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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. 9/10 I 2008 I R25.00 incl. vat


MarketingMix CONTENTS

I 02 I Book Review I 25 I Expert Opinion:


Marketing Mix reviews Value Through Nici Stathacopoulos
Values, by Jerry Schuitema, and discovers
how working from the heart can take Nici explains why the consumer should be
marketing to the next level. the centre of your business universe.

I 04 I Direct Marketing I 26 I Content Champions


News 2008
Marketing Mix reports back from the CRM
Marketing Mix’s media expert contributors
Masterclass. 16 round up the content champions.

I 06 I Expert Opinion:
Keith Wiser I 32 I Expert Opinion:
Keith tries to unpick the definition of direct Jonathan Gluckman
marketing. Jonathan talks about online retailing.

I 07 I Expert Opinion: I 35 I Township Marketing


Richard Duncan Key learnings and tips from the Marketing
Richard shares his thoughts on the impact 06 Mix Township Marketing event.
of brain drain.
21
I 37 I The Chartered
I 08 I 7 Day [B]itch
Ronen Aires takes us through his busy
Marketer and the
week, and an aural cleansing. Services SETA
The Services SETA has revived the
I 10 I Brand Anatomy Chartered Marketer Designation.
All Gold celebrates 100 years.
I 40 I Expert Opinion:
I 12 I Youth Insights 08 23 Gary Nelson
Find out more about the elusive youth Gary explains how retailing in the
markets, and how you should be marketing townships should work.
to them.

I 16 I New Research I 41 I Expert Opinion:


Methodologies Janine Lloyds
Marketing Mix finds out what new and Janine stresses the importance of a good
exciting methodologies and themes are reputation.
shaking up the research industry.
32 I 42 I Experiential
I 21 I Expert Opinion: Marketing
Gaby De Abreu Highlights from the EXP African
Gaby explains how to advertise to teens. 10 Experiential Summit.

I 22 I Expert Opinion: I 44 I Expert Opinion:


Benon Czornij Nicci Columbine
In the first of a series of columns from
Hello Computer, Benon explains why Nicci shares her views on contact centre
conceptualisation should be the first step in based campaigns.
building a brand online.
43 I 46 I Marketing At-Retail
I 23 I Expert Opinion: ZaPOP’s MD, Riaan Labuschagne, shares
Jonty Fisher his learnings on the lower LSM retail
Jonty shares some tips that help brands marketing scene.
connect with the ‘prosumer’. 12
I 48 I Law Mix: Darren
I 24 I Expert Opinion: Willians and Eric Levenstein
Walter Pike
Darren and Eric explore intellectual property
Walter ponders the power of social media. rights and the 2010 FIFA World Cup.

Vol 26 No. 9/10 I 2008 I MarketingMix 1


by chris kyparissis BOOK REVIEW

Value through values


Last month I attended drupa, the world’s is evident throughout all the chapters and discus-
largest printing exhibition in Dusseldorf, Germany. sions from taxes to wealth distribution.
During an interview with a trade publication I It contains many interesting economic facts
was asked which trend had made the greatest and figures that anybody involved in business,
impact on me. It is the way in which all major from the student to the seen-it-all executive, will
stakeholders in the industry have begun to take find useful.
environmental issues to heart, from sustainable The best description of the book, however,
forests by the paper producers to alcohol-free is given by none other than the author when
and carbon-emission-reduced printing machines. he says,
With this in mind, the title of Jerry Schuitema’s ‘Again, let me remind you that this entire book
new book conjured images of carbon footprints is from the heart and an appeal to your heart.
What is truly in your heart is what will make the
best mission statement for your company and
your personal life.
The keys to success that apply to individuals
and to countries also apply to companies. The
overriding principle is that if people are taking
more than they are giving they will create deficits
and poverty. If they are giving more than they are
taking they will create surpluses and prosperity.
Having an external focus and developing people
is as important to a company as it is to a country.
Indeed it could not happen at a country level if it
didn’t happen at the level of a company which is,
after all, a cell of national economic activity.’
So who should read this book? Everybody!
Unless, of course, you truly believe that you or
the company you work for or the country you live
in is filled to the brim with high-value individuals
who have truly embraced the power of giving...
And why should marketers in particular read
this book? Because we are expected to do every-
thing for everybody from learning to speak in
terms such as ‘ROI’ when negotiating next year’s
marketing budget with the CFO to writing the
‘damage control’ press release when a product
line lets us down.
We are expected to know all and do all in our
and melting glaciers much like Al Gore’s An companies so why not get some help in choosing
Inconvenient Truth or Matt Groening’s spoof in the high road when new low roads are appearing
the recent Simpsons movie, An Irritating Truth. on a daily basis.
It turns out we really shouldn’t judge a book by If this book provides a fellow marketer with a
its cover or even by its title. few more ideas, paths or destiny-embracing
In this case, the book should be judged by its epiphanies then it was well worth the read. 
subtitle The power of giving in creating wealth.
Using his vast experience in the front line of eco-
Value Through Values
nomic communications and business consulting as
well as the University of Life, Schuitema attempts to By Jerry Schuitema
awaken the giver that is within all of us. Griffel Media
The central theme of giving more than taking R157 (approximately)

2 MarketingMix I Vol 26 No. 9/10 I 2008


ED’S NOTE

I the C P B
I recently received an e-mail from a colleague on the topic of customer
service. Basically, the e-mail told the tale of Wally, the New York cab driver
who decided to stop complaining about his situation (highly competitive
working environment, stressful conditions, etc) and start differentiating his
business. Wally greets each fare professionally and hands over his mission statement presented on a laminated
card which reads: ‘To get my customers to their destination in the quickest, safest and cheapest way possible in
a friendly environment’. Wally’s car is spotlessly clean and he offers his fares coffee or soft drinks as well as a
choice of reading material. He also offers a choice of radio station listening, and adjusts the air conditioning to
PROPRIETOR AND PUBLISHER:
the comfort of the passenger. He advises the best route to the destination and will also chat about the sights
Systems Publishers (Pty) Ltd.
Tel: (011) 234 7008 that will be passed on the journey. Wally’s approach to service has doubled his income and regular customers
have started calling Wally directly when they need a cab.
North Block, Bradenham Hall, I wish we could see more of this sort of emphasis on quality service locally (though I don’t expect this to come
Mellis Road, Rivonia, from our taxi drivers). But as long as companies pretend that service is something they only need to provide when
Johannesburg customers are happy with them, we won’t get anywhere near the level of excellence that Wally has achieved.
After a reckless truck driver had bashed in the rear left lights of my friend’s car, he called his car dealership
PUBLISHER: Terry Murphy
to find out which panel beater it recommended and endorsed to do the best repair job. He checked his car in
with this company, expecting good results but the repair work carried out on his vehicle was dreadful. The
MANAGING EDITOR:
Michelle Sturman colour-matching on the paint may just as well have been done by a colour-blind five-year-old. And the texture
e-mail: michelles@systems.co.za of the new paint was so grainy the car looked like it had acne. The repairs to the light fixtures on the car were
shoddy too. Sub-standard, at best.
EDITOR: Fulvia Becatti The car was checked in a second time (though the panel beater never apologised for the terrible work carried
e-mail: fulviab@systems.co.za out the first time around). This time, my friend arranged to leave the car with the panel beater for three weeks, while
he was away on business – plenty of time to do a good repair job, surely? He also took the service consultant on
ADVERTISING MANAGER:
a step-by-step tour of the repairs that would need to be carried out to get the car back to its former glory.
Lethabo Tloubatla
e-mail: lethabo@systems.co.za But alas, he returned to find that they had simply painted over the first blunder and had neglected to repair the
lights, as he had asked them to. My friend is now forced to fork out the thousands required to repair the ‘repair’
PRODUCTION: (insurance doesn’t cover the stupidity of panel beaters, apparently). He will also suffer the severely impacted
Spencer van Graan resale value of the car (as confirmed by an assessor). All because he decided to follow the advice of the dealer.
e-mail: I shall point out here that once the Consumer Protection Bill becomes law, cases such as these might be
spencerg@systems.co.za taken to court (because advice may well be deemed a service) and the consumer will be favoured, I have been
told. In this case, my friend would have been able to prove that he suffered financial loss as a result of follow-
EVENT ENQUIRIES:
ing dealer’s advice and then trying to fix the ‘recommended’ partner’s mess.
Daisy Mulenga
e-mail: daisym@systems.co.za For now, all the consumer can do is write e-mails and letters, and yell at someone on the phone. My friend
has written a letter of complaint to the powers that be. But do you think they have done anything about it? No.
SUBSCRIPTION ENQUIRIES: The dealership has not even deigned to respond to his e-mails and phone calls, and this ostrich approach
Busisiwe Nama (head in the sand) has lost it a very loyal and valuable customer (he’s a young, up-and-coming hot shot with a
e-mail: very powerful equally hot shot-esque network of friends). Not much ‘voorsprung’ in that, is there? But then, can
busisiwe@systems.co.za
their customers expect any more from them when they endorse companies and partners whose service is so
www.marketingmix.co.za utterly deplorable, and then pretend that thy had nothing to do with it…

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 • Mobile Solutions Showcase: 7 November 2008
• Luxury Marketing Summit: 12 & 13 November 2008
• Interactive Marketing Summit: 4 March 2009

3 461 Jan-June 2008 Sponsorship and delegate enquiries: Lethabo: lethabo@systems.co.za (011) 234 7008

Vol 26 No. 9/10 I 2008 I MarketingMix 3


CRM

Marketing Mix
CRM Masterclass
The Marketing Mix CRM Masterclass, PlayStations and laptops) and retailers are having 3. Be interesting, because this is what people are
brought together the industry’s direct marketing to adapt. looking for when they sign up to Facebook or
and CRM experts. Kim Aardweg, managing partner, BrandEQ, Second Life.
Audrey Price-Dix, senior manager: Direct says that women are the major purchase 4. Individualism is about values over intimacy –
Marketing at Cell C, says that marketers should decision-makers across categories, with huge respect and celebrate the individuality of users.
be careful when using Web 2.0 media, which is purchasing power. “Not only does a woman have And be an individual yourself.
now the source of junk mail and marketing clutter. more money to spend today, but she also spends 5. Let users and consumers participate and col-
She suggests that direct marketers apply some of her husband’s money,” says Aardweg. Yet few laborate, let them design your products and
the traditional principles of DM to new media brands take women’s needs into consideration, customise their own interfaces, for example.
and Web 2.0 to get the best results. and need to respond with advertising and com- 6. Be prepared to change
CRM is not limited to external stakeholders and munications that take into account the following: 7. Wear your logo with care – if you brand every-
customers, says Grace Harding, MD, Actuate. Women communicate to build, and they want thing, it becomes background wallpaper.
Internal marketing and media strategies are key for brands and sales people to listen to their needs Stephen Green, director, i5 Group, says that
communicating effectively with the people in your and problems and help them to decide what to CRM strategies and initiatives need to have the
organisation who convert prospects into sales. buy. Women don’t buy brands, they join them, support and engagement of all employees for
Internal communications are very measurable says Aardweg. And they have major word-of- them to work. When developing the technological
(they impact on attitudinal changes as well as mouth power. solutions that deliver better CRM for companies,
behavioural changes and these impact bottom Nici Stathacopoulos, managing partner, marketing managers should address the needs
line), and it actually doesn’t matter which medium proximity#ttp, says that in seeking out greater and priorities of sales, marketing, IT, and service
you use, as long as the message is packaged value in return for spend, marketers need to focus departments, and find ways to make the technology
right and is relevant to your staff. less on technology and more on its application. more user-friendly to each of these departments.
Actuate’s research found that most employees’ We’re almost bypassing the Internet and going But having the technology alone won’t cut it,
preferred method of communication is face-to- straight to mobile, in South Africa, adds says Green; a keen understanding of the end-
face interaction with the big boss. Stathacopoulos. user’s needs and behaviours is vital, as is having
Communicating what’s going wrong with the Women, children, teens and students need buy-in from senior execs. Business drivers and
service strategy or why customers are complaining, greater attention from marketers; these are goals must be quantified upfront and all
will do little beyond raising awareness. But market sectors that are not being appreciated for departments need to understand how the inter-
asking them to define what kind of behaviours their full worth. face will help them to do their jobs better (the
they think would prevent customers from Some of the key strategies that marketers will interface, meanwhile, must take into account the
making these complaints gets them on board and need to adopt to become more relevant in the specific needs of each department). Green
develops an understanding of how to become a Web 2.0 world include social networks and emphasises that the usability of any system is more
proactive employee. virtual games. She points to brands that are important than its functionality, so training is a must.
Issy Zimmerman, Redgewoods director, doesn’t making use of websites, Facebook groups and Thamir Hassan, CEO, TransUnion Analytic and
believe that CRM and loyalty building plans are the virtual game Second Life to get more marketing Decision Services, says that having LSM and
the way forward for brands seeking loyalty in bang for their buck. She emphasises that demographic customer data is not enough.
retail, since they don’t boost sales. Loyalty to a consumers in this space want to collaborate and Credit data offers marketers information that
store is based on location, whether or not it is the co-create with brands, and see themselves as describes behaviour, especially in terms of spend-
only stockist of a particular product or brand and being part of communities. These consumers are ing, credit potential and credit risk as well as
whether the shopping experience delivers some- online to a greater extent than marketers are ownership of property, cars, and so on. And
thing unique and exciting. When it comes to retail prepared to admit (even in developing states, the where demographics are static and slow evolving
for the youth markets, Zimmerman stresses the penetration of these platforms is high!). There data sets, credit data changes every month so
importance of the nag factor, and the emotional are, however, a few rules of engagement… trends become clear. This info can be used to
link to the desired product (especially prevalent 1. Be useful: develop widgets and other cool and understand and segment customers, and to
among kids). He also mentioned the ‘age- useful applications that will make users want to develop models to predict their behaviour.
compression’ factor, which sees kids getting older engage Hassan stresses that marketers must familiarise
much younger (10-year-olds don’t want to play 2. Become a citizen and not a ruler; contribute to themselves with the NCA, and must ensure that at all
with Tonka Trucks or Barbie Dolls – they want the environment in a useful way times their marketing is in line with its regulations. 

4 MarketingMix I Vol 26 No. 9/10 I 2008


by keith wiser EXPERT OPINION

The start of the journey


When debating with myself where to start base marketing (DM), relationship marketing
with this series of articles, I asked myself how I (RM), customer relationship marketing (CRM),
could best be of interest (and for interest also customer value management (CVM) and entity
read ‘service’) to both mainstream, ATL-focused relationship marketing (ERM). You will notice that
marketers, as well as any direct marketers who most of the above can be described by a TLA
may have inadvertently strayed into the den. which stands for Three Letter Abbreviation which
My starting point therefore goes something like is the ultimate TLA.
this. Few MMs (mainstream marketers) have an Here’s another TLA: OGS, which is not yet
understanding of direct marketing. But it is also actually recognised as a TLA but if I push it hard
my contention that few DMs (direct marketers) enough it could be. OGS stands for Other
have an understanding of direct marketing. Good Stuff, which is being stoked by the digital
Before I go on to justify that statement I need to revolution that now enables us to do the most
back up a bit. A radio spot is a radio spot. A amazing good stuff. Under this heading we have
billboard is a billboard. The same holds true for a tools like search engine optimisation and dynamic
television spot, a print ad or a cinema commercial. content engines which have turned us into direct
These types of adverts are, in fact, quite simply marketing wizards. Little wonder that those of us
and clearly defined by the channel through which at the rock face are having more problems reaching
they are delivered. agreement than the judge at a Jacob Zuma trial.
Now compare the above with a definition of Before I create the wrong impression, I should
direct marketing I came across a while ago: leap to the defence of my DM colleagues. I am
‘Direct marketing is a cybernetic relational not suggesting for one moment that as direct
marketing process which uses direct response marketers we don’t know what we are doing.
advertising in prospecting, conversion and Instinctively and with much planning and attention
maintenance.’ to detail, we do it every day of our lives to deliver


Over the years I have made several attempts to value to our clients or as direct marketers in our
understand what might be meant by a ‘cybernetic own businesses. But for as long as this lack of
relational marketing process’, but have never
Our inability to simply, clarity remains around who we are, what we do and
even got close. I have got a bucket load of other succinctly and successfully what our clear remit is in terms of operational
definitions. Little surprise then, that we have created areas in marketing, I would suggest that we will
so much confusion. communicate who we are never take our rightful place at the top table.
When confronting this issue for a book that I It still remains a mystery as to why we are not
and what we do is just one
am writing, I contacted some of my colleagues given more work and a larger slice of the
around the world. Michael Killeen, the MD of the issues we need to communications budget. We know that we are
of an agency called Dialogue in Ireland, took the the marketing snipers. Our aim is true. While
confront. There are many


fairly straightforward approach when he said: others are spraying bullets all over the battlefield
“Direct marketing is communication to a tightly others. we deliver cost-effective solutions. I have come to
targeted audience that requests the audience to the conclusion that this is the case because we,
respond in some form. If it’s to a mass audience, as direct marketers, are our own worst enemies.
it’s not DM.” Our inability to simply, succinctly and successfully
Martin Krassnig from our affiliate in Austria communicate who we are and what we do is just
took a totally different view. He said “We do not one of the issues we need to confront. There are
talk about direct marketing, but about integrated many others.
marketing. We find ‘direct marketing’ outdated Over the next few issues I hope to demonstrate
and prefer to talk about dialogue marketing.” that we as MMs and DMs have far more in
George van Nevel from DVN in Belgium probably common than our equal inability to define direct
sits somewhere in the middle. He described his marketing. 
agency as “an interactive agency that specialises
in interactive communication.” Keith Wiser
I guess part of the problem is that direct MD, 5th Dimension
marketing takes on many guises these days, for (011) 781 6396
example, simple direct marketing (SDM), data- keithw@5thdimension.co.za

