. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 33


RESEARCH 10

Researching the youth markets:


A
dults and youths are like chalk and cheese when it comes to research.  Do not ask questions as if they were at school.
Not only are their mindsets vastly different, but they respond to research  Give them a thorough explanation of what is about to take place.
methodologies in very different ways. “This population is very diverse in terms of  Use humour intermittently.
age, cognitive capabilities, culture, socio-economic status of family, etc,” says
Jason Levin, MD, HDI Youth Marketeers. However, there is a definite trend Integrating youth research
towards researching this market, because companies are realising that the “As a rule of thumb, if there is a youth component to your target market, you
youth is a valuable long-term market. “They are current and future consumers, will have to be prepared to have a separate communication strategy aimed at
and heavy influencers of household purchase decisions,” says Quentin Weldon, it, and possibly different product intrinsics,” says Weldon. This means a separate
youth research consultant, Youth Dynamix. youth research budget.
There are a few things researchers should keep in mind when working with kids: HDI Youth Marketeers encourages organisations to establish a trend-watch-
 Kids respond to emotional triggers and multi-sensory experiences. Asking ing group, tasked with facilitating and conducting ongoing research. Consulting
them to chat about the functional aspects of your brand would be redundant. and creating research societies is another option, especially useful in research-
 Kids are tech-savvy, and have no hesitation in researching brands, so cannot ing youths’ ‘headspace’.
be thought of as naïve. “They are not mini adults,” says Weldon. “This can be achieved by monitoring, observing and participating in relevant
 Kids have a short attention span, especially since they have been exposed to youth-orientated activities both in the street and online (such as blogging and
new media and intense multi-tasking. “Research surveys and focus groups social-networking) along with engaging with papers, websites, magazines,
should be brief. Research techniques and the level of question difficulty blogs, books, news, newsletters, TV, movies, radio, seminars, fairs, trade shows,
should be adapted,” says Hlengiwe Hlela, HDI Youth Marketeers researcher. customers, clients, colleagues, friends and even family members, to list but a
 Age appropriate techniques and materials are essential. Take into account few,” says Levin.
the developmental level of the respondents and segment them according to Hlela adds that a high level of inquisitiveness goes a long way. “Research
this. ”The easiest way to achieve this is to group them according to school with young South Africans needs to be personalised and localised so that
grade,” says Weldon. campaigns are relevant to them here.
 Do not mix genders in group research. Particularly among younger groups, “A youth-orientated consumable product should be evaluated sensorially by
researchers have found that boys dominate the conversations or try to the youth within the target age group, as the taste that appeals to a child may
impress the girls with their antics. It’s ok to mix race when the children are be rejected by an adult,” says Weldon.
from the same school. Says Weldon, a black child whose home environment
is LSM 6, but whose school environment is mixed-raced LSM 8, will relate to Youth research
the LSM 8 experience in the same way as his white peers. He will not relate There is a great deal of youth research available – which one to use?
to a black child who attends a township school.  The Sunday Times Generation Next study, compiled by HDI Youth
 Kids do not have a rich vocabulary, so may need to be helped along without Marketeers, targets 8-22 year olds; it will list their favourite brands and
having words put into their mouths. Visual material is helpful. will also discuss the impact of global trends; the role of the youth as
 Kids can be shy and easily intimidated; they may hide behind peers in group influencers on brands and future markets; the level of youth influence versus
scenarios or follow the crowd. “Face-to-face or pair research is a viable parental control, and their brand preferences. This year, the Generation Next
means to avoid this,” says Weldon. event will be held on 21 May, with the Generation Next supplement due for
 It’s essential to have a moderator with a strong rapport: “a good relationship publication in the Sunday Times on 25 May. For more information, visit
is key with young people,” says the HDI Youth Marketeers team. Weldon has www.hdiyouth.co.za.
found that younger mediators seem to have an easier time connecting with  HDI Youth Marketeers hosts the annual Khuza Awards, which are youth
kids. Likewise, female mediators often get the best response. communications awards. The judging panel consists of youth between 8 and
23 years of age, and they vote for their favourite advertising and communica-
tion messages. Visit www.khuza-awards.co.za for more information.
 Youth Dynamix offers its syndicated Trax studies, which include Tyk Trax (0-6
Reaching them via mobile years), Brat Trax (7-15 years) and Youth Trax (16-24 years). These studies
Research conducted via cellphone could be the next step forward for cover everything from family interactions and media/brand consumption
researchers who are trying to reach this market. The cellphone is behaviour, to financial behaviour, role models and attitudes as well as brand
becoming a personal companion that youths cannot live without. literacy and lifestyle, technology and communications, etc.
“Technology is very important in their lives. So if you can engage  Youth Dynamix offers the Youthscapes report, released three times a year,
them where they are, and show them that you care enough to go which covers current and future youth marketing trends and fads. It discusses
where they are, you will get results,” says Weldon. Brands should licences (toys and merchandise), FMCG and consumer trends, fashion,
increasingly be looking at ways to send their message to the youth via technology, new media, music and toys.
this medium. Likewise, researchers should be using this medium to  The UCT Unilever Trend Youth study, published in 2002, discusses
get through to kids. local trends in the 7-24 year old youth market. It makes a comparison
However, cellphone and online surveys are not ideal for open-ended between local and global trends, and also suggests ways for marketers to reach
questions. this market. 

34 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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The future of research


T
here’s no doubt about the fact that research will remain a solid institution, Surveys’ Igniters study, which identified influencers with large networks and a
and a bastion in the realm of marketing insights and campaign planning. positive mindset.
Media fragmentation, globalisation and the rise of consumer control has “If I was a marketer, I would rather have the opinion of the Igniters. Locally,
placed the consumer outside the reach of mass marketing research. However, marketers are not using this enough,” he says. To bring this dimension into
ad rates and the demand for unique advertising opportunities are rising. research would not require a massive change, simply a paradigm shift. “It’s a
Primarily, it seems that interview techniques and research methods will need worldview, that sees human beings as holistic and also in the context of others,
to be adapted. Yet Michelle Boehme, technical manager, SAARF, believes that with baggage that determines how they drive their lives,” says Higgs.
while there will be some changes to the measurement instruments and research
methodologies, it remains important to keep research stable and comparable
across the years. “Marketers and media planners want more information,
Ipsos Markinor’s director of Marketing and Client Relations, Heidi Brauer, agrees:
“There are two layers to this. You need solid science to underpin any research, and and they want another dimension on the markets.
then you can adapt the method or the tools to make it more relevant.”
Demographics are not a good enough differentiator, so
Research 10 takes a look at how research will evolve to cope with modern
challenges.
attitudinal research is another viable tool.”

No more phones
Landline penetration is falling (from a low level of penetration). As far as
researchers are concerned, telephonic interviews are dead. Marketers will need Going online
to develop interviewing techniques and methods that don’t rely on the telephone. This is one trend that has been picked up as a potential giant, and researchers
expect that it will be more widely used, especially when cellphones enable an
increasing number of South Africans to access the Internet.
“The industry needs to embrace a culture of using research, There are ways to get around the challenges of Internet access. Nielsen, for
example, is providing fieldworkers with 3G cards, which enable them to take
specifically qualitative research, conducted by real online research to rural areas that might never have the chance to participate
in the research.
professionals so that there is an accepted standard and rules.” Marketers are urged to keep in mind that while the Internet is sexy, it will not
work in every market. “You must marry what’s possible with what’s right,” says
Mari Harris, director, Ipsos Markinor.

