MarketingMix

M E A S U R A B L E M A R K E T I N G I N S I G H T S I Vol 27 Issue No. 1/2 I 2009 I R25.00 incl. vat

 MarketingMix Contents
I 0 2 I Ed’s note I 2 1 I Expert opinion: Bryan Pearson
Bryan explains why marketers need to look beyond the plastic,
when it comes to customer loyalty.
I 0 3 I Retail marketing: the spend and the trends
Find out what the big retail trends are for 2009, based on the
findings of Marketing Mix’s Spend and Trends survey. I 2 2 I Brand anatomy
Pick n Pay’s Fresh Living magazine leads the way.
I 0 5 I Shopper marketing
Pedro De Gouveia explores shopper marketing, and the need for I 2 4 I Soccer marketing guide
greater collaboration. With the 2010 FIFA World Cup creeping closer, marketers
need to understand the local soccer scene, as well as the huge
marketing opportunities that soccer holds.
I 0 6 I Retail marketing: why it’s hot
Find out why brands should be investing in the retail marketing I 3 1 I Expert opinion: Keith Wiser
space. Keith’s third column has us sitting on the edge of our seats,
contemplating the way forward.
I 0 8 I Current trends and challenges
Experts discuss the big obstacles and the big trend in retail I 3 2 I Outdoor media
marketing. Find out which are the biggest challenges facing outdoor media
right now.
I 1 1 I The township market
I 3 6 I Community media
The township/lower LSM retail environment is unique – Holding strong in the face of economic pressure, community
understanding of the nuances and dynamics at play here is crucial media is giving traditional media a run for its money.
to planning and execution.
I 4 4 I Discovery Species
I 1 2 I In-store media Marketing Mix gets the low down on the Discovery Channel’s
Marketing Mix discusses the various in-store media available to latest study into the brawnier member of our species.
marketers, and how they should select and integrate these.
I 4 6 I Eastern Cape intelligence
I 1 4 I Shopper intelligence Getting to grips with the Eastern Cape marketing and media
landscape.
Shopper research is key to clever retail marketing. Find out how
to go about doing research, and what the specialists have learned
thus far. I 4 9 I Expert opinion: Walter Pike
Walter explores the power of a little micro-blogging platform
called Twitter. 1
I 1 6 I Expert opinion: Richard Duncan
Richard talks survival marketing. I 5 0 I Expert opinion: Benon Czornij
Hello Computer’s third article explores the technological
I 1 8 I Luxury Marketing Summit: reportback considerations that should be top of mind during website
Marketing Mix reports back from the first ever Luxury Marketing planning and creation.
Summit, with a better understanding of how to get the top end
(and the aspirational upper middle class) to spend luxuriously. I 5 1 I Expert opinion: Nicci Columbine
Nicci discusses what SA needs to do to improve its ranking in the
global measures of customer service.
I 1 9 I Expert opinion: Nici Stathacopoulos
Nici has a new perspective on customer service, thanks to the I 5 2 I Marketing 2009: understanding the challenges
mountain. and the way forward
The Services SETA team get together to discuss the issues critically.
I 2 0 I 7 Day [B]itch
Olivia Leitch, executive producer at Ola Films, tries out new I 56 I Law column: Rachel Sikwane
methods of connecting with her clients. Rachel discusses the impact of the tobacco products control act.

20 22 24 46
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www.marketingmix.co.za 3 461 Jan-June 2008

vol 27 / issue 1/2 / 2009 marketingmix.co.za

 Ed’s note

It could
be simple…
T
he beach holidays are long gone, and we are back into the swing of things here
at Marketing Mix. The magazine boasts a fresh new look to take it into 2009
with style.
Our website, www.marketingmix.co.za, is almost a year old, and we’re enjoying
aggregating content across our print and online platforms. In fact, in our print articles
you will notice the following graphic:

www.marketingmix.co.za

This graphic directs you to the website to find more information and extra content.
I had the pleasure of researching the retail marketing sector over the past few weeks,
and the fruit of this research is the very informative Retail Marketing Guide. After
investigating the challenges and trends in the retail space, I have decided that it has got
to be one of the toughest marketing disciplines. It could be simple: store +
shopper/money + brand = sold. But it’s not. The shopper is complicated and
unpredictable, and the store environment has evolved to become a dynamic and very
competitive place. Plus, researchers have not decided whether they believe what we say
about the manner in which we shop, which makes things a little fuzzy.
2 I will be watching closely to see how both brands and retailers cope with recessionary
pressures. I suspect that the top-end stores and brands will find it a very difficult
time, especially as the upper-middle-class shopper downgrades to stretch rands further.
The stores that have succeeded in creating tiered ranges, aimed at different market
segments will probably catch the largest shopper market – as long as the store brand
itself can meet the expectations of a range of shopper profiles. We can expect interesting
times ahead.
Also on the radar, is the 2010 FIFA World Cup and all things related. The Soccer
Marketing Guide answers questions around how to leverage this prestigious event. At
the time of going to press, I had tried to get a response from FIFA to some very
tough questions – such as, where can marketers find out which service providers FIFA
still needs to sign on locally? Or how can small and medium brands get involved as
third-party partners to official partners, exhibitors and service providers? And how will
FIFA enforce the rules that it has put in place to protect its rights holders, for example,
how will it educate local supporters about the fact that if they arrive en masse at the
stadia, wearing the branding of official sponsor competitors, they could be turned away?
Sadly, FIFA and the Local Organising Commitee (LOC) have yet to get back to me,
despite repeated requests for a response. Perhaps it’s time that local marketers joined
forces to rally the LOC for some real answers.
And so the first issue of Marketing Mix for 2009 gets off to a robust and exciting
start. Be sure to pen the Marketing Mix events into your diary with a stellar line-up of
conferences and workshops planned to help you navigate marketing challenges and
make the right decisions.
And with that, I wish you all the best for this year; happy reading. 

marketingmix.co.za / vol 27 / issue 1/2 / 2009

 Retail marketing guide

2009 retail spend and trends

D
elegates who attended the Marketing Mix retail conferences,
which included brand marketers, retailers, POP service
providers and ad agencies, were asked late last year to Brands will need to work closely with
complete the Retail Spend and Trends questionnaire in which they rated
the importance of media categories (both in and outside the store), retailers and shopper insight
POP promotional tools and advertising displays in 2008. They then had
to rate the importance these media categories and tools would have
in 2009. Respondents also had to indicate what percentage of total
specialists, to first, understand their
marketing budget went to each of these in 2008; then what the percentage
would be in 2009. shoppers better and, second, develop
The results the campaigns and activations that
Marketers were asked to rank which media were a priority in 2008, and
which will be big in 2009.
actually work. The proof will be in
Media preference the sales data.
Rank 2008 2009

1 In-store In-store

2 TV Mall media
of the urban leisure experience. Plus, the malls are investing in strategies
3 Mall media TV
that make their environment more attractive to consumers, and encourage 3
4 Radio Outdoor them to linger and window-shop; and also to make the visit a regular
5 Experiential Magazine fixture. Brands have wised up and are using the mall environment to
interact directly with consumers through sampling, demos and branded
6 Outdoor Mobile entertainment. This experiential marketing tends to be well received in
7 Magazine Radio the mall environment, precisely because shoppers are in the right frame
of mind and these activations create the brand desire that gets the
8 Community newspapers Experiential consumer into the store to buy.
9 Community radio Press Despite the success of experiential methods, they have dropped
down the ranks; perhaps these methods are not seen as a must-do within
10 Commuter media Community radio the current economic climate.
11 Direct to home Social marketing Based on the assumption that a climb in rank indicates a correlating
increase in intended spend, then mobile media could see quite a boom in
12 Community TV Commuter media
revenues. This reflects the reality that mobile marketing is picking up
13 Press Community paper ever more momentum in SA. Not only is this medium cost-effective,
but it has great reach and can be very powerful as either a branding tool
14 Mobile Online
or a call-to-action sales driver. The potential for couponing, discounts,
15 Social marketing Direct to home and also greater measurability and campaign feedback are all attractive in
the retail environment.
16 Online Community TV
Online media climbs the ranks. Brands are clearly taking
cognisance of the fact that consumers, especially those with higher
incomes, are online. Retailers are expected to uplift their home/
Analysis online shopping services, and start making this service more attractive
The Retail Spend and Trends survey found that in-store media advertising to the busy housewife (and not just businesses that buy in bulk
was a major priority in 2008, and remains so in 2009. This is in keeping once a month).
with the trend towards retail marketing, which is highly measurable, and Community media has fallen a few spots; these media are reaching
provides the ‘moment of truth’ where the brand comes into contact particularly small niche markets and perhaps don’t have the reach that
with the consumer. See page 6 for a more detailed explanation. brand marketers are looking for in the current economic situation.
At a glance, the results indicate that marketers are going to move The fall in rank of direct-to-home media may indicate that
their focus away from the mass giants (TV and radio, specifically), respondents find this media option too remote from the store space and
towards malls, mobile and digital media, which strengthen the cause of mindset. However, the challenge for stores and retail brands is to think
marketing at-retail. more creatively about the potential that this media has got for taking
The rise in the ranks of mall media reflects the realisation that malls coupons or special offers directly to the housewife’s door and enticing
have become destinations in their own right – going to the mall is part her into the store.

vol 27 / issue 1/2 / 2009 marketingmix.co.za

 Retail marketing guide

The results interest in 2009; this might be because a trial does not guarantee future
Marketers were asked to rank the importance of in-store promotional purchases and is not an easily measured activation, making it a risky
tools in 2008 and then in 2009. proposition.
It is clear from the results that more flexible, short-term solutions are
required in 2009; consider that screens (which claimed the number one
POP promotional tools spot) allow offers and content that is easily tailored to store, region and
Rank 2008 2009 even time of day. Digital signage too, ranks high on the list for 2009, for
the same reasons. However, the cost of this technology may be prohibitive
1 Permanent displays In-store screens for smaller brands with limited budgets.
2 Sampling Digital signage Gondolas climb the ranks for 2009, and this may be due to their
effectiveness in creating brand visibility in the aisles (essential in
3 Pricing Permanent displays driving conversion).
4 Temporary displays Gondolas Coupons will see much greater use in 2009 as part of in-store
marketing campaigns. The shopper’s budget is tighter than ever
5 In-store screens Temporary displays and coupons not only make the product more affordable (value for
6 Digital signage/branded counters Coupons money), but also makes it viable for the shopper to continue to
purchase that particular product above all others on the shelf. And
7 Movable displays Kiosks since couponing is not a direct price cut, there is a less danger of
8 Gondolas Sampling eroding brand equity.
Ceiling hanging boards ranked low in the results; research shows
9 Shelf-edge systems Movable displays that shoppers do not look above eye level or shelf height while
10 Kiosks Shelf-edge systems shopping, which means that anything that’s above their heads is simply
not noticed.
11 Refunds/rebates Pricing Movable displays and branded counter tops are also ranked lower
12 On-pack communications Refunds/rebates for 2009.

13 Ceiling hanging boards Branded counters/on pack In-store advertising displays

14 Coupons Ceiling hanging boards Respondents were asked to indicate which categories of in-store
advertising displays are regarded as most effective. In descending order,
4 15 Coupon holders Stack cards/coupon holders these are:
 Gondola ends
16 Stack cards Games/sweepstakes
 Counter displays

17 Games/sweepstakes -  Hot spot shelf displays

 Mobiles

 Floor-standing units

Analysis
Overall, the results indicate that within the store environment, brands
are moving towards media that break through the clutter and offer high
visibility – in-store screens, digital signage, gondolas and permanent
displays. Interactive media is also high on the agenda. For this reason,
kiosks should see greater rollout: they allow the shopper to find out
much more about a product/product range than they could ever find
out from an advertisement or a store salesperson, while also allowing a
brand to dominate the aisle space. Research shows that demos and
kiosks have the greatest interruption impact in the store and are
responsible for many a brand switch at the shelf.
Price promotions fell hard: consistent price cuts and price-based
promotions destroy brand equity in the long term and train a shopper
to buy only when pricing is lower. In-store sampling too, sees declined
Other survey findings
The concept of destination shopping is becoming ever more relevant, especially
as brand marketers and retailers look for effective means to keep shoppers in
store for longer periods, while also driving loyalty to the store or destination.
The study has noted that there has been a marked increase in consumer
awareness of green issues, yet it is not clear whether this will have a major
impact on local retail marketing strategy. Whether consumers will worry about
the environment when they have the much more immediate need to stretch
their rands is questionable.
 Floor displays
 Pre-pack displays and trolley marketing
 Shelf talkers
 Wall-mounted POS
 Dump bins
 Clip strips
 Case stackers.
What does it all mean?
Expect a tactical shift away from mass media advertising to niche
media advertising and integrated campaigns that deliver on short- and
long-term brand building and sales. Look out for greater innovation
in the store environment, with mobile, digital and in-store screens
promising to make the retail space a much more flexible and impactful
medium. This also requires media owners to develop packages
and pricing that is more adaptable and affordable. Brands are
going to be measuring and evaluating media spend and ROI;
accountability is the name of the game, and every cent must
be justified.
This, of course, means that the retail environment is going to
become more competitive. Brands will need to work closely with
retailers and shopper insight specialists, to first, understand their
shoppers better and, second, develop the campaigns and activations
that actually work. The proof will be in the sales data.
For a more in-depth analysis of the results and the current
market trends, visit www.marketingmix.co.za. 

www.marketingmix.co.za

marketingmix.co.za / vol 27 / issue 1/2 / 2009


Shopper marketing: the super glue
that strengthens relationships between retailers
and manufacturers
F
or years retailers and
manufacturers have
enjoyed a love-hate
relationship with regard to
prioritising their sales, marketing
and business objectives and,
more importantly, defining
their ownership of the
relationship with the consumer.
The eureka moment?
In the past three years a new
buzzword has entered the
already wordy marketing
lexicon – shopper marketing. As with many groundbreaking marketing
and retail developments, it was encouraged and endorsed by respective
global marketing and retail leaders – Procter & Gamble (P&G) and
Wal-Mart.
On 21 September 2005, a front-page article in the Wall Street Journal
spoke about ‘P&G’s most recent concept for further conquering the
world of fast-moving consumer goods.’ It was called the First Moment
of Truth and dealt with the first three to seven seconds after a shopper
first encounters a product on a store shelf. P&G contended that in
these first vital seconds, marketers had the best chance of converting a
browser into a buyer by appealing to their senses, emotions and values.
Soon, websites and blogs from across the world were commenting on
this ‘novel’ marketing tool that focused entirely on the shop floor.
So what’s the fuss?
The USA’s Grocery Manufacturers Association (GMA) defines shopper
marketing as: ‘All marketing stimuli developed and based on a deep
understanding of shopper behaviour, designed to build brand equity,
engage the shopper whilst “in shopping mode, and lead” him/her to
make a purchase’.
Seventy per cent of purchase decisions
are made in the store. In the US, shopper marketing is growing at 21 per
cent with manufacturers and 26 per cent with retailers, versus overall
marketing budget growth of two per cent.
It is estimated that between 2004 and 2010 shopper marketing will
have increased its share of manufacturer marketing investment from
two per cent to 12 per cent; that’s faster than digital marketing’s two
per cent to eight per cent over the same period. If I could offer you one
tip for shopper marketing, collaboration would be it.
1) Share your valuable information and insights
South African manufacturers and retailers should share the heaps of
valuable sales and consumer data they collect. One true consumer
insight is worth more than 999 pages of sales figures.
Take a page out of the 20-year-old information-sharing relationship
between P&G and Wal-Mart. Both share real-time information across
their common supply chain to ensure just-in-time delivery of stock by
shortening the order cycle time and increasing stock turns. On average,
Retail marketing guide
“Out-of stock situations need to be
identified quickly. Their root causes
need to be jointly analysed and
corrected so they aren’t repeated.”
P&G products spend less than eight hours in Wal-Mart’s warehouses,
and are usually sold within 24 hours of arriving at a store.
2) Work together when developing new products/
product innovations
US research shows that up to 80 per cent 5
of new products fail in their first year. The failure rate in SA can’t be too
far off. Manufacturers and retailers are now seeing product and systems
innovation as key to differentiating their brands and consumer offerings.
Manufacturers should consult retailers to find out what their
customers are looking for. Then jointly establish what type of packaging,
visual graphics, pack sizes and shapes will work in terms of display
space, customer appeal and convenience.
If you supply Shoprite Usave, the billion rand limited assortment
format, provide them with cutaway shipper packaging. This packaging
innovation allows its small store staff complement to wheel out, cut out
and display products easily.
3) Deliver availability
Nothing irritates a retailer (and customer) more than a manufacturer’s
inability to supply it with stock at the right time so shelves remain full.
Out of stock is an anathema to retailers. They often lead to a lesser sale,
a lost sale or a lost customer.
On-shelf availability shouldn’t just involve the buying department
of the retailer and the sales department of the manufacturer. It
should constantly be addressed at both board levels to ensure that all
stakeholders share
the common goal of correctly producing, supplying, warehousing, delivering,
displaying and ordering product across both organisations.
Out-of stock situations need to be identified quickly. Their root causes
need to be jointly analysed and corrected so they aren’t repeated.
These three steps will help to deliver growth in a planned and sustained
manner through the support of ongoing shopper-led insight. 
Pedro De Gouveia
general manager
Salient Strategic Advertising
(021) 506 9300
pedro@salient.co.za
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Retail marketing guide

Retail marketing:
why it’s hot
T
he store is that magical place where the shopper/ consumer,
armed with money, comes into direct contact with brands.
Ultimately, it is the shopper who makes it possible for brands to
be consumed and experienced. And it is this experience that (hopefully)
leads to a repeat purchase and consumption pattern. It’s not surprising
then that marketers are investing more heavily in the
retail space.
Among the factors that are driving the growth in
retail marketing spend, is the increase in consumer How do we compare?
spending (where there is consumer spend, there will Compared to the US or the UK, says Riaan Labuschagne, MD, Zapop, we have a
be increased marketing spend). However, this varying supplier buy-in proportional to sales turnover. “Some suppliers allocate a high
consumer spending is set to slow, thanks to the recession. percentage of their marketing budget to in-store, whereas a large majority of the
“The consolidation of a large range of products, multinationals are growing their budgets in-store at an ever-increasing pace,” he says.
even financial services, into super or larger stores has
Both the US and European markets have a greater appreciation and progressive
consolidated marketing spend,” says Riaan
approach in terms of investment within the retail environment, says Elton Scheepers,
Labuschagne, MD, Zapop. Plus. He adds, there is a
commercial accounts director, Todwil. “SA is relatively new to marketing and dialogue
direct correlation between media spend and sales,
which has justified an ever-increasing demand from within the retail environment and its spend reflects this.”
retailers.
6
Marketing, Ogilvy. Shopper marketing delivers the bottom line.
Consider too, that globally, retailer strength has shown steady
growth. A case in point is the successes of US giant, Wal-Mart, which is
the world’s largest public corporation by revenue, according to the 2008
“Global retailers never used to have Fortune Global 500, with stores and chains across the world. For store
giants, consolidations and global expansions are the name of the game.
marketing teams. Now, they are Elton Scheepers, commercial accounts director, Todwil, notes that a
consumer/customer-centric marketing approach has been adopted by
brands and retailers as opposed to the conventional brand-centric
poaching some of the finest brand marketing approach. “Organisations and brands have realised that to
deliver on the requirements and value needs of customers/consumers
marketers and are embracing the they need to have these consumers adopt, as opposed to accept, their
proposition,” he says.
power of marketing hype. They are Retailers have realised that they are onto something, and that their
stores are the brand. “Global retailers never used to have marketing

using branding to elevate their stores
and ensure that the shopper
experiences the brand”
Media measurement has become more scientific, thanks to research
methods that measure impact to bottom line (and not just how many
brand impressions the consumer can recall), and budgets are more easily
justified. Since retail marketing is very results oriented – it either sold
more, or it didn’t – it is undoubtedly going to grow. “The store space is
all about conversion,” says Kristina Couzyn, director: Shopper
teams. Now, they are poaching some of the finest brand marketers and
are embracing the power of marketing hype. They are using branding to
elevate their stores and ensure that the shopper experiences the brand,”
says Couzyn.
Given all of this, it’s not surprising then, that service providers like
Zapop are reporting a fast-growing emphasis on the promotion of
products at the shelf. It’s all about interrupting the shopper in the right
space, at the right time; and when they are in the store and in a frame of
mind that finds them receptive to clever marketing.
However, retail marketing has become very complex and requires a
very strong campaign strategy as well as realistic measures and evaluation.
“Retail marketing is affordable and yields the required returns, but
significantly most brands fail to complete a qualitative or quantitative
analysis after a campaign and therefore most often are not able to justify
the total delivery of the executions,” says Scheepers.
Looking ahead, brands, manufacturers and retailers to intensifying
their focus on the retail space. But it won’t be easy. 