6 MarketingMix I Vol 26 No. 9/10 I 2008


EXPERT OPINION by richard duncan

The great brain drain


SA is losing millions of rands worth of professional expertise every month. Fact or fiction?
Along with many African nations, SA has grants from SA. Here are the facts (sourced
been suffering from a brain drain for the past from each government’s Department of
20 years, but the degree of human capital flight Immigration and/or census data):
(the technical term for brain drain) from the  At the time of the 2006 Australian census there
country has been particularly pronounced in the were 104 120 people in Australia who were
last decade. This combined with a reduction of born in SA. More than half of them had arrived
immigrations and a more stringent immigration since President Mandela became President in
policy has meant a net loss of skills. 1994. ‘Packing for Perth’ has become slang for
Some sources, notably in government, have South Africans leaving their country.
claimed that the brain drain is over stated and  The number of South Africans living in
that an encouraging number of South Africans Canada between 1996 and 2006 increased
are returning to the country. Is this a reality, by 30 per cent.
blind hope or a misguided misconception?  Between 1991 and 1997 SA didn’t feature
While there have been efforts to persuade on the UK’s top 10 emigration list. In 1998
South Africans to return to the country, at times and 2000 the country came 8th, 5th in
it must seem like pushing water uphill for those 2001, 2002 and 2004, 4th in 2002 and 3rd
in government charged with the responsibility in 2003 and 2005.


of reversing the statistics. It’s hard to argue with  In numbers terms between 1991 and 1997
the immigration trend, the facts of which are: the average number of arrivals from SA in
 SA has lost 25 per cent of its graduates to I In a survey conducted the UK was anywhere between 900 and 1 300.
the US alone. This doubled in 1998-9 (2 260-2 955),
in SA, two thirds of the
 South Africans account for 9.7 per cent of doubled again in 2000-1 (4 300-4 755) and
all international medical graduates practicing sample said they had given doubled yet again in 2003-5 (7 850-9 635).
in Canada. This is to say nothing of their  Since 2002 the number of citizen applications
peers in the UK, Australia and New Zealand.
the idea of emigration in the UK by South Africans has steadily
 Out of all the medical graduates from Wits some thought, whereas grown past previous records and continues
University in the past 35 years, 45 per cent to increase each year with 7 735 citizenships
(2 000 physicians!) have left the country. 38 per cent claimed to granted to South Africans in 2006, an all-
 Australia, New Zealand, Canada and the UK have given it a ‘great deal time high.


account for 75 per cent of all emigrations.  In New Zealand, South Africans account for just
According to SA’s own Bureau of Statistics, it of thought. under nine per cent of the total immigration
estimates that between 1-1.6m people in pool.
skilled, professional or managerial occupations services. Affirmative action and career In a survey conducted in SA, two thirds of
have emigrated since 1994. For any country, bar stability/prospects have also been major the sample said they had given the idea of
the US perhaps, this is a substantial pool of drivers whose importance is growing and emigration some thought, whereas 38 per
qualified experts to lose. While the brain drain directly affects any remaining confidence in cent claimed to have given it a ‘great deal
may only represent three per cent of the total the protection of what to date has been a of thought’.
population of 47 million people, invariably the privileged lifestyle. I wonder how many others are now giving
emigrations are coming from the more educated It has also been said that the impact of affir- the thought of emigrating serious consideration
and skilled sector of the population. This is further mative action has seen a shift in skilled labour and just how worried the South African government
compounded by the official calculation that for into early retirement, alternative careers and is that the brain drain is far from over and in
every one of these skilled emigrants, 10 industries, and a growth in self-employment and danger of becoming more pronounced in the
unskilled people lose their jobs. That’s anywhere consultancy businesses as the displaced work- next few years and immediately following the
between10 and 16 million people’s livelihoods force seeks alternative career prospects. For some, FIFA World Cup in 2010. 
affected directly by the brain drain. this has led to the decision to leave the country.
The reasons cited for leaving one of the Whatever the statements made by the South Richard Duncan
world’s most beautiful countries? Not surpris- African government regarding the actual emi- founding partner, The Partnership
ingly, safety and security, general dissatisfaction gration numbers, one only has to turn to the Sydney, Australia
with the cost of living, the level of taxation, and governments of Australia, Canada, New Zealand +61 41 1549 791
the poor standard of public and commercial and the UK to learn the actual number of immi- richardd@thepartnership.com.au

Vol 26 No. 9/10 I 2008 I MarketingMix 7


7 DAY [B]ITCH

Ronen Aires,
CEO, Student Village

01/09/08
My alarm goes off at 6am. My first thought is why do alarm clocks have to
be so damn punctual!?! I kick into fully awake mode while working through
my first cup of coffee and chatting to our points man in Dubai, where we’re
taking a good look at some truly exciting possibilities.
I load the kids into the car and get into traffic on the way to school. By
9am I’m at the office in our weekly sales meeting, enjoying contributing to
the energy among the team as we brainstorm new concepts for clients
wanting to reach the youth market.
The rest of the day is spent catching up with key people in the business,
my inbox and a potential new client and – in between all of that –
thinking of ways we can continue to make positive changes in the lives of 04/09/08
SA’s students. I arrive back in Jozi. The crisp air, blue skies, crazy taxi-drivers, smiling faces
I head off to gym around 5.30pm while frantically returning calls from and Seattle Coffee is always such an amazing welcome. I head straight back
earlier, and then spend a few hours at a friend’s birthday dinner at Bottega to the office to prepare for an important client pitch. The team is on point
in Parkhurst. I’m home around 11pm to prep for our Tuesday morning and after a kick-ass presentation we go out for a catch-up drink.
staff-meeting, where I’m reviewing insights from leadership guru Benjamin By 6pm I have a headache that only Myprodol knows how to handle. My
Zander’s book – The Art of Possibility – with the Villagers. phone rings – I have forgotten about a client’s product launch. I sneak in
I still have so much to do before I fly out to Dubai tomorrow... and out by 7pm and then head home to sleep.

02/09/08 05/09/08
I’m at the office at 7.45am to take a quick peek at my inbox before the At 6am I enter into serious negotiations with my alarm clock and manage to
door closes for our staff meeting at 8am – zero tolerance for latecomers! secure a 45-minute extension. After dropping the kids at school, I head off
This is one of the most important meetings of the week – a chance for the to the gym. I’m in a management meeting at 9.30am and then start a series
entire team to update each other on where they’re at and where they’re of back-to-back meetings until 4pm. Exhausting – sometimes. Exhilarating –
going. The door opens again at 9am and my mental ‘to-do’ list is growing always.
exponentially. I focus on contacting my key clients, checking the monthly At 4pm I’m with my personal mentor, Merle Friedman, going through
management accounts and making sure current projects are running some work-related and personal growth strategies. At 5pm I head off to
smoothly, and of course, charging my Blackberry. I shoot off to spend some Tony at Salon Roma (one of Jozi’s best-kept secrets) for a shave and a shave
time with the kids, before heading for the airport. (beard and head).
As I get through passport control, I’m cursing the decision to take my
laptop with me – why are we treated like terrorists these days? I’ve got just 06/09/08
enough time to buy some fragrance and have a quick meal (I don’t do I sleep in until 10am, head off to the gym and then on to see Patricia, the
airline food!) Soul Doctor, to have an energy-healing session. With my chakras intact and
energy renewed, I spend the rest of the day with the kids. Thomas the Tank
03/09/08 Engine proves to be a great sedative – for me.
The plane touches down in Dubai at 5.30am and already it’s nearly 40
degrees! I go to meetings throughout the day, marvelling at the energy and 07/09/08
pace of this city. I find time to chill out and recharge – courtesy of a quick I take the kids out for breakfast and then off to the zoo, and spend the rest
snow-ski and shopping session at the Emirates Mall – before meeting an old of the day with family. By early evening I’m prepping for Monday morning,
client, recently relocated to Dubai, at Nando’s. It’s so refreshing to meet a followed by a meeting with a community organisation about an upcoming
South African who is not on ‘happy gas’ about Dubai and is looking event. Then it’s off to see Jerusalema. It’s always better on the big screen –
forward to returning to SA in the future. I’m back at the airport at midnight. and who can go wrong with a quality local production like this? 

8 MarketingMix I Vol 26 No. 9/10 I 2008


by ALL GOLD BRAND ANATOMY

100 All Gold years


Any South African will tell you that there Ingredients, dug out of the archives the popular
is just one tomato sauce brand worth dipping ‘giant bottle’ TV commercial (featuring children
their chips into. All Gold Tomato Sauce. cramming 36 tomatoes into one bottle of All
Celebrating 100 years as a top selling South Gold Tomato Sauce), endorsed by the All Gold
African icon, All Gold Tomato Sauce is well set to 100 years stamp of approval. Exciting new radio
continue its message of crammed full goodness, spots, with the revised classic All Gold jingle was
for the next 100 years. created to bring a true the sense of fun the brand
It was from humble beginnings in 1908, that is well known for.
All Gold Tomato Sauce was first introduced and Category driven print ads further increased the
has since grown to include a number of products awareness of the All Gold range, strengthening the
renowned for their quality and taste. From crammed brands core message of crammed full goodness.
full tomato sauce to great tasting jams, All Gold Advertorials and branded recipe pages appeared
continues to make ordinary food, extra-ordinary. in relevant consumer magazines, to give mums
(key shopper) the freedom to turn her ordinary
Marketing a century: meals into an everyday delicious experience.
To celebrate its 100th birthday, All Gold has The All Gold website (www.allgold.co.za) was
launched a monthly competition cash prizes to modernised to be more interactive and educate
the value of R100 000 with runner-up prizes of the great uses behind the wide range of products.
R1 000. Until November 2008, consumers It features the history of the brand, more simple
have the chance to SMS the barcode of their to use recipes, product information, brand news,
favourite All Gold product to the competition and a consumer contact form to further assist the
line. This campaign is being supported by a consumer with more tit bits and great in-kitchen
mix of TTL advertising including activations and ideas. Sineke said that the online recipe databank
strategic PRO. was a popular destination followed by the con-
To talk to All Gold’s illustrious career, Vatiswa sumer care line which was often flooded with
Sineke, marketing manager of Condiments and recipe requests.

10 MarketingMix I Vol 26 No. 9/10 I 2008


BRAND ANATOMY

Making a good brand great!!


Part of the All Gold brand success was the result
of relevant brand activations that spoke to the
hearts and minds of the All Gold consumer, who
often expressed the fact that they saw the brand
as their partner in the kitchen.
“In line with the value set of the brand”,
explains Sineke, All Gold’s partnership with Spar
in the Unite Against Hunger campaign and
participation in the All Gold Shoprite Boerewors
competition spoke to the brands commitment to
events South Africans hold dear, but highlighted
the fact that the brand is loved both inside and
outside of the kitchen.
Other innovative alternative media uses
incorporated community activations. This is where
All Gold took the opportunity to educate consumers
about food, cooking, catering and business skills
to show the clear benefits behind quality strong. Sineke says that since most consumers
products. “In essence, if quality products are consider the Tomato Sauce an every day product,
used, quality clients are retained” says Sineke. they are reporting satisfaction with the current
pricing. In fact, the larger 750ml size is the
Health kicks brand’s number one seller. “Actually, I haven’t
In terms of global trends towards healthier eating, seen a trend towards smaller packs, in fact the
All Gold Tomato Sauce can stand proud – the trend is towards brands that deliver on true
high levels of Lycopene found in the natural functional benefits, as the risk of spending on a
tomatoes acts as an antioxidant, which contribute cheaper alternative that fails to deliver are more
to the fight against cancer and heart disease. costly” she says.
“Consumers are far more savvy and are Looking ahead, we can expect All Gold to
exposed daily to information about healthy foods continue to deliver great quality crammed fill
and their important role in a balanced diet. We products, great taste that turns your ordinary
have always been proud with the fact that All meal into an extra-ordinary one.
Gold can comfortably comply with these trends
and will continue to hold the principle of quality The All Gold timeline:
at the core of our brand proposition”, says 1908: launch of All Gold Tomato Sauce
Sineke. The All Gold website carries ingredient 1959: mass production of All Gold Tomato
information for every All Gold product, allowing Sauce in Paarl and Langlaagte
the consumer to be more aware of what goes 1990: launch of TVC featuring giant bottle
into every All Gold product and ultimately into 1992: All Gold wins Gold at the Monde Quality
every meal. With the introduction of Gold Tomato Awards, in Brussels (affirmed the quality of All
Sauce Light, a clear consideration for the health- Gold products from a dietary perspective)
conscious tomato sauce lover has been catered 1993: launch of new All Gold Hot and Spicy
for; artificially sweetened, it carries less sugar Tomato Sauce variant
than regular Tomato Sauce and can form part of 2000: All Gold Pasta Pronta was launched (first
a Weighless programme. ready to eat pasta sauces on the market)
“All Gold Tomato Sauce carries no preservatives, 2003: launch of new cream based Pasta Pronta
no colourants nor thickeners. We respect the variants
consumer’s health, and will always opt for the 2004: All Gold launched its upside down
healthier option when we source ingredients,” says squeeze tomato sauce, in new packaging. TGI
Sineke. In fact, she adds, the All Gold brand Finance Week voted All Gold the No. 1 icon
recognises that it has become more important than food brand in South Africa
ever for brands to start educating consumers about 2005: the brand was again voted the No. 1 icon
healthier lifestyles and future advertorials featuring food brand in SA.
healthy All Gold recipes will promote this. 2007: All Gold was voted one of the Top 10
brands in South Africa. All Gold Upside Down
Pricing right Squeeze range is also launched, introducing five
At a time when most shoppers are tightening the new flavours to the range. 
purse strings, All Gold products are holding Article issued by All Gold

Vol 26 No. 9/10 I 2008 I MarketingMix 11


YOUTH MARKETING

Pictures courtesy: Campus Media

Youth Insights 2
The youth of today are tomorrow’s up-and- own needs and wants; as an influence market Helena Gavera, Hip2B publisher, points out
coming shoppers and business hotshots, and they (influencing the parents’ and family’s spending) that higher LSM youth may have Internet access
represent a hefty proportion of the total South and as a future market. “Teen girls particularly at home, while lower LSMs access it at school.
African population. There are the challenges of are as key to marketers as women consumers,” Seventeen per cent of 7-9 year olds have their
understanding this market and speaking to it says Khwezi Magwaza, editor, seventeen own cellphone, while 56 per cent of 7-15 year
successfully on the one hand, and navigating new magazine. “What’s cool to teen girls will often olds have access to a cellphone when they need
marketing laws and guidelines on the other. filter to all other consumer groups as the it. Ownership for LSM 5-7 is at 81 per cent, while
According to Youth Dynamix, the under 24 measurement of what’s in.” among LSM 8-10 it’s at 95 per cent. For 19-24
market numbers 25.6 million, 53 per cent of the year olds, ownership is at 86 per cent. And MXit
total South African population. “Not only does Marketing to the youth is gaining in popularity, according to the
the youth market represent more than 50 per cent Marketers are not speaking to the same type of research, with one in three 13-15 year olds listing
of SA’s population, statistics generated by the teenager they spoke to a few years ago, and this is MXit as one of their primary uses of a cellphone.
Sunday Times Generation Next 2008 survey in great part thanks to technological developments. Youth Dynamix’s research has also found a
suggest that the youth market makes tens of Internet and mobile use has climbed steeply. marked increase in the number of youth accessing
billions of rands of purchases annually and Youth Dynamix has found that Internet usage has the Internet through their mobile phones. “This is
influences considerably more,” says Jason Levin, doubled from nine per cent in 2005/6 to 18 per going to play an important role in providing
MD, HDI Youth Marketeers. cent in 2007/8, among 10-12 year olds, while access to the Internet across the LSM brackets
Andrea Kraushaar, youth strategy and research for the 12-15 year olds, Internet usage is up 12 thus creating more convergence,” she says.
director, Youth Dynamix says that: “From a potential per cent to 32 per cent. Lower LSMs (LSM 5-7) Meanwhile, HDI Youth Marketeers’ research
point of view, the youth market should be report a lower usage of Internet compared with has found that tweens, teens and young adults as
considered as three markets in one.” As a primary the LSM 8-10 youth. “Fifty three per cent of a whole, visit websites and social sites more than
market, that has its own money to spend on its 16-24 year olds are online,” reports Kraushaar. twice a day. The results also show that there is a

12 MarketingMix I Vol 26 No. 9/10 I 2008


YOUTH MARKETING

correlation between age and Internet usage (the


older they are, the more often they are online – Stimulii’s top tips for
although young adults are online slightly less than youth marketing
teens, probably because of time constraints).
More than 40 per cent of youth surveyed report 1. Don’t speak down to them
that they use their cellphones to access the 2. Allow them to co-create the product
Internet regularly. 3. Engage with them on the platforms
The constant access to media and technology they naturally turn to
has taught youth to become serious media 4. Never assumer that you know more
multitaskers and as a result today’s youth are about them than they know about
defined as having continuous partial attention. In themselves
other words, they are watching TV, but they are 5. Be novel in your message
also sending text messages and chatting to 6. Don’t try and trick them (once you
friends on MXit at the same time, and are do, you’ll lose their trust)
probably also listening to music via an iPod. 7. Account for how sophisticated they
Their attention is never exclusively dedicated are
to one medium. 8. Youth are fickle
This has created a new imperative for brands – 9. They are socially aware and environ-
not only do they need to be available in the new mentally conscious
media space, but they need to be available 10. Youth are more well rounded than
2
across a variety of media at one time. Hip2B , for the previous generation and they
example, is available across various platforms expect to be heard. For example, a
outside of the print title – website, electronic large amount of Obama volunteers
newsletters, mobisite, brand ambassador are below the voting age
programme, TV show, roadshows and so on. 11. They trust their opinions and value
“Although print offers a unique experience, youth themselves, and believe their
have never been the biggest readers of maga- opinions are valid and deserve to
zines in any market,” says Gavera. be heard
The good news is that technology is enabling 12. They live in both the real and virtual
brands to reach a wider youth market. “With such space and cultivate their virtual
huge disparities in wealth and living conditions personalities
there are still many differences between socio- 13. Be careful not to impose advertising
economic groups in SA. Nevertheless, technology on them.
is increasingly drawing them together,” says Fiona
Thompson, editor, National Geographic Kids.
Brands are warned that the new age of media Furthermore, youth today will not be defined
has created new expectations. The youth expect by the brands they choose to buy or wear. “But
any communication to be a two-way exchange. there are brands that they love and these have
Brands are also reminded that the youth are very become so much a part of their worlds that they
sceptical of traditional marketing and advertising, cannot picture life without them,” says Levin.
filtering out what they don’t want. “Marketers There exists a dichotomy between the youth’s
can’t dictate how or when their product is reliance on brands and their cries to be freed
engaged with, rather the teen decides how it fits from the tyranny of brand conformity. “This is one
into their lifestyle, which could be very different to of the key tensions in the youth marketing space.
what the marketer had intended. Brands will have To coin a term, ‘ContrAddiction’ doesn’t speak to
to share values with their consumer rather than a new-age rebellion so much as it does to a new
broadcast their own,” says Gavera. attitude in youth consumer behaviour,” says Levin.
Youths aren’t even conscious of their addiction to
Brand Speak contradiction, because this dichotomy of choice
The youth market is exceptionally brand con- has become so much a way of life, he says. After
scious, but not brand loyal, says Richard Perry, all, with so many brands available to them, the
operations manager, Student Radio Networks. youth can choose to align themselves to a cluster
And they demand quality and service. He goes of brands rather than just one or two brands.
on to say that brands need to be in their direct One way to get the youth more involved with a
means of consumption, and should offer them brand is to encourage them to co-create the
further information and total honesty. It’s about bran, and help them to customise the brand and
perceived value, after all. the brand experience. “Even if young people are

Vol 26 No. 9/10 I 2008 I MarketingMix 13


YOUTH MARKETING

interested in the same thing the world over, they The Campus Media Media and Promotion Survey 2007
also strive to customise any experience so it’s Key findings:
uniquely theirs,” says Magwaza.  SMS and e-mail are the most preferred form of competition entry
And there remains, as always, the appeal of  Response to promotional pamphlets is still positive (but this has declined slightly).
celebs and characters that entice the youth.  Students respond to SMS promotional messages only if the information is relevant to them.
“There is a new zeitgeist with the popularity of They all check the small print and the cost of sending a reply to competition promotions
characters such as Hannah Montana and those via SMS. They will not enter if the cost of entry per SMS is more than R3.50.
in High School Musical,” says Gavera. Though  Promotional staff attract students, but they prefer to approach a promotional stands versus
she says that there has been a move away from being approached by a promoter.
celeb endorsements to role models and brand  The prizes and incentives that students most like to receive include cash, CD vouchers,
2
ambassadors (Hip2B has a brand ambassador T-shirts, CDs, cellphone airtime, cellphones and clothing.
programme, and the brand ambassadors play a
role in influencing readers and students).