Hard to reach Going mobile


Especially among the upper crust, researchers will struggle to get answers. Mobile research, such as SMSes and bulletin boards is also set to grow, espe-
“The upper-income and affluent consumer is difficult to get hold of, yet they cially because local cellphone penetration is high.
have massive economic means and are crucial to understand. They lack the
time and the patience to be lured into a 55-minute interview, so you have to The changing role of the researcher
think quite differently with them, but you also have to make sure that your Look out for a move away from simple data, towards insights and information,
approach is consistent with the interviewing techniques you employ elsewhere,” says Anina Maree, client services director, African Response. This in turn, will
says John Bowles, joint MD, NAB. see researchers becoming information suppliers and knowledge consultants.
Another factor to consider is that people are too busy to take part in research. One of the trends that has been identified is away from long-term brand
Also, crime has impacted on the extent to which people will open up to researchers, building, and therefore, long-term research projects. “I expect we’ll see quicker,
says Bowles; research will need to take this into account. Perhaps research funkier research projects,” says Tiaan Ras, manager: Marketing and Media
methodologies that require respondents to disclose personal details, such as Intelligence, Ads24.
income or home address, need to have security measures worked into them. Linked to this, expect quality control and research accreditation to get more
emphasis (double-screen CAPIs are one to watch – they promise to take quality
Focus on personal networks and relationships control of the CAPI interviewer to the next level). “The industry needs to
With consumers out of reach through mass media, marketers and researchers embrace a culture of using research, specifically qualitative research,
will need to find interesting ways of reaching their target consumers. Targeting conducted by real professionals so that there is an accepted standard and
the individual’s network is one way of getting to them without having the rules,” says Bowles.
power of mass reach. Neil Higgs, director: Innovation and Development, Look out for the increased globalisation of research agencies and brands.
TNS Research Surveys, is convinced that this is where marketers and This will lead to global standardisations in research practice, particularly in
researchers will be focusing their attention. He points to TNS Research terms of qualitative research methods. >p36

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 35


RESEARCH 10

>>p35 New segmentations


Eighty20 has raised the issue of segmentation in
Mobile research methodologies:
South Africa, and raises the point that certain seg-
mentations may be outdated.
Other segmentation tools that may prove
The future of research?
M
worthwhile: obile penetration worldwide is growing tremendously, and so is the use of mobile
 Household or dwelling (for which the definition media. As marketers increasingly turn to mobile solutions to drive sales and build
has changed) brands and brand loyalty, it is logical that the cellphone is viewed as a potential research
 Rural versus urban (rural areas are being tool. After all, it’s always on and carried close to the individual. It is a highly personal
erroneously disregarded, according to the device, with capabilities, for example, WAP and Bluetooth that make it a powerful medium.
belief that they do not have roads and infra- But more importantly, these devices could one day replace traditional research in the hunt
structures) for consumer data. The type of data that could be collected from cellphones and cellphone
 Flow of money as a result of migration and networks is far richer than simple demographics, and can include usage patterns (frequency
urbanisation with which users call certain numbers or surf the Net via their phones, which websites they
 Home language visit and when, etc).
 Age and life stage (single mums versus work- But is SMS or WAP research the right way to go? We look at the pros and cons of
ing mums) cellphone-enabled research
 Levels of literacy and education The pros of mobile research:
 Psychographics  A cellphone is always on, so you’ll get a quick response
 Income and its sources  The cellphone offers mobility, allowing the researcher to reach the participant anytime,
 Expenditure. anywhere (within the bounds of cellphone reception, of course)
 Wide reach across demographics (everyone from the LSM 2 mine worker to the LSM
Measuring TV ad viewing 10 businessman has a cellphone)
The number of homes in SA with a PVR remains  You can include everyone who has a cellphone
low, but adoption figures are promising. This raises  Immediacy – the consumer can be reached at the right moment for feedback or an
questions about TV ad viability – are audiences opinion, and results can be measured almost immediately
going to watch TV ads?  Additional information, such as GPS location and cellphone use patterns, can be
Nielsen Media Research in the USA set about collected to create a clearer picture of the consumer
measuring TV ad audiences in an experiment that  Great for reaching otherwise hard to reach customers
set the US TV industry abuzz. Cable networks  SMS can boost response rates to mobile questionnaires or surveys, especially among
argued that certain elements of their advertising the 18-25 year olds.
(for example, crawlers – the channel logo that For these reasons, mobile is great for customer feedback or customer satisfaction
slides in and out of the screen) make their ads diffi- surveys, opinion polls, ad recall surveys and diary applications.
cult to measure, so the measurement would place The cons of mobile research:
them at a disadvantage. Another argument against  There’s no guarantee that consumers will reply to survey questions or will report all the
the measurement was that live TV cannot be meas- information they need to report
ured alone – PVR viewers might actually watch ads.  It is easy for the user to tune you out
But ad agencies and TV networks had called  If the consumer has not opted in, it’s spam
for such data and metrics to be made available.  If it’s not timed right, it won’t get the (right) response
 There are no standard procedures in place for conducting mobile surveys, and no
Big research trends to look out for: recommended methodologies
 Employee workplace satisfaction  If the consumer has to pay to take part, they might choose not to take part at all
 Green trends and the green revolution  SAARF researchers contend that random sampling will not always be possible; mobile
 Africa databases do not indicate physical address, for example, and this is a problem.
 Shopper research and triggers for purchasing
decisions Will cellphones become smarter?
 Attitudes: SAARF’s team of research Research was carried out by MIT’s Media Lab over the 2004-2005 academic year to
specialists believes that attitudinal indicators try to evolve mobile devices that are not only aware of one another, but are able to see
will be included to a greater extent. They are and hear what the user sees and hears. The MIT Reality Mining Project is putting various
set to develop this in their segmentations. new technological applications to the test in this experiment, which will eventually enable
“Marketers and media planners want more the mobile device to make inferences regarding who the user likes and knows, and what
information, and they want another dimen- they may do next. Basically, this is a system of sensors which will learn patterns from the
sion on the markets. Demographics are not user’s behaviour, and while these sensors are somewhat advanced, it won’t be too long
a good enough differentiator, so attitudinal before tmobile devices will be equipped with them. (Visit http://reality.media.mit.edu for
research is another viable tool,” says Paul more information)
Haupt, CEO, SAARF. What does this mean for researchers? Imagine being able to predict the movements and
Quantitative methods will evolve: for example, behaviours of your target market as well as having access to their communication patterns
shopper observation.  and preferences. 