marketingmix.co.za / vol 27 / issue 1/2 / 2009

 Retail marketing guide
Current trends and challenges
T
he current economic recession is changing the
retail marketing environment in terms of an
increase in retail marketing spend even as
consumers tighten their purse strings and overall
marketing budgets shrink. This dichotomy has come
about as the realisation of the ‘moment of truth’
drives more focus into the retail environment.
However, in light of the current economic climate,
there will need to be much more retail marketing
and shopper insight research carried out to push
brand sales.
“If we review what is happening in the US and
use this as the base case, spend within the retail
marketing environment will continue to increase year
on year,” says Elton Scheepers, commercial business
director, Todwil.
With marketing budgets shrinking, the trend is
moving towards more tactical below-the-line
campaigns, though not necessarily at the expense of
above-the-line branding. “With over 60 per cent of
shopper decisions being made in the outlet, this
trend is here to stay. As always, when volume and
profitability come under threat from weak economic
8 conditions, more knee-jerk-type activities find their
way into the marketplace,” says Scheepers.
Manufacturers too, are trying to cut their costs.
Marne Dirks, MD, Executrac, finds that to keep mar-
gins intact, manufacturers are focusing on making
business processes more efficient and cutting costs, although it seems
to have only a limited impact. The only bright light on the horizon is
the drop in fuel prices.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Premium store brands and private brands:
A study carried out by Ipsos MORI in the US in 2007, found that 41 per cent of
shoppers identify themselves as frequent buyers of private labels, with 70 per cent of
respondents believing that these private label items are as good as, if not better than,
national brands.
Today, private labels often mimic the category leaders, but are still available at a lower
price. In recent years, the emergence of premium store brands changed the face of retail
yet again, allowing retailers to generate higher profits and position themselves differently.
According to stats quoted by Millward Brown (What’s in Store for Store Brands, July
2008), private label penetration is estimated to be growing by five per cent per annum,
while for manufacturers, the figure is closer to two per cent. Plus, retailers have been
very clever with customer insights and have developed product ranges that meet the
needs of their shoppers; as a result, shoppers have grown to trust the store and its own
brands far more.
So what can marketers do to protect their brands?
Millward Brown’s report suggests that marketers increase consumers’ perceived risk of
switching (ie focusing on quality and not price). This is not something that will be
achieved easily across all categories during the current recession; it is only in a few
categories and industries that quality will outweigh price as a purchase driver (for
example, in the fashion and clothing sector; parents will pay a premium for school
uniforms that are going to last longer and wear better). They could also break through
the clutter with deals that the private labels cannot match, or they could offer a unique
brand experience that private labels are unable to.
Retailers are also under severe pressure to cut costs while
meeting profit targets and retaining shopper loyalty. Reports
(www.tradeintelligence.co.za) indicate that retailers had better than
expected December trade, but that January is off to a slow start. The
bottom line is that this year will be tough. To maintain profits, stores are
going to have to work hard at creating the right shopping environment;
service delivery is key, and a simpler, more pleasant shopping experience
must be created.
Brands and retailers are going to have to work more closely together
as a key component in maintaining profits for both parties is to keep the
shelves stocked with the right brands, at the right price. All too often,
shoppers are faced with empty shelves and products missing for
inordinate amounts of time, eroding loyalty and confidence in product,
brand and retailer.
Stephen Mawby, managing director of Glendinning Management
Consultants, compares SA’s retail market to those of more developed
countries, where the average store product range is very complex, and all
aspects of the service and supply chain have been refined. Locally, he
says, there are still issues around supply, store range, store layout and so
on; retailers need to drive the research that exposes the weak spots and
highlight new opportunities.
As stores try to achieve this, we may see continued focus on ready to
eat, prepared meals, and also on healthy or organic foods; however,
pricing needs to be carefully considered (even premium shoppers will be
cutting back and looking for value).
Another result of the tightening of purse strings will see the loyalty
of high-end retail shoppers being eroded as they switch to mid-range
 Retail marketing guide
stores. In fact, shoppers are going to be planning
shopping trips more carefully to avoid the unplanned
top-up shop that is rife with impulse purchasing.
They will also be more careful about what they buy,
and where. This may result in shoppers visiting a
greater variety of stores to take advantage of better
pricing, but buying fewer items in each. Certain
luxuries will simply be left off the shopping list (or
replaced by ‘the next best thing’), and bargain hunting
is going to take on a new meaning.
“I have found that people are shopping less
frequently, and are doing larger, more planned and
controlled shopping trips,” says Siemon Scamell-Katz,
founder, TNS Magasin (international shopper strategy
consultancy), and global director of TNS Retail and
Shopper. “The typical list has around nine items on it, so there is still
room for marketing to influence what people do and what they buy.”
Innovative loyalty mechanisms may prove invaluable, and we’ll be
closely watching Pick n Pay as it joins forces with Discovery healthcare,
to offer bigger discounts to the health insurer’s clients and gives these
shoppers value, where it counts – in their pockets.
Private labels and store brands will find themselves perfectly
positioned to take greater share of store spending – especially those
store brands that offer comparative value at a lower price – which
strangely doesn’t always happen. And national brands will increasingly
be defending their spot on the shelf. “The tussle between the retailer’s
private labels and the national brands is very good for the consumer,
who gets greater choice and more honest pricing,” says Kristina
Couzyn, director of Shopper Marketing, Ogilvy.
10 When it comes to the clothing and fashion retailers, we can expect
shopping to slow somewhat, as consumers steer away from unnecessary
impulse buys. Stores that sell good quality fashion staples at affordable
prices will fare well – if the store brand is positioned well, that is. The
high-end luxury brands will be unlikely to suffer too much (their
consumers have more cash to spend), but may well feel the loss of a
chunk of aspirant consumers who simply cannot afford luxuries anymore.
The shopper is under tremendous pressure from all sides, and loyalty
to any store, and any brand is now at its most fragile. Shopping habits
are changing to meet needs, and the factors that drive the purchasing
decisions have also changed. “High food inflation definitely impacted
on the spending power of consumers. Customers have shied away from
luxury and expensive items and are more anxious about creating debt,”
says George Steyn, managing director, PEP.
Influencing purchase decisions
According to a Millward Brown Knowledge Point report (What are
the main influences on purchase decisions), researchers find that it
is the out-of-store experience that generates desire for a brand, but
that this is strongly affected by in-store activity. The report also states
that the balance between out-of-store desire and in-store activation
differs by country, and across categories and brands.
Price promotions are found to have the biggest influence in-store.
Launches and challengers will want to disrupt the category, while
brand leaders will want to emphasise their familiarity and aid quick
recognition and brand-buying routine.
The report finds that in-store experience can evoke associations from
advertising, generating stronger interest in the brand.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Retail in 2009
The 2009 Consumer Shopping Intentions Study carried out by Cavallino LLC in the US,
determines where and how much consumers plan to spend in 2009. The results reveal
that about 69 per cent of US adults plan to spend less at retailers than they did in
2008. The younger shoppers (18-24) plan to spend the same or more, especially at
mass merchants. These stores offer consistent value and low prices.
If this trend is true in SA, it means that stores like Shoprite (which offers a wide range of
products and categories, consistently, at low prices) is well positioned.
According to research, a significant number of higher LSM customers
are beginning to ‘shop down’. “Luxury, high fashion and extensive
entertainment are being replaced by basic consumables and semi-durable
essentials by many of these customers. The introduction of the National
Credit Act also means that less credit is available and so people cannot
spend money they do not have,” says Steyn. This is, of course, good
news for the cash-based discount retailers that will see a boost in
business. Indeed, Labuschagne reports significant growth in the
non-credit food sector, while the higher LSM sector is taking a hit.
In the townships, the spazas and informal traders will be battling
personal financial pressures, but are likely to enjoy increased sales as
township shoppers seek out more affordable pricing and flexible
shopping. Brands and distributors can make the most of this channel by
working closely with the informal traders to match their needs, and
develop packaging and pricing that works.
Shopping centres based in and around townships will also need to
create positive experiences for these shoppers as budgets shrink.
Shopping mall retailers will need to provide serious value for money and
responsible cost saving.
A proliferated marketplace
A further marketplace challenge is the intense proliferation of brands
on the shelves. Consider the finding of the TNS Retail and Shopper
division: the average global total FMCG offer is between 200 000
and 400 000 SKU, but the average household FMCG usage over one
year is between 250 and 350 SKU. This range complexity has led to
range blindness, says Peter Wilson, business manager, TNS Research
Surveys: Client Services. Shopping is no longer a simple task and
shoppers don’t have the time to linger in the aisles checking out
the store’s range. Wilson finds that while people are shopping
more frequently at more stores; they are spending less time shopping.
In 1995, he reports, the average shopping trip lasted 45 minutes;
in 2005, it lasted just 30 minutes. It’s no wonder then that shoppers
are quickly learning store layouts to save time when they shop.
Unfortunately, there is little data available for the South African retail
environment.
“The proliferation of new SKUs across all major categories in an
attempt to meet consumer needs has led to massive complications for
the entire value chain,” says Dirks. Shorter production runs, which are
increasingly unprofitable, are giving warehouses and distributors bigger
challenges. The impact on marketers is a portfolio that doubles every
few years, and greater difficulty in allocating marketing budgets.” Plus,
direct marketing expenditure in absolute numbers is increasing less than
CPI,” says Dirks.
Brand and marketing clutter are huge challenges; so too is the
proliferation of private labels. Stock returns increase daily, says Dirks,
while receiving bays become more complex. The administrative burden
of these developments has increased the cost of these activities. 
 Retail marketing guide

The township market

T
he township market is seen as a high
growth area for the retail sector because of
the growth of the middle class and its
respective spending power.
Getting the retail marketing right in townships is
about understanding the township shopper, and the
unique and complex market dynamics of the envi-
ronment. “Understand the market: the language
they speak; their culture; travelling habits; source
and type of income (weekly or monthly); gender;
access to water and refrigeration; and so on,” says
Riaan Labuschagne, MD, Zapop. Obtaining and
maintaining an effective distribution chain is also
essential

A few trends and tips from the experts:

 Zapop has noted a few major differences
between retail marketing in lower LSMs and that
in urbanised higher LSM environments. “The
more rural the retail environment, the
less influence children have on buying patterns,”
says Labuschagne. It will be interesting to see
how the rise of child-headed families (a social
phenomenon that has emerged thanks to the
Aids pandemic)
affects retail trends.
 Another major difference is that these customers
shop because of an immediate family need. After
all, they have low income levels, and an almost
nonexistent disposable income. and cannot shop
as freely as upper LSM markets do. “Every cent
that our customers have counts, therefore shopping
decisions are based on best value (low price + acceptable quality),”
says Marcus Banga, marketing director, PEP. Priority is given to kids
and home essentials (stylish products, at a good price, are a winner).
 Word-of-mouth communications is huge in the townships, and these
consumers have large social networks.
 Radio and TV are the most accessible and effective media for raising
awareness in this market, and certainly there is access to the mass
media in the townships. However, seeing as the demographics of
consumers and their access to media varies from one township to the
next, it is important to do homework before assuming this is true
across the board.
Top tips for ensuring retail marketing works
1. Ensure you have sufficient stock. Most campaigns fail because
they kick off with a bang and then have lacklustre results
because of a lack of stock.
2. Differentiate in the store. In most categories today the consumer
has a few options, if the promotion does not differentiate the
product from those competing lines next to it, the campaign will
have mediocre results.
3. Offer the customer value. This does not relate to price at all, but
rather to the perceived value for the customer.
11
 Knock-and-drop leaflets are used to communicate more directly
with customers. “This is particularly effective in communicating
our range as well as special offers. It works well with our
customers who have limited education as pictures say a million
words,” says Banga.
 The township community is hungry for marketing and media innovation,
so brands need to be more adventurous. Integration with new media
is a good idea, and so is experiential activation.
 Malls and shopping centres in the township can see foot-traffic in the
millions each month, so brands need to be there.
 Newspapers should be used as a call-to-action tool, while magazines
promote fashion merchandise, for example.
 Outdoor media should be used to create long-term brand awareness.
 Giving back to the community in a meaningful and sustainable way is
good for business and branding.
 Promotions in-store help customers to identify best value items
or weekly deals and promotions. “POS material also assists our
customers to navigate our stores easily, which simplifies matters for
them and adds to the service levels within our stores. Lower LSM
customers are just as particular about service as their wealthier
counterparts,” says Banga.
 In the township markets, product packaging can be used
to deliver POS solutions. “Don’t just give them a bulk-pack brown
box, give them a branded pack in which the store owner can display
your product in the store. Understand that these different channels
require different pack sizes,” says Kristina Couzyn, director: Shopper
Marketing, Ogilvy. 

vol 27 / issue 1/2 / 2009 marketingmix.co.za

 Retail marketing guide
In-store media
T
here is a growing repertoire of media options available in the
store space and while no particular media stands out as the
number one in-store medium, understanding each available
media and careful selection must be undertaken to ensure a successful
campaign.
There is no blueprint for success, though in-store campaigns need to
be supported in the mass or niche media. “If you are targeting the broad
public with a nationally available brand, TV and radio still remain good
options to get your message across efficiently,” says Geoff Whyte,
commercial director, Cadbury, Africa and Middle East.
Interestingly, dominance outside the store does not guarantee sales
in-store. High-profile TV campaigns, for example, can drive sales for
12
POS design tips
Wayne Elsom, CEO of Todwil, gives marketers a few tips for the
design of point-of-sale (POS) marketing material:
 Find out what your competitors are busy with, and make sure that
you familiarise yourself with their respective positioning and
attributes.
 Research trends in foreign markets to get a fresh perspective.
 Be different: your display should have its own visual equity and a
strong personality.
 Keep your POS display simple. Make it easy for the customer to
find what they are looking for or to understand your promotion.
 Protect your display unit in terms of trademark law and copyright,
and ensure that you are not infringing on your competitors’ rights.
 Pre-test your display in-store, alongside your competition’s displays.
 In designing your display, consider future design trends to prevent
your display from dating too soon.
 Your product should be placed close to eye-level and as close to
your competitors as possible (preferably to the right as consumers
scan for products from left to right). If people are instinctively
drawn to the leading brand, there will be a greater chance of
switching to yours if it is competitively priced.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
When shoppers buy impulsively, what drives the purchase?
Ogilvy Activation’s global research has found that the following
media and marketing tools drive impulse purchases in the store:
 24 per cent: off-location display
 18 per cent: demonstration
 17 per cent: price promotion
 12 per cent: retailer recommendation
 11 per cent: consumer promotion
Visibility and engagement are major drivers of impulse buying (price
is a driver, but its importance can be overestimated). “Price promos
simply encourage your existing shoppers to pantry-load; it doesn’t
always get you new consumers or shoppers,” says Kristina Couzyn,
director, Shopper Marketing, Ogilvy SA.
What influences shoppers’ brand decision?
Ogilvy Activation’s global research has found that the following POP
promotional tools influence the shopper’s brand decisions in the
store:
 31 per cent: demonstration
 28 per cent: price promotion
 27 per cent: consumer promotion
 26 per cent: retailer recommendation
 25 per cent: off-location display
“We claim that it’s price that has the biggest influence on our
purchases and we like to think we are logical in our decision-
making, but the truth is, we’re not,” says Couzyn. Brands that
engage the shopper, win.
rival brands by sending consumers to the corresponding aisle in the
store. “This gap between awareness and sales conversion is one of the
biggest challenges facing marketers today,” says Kristina Couzyn,
director: Shopper Marketing, Ogilvy.
As a general rule, it is high visual impact that sets brands apart in the
store, but also depends on the brand and its status within the market. “If
you are talking about a well-known brand with well-known advertising,
a shelf talker may be a great solution. If you are the new kid on the
block you probably need to invest more to make a statement and get
consumers’ attention,” says Whyte.
Media options
Digital/LCD screens
Digital screens offer flexibility as content can be easily tailored to the
individual store, its location, the time of day, special events, etc. They
also have the power to catch the attention of the shopper with content
that is more compelling than a simple static display.
Consider that in the US, researchers and retailers have teamed up to
test a new wireless screen (the ShelfAds system), that automatically
broadcasts a 10-second ad when a shopper walks by. The battery-
operated devices cost around US$300, and are easily attached to the
shelf edge. They are able to dispense scents, which means brands or
categories can engineer brand experiences more easily.
Locally, TV screens and production costs are an expensive investment.
“Digital screens definitely have a justified share of the in-store media
space but the large capex required limits rollout,” says Riaan
Labuschagne, managing director, Zapop.
Mobile
The integration of mobile marketing into a retail strategy has not really
taken off as yet. “I believe the concept is exciting and will have a role to

play within our market,” says Elton Scheepers, commercial business
director, Todwil.
However, mobile couponing is seeing growth, and should be used
more extensively once the POS systems on the retailer side have been
upgraded and redemption is easier to manage.
For mobile to be successfully integrated into store campaigns, there
should be a very strong call to action, while mechanics of the campaign
must be clear. “This is normally done by means of a cartoon-type
explanation and is particularly valuable in the illiterate market,”
says Labuschagne.
A US-based research firm, ForeSee Results, found in its December
study into mobile applications and shopping (www.mobilemarketer.com),
that one in four people used their mobile phone to look at price
comparisons; 15 per cent used their phones to go online and check
product reviews. The study also found that people who use their
mobile phones to shop are more likely to buy products offline not via
online shopping.
Packaging
Packaging plays a very important role in the retail space in terms of
allowing the shopper to recognise the product as well as converting the
shopper. “Packaging is the first moment of truth,” explains Couzyn.
“So brands need to know what the cues are in the category, and then
design the right packaging,” she says.
 We supply fast, cost-effective, high quality retail surveys
so you get the full picture
 For under R60 a survey, you can afford to read your
entire customer database and not just a small sample
Retail marketing guide
Displays
Display advertising can be very effective in the store space, especially
larger displays and free-standing units, although they do cost considerably
more. Since 2006 in-store media turnover in Shoprite and Checkers
stores has grown seven-fold, thanks to the growth of the display
advertising sector in-store. “This growth rate is attributed to the fact
that we sign contracts four to eight months in advance, and it is not
showing any signs of slowing,” says Labuschagne.
Trolley advertising
Trolley branding and advertising is old hat. Or is it? DStv has just
partnered with Icon Media to create branded trolleys in an attempt to
communicate with shoppers. The tagline, Come play with DStv, inspired
the design of the trolleys, which are branded with their favourite TV
characters, and styled like racing cars. They are also great for advertising
to kids. So let’s rephrase: boring trolley branding is old hat.
Coupons
Coupons have the potential to drive sales; they would be useful in driving
a trial of a new product, for example. They also allow a brand to sell its
products at a discounted rate without resorting to price cuts and price
promotions. “Coupons are a great reciprocity tool in the store. If they
are distributed by a promoter or a dispenser in the store it tends to work
well,” says Labuschagne. 
 Retail marketing guide