Spending patterns
What are the youth spending their allowances
and incomes on? “It varies depending on what
they need to cover with their disposable income
– clothes, toiletries and entertainment. Of
course, a new addition to their budget is their
cellphone and airtime,” says Gavera. But, she
adds, their spending habits, attitudes and brand
choices are not determined by demographics
alone.
Youth Dynamix reports that the top five items
that the 16-24 year olds are spending on are
cellphones/airtime, clothing, fast food, snacks
and cool drinks. “As they get older, the 13-15
year olds’ spending patterns start reflecting
that of their older young adult counterparts,”
says Kraushaar.
As Perry explains, yesterday, students spent on Members of the HDI Junior Board of Directors
needs, today they spend on wants.” If value is
perceived in a product or service they will exponentially and made both the company with Legal
make a plan to get it by whatever means the product and the individual very wealthy,” says The South African Advertising Standards Authority
necessary. From working for it or using Perry. Levin agrees: “Even though the youth spend (ASA) recently published the Food and Beverage
manipulation to get it. They spend the money over R80 billion per annum, only 40 per cent of Code, which seeks to regulate the advertising
they make virtually immediately to get something urban youth have bank accounts. This indicates of food and beverage products to children
they want,” he says. that the banks are not appealing to the youth (particularly under the age of 12 years). This is in
While initially, this market was thought to be sufficiently for whatever reasons.” response to trends abroad, which sees govern-
recession proof, research shows it is not. Cellphone networks have not capitalised on ments stepping in to regulate advertising to kids,
Consider that they are also impacted by rising the youth market’s intense dependence on after research found that TV advertising does
food and fuel prices, and because their parents mobile communications. But for them to do so, have an impact (albeit small) on children’s food
are feeling the pinch, they are having to make they would need to make their services far more preferences. Of course, there is also parental
more of their fashion and accessory purchases affordable (as MXit has done). influence, family eating habits, school policies
themselves. “Since this market relies on dispos- In developing youth marketing strategies, and the habits of friends and peers, etc which
able income from their parents, we do see a drop says Levin, marketers need to stand by their play a role in the child’s food preferences.
in sales when the economy is in a decline,” says brands and also find out (not by asking them- “Today’s children are increasingly marketing and
Dene Strain, publisher, seventeen. selves) whether their brands can play in the cool branding savvy – they are even learning about
space. “If they can, youthdom becomes their advertising in primary school,” says Kraushaar.
Marketing opportunities oyster, a la Guess. If, realistically, they are never The ASA Code is going to impact not only on
With the youth growing up fast, there are gaps in going to be cool, then they should focus on marketers and advertising, but will also on TV
the market for new products and services that brand and product intrinsics and make those advertising sales. “In terms of the new legislation,
meet their needs. “Existing financial products are interesting to young people,” he says. It is also no official regulations have been passed by the
all about loans, while investment is completely key to have a strategy that understands the government, meaning that we are operating in a
ignored. I believe that if a student starts an invest- growing up process of young consumers; strategy self-regulatory environment,” says Kraushaar. The
ment portfolio at 18, by the time they are ready should adapt to their physical and psychological ASA’s guidelines are relevant and assist marketers
for retirement the investment would have grown developmental stage. in communicating with children in a way that is

14 MarketingMix I Vol 26 No. 9/10 I 2008


YOUTH MARKETING

ethical and balanced, but also recognising them as


consumers in their own right. “It is recommended The Campus Media 2007 Student Lifestyle Survey
that ethics become a sustainable part of marketing The Campus Media Student Lifestyle Survey was completed by students aged 18-24. These
and communications to the youth,” says Kraushaar. are some of the key findings from the report:
 41 per cent live in a student residence.
Media choice  Compared to results from previous surveys, respondents indicated that they intended to go
A few years back, the experts were predicting overseas for either very short periods (6-12 months) or for very long periods. Says Adrian
doom and gloom for the media, especially where Goosen, national sales manager, Campus Media, in previous years, students had been
youth markets were concerned. Yet research going overseas for one or two years to gain work experience, while now it seems they are
shows that the youth do engage with traditional opting to do shorter job or travel stints so they can return home and start working.
media (TV, in particular has not seen major  Their largest concerns are around finding a job and funding their studies.
declines in youth audiences). However, these  The majority of respondents get income from bursaries, some from part-time employment,
traditional media need to play by the new media and some from an allowance. Indian and white students are more likely to get income
rules (especially newspapers, who are no longer from an allowance and from jobs.
the trusted news source, and whose content is not  79 per cent watch TV regularly. Most-watched TV programmes include the Bold and the
appealing to youth, as the World Association of Beautiful, Days of Our Lives, Isidingo, E! on DStv, Top Billing, the History Channel, Cartoon
Newspapers discovered in its 2007 research). Network, National Geographic channel, Liga Soccer and Boots & All.
Radio stations are still pulling in youth audiences.  The magazines that the majority of students purchased monthly include SL, Car, Femina,
5FM was voted the ‘coolest’ radio station in the Sports Illustrated, Fair Lady, Top Car, Men’s Health and FHM.
2008 Sunday Times Generation Next survey, and  Beer is the favourite alcoholic beverage (followed by readytodrinks and spirits).
while CDs (álbéit not necessarily bought ones)  Coca-Cola, energy drinks and water are the most consumed non-alcoholic beverages.
are still the most used source of music, radio Goosen says there is a growing awareness of healthy eating and lifestyles, so there has
comes in as the second most used source of been a growth in the consumption of wateras opposed to fruit juices and sugared soft
music. The survey also found that the youth listen drinks.
to radio daily, with more than half of respondents  Favourite radio stations are: 99.2 YFM (Gauteng), 94.95 East Coast Radio (KZN), and
listening via their cellphones, and 30 per cent KFM 94.5 (Western Cape).
listening via Internet streaming. Claimed magazine readership:
Student radio is growing and is coming of age,  White: You magazine, People, Financial Mail, Huisgenoot, Vroue Keur and Time.
says Perry. The student radio stations have  Black: Drum, Time, heat and people.
become more professional and competitive, and  Indian: heat (low magazine readership reported).
are attracting large (and loyal) audiences. And,  Coloured: Vroue Keur, huisgenoot and heat.
contrary to popular belief, students do not  Jeans are the favourite item of clothing.
necessarily migrate away from these stations as  Favourite clothing brands: Diesel, Billabong, River Trader and Levis
they get older. “Eventually, the market that used  Favourite footwear brands: adidas, Puma, Nike and Reebok
to listen to these stations will migrate to some-  Make clothing purchases at Edgars, Truworths and Markhams primarily (most have
thing that suits them, but this does not happen as accounts at these stores).
quickly as one may think. That’s why you will find  97 per cent of students own a cellphone and 85 per cent of students use prepaid pack-
this loyal audience in student broadcasting and ages. Vodacom, followed by MTN, Cell C and Virgin Mobile are the networks that most of
radio in general,” says Perry. He says that there the students use. 68 per cent pay their own cellphone bills (though Goosen makes it clear
are three groups that listen to the student stations. that they may be paying this with their allowance money).
The younger group includes scholars that aspire  45 per cent of students have a car.
to university student lifestyles. The second group is  89 per cent of students have access to the Internet (primarily via residence Internet access
the 18 to 24 student life stage market, the majority or Internet cafes on campus).
of the audience. They have more expendable
cash than ever before.
“In the past this market was one that simply
had enough money for alcohol, petrol and
banned substances, while driving bashed-up
‘70s cars. Today, when you go to campuses
around the country they are wearing designer
clothing, driving expensive cars, using top of the
range technological gadgets and simply seem to
know what they want then go out and get it,”
says Perry.
The third market makes up those from early
working class to nearing retirement. 

Vol 26 No. 9/10 I 2008 I MarketingMix 15


RESEARCH

Online research:

Not
there
yet
The research landscape in SA is very Crosswaite, semiotics specialist,
dynamic, and keeps up with global trends for the Added Value.
most part. As marketing moves from a model of In fact, both qualitative and quantita-
talking to consumers with a one-size-fits-all tive research stand to benefit from online
approach towards a model of consumer control, methodologies. Michele Sohn, director
so marketers need to find ways to engage more HKLM Confluence, believes that when
fully with consumers in a dialogue. “Research done right, online research can
needs to adapt to this new reality and assist be very powerful. She points to
marketers in this ongoing process,” explains brand-sponsored bulletin
Neil Higgs, director: Innovation and boards or social networks,
Development, TNS Research Surveys. which encourage con-
sumer interaction with
Online research: viable? researchers who observe conversations or stimulate He goes on to say that since low-cost solu-
Moves towards Internet and mobile data debate to generate new ideas, for example. tions are available abroad, he doesn’t believe
collection are two of the foremost methodological However, Sohn stresses that there are ethical that cost is a barrier to online research. “In fact,
changes that are driving research forward, concerns around this; there have been cases of the Internet has become the most widely used
according to Hendrik van Vuuren, marketing researchers using the bulletin posts and chat site data collection method employed by Millward
sciences director, Millward Brown. discussions of consumers as research data, Brown in the US market,” he says.
In the US and the UK, among others, online without disclosing to the participants that she was “Pure research still needs to be sampled
research is not only viable, it is a growing trend. In doing research or getting their permission to use throughly and in the abscense of a cellphone
fact, many of the new research methodologies their responses as research input. “There’s a database/listing, it’s pretty impossible to sample
being developed abroad are Web2.0 based, says difference between lurking and listening in, and at all,”says Heidi Brauer, deputy chief executive
Higgs. Online research is considered cost-effective creating a conversation,” she says. officer, Ipsos Markinor.
and has been shown to yield rich responses in Online research might still be thought of as The issue is how to convince people to
qualitative surveys. “Online qualitative techniques quite radical, since one has no idea who is participate, says Sohn. “The average response
are growing because they are less intrusive for really on the other side (they could be a rate for online research– except for online panels
respondents and can be more honest and run competitor), says Sohn, and this may be another – is about one per cent. This is comparable to
over several days or weeks. People respond in reason why we have seen limited uptake of online telephonic research,” says Sohn. Gifts and
their own time and a great richness arises. The use research locally. incentives remain an issue. Sohn has found that
of multimedia is growing in qualitative research as Some of the challenges of conducting online in general, research participants are less likely to
we realise that people engage all their senses, not research are similar to the challenges for other be attracted to competitions with prizes with a
just their cognition in processing ads and packs,” research methods. The first obvious challenge is value greater than R5 000 (there is the perception
says Higgs. Blogs, bulletin boards, web diaries limited Internet penetration, but some argue that for that the more valuable the prize, the smaller the
and online competitions can all be used by targeting the upper LSMs and the youth (who have chance that they will win).
researchers to collaborate with consumers, and Internet access at school, university or their cell- The level of participation in online research
create conversations and experiences that yield phones), online is viable. “While it is growing rapid- correlates directly with two major factors, she
juicy insights. “Consumers around the world are ly in SA, from a practical research point of view, says. The first is the level of passion that the par-
sharing more and more of their lives online. For online research is only really viable within the higher ticipant has for the brand or company that the
insight, this is a huge opportunity,” says Dr Inka LSM segments of the market,” says Van Vuuren. research is about. Harley Davidson >p18

16 MarketingMix I Vol 26 No. 9/10 I 2008


RESEARCH

>>p16 owners, for example, are very likely to Shopper research


respond to surveys about their favourite brand Understanding how consumers shop and how
than non-owners. they decide which brand or product to buy and
The second major factor is the level of connec- why has become significant. “This is a growing
tivity that the participant has with the brand; this area of research all over the world. In particular,
refers to a physical and a conceptual connectivity. the emphasis is placed on watching how people
Think about the gym that you visit everyday for a behave, rather than asking about their behaviour,”
workout versus the greengrocer whose store you says Higgs. He reports that TNS is using
visit once a month: you are more likely to ethnographic and observational techniques as
respond to surveys about the former. “For business well as regular questionnaire surveys to determine
to business or staff research, you cannot do better what happens in the shopping environment.
than web-based research,” says Sohn. “For Meanwhile, POPAI conducts Marketing At Retails
business-to-consumer research, it depends on the Initiative (MARI) research abroad, which equips
audience, and interestingly, it has nothing to do with the average shopper with glasses that are fitted
LSM, and everything to do with the level of with tiny cameras. These cameras capture not
interest in the brand and its connection to it,” only where in the store the shopper travels, but
she says. also how they interact with each product or brand


and all the marketing material in the store. This
We see the cellphone as a key means of contact therefore measures engagement with marketing
and brands.
for research. But it will also become the key means Currently, POPAI SA is looking for sponsorship
and the support of retailers and POP marketers to
by which people link to the web as technological
establish the study locally.
convergence grows. This means it will be a key Researchers are also turning to research into


market barriers (factors that prevent a shopper
heavyweight medium in the future. from buying the brand they want to buy, so they
are forced to buy a competitor brand). This type
Social networks seem to be something of a of research is helping merchandisers and
super-trend, and some researchers argue that it marketers to refine their channel management
does have potential as a research tool. “We are and identify how competitors are gaining share in
beginning to tap into this, but it needs care and areas where their own brands are vulnerable.
someone highly familiar with the particular net- Shopping diary methodologies are allowing
work speak,” says Higgs. “There is a concern that researchers to collect information about the
sometimes people will take on a persona that is catchment areas and average basket spend of
quite false. Tread carefully for now.” consumers across various regions of SA (and
Look out for the use of virtual worlds as therefore, across various socio-economic
research environments and tools. groupings too). Through this research, they gain
insights into where they shop, when, for which
Mobile research items as well as why they purchased what they
Research via mobile will grow hugely, say the did, where they did.
experts. “We see the cellphone as a key means of
contact for research. But it will also become the Re-segmenting consumers
key means by which people link to the web as Another trend in research is that of re-segmenting
technological convergence grows. This means it consumers according to need states, which
will be a key heavyweight medium in the future,” understands that the individual is one consumer
says Higgs. in one situation, but a whole other consumer in
Dr Crosswaite also believes that we will see an another. “This has led to the situation where new
increase in the number of mobile research studies. research techniques that can show how brands
“As the lines between the PC/Internet and can leverage occasions rather than people will
mobile phones blur, we’re anticipating that these have a greater ROI than current conventional
technologies will be used more and more to methodologies,” says Higgs.
connect with and understand consumers,” she says.
However, as Brauer points out, mobile questionaires The non-linear consumer
are limited in terms of length as well as by virtue of Previously, it was believed that consumers were
the fact that the respondent must pay to reply. passive and that their decision-making is rational
Control of the sample is also an issue. and linear. But Van Vuuren says that there is now