36 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


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Internet Research
T
here is still wide debate about Internet/broadband penetration in SA.
Website Internetworldstats.com reports that in December 2007 South The anonymity of discussions promotes more
African Internet users numbered 5.1 million.
The Internet is ideal for reaching both mass markets as well as small niche groups personal, honest responses as well as more thoughtful
of people who have formed a community around a particular interest or issue.
and in-depth answers than might be generated in
Why do Internet research?
interviews. The methodology is cost-effective and also
According to the experts, it’s cost-effective (no interviewers, mediators or field-
workers to pay) and saves time. Research results can be delivered quickly and
time-effective. Instant transcripts are an added benefit
easily, in a variety of formats. There are no geographical limitations and difficult
to recruit targets are more easily tracked. The dynamic between respondents is and time saver.
objective and everyone has an equal opportunity to participate. It is dynamic,
so errors can be addressed on the fly. Sensitive issues can be dealt with in an
environment that facilitates confidentiality and privacy, which means you’re be broken into sections to avoid the user having to scroll, and progress
more likely to get candid answers and insights. And the multimedia capabilities bars should be used. Avoid pop-up surveys.
of the Internet make it viable for test material to be shared easily. Plus, you can  Technical barriers include a lack of knowledge of computers, the Internet,
handle a large number of respondents with ease. Incentives (such as cash statistical software or databases, for example. Moderation can be difficult
vouchers or online shopping vouchers) are also easily integrated to motivate (some respondents may post responses in the middle of the night).
people to take part Likewise, it may be difficult to follow a discussion if it is not tracked
However, the global scale of the Internet means that there are unique chal- chronologically.
lenges for research (someone from the USA might be volunteering to answer  Mobile devices, such as cellphones, are increasingly becoming Internet
questions about South African products and services, for example). enabled. This will have implications for Internet research.
The Internet also allows for a variety of approaches to be used (be it surveys,
panels, web forms, chat discussion groups, etc) and tailored to meet research Evaluating online qualitative methodologies
needs. However, experts stress that the technology needs to be understood to Andrea Chemaly and Corette Haf presented a paper at the 2007 SAMRA
be used effectively; likewise, simply creating a web form with no understanding conference, entitled Deeper more candid insights faster? It’s possible with
of research is risky. The methodology should suit the research goals, the context online qualitative research. In this paper, they evaluated online qualitative
and the desired outcomes. methodologies, and found that the most commonly used tools include:
 real-time focus groups (synchronous live chat)
Issues with online research:  bulletin board focus groups or discussion boards (asynchronous, evolved
 Sampling can be a problem, considering that respondents need to have from message boards)
access to the web as well as sufficient literacy and comfort with the research  multimedia online focus group (using webcams and phones or VoIP); and
tools in question. Measures must be in place to ensure that the respondent is,  a ‘bricolage’ of them all.
in fact, a valid research subject, that there is not a bias as a result of faulty The researchers argue that bulletin boards have the most potential locally,
recruitment, and that there are not multiple responses from the same respon- given the low incidence of Internet access in SA. This platform allows the user to
dent, for example. log in and take part in the discussion at any time they wish, for as long as they
 There is no control over the respondents’ environment at the time of the wish. The discussion usually lasts for three or more days and involves between
research. 15 and 20 respondents. These respondents will visit the board at least once a
 Responses need to be managed and monitored. Non-responses or incom- day for the duration of the discussion.
plete responses are a problem, and there must be mechanisms in place to The anonymity of discussions promotes more personal, honest responses as
counter this, for example, e-mail reminders, pop-ups that guide the user well as more thoughtful and in-depth answers than might be generated in
through the questionnaire, etc. For many qualitative researchers, the interviews. The methodology is cost-effective and also time-effective. Instant
absence of body language and non-verbal cues are problems. transcripts are an added benefit and time saver.
 It requires adequate computer skills. The researchers found that online research works best for markets that are
 Anything that needs to be touched, tasted or smelled, for example, must be familiar with and comfortable using the Internet, and regard it as a part of
shared before the study. regular communications.
 For Internet research to be ethical, prior informed consent must be The researchers say that there is software available to ensure the security and
obtained, and the right indemnities secured. Incentives must be ethical too. integrity of an online session. This software also makes it easier to review and
Privacy and confidentiality must be guaranteed and made clear, especially observe the responses (it highlights new responses, for example, or prevents
where respondents disclose personal details and opinions. participants from seeing responses before they have been posted). Passwords
 The design of the research is also important. Drop-down menus and open- facilitate access and also protect the virtual discussion room. The moderator is
ended questions should be avoided; long questionnaires or surveys should therefore able to interact and manage the discussion. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 37


RESEARCH 10

Shoppers – where’s the money?


By Keith Stevens and Stephen Mawbyt, who head Added Value SA and Glendinning Management Consultants Africa respectively. They have just introduced an
internationally proven consumer:shopper joint research and activation offer.

Truth One: Shopper’s only buy to meet the needs of consumers.


Truth Two: If only 6 per cent of shoppers even write shopping lists and 70 per
cent of purchasing decisions are made at point of purchase, then the consumer
is where the need is, and the shopper is where the money is.
The shopper decides whether to buy your brand or one equally acceptable in
their repertoire.
The shopper decides whether to buy the pack size that drives your margin mix
or the one that has been commoditised by constant deep cut-price promotions.
For all of us in SA, if we are not driving brand and pack mix we are not max-
imising the value of our brands. Globally, this thinking is driving brands and
retailers to turn their focus to the shopper and the shopping environment, and
adjusting their marketing and sales spend to drive better return on investment.
Most marketers know that if they don’t fight the modern battle for market
share in-store and on-shelf, competitors will steal share fast.
SA, while a little behind in taking action on this trend, is catching up fast.
The South African market is still very much in a transition phase. Both brand
owners and retailers are trying hard to adapt to major changes in shopper
location, behaviour, attitudes and spending.
A burgeoning middle class is changing the consumer landscape and buying
behaviour. Shopper locations are changing too as many consumers migrate
from the townships and, at the same time, retailers expand into the township
environment.
The importance of integrated research and activation planning becomes
apparent when one considers the role of the brand in the shopping mission.
Make decisions about marketing and sales spend (eg Research shows that consumers are not typically brand focused in their shopper
headspace. Rather, they shop according to location based on convenience,
the mix of above or below the line to best drive brand
and then occasion and then category, often deciding in-store which brand or
product to buy.
performance to deliver the objectives you have set in the

business) and how you want to track ROI. Integrated consumer and shopper insight allows
businesses to:
 Segment and understand both consumers and shoppers in one study.
If marketers could understand specific shopper missions, shopper repertoires  Identify where potential margin and profit pools that can accelerate brand
and behaviour within the larger context of consumer insight, they would have a and market growth are.
far more powerful and strategic set of data from which to plan.  Create one, integrated marketing and sales activation and investment
Traditionally, though, marketing and sales/channel teams approach consumers agenda.
and shoppers separately, mostly commissioning separate sets of research to under-  Make decisions about marketing and sales spend (eg the mix of above or
stand them. One set is commissioned to understand and segment consumers in below the line to best drive brand performance to deliver the objectives you
the wider market, typically to drive marketing strategy, while another is commis- have set in the business) and how you want to track ROI.
sioned to understand shopper behaviour, typically to drive sales activation.  Form more mutually beneficial relationships with retailers through a deeper
However, both don’t necessarily integrate, which leaves businesses with understanding of their shoppers’ behaviours.
marketing and sales activities that are potentially out of sync, and certainly not On this last point, knowing how each retailer’s shoppers buy a specific
working in tandem. This means return on investment is compromised and for product or category means brand owners can invest in more effective trade
major brands this is a significant brake on performance and profitability. partnerships across a consumer’s repertoire of shopping occasions. It also
The issue becomes even more complicated when you consider that the means brand owners can identify where to raise or cut investment across
‘shopper’ is often different to the ‘consumer’ and people behave differently retailers to drive a better ROI for their brands.
when ‘shopping’ as opposed to ‘consuming’. Classic examples are mother and What this means is that the in-store arena is practically uncharted territory in
child categories, people buying for social occasions, gift buying, pet care and terms of making sure consumer marketing plans are going to be effectively
alcoholic drinks. So, the trick is to understand the shopper’s needs, behaviours activated for the shopper. For those brand owners who get active in this space,
and motivators, and how these link to the consumer’s needs, behaviours and share growth and ROI are the big prizes versus competitors who cannot or will
motivators. not evolve to win the new consumer: shopper reality. 

38 RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 2008


AIRPORT MEDIA

Airport marketing:
huge impact amidst the challenges
Airports continue to attract big brands, ACSA airport stats and figures www.acsa.co.za
especially those that are looking for exposure to Total passenger traffic February 2008
a market that has the cash to travel. This
includes our growing middle class, thanks to
low-cost airlines. Tourism into and within SA is
enjoying a steady rise: SA Tourism reports that
in the third quarter of 2007, total foreign
arrivals in SA numbered more than two million,
having grown nine per cent on the correspon-
ding previous period. The number of Asian and
Australian visitors is growing the most, followed
by those from the Americas, Africa and the
Middle East respectively.
And with the 2010 FIFA World Cup just
around the corner, it looks like these figures are
set to grow. Certainly, advertising in airports is
seeing growth. According to Julie Mansour,

when it will be back (or if it will be back in that


same spot, for that matter). The challenge is to
At the end of the day, if a brand advertises in a visible find locations that are suitable for relocating
existing and new clients from now until 2010,”
and relevant space at the airport, they will get the desired


says Roberts. It looks like, across the board,
media owners are looking for temporary
exposure. Ryan Cohen, Wideopen Platform opportunities, or alternative sites. The large for-
mat media positions at the airports that are sold
to brands providing blanket coverage across an
general manager, Alliance Media SA, there has marketing and advertising in the airports, says environment have been interfered with very little
been a definite growth in overseas clients and Suzanne Roberts, joint MD, Airport Media. by the ongoing construction, says Ryan Cohen,
brands signing up or extending their contracts. sales director, Wideopen Platform. Construction
“Clients know that this is the right time to Logistical changes site type platforms (scaffolding wraps, for
advertise in airports,” she says. With the renovations underway, the buildings, example) present a great opportunity for brands
Ahead of the 2010 FIFA World Cup, seven facilities, environments and services are chang- that require exposure and provide landlord’s
out of ACSA’s nine airports countrywide are ing on a daily basis. “In the international arrivals (ACSA) with an additional source of revenue
undergoing full-scale renovations (usually, only hall, there is very little in terms of adspend. The during a time where media income has gone
one airport undergoes this sort of makeover at a light box or banner that was there just yesterday down due to continued building resulting in the
time). This is having a major impact on the is gone today, and nobody can say for sure interruption of a number of media site locations.
But Ryan Roux, DMM development manager,
Wideopen Platform, has found that clients are
somewhat nervous about committing to these
projects, even on a short- to medium-term
basis. “The positions are large. And while the
media costs are not prohibitive, given the size of
the ownership that the client gets in return, the
production costs are steep. Plus, I think clients
are nervous about what is happening in this
environment,” he says. Cohen goes on to say
that while the construction site wrapping is also