Shopper intelligence
S
pecialist shopper research must be carried out to make
sense of the retail environment, and to gain an under-
standing of what motivates the shopper’s behaviours
and decisions in the store. “Global research spend allocated to
retail, including the shopper, is between 15 and 20 per cent. In
South Africa only five per cent of spend goes to retail, but it’s
what everybody is talking about,” says Siemon Scamell-Katz,
founder, TNS Magasin, and global director of TNS Retail and
Shopper. The shopper retail/marketing industry is said to be
worth R130 bn (and that’s just the FMCG categories),
according to Michael Broughton, acting CEO of the
Consumer Goods Council of SA (CGCSA).
The good news is that there is a lot of research innovation
taking place. “There are a greater number of store pilots and
targeted shopper research going on. Retailers are waking up
to it and they want category insights. They are thinking about
their competitors,” says Andrea Ellens, associate brand
director, Added Value.
Shopper research can be a costly investment, so brand
owners are encouraged to start small and be very particular
about the type of research methodology used. “When
companies don’t know what research to buy, we actually
recommend that they begin by studying existing in-store data and use it into retail trade by way of a coherent shopper strategy,” says Marne
to get their basics right, including supply chain and merchandising. Dirks, MD, Executrac. A lot of rich shopper and activation insights
14 Once this has been achieved, they can start asking the more complex never make it into the store, due to a lack of execution capabilities.
questions around shopper insights,” says Stephen Mawby, managing “Research firms tend to complicate research feedback in this area and I
director of Glendinning Management Consultants. He points to tech- have seen as many as 18 shopper demographic profiles for one FMCG
company in the same channel, making it near impossible for a sales rep
to execute a strategy,” says Dirks. Classifications should be kept to a
simple two to three shopper types per channel, based on in-store
“The experience of the shopper both observation.
It should also be kept in mind that a store owner is the best source
before and during the shopping process of free information about the shopper, category routes and pricing
levers, so working more closely with them will provide simpler, more
as well as during consumption post- cost-effective insights.

shopping will feed back into the pre-shop
motivations, and will inform future
shopping missions and decisions.”
nology and software available in the UK, which allows the marketer to
input sales data obtained from the retailer, and then slice it up and
analyse it in many different ways to
get a holistic understanding of the performance of its brands. Locally,
sales data is available, but there is a shortage of standardised software
or tech systems.
Very important is that the research itself be integrated into marketing
strategy to address the business goals and problems of a brand or store,
and should be accompanied by both pre- and post-testing to determine
its effectiveness. Yet fewer than five per cent of brands globally are
confident that shopper research has been integrated into their strategies,
according to Peter Wilson, business manager: TNS Research Surveys
Client Services.
“I have seen very little evidence of shopper research finding its way
Shopper research: step by step
Shopper research begins by understanding what happens before the
shopper enters the store. At this stage, the researcher is investigating
the brand equity pre-disposition (whether the shopper has a positive
perception of the brand, as created by previous consumption and
advertising), as well the different shopping missions that the shopper
plans and their impact on in-store behaviour.
The next stage of shopper research investigates how the shopping
mission has motivated the choice of store, the behaviour in the store and
the impact of different marketing media and messages. As says Kristina
Couzyn, director: Shopper Marketing, Ogilvy, it’s overly simplistic to
say that 70 per cent of decisions are made at the point of sale without
understanding what kinds of decisions are made.
The experience of the shopper both before and during the shopping
process as well as during consumption post-shopping will feed back into
the pre-shop motivations, and will inform future shopping missions and
decisions.
New technology
The use of technologies like infrared and radio frequency identification
(RFID) have not seen extensive rollout locally. “SA is essentially a
follower in terms of international technology developments. We do not

marketingmix.co.za / vol 27 / issue 1/2 / 2009


anticipate much before 2011,” says Broughton.
Coca-Cola SA, however, is reportedly using GPS trackers in trolleys
to get maximum exposure in-store by tailoring its execution standards
by channel, geography and shopper type. This allows Coca-Cola to
ensure that the correct brand and pack mix is available at the correct
price and is communicated effectively in every outlet. “This means
moving away from a one-size fits all approach into a segmented
approach where the picture of success is altered for every outlet based
on the variables. The caveat, as always, is the capability of the sales and
trade marketing folk to execute against multiple pictures of success in
various outlets,” says Dirks. The ultimate goal will be for South African
companies to manage day part marketing on this level.
New research methodologies and technologies:
Radio Frequency Identification
RFID tracking sees the trolley being fitted with a device which tracks
its path through the store, as well as registering where the shopper
lingers and for how long. This is helpful in identifying the store hot
spots from the shopper’s perspective.
Infrared-assisted research
Infrared technology was used by Nielsen’s US offices in the PRISM
project to provide traffic counts for different parts of a store; this
allows the store to be rated a medium for marketing. However, the
project has been shelved due to lack of funding (Wal-Mart pulled out of
the project in late 2008, according to reports on www.adadge.com).
Retail marketing guide
Video mining
In the US, technology that was developed by homeland security is
being used to ‘watch’ video recordings of the shopper in action and
anonymously record their demographics, while also analysing which
store elements the shopper engages with (www.videomining.com).
However, shopper privacy is an issue.
Eye-tracking
Eye-tracking could be useful for understanding what the shopper sees in
the store. But researchers say that there is a disconnect between what
the shopper looks at and what that actually does for decision-making
in the store.
This form of observation must be layered with other methodologies
for better insights.
Marketing at Retail Initiative (MARI ) research
MARI research is endorsed by the Point of Purchase Association
(POPAI), which has been established locally (www.popai.co.za).
The MARI research aims to measure engagement with in-store
media and marketing messages. A sample of shoppers is fitted
with a clipcam (surgical camera, attached to their glasses, or
a dummy pair of glasses). This camera records what the shopper
sees, and which brands and marketing messages they interact with,
to determine what sort of marketing works and where it is best situated
in the store.
There are concerns, however, that the cameras will impact shopper
behaviour and will compromise the research. 
 Expert opinion
Desperate times, desperate
F
or many people Christmas came early
last year, literally. The windfall of retail
promotions that spread like wildfire in
December in places like the UK, France and
Australia were a clear sign of the desperation
being felt in boardrooms across the world
following the sharp economic downturn
experienced across the globe in the second
half of last year.
I spent December last year travelling in
Europe. Much of my time was dedicated to
walking the high streets, window-shopping
and bargain hunting. My timing couldn’t
have been better as the pound weakened by
20 per cent against the euro and high street
retailers and shopping centres alike went into
promotional overdrive. This selling frenzy
Whatever you believe was further fuelled by Woolworths UK’s
closing-down sale that flooded the market
with ludicrously discounted toys, CDs,
about the sense DVDs and Christmas bounty.
Everywhere I looked, the signs of desperation
16 stared back at me in the form of red ‘Sale’ and
and sensibility of ‘Clearance’ signs, large discount banners and
multi-buy deals of one form or another. The
traditional ‘bogof ’ (buy-one get one free)
promotional discounting, promotional offer was replaced by its eager
successor ‘buy one and get two free’ as
retailers resorted to generous incentives to
one thing is for sure, lure shoppers out of the cold, and prise open
wallets and purses that threatened to remain
resolutely shut.
it doesn’t always work. No sector was immune from the
clamouring for consumer spend.
Broadspeed.com, an online car broker,
stunned the UK motor industry by offering
a bogof offer on a car. The offer for two
Dodge Avenger SXT 2.4i models for
£20 000 generated a consumer response that
crashed its website and delivered 22 000
customers. Another example of clever
marketing or was it more a case of crisis
marketing? The company’s management
seemed happy enough but will it really be
happy with the longer-term effect of its
cut-price marketing? For now, the managing
director seems happy to be clearing his stock
and making a modest profit when his
Digital and Mobile at-Retail
www.marketingmix.co.za
marketingmix.co.za / vol 27 / issue 1/2 / 2009
competitors are unable to move stock at a
cost of £500 per car each month.
With new car sales in the UK down by
23 per cent in October last year, the biggest
fall in 17 years, the car industry is facing its
worst crisis since 1966, with unsold stock
burning a deep hole in the pockets of car
traders. In November 2008, four major car
dealerships called in the administrators with a
loss of 400 jobs. So perhaps its initiative
should be regarded as necessary and the term
we should use is ‘survival marketing’.
The car industry is but one of the multitude
of sectors struggling to stay in business. I
got talking to one London mini-cab driver
and learnt that I was one of his first
customers and that he was actually a mortgage
broker; with the dramatic downturn in house
sales was forced to get behind the wheel of a
car to earn a crust. This prompted me to turn
my attention to the estate agent business.
When I paid a visit to one of the UK’s greatest
estate agent success stories, Foxton’s, the
picture was no less bleak: one cash-strapped
business executive even threw in his nearly
new Bentley to try clinch a deal. There were
no takers.
Taking to the air on more than one
occasion I observed how the retail squeeze
was being felt in the various duty-free shops
and numerous airlines. Not everyone was
suffering as much as the others though.
Europe’s original and largest low-fares airline,
Ryanair (carried 58 million passengers last
year on 800+ low-fare routes across 26
European countries), seems to have bucked
the recessionary trend with an 11 per cent
increase in its December traffic. Flying with
the airline last month I noted with mild
amusement that in addition to the usual
in-flight refreshment sales, it was sweating its
asset in all sorts of promotional ways, from
selling instant-win tickets, discounting
duty-free sales and heavily promoting sales of
its 2009 Stewardess Bikini Calendar. Who says
sex doesn’t sell!
Even the UK Chancellor of the Exchequer,
Alistair Darling, was drawn into the retail fray
24 February 2009

measures
when he boldly dropped the country’s VAT
rate for 13 months by 2.5 per cent to 15 per
cent to help stimulate the economy. While
the intention was clear, the wisdom and full
impact of his decision is still to be seen. The
short-term implications included widespread
retailer and consumer confusion at the till,
substantial operational expenses for UK
retailers who were forced at short notice
to re-program their internal accounting
systems, tills and price lists. The cost to
retailers has been estimated at £300 million and
the change is expected to cost the Treasury
£12.5 billion. The actual saving to the average
UK shopper has been calculated to be a modest
£170. Was it really worth it and will it really
stimulate the economy? Many fear not.
The financial pundits are predicting that
the full impact of the global recession will not
be felt for the next six to 12 months. Britain’s
Chancellor of the Exchequer agrees:
“The economic times we are facing... are
arguably the worst they’ve been in 60 years.
And I think it’s going to be more profound
and long lasting.” This bleak outlook is one
shared by the US market where consumers
are in full-scale retreat and major retailers
Macy’s, Abercrombie & Fitch and GAP
reported sales declines of more than 10 per
cent in November.
While total sales volumes in the UK
climbed 0.3 per cent in November from the
previous month, the net profit levels have
been hit hard, absorbed and indeed surpassed
by the deep discounts. In fact, the UK’s retail
sales values fell 2.6 per cent on a like-for-like
basis. This was the first time since 1995 that
retail sales declined for two consecutive
months. Furthermore, the long-term effect in
the high street of the high profile price-cutting
strategy has still to be seen. I suspect that the
way we shop has changed irrevocably forever.
While I understand the natural predilection
to rely on fire sales, dramatic deals and banded
offers, I question the sense in discounting
brand value. I believe that any short-term gain
will be paid for dearly in the long term. Good
old-fashioned loyalty marketing and customer
3rd Interactive Marketing Summit
www.marketingmix.co.za
Expert opinion
service seem to have been largely ignored as
retailers chase new blood rather than protect,
retain and reward their existing customers.
This can only end in tears as loyal customers
are trained to only buy on deal. The simple
truth is that shoppers don’t pay full price that
often anymore, unless they absolutely have to.
It’s not that long ago that this discount
principle was proven in SA by the trials and
tribulations faced by the management of the
juggernaut Edgars on the back of its discount
track record. I may be wrong and hope that I
am. Abercrombie & Fitch, however, will be
hoping that I’m right and that its brand will
help it through the bad times as its brave
decision to refuse to join competitors in
aggressive discounting in November cost it a
28 per cent drop in sales in the US.
Whatever you believe about the sense and
sensibility of promotional discounting, one
thing is for sure; it doesn’t always work. If
consumers aren’t desperate for something, or
the financial motivation isn’t strong enough, 17
there is no guarantee that even the best pro-
motional offers will get them to open their
purses. And if retailers go too far, all they will
end up doing is surrendering margins and
chasing bad money for little return. This has
been proven in the UK where the heavy
promotional activity last month in the high
street failed to arrest the decline in retail sales.
According to the BRC-KPMG Retail Sales
Monitor, the UK’s December trade was the
worst in the history of the survey. The first
half of the month was extremely difficult for
most retailers: Christmas buying came later
than usual, with consumers waiting for
discounts and early clearance sales.
Have we seen the end of the retail
discount insanity? The experts fear not.
Helen Dickinson, head of Retail at KPMG
stated in a press release recently that:
“December’s performance has historically set
the scene for the year ahead, so the outlook is Richard Duncan
indeed bleak.” The Partnership
Judging by the January sales we are Sydney, Australia
witnessing across the globe, it’s clear that only 61-411-549-791
the strong will survive.  richardd@thepartnership.com.au
4-5 March 2009
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Luxury marketing
Capturing a larger share of the
big spender’s wallet
On 12 and 13 November 2008, Marketing Mix held the first ever SA Luxury Marketing Summit
“W
hat one person looks for in a
luxury brand, another often
doesn’t see. This means it is
subjective, which means that understanding
your target market is crucial,” says Gaby de
Abreu, creative director, The Switch Group.
The difficulty in defining this market, says
Rudo Maponga, black diamond manager, TNS
Research Surveys, is the fact that it is notorious
for refusing to disclose income data.
Greg Furman, chairman, Luxury Marketing
Council USA, defines the luxury consumer as
an individual with a liquid portfolio of financial
or other assets worth US$1 million or more.
Some models will differentiate between the
actually rich and the big earners who have a
large credit spend.
18 BrandEQ’s founder, Kim Aardweg, segments
the market into one of five categories:
 X Fluents: extremely affluent.
 Butterflies: looking for new experiences
rather than material things.
 Luxury Cocooners: spend their riches on
health and home.
 Aspirers: they haven’t achieved the level of
luxury to which they aspire. Believe luxury
is expressed by what they own.
 Temperate Pragmatist: newly emerged luxury
consumers, not that involved in luxury
spending; in fact, they are careful spenders.
How big is the luxury market and how
much is it worth?
Maponga believes that globally, there are
between 75 and 100 million people that fall
into the super-rich category. Despite the
economic downturn this segment is still
growing. “In 2005, we found that there were
only 41 000 super-wealthy consumers and in
2008 there were 104 000,” she says.
Locally, she says, we can expect that figure
to be around the half million mark. This may
not sound substantial, but as Anina Malherbe,
founder, Vivid Luxury Marketing says, the
Retail Marketing Mix
www.marketingmix.co.za
marketingmix.co.za / vol 27 / issue 1/2 / 2009
market is definitely big enough. “It’s not only
about the numbers and volumes. It’s about
the handful of customers who spend a lot
regularly,” she says.
According to Millward Brown marketing
science director, Hendrik van Vuuren, the
global luxury market is worth around
US$400 billion, but is growing at a rate of
approximately 24 per cent; it’s estimated that
the value of the market will reach around
US$2 trillion by 2010.
The emerging countries are driving growth of
the luxury market, and so is the new middle class.
What do they want and how should
brands speak to them?
Malherbe says that it is paramount for these
brands to have a very strong, global strategy
in place to guide every activity. When launching
in a new country or market, local partners
advise them of any cultural differences which
might have an impact. Clever PR, marketing
and advertising ensures that their brand is top
of mind. “Your brand must be a necessity and
part of their lifestyle, not just a luxury buy,”
says Malherbe. “Smaller boutique or niche
agencies are often more suited to the job.
Find someone who relates personally to your
brand or who is the customer,” she says.
Furman suggests that brands observe the
trends towards concierge and in-home services,
which bring the store or the goods to the
home of the elite shopper. Also, there is a
trend toward brand partnerships: two luxury
brands with similar customer profiles will
share their best customer databases and partner
to create unique events to get the customer
talking and expose them to the brands.
Highly sophisticated loyalty programmes are
also evolving, with rewards described as ‘once
in a lifetime experiences’.
Mark Angus, CEO, Innoviate, illustrated
the power of one to-one marketing, which
allows for multiple touchpoints to be created
across media platforms to really add value.
Personalised magazines, e-mails and even
websites can be created with this new,
personalising technology; these reduce print
costs and make communications more targeted.
A Web-to-print interface allows the customer
to choose which marketing collateral they
wish to receive, and in what format (which
also means that marketers learn the preferences
of each customer). Look out for personalised
video, says Angus.
General marketing tips
 Outstanding service and customer loyalty
are greater than brand awareness.
 Offer membership of a very select group to
create exclusivity and status.
 High personalisation and individualisation;
bespoke customisation is a great tool.
 Emotional triggers are key.
 They like to have stories to tell and they
like to be the first in their group of peers to
tell them.
 Educate them about the brand (and about
luxury) so they can make their own decisions.
 They are highly networked – use this to
leverage word-of-mouth marketing and
brand advocacy.
 Give something back, for nothing (a gift or
a handwritten note).
 Time and wellness are luxuries. Help them
to get more of either (or both).
 Beware of your pricing: they shop around
the world and are aware of the pricing and
value of each item.
 Quality is crucial – it’s what they pay for.
 Mass media creates awareness, but niche
publications really have an impact. Go
for niche markets too (such asthe gay
market). 
Visit www.marketingmix.co.za/pebble.asp?relid=4387
for an exclusive interview with Greg Furman.
18-19 March 2009