18 MarketingMix I Vol 26 No. 9/10 I 2008


RESEARCH

>>p16 a stronger push towards understanding and observational insights are used to understand where the tested ad is placed in the middle of a
the role of neuroscience in a research context and decode culture. This understanding can be programme and mixed in with other typical ad
and how the human brain responds to external further used by brands to adapt positioning clutter. Viewers punch their vote directly into a
brand and advertising stimuli. messages to suit local markets and encode their wireless device and the quantitative data is used
“The realisation that humans are non-linear communications with cultural cues that reinforce to make recommendations.
will have a huge impact on research in the next and deliver the brand’s messages.
few years,” says Higgs. He believes that in SA, Still to come
there is still much work to be done to change Internal marketing and Looking ahead, we may expect to see research
marketer understanding of how the mind really employee satisfaction taking on new areas of market interest, such as
works with regard to marketing messages. Employee satisfaction is an interesting topic, and the green revolution and impact of CSI. “I still
“Many marketers, advertisers and researchers one that is attracting more attention perhaps think rural market research is neglected,” says
cling to outdated models. The key issue is not to because of the Generation Y trends (this Higgs. A focus on brand experiences will also
measure marketing interventions directly, but to generation is renowned for job hopping and come to the fore. “People seem to be moving
focus on their direct effect on the brand. This can dissatisfaction with certain elements of the away from the pure accumulation or
only be done by recognising that people make traditional workplace). Being able to measure consumption of things and towards a desire to
very quick decisions using their instincts – they employee satisfaction means understanding what gain experiences. Communications, promotions
use shortcuts termed ‘fast and frugal heuristics’, keeps good staff for longer and how to exploit and experiences that really engage and connect
and this is completely changing the face of and engage their passion in the workplace. Sohn with consumers are a focus,” says Dr Crosswaite.
research and how we ask questions,” he says. believes that there is no difference between staff Research will also become more about
Questionnaires that assume that the respondent and the consumer (they are both consumers, after observing consumers and engaging with them in
thinks rationally are not valid according to the all). She points to the growing trend towards their world instead of asking them questions.
new thinking. research that tries to align staff behaviour with “Technology will also allow us to let the consumer
Researchers are tapping into the needs of customer expectations, and tries to predict which direct the research; social and networking groups
consumers and their non-rational thinking by personalities will create the best staff group when online, mobile cameras and voice- or video
using games and sensory tools. “Currently, insight put together. recordings that can be uploaded in live time, all
tools are also asking less about the ‘why’ of Internal research is often not given priority observed and analysed by a professional will
behaviour and using more sophisticated methods status, says Sohn. “Internal research surveys often provide an interesting and potentially a more
to help people articulate their emotions, don’t respect staff’s time,” she says. Too often, detailed window on consumers’ lives,” says
experiences and expectations of categories and companies create negative behaviours by making Dr Crosswaite.
brands,” says Dr Crosswaite. internal surveys compulsory and/or boring, time The focus on determining ROI and
consuming and repetitive. Sohn believes that accountability looks like it’s here to stay.
The consumer as a whole short format surveys with a mix of quantitative “Measurability is a major challenge for mar-
person and qualitative questions, designed in a delightful keters,” says Keith Stevens, MD, Added Value.
The focus on wellness as a holistic concept is and entertaining way, would get a far better “However, the challenge is often that the ele-
based on the thinking that to be well, a person response from employees. ments that contribute to brand growth are often
must be in good physical health as well as run and tracked by different departments in a
emotionally and mentally healthy and balanced. Measuring TV business. The key challenge is to move from
“There is a growing realisation that people’s well- The DStv-i return path audience measurement, functional/silo tracking and measurement
being drives the way they interface with the world. which is set to be launched locally in early 2009, (vertical) to joined, horizontal tracking and
This has become a new focus of staff commitment will offer audience measurement for the measuring from the point of manufacture to the
studies, particularly,” says Higgs. Marketers find fragmented audiences of the many digital point of purchase.”
that the emotional state of the consumer has a channels now on offer. According to Brenda He believes that smart brands will move away
fair impact on their behaviour and purchasing Wortley, director of Oracle Airtime Sales Strategy from long-term tracking, to consistent tracking
decisions. So understanding where a brand fits and Research Division, December will see OATS of just one or two critical key performance
into their emotional mindset may unlock clues recruiting 4 000 DStv homes. “At last, we are indicators. “Especially given the current economic
about how that brand can create a simulated getting to viable electronic capture in a field climate, there is a strong focus on the return on
emotional response and therefore drive the where there is instant transfer of data to head media and marketing investment. More and
desired behaviours. office. Until now, the risks of in-field electronic more CEOs are demanding that marketers justify
A further focus on cultural insights seems to be data capture have been high due to poor battery the marketing investment they are making and as
on the hot list. According to Dr Crosswaite, life, the possible loss of data if a unit is stolen or a result we are seeing the emergence of a range
understanding how culture influences people can lost, damaged or becomes faulty, plus high of short- as well as longer-term modelling
unlock enormous insights for brands. “Typically, capital and insurance costs,” says Higgs. techniques,” says Van Vuuren.
consumers can tell you about how they feel now Ipsos Markinor’s new advertising research unit, Look out for new methodologies that
and what they might like to tweak in their world. ASI, will offer clients TV advertising research, layer consumer and market research with
However, most people battle to articulate unmet amongst other copy testing solutions. Its Next*TV elements, such as financial data, to deliver
needs and usually can’t predict what will happen offering allows for final-stage testing, which takes ROI analyses, brand portfolio optimisations
in the future,” she says. Semiotics, ethnography place in consumers’ natural viewing environment, and so on. 

20 MarketingMix I Vol 26 No. 9/10 I 2008


EXPERT OPINION by gaby de abreu

Tapping
into teens...
Teenagers: a breed all of their own with that must complement your identity. Your brand
heavyweight spending power to tap into… if you must be as comfortable and relevant in these as
can speak their language. This unique group of they would be in the more traditional spaces of
consumers can be one of the most fickle or most TV and billboards – and far more selective in the
loyal – depending on how you relate to it… media it chooses to promote itself.
The teenage market is particularly complex. The occasions when teenagers will interact
While being aspirational, it is driven largely by with your brand are similarly critical. You have to
key individuals within the group who dictate what maximise interaction with your brand in specific
is ‘in’ and what is ‘out’. It is also one with spaces, looking at how the occasion can
numerous sub-divisions; depending on enhance your brand messaging. If your brand of
anything from age to music. Creating brands clothes or trainers appeals to 14-year-old boys
teenagers can relate to means you need to know who spend most of their time hanging out together
exactly who you are speaking to – and can in townhouse complexes with their cellphones
correspondingly tap into their paradoxical moods, and bikes then it’s important that your brand can
reaching them in non-conventional ways to which supply them with cellphone games, wallpapers
they can relate. and ringtones that they will interact with when
The starting point for any teenage marketing they’re by themselves and when they’re with their
or branding activity is to know your brand: its friends. You also have to tap into their fast-paced,
personality, message and values. Understanding highly stimulating world and Generation ‘Y’
these will give you a much better idea as to which characteristics – in other words, keep them
group of teenagers you will be able to tap into. It entertained; highly stimulated; and wondering


will also help you identify opportunities to adapt what you’re going to dish up next.
your message slightly for others in these segments. The teenage market will always remain a
You will soon see if it works for both the sporty and By knowing your paradox as it is simultaneously desperate to fit in
the cool groups, for example, and how it can be and belong to something. The trick when it
tweaked or adjusted without losing its core identity.
teenage market intimately comes to branding then is for your brand to
Nike is an example of a brand that has managed – who they believe they create the ‘something’ they want to belong to:
to do this; creating clothes and accessories that aspirational yet exclusionary at the same time. In
can be worn for sport and are equally as trendy are and, more importantly, short, teenagers are looking for brands that
when worn in malls or when ‘hanging out’. the environments in which essentially mirror themselves and their
Environment is therefore vital when it comes to complexities; something they can relate to. By
teenagers – looking specifically at how to create they place themselves, knowing your teenage market intimately – who
a relationship with them in their environment; they believe they are and, more importantly, the
knowing exactly where the teenagers you want to
you can successfully tap environments in which they place themselves,
talk to spends most of their time – in movies or into this high-powered you can successfully tap into this high-powered
music shops, for example. Profiling is critical. You consumer segment and potentially make them
need to know about trends in this market and
consumer segment and customers for life. 
aspirations, and tap into these. This means you potentially make them


have to look at how they communicate with each Gaby De Abreu
other in their environments and ensure that your customers for life. Creative director, The Switch Group
brand will work in these situations. MXit, the (011) 706 9370
Internet and anything mobile are critical media gaby@switchdesign.co.za

Vol 26 No. 9/10 I 2008 I MarketingMix 21


by benon czornij EXPERT OPINION

The first step to building your


brand online: conceptualisation
With the Internet providing access to an company’s target audience, it is important to
even deeper pool of knowledge and resources encourage this audience to engage with the site.
as well as businesses providing competitive serv- We call this human activity on a site ‘sign-
ices worldwide, it has become more vital than posting’. It is the act of guiding your users to
ever for a company to differentiate itself and its demonstrate certain behavior in order to achieve
brand online. your objectives.
Recent advances, such as Web 2.0 have Most companies understand that the
allowed for innovative and exciting ways for content of the site needs to reflect the company
companies to engage their customers and attract or its objectives. However, to sustain human activ-
new ones. But before any of this can happen, the ity on the site, it needs to appear to be intuitive to
company is required to create an innovative browse.
website concept. Creating an ‘ease-of-browsing’ impression
In July 2008, there were over 175 million relies on a thorough understanding of your
websites, and with users becoming ever more market through key insights so you’re aware
Internet savvy, website conceptualisation is a vital of what they are looking for. Should a user
part of the online branding process. deviate from the defined path to attain other
What distinguishes a powerful piece of information, it should be a very simple
communication from the ubiquitous online procedure. This is called ‘usability’ and is one of
clutter is a deep understanding of the digital the critical success factors of a website.
environment, coupled with experience in the For conceptualisation to work, the concept
marketing field. This allows a brand to be needs to be relevant, unexpected and tap into a
effectively conceptualised and an effective digital universal emotion. A good example of this is the


campaign implemented. website of film services production company,
The idea behind a website often defines the Moonlighting (www.moonlighting.co.za).
user’s experience with the brand and, more Creating an ‘ease-of- The creative and conceptual nature of this site
importantly, sets it apart from the competition. browsing’ impression appeals to its target audience of international ad
The choice of concept will distinguish your agencies seeking to shoot their adverts in
brand from the competition. You need to be able relies on a thorough low-cost locations. The company feels its key
to engage your target audience in a meaningful distinction from its competitors is how it stages its
understanding of your
and rewarding manner, while simultaneously productions, hence the visually captivating and
delivering your defined objectives. market through key engaging website. The concept was to venture
A question a marketer needs to ask in order ‘inside the mind’ of Moonlighting to explore its
to develop a successful website concept is: how
insights so you’re aware service offerings.
best can a website serve my business objectives? of what they are looking If a marketer has a website but wants to add to


For a marketer to find the best digital agency for it, conceptualisation will not really be a part of
a company’s needs, a thorough understanding of for. this process. However, if a pre-Web 2.0 site
business objectives is vital. Only then will you be needs to be updated to incorporate new innova-
in a position to seek the right partner to facilitate tions in light of rapidly developing technological
your vision. innovations, a redesign of the website may be
Most companies are looking to either generate required. This will allow the site to accommodate
revenue from their website or to use it as a tool to additional functionality, perhaps a video player,
drive a powerful brand experience to assist in and engaging the user in a more dynamic and
their positioning. Web developers often specialise interesting manner. 
in key areas of technology. It is therefore vital to
understand the company’s web strategy before without embellishing it with unnecessary fluff. Benon Czornij
approaching the various agencies to develop a Steer clear of agencies that try to sell you con- Founder and technical director
successful conceptualisation of it. cepts that aren’t really necessary or applicable to Hello Computer
A digital agency that understands these objec- your brand’s fundamental conceptualisation. (021) 488 1380
tives will help you to create a successful brand Other than being intimately aware of the benon@hellocomputer.net

22 MarketingMix I Vol 26 No. 9/10 I 2008


EXPERT OPINION by jonty fisher

Power to the people:


The new era of blogs and social network marketing
In modern marketing, word of mouth is more memorable and individual interaction.
crucial to the success of your product or service. Added to this, brands can leverage the
It’s accepted that 10 per cent of us influence the natural endorsements given through groups
purchasing behaviour of the other 90 per cent – and personal associations with brands, almost
a scary thought when you consider the potential functioning as free market research into their
power that this 10 per cent wields for your brand. specific consumer set.
Enter the era of the ‘prosumer’. Blogs, social But, how do you successfully leverage your
media and citizen journalism are all real-life brand within a social network?
examples of prosumers in action as consumers 1) Create a brand profile
now take a dual role – producing and consuming Register your own brand group as the ‘official’
information for themselves and countless other offering on the relevant network. You can
decision-makers. Bloggers and avid social then make access to related groups and
networking users now hold the key to marketing communities, inviting them to join this sanctioned
success, providing their own, sometimes brand group.
misguided, opinions on the way you are selling, 2) Continuous communication
marketing and advertising your brand. And it’s To ensure your community is constantly up to
just the beginning… date and involved, make sure that relevant
content is always available and a host of topics
Blogs offered to allow users to interact personally with
Since the launch of Blogger in 1999, blogs have the brand.
revolutionised the way we communicate. Blogs 3) Encourage collaboration
have reshaped the web, impacted politics, shaken 3) Sponsor the entrepreneur Run a contest to devise a new campaign slogan
up journalism and enabled millions of people to Rather than purchasing banner advertising on the or solicit entries for the next advertising spot – it
have a voice and connect with others. site, why not interact with the blogger and pro- will enable users to interact on a new level, while
And while many marketers still discount the rel- vide them with some real assistance? Potentially providing cost-effective creative straight from your
evance of blogs, remember that the globe’s offer to pay for a radical overhaul of the site or target consumers!
largest blog (from China) gets 50 million page an upgrade of the existing technologies – this way 4) Register your own network
views per month – that’s on par with our own you are able to forge a relationship with the A very big idea but one that is sure to win you
Media24, which gets as many views across its blogger, while allowing for the natural integration prosumer praise. Represent the interests of your
whole network. of your brand into the blog. consumers by starting a social network, for
But, in this foreboding world of citizen 4) Support a section example, a fantasy league network for a sporting
journalists, how do tech-savvy brands maximise If a site overhaul is out of your financial range, goods retailer.
their potential with these prosumers? How do why not consider sponsoring a popular section or
companies go about protecting their reputation suggesting a new one? Your brand or product The people formerly known as the audience
while ensuring their products are garnering could provide the up-to-date World Cup results have transformed. Blogs and social networks
positive praise from the world’s most influential on a soccer site or you could provide prizes for have become vital tools in the arsenal of
bloggers? the most regular commentators or best responses marketers worldwide and any brand looking to
1) Find the opinion leader to a specific posting. promote and protect itself should seriously
The best way to find prosumers or prominent consider the influence these resources have on
bloggers is through blog aggregators such as Social networks consumers’ purchasing behaviour.
Technorati (http://technorati.com) or Afrigator The world of social networks is a daunting one The new era of prosumers is here and
(www.afrigator.com). Search the brand category, for marketers. At last count, MySpace.com had they’re brand savvy, marketing aware and
then the blog directory and, if possible, over 300 million users, Facebook boasted over prime for the taking. Ensure your brand
frequently used tags. 62 million active accounts and business networks harnesses the potential of these new ‘super
2) Connect with the blogger such as Plaxo and LinkedIn featured over 15 consumers’ before you are left behind choking
It’s now time to make contact. Don’t pretend to million profiles each. on the dust… 
have followed the blog for months but rather Social networks hold huge opportunities for
state your intentions upfront – you feel that your brands. The personal, interactive nature of Jonty Fisher
brand is perfectly represented by the social networks means that brands have the Head of strategy, Traffic
blog and would like to pursue some possible chance to present themselves to users in (011) 425 7111
marketing options. their own, personal space – allowing for a jonty@trafficonline.co.za

Vol 26 No. 9/10 I 2008 I MarketingMix 23


by walter pike EXPERT OPINION

Why social media should be


impacting your thinking
South Africans are connected to social media. way we must think about markets and how we
If you are connected to the Internet you are think about marketing and branding, and how
very likely to be participating in social media. we engage in the market conversation instead of
Even right now if you have a cellphone in your trying to manipulate or instruct it.
pocket you’re connected to the Internet and Even the way we think about media must
social media. shift; the focus on getting eyeballs, viewers or
SA has one of the highest penetrations and readers is changing to seeking effective
usage of cellphones in the world. International engagement. Opportunities to see is becoming
ad servers rank it in the top three countries inter- a redundant concept as consumers actively opt
nationally as consumers of mobile advertising, out of advertising they don’t wish to view.
just as once we were one of the top five most Social media enables us to identify our target
connected countries. If you are a marketer and markets to the unit of one, the individual. This
you are ignoring social media you may already implies that the widespread use of mass media
be a dinosaur. Perhaps not quite a dinosaur yet, will continue to reduce in effectiveness not only
but certainly perched precariously on the edge because of the lack of trust consumers have in
of the tar pit! the process of brand manipulation, but also
Technology has created the ability for people because products and services can be
to connect, any and all people and on a customised, personalised and delivered
massive global scale. It has also allowed economically and profitably to market segments
information to be accessed, accumulated, that were previously just too small to identify.
stored and shared in a manner we could never Social media also changes the way we
have dreamed would have been possible. coordinate, motivate and manage our staff, whom


What is more, we don’t even need to look for we can see as urls in an organisational cloud
information – it finds us through sexy RSS feeds. rather than a block on an organogram. Check it
The control of information has always been an Social media also out; your business probably has staff pages on
important source of power. In the commercial Facebook, where your employees are hanging out.
world information about products and services
changes the way we There are many who feel that social media is
has been carefully managed by the business itself. coordinate, motivate and just another buzzword, a fad soon to fade away
Brands have been built and positioned through like many others have. Web 2.0 and Web 3.0
advertising and carefully controlled PR spin for so manage our staff, whom are not just technology, they are a response to a
long that we think that’s the way things are, that fundamental change in the way society connects,
we can see as urls in an
business owns its brand. how information is understood and how percep-
The social web has effectively shifted the power organisational cloud rather tions are being formed. Adapting and changing
in the transaction. The customer is now irrevocably to them means a complete rethink in the way we
than a block on an


in control; information, opinions and thoughts understand data, information and customers. It
are now all in the public domain, people are organogram. also means adjusting the way we coordinate and
sharing their opinions with not only their immediate build businesses. It even forces a change in the
circle but with the world. The most important way we measure organisational performance.
market conversation now is not between the For the real marketer this represents a
business and the customer, it is the conversation huge opportunity to deliver value, because
between your current customer and your prospective nothing else is going to cut it in the new
customer. The power in the transaction is being marketing landscape. 
transferred to the market, which is talking among
itself. The power of controlling what the market Walter Pike
reads is gone, and will never be back. now with the consumer. “Consumers are begin- faculty head: Marketing and
A.G. Lafley the chief executive of Proctor and ning in a very real sense to own our brands and Advertising, AAA School of
Gamble recently commented on the necessity of participate in their creation, we need to begin to Advertising
marketers to realise that the power has moved learn to let go.” walterp@aaaschooljhb.co.za
out of the hands of brand management and is What this does is fundamentally change the (011) 781 2772

