Beruflich Dokumente
Kultur Dokumente
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 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…
3 461 Jan-June 2008 Sponsorship and delegate enquiries: Lethabo: lethabo@systems.co.za (011) 234 7008
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.
“
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
“
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
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?
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
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
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
“
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
>>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.
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
“
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
“
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
“
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
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.
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.
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.
Determining the right formula for luxury goods: maximising desirability, while restricting accessibility
Gaby De Abreu, The Switch Group
Pricing:
A two day workshop
R6 750 plus VAT per delegate.
R6 250 plus VAT per delegate for three or more delegates.
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
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
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.
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.
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
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
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
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.
“
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
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.