The one to one myth
I
have the rare privilege of working at
Woolworths for the next seven months.
My role encompasses anything that
touches the customer – insights, data,
research, rewards, loyalty, financial services
etc. It is early days but I can see how the
information at hand is used to improve the
offering to the customer, new and existing,
and I am seriously impressed with how the
business treats what our department does on a
daily basis.
My message right now
to the marketers facing
serious budget cuts
and financially
strapped consumers:
The one-to-one myth is
not a myth – it’s the
most powerful tool in
your quiver of arrows.
This got me thinking about the reality of
business in the customer relationship
management space. What is possible, what is
hygiene and what is blue-skies thinking?
Hygiene factors are the bare essential
offering. Service, great service, cleanliness,
product availability and acknowledgement –
these are essential to the basis of any relation-
ship (think of Maslow’s Hierarchy of Needs).
Possibilities through great technology deployment
and employment of smart strategic thinkers
are then endless. Creating new product lines;
cross selling and up selling then become
nursery school work – very easy.
If it were possible and if blue skies could be
nudged a little, every customer in SA would
have a store designed just for them. I want my
food displayed in a certain way, I want certain
grocery products always available, I want to
Expert opinion
buy boutique merchandise and I want
Guerlain cosmetics to be available. Oh yes,
and can you sell me a toy boy while you’re at
it? The reality is, no one can customise to the
extent that we as individuals would like, so
organisations adopt a one to few or more
likely a one to some and most likely a one
to many approach in store. We can, however,
get closer to one to one through our
communications especially as we get more
digitally in tune we can be very conditional
and very clever.
But while we are doing this segmentation
and honing our messages to give the customer
exactly what they want, we face the reality
that we could send them 15 marketing
messages a day – come in and buy your baked
beans on special (they buy this product
weekly), we’ve just launched a new fragrance
range, come in for your sample, back to
school, back to work, Easter, Valentine’s Day,
the list is endless. Marketers need to step up
to the plate and be realistic; what message is
going to drive the customer into the store to
19
purchase and deliver a profit to the business?
It’s not the information in hand that is
questionable but the insights we apply to
this information.
While marketers need to be revenue and
profit minded I believe the customer (all over
the world) also needs to be realistic. For a
brand experience to be sustainable, a relationship
needs to be established – both parties have to
give and take. More and more I find cus-
tomers unreasonably demanding of a brand,
and fickle to the extent that marketers are
also unable to perform in their
communication tasks. If I want to be treated
as a high-volume, most-valuable customer,
I need to behave consistently with the brand.
I should update my data (oops guilty, I have
yet to change my e-mail address with any brands
I engage with); I should provide information
and I should guide the brand. And in tough
times, as a customer I should display loyalty.
My message right now to the marketers
facing serious budget cuts and financially
strapped consumers: The one-to-one myth is
not a myth – it’s the most powerful tool in
your quiver of arrows. Pour your efforts and
resources into building your digital base –
quickly and robustly – and then use this data
effectively. Innovatively and uniquely
communicate with customers, prospect and
existing; engage them, create a relationship Nici Stathacopoulos
with them, and work towards a strong loyalty The Tipping Point
coefficient. In return they will reward you with nici@thetippingpoint.co.za
less fickle, more sustainable behaviour. 
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 7 Day [B]itch
Olivia Leitch
executive producer
5/01/2009
T
he first day of the week is always
about planning for the week ahead.
We plan everything during the day in a
series of meetings. Seems to be the longest day
of the week. After that we are A-for-away. (I
interviewed someone today – so hold thumbs
for her.) I have a team building constructive
feedback session with one account team to try
and help it to achieve what it needs to with
the least amount of hassle. To end off my day
I go with a colleague (who I admire greatly)
to debrief a digital company that I admire on
our website. It’s going to be awesome that
everyone will be using it – everyday! Here’s to
creativity – and to my best TV night ever. Two
And A Half Men, followed by Will and Grace,
ending with CSI Las Vegas. (My client, SABC
3, has great Monday nights).
6/01/2009
20 I start my day beautifully with a Vida coffee
to go. Yum. Have a day full of internal meetings,
to get the best creative out for our clients. I
love working with creative minds. We get to
develop breakthrough work for a lot of our
clients (challenging brands within their
respective categories), which is very rewarding.
Also interviewed another two people – so hold
thumbs again. (Yesterday’s chick has been
accepted). My day ends with dinner at the
Codfather with two of my close friends.
07/01/2009
Woke up to beautiful weather that has now
turned quite sh#@&y. Today I hope to sell a
really innovative idea to one of our clients;
something that is not traditional above the
line. We are always trying new ways (they
don’t always need to be ads) to connect with
our consumers. We meet to discuss our
potential new client. Lots to do – will keep
me busy and challenged. It’s very motivating
to discover what it is that new industries do
and how they do it – good marketing lessons.
I’m off to a friend’s house-warming tonight…
love to see new spaces and the positive energy
they create.
08/01/2009
I wake up tired, as I realise that I am feeling
that ‘one too many’ glasses of vino at the
house-warming… For a moment, I contemplate
a quick trot round the block to clear my
head… think better of it. Up, put the kettle
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Ola Films
on, quickly put the hand sprinkler on as the
irrigation timer is still not fixed (oh, when is
it going to rain!) Oh no… today is Trash
Day. Drag the bins outside, looking frightfully
attractive to the neighbours, in my holey
nightie! Shower, and oh no – no more cat
food! Oh well, cat biscuits and the rapidly
multiplying moths will have to suffice till
I can hit the Spar. Check in with my
partner, (director) Amy. She is stealing a
quiet moment to go to the dermatologist.
Thursday is not looking up. Ok, what have
we got: Preprod at 1pm, casting cut down
done? Shotlist? Storyboard? Props boards
ready? Quick, grab porti bag, and run!
They are across town… please, oh please, let
there not be any roadworks or lights out.
Amy and I pile into the car (have a quick
moan at her that I always have to drive,
when we both need to put on make-up).
Amy puts her director’s cap on, wows them
with her colourful treatment and great visuals. All good, back to
Exhale – they are comfortable and confident
about us. All good, back to office… confirm office… confirm cast,
cast, wardrobe fitting… sign off on art
department budget… and think about the
next pitch.
wardrobe fitting… sign
09/01/2009 off on art department
Friday is possibly the best day of the week.
You know it’s almost the weekend… Perhaps budget… and think
it’s because you feel that it will be a slightly
more chilled day when compared to the mayhem
of the past four. As is the Friday routine, I
about the next pitch.
begin with a client breakfast at 7.30am. I have
to ‘bribe’ my team members to attend as
7.30am is a tad early for my crew. My day is
slightly uneventful which means that all
should be happy. Tonight I am off to watch
the Lions play the Waratahs at Ellis Park –
good South African fun!
10/01/2009
Ahhhhhh, Saturdays are generally spent
shopping; personal grooming; shopping;
chores; more shopping; and seeing my fabulous
friends. Today is no different – hairdresser;
shopping; getting quotes to do maintenance
on my deck at home and lunch at Bellini’s
with my mates. It’s an absolutely stunning
day, ending with a friend’s birthday party.
11/01/2009
Sundays are family days; special, soulful,
rejuvenating days. Love them stacks. 

The global loyalty infusion
W
e’ve seen a burgeoning trend in
which marketers have outsourced
loyalty value proposition design to
their customers. In 2006, Turkey’s Garanti
Bank launched the Flexi credit card, which
allowed card applicants to craft a custom-made
reward card by choosing from a menu of
rewards, repayment schemes and interest rate
options, and even designing the look of their
card. By bringing customers in on the value
proposition design, these card issuers are
front-loading their rewards programmes
with personalised and relevant offers that
differentiate them in a crowded market.
Open-source marketing also extends to
reward redemption. In the United Arab
Emirates, Ehitad Airways’ Etihad Guest
programme features a website slider that
allows members to create personalised
cash-plus-miles awards. The cost of entry?
Just a single mile.
Partnership marketing
Coalition loyalty programmes, in which a
group of sponsor companies works with a
third-party operator to issue a common loyalty
currency to members, thrive around the
globe. Programmes like Canada’s AIR MILES
Reward Programme, The UK’s Nectar and
Brazil’s Dotz have all enjoyed sustained success.
In the US, a national coalition programme
has yet to launch, but partnership marketing
is taking root. Citi’s ThankYou Network
recently partnered with Expedia to create a
new layer of travel earning and reward options
for ThankYou members. Such loyalty
partnerships will help more companies to
achieve critical mass and create additional
value for members, partners and stakeholders.
The colour green
In Europe and North America, green marketing
is red-hot. Since April 2007, when Wells Fargo
made renewable energy certificates available
for redemption in its Enhanced Rewards
programme, green rewards options have
proliferated. No fewer than 20 loyalty
programmes added environmental rewards
and benefits to their mix in 2007.
Other forms of altruism, such as the college-
savings themed coalition programme Upromise
in the US, paved the way for new-generation
programme offers. Taking altruism a step
farther, the uTango coalition in the US allows
young married couples to apply a percentage of
their purchases to a savings fund that promises
a payout of up to US$1 million – if the couple
can stay married for 30 years.
Expert opinion
While altruistic and community-minded
benefits certainly carry consumer appeal, the
broader trend is the use of database segmentation
to target green and altruistic rewards to those
customers most likely to respond.
The data difference
In the retail sector, UK companies such as
Tesco and Boots lead the effort to analyse and
segment the purchase patterns of loyalty
programme members and to deliver relevant
offers. North American companies, mean-
while, are also entering the data game more
aggressively. The US grocer Kroger Co. and
health-and-beauty retailer CVS/pharmacy are
attempting to replicate Tesco’s success across
the Atlantic. In Canada, two AIR MILES
Reward Programme sponsors, health-and-
beauty retailer Rexall/Pharma Plus and DIY
retailer RONA, are mining collector data
across multiple dimensions to predict and
respond to attrition, proactively influence
segment migration and create relevant offers.
Relationship banking 21
In 2003, Puerto Rico-based financial services
company Banco Popular pioneered the concept
recognising and rewarding its customers
across their entire relationship with the retail
bank. Designed to build loyalty to the brand,
its Premia programme has allowed the bank Bryan Pearson
to gather actionable customer data that president, LoyaltyOne
delivers bottom-line benefit. contributing editor, COLLOQUY
This concept was replicated in the US with www.bpearson@loyalty.com
such launches as Citi’s ThankYou Network
and National City’s Points programme. In
Canada, Bank of Montreal likewise rewards more than half a million people use their
AIR MILES across banking lines. The future cellphones to conduct their banking
of financial services loyalty lies in the entire transactions. This new generation of tools will
banking relationship as customers look for require marketers to create value propositions
financial partners rather than mere credit rich enough to create a desire to opt in –
providers. because without explicit customer opt in,
you’re only creating more spam.
Moving beyond plastic Of course, loyalty marketers can ill-afford
The days of having customers carry a plastic to throw these ingredients together at random.
slice of your brand in their wallets may be The culinary term for such ill-considered
numbered. Contactless payment systems such conglomeration is confusion cuisine. By
as MasterCard’s Paypass, Visa’s Wave and paying attention to global practitioners
ExxonMobil’s Speedpass continue to honing the art and science of loyalty and
proliferate – and you don’t necessarily need relationship marketing, you can help move
a plastic card to use these systems. loyalty marketing forward. Listen to your
But the true card-killer might be mobile customers, analyse their behaviour through
payment systems that turn cellphones into effective segmentation, choose strategically
credit or debit payment systems through aligned partners and leverage the latest in
RFID or SMS. Garanti Bank has already payment and communications technology –
implemented this technology. Such systems but do these things strategically, with your
are entrenched in Japan, and will soon business objectives and brand strategy guiding
proliferate in other emerging markets – in SA, your choices. 
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Brand anatomy
Pick n Pay gets fresh
22
Who is the Pick
n Pay target
shopper?
The Pick n Pay target market
is mainly women in LSM 5 –
10, aged 30 -55 years; living
nationally, in urban or
suburban environments.
marketingmix.co.za / vol 27 /
P
roudly South African retailer Pick
n Pay launched Fresh Living
magazine in November 2007 to
complement its offering to customers.
According to the magazine’s account
director, Lisa Visser, “Fresh Living is the
result of extensive and ongoing customer
research, where shoppers identified the
need for their own magazine. Given the
international trend towards custom
magazines and the size of the Pick n Pay
retail chain, Fresh Living was a natural
progression.” Through the magazine, the
chain hopes to grow brand equity, entrench
customer loyalty and increase size of basket,
while also creating a platform from which to
communicate with the customer in an
ongoing dialogue. “Its core function is to
promote the brand and highlight the diverse
product offerings available at Pick n Pay,”
says Visser.
The magazine complements the brand’s media
mix. Pick n Pay Media Services recognises that 67
per cent of purchase decisions are made at retail,
and thus has a bouquet of in-store media
channels to augment any through-the-line
campaign, and provide statistical evidence of
basket penetration and the success of in-store
campaigns, says Visser.
Custom title
There has been a growing trend towards custom
publications the world over. “Custom publications
are exploding in SA, and previous resistance to
these magazines has disappeared and is being
replaced by a belief that they deliver to their intended
audience,” says Visser. However, magazines like
Fresh Living will increasingly need to promote price
promotions in the current economic climate. “Some
sold custom magazines will be tempted, along with
consumer magazines, to reduce their cover price in
order not to lose market share,” says Visser.
issue 1/2 / 2009
Fresh Living creates a dialogue with the chain’s shoppers, and
immerses them in its branding. The magazine is food and lifestyle
focused, and so covers mealtime solutions and recipes, travel,
decor, entertainment and celebrity profiles as well as commentary
on environmental and financial concerns. Feedback on the
magazine is that the recipes are the biggest driver and the most
popular content within the magazine – educating consumers about
food choices and providing them with inexpensive and accessible
mealtime solutions is the perfect stimulus for product sales, says
Visser. “From the magazine, consumers can generate a menu and
shopping list, all of which directs them to Pick n Pay’s stores and
products.” Other sections of the magazine that are proving
popular include the My Favourite and Slice of Life sections.
Target
Women constitute the majority of the magazine’s readers,
although the magazine does not specifically target them. Instead,
the content reflects the interests of both men and women. “The
content is based on a formula that ensures that there are food
solutions for all occasions and needs,” says Visser. In fact, the
magazine is intentionally positioned to appeal across the board.
“Pick n Pay customers range from emerging market to high
LSMs, depending on where the stores are located. Likewise, Fresh
Living’s editorial is not intimidating; it’s inspirational and relevant
to all age groups and both genders,” says Visser.
Advertising
The bulk of advertising revenue comes from the food sector
followed by the health and beauty sector. The fact that the
magazine is also a lifestyle read means lifestyle brands (cars,
finance and telecommunications) also have a place in the title.
“Fresh Living is a conscious purchase made by consumers and
this ensures that our readers are receptive to and engaged with
content,” says Visser.
This is in contrast to the unsolicited product advertising seen on
TV, for example, which Visser insists does not drive brand loyalty.
Advertising revenues have increased with each issue published and,
according to Visser, the magazine’s first ABC figures placed its
circulation at 48 012 (Jul-Sept 2008). “With our current position as
SA’s top selling monthly food magazine, we anticipate even higher
revenues and support from suppliers as well as lifestyle brands
wanting to participate with the magazine,” she says.
 Brand anatomy

Pick n Pay: the milestones

1967 – Raymond Ackerman returns to Cape Town after losing his job at Checkers in Johannesburg. He starts negotiations
to buy four small stores in Cape Town, called Pick n Pay.
1969 – Pick n Pay is listed as one of the Sunday Times Top 100’ companies.
1975 – The first Pick n Pay Hypermarket is opened in Boksburg.
1983 – Turnover exceeds R1 billion for the first time.
1985 – Pick n Pay acquires a 50 per cent interest in Boardmans, a home décor store chain.
1986 – Turnover exceeds the R2 billion mark.
1988 – Pick n Pay celebrates its 21st anniversary and the launch of the ‘Part of Your Life’ campaign.
1996 – Pick n Pay management board splits into two separate divisions. Vuselela (Nguni word, for rebirth or renewal)
programme is launched, with a commitment to staff satisfaction and service excellence.
2001 – Pick n Pay Home Shopping is launched.
2007 – Pick n Pay is rebranded, with the new ‘Inspired by you’ campaign launched. Fresh Living is launched.

The involvement of brands via editorial endorsement is signifi-

cant: whereas the traditional ATL format advertising is seen as a hard
sell, editorial endorsement is seen as more valuable. “Fresh Living
does not push Pick n Pay and its products at every corner, but
rather nurtures the love of food and lifestyle solutions. In so doing,
opportunities are, of course, available for products to be promoted,”
adds Visser.

Affordability and value 23

Discount vouchers (which give readers R100 worth of discounts in
each issue) distributed in the magazine have made it more appealing
to customers, especially in the current economic climate. “The
Coupons Clearing Bureau administers the tracking of these vouchers,
and both anecdotal references and focus group research support our
contention that having a return on a reader’s investment of 10 times
the cover price is a significant contributory factor to making the entire
Fresh Living offering a more compelling proposition,” says Visser.
The affordability of the magazine – with its R9.95 cover price – has
certainly helped to drive its adoption by the target market. This has
placed the title well within the reach of the mass markets, so Visser is
positive that while other magazine sectors will feel the impact of
decreased luxury spending, Fresh Living will remain relatively
unaffected. “We are, however, still actively investing in advertising the
magazine to the media industry and to consumers through ATL
advertising and in-store promotional tools. We will also continue to
offer vouchers in each issue, which ensures that consumers get more
than their money back by purchasing the magazine,” says Visser.