24 MarketingMix I Vol 26 No. 9/10 I 2008


EXPERT OPINION by nici stathacopoulos

Engaging the customer


and seeing the results
Patrick Collister (the founder and publisher days to be taken in by the creative speak alone.
of The Big Won and editor of Directory – worth They do research and look carefully into what
subscribing to) recently said ‘if you lack or proof else is on offer and then they spend their money.
that direct is the ugly sister of advertising, come So no matter what you think, make sure your
to Cannes’. offering is the best and make sure your
We are leading up to Christmas and are campaign engages. And to quote Bob Thacker
living in tumultuous times; global economic from Office Max in the USA, ‘if you don’t have
meltdowns, political instability and a fluctuating big bucks, you had better have big ideas!’
exchange rate make it harder to engage the I was recently scanning through some
consumer. After all, when there is little money marketing books for information, and came
left over for necessities – let alone luxuries– across a number of case studies which detailed
marketers need to become more focused on Lehmann Brothers and Merrill Lynch – it does
their consumer in innovative and engaging worry me when I read how enormously successful
ways; seeking out those who will buy and those their efforts were, to see their downturn now. It
who will refer and, most importantly, those who highlights the fact that marketers need to ensure
will come back. their efforts are sustainable (and yes, I under-
A friend of mine recently bought her daughter stand the global effects that have caused the
a brand-new Mazda2. When I asked her why, downturn of these companies, but if marketers
she said they shopped around for a while, on want to continue justifying their existence to the
and off line, but the reality was the service at the bottom line and to their boards, they need to


dealership was what engaged them; she and ensure their efforts are long term!)
her daughter were treated like serious buyers, Finally, a note on retailers. Having recently
who might come back. My friend has never
Traditional campaigns attended the RAC retail conference, I was
owned a Mazda before; but her daughter has the will drive shoppers into enthused to see how companies such as Office
potential of buying at least five Mazdas in her life Max and J C Penney still use catalogues and
time to suit her changing lifestyle. stores, but they have less segmented mail campaigns to retain their most
I am selling my house. I have been for four money than they had last valuable and most growable customers.
months and signed a sole mandate: I was Christmas is around the corner – where will our
absorbed by the sales speak of the agent and its year; rising interest rates retailers concentrate their marketing budgets?
marketing promises. It lived up to its marketing Traditional campaigns will drive shoppers into
promise but not to its service promises. In these
and inflation mean their stores, but they have less money than they had
trying times, one would think it would engage me disposable income is lower last year; rising interest rates and inflation mean


and update me and keep me close so that it their disposable income is lower than ever. Yet in
could sell my house and I would refer it to
than ever. spite of this, there are still many consumers who
friends. To the MD’s credit (which is why I am not won’t leave a store because a product is slightly
naming the company), when I e-mailed my agent more expensive than that of the one down the
and copied the MD out of immense frustration, is, your back-end needs to work. A client of ours road; if the service is excellent and the range suitable,
he called me within minutes to apologise – no recently put a major campaign on hold as the IT they will shop with you as they have done in the
excuses. When she called me all she had was infrastructure is not ready. Frustrated as we all past few years. They need to buy gifts and if they
more excuses – how can you excuse bad service? are, we know this is the right decision; going to have been loyal to you over the years, your Christmas
The mandate has expired and the other agents in market knowing your prospect will be inconve- catalogue will entice them. Now it’s up to you to
the area have swooped – three have accepted to nienced the moment they call to take up the offer keep them there, and keep them coming back. 
sell my home with no mandate and with my will damage the brand, and in the highly compet-
commission structure request. It’s not about the itive arena it plays in, the one thing it has is its Nici Stathacopoulos
sale, but about the service. Let’s see if one of brand’s reputation. managing partner, proximity#ttp
them can show me estate agents are about service! A great one-to-one campaign cannot sell an (011) 447 7093
No matter how good your marketing campaign inferior product. Consumers are too savvy these nici@proximityttp.co.za

Vol 26 No. 9/10 I 2008 I MarketingMix 25


CONTENT CHAMPIONS

Content champions
2008
Marketing Mix asked a few media experts to give us their pick of SA’s best Nazeer: Olympics coverage on SuperSport.
media based on their content mix. The experts in question are Trish Guilford,
Associate Media Director, The MediaShop JHB; Nazeer Suliman, MD, Ryan: SuperSport. Broadest range of sporting events and the only full
Universal McCann; and Ryan Williams, group MD, NotaBene. coverage of international sports. The rights win for certain local soccer
Marketing Mix also made its selections. properties is a coup.

The criteria: the contributors were asked to state which media in each Marketing Mix: SuperSport. Self-explanatory.
category has the best content mix relative to its target audience or reader.
Audience ratings and circulation figures were therefore not considered. Magazines
Best sports magazine
While this is not a scientific benchmark, the results of this survey indicate Trish: SA Sports Illustrated. This
which media have been successful in creating content that meets the needs magazine covers all sports and with
and interests of its audience. These are the media that are top of mind for its Afrikaans edition, offers a cross
media planners. over for male and female sports
fanatics. It also has the opportunity
The opinions expressed herein are not the opinions of Marketing Mix to carry a front cover which is
magazine. Any regional skewing of results is due to the fact that contributors pertinent to that specific month’s
are Johannesburg based, and this was purely coincidental. sporting highlight which is always a
big draw card for ensuring sales.
TV Within the Touchline publishing
Best reality content group, this magazine has the
Trish: SA’s Biggest Loser. Appearing on e.tv and an inspiration to a number opportunity of getting international
of South Africans – a good choice and a local production to boot. material but has a good balance of
local content which is vital to ensuring
Nazeer: Zola 7. A local and tremendously successful reality show with a the status quo.
recipe that empowers and uplifts!
Nazeer: SA Sports Illustrated. Still
Ryan: American Idol. This is easily the most successful reality property the only unrivalled general interest
globally in terms of viewership, content spinoffs and multiple media platform sport magazine in SA. Great depth
tie-ins. and coverage of mainstream sport.

Marketing Mix: SA’s Biggest Loser. Locally produced and focused on a Ryan: SA Sports Illustrated. Broadest
major issue: obesity. This programme gets people thinking about healthier coverage of sports in SA. Although
lifestyles, while entertaining them. some other sports magazines have higher circulations, my view is that SA
Sports Illustrated deserves the award because of the breadth of sporting
Best sports content content it delivers, at a consistent level of quality.
Trish: SuperSport. For any sports
fanatic, SuperSport offers so much Marketing Mix: SA Sports Illustrated. For covering not only the favourite
that even avid sports watchers are local sports, but also a mix of specialist sport interests. This magazine is a
torn between stations. Covering both local and international sports, and with cover-to-cover read for the sports enthusiast since it offers investigative
the new DStv Compact offering, it does cater for all. features as well as news snippets and entertaining reads.

26 MarketingMix I Vol 26 No. 9/10 I 2008


CONTENT CHAMPIONS

Best women/family interest magazine


Trish: Women & Home and Real Marketing Mix: Men’s Health. Perfectly aligned to the guys who subscribe to
Simple. Two wonderful magazines or purchase it.
that cover women’s interests as well While women are not officially the target market, it attracts a fair number of
as home topics – so two magazine female readers who use it for health tips.
categories rolled into one.
Best general interest magazine
Nazeer: Real Simple. A clean read Trish: You/Huisgenoot/Drum. One
with pragmatic advice. An ‘organic’ has to take all three into considera-
option to the countless other tion as together they undoubtedly
‘artificially fertilised’ magazines with offer the best reach into the local
extra additives. market. The content may not be
everybody’s cup of tea, and if you
Ryan: Shape. Consistently good ask around most people say they
coverage of female lifestyle, while don’t read the magazines – but we
encouraging a healthier and more all know if you want a response to
balanced approach to living a competition these three maga-
(especially as it pertains to content zines come out tops every time!
around a broader look at a healthier
woman and does not promote Nazeer: Drum. An improved
artificial values for what normal formula and mix with substantial
women can aspire to and also content
places value on other aspects
beyond relationships, fashion and Ryan: Popular Mechanics. Although
‘size-zero’ physiques). circulation is small and has been
reasonably flat over time, the con-
Marketing Mix: Move! Because it tent is unique for locally published
really has hit the target market and titles, and of a high quality com-
has found itself a niche serving a pared to similar international titles.
market that has otherwise been This content is also important
ignored. Real Simple has also because of the broader issues in SA
found its own niche; excellent with regard to science and technol-
format, with short articles and bite- ogy development – titles like Popular Mechanics serve a crucial role in stimu-
sized chunks of valuable informa- lating interest in tomorrow’s scientists.
tion. We love the green issues.
Marketing Mix: Drum. An iconic magazine that has clawed back its iconic
Best men’s magazine status. And You, a great general read, addressing real issues. It doesn’t need
Trish: Best Life. A magazine that cover mounts to sell, cuts across all LSMs and offers a wide mix of content
has broadened the men’s maga- from recipes to affordable fashion trends as well as celeb news, advice, kid’s
zine category without cannabalis- content, and motoring reviews. Even intellectuals sneak a peek at this one!
ing any specific title too much.
Best Afrikaans magazine
Nazeer: FHM. For pushing the skirt Trish: De Kat. An outstanding upmarket Afrikaans magazine with fabulous
up higher. A true guy’s magazine editorial and layout. It doesn’t offer a huge reach, however, it is a very glam-
orous magazine of very high standards that many products should be asso-
Ryan: FHM. Although the con- ciating themselves with.
tent is decidedly ‘laddish’, FHM
consistently delivers content that Nazeer: Visi. Still tops – amazing editorial and design.
appeals to its sector of male
audiences, which is evidenced by Ryan: Tuis. In a competitive home
its strong circulation performance décor sector (over the past five
since its launch. Unlike some years), Tuis has carved out a strong
major competitors, the content niche in this market by delivering content that reframes the standard
retains a degree of freshness in approach in this sector, that is more ‘everyman’ solutions to home décor
every issue, despite being based and investment.
on common (and static) editorial Marketing Mix: Visi. Such a beautiful magazine! People pick it up for its
pillars over time. aesthetic value and very valuable niched content.

28 MarketingMix I Vol 26 No. 9/10 I 2008


CONTENT CHAMPIONS

Best youth magazine


Trish: National Geographic Kids. A Ryan: Business Day. Remains a
fabulous magazine that does a definitive daily business content
great job from an educational resource and is generally the default
perspective while making it fun and resource for South African businesses.
interesting without kids realising that
they are learning something. Also a Marketing Mix: Daily Sun, for obvious
great magazine for projects. reasons. And The Times, targets the
younger reader with a quick roundup
Nazeer: None. Not SL, not Y, not of all the daily news one needs to
Hype. We wait expectantly. know. Plus, the newspaper refers
these readers to its website which
Ryan: No clear preference as so boasts rich multimedia that appeals to
many titles in this market have the title’s readers. It’s just perfect for
closed down. today’s generation.

Marketing Mix: seventeen. Aside Best weekend


from content that is perfectly tar- newspaper:
geted to the needs and interests of Trish: Sunday Independent. The
the average 17 year old girl, it also environment is not as cluttered as
boasts a website that offers all kinds some of the other weekend papers,
of fun and relevant content and the editorial makes for interesting
applications, as well as major inter- reading and whilst the print order and
activity with the seventeen brand. Plus, the seventeen Urban Scouts are the readership is not nearly that of the well
ideal link between the real world of the 17 year old and this magazine, used weekend newspapers, it offers
allowing seventeen to stay on top of its game. an interesting market in the three main
metrolpolitan areas: Gauteng, Western
Newspapers Cape and Kwa-Zulu Natal.
Best weekly newspaper
Trish: Sunday Times. A good all-rounder catering for the different reading Ryan: Sunday Times.
and information requirements of the South African population.
Nazeer: The Weekender. Great
Nazeer: The Mail & Guardian. No sacred cows and no holy cows. A truly paper stock (and hence, repro
independent weekly with foresight, rather than hindsight – the M&G quality) and great editorial as well
uncovers next week’s stories rather than reporting on the week that was. as an amazing travel section to see
you through those lazy weekend
Ryan: Sunday Times. Continues to deliver content that captivates the nation. moments.
Its success could be measured by the scale of references made to Sunday
Times articles in other media and media stables. Although the content has Marketing Mix: The Weekender. For the businessman who doesn’t want to
not significantly changed over time it is still a winning formula. do business on the weekend but wants to keep in touch with all the things
that are relevant to him and his high-flying life.
Marketing Mix: Mail & Guardian. Intellectual reading, with a mix of politics
and scandal, business news, and so on. Plus, a great website, which offers Best newspaper supplement
up-to-date reporting. Trish: Sunday Times Lifestyle. For a wide variety of editorial which, as with
the main body, caters for different reading and info requirements.
Best daily newspaper
Trish: Daily Sun. The success story of Nazeer: Wanted Magazine. For proving that opulence need not be garish.
the decade. It continues to grow its Brilliant fashion photography, editorial and a great quality read. Definitely a
readership in what most said was a wanted read.
very hard market to reach. Its articles
are topical and the reporting is Ryan: No preference in this sector. supplement content across titles tend to
unbiased. be of similar quality. Although Business Report is carried by other titles it
shouldn’t be viewed as a supplement.
Nazeer: The Times. Provides
fresh news essentials in quick, digestible Marketing Mix: Business Day’s Wanted and Sunday Times Lifestyle. Both of
bites. A great mix of hard news, opinion, these titles address their target readers and address their needs and interests
sport, jobs and infotainment. with content that is stimulating.

Vol 26 No. 9/10 I 2008 I MarketingMix 29


CONTENT CHAMPIONS

Radio Online
Best national station Best website
Trish: 5FM. The station understands Trish: www.24.com. This site has everything you need and is easy to navigate.
its broad target market and its pro- It also has great maps and directions for those without GPRS devices!
gramme line-up caters for it. Over
the years the station has morphed Nazeer: Google as a landing
and adjusted accordingly, some- page period. For providing a map
times it has gone on a tangent in and journey to anywhere.
the wrong direction; however, it has
managed to correct this and has Ryan: News24. One of the largest
continued to offer a good mix of websites for local traffic, but more
DJs and content. importantly starting to steal a
significant share of younger
Nazeer: Metro FM, for being a great alternative to 5FM. audience who are drifting away
from newsprint as an access point to news content. Syndication of this
Ryan: SAFM. Continues to deliver very high-quality content. Business and content across platforms is evidence of the quality (although some content is
industry commentary is the strongest across all national radio broadcasters. derived from the Reuters network).

Marketing Mix: 5FM. This station is very popular with its target audiences, Marketing Mix: www.thetimes.co.za. For multimedia content that really
precisely because it offers the radio content that appeals to them. DJs have speaks to younger readers. Plus, the website works in tandem with the
a very loyal following, and the station also aligns itself to key events (such as newspaper (the latter refers readers to the former seamlessly).
the Virgin Fest, taking place later this year). Its website is also ideally targeted
to listeners and offers great interactivity. Best media newcomer
Trish: Blaque Magazine. An upmarket glossy magazine targeting the black
Best regional station urban male in the top LSM groups. This magazine is welcomed by readers
Trish: YFM. A fabulous youth station that caters for those young at heart as well as advertisers, who now have an opportunity to reach this market
too! It’s a station that has become a culture and a lifestyle, and it’s one with a good quality publication. A nice competitor to Best Life and Men’s
station that has successfully broadened its offerings with a magazine, a great Health too (competition is always good!). I just hope it gets the advertising
website and now the Y-academy to scout for new talent. support it deserves.

Nazeer: Kaya FM. For interesting radio formats, cleverly themed music Nazeer: Destiny Magazine. A complete and intelligent business, home,
genre months, brave reality concepts and good music. décor and fashion digest for the successful and motivated woman.

Ryan: Highveld Stereo. Although heavily dependant on a core group of Ryan: No preference for the past 12 months.
presenters, with no clear succession plans, this station delivers loyalty in a
highly competitive Gauteng market. Its social initiatives combined with Marketing Mix: www.thechewmagazine.com (online magazine). Launched in
innovative approach to radio content means that this is still the strongest August 2008, it promotes local and international fashion, design and
content contender in the regional radio market. Special mention should be styling. For the trend setters of Generations X and Y, this is the ideal virtual
made of 702 for a recent magazine; downloaded for free, it is an uber cool read.
resurgence in popularity – this
could be reflective of a shift in A few comments from the editor:
audience preference among early In general, the sports media appear to be doing a very good job with their
adopters/opinion formers in the content offerings (and perhaps, given the passion that fans have for their
Gauteng market. sport of choice, this is inevitable). It is interesting to see that in spite of new
niche sport interest magazine titles being launched (which supposedly offer a
Marketing Mix: East Coast Radio smaller, though far more engaged audience, and very niched content), the
for managing to cover the diverse judges did not select any of these. This begs the question: have the titles
populations of KZN and doing it marketed themselves strongly enough to create familiarity with the media
so well. And Highveld Stereo for planners? Or, is it a matter of the clients chasing bigger audience numbers
offering Gauteng listeners instead of a more engaged, smaller readership?
something unique and relevant. In the youth magazine category, it seems that the closure of some
The loyalty of its listeners is a of the youth titles has eroded the confidence in the media in this sector. It
significant indicator of this. Both will be interesting to see what the youth titles, such as seventeen,
2
these stations have managed to Hip2B and National Geographic Kids, do to reinvigorate their
share content across their web- audience figures, their content offering and advertiser/media planner
sites and draw listeners with podcasts, competitions, blogs and more. confidence in them. 

30 MarketingMix I Vol 26 No. 9/10 I 2008


The 1st Luxury Marketing Summit
12 & 13 November 08
Sandton Sun Hotel, Johannesburg
Understanding how to reach and influence premium consumers could help you take your brand into a premium realm. Keynote speaker: Greg Furman,
Chairman of the Luxury Marketing Council of the USA (www.luxurycouncil.com).

Today’s luxury market: The luxury ‘best customer’, the luxury marketer: trends, issues and best
marketing practices
Greg Furman (chairman of Luxury Marketing Council) explains how the luxury market’s changing, and how to win greater share of wallet with the premium customer.

Luxury stats
Neil Higgs, director: Innovation and Development, TNS Research Surveys will overview all the primary sources of income and trend information concerning the
rich and the aspirational rich.

Luxury and the SA Market: The role of premiumisation and premium brands
Erna George, from the Added Value group, discusses global trends driving luxury and premium, as well as the difference between the elitism of luxury and
the wider accessibility of premium.

The Luxury mindset


Grant Anderson, from Investment Cars (and Armormax) will explore the ‘luxury mindset’, and how to developed effective communication strategies for this market.

Luxury media – an expert appraisal


Millward Brown experts share insights gained through their research and tracking of top brands.

Marketing to luxury brands – defining the who, how and why


Kim Aardweg, manager partner, Brand EQ, defines the luxury market and discusses how to market to them.