40 MarketingMix I Vol 26 No. 3/4 I 2008


AIRPORT MEDIA

Total airport passenger traffic: financial year-on-year trends www.acsa.co.za

a cash stream for the contractors and developers


they are under tremendous pressure to get their
job done as a top priority, which is first and
foremost completion of their building project on
time. Often penalties for late delivery are far
greater than their share of the revenue earned
for the branding of the construction site.
As Roberts points out, the problem is that the
renovations are not exclusive to one part of the
airport. Take OR Tambo International Airport, for
example; the changes happening there are not
just within the airport building – the entire road
system in and around the airport has to be
adapted to make provision for the Gautrain.
Roux says that in this case, with more than
17 different project teams working on various
projects around this airport, it is a huge
challenge trying to stay on top of everything.
“The logistics and the large number of contractors
make it very difficult to work there,” he says. He brands that are still signing up to advertise environment, while it still one that has the
adds that Cape Town International Airport has in the airports, albeit cautiously, are indication largest viewer ship and the greatest concentra-
proved much easier to deal with from this enough for Cohen that this is still a thriving tion of higher LSM by far. “It’s also a case of
perspective. ACSA does provide media owners environment. ‘what’s going to happen after 2010’. There is
and concessionaires with a heads up on some scepticism. Part of this is the result of
changes to infrastructures, and will give them The acquisition model has also existing owners trying to secure alternatives,
first option of suitable alternatives. Cohen changed while new media owners are trying to secure
says that, as a result, his campaigns have Shamendran Naidu, site acquisition and devel- sites. “ACSA is trying to accommodate existing
not been impacted detrimentally by the opment manager, Wideopen Platform, says, owners first, but this is holding back the new
changes in and around the airport logistical challenges aside, the site acquisi- owners,” says Mansour.
environments. A recent FNB 2010 tion model has changed dramatically And then also the fact that globally – not
countdown clock installation too. ACSA have now invested in the only in South Africa – we are experiencing a
across the country’s airports ran capital outlay for media positions economic downturn and the first budget that is
smoothly. “In general, the level and are leasing these sites out to cut when times are tough is advertising spend,”
of efficiency was fine, concessionaires. Because these he says. On the flipside, the new model has
whether we were dealing are long term contract, says created opportunity for new players (including
with an airport in Naidu, many concessionaires small to medium BEE companies). Naidu also
Upington or OR are cautious to sign up, mentioned that while these opportunities
Tambo,” he says. The given the uncertainty of seemed lucrative and bringing promise of great
healthy variety of the airport marketing financial rewards, there is definitely the risk of
AIRPORT MEDIA

Total international passengers: financial year-on-year trends www.acsa.co.za

constantly delivering on media positions


managed by concessionaires.
The cost demands being made by the airports
is one issue that has been highlighted by media
agencies. Generally, says Naidu, the airports get
50 per cent of the ad revenue generated by a
site. But he says that for some of the new sites
under tender, the airports are asking for R300
000, which means that the agencies have to try
to sell the site for double that fee if they hope
to make any profits. (ACSA was not available for
comment at the time of writing).
But do marketers and media buyers know
what it takes to stay on top of the changes?
The airport environment demands that market-
ing does not impede, for example, passengers
stampeding through the arrivals or departures
lounges should not have to try to get around a
pop-up banner or a promoter handing out
samples. “The question is, do marketers know
exactly what the dynamic is during rush hour?”
says Roberts. She points to Lanseria Airport, and
the growth in domestic travel, which has been
boosted 15 per cent, thanks to low-cost airline
travel. Small businessmen are taking advantage
of this, so early morning and evening flights
are jam packed. “This has certainly benefited
Lanseria Airport,” says Roberts. “Since Kulula
increased its routes to include Lanseria, the
figures have increased from 170 000 passen-
gers per annum to 600 000 in the past year.”
And yes, the increased air travel and the
promise of newer, more modern, world-class
facilities is good news. Traditional sites are being all developments. What we do know for now is with the flow,” says Roberts. Mansour adds that
replaced with top-of-the-range light boxes, LCD that the new airport facilities and environs will media owners and agencies should be as
screens, etc, putting our airports up there be of First World standard, with a focus on proactive as possible, and must communicate
among the world’s classiest. “Increasingly, local aesthetics and luxury. “The new international with ACSA regularly. “We must also communicate
airports are attracting high networth individuals arrivals terminal at OR Tambo will be the longest with clients and pre-empt their needs,” she says.
in their private jets as well as scheduled passengers walk in the world from aircraft door to public Media planners who work from their desks
– the diversity is attractive to marketers,” says hall once it’s completed, and it will be modern will lose out – they are not familiar with the
Debbie Lea, joint MD, Airport Media. and up to date. It will be a beautiful facility,” airport environment as it is. Moving forward, it
But for now, things are somewhat in limbo. says Lea. All current media owners will have any will become crucial for planners and marketers
The airport advertising concessionaires have little sites lost due to upgrades of the terminal to do their homework and get into the airports
knowledge at present of what platforms and buildings relocated on a like-for-like basis, with to see what’s happening first hand. “The
opportunities will be available once the revamps the rest going out on tender. proof’s in the pudding, airports work as a
have been completed. It’s really a matter of Marketers and media planners are urged to media location,” says Cohen. “At the end of the
‘we’ll have to wait and see‘. Cohen says that he be patient and flexible – media owners are day, if a brand advertises in a visible and
has viewed a simulated video impression of the doing what they can to accommodate them. relevant space at the airport, they will get the
new facilities and will be keeping a close eye on “Part of the day-to-day challenge is just going desired exposure.” 