Getting a healthy dose

Pick n Pay is actively involved in promoting healthy eating, from its
5-a-Day programme to the increasing range of organic products
available in store, says Visser. The magazine, meanwhile, deals with
such issues as sustainable fishing and the world food crisis. “We
have a regular health column written in conjunction with Pick n
Pay’s resident dietician, which looks at issues such as the red meat
debate. medicinal food products and how to keep your body in shape
during winter,” she says. The energy, protein, fat and carbohydrate
content of each recipe is also indicated, to give readers greater
control. A joint venture with Discovery Healthcare offers the
medical aid group’s customers discounted prices on healthy foods
at Pick n Pay stores, which further demonstrates the chain’s
commitment to wellness and affordable shopping. 

vol 27 / issue 1/2 / 2009 marketingmix.co.za

 Soccer marketing guide

The local soccer fan:

a desirable market
T
aking a closer look at the soccer media’s consumer, it
becomes clear that the South African soccer fan is a
middle-class man in his 20s 0r 30s (ie, a large percentage of
our population). Fahmeeda Cassim-Surtee, general manager of
SuperSport at Oracle Airtime Sales, points out that 80 per cent of
SA’s population is made up of black Africans, with 43 per cent in
the LSM 5-7 category and 6.6 per cent in the LSM 8-10. “The core
population in SA is soccer mad. Any brand can benefit from the
adoration and emotion of this fan,” says Grant Hillary, managing
director, ThirtyFour Sport.
The team at Soccer-Laduma (which has 2.5 million readers,
according to AMPS 2008) has found that compared with the
general SA population, the newspaper’s readers are greater
consumers of a wide range of products and are into technology in

Courtesy: Soccer-Laduma
a big way.
“For example, AMPS tells us that there has been an increase in
ownership of digital cameras of nearly 300 per cent since 2006,
compared with an increase in the general population of 93 per
cent,” says Soccer-Laduma founder and editor, Peter du Toit. He
24 goes on to say that 18 per cent of readers – almost half a million
people – have a household income of over R10 000. This is a very desir-
able group, he says, as it is aspiring to move up into higher lifestyle lev-
els and is also likely to be there in the next two years.
“South African marketers should not confuse a predominantly black
local soccer market with a downmarket, ‘hooligan’ and unemployed
demographic/psychographic. The local soccer fan has a lot to offer brands
that want to reach an economically active, aspirant and brand-conscious
market en masse,” says Shaun Smith, marketing manager, SoccerLife.
And this fan has evolved. Du Toit, finds that his readers’ psychographics
have changed. “When DStv got the rights to the PSL, many more
readers got DStv and were subsequently more exposed to European
football, and to more sophisticated coverage and production values than
the SABC had provided, so our readers’ expectations of quality all
round were raised. Our writers have become more skilled and, in
response to the greater sophistication of readers, they are providing
many more layers of enjoyment,” he says.
Courtesy: Soccer-Laduma

The good news for brands is that, according to the experts, the fan is
in a positive, engaged state of mind when interacting with soccer or
soccer media. “This upbeat positivity will rub off on the brands
advertised in the soccer media,” says Clint Roper, deputy editor,
Soccer-Laduma. However, there remains a lack of knowledge about and
understanding of the local soccer fan, particularly among
media planners and advertisers.
“Media agencies are not often exposed to the culture
of the South African soccer fan – whether it be how he SA: 2010 ready?
lives, the products he consumes or his passionate According to market researchers, African Response, 63 per cent of South Africans
following of the game,” says Smith. Roper, however, believe that the global economic crisis may lead to fewer visitors to SA. The good news
believes that white people in general don’t understand is that a growing percentage of South Africans believe we will be ready to take on the
the nature of the passion South African soccer lovers
2010 FIFA World Cup. According to the African Response 2010 Barometer 2008, in
have for the game. Soccer is the best way to reach every
December 76 per cent of South Africans believed we will be ready for 2010. This figure
level of black society, he says. “If business is not sure
is up from March 2008, when only 67 per cent of South Africans believed as much.
about the value of investing in soccer, is it because it
doesn’t understand the game, or because it doesn’t

marketingmix.co.za / vol 27 / issue 1/2 / 2009

 Soccer marketing guide
Media selection
A
n obvious factor to consider when selecting media is
access; the lower LSM market has less access to the
Internet, while print publications and radio are
easily accessible.
TV remains an expensive investment. Fahmeeda Cassim-Surtee,
general manager of SuperSport at Oracle Airtime Sales, anticipates
that the majority of ad bookings ahead of and during the 2010
FIFA World Cup will come from the partners and sponsors. “We
price events based on audience delivery; demand, timing, team pop-
ularity and exclusivity. From previous experience of world cups, the
most viewed matches are toward the end of the tournament, there-
fore these would be more expensive. Also, there are certain teams
that have bigger fan bases, hence viewership will be higher, thus we
would price accordingly,” she says. Pricing will be available from
mid-February 2009.
FIFA has set restrictions controlling who can buy airtime during
the match broadcasts. “We have to first approach sponsors/partners
of the event to take up airtime before going out to the rest of the
market. Brands that are in direct conflict to sponsors/partners of
the event cannot buy airtime within the event,” says Cassim-Surtee.
There are, however, opportunities for clients to buy into the build up,
highlights, player profiles and other world cup programming. The
SuperSport website also offers clients new media options.
According to Daniel Munslow, executive strategist, Newsclip Media
26 Monitoring, print media appears to be the preferred medium when
communicating sports news and results. He agrees that accessibility and
availability of media impacts on consumption trends, but that there are
also disparities between the number of mentions that different teams or
leagues receive. According to Munslow, Bafana Bafana received 64 per
cent of its exposure in print media and only 12 per cent from online
media, compared to the PSL as a whole, which received 49 per cent of
its exposure in print media and 42 per cent online. SuperSoccer
(SuperSport’s soccer website) was the only obvious commonality
between the two topics in the online category. The balance of media
mentions were from broadcast media, with a bias towards radio content.
“This is congruent with the accessibility and availability of media
across the different LSM groups; where even in broadcast, radio is more
accessible than television. In principle, there should not be such
disparities in the media that cover the PSL versus Bafana Bafana’s
coverage. It suggests a trend that sees the blurring of the lines between
digital, broadcast and traditional media,” says Munslow.
And while, generally speaking, it’s the upper LSMs that have greater
access to online media, it cannot be assumed that the lower LSMs are
not using online media; after all, he says, 42 per cent of the PSL’s media
exposure was online. Plus, the number of publications – including those
aimed at the lower LSMs – that are adding digital publishing to their
offering speaks for itself.
Diogo Peral, soccerladuma.com webmaster, finds that apart from an
LSM skew relative to website usage, there is little difference between the
users of Soccer-Laduma’s three platforms (the newspaper, website and
mobisite). “What is different is the time at which they access them. The
website gets the majority of traffic during business hours, which would
lend it to certain categories of ads perhaps. After 5pm, the mobisite
takes over,” he says. The mobisite is proving a valuable tool through
which fans can access match logs and schedules as well as additional
information (snippets from player interviews, for example). In fact, says
Peral, mobile Internet is the real treasure for marketers and media.
“Almost every South African has a cellphone. Soon all these cellphones
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Sponsorship: Top tips
Neil Jankelowitz, MD, MSC Sports, says that a sponsor must have a specific
set of objectives prior to the sponsorship investment, and should seek out
an agency with experience in that territory. “The recourse or the agency
would then identify the relevant rights to achieve the objectives, and then
secure these rights and implement strategically in order to gain maximum
exposure from the investment. We have found that leverage spend,
particularly in this area, is of utmost importance,” he says.
Grant Hillary, ThirtyFour Sport, believes that sponsors should not have
more than two objectives that the sponsorship should be linked to, and
that these should be measurable. For example, if the objective is to drive
sales, then the sponsorship must be activated in the relevant manner,
and sales figures must be tracked (before, during and after the sponsorship
activation).
will have WAP technology. We just need to get it across to our readers
that all this is available on their phones,” says Peral.
Challenges include the diversity of cellphone models on the market
and consumer literacy; Soccer-Laduma has overcome these by offering an
SMS service with step-by-step instructions for the downloading and setting
up of the mobisite. Readers pay R2 for the download and installation.
Shaun Smith, marketing manager, SoccerLife, says that soccer-
dedicated print titles are an obvious choice for planners wanting a
print/electronic synergy. “Soccercheck Research conducted by Research
Surveys shows the local soccer fan looks to TV and print for their
soccer news,” he says.
Meanwhile, SuperSport segments viewers into four groups: Experts,
Enthusiasts, Fans and Selective Viewers. “It is our Enthusiasts and
Experts that are always seeking more information; it is these segments
that would be more involved viewers, hence consuming other media
types to learn more,” says Cassim-Surtee.
Peral urges advertisers to incorporate digital into any campaign from
the beginning, so that the digital tools amplify the message more
effectively. “The strength of each medium should be exploited: print’s
strength is its longevity and physical presence; the Web’s is its interactive
facility, and mobi is both interactive and has terrific reach in the
emerging market,” he says.
According to Cassim-Surtee, viewership of soccer varies depending
on the event being broadcast as well as the teams playing. Current
sample sizes on SuperSport 3 and SuperSport 4 are too small on the
AMPS Peoplemeter panel for robust viewership data to be collated, but
she is optimistic that with the launch of the DStv-i panel (the return
path measurement system, which will measure a panel of around 4 000
households in SA), the lack of reliable data will be addressed.
“According to AMPS 2007, there were 932 000 viewers who watched
SuperSport 3 in the past seven days. Viewership has increased by 29 per
cent – driven by the increased soccer content and the growth of
compact subscribers,” says Cassim-Surtee.
While it is the white, coloured, Indian (WCI) market that is the
predominant audience for European soccer, SuperSport finds that
viewership of European league soccer among black fans is growing. “Last
season, UEFA Champions League viewership increased by 22 per cent,
largely driven by the increase in black viewers,” says Cassim-Surtee. 
 Soccer marketing guide

Clever ideas and opportunities:

F
or local marketers and brands, finding a suitable opportunity to
leverage the 2010 FIFA World Cup is key. “Creation, creation,
creation, is the name of the game in this regard,” says Neil
Jankelowitz, MD, MSC Sport. He believes that there is a lot that a
brand can achieve in spite of FIFA’s tight controls. “Due to the fact that “The rest of the world is spending
the exposure and values are so high very few of our local brands see it
fit to participate at this level,” he says. “Hospitality is the area where 70 per cent of its marketing budget
most local corporates are positioning themselves, and with over US$60
million worth of hospitality already sold we can see that this is where below the line, while in SA it seems
corporate SA will participate,” says Jankelowitz.
Outside of this, the opportunities for brands to make the most of
soccer fever are ripe. Those companies that have given up on the world
that 70 per cent of the marketing
cup as having no marketing leverage opportunity, have given up the
ghost too early, says Grant Hillary, managing director, ThirtyFour Sport. budget is still being spent above
There are interesting possibilities, such as a branded township tour.
“You could brand the bus or the destination in the township where you the line.”
could watch the game. It wouldn’t use any of the official logos, but
would be associated with the World Cup and would have an African
experience attached to it,” suggests Peter Du Toit, founder and editor,
Soccer-Laduma.
The official fan park concept is another possibility; however, brands
need to keep in mind that the world cup will be taking place in winter. cluttered with all things soccer, so for brands to stand out they need to
Plus, says Hillary, South African soccer lovers are primarily based in the do something unusual. “The rest of the world is spending
townships and rural regions of the country, where there is no 70 per cent of its marketing budget below the line, while in SA it seems
transportation system for them to get to and from the stadiums. that 70 per cent of the marketing budget is still being spent above the 27
Shebeens and township taverns will become the fan parks. line. Brands need to adopt a 360-degree approach and should be moving
Making life easier for the soccer fan is a potentially fruitful line of their spend to BTL,” says Hillary.
thinking. According to Du Toit, local soccer fans (and particularly those Look out for greater use of mobile channels to spread soccer fever.
living in the townships) have no transport networks that would allow They could be used to drive sales, as long as there is no infringement
them to get to and from matches easily; ticket prices are also an issue. on the rights of MTN (which is an official World Cup sponsor). 
Brands could get involved in a positive way by sponsoring taxis or buses
that would serve in an organised network, making the stadiums more
accessible to these fans. “The more ardent a soccer fan is the more
they will want to associate with brands that support soccer. But you
have to be in it for the long run if you want to capture that passion,”
Soccer mentions
says Clint Roper, deputy editor, Soccer Laduma.
According to Daniel Munslow, executive strategist, Newsclip
For a brand to jump in without breaking the rules it simply needs to
Media Monitoring, soccer (and Bafana Bafana) was the most
consider the changes in social behaviours around the event, says Hillary;
it doesn’t need to become a sponsor to achieve the similar successes. He mentioned sport over 2008. Almost 16 000 print articles,
refers to beer brand, Castle Lager, which cleverly leveraged the 6 000 broadcast inserts and 3 000 online articles men-
excitement around the 2007 Rugby World Cup, by speaking about tioned the beautiful game to an advertising value equivalent
specific games and players in its advertising, thereby tapping into the (AVE) of R547 million. “There is no doubt that media men-
fan’s braai-side conversations. He also points to retailers who will tions of soccer are on the rise. Interestingly, we find that
promote special braai packs (buy the beer, the boerie, the chips and get news items about soccer, such as infrastructural develop-
a free vuvuzela, for example). ments ahead of these two major events, are also driving
Yet Hillary believes that brands are not doing enough to find the little more interest in the sport,” says Munslow. Mentions of
marketing gems that would set them apart during the world cup. “For
Bafana Bafana topped the scale at 24 500 media clips
example, if I was an electronic goods supplier, knowing that an opposition
(excluding matches), to a value of R547-million.
brand was a FIFA partner, I would have spent the last six months
Measuring online mentions is somewhat of a challenge: “The
getting people ready to watch the soccer on my screens.” On-pack
communications need to be used more cleverly – consider Coca-Cola’s first step is to establish the average advertising rate on a site
use of its own packaging as a canvas for soccer messaging. and then work out the amount of space that is occupied by
Hillary believes that the 2010 FIFA World Cup is not only about the the average ad. We then calculate the number of words that
thousands of visitors that will flock to SA; instead, he says, marketing would fit into that space and, coupled with the number of
managers should be looking at the 48 million local supporters, and page impressions and weighting of the site, calculate a rand
should aim for sustainable marketing. Retail brands are able to track value for the space,” says Munslow.
their promotions and activities, and so can measure and evaluate their
progress. Of course, we must expect the retail environment to be

vol 27 / issue 1/2 / 2009 marketingmix.co.za

 Soccer marketing guide
The soccer media: who’s who on the pitch
Newspapers:
Soccer-Laduma
The numbers (AMPS 2008A)
Ave HH income: R6 499 Ave age: 32 years RPC: 8.5
AIR Readership: 8 per cent (versus 6.7 per cent, corresponding previous
period)
Circulation (ABC July – Sept 08) 332 987
(corresponding previous period: 355 601)
Soccer-Laduma has seen its circulation grow from an initial 27 000
copies in 1997 to 332 987 (ABC July-Sept 08). “In the early years espe-
cially we paid a lot of attention to distribution, and we mapped routes
into previously inaccessible areas for our distribution partner, Allied,”
says Peter du Toit, founder and editor, Soccer-Laduma.
The newspaper’s readers are technologically empowered, and the news-
paper has responded with the digital tools and platforms that entice this
market. “Soccer-Laduma digital has been around for about six months, at
the time of going to print, and we’ve only done what time has allowed
us,” explains Diogo Peral, webmaster, Soccer-Laduma website
(www.soccerladuma.co.za). Its policy is to push the technology that adds
value and packages for mobile are being developed for specific groups of
readers (for example, Kaizer Chiefs ringtones and downloads for team fans).
“We’re also interested in mobile vouchers, which would allow our readers
to get a free beer, if they had the right bar code or tavern code,” he says.
The number of Soccer-Laduma readers who have a cellphone has
increased by 63 per cent since 2006, compared with the total population
28 increase of 37 per cent. The number of readers with a computer at home
has increased by 86 per cent compared with a 59 per cent increase in the
total population, reports Clint Roper, deputy editor, Soccer-Laduma.
“We’re convinced things will get even better. It will become easier to get
on the Internet. The lines will get faster, cheaper and cyber cafes will
pop up on every street corner in the townships. It’s happening already,”
he adds, reporting that Thunda.com (an online platform which sends
photographers to social venues and special events) is increasingly
getting calls from people in the township cyber cafes, wanting to find
out how to access their photos.
“Soccer-Laduma has a partnership with Thunda.com, whereby people
photographed at soccer matches will be able to find their pictures and
upload them to both the website and our social media site, Ayoba,”
explains Roper.
At the time of going to press, the Soccer-Laduma website had
52 000 unique browsers per month after five months (Nielsen). Peral
reports that Google Analytics is showing that 85 per cent of visitors to
the site return during a given month.
“Soccer-Laduma is at an advantage compared with the general
population in terms of Internet access. Our online members are very
interactive,” he says. And as long as the print product covers the unique
content and information that the website and mobisite don’t carry, readers
will keep paying for their copy of Soccer-Laduma each week. “Our
busiest traffic online is on Wednesdays, when Soccer-Laduma comes
out. Readers buy the paper and then go online to comment, so the two
media work hand in hand. Plus, we drive traffic to the website via polls
and questions in the newspaper,” explains Peral.
The Soccer-Laduma mobisite is Nielsen registered and, at the
time of going to print, after just five months, it had 60 000 unique
visits and 1.3 million page impressions a month. “It is in the
top five mobisites in SA. Mobile is where we will see the biggest
growth. We do not see a difference in profile between print and
mobi users: they are young and technologically adventurous,”
says Peral.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Members use the mobisite to access live scores, for example. And
since 92 per cent of the print readers fall into the 16-49 age bracket, the
mobile offering is well targeted to their needs. “The marketing implica-
tions of this are huge,” adds Peral.
Magazines:
SoccerLife
The numbers (AMPS 2008A)
Ave HH income: R8 589
Ave age: 32 years
AIR Readership: 2 per cent (same as corresponding previous period)
Circulation (ABC Jan- Jun 08): 35 384 (corresponding previous period: 34 847)
Launched in 2002, SoccerLife magazine is described by marketing
manager, Shaun Smith as an upmarket, glossy read for the fan who wants
not only local news, but also international soccer news and opinion, as
well as lifestyle reporting (cars, fashion, gadgets, appliances, health and
so on). “Sixty-eight per cent of the SoccerLife readership falls into the
LSM 7-10 category, known for its savvy, brand conscious and aspirational
consumer character,” explains Smith. He goes on to say that 60 per cent
of the magazine’s sales are made up of loyal subscribers. “Circulation has
stabilised but does experience great peaks around topical editions like
Euro 2008 and December’s Top 100 Players in the World,” he says.
Smith explains that the demographic of the magazine’s readers
mirrors that of the average soccer fan –he is a 36-year-old black male
soccer fan falling into the LSM bracket and moving quickly up the LSM
ladder. “Research has proven that he is engaged when in ‘soccer mode’ –
hence agencies need to understand how portals like SoccerLife provide a
captive and engaged consumer with hard-hitting spending power.” He
adds that as a middle-class South African consumer, this reader is feeling
the pinch of the downturn, but that the magazine is not reporting any
declines in circulation. Supplements, posters and sample products
distributed via the magazine add reader value. “SoccerLife launched a
mobile site in January 2009 that aims to service its audience with a
unique and personalised approach to soccer data. The SoccerLife.mobi
user will interface with news that is tailor-made to his needs and team
preferences, and SoccerLife will ensure that the site is cost-effective and
gives real value add to its user in the form of high-value giveaways and
downloads,” says Smith.
Amakhosi Magazine
The numbers (AMPS 2008A)
Ave HH income: R5 946 Ave age: 31 years RPC: 40.1
AIR Readership: 3.5 per cent (versus 3.6 per cent, corresponding previous
period)
Circulation (ABC Apr- Jun 08): 22 775 (corresponding previous period: 25 590)
TV:
SABC 1
Programmes: Countdown 2010 (a magazine show sponsored by FNB);
Laduma on 1
DStv: SuperSport 3, SuperSport 4;
Programmes: PSL Kings; Engen Premier Soccer; The Football League
Show; Premier League World; PSL TV; Blitz Soccer; Soccer Africa;
SuperDiski; Goalissimo.
Radio
Metro FM: Discovery Sports Centre with Robert Marawa
Radio 2000 (the official 2010 radio station)
SAfm: Gameplan with Kwena Moabelo >p29