The Planet Fitness Platinum case study


Jonathan Winstral, Planet Fitness, talks us through the challenges of setting up a premium health gym concept.

The power of influence and PR


Utilising sophisticated PR techniques to create a premium ambience and to influence opinion leaders. Speaker to be confirmed.

The luxury marketing mix


Greg Furman discusses innovative collaborations among luxury brands.

Luxury communication and branding


Anina Malherbe, founder of Vivid Luxury Marketing, discusses the best ways to achieve luxury brand positioning and communications.

One to one marketing – getting personal with premium consumers


Mark Angus, CEO, Innoviate, explains how to utilise smart digital tools to enhance direct marketing techniques and influence the top earners.

Communicating with young affluents


Andrea Kraushaar and Ane Bothma-Landman share insights from the Youth Dynamix research.

Determining the right formula for luxury goods: maximising desirability, while restricting accessibility
Gaby De Abreu, The Switch Group

Living the good lifestyle


Former Miss South Africa, Claudia Henkel, managing editor of Morafic Wealth, a recently launched premium lifestyle title, will talk about selecting content
for premium readers.

Pricing:
A two day workshop
R6 750 plus VAT per delegate.
R6 250 plus VAT per delegate for three or more delegates.

Enquiries: Daisy Mulenga, daisym@systems.co.za (011) 234 7008


Sponsorships available: Robyn Richen, robynr@systems.co.za (011) 234 7008
by jonathan gluckman EXPERT OPINION

Online retailing:
lessons to learn
The retail industry in SA faced a gloomy not, more and more people are hitting the
start to 2008, with Stats SA’s figures showing a aggregator sites rather than the ‘official’ sites.
retail growth rate of only 1.5 per cent year on The big US retailers have mixed feelings about
year leading up to the traditional holiday boom the ‘Black Friday’ advertising sites, which allow
that turned out to be more of a damp cracker. shoppers to cherry pick the best specials, and
Our online retailers, however, had a joyous time also often leak specials that the retailer was
up to the end of the last year. According to tech hoping to announce when it suited it. But in
researchers World Wide Worx, more than 20 per general they understand that it’s better to capitalise
cent of 2007’s online shopping was done over off third-party search systems than attempt the
the holiday period, and they predict it will likely impossibility of muzzling them.
grow. This is an urgent heads-up to the local There are now three major ways for online
retail industry that it needs to understand more retail customers to find what they want – go to a
than the most basic idea of Web retail as an retailer’s site directly, go to an aggregator/price
‘online shop-front’. comparison site, or simply use a search engine
It’s also great news for the increasingly such as Google.
complicated network of online businesses It’s a tricky business, and online retailers are
operating as service providers to online retailers – still coming to grips with how to maximise each
an entire industry that most traditional retailers online customer acquisition method – it’s
have very little knowledge of. complicated, subtle and changes constantly.
This world of ‘search engines’, ‘price comparison Retailers in SA are facing a massive learning


sites’, ‘retail aggregators’, ‘search affiliates’ and curve – it’s not enough to spend millions on an
other arcane organisations is staggeringly massive. online shop front, but ignore how consumers are
Globally, says JPMorgan, revenues for the world- Luckily, we don’t have increasingly using the web. Whether retailers like
wide search industry will hit US$30.5 billion this to learn from scratch – we it or not, web-savvy consumers are very aware of
year, up from US$26.2 billion last year, with the power of online search, and how it allows
expectations of an annual growth rate of 28 per can pick up the lessons them to find what they want at the best price.
cent over the next four years, hitting $60 billion Retail giants need to leverage off the sometimes
by 2011.
that US and European considerable expertise, energy and effort of third-
Many of SA’s better online retailers understand retailers have learned so party sites and affiliates, but without compromising
the mutualism between them and the ‘online their brands and marketing strategies.
painfully over the past few


search’ crowd – go to Jump.co.za or Retailers in this country are taking a drubbing,
PriceCheck.co.za and see how they allow you to years. with spiralling food prices and interest rate hikes
search for items at the best prices across several dampening consumer spending. Online retailers
leading online retailers. At the same time, most of in SA are in the pound seats of growth – even if
our traditional retailers are still trying to work out total retail spend is not increasing rapidly, online
their own online shopping plans, never mind how spend is becoming an ever bigger slice of the
they can plug into the crazy new ecosystem of the and slathers of special offers. Compared to pie. And this is despite the fact that most retailers
online space. 2006, last year saw traffic to sites advertising are barely off the first page when it comes to
It is critical that retailers start to build an under- Black Friday specials increasing earlier than ever building an online sales channel.
standing of the parallel online services industry. before, and peaking 52 per cent higher than Luckily, we don’t have to learn from scratch –
To succeed online requires new partnerships with previously (according to research company Hitwise). we can pick up the lessons that US and European
web marketing specialists, especially those in the Searches on the term ‘black friday ads’ are up retailers have learned so painfully over the past
search space. 91 per cent from the previous year, and have few years. 
In the US, a whole industry has grown up increased a jaw-dropping 954 per cent since
around ‘Black Friday’ – the first shopping day 2005. Compare this explosive growth in search Jonathan Gluckman
after the Thanksgiving weekend in the run-up to traffic on independent ‘aggregator’ sites to the Head, Business Development
the Christmas/Hanukah/what-have-you present big retailers’ own websites, which only increased Clicks2customers
and entertainment frenzy, characterised by by a moderate 13 per cent over 2006 (Hitwise (021) 442 5044
gridlocked traffic, chock-a-block shopping malls US Retail 100 Index). Whether retailers like it or jonathan.g@clicks2customers.com

32 MarketingMix I Vol 26 No. 9/10 I 2008


TOWNSHIP MARKETING

Effective marketing in
the townships workshop
Townships are dynamic, and no two as helping the community instead of hampering
townships are the same. As Alistair Duff, director the efforts of the local vendors. Outlets are
of Strategic Development, McCann Worldgroup always strategically situated near or at the taxi
South Africa, explains, townships cannot all be ranks, and in the suburbs to make it easy for
marketed to as a homogeneous market. Duff’s people to shop there. Then, it’s about stocking
research into the townships of Soweto, Alexandra quality products and specific product categories
and Orange Farm has illustrated that there is a that are consumed by the local market (tripe,
distinct mindset that differentiates consumers for example).


across these townships. He urges marketers to
realise the fortune that is at the bottom of the
pyramid. “The Black Diamond is much smaller Government has set a budget of R7.7 billion for the
than we think,” he says, encouraging marketers
taxi re-cap programme, which seeks to improve safety


and brands to look beyond these definitions.
Mutually beneficial marketing is key. and formalise the taxi industry.
Beatrice Khubeka, MD, African Response,
says there is a growing trend of black people with
increased spending power, and here, image is Geraldine Mitchley from the Knowledge
important. However, as much as there is spending Factory, believes that internal data (shopper
power, inflation and credit crunches have hit the spending habits, for example) are a rich source of
township market hard. Shopping decisions are information, which can be augmented with
being made more carefully, with trends now external sources of marketing intelligence to
towards buying in bulk or switching to lower price better understand customer needs. Geographical
alternatives (maize meal instead of rice or analysis is valuable and allows for linking together
cordials instead of ready-to-drink fruit juices). of insights to get a more comprehensive picture
Brad Aigner, MD, Freshly Ground Insights, has (tracking property prices, where people shop, and
found that the bulk buying in township malls is so on). Combined with demographic data, this
impacting (albeit marginally) on vendors and sort of analysis allows one to identify nuances
spaza shops. He stresses the need for brands that tie sub-clusters together and differentiate
entering this market to make long-term commit- them from one another.
ments to community involvement and upliftment. Gill Mkhasibe of the Alternative Consultancy,
Township malls are perceived to be cheaper. says that over the past few years, the growth of
Marketers need to be aware of differentiation of malls and shopping centres in the townships has
prices between the urban and township malls, brought top-end brands into the townships.
and make sure that they don’t create perceptions However, she is concerned that the malls may not
of disparity between what they offer suburban be the investment they are made out to be, since
consumers and what they offer rural and poverty and unemployment leave many township
township consumers. dwellers without the disposable income needed to
Frans Van Der Colff, Pick n Pay, explains how shop at the malls.
the group got involved in local township Mkhasibe says that there is growth in immigrant
communities with great success. At store openings, traders (Pakistani, Bangladeshi, Indian and Somali)
green shopping bags are distributed to shoppers, who tend to settle in pockets. A number of them
while engagement in activities that help children are taking over the old general dealer stores, and
and pensioners creates positive word of mouth. Mkhasibe says they are very entrepreneurial.
Locals are hired to manage and run the stores The township traders offer distribution in every
in the townships. The stores interact with local street in every township, and could therefore help
hawkers and supply them with hawker packs. dominant brands fight against the ‘new guys’ that
They sell bread outside their stores in kiosks run are now in the major supermarkets. However, the
by local vendors at a reduced price. tough working conditions and low literacy levels
This allows the Pick n Pay stores to be perceived of these traders is a challenge for marketers. Your

34 MarketingMix I Vol 26 No. 9/10 I 2008


TOWNSHIP MARKETING

products need to be differentiated and need to is an issue that retailers must address, as is the
market themselves, says Mkhasibe. Understand product offering – some retailers only stock
that perceived value is more important than price. products meant for the Western market.
It’s not about how much money people have, it’s Mannequins and shop fronts are predominantly
about the perceived value in the offer. white, so customers do not relate to them.
Jacques du Preez, MD, Provantage, estimates Tumisang Moatshe, Youth Strategy Consultant,
that about 55 per cent of our population (25 mil- Youth Dynamix, has found that the youth in the
lion people) resides in a township. The townships townships are largely LSM 5-7, with a low dispos-
are being upgraded and there is formalisation of able income. They tend to spend more on instant
trade. There is more disposable income than ever consumables, including snacks, entertainment,
before, and there is also increased mobility. More connectivity (cellphone), and fashion and brands
than 20 million South Africans commute through that are linked to image and peer groups.
about 60-plus hubs across SA. Across the Average spend on weekends is around
provinces taxis dominate as the major mode of R250-R300. They are not saving at all (they spend
transport, (with more than 15 million people conspicuously), so there is room for banking
depending on them). Taxi, bus and train groups to give financial advice. These are early
commuters spend more than R30 billion, so adopters of electronics, and will give their parents
there is tremendous spending power. advice on electronic goods and tech gadgets.
Government has set a budget of R7.7 billion These youth are uber-indulged and uber-
for the taxi re-cap programme, which seeks to stimulated; they want a concentrated life. So
improve safety and formalise the taxi industry. marketers need to offer them something out of
Commuter environments are being developed the ordinary (experiences that cannot be bought).
and upgraded, but marketers cannot just carry And while they are highly aware of their
out campaigns here. consumer rights, they are not prepared to assume
Traditional media categories are becoming the committed responsibilities.


more cluttered and more and more brands are
turning to out-of-home and outdoor media,
globally. This is because these media cannot be
Service is an issue that retailers must address, as is
zoned or tuned out. And given that the average the product offering – some retailers only stock


commuter spends between 30 and 60 minutes a
day in a taxi, bus or train, this is a no brainer. But products meant for the Western market.
Du Preez points out that only 5.5 per cent of
marketing spend is allocated to transit media. Aloice Lombard, project manager for
He believes this is because there is a lack of Maponya Mall, shared her learnings of the
understanding of these media platforms and the township markets through her experience in
transit/commuter markets. launching and marketing the mall
Linette Imrie, Pepper Portfolio manager at Consumer categorisation was complicated.
Primedia Lifestyle, says that in planning a Each consumer sub-group has a specific state of
township marketing communication, language mind, and this was a more relevant segmentation
and culture should be a priority. This will impact tool than any other. Lombard identified three
not only how you communicate, but also what main groups of consumers:
appeals to the market. For example, in urban The traditional Soweto consumer, who is cash
activations, giving away a car in a competition is strapped (LSM 2-5); trading hours need to take
viable. But in some of the rural townships, a cow into account that they leave the township during
or a goat is a far more valuable prize. the day to work, so stores need to stay open later
Make use of local suppliers, educate and to accommodate this.
invest in them, and exploit their creativity. Turn taxi Younger, more demanding Soweto consumers:
drivers into tour operators and informal traders they know what they want, where to get it, and will
into retailers (especially since the shopping malls abandon you if you don’t measure up and deliver.
have encroached on their markets). Politics are It’s important to get their attention from the start.
important: the local councillor is not always Afropolitans: These are trendsetters; they are
respected by the community, so keep your ear on African but also cosmopolitan. They are future
the ground. focused and have money to spend.
Due to a combination of low literacy rates Show your commitment to this market, and
and an increased ‘take me back to my roots’ don’t let it down. Keep your business models
phenomenon, it’s incredibly important to flexible and don’t wait for them to fit into your
advertise in a combination of languages. Service model, says Lombard. 

Vol 26 No. 9/10 I 2008 I MarketingMix 35


SERVICES SETA

Professionalising
marketing
On 11 June 2008, the South African SETA hopes to bring much needed credibility The Chartered Marketer (SA)
Qualifications Authority (SAQA) formally to the marketing profession. “Chartered Since January this year, the Services SETA has
registered two professional designations for Marketers should be confident to hold been working to update the current list of
marketers: the Chartered Marketer (SA) national senior marketing positions in organisations, or registered CMs, and is now also signing up new
certificate (which until this year was without formal lead small businesses, being thoroughly tuned incumbents. “There are about 250 South African
backing after the demise of the Marketing into satisfying client needs and delighting Chartered Marketers who have retained their
Federation of South Africa, the MFSA), and the customers. I anticipate that the value of the designations, and another 60 are going through
Marketing Practitioner (SA). These designations currency will grow, with a widening remuneration the process that will ultimately lead to a board
are recognised by the 17 countries in Europe gap developing between non-designated exam and an evaluation by peers, as is common
which form part of the EMC (the European marketers and chartered marketers. They to most senior professional designations. There
Marketing Confederation), and will soon be are already instantly recognised by fellow will be a natural limit – probably about 500, but
recognised in Australia too. professionals as having achieved a high degree the potential for marketers at middle manage-
In reviving the CM(SA) designation, and of mastery,” says Colin Hudson, current ment level to achieve MPSA must be enormous –
offering the MP(SA) designation, the Services Chartered Marketer (SA). probably up to 10 000,” says Hudson.

36 MarketingMix I Vol 26 No. 9/10 I 2008


SERVICES SETA

Governance, Small Business or Entrepreneur or


Consultant, or Academic). This will impact on the
number of points that must be obtained in each
category of CPD.
New CMs must submit a CPD report for
evaluation, and if they have accumulated sufficient
points, they are called for interviews and board
exams. If these are passed successfully, they are
awarded the designation of Chartered Marketer.
Existing CMs, on the other hand, are not expected
to pass exams or interviews – if their CPD portfolio
proves that they have accumulated sufficient
points, they retain their status.
The chartered marketer is one who has a
minimum of 10 years’ line– and management-
level marketing experience, and a proven track
record of practical marketing mastery at strategic
level. Typical positions include: chief marketing
officer; marketing director/manager; CEO; sales
director/manager, business owner/entrepreneur.

The Marketing Practitioner (SA)


The marketing practitioner is someone who has a
minimum of three years’ experience in marketing,
preferably at middle management level with
supervisory experience. They have a proven track
record of practical marketing competence at
tactical/operational level. Typical positions
include: brand manager; product manager; field
manager; account executive; sales representative;
marketing assistant; business owner/entrepreneur.
They are required to follow the same protocols
and fulfil the same criteria as the CM(SA)
candidates (although they are not required to
write a Board Exam).
“The Marketing Practitioner designation
should be viewed as a stepping stone in a
Colin Hudson, current Chartered Marketer (SA)
marketer’s career development. Typically, a
marketer with an undergraduate qualification and
Chartered Marketers that initially qualified activities, both unstructured, and registered. They a minimum of three years experience in market-
through the Institute of Marketing Management are then required to complete and submit the ing management would be eligible to embark on
or the Marketing Federation of South Africa are CPD record card by 31 October 2008, for the MPSA programme. Chartered Marketers
required to re-register by signing the code of evaluation. They are expected to have accumulated recognise Marketing Practitioners as people
conduct and submitting it to the Services SETA. 50 CPD points over the 12 months leading up to taking their professional marketing career
Also, they must participate in compulsory this deadline, and should also have selected the development seriously. In comparison, one would
Continuous Professional Development (CPD) context in which they will operate (ie Corporate or expect a Chartered Marketer to have had at least
10 years of marketing experience at a senior
level,” says Hudson.
The National Qualifications Framework (NQF): To qualify to enter the CM(SA) or MP(SA)
This Framework is designed to create a single, integrated, national education and programme:
training framework for the whole nation. It hopes to make it easier for learners to  Competence needs to be demonstrated by
enter the education and training system, as well as to progress within the system. the qualifying individual at different stages of
Through these processes, the Framework also improves the quality of education and their personal and professional development.
training in South Africa. This is essentially a quality assurance system, given that it sets The individual needs to:
out the standards and qualifications that are required to uplift education and training  Be deemed competent against the standards
in South Africa. described in the integrated NQF 7 or NQF 5
qualification;

Vol 26 No. 9/10 I 2008 I MarketingMix 37


SERVICES SETA

 Demonstrate vocational competence against


the criteria defined by the Services SETA; The benefits of qualifying as a Chartered Marketer (CM):
 Maintain the currency of their professional Thebe Ikalafeng, from the Brand Leadership Group, says that the CM designation is
competence through participating in a the highest endorsement of aptitude, skill and experience for the marketing profes-
programme of continuous professional sional. “It signals that you are the best in your field, and that you have all the right
development (CPD), as determined by the qualifications and experience,” he says. Chartered marketers will gain the following
profession; key benefits as a result of the CM qualification:
 Subscribe to a code of conduct that is monitored  Membership of the professional body, which means contributing to the growth of the mar-
and co-ordinated by the profession or keting profession as a whole
professional body serving that profession;  Improved performance in one’s current role, since the continuous re-training ensures high
 Retain membership of the professional body quality skills and contributions, as well as contributions in the form of social responsibility
responsible for the enforcement of the code Professional development process sharpens awareness of the need for additional knowl-
of conduct; edge and skills too
 Gain practical working experience through  Enhanced career prospects that arise as a result of greater expertise. In addition, CPD can
working experience or participation in an help you identify gaps in your present knowledge or skills which may not be immediately
internship. Competence can be measured by relevant in your present role, but which limit the range of opportunities, which you could
describing the types of activities such an consider in future.
individual will need to have participated in  Increased learning capacity, as a result of reflection on learning, and knowledge applica-
whilst on-the-job; and tion
 Act in a way that places the interests of the  Greater confidence and self-esteem
public s/he serves above his/her own  Organisational benefits, since one’s company also benefits from the added value of an
interests. increasingly effective contribution on its board
Furthermore, in order to qualify for the  Social benefits, because CPD contributes to the professional development of learners.
CM(SA) or MP(SA) programme you must also
demonstrate that you are currently able to:
 Coach other marketers in key aspects of
marketing
 Conduct research and apply relevant research
outcomes
 Develop and implement marketing plans,
strategies and campaigns
 Develop and optimize marketing budgets
 Integrate other business unit objectives to the
marketing objectives
 Communicate with stakeholders
 Aspire to the principles of marketing
 Integrate all other disciplines across the
different fields of marketing.