Vol 26 No. 3/4 I 2008 I MarketingMix 43


by helen mcintee EXPERT OPINION

Helen’s top 20 hits


I have a list of the top 20 ‘things’ that I have is important to us’ for 20 minutes really
learnt during my career as both a marketer and means to me that a) there are not enough
a consumer (marketers should change hats people answering the phone or b) we know
sometimes). who you are and we are answering more
important calls first.
Please note that my tongue is firmly in my
cheek as I write this. 15. Listen to your voice mail messages. A local
country club regularly informs me that
1. Check your brand name in all languages for ‘Charmaine is attending to a member (?) at
any controversial meaning (apparently the moment, so please leave your name
Pajero means ‘wanker’ in Spanish!) and number….’ (Name changed to protect
the innocent).
2. Give clear and correct instructions on the
package. (If you really mean ‘chew along 16. If you create a dependency on the compo-
the dotted line’, then say so!) nents of your product (the customer cannot
use the product without a special branded
3. Don’t confuse your positioning. (Fast food is part), please relook your distribution strategy
fast food – it’s not ‘healthy’, as Wimpy – we cannot get refills for Cross pens in
would have us believe!) Hoedspruit and nowhere in Nelspruit can
you find a stockist of Jeep batteries.
4. If you go the route of testimonials, have a
recovery strategy in the bag, in case your 17. In fact, marketers, with regard to distribution,
spokesperson falls from grace in a big kindly remember that not all your
way…. Amy Winehouse, Kate Moss and customers live in Johannesburg, Durban
OJ Simpson! and Cape Town – ‘available nationally’
should mean just that.
5. Be very careful with the use of humour in
your advertising. (Nando’s, blind people 18. While I am fully behind chain stores keeping
have feelings too!) stock for the community at large, surely not
10. If you have embarked on an expensive everyone buying lingerie in Boksburg is a
6. Be extremely careful when using nudity or relationship campaign, spell your 38DD (Woolworths).
big-breasted women in your advertising customer’s name correctly (McIntee is not
(please Teazers, not in front of the that difficult!). 19. Loyalty does not equal satisfaction! I think
children!) you will find huge numbers of disgruntled
11. Red and yellow are not good colours customers forced to put up with lousy serv-
7. Be extra careful when using both bare- for websites. It has been said that staring ice because ‘the company or individual
breasted women and attempting humour at these colours can raise a person’s wants to accumulate air miles’. It kind of
in your advertising (Landrover?) blood pressure. defeats the objective, doesn’t it? (All airlines
can take a bow here.)
8. Think about ‘infomercials’ – for some 12. Educate your customer when you discover a
extremely unfathomable reason they seem new benefit. What the heck is ‘Low GI’? 20. Finally, don’t sell products that don’t work
to work. (And I have a degree or two!) …now there’s a real gem of wisdom.
Should I dare mention names? Maybe
9. Please give your background music 13. Choose your words carefully when next time. 
a bit more thought. While holding promoting competitions; ‘Enter and win!’
on or waiting for a response, half an hour to me means ‘I’ve entered, now what Helen McIntee
of listening to Julio Iglesias, Richard have I won?’ academic director
Clayderman or waves washing on the shore IMM graduate School of Marketing
(SAA) does not improve my already slightly 14. Think of ‘speed’ as the next source of com- (011) 628 2038
blue mood! petitive advantage – after hearing ‘your call helen@imm.co.za

44 MarketingMix I Vol 26 No. 3/4 I 2008


by nicci columbine EXPERT OPINION

Effectively using technology


in contact centres
Innovative marketing to different segments query response provision is critical to ensure this
of the market is needed for companies to secure channel remains a reliable and effective option
competitive advantage. Companies should for customers. Part of this provision must also
harness every opportunity to expose their brand, include the functional efficiency of web-based
products and services to existing and potential forms that customers can complete and submit
customers. The customer service contact centre, as queries.
whether captive, as part of the organisation’s E-mail provides marketers with the scope to
operational structure or outsourced to an push direct marketing to customers, on an
independent provider, presents many untapped information and visual level. Information about
channels that companies can use effectively to customer service and support options, as well as
communicate and market to different target links to new products and services offered by a
audiences. company can be added in themed marketing
To manage customer demand on all levels, call banners on each e-mail. This assists to inform
and contact centres use creative voice, e-mail and educate customers but again constantly
and text message communication platforms to expose markets to the brand. Marketers can
reach their customers. Increasingly, integrated also include prompts for users to consider other
systems and innovative technology solutions are services offered by the contact centre, such as
being employed to provide automated and self- customer self-service that incentivises a change
service options. Additionally, as convergence in their behaviour.
generates more possibilities for integration of SMS and MMS communication is used by call
media channels, customers are being introduced also be introduced into the IVR that enable call and contact centres, although not as consistently
to a broader range of options to meet their centres to communicate with an international as voice. SMS has had its most successful take
service needs. This presents marketers with a audience. up as a result of interactive media campaigns,
spectrum of dynamic opportunities to drive Internationally, contact centres are migrating where users respond via SMS to polls and com-
exposure of a company’s brand to a new level. to self-service selection options. These offer a petitions. SMS receipt confirmation and
Voice still remains the primary medium for wider range of functional options but also response again present marketers with creative
customers to interact with call centres the world expose users to informational and promotional options to add short but clever brand messages
over. While call waiting is used to good effect channels. Whether voice or Internet based, at the end of a standard SMS response.
for informational messaging, integrated voice these channels must be carefully managed to MMS and other multimedia technologies offer
response (IVR) solutions have become the alter- avoid too many selection options and possible enhanced possibilities but have a way to go
native to lengthy call queuing, predominantly at spam messaging. before being leveraged by call centres. Certainly,
first resolution levels. This also assists to reduce While touch-tone selection activation is still marketers should be considering these technolo-
customer call termination and redundancy, a very prevalent and is transversally used, voice gies to reach and influence new niche markets.
benefit to maintaining customer satisfaction. activation selection is growing. Voice recogni- Contact centres, technology and content
IVR platforms offer the potential for tion is an integral part of this technology and providers should collaborate with sales,
marketers to capitalise on the informational does provide an element of sensory interaction marketing and media specialists to drive both
component with brand messaging and promo- for the user. However, accent, pronunciation messages and brands to emerging consumer
tional elements. and voice clarity do pose challenges in this markets now. Youth, who are quick adopters of
Specific promotional ‘banner’ messaging process and therefore these technologies are technology, will purchase products and services
around a theme, such as a public awareness not always effective alternatives to agent inter- according to their experience of brands. In this
campaign or a welcome address to a city can be action. Yet, with sufficient technical and voice sense, service is a critical enabler. 
used. Specific language, voice intonations and compatibility this is proving an extremely effi-
sound can also be used to target different niche cient service.
audiences, for example, youth markets would E-mail is a necessary customer contact chan- Nicci Columbine
respond to different tone and language from nel for call centres. It alleviates the dependency managing director
top-end corporate clients. Voice characterisation on voice and also allows for efficient time man- Columbine Communications
with the IVR is well used by cellular operators to agement by both the customer and the contact (011) 880 8137
maintain brand profile. Foreign languages can centre. However, turnaround times and accurate info@columbine.co.za

46 MarketingMix I Vol 26 No. 3/4 I 2008


PRINT MANAGEMENT

Print management:
design and print marketing
Print management is a marketing process directly, or by a print management specialist Tempo Silk benefits
that marketers abroad are fast getting to grips (the company or brand then has access to the Sappi Fine Paper Europe has developed a
with because it has the power to make print software through its print management specialist). high quality coated silk paper that prints
marketing more targeted and cost-effective. In the former case, the brand doesn’t need to and finishes like a gloss. Called Tempo Silk,
“Research shows that print remains the anchor engage with the designer/ad agency every it is a coated wood-free paper. This is
medium in the communication mix. Mixed time a design logo is needed – it is already good news for printers, because the paper
media options that use print to underpin the stored in the system and can be adjusted as and provides a smooth surface, fast ink setting
other media outlets outperform single media when needed. and drying, and scuff resistance (which
campaigns when it comes to return on marketing Vested parties (designers, graphic artists, etc) means increased productivity). Plus, it
investment,” says Graeme Futter, marketing have access to the system, which allows the enables printers to reduce their use of anti
manager: brand communications, Sappi Fine corporate identity to be organised into different set-off powder by between 50 and 75 per
Paper SA. formats (be it a packaging design, or a print cent (health and environmental benefits).
Locally, print management is still a somewhat advert design), ready for print on demand. The The benefit for consumers is the silky,
new concept, says Alban Atkinson, managing collateral is quickly and easily updated. smooth touch.

The benefit of this system for the marketer is


that the brand’s design and identity is stored in
one place and is easily accessible. Designers
aren’t harassed to deliver design elements,
which means no additional costs or time spent
trying to source the design.
Also, the brand‘s identity will remain
consistent across any design application.