>p28
Online
This list is by no means exhaustive; these are just a few soccer-
related websites.
 www.soccerladuma.co.za (the official website of Soccer-Laduma)
 www.psl.co.za (the official website of the Premier Soccer League)
 www.supersport.co.za/football
 www.thesoccerpages.com (a South African online soccer
community; results and news as well as discussions and blogs).
 www.soccerlife.co.za (the official website of SoccerLife magazine)
The business of soccer
The current economic downturn is having an impact on the business of
soccer, globally. “Internationally, the economic impact has been more
significant with concerns of team/jersey sponsorships being cancelled,
as in the example of AIG and Man United. To date, no major local
sponsorship has been terminated,” says Neil Jankelowitz, MD, MSC
Sports. “Locally, we have found the market is exceptionally buoyant and
the impact in this regard has been negligible.” The Confederations Cup
and the 2010 FIFA World Cup are driving the industry forward.
Luyanda Peter, senior marketing manager: SuperSport, says that since
ticket prices for local soccer matches have not increased over the past
three years (R20), consumer spending has not been negatively impacted
by the current economic scenario.
Meanwhile, Peter du Toit, founder and editor, Soccer-Laduma believes
that everyone is feeling the pinch, but finds that his readers are
somewhat more resilient, since they are not servicing debt. “There’s an
argument to be made that in a downturn, the affordable ‘luxuries’
become even more important in people’s lives,” he says, pointing out
that soccer titles are those affordable luxuries.
He is expecting the volume of ad bookings to increase ahead of the
World Cup, but is also concerned that these advertisers will only come
in for five or six weeks. “What I’m hoping may happen is that it will
open the eyes of marketers and media strategists to the nature of South
Africans’ passion for football. They will see how the Brazilian fans
respond, for example,” says Du Toit.
Soccer marketing guide
CSI and soccer development
If today’s soccer stars, with their high prices, are just out of reach,
perhaps tomorrow’s stars are a better investment. Corporate social
investment (CSI) is the most underrated marketing pillar and needs to
be considered as part of the 360 degree marketing mix, says Grant
Hillary, MD, ThirtyFour Sport and will be the next wave of marketing
activity. “It’s really good for consumer branding,” he says. But when it
comes to soccer development, maximising on it now means a brand has
to have started investing in the project a few years back. “For real
impact, it should be linked to retail activity with proceeds going to the
project,” says Hillary. Brands need to remember that a sustainable long-
term approach is about ensuring that the right facilities are in place as
well as the right coaches and mentoring.
The Confederations Cup: a wasted opportunity?
“The Confederations Cup is a test run, and tends to be overshadowed
by the 2010 FIFA World Cup. I’m sure that now that the 2010 FIFA
World Cup Organising Committee South Africa has launched the
marketing and promotional campaign for the Confederations Cup
things will start picking up. The job of media is to talk up the game
and the players so that there are more eyes and ears on the game
and hence more marketing opportunities,” says Peter du Toit, founder
and editor, Soccer-Laduma. ‘I don’t think we realise how big the
Confederations Cup will be,” says Grant Hillary, managing director,
ThirtyFour Sport. “SA got the best possible draw, and yet no brands
are tapping into it yet.”
29
Soccer-Laduma tells us who SA’s biggest soccer teams
and personalities are:
 Kaizer Chiefs (nickname Amakhosi, ‘the kings’)
 Orlando Pirates (nickname the Bucs, from buccaneers)
 Mamelodi Sundowns (nickname the Brazilians because their blue
and gold colours are similar to the national kit and the type of
football they play is said to be similar to Brazil’s)
 Moroka Swallows (the beautiful birds)
 Bloemfontein Celtic (nickname ‘siwelele’)
 Amazulu is potentially a massive force, but the team has been a
bit up and down.
Players:
 Teko Modise – Bucs
 Itumeleng Khune – Chiefs
 Bernard Parker – Thunda Zulu Royals
 Dikgang ‘Terminator’ Mabalane – Bucs
Coaches:
 Muhsin Ertugral – Chiefs
 Ruud Krol – Bucs
 Henri Michel – Sundowns
 Joel Santana – Bafana Bafana
 Gavin Hunt – SuperSport United
 Caesar Leal – Swallows
 Manqoba Mngqithi – Golden Arrows
 Clive Barker – Amazulu
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Soccer marketing guide

FIFA rules and regulations:

F
IFA’s commercial affiliates (sponsors, licensees and official
broadcasters), the host country and the nine host cities, as well
as the Local Organising Committees all make significant
contributions to the 20101 FIFA World Cup, ranging from financial,
value-in-kind and human resource support through to the provision of
infrastructure, transportation and security. In return for this substantial
commitment, they are guaranteed an exclusive marketing association
with the event. Hence, FIFA operates a global rights protection
programme to ensure that these rights are not infringed by free-loades
seeking to claim a commercial association with the event for themselves.
FIFA partners: adidas, Coca-Cola, Emirates, Hyundai, Sony and Visa.
FIFA World Cup sponsors: Anheuser-Busch, Castrol, Continental,
McDonalds, MTN and Satyam.
FIFA national supporters: First National Bank and Telkom South
Africa.
FIFA has prohibitions against unauthorised commercial use and
association. Commercial Association involves the use of official event
marks (which include official emblem, the mascot, the poster, the
fifa.com logo, and also certain terms). Not only are the actual terms in any place other than a private dwelling (ie bars, cinemas, educational
protected, but so are similar variations and modifications. establishments, etc).
A commercial public viewing event is one at which a direct or indirect
admission fee is charged, and/or one at which sponsorships and
commercial rights are exploited relating to the event.
In the case of the latter, only live broadcasts (without repeats, or altered

30
“As a general guideline, promotional broadcast) are permitted. Likewise, the exhibitor shall not create the
impression that he is in any way officially associated with the event. There
material/advertising, company names, are no conditions on the type of food and drinks on sale at any public
viewing event; each vendor is free to offer and sell what he wants.
Conditions only apply to sponsorship and promotions by competitors.
store decorations, websites, domain Similarly, the exhibitor may grant local sponsorship rights of a commercial
public viewing event to local third parties, as long as they are not a
names and merchandise should not bear competitor to any of the competition’s marketing affiliates. (For more details
please see the Public Viewing Guidelines available on www.fifa.com). 
or make use of any of the official marks.”

In a nutshell
As a general guideline, promotional material/advertising, company
names, store decorations, websites, domain names and merchandise
should not bear or make use of any of the official marks (most especially
for commercial purposes, ie to drive sales). Editorial use of the official
marks, and the official match schedules is permitted, but only if this is
done to inform the public. Any ticket promotions or competitions that
make reference to the event are prohibited. More information on that
matters is available in the public information sheet which is published
on the official website www.fifa.com.
According to FIFA, co-promotions with 2010 FIFA World Cup
Sponsors are possible, as long as the third party is not a competitor of
any of the sponsor. However, the third party may not be directly
associated with the Official FIFA Marks.
Product licences (which permit the holder to produce Official
Merchandise) can be acquired from the Global Brands Group.
Commercial public viewing events:
FIFA defines a public viewing event as one at which broadcast coverage
of the event is made available for exhibition, and viewing by, an audience
Sponsorship of
local soccer
Sponsoring local soccer teams or leagues is another option for brands
that wish to get involved with the game; consider Volkswagen’s
sponsorship of team Moroka Swallows, and also their investment in
Premier League club, Bay United (formerly Maritzburg United). “Many
companies think they have to own the property for the sponsorship to
be effective. But in reality, they don’t need to. The other thing is that too
often, the sponsorship is misused. It’s not simply about spending a lot of
money, it’s about doing it right,” says Grant Hillary, managing director,
ThirtyFour Sport.
And the good news, as Neil Jankelowitz, MD, MSC Sports points
out, is that local soccer administration has improved significantly. He
urges sponsors to ensure that their properties and investments have a
track record and a professional management team is in place. Their
financials should be audited and they should have suitable board
representation. “In addition, we advise our clients to ensure there is a
suitable ‘escape clause’ in the relevant agreements should the rights
holder fail to deliver,” says Jankelowitz.

marketingmix.co.za / vol 27 / issue 1/2 / 2009


Time to take a
fresh look...
T
he last time I looked we were just about
to start 2008 and here we are at the
beginning of 2009. Actually, that is a
complete and utter lie because I had to write this
article before the end of 2008 to make sure I met
the publisher’s deadline. Anyway, what really
matters is that you lot, the readers, will all be
sitting on the edge of your 2009 seats as you read
this. So moving on...
The current crisis is
causing many
marketers to re-evaluate
much of what they
have done in the past
and to take a fresh look
at direct, which might
just be an option.
The world is in trouble. The reasons for this
are known to most of us... the backwash from
the sub-prime lending fiasco... the collapse of
international financial institutions... high interest
rates, to name just a few. Many countries,
including SA, are in a state of near, if not actual,
recession. Both consumers and businesses are
cutting back on spending resulting in job losses
in many major business sectors like the motor
car industry.
Expert opinion
Amid all the global doom and gloom this may
be a very good time to re-evaluate how we are
going about marketing. The financial guys may
not be the only ones who have been getting it
wrong. The global spend on advertising last year
was estimated to be around US$471 billion.
That’s US$78 for every individual on the planet
which includes the four billion who are surviving
on less that $2 per day. That’s a lot of noise!
Added to this the consumer is changing. In a
recent survey conducted by the Unilever USA
Consumer and Market Insight Department 86
per cent of people over 50 stated that advertising
is irrelevant to them. Another survey revealed
that 33 per cent of patients in the US go online
before visiting their doctor. If that is not disturbing
enough, even more (44 per cent) go online after
31
they have visited the doctor. The consumer is
showing all the signs of wanting to be in charge.
The consumer is also going digital. By the year
2011, 22 per cent of the world’s population will
have regular access to the Internet. Another
estimate believes that 50 per cent of the world’s
population will have access to a cellphone by the
year 2015. This year the spend on Internet
advertising will exceed 10 per cent of the total ad
spend in countries like the US, UK, Norway,
Israel, South Korea, Canada and Japan.
It’s not just developing countries that are
making these changes. The cellphone market in
India is growing at around three to four million
per month. That’s equivalent to the entire
population of New Zealand. In Singapore
cellphone penetration is 105 per cent (ie more
phones than people). SA may not be far behind.
In China, Internet access increased from 22 million
in 2000 to 137 million at the end of 2006.
In the UK, the spend on digital direct market-
ing has already surpassed direct mail. Add these
two together and you are looking at in excess of
25 per cent of the total UK ad spend. Spend on
direct marketing in the US in 2007 accounted for
53.7 per cent of total ad spend. Little wonder
that FCB couldn’t wait to merge with Draft to
form Draftfcb.
This lemming-like rush to digital is not just
Keith Wiser
about the cost of delivery. It’s about targeting,
managing director
measurability and return on investment.
5th Dimension
Underpinning all of this is the more effective use
(011) 781 6396
of data. All of these are core strengths of direct
marketing.  keithw@5thdimension.co.za
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Outdoor media

Outdoor ad Outdoor offers

spend Outdoor advertising offers the opportunity
R1.3 billion a year, to not only remind and brand build, but
out of a total of also communicate a message effectively
R20 billion as part of a multi-media solution

Expect more from outdoor

O
utdoor ad spend has enjoyed comfortable growth of For the industry supporters, the nature of outdoor media will drive
between 10 and 15 per cent annually, say experts. Richard its continued growth. With traditional mass media becoming too
Bode, sales and marketing executive, Primedia Outdoor, fragmented or too expensive to really deliver audiences and ROI,
refers to ADEX data, which finds that between October 2007 and outdoor offers advertisers a means to build their brands. Yet there are
September 2008, ad spend reached around R1.89 billion. “According to concerns that the outdoor industry has not been embraced by the ad
Nielsen data, the industry is worth around R1.3 billion a year, out of a industry; Bode believes new measurement and testing will inspire
total of R20 billion,” says Brad Fisher, joint CEO, ADreach. In recent greater confidence in the medium.
months, the market share growth has also been attributed to the It may be that the continued presence of rogue operators is driving
proliferation of new media channels that fall into the outdoor area advertisers away. Likewise, the inflated prices of certain formats and
such as digital screens etc. Certainly, outdoor media has some sort positions (without proven returns) forces advertisers away from
of glam appeal. outdoor media. And yes, as long as the rand continues to plummet, the
However, the economic climate has had a negative impact on the cost of certain digital screens and outdoor technology will be out of
outdoor media industry, and we are starting to see the growth rates reach for local advertisers. Smaller and more flexible formats will
32 slowing. “The trend over the past four years has shown steady increases probably see greater adoption. Street pole ads fit this description, and
in outdoor advertising spend. But over the last 12 months, the increase Fisher says they are possibly the best form of outdoor media as a
has not been as positive due to the economic climate,” says Bode.
Says Lebona Moleli, CEO, The Marketing Kraal, given the
AIS/Nielsen figures, which show that outdoor ad spend has
declined by 3.6 per cent for the period August 07- July 08, outdoor
will continue to grow, but at a slower pace in the long term.
“Especially in key township and suburban areas which are main
attractions for advertisers. The increased traffic congestion will
also increase exposure time and the effectiveness of this medium,”
says Moleli.
Dave McKenzie, MD, BOO! Alternative Media, finds that
billboards still get the lion’s share of ad spend, followed by
airports and retail street furniture. But he points to
Addynamix figures (July 2003- June 2008), which find
that spend on billboards has decreased quite significantly
over the past five years – dropping by 24 per cent. “At
the same time, both the airport advertising and retail
street furniture categories have shown significant growth,”
he says. Fisher, has found that bookings for street pole
ads have increased, while those for large billboards have
declined; advertisers are looking for a more cost-effective
solution, with less risk and greater returns.
In spite of the negative impact that the economic
crunch is having on sales, the industry players remain
optimistic that the industry will grow, particularly in SA.
“The country has not been as heavily impacted by the
current global economic and financial crisis as the US,
for example,” says Fisher. The 2009 FIFA Confederations Cup as well
as the 2010 FIFA World Cup will continue to create marketing
opportunities for advertisers (and for global and local sponsors and
partners, in particular) and will bolster the industry somewhat.
Whether this industry is relying to heavily on this false economy (as
some refer to it) remains to be seen.

marketingmix.co.za / vol 27 / issue 1/2 / 2009

 Outdoor media
result. “They have a relatively low production cost and are very
repetitive. Billboards are great, but they are very expensive,” he says.
Clutter was a problem in the street pole space, but companies
are taking steps to minimise this. ADreach, for example, is creating
fixed black frames, which will be the standard structure for its street
pole advertising. It is also limiting the number of frames per street
pole. “We have a visibility rating, which takes into account proximity to
a road, clutter around the pole, whether the ad is obscured, its size and
so on, to get a score out of 100. This score determines pricing too,”
explains Fisher.
Measurement
No doubt, measurement of outdoor media needs to be taken to the
next level, to ensure greater transparency and accountability. Locally, the
NPod research, carried out in a joint venture between Nielsen and the
South African Advertising Research Foundation (SAARF), should
provide the industry with reliable stats and figures. The Nielsen Npod
study samples 300 adults, and is able to merge the demographics of a
sample with its GPS tracking data, to measure the traffic for each bill-
board on the database, and to determine how many people come within
the specific range of each outdoor format, to have the opportunity to
view it and potentially engage with it. According to Michelle Boehme,
technical manager, SAARF, the Npod results for KZN and Gauteng
are available, with results for the Eastern and Western Cape due by
mid-2009; the remaining provinces’ results will follow.
The results for the Eastern and Western Cape will be modelled down
to smaller geographical areas, and to district level, to provide richer
feedback for advertisers and media owners. The KZN and Gauteng data
will be modelled to this level
34 thereafter. The initial results
show the extent of mobility
of the sample group and
demonstrate the opportunity
to reach a target audience
not only in areas where they
reside, but based on travel
patterns, explains Bode.
“The AMPS sample is
being used and when the
whole country has been
surveyed we should have a far
more credible measurement
system. What will hopefully
happen in the fullness of
time is that this initial data
will be supplemented with
other richer data and better
audience measurement will
be the outcome. It should always be remembered that we would want
to compare the performance of outdoor on a GRP (reach X frequency)
basis against all other media,” says Bazil Lauryssen, MD, INM
Outdoor.
The Npod3 device – the latest version of the Npod handset – is more
compact, at almost half the size and weight of the Npod2. Plus, it tracks
16 satellites, instead of 12, which means that it is far more accurate.
Improved downloads also mean faster turnaround of data.
In the UK’s Polstar study, billboards are being fitted with intelligent
cameras that read which eyeballs interact with the creative on the board,
and also register their gender, and age, as well as the length of time they
spend looking at the creative. “It is also subjective and has its limitations,
and is very expensive,” says Lauryssen. Others are concerned that this
sort of measure is not relevant to the general outdoor market, and will
require a substantial financial investment (which may further increase
marketingmix.co.za / vol 27 / issue 1/2 / 2009
media rental rates). For the media owner, this is a very sophisticated
measurement tool, but consumers are not happy about the invasion of
their privacy.
Marketers and advertisers are looking for greater accountability, and
we can expect that there will be greater investment in measures and
technology that will deliver this. “Is this specific technology a possibility
for SA? I would say that within the next five to 10 years, yes, for sure,”
says Ken Varejes CEO, Primedia Unlimeted.
Dr Paul Haupt, CEO, SAARF, says that locally, this sort of system
would not work. While in urban areas, it might be viable to fit
billboards with cameras, trying to do so in almost inaccessible rural
areas would be very difficult. And where do you draw the line with these
smart cameras – how do you decide whether someone’s eyesight is good
enough to read the copy on a billboard, for example. “For any currency
research, the methodology and the data must be consistent, stable and
reliable,” he says. The complexity of engagement makes this system
difficult to implement. “We all know that great creative sells. The
problem media owners have is that they dare not say the creative is poor.
This turns creative people off outdoor advertising as they loathe being
criticised and would rather design a print ad or TV commercial. I have
no doubt that in the electronic and digital age that we live in where GPS
devices know exactly where we are combined with a form of eye-contact
device we will be able to provide audience measurement of a different
kind in the future. It’s all a function of cost benefit and what the returns
are,” says Lauryssen.
Out of Home Media SA(OHMSA) is currently looking at a new
research tool for outdoor which will see a transponder device inserted
into vehicles, according to Varejes. “It’s not perfect but we’re certainly
taking a step in the right direc-
tion. Outdoor is a really difficult
medium to research;
what I would suggest is that
marketers look more closely at
pre- and post-campaign research
to isolate its effectiveness,” he
says. And while engagement is
becoming more important,
exposure remains a major priority
for all brands who want to be
seen by the right target market,
and remembered.
Integration
For launches and special events,
radio and targeted print should
be used in equal part, along with
outdoor advertising, in order
to raise awareness. Branding
campaigns would do better, to split the budget between street pole ads,
and print/radio. For the communication of specific new product features,
for example, the emphasis should be on targeted print media with
outdoor simply serving as a reminder of the print campaign (or as a tool
to direct shoppers to a website for more info).
Mobile phones can be used effectively to generate feedback, and
monitor who is viewing and interacting with billboards. Fisher says
ADreach is using SMS competition campaigns for some of its clients, as
this allows it to track responses to the campaign. Through the use of
individual unique codes, it is possible to see where the response is
coming from (regionally), so the advertiser can concentrate its efforts
on that region. These campaigns also drive the individual to a website
for competition registration, so demographics are easily obtained. “The
integration with outdoor and online is happening already – the problem
is that you shouldn’t be paying too much attention to your cellphone