Achieving CM(SA) or MP(SA)


status
The individual is required to register with the
Services SETA (by signing a code of conduct) and
complete the initial workshop. During the work-
shop the required competences will be unpacked
in order to guide you in providing the required
evidence. At the end of the first workshop your
portfolio will be submitted for assessment.
All candidates must undertake CPD activities
over the next few weeks, and they must keep a
Portfolio of Evidence (PoE) of the documents and
materials to support these activities. An interim
workshop will serve to guide the portfolio work, Ivor Blumenthal, CEO of the Services SETA
and gives the candidate an opportunity to discuss
problems and issues with peers and supervisors. thereafter for assessment by accredited assessors. for the designation. MPs are then assessed, for
Approximately four weeks are then allocated Based on the PoE, the candidate is then required accreditation (successful candidates attend
for the completion of the PoE, which is submitted to make a presentation, motivating their eligibility graduation). CM candidates are required to

38 MarketingMix I Vol 26 No. 9/10 I 2008


SERVICES SETA

be of an active or output-type nature (requiring


A Chartered Marketer has demonstrated that he or she is the individual candidate to design, develop of
able to: deliver programmes and workshops, or write
 Apply a range of financial and / or statistical formulas to plan and measure the papers that will deliver information to an
results of strategic marketing efforts audience). The CPD points are calculated
 Plan, prepare and present high level proposals to role players and stakeholders as follows: one hour of participation equates
 Integrate all aspects of marketing in meeting the broad objectives of the to one point. So, 50 points equates to 50 hours
organisation and ensure that marketing strategies and activities are integrated of CPD activities.
and co-ordinated with those of other key parts of the organisation The activities that qualify for CPD include:
 Demonstrate that strategic marketing efforts contribute directly towards the bottom  Reading, writing and the submission of
line of the organisation marketing articles
 Demonstrate professional conduct to ensure sound strategic marketing practices.  Attending and presenting marketing related
 Conduct research into global and / or national marketing practices and use lectures
findings to add value to the organisation  Coaching, mentoring or supervising individuals
 In order to maintain your status as Chartered Marketer you are required to prove in the marketing field, or being coached,
that you are currently competent against these criteria, through engaging in mentored or supervised
specific CPD activities.  Attending, facilitating and developing
marketing related courses and seminars
 Reading, developing, presenting and
write a board examination at this stage, and practical experience in attracting and retaining publishing marketing related papers
then overall results are verified by the Services customers, and consistently generating income,”  Being a member of or serving and actively
SETA. Successful candidates graduate from says Hudson. participating in a marketing related
the programme. professional body or bodies
To maintain their status, MPs and CMs are Continuous professional  Serving and actively participating in a
required to accumulate a certain number of CPD development community organisation; and
points each year, and must abide by the Code of The continuous professional development that is  Developing an individual development plan
Conduct. The CPD PoEs must submitted for undertaken by marketers in the Services SETA or implementing elements of an individual
evaluation, every two years for assessment. One CM(SA) and MP(SA) programmes is key, because development plan.
needs to understand that an individual does not it emphasises lifelong learning and the maintenance
automatically retain the CM or MP status for life. of a high standard of professional conduct. Looking ahead
Instead, they must continually develop their Essentially, this means that the Services SETA “The results of related professional associations
competencies, and prove themselves multi-skilled, assesses and values proof of mastery, which is collaborating with the CMSA will quietly unfold
multi-dimensional individual. It’s also about gained experientially in the workplace. Failure to over the next few months,” says Hudson. “For
accountability and good governance; a chartered remain professionally competent should prevent example, once members of the DMA have
marketer who does not meet the standards set such individuals from being able to work within a achieved a certain number of points from their
out by the Services SETA will lose his/her status. specific sector. “The essence of CPD is to earn process, they become eligible to start the CMSA
“A further benefit of the CMSA programme is sufficient points to retain your position on a programme. Whilst their evidence will obviously
the international recognition afforded by the register. This means having access to the best. be mostly direct marketing related, as long as
European Marketing Federation (EMC) which Through a consultant, Dr Michele Serfontein, an they can demonstrate mastery in it, and show
recognises the South African designation as being outstanding programme of activities is underway, sufficient proficiency in other aspects of marketing,
the equivalent of their ‘Senior Marketing involving top local and international facilitators. they will find a pathway into the CMSA
Professional’. This should facilitate international These exciting sessions have been well attended. programme. The same will apply to market
appointments, and assignments. As an example, CMs can also earn points through making researchers and senior level conference and
the leader of a local marketing services agency presentations, mentoring entry-level learners, or event organisers,” he says. The Public Relations
promotes his EMC certificate to European clients through contributing to reputable marketing and Institute of South Africa (PRISA) is also sharing
who want someone in South Africa whose level of business publications,” says Hudson. knowledge of their sophisticated internationally
expertise they can count on, and who also knows It is precisely this high standard of professional adopted professional designations and CPD
and understands the African market – that’s conduct and real world experience that will uplift process, says Hudson, so that one will eventually
clever use of the reciprocity,” says Hudson. the marketing profession. be able to gain convertible credits from different
“Achieving the CMSA professional but related streams. 
designation indicates a high level of mastery The CPD requirements:
in marketing. In time this will be recognised Candidates must accumulate a total of 50 points
in industry, as Chartered Marketers show their over a 12 month period, by participating in For more information, visit
mettle as marketing directors, brand managers relevant activities. Thirty per cent of the activities http://www.serviceseta.org.za, or contact
of top brands, and leaders of customer must be of a passive of input-type nature (attending Dharmisha Govind, tel (011) 276 9600
centric organisations. It indicates a educational programmes and workshops, for e-mail dharmig@serviceseta.org.za
combination of knowledge, skill and example), while 70 per cent of the activities must

Vol 26 No. 9/10 I 2008 I MarketingMix 39


by gary nelson EXPERT OPINION

Targeting townships
There has been much speculation in the and services but also become convergence points
industry and the media as to the effect shopping for leisure activities such as playing pool and
mall development in townships will have on local soccer tables. Many stores are also used as pay
retail businesses, with most predictions being out points for social grants and pensions, and
quite negative. In fact, a recent study done by the these should be included in the most current
Bureau of Market Research stated that convenient route lists. The more influential the store, the
access linked to price competitiveness and the greater the potential to become a convergence
extended shopping experience at large chain point for various community members.
stores in these new malls suggest harmful Furthermore, by implementing changes in the
consequences on the turnover and employment routes of vehicles stocking township stores and
of small township retailers. vehicle tracking to ensure compliance with the
However, the same study also states that while new routes and through the implementation of
75 per cent of businesses located less than 1km technology, the negative can fast become
or a 15-minute walk from a mall reported a positive. It is my belief that if sophisticated
decline in their profits, this dropped to 36 per solutions, that is planning and technology,
cent when located 4km away, with the percent- are implemented for what is essentially an
age decreasing even further the greater the dis- unsophisticated market, an untapped source of
tance from the mall. And herein lies the rub: consumers can be accessed for clients.
while there is a definite negative impact on local Considering the thousands of stores in the town-
businesses in the immediate vicinity and therefore ships the untapped potential is mind boggling.
product penetration around the malls, there is a In terms of what we are doing to ensure
very positive spin off … the further away we move effective reach for our clients’ brands, all vehicles
from the mall or economic hot spot, the more are scientifically deployed using current data such
opportunity there is for expanding the client’s as black disposable income, population census
catchment area. data and so on that helps us to identify economic


This is demonstrated clearly in a recent survey hot spots and catchment areas. In addition, we
we ran for a battery manufacturer. While the have installed a geo-mapping system as well as a
It is my belief that if
introduction of a mall in the Atteridgeville area sophisticated data-capturing system that will
showed that people around the mall indicated sophisticated solutions, dramatically improve quality and turnaround
they would purchase from the mall, only a times for client report backs.
few kilometres away in Saulsville, 85 per cent
that is planning and In terms of data collected during store rounds,
indicated they would still buy batteries from the technology, are implemented the following information is imperative: product
local general dealer. penetration versus competitor penetration, trader
Traditionally, the focus on distribution into the for what is essentially an insights, consumer comments and to a large
townships has been on products to a large retail unsophisticated market, degree what the opposition is doing that gives it
store. This store would then run off or ‘feed’ to a the edge and pricing trends as well as other
number of smaller stores. While the mall may an untapped source of factors and in-store opportunities that could
have interfered with this process, what can be used to improve visibility and top-of-mind
consumers can be accessed


happen now – with a few small changes in awareness for our clients’ brands.
strategy – is even deeper market penetration into for clients. This combination of deeper penetration, use
more outlying areas by servicing or distributing of technology and data collection ensures
brands into even more retail stores outside the continued viability and, in fact, huge potential
formal business hub. in township retail for the local and general
This deeper market penetration can also be dealer-type stores – despite the advent of malls in
secured by alignment with multipurpose or highly the townships. 
influential points in the community. It is important
to ensure that the most influential stores are
called on in all areas of operation. To ensure this,
Gary Nelson
ailing stores are constantly replaced by those that CEO, Primedia Face2Face
are able to offer products right across the FMCG (011) 475 1419
continuum. These stores not only provide goods gnelson@f2f.co.za

40 MarketingMix I Vol 26 No. 9/10 I 2008


EXPERT OPINION by janine lloyd

What’s in a good name?


Socrates once said: “Regard your good  Monitor individual communications and refine
name as the richest jewel you can possibly be pos- as necessary
sessed of – for credit is like fire; when once you  Review communication plan and adjust
have kindled it you may easily preserve it, but if you accordingly.
once extinguish it, you will find it an arduous task to
rekindle it again. The way to gain a good reputation Be what you desire to appear
is to endeavour to be what you desire to appear.” Remember that reputation is not just what others
The corporate identity or brand of a company think or say about you, it is also about being ‘what
along with its reputation is its greatest asset. The you desire to appear’. The public wants to buy
legitimacy an organisation receives because of its from companies that deliver on their promises.
reputation should be carefully guarded. The Should you break these promises you are eroding
power of being trusted and believed is enormous. the very essence of your company’s reputation.
The proliferation of information and media, When considering your overall PR strategy and
intense public scrutiny and constant corporate communications messages it is critical to consider
change has created confusion, distrust and cynicism your company or brand promise. A good PR
that continue to erode the reputations of campaign builds up the reputation of your company
businesses with their employees and the public. to deliver on its promises and brand values.
Why care... unless reputation contributes to a What would MTN’s Everywhere you go pay-off
company’s business or stock performance. The line mean if you couldn’t get your cellphone to
bottom line is that it does. connect nearly everywhere you go. MTN’s core
Business experience and research has demon- Strategy and planning brand positioning is shown through its latest
strated time and again that a good reputation Considering PR is a strategic management asset adverts which highlight ‘Go’ people – the igniters
helps a company to sell its products, recruit the with the corporate reputation as its charge, of fantastic ideas and those individuals who are
best and the brightest, and attract the most developing a PR or communications process prepared to mobilise their potential, to go and
desirable business partners. Industry research* that will enhance and protect your reputation invent, create, challenge and change things in
has revealed that individuals who are familiar is paramount. their life experience. This is the essence of the
with a company are more likely to evaluate it Below is a step by step process to guide you. MTN brand promise to which the company lives
more favourably and it is more likely to lead to up to as a progressive, innovative, leader with
behaviours that support the corporation’s strategic Step 1: Define what is required people who have a ‘can-do’ attitude.
goals – recommending products and services, Conduct a ‘situation analysis’ – what is your Do not make promises that you cannot keep;
and the corporation as an investment. current reputation or standing with your public? even though you may have developed a good
Corporate reputation plays a large part in your Conduct research or look at existing market reputation, remember you could just as quickly
target audience’s forming an opinion of your research, conduct a strategic counsel with destroy it. Don’t insist your PR department,
products and services, therefore public relations relevant parties. advertising and marketing people communicate
(PR), as a strategic management function, has as  Segment the target audience – know who all messages to the market which undermine your
its key mandate to help organisations build your publics are reputation because they are simply not true.
reputations and establish market credibility.  Align to business strategy – ensure you under- Just as PR can build your reputation so too can
As a term public relations has often been stand the business strategy and key goals reality quickly turn your reputation into a bad
mistaken for publicity; however, it is about helping  Develop an overall PR objective for each target one. In the words of Abraham Lincoln: ‘You can
an organisation and its public adapt mutually to audience group fool some of the people all of the time, and all of
each other by building goodwill. PR encompasses  Ensure you have clear, realistic and measura- the people some of the time, but you cannot fool
publicity, advertising, media relations, investor ble goals. all of the people all of the time.’
relations, employee relations, promotions, issues *Understanding is the beginning of approving:
management, public affairs, and industry and Step 2: Develop a plan – think Vapid Platitude or Cornerstone of Public
community relations. All with one common aim: strategy before moving to tactics Relations? By John Gilfeather, VP Roper Public
to gain public understanding and acceptance.  Develop the PR process – audience, message, Affairs, NOP World and Tina Carroll, Ph.D.
At the heart of PR lies communication. As a content, channel Candidate, University of Miami, March 2005.
PR professional I am not just a fan because it is  Ensure accurate messages that fit the audience www.instituteforpr.com 
my business, but because my business reflects  Define activities, set goals and timelines
who I am. As a communicator I am adept at  Create feedback and measurement mechanisms Janine Lloyd
the art of communicating yet I have also learnt  Determine accountability and resource requirements. PR coach and CEO
that communicating without strategic intent or Livewired Communications
planning is akin to putting on a play without a Step 3: Implement and measure 0861 548 394
script or rehearsals.  Roll-out PR activities janine@livewired.co.za

Vol 26 No. 9/10 I 2008 I MarketingMix 41


EXPERIENTIAL MARKETING

Experiential
marketing
summit
The 2nd African Experiential Summit traditional marketing: choice
took place on 3 September and offered a mind- models, conjoint analysis, and
boggling wealth of useful information on experiential feature and benefits segmenta-
marketing, branding and sponsorship. tions. They are all about the
Experiential marketing is becoming an increasingly product, not the customer,”
important element of the marketing mix as says Bernd Schmitt, PhD –
consumers begin to tune out the more traditional Robert D Calkins Professor of
advertising noise in favour of a more person- International Business and exec-
alised approach. According to Ryan Fitzsimons, utive director of the Center on
CEO of Gigunda Group, experiential fits perfectly Global Brand Leadership at
with the new consumer because it is ‘the discipline Columbia Business School.
of creating engaging, experience-based Schmitt, the keynote speaker
programmes that drive a brand message to the at the Summit, used Apple,
one-on-one conversation level.’ Mini and Starbucks as prime
As Dr Jannie Hofmeyr, head of Innovation at examples of companies that
Synovate, pointed out in his presentation focused on the experience.
Connections, you create strong brand commitment “How does a brand fit into a
by connecting the brand to things that people consumer’s lifestyle – what do
really care about. But, he says, it takes time to the customers want and how can
build that connection. However, once the a brand help them to enrich their
connection is made, you own the image and lives? This is how brands must think now,”
the buying behaviour follows. This is where says Schmitt. (QTOs) – how can we introduce someone to the
experiential marketing can speed up the brand- According to Schmitt, as experience of a brand brand or reintroduce them to a brand that breaks
connection process. increases, so do the positive impressions and the mould. This is when we need innovation. Our
Andy Rice, chairman of Yellowwood Brand purchasing intentions – provided, of course, that definition is the following: innovative QTOs only
Architects agrees and his presentation dealt with the product is up to the match. To ensure that happen when brands discover and maximise
media clutter. “This isn’t just about clutter; it’s experiential marketing works, it must focus on those crucial points of highest untapped potential,”
about media proliferation beyond all reasonableness. purchase and consumption with research on says Fitzsimons.
The way to break through is to stop acting as consumer insight looking at customers as rational But, he adds, although leading with innovation
media and advertising. Our brains are hotwired and emotional. “It also means a move from a product creates buzz, it is not up to the marketers to finish
to be attracted to those things that interest us. So, focus to a consumption situation while looking at this buzz, but to keep providing new, exciting and
entertainment first, brand message later; this is the socio-cultural environment,” says Schmitt. fresh ideas for the target market.
the trick to breaking through the media clutter. Is According to Schmitt, there are five strategic One way to keep the buzz going is finding the
it any wonder that consumers choose their own modules: sense, think, act, relate and feel, and right influencers. Carol Abade, CEO of EXP gave
media carefully, and that they often ignore marketers need to look at product environments, her presentation on Influencing the Influencers in
‘traditional’ media in the process?” he asks. events and sponsorships, people, visual/verbal Africa, demonstrating the unique appeal of
The change that marketers cannot ignore is identity and website. experiential marketing and finding influencers
that marketing and advertising are about the Experiential marketing is not as easy as it across the continent. Over the past five to 10
consumer. “Experiential marketing is truly about seems. The ultimate aim for any brand is to get a years, the markets in Africa have changed and,
customers. Most traditional marketing is – despite customer to fall in love with it – destination therefore, so must the marketing approach.
what marketers say – usually product focused. devotion. “If we’re seeking destination devotion, it “Influencing the influencers is one way of dealing
Look at the concepts and methodologies of means we’re looking for quality trial opportunities with the changes as they are key in linking