Colour management
Colour-management software is another
important tool in the print-management
process, which is essential to maintaining
consistency in design. A can of Coca-Cola
should have the same red as the label on a
bottle of Coca-Cola, anywhere in the world.
Colour-management software takes into
director, Ince. “Internationally, corporates with Ince, for example, uses a digital asset man- account a variety of different materials, printing
large budgets are increasingly outsourcing their agement software package called Dress Code; processes and printers that are involved in the
print management.” its clients can create almost any print product packaging and design for a brand.
What is it, exactly? In a nutshell, it is the simply by logging into the system, selecting a
process (and the software and technology) template and changing certain fields to tailor Personalisation
that allows a brand design and its printed the communication to their brand or business. Printers now have access to technology which
application to be created and managed from Their logo or other important design elements, allows them to personalise print jobs, tailoring
concept through to execution on packaging, such as a specific colour, shape or image, simply the content or design to appeal directly to the
advertising and corporate communications. need to be ‘dropped into place’. consumer or target. The applications for this
The system generates e-mails that request technology are endless – personalising a direct
Digital asset management authorisation on the design and the budget mail communication so that it addresses each of
This is usually a software system which allows a before generating the print order, explains your consumers by first name; or printing a
brand to load and store its corporate identity Atkinson. Once the right approvals have been custom magazine with advertising messages
(logos, images and typefaces). The software given, the system will generate the print job, that are personalised to each of its readers.
might be bought by the brand or company quickly and efficiently. Local universities may soon be implementing

48 MarketingMix I Vol 26 No. 3/4 I 2008


PRINT MANAGEMENT

this, says Atkinson. Prospective students What you should look for when outsourcing your print
complete detailed profiles relating to their management: some tips from the pros
personal interests in terms of courses. The Richard Evans, chief executive, Affinity Connected in the UK, has the following tips for
system generates a personalised brochure for marketers (www.affinityprintmanagement.co.uk).
each student with specific information on the Look for a company that:
courses they expressed an interest in as well as  Doesn’t own its own presses, but rather finds printers with the right presses and
relevant financial solutions. machines for the individual job. This means that they are able to cater to your every
“With this technology, you can take direct need, and are also able to find you the best deals.
marketing much further. It’s all about the  Has a solid understanding of how to reduce waste and costs without compromising
database though. It has to be correct and on quality.
clean,” says Atkinson.  Has the ability to audit your print campaigns and identify not only ROI on previous
This technology will create new opportunities campaigns, but also the opportunities and options for changes and adaptations which
for direct marketing. “Look out for trans-promo- will deliver greater ROI and impact.
tional communication. That is, transactional  Will become your company’s or brand’s advocate in the print space, and will invest
communications that carry promotional time and energy in developing your strategy.
elements,” says Atkinson. It won’t be long
before your bank statements carry advertising The most important questions to ask print management specialists:
messages from your favourite clothing retailer  Do you own your own presses?
(after all, your bank has information about your  Does size really matter?
shopping habits and even which clothing stores  How much time do you have to spend on print?
you spend money at – it is in the perfect
position to offer those stores a prime spot on
your bank statement). excluded from making informed decisions,” costs associated with obtaining the right audits
says Futter “When used properly by a marketer and stamps of approval, for example, Forest
Eco-friendly print management or a retailer, the paper used to print all those Stewardship Council). “Having said that, Sappi’s
Another hot topic is sustainability and inserts that fall out of our daily newspapers can Triple Green range of paper uses an alternative
eco-friendliness. “Paper choice should not be relay a very positive corporate or brand message primary fibre source derived from sugar cane, a
to consumers. post agricultural waste product. The additional
Marketers should become more informed virgin fibre carries a sustainable certification and
The Power of Personalisation about the sustainability of the print medium as this option of sustainably produced, locally
study: The CMO Council’s well as the various sustainable paper options manufactured coated paper is market
key findings out there. “They should not allow ‘poor competitive,” he says.
(marketingcharts.com) environmental perceptions’ to make decisions
 Half of CMOs surveyed report having for them,” says Futter. Marketers will need to Choosing the right paper
only fair to poor knowledge of their convince their markets that the use of paper is The choice of paper is crucial to any print job.
customers (ie they have inadequate environmentally sensitive (especially when the Not only is the quality of a print job an important
customer data) paper is environmentally sound), to gain trust consideration, but the different applications that
 38 per cent said they didn’t know from the consumer. It is becoming increasingly each paper type allows for should also be
whether personalised communications important for marketers to know the manufac- carefully considered. A few tips from the pros:
had outperformed traditional mass turing source of papers and print materials as  Gloss-coated papers are ideal for jobs with
marketing tactics (ie inadequate meas- well as the origin of the fibres used in the less /text and lots of colour images
urement and evaluation) paper. “The issue of access to information on  Silk-coated papers are ideal for jobs that
 55 per cent plan to allocate 10 per paper-related topics is generally left to either the combine text and images
cent of their budget or more towards printer or the design/ad agency. Unfortunately,  Matt coating is ideal for jobs that are text heavy
personalisation in 2008 the final decision is normally made solely on  High white coating works well for jobs
 Levels of adoption of personalisation price with little or no regard to how the paper requiring exact colour accuracy
remain low decision impacts on the environment,” says  High bulk coated papers offer sustainability
 Lack of consumer data and insight as Futter. The perception of paper usage as  Look for high bulk but low weight papers
well as concerns over the cost and environmentally negative is not always accurate. for jobs that will be posted
complexity of personalisation were It’s about viewing marketing spend in a  Paper with good folding characteristics are
cited as major challenges different light based on environmental solution ideal for jobs requiring construction
 The top benefits of personalisation offerings, says Futter.  Coated wood-free paper is great for jobs that
include making offers more relevant Futter goes on to explain that eco-friendly require long-lasting whiteness and quality
and meaningful to prospects, building paper can cost more in some cases. Recycled  Brightness is an important consideration
closer relationships with them and papers are more expensive to manufacture (though this may push costs up) as well as
increasing the company’s overall (thanks to additional processes such as waste the holdout of the paper (ie its ability to
marketing effectiveness. collection, sorting and de-inking as well as the hold ink consistently). 

Vol 26 No. 3/4 I 2008 I MarketingMix 49


by lisa basson EXPERT OPINION

Innovation – an allie you


can’t afford to be without
The advertising industry in South Africa is add value to the total brand image of Telkom,
still failing to recognise the impact of technology which is under an immense amount of pressure.
and to what degree it can be leveraged. If used An innovative, strategic safety buffer, if you like.
in the right context, it can stimulate the impact From a more concentrated point of departure,
being made on consumers and thereby help in look at the reactive state in which the South
growing brand/consumer relationships and African economy has been placed due to the
appreciation as well as ROI. Eskom power crisis and the resultant innovative
Furthermore, the gap that exists between technological proposal for the implementation
marketing managers and their agencies must be of solar-powered traffic lights (a strategy
bridged. The fact is that a couple of print ads cultivated to alleviate havoc on our roads).
and/or a misplaced and misguided television ad Perhaps we can look forward to seeing
are not going make an impact on any consumer, advertising placements being fitted into the
let alone reach the desired target market. solar panels; we may see innovative thieves
Education and open-mindedness now making off with these panels, but at least the
become hypercritical. advertising will go with them and aid in creating
Just take a drive through the streets of increased brand awareness and visibility.
Johannesburg and this becomes truly evident. Another exciting example of strategic innovation
Adverts located on every second building and is the music industry’s answer to its current
every available billboard, regardless of location revenue-generation crisis, and the dawning of a
and relevance, not forgetting the random flyers whole new era of music sales and marketing.
that creep in through the car window. The Take Qtrax – ‘An advertiser supported, legal
problem boils down to not making any peer-to-peer music jukebox that enables the
significant impact or creating any sort of user to have free music downloads’. This is a
consumer resonance, which tends to be due to be ignored when creating executions and strategies most innovative application of technology and
the absence of two critical factors: i) strategy – that will truly resonate with the consumer. provides many new strategic marketing and
based on extensive knowledge of the current Brilliant examples of innovative strategic media placement opportunities.
consumer landscape, trends and understanding action carried out under the auspices of Finally, the Nintendo Wii must get a mention.
of how various facets of media are developing technology indicate that some companies are The Wii provides gamers with a new experience
and ii) innovative application to media ventures starting to appreciate the importance of innovation, and enables an interactive environment, which
based on this knowledge. technology and strategy all morphed together. some clever marketing and media people should
Poor placements indicate that although the Telkom Media’s Telkom Television application most certainly have the capability to exploit.
funds are available and marketing managers is an example of an excellent broad based Attention to what’s going on locally and
and agencies both have thousands of tools at innovative technological strategy that has also globally, creativity and metrics will result in
their disposal, their eyes are just not open wide incorporated a perspective on long-term complementing the creation of an innovative
enough to see the potential of innovative sustainability. Just think web TV, video on strategy that is market relevant and accessible.
marketing tools, even those of traditional origin. demand, satellite TV and radio, and a host of Without an innovative strategy, a brand
Industry players need to start to identify the other quality interactive services, all of which and/or client may just be lost in the clutter
new contexts and social dynamics within our provide new dimensions and avenues to com- and left behind.
environment whilst marketing, media and municate with consumers. * I have been advised recently that Telkom
technology must still remain critical points of Having said that, within the pay-TV sector Media is in the process of revising its entire
overlapping focus in the quest to establish there is nothing spectacular about the holistic business plan, as was originally presented
innovative value added solutions. Telkom television offer. BUT what impresses to ICASA 
Strategy, as having been identified as one of about Telkom’s move and makes it worth
the critical components, must be considered all mentioning is that it has the foresight to create Lisa Basson
the way from media through to creative a strategic bridge from the mother brand that is strategic saburai
innovation and the achievement of a company’s both innovative and diverse in orientation. Tom-mo-e
desired bottom line. However, from a holistic This bridge, even if relatively indirect in terms 083 317 5082
input perspective, other industry experts cannot of direct company association, may prove to lisa@cortex1.co.za

50 MarketingMix I Vol 26 No. 3/4 I 2008


by nici stathacopoulos EXPERT OPINION

In which world do we live?