while you’re driving. I’d recommend using more online and mobile
campaigns integrated into the shopping mall and indoor media space,”
says Varejes.
Alternative media options
Alternative forms of ambient and outdoor media, hold a lot of potential.
“Wall murals and containers are very cost-effective and also very
impactful, especially in the township markets,” says Moleli. However,
marketers must take care to work with local municipalities closely, in
order to be in line with regional regulations.
We can expect a lot more innovation coming into the outdoor
advertising space, thanks the more innovative use of technology.
“Projection format advertising is proving to be hugely popular – a brand
image can be literally projected onto the side of a building without
production costs and any permanent structure attached to any
building,” says Varejes.
Digital
Digital screens and billboards in SA have not been adopted as widely as
they have been in other countries. The secret to a successful digital
campaign is to have pristine screen quality, and he doesn’t think SA is
not there yet in terms of mass digital due to pricing.
“Five per cent of total advertising spend is allocated to outdoor.
The digital proportion is very small due to the medium being in its initial
phase,” says Bode. Alive Advertising launched its first digital billboard 12
years ago, and since then, has grown this number to around 22 screens.
“Five years ago, the market started to take off,” says Itz Arenstein, MD,
Alive Advertising. Today, these screens are almost picture quality. “But at
four times the price of a regular static billboard they are too expensive for
the local market,” says Arenstein. The billboards and the LEDs they
require are imported, and the dollar exchange rate makes the cost of these
units relatively high.
Primedia Outdoor launched the first large format Digital Network in
May 2008 and it has been very successful thus far, says Bode. “To
implement a project of this magnitude and quality requires substantial
capital investment. Digital signage is definitely the future of outdoor
and already in the US it accounts for one per cent of outdoor sites,” he
says. With the current economic pressures forcing marketers to seek
out risk-free, cost effective media solutions, digital might not top the
list for some time.
The upside of the digital screens is that they allow for the creative to
be changed almost instantly, making this medium more flexible than
static media. For retailers, for example, this sort of system would be
ideal, as they could load daily specials immediately, and target them to
specific areas. Experts agree that in the long term, digital will be the way
to go. “In some cases, digital is a forced investment, as the media owner
must go digital to justify the high rentals, as in an airport,” says Fisher.
Other benefits of digital media are:
 Tactical messaging
 Day-part message management
 Real-time updates
 Inexpensive creative changes (very low production costs).
The animated billboards are attractive to advertisers that want
Outdoor media
to take their messaging to the next level. But there are concerns
around this. Fisher believes that on roads, these billboards should
not be animated, as they are dangerous, and drivers are passing too
fast to actually engage with the creative. He also argues that at night,
the illumination of these billboards should be turned down to
prevent road accidents. “Unless you have ads that are static and
simply change over every 30 seconds,” he says, “but this requires the
media owner to be online so that the ad material can be changed and
updated more easily.”
Looking ahead
We can expect a greater emphasis on feedback and more immediate
advertising models, particularly digital, to dominate the outdoor agenda
over the next year or two. “TV, radio, magazines, etc are too fragmented
to offer the returns that advertisers are after. But with outdoor, you
know that there is one main road that everyone travels. It is very costly
to try and cover all the magazines out there; it’s much cheaper to advertise
via out of home media and get the same exposure,” says Fisher. Outdoor
advertising is increasingly being incorporated into 360 degree campaigns,
and its tactical strengths being exploited. “Based on the socio-economic 35
environment and the mobility of the adult population, more time is being
spent out of home. This offers advertisers the opportunity to reach larger
audiences through outdoor advertising,” says Bode.
But on the flip side, outdoor media will have to deal with a
changing regulatory environment, economic downturns and the
effect of the global economy, as well as changing perceptions of
outdoor. Furthermore, environmental concerns, council
inconsistencies and the evolution of audience measurement will
play in role in determining the future of outdoor media. But these
challenges are not going to have a long-term impact. Varejes says:
“As soon as we get over our current decline, I definitely expect
this sector to continue growing year on year at a faster pace than
traditional media.”
Pricing issues will also need to be resolved as the industry has come
under fire for over-inflated billboard fees. In particular, the larger
formats (temporary building wraps) are seeing steep rentals. Perhaps the
advertisers themselves are to blame for the steep pricing that media
owners are establishing. “Advertisers are demanding bigger and better
sites; there is limited supply and over demand so we as media owners
are actually only the facilitator,” he says. Short-term business deals are
also extremely costly once approval fees, physical structure costs, and
erection costs are tallied up.
Advertisers and media owners will need to work closely to begin
planning their 2010 exposure. Leading up to 2010, there will be
a dramatic short-term increase in spend, especially in the few
months and weeks before the main event. “One thing is for sure,
if you believe you are going to do better after 2010, think again,
as everyone has clamoured onto the bandwagon and believes
there are pots of gold in the outdoor industry. After 2010 the
established players will continue doing normal, sane business and
landlords will come back to earth with realistic pricing on which we
can all survive,” Varejes says. 
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Community media

Community magazines
“We would expect our target market, all things being equal, to read our publication in
addition to their special interest magazines, although initial indications are that MyWeek’s
target market does not necessarily read community newspapers as the information is
focused on school, municipal and crime news.” – Reinard du Plessis, GM, MyWeek

Settling down
C
ommunity media in South Africa has seen several
years of successful growth, and is now seeing a
flattening out in ad revenues, as advertisers feel the Community press trends
economic pinch. However, compared with its According to Gordon Patterson, vice president, Audit Bureau of Circulations (ABC) ,
commercial/regional counterparts, it would appear to have in Q3 of 2008, community newspapers were showing growth as a result of the
a very strong position in the marketplace, thanks to its launch of new titles and the gains of individual titles. He reports that there appears
local reporting and advertising relevance as well as its to be no cannabilisation of titles, since the titles were growing to cover new areas.
relative affordability. Comparing Q3 circulations for community papers from 2006 to 2008, circulations
went from 4 020 000 to 4 060 000 in 2007 to 4 600 000 in 2008.
Magazines
Referring to magazines, Patterson finds that while there has been an increase in
Community magazines report growth, as reader and
circulations from Q2 2008 to Q3 2008, the circulation of the free magazines is
advertiser uptake of these titles increases, and it’s expected
down year on year. In Q3 2006, circulation stood at 1 500 000; in 2007, this
that this growth will continue. “General content magazines
36 are likely to suffer as a result of the growth of community figure stood at 2 150 000, while in Q3 2008 the figures were slightly lower,
titles, and the environment is an exciting one for advertisers resulting in a decline of around three per cent.
who were usually limited to only newspapers in the past,”
says John Bowles, joint MD, the Newspaper Advertising
Bureau (NAB).
The community magazines are not cannabalising the readership of
other print media. “We would expect our target market, all things being
equal, to read our publication in addition to their special interest
magazines, although initial indications are that MyWeek’s target market
does not necessarily read community newspapers as the information is
focused on school, municipal and crime news. This is due to the
differing mindset between the two groups, and I say mindset because
age isn’t the dividing factor, only a contributor,” explains Reinard du
Plessis, GM, MyWeek.
However, in spite of the positive adoption of the community
magazine by the reader, media owners and planners do not fully
understand the medium. The complexity of the reader mindset is a
novel challenge. “Because of its youthful mindset and lifestyle, this
market is more inclined to be prosumers (producer-consumers) which
means they are socially active, participate in online social networks, and
interested in technological developments and environmental affairs,”
says Du Plessis. Robust digital strategies are therefore required to carry
the printed product into the age of broadband to ensure sustainability,
and so the community magazine category might be seen as a set of
integrated platforms that can deliver relevant, lifestyle-entertainment
info to the community. “We should probably stop looking at market
segments or niche markets and focus more on where communities
form, why they form, around what they form and how you can
integrate yourself in that existing community or build a new
community around your brand a la YouTube, Facebook, MySpace
etc,” says Du Plessis.
In terms of the number of magazine launches, there has been a slow
down and a merging of geographical zones into larger areas, to cut costs
and increase potential revenues (publishing a glossy, high quality community

marketingmix.co.za / vol 27 / issue 1/2 / 2009

 Community media
Community newspaper circulation (ABC, Apr – Jun 2008): 10 largest circulations
Newspaper
1 City Vision (JHB)
2 PE Express
3 Plainsman
4 People’s Post Mitchells Plain
5 Vukani
6 Algoa Sun
7 Maritzburg Sun
8 The Mirror
9 Vaal Vision
10 Rekord East/Oos
magazine in only one community is costly, and
challenging).
“The current economic climate has had an
obvious affect and will continue to do so due to
the fact that businesses return to those mediums
that have proven track records in terms of ROI on
every marketing buck spent,” says Du Plessis. The
reason readership and circulation have been
maintained is that these titles are of strategic value,
being available free of charge to readers, while also
38 serving as a tool through which publishers can
engage with a hyper-local community.
The integration of media and social networks
may drive further interaction with these media.
“We are planning a number of initiatives in
these categories at a local level. We have set
up a social network in two markets and its
success has been remarkable at this early stage. The
group is well set up to develop this environment
which is very much part of our future strategy,”
says Bowles.
Newspapers
People are time starved, and so have less time to
read newspapers, and yet are also overloaded with
info and news from a multitude of sources.
Community newspapers deliver news from the
immediate surroundings, as well as advertising that
is much closer to the reader. “This in itself is a
competitive advantage with which dailies and
weekly national newspapers find it difficult to
compete,” explains Alda Roux, GM, Community
Newspapers (Central), Media24.
While national or international news is available
online, community news is not, and so the demand for
Community newspapers
“National and regional media schedules are gunshot tools that lack the cover and
penetration required to support key retail nodes. As marketers realise this, there will
be massive pressure on them to justify fair support for where their products and
services are available.” – John Bowles, Newspaper Advertising Bureau (NAB)
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Net distribution Corresponding previous period
272 557 272 557
89 799 89 861
83 504 83 504
83 340 83 340
81 160 75 560
76 154 76 154
68 361 54 857
65 000 65 000
64 908 64 944
61 997 59 120
free community publications intensifies (paid for titles, on
the other hand, show a downward curve – their news is avail-
able on the Internet, usually for free).
Community newspapers remain a dominant force,
particularly as a retail communications medium.
“Retailers have little choice if they want to saturate the
catchment areas of their businesses or operations,”
explains Bowles. Reader profiles have remained much the
same, and it is expected that this will continue (at least
until the economy and the property market have picked
up and people start to move around again). Since area
profiles match the reader profiles of a community
newspaper, we can assume that the readers’ profiles will
not have changed either, says Bowles.
The economic pinch sees newspapers dealing with
shrinking revenues. We can also expect that consumers
will increasingly turn to community media that help
them find the best deals and the best prices.
At Central Community Newspapers (Free State and
Northern Cape) the decline in advertising income has
been very small, says Roux, but it’s clear that there has
been a shift in terms of who advertises. “Advertisers who
initially only advertised in dailies have moved to community
newspapers due to the lower tariffs they charge. The
profile of the advertiser has definitely changed due to the
economic crunch. Advertisers who took full pages, will
now only take half pages or smaller,” she says.
The economic slowdown is impacting on the
operations and launches of these newspapers as
well, resulting in serious consolidation. However,
consumers still need to make purchases, albeit more
conservatively; and they will shop around somewhat, to
find the right prices. “Community newspapers continue
to be that reference point where buying decisions are
made. Now more than ever, advertisers cannot afford
 Community media
Community radio (RAMS Nov 2008): 10 largest audiences
Station Province
1 Jozi FM Gauteng
2 Unitra Community Radio Eastern Cape
3 Radio Tygerberg 104 FM Western Cape
4 Sekgosese Community Radio Limpopo
5 Nkqubela Community Radio Eastern Cape
6 Thetha FM 100.6 Gauteng
7 Qwaqwa Radio Free State
8 Zibonele Community Radio Western Cape
9 Radio 786/ Voice of the Cape Western Cape
10 Radio Mafisa 93.4 FM North West
not to be part of that reference,” says Bowles. Community media also
offer retailers a more targeted media option (national and regional media
lack the cover and the penetration to match). “As marketers realise this,
there will be massive pressure on them to justify fair support for where
their products and services are available,” says Bowles.
That said, the rise of the ‘black diamond’ in SA sees young black
professionals wanting to be well informed and, as Roux says, this
is where the great opportunity lies for community newspapers.
“The black diamonds are naturally also the investors, which is the
reason advertisers want to reach this market. Black community and
other newspapers are probably the market to invest in at the moment,”
42 she says. The Express newspaper, for example, is becoming more
popular with state departments and estate agents that want to reach
this market.
Looking ahead, the community newspapers could see income
benefits during the elections, though in general, economic pressure will
force just about everyone to tighten their belts.
TV
Community TV is growing slowly; last year saw the launch of
Cape Town TV. Soweto TV, meanwhile is refining its operations.
According to Marco Veloso, group sales and marketing manager for
Soweto TV at Urban Brew Studios, SAARF AMPS has placed the
station’s audience at around 347 000, excluding DStv viewers (AMPS
2008A). “The SAARF People Meter has us at 581 000. My gut tells
me that the true figure lies somewhere between the two,” says Veloso.
He adds that the station is about giving Soweto people the space to
express themselves.
“Our model prioritises creating easy-to-access platforms for residents
to become the content creators,” says Veloso. This requires that the
station maintains a flexible real-time broadcast model with low costs.
Soweto is used as the studio for filming, and this ensures that all the
content is contextually real and recognisable. The station also accesses
and encourages independent producers to create programming for its
viewers. Research by Freshly Ground has shown that the two most
popular programmes for the stations are Dlal Ngeringas (youth to early
30s) and Ezomoya (a Sunday gospel show).
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Past 7 days listeners Percentage of total adults
560 000 59 %
375 000 49 %
312 000 45 %
264 000 41 %
260 000 41 %
227 000 38 %
211 000 37 %
208 000 36 %
205 000 36 %
188 000 35 %
The station has felt the impact of declining advertiser spend, but
Veloso believes that the declines in revenues are not as dramatic as they
might be for the larger players, because Soweto TV is coming off such a
low base. “There’s no doubt that the credit crunch has affected our
audience. Very few people will escape this one. However, ours is a
market that, historically, hasn’t had significant access to credit”. This
market will be more deeply affected by staff retrenchments, for example.
Soweto TV’s audiences are attractive to advertisers and marketers,
says Veloso, because Soweto is home to a growing young, trend-setting
middle class. He goes on to say that marketing to this community (if
done in such a way that it is relevant to them) delivers ROI.
Community TV fits in well with both ATL and BTL marketing, and can
be easily integrated into campaigns and strategies. “In ATL, it can
deliver audiences that traditional media may not reach, with minimal
wastage – provided the message is tailor-made for that community.
In BTL, it can be integrated into tactical campaigns, supported by
activations in the community,” says Veloso.
“From my personal experience, the planning fraternity still has a lot
to learn about community media although efforts from organisations
like NAB have made significant inroads in educating the industry,” he
says. But the onus is on planners to venture beyond their tried and
tested favourites.
Radio
Community radio might not offer wide reach, but as part of a strategic
campaign that reaches into niche communities, it can be very effective.
PEP has just launched a new radio programme across 15 community
radio stations across SA. Monate Feela (which means ‘feeling good’)
reaches around 3.5 million community radio listeners, with local music
and messages from SA sports and entertainment celebs; the focus is on
messaging that makes them feel good about SA. “Community radio has
great influence and is at the hub of the community,” says Marcus Banga,
marketing director, PEP. “We have 1 400 stores and wherever there are
communities in South Africa, there is a PEP store. This is why partnering
with community radio is such a perfect fit – for the listeners, for the
stations and for PEP Some of the stations, by the way, do have good lis-
tenership figures – hundreds of thousands,” says Banga. The particular
stations were chosen based on the size of the audiences, geographic
spread and so on. The programme carries only a PEP branded jingle (no
other advertising). “The show has editorial integrity and is not cluttered
by ‘sponsor’ messages – this is what makes Monate Feela so successful.
PEP has produced all the jingles and promotional trailers for the show –
so that each radio station has its own personally produced jingles for
Monate Feela,” says Banga. And while it is still early days, the feedback
from the stations has been positive. 
 Species
The man: a user’s guide
T
he question of what women want and
what it is that makes them tick has
been debated and deliberated for
decades. Men, on the other hand, remained
largely ignored by the research and marketing
fraternities, or were stereotyped; until David
Beckham made it acceptable for men to use
fancy hair products, and big brands had to sit
up and start thinking more intelligently about
how men behave.
The Discovery Channel has delved deeper
into the attitudes, habits and mindset of the
modern man in a study that is set to get big
brands and companies thinking. The
Discovery Species study challenges existing
stereotypes of young men (the core target
market for the channel) and delivers a bigger
picture of ‘the man’.
The study will lead to new thinking in the
brand-development process and impacts
execution, since it challenges traditional views
of why men buy what they buy, why they do
what they do, and what kind of emotional
response informs all of this.
Starting in 2007, the Discovery Channel
44 researchers identified and explored
‘Modern & In Control’ the 18 most significant life issues that
young men share in the most important
men might also be areas of their lives, including family life,
work, life stage, health and wellness,
married, but either way, relationships and so on. They then created
40 attitudinal statements to reflect these
trends and set out to collect the responses
cope well with modern of 12 000 men across Europe between
the ages of 25 and 39, and were able to
ideas of marriage and segment them into four Uber-Segments
(which are then further segmented into
life; they do the sub-segments).
They have subsequently tested 600
cooking or work South African men, and will compare the
results to those from the European study, to
offer South African clients a more localised and
part-time in order to contextualised report on local men.
The study explains certain trends,
help ferry the kids to and can make certain predictions about
the market: for example, based on the local
school, for example. findings, the researchers can explain why
it is that the male cosmetics industry is
set to grow further in SA. Young men’s
lives have become more complex than
ever before. Social, economic and cultural
changes are making the world of the man
so much more evolved. For example,
men are delaying becoming ‘grown ups’
(buying the car, buying the house, settling
down, etc) because financial freedom is
valued above the very complicated and serious
trappings of adult life. Emotional support
and a strong network of friends is becoming
marketingmix.co.za / vol 27 / issue 1/2 / 2009
key, especially in a world in which
traditional family structures have unravelled.
These men more frequently look for
a wife who is intelligent and independent,
and will answer his need for equality in
the relationship; the Stepford Wife days
are over.
Meanwhile, the media is throwing new role
models their way, and it is having a major
impact on men’s concept of their personal
image, and what it is that constitutes
masculinity; wellness has also taken on a
whole new meaning.
The study puts paid to the image of the
man under pressure and in crisis at the hands
of all these new and evolving demands.
Instead, say the researchers, men are thriving
– and some are juggling the demands of
modern life even better than the superwoman
who came roaring out of the Eighties, vowing
she would manage the kids, house, husband,
friends, book club, aerobics class and a
high-powered job without breaking a sweat.
The Uber-Segments
 Pressured Providers are more likely to be
family men who have traditional and
conservative views of their role in the family
and society (26% overall, 17% in SA).
 Modern & In Control men might also be
married, but either way, cope well with
modern ideas of marriage and life; they do
the cooking or work part-time in order to
help ferry the kids to school, for example
(34% overall, 45% in SA).
 All About Me men are, as the segment title
implies, self-focused; they will drive their
career interests, hobbies, desire for wealth
and independence as well as leisure pursuits
(26% overall, 14% in SA).
 Non Committals are men who live for
the day and shy away from serious
commitment or responsibility (14%
overall, 24% in SA).
The Discovery Species study will be
launched to Discovery Channel clients and
the media in SA in February 2009. Enquiries
may be directed to Sarah-Jane Harling,
account manager: General Entertainment &
Specialist Channels, Oracle Airtime Sales, call
(011) 329 5017.
The results of the study will be available
on the Marketing Mix website
(www.marketingmix.co.za) along with
exclusive commentary from the Discovery
Networks Europe (DNE) research team. 
www.marketingmix.co.za
 Eastern Cape intelligence
The Eastern Cape: ripe with
growth opportunities
T
he Eastern Cape’s future looks rosy. Eastern Cape Tourism has
plans to position the province as a premier travel destination,
while the developments along the coast are attracting investment
and boosting consumer confidence. “The Eastern Cape (EC) was South
Africa’s best kept secret until a few years ago when we were ‘discovered’,”
says Mauneen Charter, chief sales officer, Avusa Community
Newspapers and Agri, Avusa Media.
Tourism flourished, she says, and many farmers have transformed
their farms into game lodges, attracting visitors from abroad. Consider
that this province offers the Big 5, but not malaria, as well as having
beautiful beaches, and very reasonable property prices; the province has
attracted an influx of property developers in recent years. “More people
equals more business, which means more advertising,” says Charter.
The EC is a tough market, says Neil Hart, managing director,
Boomtown Advertising, but it is certainly not to be ignored. Even
though there has been a downturn in the economy, the EC region is
seeing high growth, as in the case of the Coega IDZ, and the five-star
Radisson Hotel. “There is a general sense of waiting for the recession
to kick in, but strangely is seems that it is very much business as usual.
46 We have noticed very small changes with certain clients, but overall
things are good, we are projecting our best year ever this year and are
well on track to achieve that,” says Hart.
Port Alfred, Port Elizabeth and Jeffreys Bay have probably grown
the most and now sport large malls and lots of development is taking
place in these areas. Property prices have seen a slight drop and, as a
result, are not as inflated as they were a year ago. “What agents are
experiencing is that they have many more properties on their books, so
buyers have a better choice. A year or so ago agents had very little
property to sell as demand was greater than supply,” says Charter.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
The opening of chain store businesses in the region means that
national advertising is becoming available to the media in this region.
However, there are doubts about the extent to which media planners
across SA are familiar with this market. “Areas like the EC have vast
regions of several thousands of people who are not easily reached but
who, by numbers, can make very good target audiences. One just needs
to consider it from the politicians’ point of view – can they afford not to
lobby these masses for their votes?” says Hart.
Media planners and buyers are warming up to the region, however; as
a result, Media24 community media are seeing very good national ad
revenues, for example. “But because there aren’t as many big businesses
in the area, agencies do not get to see the area as often as they would
Cape Town or Johannesburg,” says Reinard du Plessis, GM, MyWeek.
“If you think that Nestlé, Willard Batteries, GM, VW and Daimler
Chrysler are but some of the businesses that call the EC home, it’s
strange that an agency hasn’t decided to open up a satellite office in the
area. Many smaller agencies are reaping great rewards by servicing these
businesses (and local government) very efficiently from within the EC.”
And indeed, the low level of competition is allowing the smaller
agencies to really focus on more holistic, through-the-line solutions for
their clients, while also being forced to develop in-house the skills that
are an anomaly in Jozi’s agencies. “Due to the tighter budgets in the EC
we have developed very lean business practices. Gone are the days of big
budgets being spent with little care for ROI, every cent is looked at
carefully,” says Hart.
The EC is harder to reach through traditional media, and Hart
supposes that this is because it is often left out of the editorial of
national magazines, radio etc. “EC-specific media therefore does well as
it creates a sense of ownership that we would not get through several
 Eastern Cape intelligence