42 MarketingMix I Vol 26 No. 9/10 I 2008


EXPERIENTIAL MARKETING

communities together but you have to actually go and the creation of the parks for the 2010 FIFA
out and find these people. Influencers don’t wait World Cup, which are perfect examples of
for you to ask; they tell you and give you the consumers experiencing brand FIFA and the host
details. Effective segmentations allow us to be country. Plus, it creates an experiential marketing
able to talk to the right audience, at the right time platform for sponsors.
in the right way. This is where influencers come However, according to Kim Skildum-Reid,
into play,” says Abade. founder of Power Sponsorships and one of the
She also says that finding the right influencers world’s renowned sponsorship gurus, most spon-
can provide invaluable consumer insights into the sorship money is completely wasted. But, she
different target markets, which are insights that says, when talking about experiential marketing,
would not be found any other way. sponsorship is as good as it gets – if it’s done
right. “You can use sponsorship as an incredible
Some rules: authentic experiential building experience, but the
 There is a group of extraordinary people two swear words of sponsorships are awareness
capable of including change and exposure.”
 Profiling measures must be driven by lifestyle Skildum-Reid explains that with a sponsorship,
and not brand a brand is sponsoring something that people
 The content of the message: you must have a already care about, so you’re building advocacy
story to tell straight into it. But, the two main objectives of a
 Identify your touch points sponsorship should be changing target market
 Identify the influencer’s environment perceptions and behaviours – and should not be
 Advocacy, not traditional amplification, is key. just about awareness.
But marketing in Africa cannot ignore traditional She says that we are now – or should be – in
media either, in fact, anyone that is involved in the last generation sponsorship era.
experiential marketing will say that you cannot This means that the target market must gain
use it alone; it must be integrated into an entire from the sponsorship:
marketing campaign. Unfortunately, there is little  Put target market needs, wants and interests

research conducted in Africa, but Telmar’s first


Sharon Penhallrick certainly agrees that a  Ensure there are multiple, meaningful benefits

360-degree holistic approach, along with for your target markets – treat them like peo-
innovation and effectiveness, plus quantitative ple, not purchasers.
and qualitative research are the only ways to “The result: Last Generation Sponsorship.
conduct a media campaign in African markets. Finally, sponsorship is focusing on the right thing
Penhallrick presented her paper Evolution and – the target market. And what we need to do is
Revolution of the Communication Landscape across embrace it and learn how to use it,” she says.
Africa, and stressed the need for marketers to know
and understand the continent much better if there is Recommendations:
any hope of conducting effective campaigns. She  Throw out the rulebook and get strategic:
also stressed that markets are changing rapidly, sponsorship is about results, not history
driven by the introduction and adoption of  Get away from the sponsorship package
technology and marketers mustn’t be fooled into mentality: best practice does not rely on logos,
thinking that each media has the same impact. tickets, hospitality and endorsement
Penhallrick gave figures for the whole of Africa:  Stop ‘supporting’ sponsorship: use sponsor-
print makes up 46 per cent, radio 23 per cent, ship as a catalyst to make existing spends work
TV 16 per cent, outdoor 14 per cent and cinema harder
one per cent. Across the continent, conventional  Take a magic wand approach to leverage:
media is 55 per cent and non-conventional 45 if you could do anything to achieve your
per cent. “You need to know about the culture of objectives and get that third win, what would
those you wish to target, for example: the conflict you do?
between traditional African culture and westerni-  Measure what matters.
sation is a constant struggle, ethnic languages
are slowly been replaced by new youth-led The full speeches from the presenters are
language and religion is very important. Football available online at www.marketingmix.co.za.
is the most popular sport,” says Penhallrick. The 2nd African Experiential Marketing Summit
Talking of football, Carl Monteiro, head of was hosted by Exp. Partners were Marketing Mix,
marketing for FIFA, spoke about the fan parks – Absa, Toyota, Show-co, Purple Apricot and
named Fan Fest – that were hosted in Germany Ukubona. 

Vol 26 No. 9/10 I 2008 I MarketingMix 43


by nicci columbine EXPERT OPINION

Getting mileage from contact


centre-based campaigns
Given the proliferation of brands in the Call centres play a vital role in supporting
global market environment, marketers are being multi-channel campaigns, both in outbound sales
constantly challenged to attract customers in new and inbound response to a call to action. As part
and innovative ways. Companies are being prompted of the multi-channel solution, agents’ responses
to explore alternatives to ‘traditional’ channels to can make or break a campaign, if they are inad-
claim a space in the minds and purchasing equately briefed on the details and objective of a
decisions of existing and potential customers. promotion or do not understand the essence of
As mobile and Internet-based media and the brand. As discussed, a close relationship
communication has enabled global market between marketing and brand managers as well
presence for brands to reach consumers anytime, as contact centres ensures that agents understand
anywhere, 24/7, consumers are exposed to such the objective of a campaign yet also convey the
a vast amount of information on competitive ‘spirit’ of a brand.
products and services, they are in the position to Call centres are, of course, critical to deter-
determine what best suits their purposes and mine the statistical success of a campaign in
budgets. This has only made marketers’ jobs terms of call volumes and responses, but in con-
more complex, necessitating more research and junction with business intelligence, can provide
direct interaction to gain an intimate understanding reporting to determine and advise a client a par-
of specific consumers’ needs and interests. ticular channel may not be effective.
Market segmentation has resulted in the need Adds Assabi: “The web is by far the best
to differentiate communication with customers reporting tool as access to information is avail-
according to their profile and individual prefer- able anywhere, anytime and can be differentiated
ences. Moreover, for brands to gain presence based on security and authentication.”
among the clutter of images and messages that Further, contact centres also have a part in
constantly bombard consumers, marketers need post-campaign and after-sales service to gauge
to ‘play’ in a space and context that consumers customer satisfaction and inform clients by provid-
relate to, creating opportunities to communicate ing valuable feedback for marketers to improve
with them according to their lifestyle preferences. future direct marketing initiatives.
As comments Yaron Assabi, CEO of Digital It is clear that in today’s integrated marketing
Solutions Group. “In future the most powerful environment, not only have contact centres
brands will be customer centric. In order to com- Multi-channel digital direct marketing creates become an extension of a company’s overall
pete, successful companies need to get to know touch-point opportunities for companies to ‘talk’ integrated interaction with the customer, but have
their customers and become their advocate”, to customers. also become a sophisticated tool to inform com-
emphasising the need for marketers to engage However, according to independent research panies of customer preferences.
with customers the PC, mobile phone and Internet by the Gartner Group, only some 33 per cent of Today, retaining customer loyalty is key to
become the primary interface for communication, all global companies interact with customers via ensuring financial sustainability. Knowing how
access to information and commerce, so increas- multiple channels. In SA companies still tend to customers think, behave and live are all important
ingly companies are shifting their advertising and use above-the-line media ‘push’ campaigns to for marketers to tap into what customer want
promotional activities to these channels. Says create awareness of new products or services, from brands. Concludes Assabi: “Marketers need
Assabi: “Companies that can provide comprehen- spending inordinate budgets on high-impact to think about how to improve the experience
sive web-based applications that are accessible to advertising for relatively little return on investment. from the customer’s point of view. Using technology
the consumer via the PC (Internet/intranet or Continues Assabi: “The web is the most that improves service versus creating a barrier will
extranet), mobile handset, PDA, voice via voice interactive and cost-effective marketing and sales enhance this experience. If done well, digital
XML, supported by a call-centre service, have the channel, enabling customer self-service to reduce channel marketing can make customers feel
advantage. It is definitely a space that marketers service maintenance costs. Personalisation and tremendously valued.” 
should be focusing more on.” customisation is easy, making it possible for
However, to capitalise on social and viral marketers to communicate with various groups Nicci Columbine
media, such as Facebook and MXit, where inter- of customers differently. Web-centric applications managing director
active communication enables users to interface can update all of the service channels Columbine Communications
with digital advertising and promotions, direct simultaneously thus ensuring consistent service (011) 880 8137
marketing takes on a different profile. across all channels. “ info@columbine.co.za

44 MarketingMix I Vol 26 No. 9/10 I 2008


by riaan labuschagne MARKETING AT-RETAIL

MAR for lower LSMs


On 12 September 1962 a young John F and poor revenue is normally due to strong
Kennedy tried to convince a nation in the midst of discounting) have come from the suppliers selling
an economic slump and a devastating war to their core values to the consumer and leaving the
stand behind the impossible: the task of putting a price perception to Shoprite. As one of SA’s
man on the moon. biggest advertisers the ‘Lower prices you can trust,
His words were as inspiring then as they are Always’ message will most likely be in our faces,
today. In particular, his reason for putting a man on our doorstep and in our mail before
on the moon strikes me as relevant: ‘We choose we get to the store. We like to look at it as a
to go to the moon in this decade and do the partnership, one where Shoprite is creating the
other things, not because they are easy, but low-price perception in the mind of the consumer
because they are hard.’ to the benefit of not only the consumer but also
Without a doubt we are in hard times, brought the supplier.
on by a global financial speed bump, high Nowadays, the larger format stores such as the
interest rates and escalating prices, to mention hypers carry as many as 60 000 lines. If we are
but a few. These are times where the cream is left really tuned into the market we may most likely
off the cake and the basics have become the only remember the price of 100 of these lines.
focus once again. Our observations on what Once we are in the store, the rest are sold on our
consumers are doing in these hard times make perception of value and not price, as we have no
for interesting reading. reference to compare the label price.
I work with a multitude of suppliers ranging As a supplier the catch is to be in the store with
from baby powder to glue, small to multination- the low-price perception with enough forward
als, importers and locals. One thing all of these share so that Mr. Consumer will see you, will like
suppliers have in common is that they want to what he sees and then pick you. If your value
speak to the consumer when he or she is walking proposition suits the needs of the consumer


past or close to their product. The interesting part holding your product then you have a sale. If you
of our viewpoint is not only do we see different are in the store but don’t have the forward share,
strategies being executed by a multitude of com-
One thing all of these point of purchase (POP) media accentuates and
panies into this market, but we also see what suppliers have in common artificially creates this exposure. It is this ability to
works. As times are really hard I would like to create exposure, coupled with the fact that POP
take a look at what we have seen in the lower is that they want to speak activities can correlate directly to unit sales, that
LSMs, and more specifically the retailer with the has necessitated the move of more budget into
to the consumer when he
undisputed low-price perception, Shoprite. the stores.
or she is walking past or


During the past few months the effect of high Having said all of this, we have obviously
interest rates, the corresponding high inflation looked at which parts are crucial in a successful
and the National Credit Act has put a squeeze on
close to their product. in-store campaign and without fail we have found
most credit retailers. Although this effect has been that price alone is not the pixie dust. Almost
felt by Shoprite consumers, the level of trust in without exclusion the most effective in-store
what Shoprite promises has helped the company campaigns we have managed had the following
to record revenues and an all time share price in common:
high. It is this belief that Shoprite will sell at the The benefits to the consumer were made clear
lowest price that is not only having the higher in a format that was easily consumed. This format
LSMs move from Woolies and Pick n Pay into was a combination of colour, language and size.
Shoprite but is also bringing their usual shoppers The product was differentiated. Although the
back for more. We have seen Pick n Pay and size of the medium had an effect the most crucial
even Woolies* push pricing to the core in their factor was that the other lines in the same
advertising and promotion strategies, and it is in category lacked similar promotional material on
this metamorphosis from value to price that we or in front of it. 
see the greatest danger.
Riaan Labuschagne
When our clients are competing for the
consumer’s purse, the best results both sales and MD, ZaPOP
revenue wise (good revenue is normally based on (021) 948 3188
good sales without discounting, where good sales riaan@zapop.com

46 MarketingMix I Vol 26 No. 9/10 I 2008


CASE STUDY

Pepsi branding and sales


awareness campaign 2008
Client: Ceres, Pepsi
Campaign: Pepsi campaign 2008
Agency: ZaPOP

Pepsi needed to increase awareness of its products across the country.


In-store marketing was needed to drive sales.

Solution: ZaPOP was recruited to deliver the in-store marketing and


branding solutions for Pepsi.
As a starting point, ZaPOP collected information about the brand, the
target consumers and also the shopping preferences of these consumers.
The 2006 Trade Search Omnibus study conducted by ACNielsen
revealed that 65 per cent of South Africans prefer to do their shopping at

Shoprite stores. Further research by Target Group Index (TGI) found that
30.7 per cent of shoppers who consume Pepsi products shop at Shoprite
stores while 30.5 per cent shop at Checkers stores and 14 per cent shop at
Checkers Hyper stores.
Based on this research, ZaPOP decided to execute the Pepsi campaign
across Shoprite Group stores nationally. The campaign was carried out
between 26 May 2008 and 20 July 2008 in 192 stores across South Africa.
Based on research conducted by TGI, ZaPOP knew that people who
shop at Shoprite Group stores best respond to advertising on the shelf,
where the brand is displayed.This guided its decision to recommend the use
of category banners in the aisles as well as freezer catchers.
Further TGI research also shows that the life-stage groups that are the
biggest purchasers of Pepsi products are dependant singles, play school
parents, and single parents, teen parents, nest builders and pre-teen
parents are also fairly heavy consumers of Pepsi products.
The majority of Pepsi consumers are LSM 6-9, English speakers, aged
16-44. Fifty one per cent of Pepsi consumers are male.
All these findings were considered during the creative design process.
The category banners and freezer catchers were designed to be aesthetically
intriguing with the messaging: Pepsi has a new look. Express yourself more.
These created consumer awareness, while a competition element with
attractive prizes prompted trial and purchase of the brand, which drove sales.

Results
Results from the 2008 campaign period (scanning data sales) were
compared with total scanning data sales from 2007.
It was found that year on year, sales increased by more than 160 per cent.
Campaign sales research found that the Pepsi Max 2litre bottle and the
Pepsi 330ml can were the best sellers for this period.
Due to stock issues, the campaign did not have the impact it could have
had. ZaPOP advised its client to monitor stock availability in stores, in future,
as well as to increase the number of stores selected for the campaign.
It has also recommended to the client the use of till posters and Radio
Retail in future to further drive product and campaign awareness. 

Vol 26 No. 9/10 I 2008 I MarketingMix 47


by eric levenstein / darren willans LAW MIX

Intellectual property rights and


the 2010 FIFA World Cup
The rapidly approaching 2010 FIFA World Cup civil and criminal remedies as well as mechanisms
presents a host of opportunities for the wouldbe for the search, seizure and detention of suspected
counterfeiter and infringer of various intellectual counterfeit goods. To use these remedies, a
property rights. There are steps that the organisers complainant can either bring a court application
and sponsors can take to protect their rights. for a search-and-seizure warrant or lay a
Two major threats that will emerge leading complaint with the relevant ‘inspector’.
up to and during the 2010 FIFA World Cup These proceedings usually take some time
are the distribution of counterfeit goods and to resolve but, in the mean time, the seized
ambush marketing. products remain in detention and out of
South Africa has become a hunting ground for circulation. Thus, the remedies of the Counterfeit
a proliferation of Chinese copies of various Goods Act are a forceful, practical mechanism
products. Over the years we have seen an against counterfeit goods.
increase in counterfeit and pirated CDs sold on The Trade Marks Act can be used where an
the streets, together with ‘knockoffs’ of various event organiser has a registered trade mark, such
clothing brands. More recently, direct infringe- as the World Cup symbol, which is used to
ment of rights relating to engineered products identify the event. Where an unauthorised person
(by imitation, copying or simulation) has Eric Levenstein
uses that trade mark to market goods, the
occurred. Given the magnitude of the 2010 FIFA organiser can institute civil court proceedings for
World Cup, it is inevitable that opportunists will trade mark infringement.
try to exploit the event to Similarly, the Copyright Act provides for severe
ply their illicit wares. penalties in the event of copyright infringement of
The same principle holds true for ambush insignia or materials that constitute ‘artistic works’
marketers. Major events such as the 2010 FIFA or ‘literary works’. Unauthorised copying – either
World Cup have become important vehicles for identically or in substance – can give rise to a
promoting and advertising products, and organisers claim of copyright infringement.
of such events generally require a monetary It remains to be seen how the South African
payment for participation, typically through authorities and the High Court will police the
sponsorships. Ambush marketing occurs when a various mechanisms in place to combat the
trader seeks to use the publicity value of an event infringement of intellectual property rights around
to gain a benefit from it despite not having any the 2010 FIFA World Cup. Will such legislation
involvement or connection with it and, more effectively stop ambush marketing and trademark
particularly, having made no financial contribution. infringers? Certainly, the legislature is moving in
An example of ambush marketing pertinent to the right direction and the designation of the
the 2010 FIFA World Cup would be where a 2010 FIFA World Cup as a protected event will
company gives away a ticket as a prize, without Darren Willans assist companies and event organisers in the
the organisers’ authority. Due to the stringent it unlawful to abuse trademark rights in the period before and during the sporting spectacle.
processes organisers follow, tickets that are resold context of a sponsored event. It is also aimed at Come 2010 and beyond, claims might well
or given away as prizes without their authority preventing ambush marketers and trade mark proliferate in our courts, where plaintiff
may well be cancelled and/or be regarded as infringers from attempting to capitalise on the companies seek to recover damages from
invalid. In these circumstances, an innocent huge publicity surrounding the 2010 FIFA World counterfeiters and others unlawfully attempting to
person who obtains a ticket in such a manner Cup. Anyone who contravenes these provisions exploit the marks and brands of legitimate owners
may be unable to gain access to the event. commits a criminal offence. during the event. 
The 2010 FIFA World Cup organisers have Furthermore, the organisers have registered the
made it clear that they intend aggressively various FIFA trade marks (such as the mark Eric Levenstein
pursuing wouldbe ambush marketers and all ‘World Cup’ and the FIFA trophy) and, where Director, Werksmans Attorneys
potentialinfringers of the intellectual property appropriate, registered the designs. Thus, apart (011) 535 8237
rights associated with the event. from the protection provided by the Merchandise elevenstein@werksmans.com
A solid starting point is that the Minister of Marks Act, they will have recourse through laws Darren Willans
Trade and Industry has designated the 2010 FIFA such as those set out in the Counterfeit Goods Senior associate, Werksmans Attorneys
World Cup as a protected event under the Act, the Trade Marks Act and the Copyright Act. (011) 535 8324
Merchandise Marks Act. This designation makes The Counterfeit Goods Act provides powerful dwillans@werksmans.com

48 MarketingMix I Vol 25 No. 9/10 I 2007

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