You must know that your brand lives in the We now live in an ‘in-between’ world that we
‘happy marriages’ quadrant when consumers inhabit almost in transit. We move through shop-
become fans of the brand on Facebook (my ping malls, taxi ranks and coffee shops, without
most favourite social community network, am staying. Our online behaviour is similar: people
active without fail daily, even if just via my can form unconditional relationships, choose only
mobile!) those visual clues they wish to display and have
So I did a quick look around my friends’ pro- far more control over what they say.
files to see who is a fan of what (it’s an applica- If I want the consumer to buy a particular
tion you can load on your profile). Being in brand, then where better to find exact clones of
advertising the first trend I noticed is that my people who are already purchasing the brand?
friends in the industry have listed themselves as ‘For brands this means embracing the virtual
fans of many of the brands they are managing. world in the same way as the users and allow-
I wonder, if the relationship was terminated, ing the boundaries to blur when thinking about
whether they would feel the same way? communications strategies. A key implication for
Some well-known brands have these follow- brands is that observing behaviour online is
ings on Facebook: increasingly giving us more accurate insights
 Marmite – 49 000 fans into what people really think than traditional
 H&M – 42 000 fans marketing categorisations’. (Excerpt from Sex,
 Jeep – 22 000 fans Lies and Reality).
 Starbucks – 15 000 fans Proximity WW did a survey in the summer of
 Zara – 12 000 fans 2007 into brands that people trust the most.
 Ferrari – 9 000 fans The best performer was Google, which has built
 Toblerone – 6 000 fans itself by starting with the vision that making the
It appears that the most popular products world’s knowledge easily accessible to all would
include cars, clothing and alcohol! Surprisingly, than ever before. If brands are to survive they be a very useful thing. eBay, Amazon and Apple
the all popular Manchester United FC has only need to adapt (with some keen sense of also fit into this category.
3 000 fans, and brands like McDonalds, KFC urgency). As consumers evolve and adapt their The web has created the following mindset
and Nike less than 3 500 fans, yet they are con- online behaviour, brands can start to use this to migration, from
sidered the most popular brands in the world. their advantage and build even stronger  Content to co-creation
Coca-Cola has all of 88 fans while Ticketmaster relationships. And finally, this can be done  Control to collaboration
has over 150 000 fans! Clearly, the latter did overnight, or in less than a minute!  Channels to conversation
something right in the virtual space. Some facts from an international survey by  Consumers to communities.
So, moving on from Facebook, let’s look at Proximity Worldwide (documented clearly in a At the end of the day, real or virtual, it’s all
some brands that occupy ‘real’ space on Second publication called Sex, Lies and Reality, an inter- about respect. When you have a conversation
Life. These are paid for content providers which esting survey and read, produced by Proximity WW). you’re talking to an individual, not broadcasting
make living in the virtual world more realistic.  68 per cent of companies expect Web 2.0 to a crowd. And that’s why CRM (one to one
 Mazda methods and tools to have the greatest marketing) has re-emerged at the frontline of
 Coca-Cola impact on the way that their company communication tools. You also need to remember
 Dell interacts with customers. that being able to engage effectively with that
 Adidas  Nearly 60 per cent of companies say they individual doesn’t mean you should try to be
 IBM are inviting customers to contribute content their friend – they’ve got plenty of real friends,
 Reuters that explains, supports or enhances their that’s not what they want from brands.
 Nissan products, or that they plan to do so within Brands need to listen, learn and participate.
 Reebok the coming two years. In this manner, they will form good friendships
With the dawn of the new ‘immediate now’  47 per cent of companies are, or are plan- and happy marriages, in the real world! 
age, the web has become a living community ning to treat customers as co-developers of
that has ’extended beyond the virtual world to products that constantly improve in a con-
become the organising epicentre of its advo- tinual beta-testing phase.
cates’ lives’. And as such, we consumers  Microsoft has some 650 bloggers; Jonathan Nici Stathacopoulos
become more vocal about the brands we inter- Schwartz, COO of Sun Microsystems, blogs;
act with in a far more public and open manner the VP of General Motors blogs. managing partner proximity#ttp
(011) 447 7093

52 MarketingMix I Vol 26 No. 3/4 I 2008


MARKETING AT RETAIL

The green shopper


workshop report back


On 28 February 2008, industry experts
met to discuss the green shopper, and how
Brand owners and retailers should be more
brands and companies should be talking to proactive about reducing their packaging, and
them. Speakers were: Mike Freedman, founder,
investigating sustainable or renewable packaging


Freedthinkers; Tamra Veley, MD, Corporate
Image; Tessa Chamberlain, general manager: materials.
Sustainable Development, Pick n Pay; Barbara
Cooke, founding partner, TGI South Africa;
Vanessa von Holdt, an independent packaging
consultant; and Karin Kruger, Paper Sciences
manager, Sappi.

Key learnings
Consumer choice is a major factor, since more
consumers are choosing to understand and
reduce their carbon impact, and expect
brands to do the same. Veley says that
35 million Americans are regularly buying
eco-friendly products.
Moving forward, marketers will need to
segment consumers based on an understanding
of their relationship to Green. Consumers will
expect brands to be in it for the long haul
(commitment to ongoing projects will be valued
over short-term marketing ploys). We can expect
to see a major influx of brands claiming Packaging facts and figures from the Packaging Council
themselves green, eco-friendly, and/or fair-trade, of South Africa (PACSA):
says Freedman; “we’re seeing a colonisation of  Packaging industry is worth some R35 billion per annum (2007: BMI) and employs
green brands”. But Greenwashing – befuddling 50 000 people
the consumer with green jargon and nonsense  Recycling sector employs 55 000 additional people
– is not going to be tolerated (consumers are  Packaging is estimated to be around 12 per cent of the household waste stream in
savvy and will boycott the fakers). SA (PIKITUP Survey 2004)
Green is full of contradictions and muddles:  Beverage cans have a 67 per cent recycling rate; recycling industry employs 37 000
green activists are more likely to have a higher people; has collected 750 000 tons since it started
carbon footprint than the average consumer,  Fifty-seven per cent of recoverable paper is recycled; 16 per cent of paper used is
because they own cars and travel abroad by not suitable for recovery
plane. As yet, there are no legislative frameworks  In 2006, paper recyclers collected 965 000 tons of paper
in place, nor any definitions for green jargon.  R230 million is invested directly into paper recycling, where 12 600 people are
“Advocacy groups have huge opportunities employed
now,” says Cooke; organisations should be  Demand for recycled paper will grow to 1 155 million tons by 2009
grabbing the Green bull by the horns and  Glass has a 25 per cent recycling rate; the Glass Recycling Company aims to raise
establishing their own green policies and best this to 50 per cent in five years
practices. Von Holdt says that household  R50 million has been invested in glass cullet colour-sorting equipment
post-consumer waste is a major issue moving  Plastic has a 33 per cent recycling rate, including factory waste
forward, as is general waste management.  160 recyclers, recycling 172 000 tons
Brand owners and retailers should be more  Plastic (in recovered waste fuel state) has a calorific value up to 40 times better
proactive about reducing their packaging, and than coal and is being used extensively in Europe.

Vol 26 No. 3/4 I 2008 I MarketingMix 53


MARKETING AT RETAIL

investigating sustainable or renewable packaging Pick n Pay


materials. Pick n Pay has been involved in
Cooke presented interesting trends and findings sustainable initiatives since the
from local and international research that the 1980s, when the stores launched
group has carried out. TGI defines the eco- a range of green products, and
adopters as the market with an environmentally also began educating the con-
conscientious mindset. Throughout the rest of the sumer about the ecosystem. But
world, this group makes up about two per cent of according to Chamberlain, the
the population, while in South Africa, the figure is green products line was prema-
around five per cent. “They are a small group but ture: the market was not ready for
they could become advocates and opinion leaders this development, and over the
for the green movement,” says Cooke. years, the product range
dwindled. Today, the company’s
Eco-adopters are: sustainable development strategy
 More likely to be more educated and finan- has shifted; it recognises that
cially secure (more likely to be classified into stores need to become eco-
LSM 7-10) effective, rather than simply
 More discerning when it comes to the stocking green products.
brands they purchase (there is a focus on Sustainability needs to become an
organic, free-range and non-GM foods as internal process. And the customer
well as on a company’s ethics), and they -focused approach needs to adapt
are willing to pay a premium for these. to a broader concept of partnership
Convenience and pleasure also play a role that views employees, contractors
 Brand loyal and Green loyal and suppliers as priority stakeholders.
 Adopters of word of mouth and advocacy The stores’ sustainable develop-
marketing ment commitments:
 Media savvy; want brands to educate and  Promoting broad-based black
engage them. economic empowerment
TGI finds that print, outdoor, Internet and cine- through partnerships with the
ma are more effective in reaching this market than Bethlehem Farmers Trust or the
TV and radio. The local newspapers that are most Winterveldt Farming
read by green supporters include: The Independent Community, for example.
on Saturday, Beeld and the Mail & Guardian.  Reducing their carbon foot-
Locally, the supermarkets that eco adopters print through monitoring and
frequent for bulk grocery shopping are reporting, including reporting
Woolworths, Friendly Supermarket, Spar, Makro, to the Carbon Disclosure
Diskom, Checkers and Pick n Pay (stores that ranked Project – a global independent
negatively include Score, spaza shops, neighbour- non-profit organisation, to
hood markets and township supermarkets). which companies report their corporate greenhouse gas emissions. The stores are
actively identifying opportunities for reducing their carbon footprint, including pur-
Legislation and guidelines chasing green electricity or improving energy efficiency in operations and fleets. “We
Von Holdt says that the Polokwane Declaration have already made energy savings of 23 per cent in our head office, by using energy-
(2001) enables structures for the implementation saving light bulbs and changing basic operations. We changed employee behaviour
of a waste management system which con- and created awareness,” says Chamberlain.
tributes to sustainable development. It aims to  Reducing waste and energy usage, which includes a waste-oil-to-biodiesel initiative,
develop a common effort towards a goal for a which is set to be rolled out in the coming months.
reduction of waste generated and disposed of by  Promoting innovation, especially around green products and eco-effective stores as
50 per cent by 2012, and will develop a plan for well as through research which aims to reduce the environmental footprint of
a zero-waste society by 2020. She adds that the packaging.
Declaration will mean closer scrutiny of all pack-  Developing sustainability partnerships, which will facilitate sustainable sourcing, fairer
aging materials and processes; producers will trading practices and greater awareness of sustainability issues. Pick n Pay was the first
have a greater responsibility to reduce, reuse, major South African retailer to engage with the World Wide Fund for Nature’s
recycle and recover packaging. It is expected that Southern African Sustainable Seafood Initiative (SASSI), for example;
this bill will become law in mid-2008.  Implementing a sustainability communications strategy, which involves employee
The Air Quality Bill and Water Bill will also training and awareness programmes as well as consumer awareness initiatives. “It’s
have an impact. Government is working on about educating the consumer to make important decisions, so that they can pick the
these currently.  right brands and products,” says Chamberlain.

54 MarketingMix I Vol 26 No. 3/4 I 2008


nana nkosi EXPERT OPINION

New approach to skills crisis


The shortage of skills is affecting every – people don’t have experience, so they can’t
single industry in this country. Productivity, get a job. But they can’t get experience without
competitiveness and sustained economic employment. Internships can change this.
growth are compromised. We need to face the Taking in interns does require considerable
skills crisis head-on and aggressively put actions input from an organisation. Interviews should
in place, but there is no quick-fix solution. be held with potential candidates to ensure
In 2003, the Department of Labour published suitability, after which each intern should be
a document on the ‘State of skills in South assigned to a senior person in the business who
Africa’ and noted that the skills shortage in this acts as a coach. The coach coordinates the
country has long been a challenge driven intern’s work, supervises and guides their
primarily by the effect of the apartheid efforts, ensures the productive use of time and
government’s policies, but also by more Nana Nkosi provides feedback.
structural shifts in the economy. At the end of their tenure, interns should get
Reviewing where we are today, it seems that a complete evaluation report from the coach
very little has been done and this is witnessed in and should be allowed an opportunity to


very specialised industries like branding and present their own experiences. Valuable lessons
others. It’s time to stop talking about the We need to clarify can be learnt from both parties.
problems and do something. There’s no doubt there are companies out
To translate talk into action, massive input
exactly what the branding there questioning why they should invest time
and commitment is required from the education industry is and create and effort only to see their interns snapped up
authorities, schools, industry bodies and by a competitor. And it happens. But if every
companies. A total re-look at our education understanding and company invested in boosting the country’s
system is the starting point. skills base, everyone would benefit.
awareness. Most people
Exposing school learners to a diversity of From a creative perspective, there is vast raw
work environments is critical. How many of us don’t understand what talent out there. We need to identify that talent,


studied for a Bachelor of Arts degree because it expose the students to career options and
was a ‘safe’ choice? How many of us made
branding is. provide opportunities for work experience.
education choices based on the influence of our From a branding perspective, we need to
parents or our friends? The vast majority of clarify exactly what the branding industry is and
youngsters have absolutely no idea about the create understanding and awareness. Most
working world and what career choices are people don’t understand what branding is. It’s
open to them. We need to expose learners to often confused with advertising and even
the world of work and help them align their marketing professionals often can’t define or
interests to that. describe what branding actually involves. As a
There are some schools that encourage start, I would suggest that:
learners to ‘job shadow’ during one of their  Branding should be a subject choice at
holidays, but all too often this involves a two- – if we are to effect meaningful and long-term schools and tertiary education institutions
day sojourn in a parent’s friend’s company, change.  Branding agencies should sponsor an annual
perfecting their tea-making and photocopying Organisations need to work far more closely creative award for students and learners
skills! The students should be there to observe, with schools and universities to provide relevant  Specialist branding agencies should align
do and learn. career guidance and counseling. Experts could themselves with schools and universities
Work experience should be compulsory for be invited to schools on a regular basis to create and transfer their knowledge
every Grade 11 and 12 learner – and it should awareness of various industries and career  Branding agencies should provide holiday jobs,
be pre-empted by a thorough career guidance choices. Companies should hold regular open professional career guidance and internships.
programme within the schools themselves. days to expose students to their business and There is no industry in South Africa that isn’t
Learners would then be able to make more their business processes. facing a skills crisis – but we need to pull
informed course choices for their tertiary But most importantly, internships need to together and work collectively and aggressively
education. become an integral part of every company in to have any hope of making headway. 
Of course, there are some companies – South Africa.
mainly multinationals – that have programmes Companies employ people on the basis of
Nana Nkosi
in place to educate students on various career their ability and their experience. But experience Client service director, HKLM
options, but this country needs the full cooperation can’t be learnt at school or university, nor can it (011) 461 6836
from every organisation – both large and small be bought. It is gained. It’s a catch 22 situation nnkosi@hklm.co.za

56 MarketingMix I Vol 26 No. 3/4 I 2008