national media realms. It’s time that national

media start including EC (especially Port
Elizabeth) stories in their content,” he says.

Newspapers
“Press is stagnant, but perhaps more due to
management complacency than reader disinterest,”
says Hart. However, this cannot be said of
community media.
According to Andre Olivier, manager of OP
Newspapers, Media24, the ad revenues for the
company’s community papers in the EC region
has grown by around 14 per cent in 2008,
compared with the previous year, thanks to the
growth of new shopping centres and malls, and
the escalated national spending that goes with
that. He points to market research, which shows
a healthy readership, mainly due to the fact that
the editorial content published in these papers
has a direct impact on the readers of the
publications in their respective communities.
The strongest areas of growth are the Port
Elizabeth metropole area and the Jeffreys Bay
area. “These areas are expanding rapidly and the
demand for our papers is increasing month by
month,” says Olivier. The community papers in
this region have not seen a decline in ad revenues in total. However,
Olivier notes a decline in the property and motoring markets.
“Advertisers are looking around for the best deals and have become
48 more aware of the ‘fly by nights’ and prefer to advertise in reputable,
established papers,” says Charter.
According to Charter, the number of newspaper launches has not
declined thus far, but whether the new titles will be successful remains
to be seen. She believes that newspaper ad spend might drop slightly
more if the economic pinch deepens, but that the EC developments will
drive demand for advertising media. The PE Express Indaba launched in
the latter half of 2008. This publication serves the black townships
around Port Elizabeth and is published on the last Wednesday of every
month. A total of 30 000 copies are distributed to these areas.
Feedback from local businesses and the community is that the product
is spot on as far as the target market is concerned and the local
residents are ecstatic about a paper that informs them about key issues
in their areas.
The community newspapers in the EC are ramping up their new
media platforms, too. OP Newspapers, for example, is in the process of
refining its websites, with the aim of increasing user interactivity with
the platform. The websites will be up and running in early 2009. “OP
Newspapers has also joined forces with local community radio station,
Bay FM, to serve our communities even better,” says Olivier.
Looking ahead, it seems the EC newspapers will be consolidating
somewhat. “I don’t think anyone can forecast the next year in the EC –
we will just have to ride out the storm and hope for the best. I don’t
think there will be many new newspapers launched as people are
nervous about the economic situation in the country as a whole, not
just the EC,” says Charter.
Radio
Radio is strong in the EC, and the local stations have enjoyed good
growth over the past five years. “In terms of local advertisers, we have
not lost ground on advertising revenue year on year,” says Toinette
Koumpan, promotions manager, Algoa FM. From a national perspective,
the unstable economic climate has contributed to clients cutting back
on advertising budgets and adopting a wait-and-see attitude.
“Reports from AC Nielson ADEX indicate year-on-year drops of
between seven and 14 per cent among other major radio players, whereas
revenues on Algoa FM have not dropped by these levels,” she says.
The station makes education of clients a priority to ensure that they
understand the audience Algoa FM speaks to.
The station targets a market aged 25-49 in LSM 7-10. Ongoing
increases in audience with past seven days at 919 000 (RAMS, Q4 2008).
And while the station is not actively targeting young listeners, it is
seeing consistent growth in the number of young listeners. “Algoa FM
has embarked on an aggressive strategy to grow the brand across a
variety of media platforms specifically online and mobile marketing
through the launch of a mobisite,” she says.
In December, a new look interactive site was launched, with a
content-driven strategy. “The site is updated on a daily basis ensuring
content is fresh and exciting at all times with the power of the strong
listenership to encourage hits to the site,” explains Koumpan.
Magazines
The community magazines in the EC have seen a slow down in
revenues, but this follows national trends, according to du Plessis.
“We are, however, seeing strong support for our titles in PE,” he says.
New launches are also slowing. “Due to market saturation on a micro
level (meaning those magazines that do not distribute nationally),
launches have certainly slowed there, and it is clear that both MyWeek
and GetIt are consolidating their titles during a harsher economic
climate,” explains Du Plessis. The growth in infrastructure resulted in a
growth in publications to service those developments or their tenants.
“Unfortunately, that spurt was short lived in the EC (the EC normally
experiences shifts in the economy three to six months after the rest of
the country) and the current climate has impacted on that growth,”
explains Du Plessis.
There are no concrete readership figures as yet for MyWeek, though it
has a distribution of 20 000 copies in PE. Looking ahead, these
publications will be strengthening their positions through expansive
projects based on the core titles, for example. “There are a few
opportunities for micro titles, whether anyone has the stomach to invest
in those opportunities remains to be seen,” says Du Plessis. 

marketingmix.co.za / vol 27 / issue 1/2 / 2009


What’s the flutter
about Twitter
Y
ou would be forgiven if you don’t get
Twitter. Most people don’t, at first. Who
would want to know the answer to the
question, “What are you doing?” With more than
three million people already ‘twittering’ it has
taken the world by storm and is currently the
fastest growing social network in the world.
Twitter recently revealed that Facebook offered
to buy it for US$500 million in stock*. Clones
are popping up all over and developers are
developing API applications for Twitter at an
alarming rate.
If you’re not sure what I am talking about let
me start at the beginning. Twitter is an Internet-
based application which is described in its own
blurb as: “Twitter is a service for friends, family
and co–workers to communicate and stay
connected through the exchange of quick,
frequent answers to one simple question: What
are you doing?” (www.twitter.com)
The answer is given in a maximum of 140
characters and can be constructed using the Web,
IM or SMS. Although the ‘Updates to SMS’
feature was disabled in SA because of network
costs, tweets can still be made by SMS, although
there are many very useful applications available
for Smartphones and iPhones etc.
Your update is read by your followers, people
who have elected to be your ‘friend’ and in turn
you follow people whom you chose. You also
have the option to protect your updates or to
restrict them to your approved followers only.
Twitter is, in short, a mind-bogglingly efficient
way to stay in touch with many people at one
time. My tweets are linked to my Facebook
profile and other sites, and it automatically
updates my status on these sites too. It has very
low barriers to entry; it’s far easier to write a
message of 140 characters than it is to write an
entire blog, for example. It allows people to
interact in the time between more formal e-mails
and blog posts, and by doing so allows a far more
intimate relationship to develop between friends
and co-workers.
Am I reading your mind? You are probably
wondering ‘why on earth would I want to know
that Walter is having a cup of coffee or that Jane
is stuck in traffic’? Like many technologies the
application has far more interesting possibilities
than were initially thought of when it was
designed. I will give you some examples:
 Many tweeters will sit in a conference,
summarise the speaker’s presentations and
tweet it to their followers, they will use a
Expert opinion
simple search indexing technique called a hash
tag and by broadcasting it the proceedings at
the conference can be searched and followed
by many. At a recent conference I was able to
bring questions in from around the world
which greatly enhanced the experience of the
delegates.
 It’s very easy to get opinions by asking a
question. As a demonstration, in a recent
presentation I asked my followers for restaurant
recommendations. In two minutes I received
more than 30. Barrack Obama has more than
100 000 followers, think how quickly he could
gauge the opinions of the people.
 Consider co-ordination in a sales team using
a private twitter network, or in a service
operation, or motivating employees or getting
instant feedback.
 Consider its use in a disaster situation
co-ordinating rescue attempts. Twitter was
reportedly used during the hurricane disaster
in New Orleans. The Los Angeles fire 49
department is on Twitter.
 Within 20 seconds of the recent earthquake in
Los Angeles starting, I received a tweet:
OMG it’s an earthquake.
 Consider using Twitter to keep in touch with
your customers, informing them and judging
their response to your marketing and branding
efforts. Dell uses Twitter as does Zappos and
Southwestern in the US.
 I use Twitter extensively for gathering
information, as many of the people I follow
are international thought leaders in their fields.
I also use Twitter to broadcast my writing,
public speaking, consulting services, and to
announce and promote my blog posts.
 I also use Twitter to follow what people are
saying about my clients.
 I use Twitter to build a community. For
example, on a social level I recently attended a
meeting in Cape Town. I tweeted that I would
be staying on after the meeting, and a
‘tweetup’ (a Twitter meet-up) was arranged
Walter Pike
I met 30 to 40 people.
head of the faculty of marketing and
Twitter is still very new and like any social
media tool, it can be used in a frivolous and
advertising
destructive manner and can eat up productivity; AAA School of Advertising
however, as a tool to engage your customers and walterp@aaaschooljhb.co.za
empower your employees it has enormous (011) 781 2772 *
strategic and marketing potential. (You can follow Walter on twitter at
As a marketer you can’t ignore it. Your www.twitter.com/walterpike).
customers are using Twitter or its clones to talk
about your business, your products and your *Reference:
service… and you had better be listening. http://www.bizjournals.com/sacramento/stories/
2008/11/24/daily17.html
How will you use it? 
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Expert opinion
Technology: destination
(not entirely) unknown
This is the third in a series of articles written by the Hello Computer team outlining the core
competencies which are the essence of website creation.
T
he first and most important thing that
I can say about technology, on any
platform, is very simple. A fundamental
mind shift in the manner in which technology is
applied is far more important and necessary than
any new developments, innovations or technology
itself. More often then not, the latter is a result
of the former.
I pride myself on being technologically
agnostic, and I justify my belief by first assessing
what the desired outcomes and targets of any
online project are, before settling on a means of
delivery. A rural analogy that really helps in
understanding this attitude towards technology
is a little bit simple, but very effective (as rural
things often are).
50 You don’t pick up a pitchfork to go do some
farm work and then realise that you actually need
to dig a hole, which leads you to waste time
going back to the shed to fetch the spade you
would have taken, had you known what was
going to be required of you.
I cannot emphasise this enough – decide on
what, before you decide on how.
So simple, yet so easily overlooked.
The typewriter used to be cutting edge
There is no golden technology checklist that you
can reference to make sure your brand is tech
savvy or one of the cool kids. There is Flash,
JavaScript + Ajax, HTML, Flash and XHTML
hybrids, PHP… the list goes on and for as many
different technologies as you can discover, there
are places for them to exist. Where and how
should always be dependant on your needs and
not guided by what’s easier to build. A handy tech
test for a brand is to ask someone completely
removed from the process to test the online
experience. If they can go through the entire journey
the brand has created intuitively without being
confused or having to consider where they should
be navigating to, then the brand has succeeded.
The successful choice and use of technology
Benon Czornij should result in the delivery of the most simple
technical director user interface available, that accommodates the
HelloComputer richest experience while meeting your targeted
(011) 477 3304 objectives within your chosen channels of
communication.
benon@hellocomputer.net
A myth that must be debunked is the belief
www.hellocomputer.net
that Flash sites are too cumbersome to load
marketingmix.co.za / vol 27 / issue 1/2 / 2009
competitively in comparison with HTML sites.
This, besides being untrue, is the result of
sub-standard development by individual
developers whom are able to design and build in
Flash, but who are unable to optimise file sizes
appropriately.
Another issue I come across on a daily basis is
the belief that only HTML sites can get listed on
search engines. This also, is simply not true.
If at any stage you get told of an online
constraint, realise that it could be subjective and
get a second opinion before diving in.
David 1 – Goliath 0
A lot of people bemoan the infrastructure we
have in South Africa, but the simple truth is that
this isn’t a major factor when talking to the
majority of users who access the Internet with
more then adequate connections from their
places of work or for the higher LSMs whose
access is via powerful home connections.
We have one of the highest cellphone
penetration rates in the world; couple that with
new and innovative means of communicating
that are emerging everyday and you realise that
a little bit of creative thinking about the
application and relevance of technology can
easily counter any infrastructure nay-saying.
Technology of the world
The term global village was popular a while ago,
but people seem to have forgotten what it actually
means. I communicate with people all over the
world, sharing knowledge and ideas, as many
people do. The result is that although someone is
thousands of kilometres away, their ideas are
right here with us and ours with them. There are
no limits or challenges that are location specific
that cannot be creatively demolished in the name
of progress.
A final thought I’d like to leave you with is a
little bit frightening and yet exciting at the same
time. The digital camera almost killed the use of
film entirely in less than five years. Today, sitting
in a basement somewhere in the world, there is
a completely unknown person, developing
something that will revolutionise our industry.
We don’t even know who this person is yet, let
alone what or how they’re going to revolutionise
our world. 

Service please, South
Africa, this is your
customer calling
I
t is generally regarded that customer service
in SA is very poor; some would say it is
almost non-existent. In fact, according to a
recent global survey SA was rated 111th out of
124 countries in service excellence.
According to John Tschohl, president of US-
based Service Quality Institute and dubbed by
Time magazine as the world’s top customer
service guru, “South Africa could reach a growth
rate of 10 per cent a year or possibly more if
greater attention was given to customer service.”
Certainly, we have a considerable way to go to
compare with other emerging economies, but SA
is not alone in its need to address its customer
service challenges. According to a global study
conducted by Accenture earlier this year, companies
across the world are not keeping pace with
consumers’ rising service expectations, especially
in emerging economies. The survey findings
indicate that increases in customer service
expectations continue to outpace efforts made by
companies to improve service. Globally, nearly
one-half (47 per cent) of survey respondents said
their expectations were met only ‘sometimes,’
‘rarely’ or ‘never’.
To capitalise on our positive attributes of
cultural diversity, friendliness and welcoming
hospitality, especially with the upcoming 2010
FIFA World Cup, we must be able to deliver a
globally acceptable standard.
Yet, in my opinion, this will only be achievable
if a service ethos is adopted across all sectors and
through every level of society, and moreover can
be maintained in every interaction visitors have in
their experience of SA. We cannot hope to
improve our service record without commitment
to making a difference across all sectors. While
fulfilling service commitments, meeting expectations
and achieving customer satisfaction are service
basics, delivering a level of customer service that
creates a positive experience and makes people
feel their interaction with a company – or a
country – adds value, sets it apart.
Service must become a real priority for SA to
‘get right’ over the next two years. More
customer service support facilities and enablement
channels will be needed with contact centres
being critical to providing visitors and South
Africans alike with access to information, travel
and ticket information, fulfilment of bookings
and a host of others 2010-related services.
Yet, many call centres in SA do not provide
Expert opinion
consumers with a satisfactory service experience.
Based on customer satisfaction market research,
the major gripe that consumers have with call
centres is their failure to appreciate that the caller
is their customer, not merely a member of the
public or another number in the queue! While
call centres’ primary function is to render
support, customers are demanding people who
expect their individual requirements to be met.
Even as call centres cannot be everything to
everyone, agents should nonetheless be adequately
equipped to manage customers’ expectations.
While agents are trained to handle all types of
customers, my observation is that call centre
agents fall short on the basics. Most notably, they
do not readily take the time to listen and properly
understand a customer’s query; and then seldom
respond with solutions. This leaves customers
feeling disregarded and frustrated, and having 51
wasted precious time. Companies know only too
well that it takes just one poor service experience
for a customer to go elsewhere. Therefore, more
emphasis should be placed on sensitising call
centre agents to be more empathetic and responsive
to their customers.
Furthermore, customer service and call centre
agents need to better understand how to
communicate the brand that they are actually
representing. In my experience, agents do not see
themselves as an extension of the brand and
therefore do not understand that they represent a
component of the value a company offers the
customer. Yet, consumers expect value, and expect
a value-added service or experience from their
chosen brand. Marketers understand this, but call
centre or customer service agents typically do not.
Marketing departments in companies could do
much to remedy this situation through educating
call centre agents on the value proposition of a
brand, the key benefits, what marketing messages
have been communicated, what the market
perception of a brand is, and therefore what
customers’ expectations of a product or service
are likely to be. Such training should not apply to
contact centre personnel only, but to every single
person in a business. If everyone across a
company understood what their customers Nicci Columbine
valued about the company’s brands, and were managing director
effective in harnessing its efforts to increase that Columbine Communications
value through delivering exceptional customer
(011) 880 8137
service, the odds are that they would outshine
info@columbine.co.za
the competition. 
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Services SETA
CM (SA) update
Welcome to 2009 and to an exciting year, packed with value,
engagement, growth and self-actualisation for Chartered Marketers.
The past few months have seen the Temporary Advisory Committee
hard at work, putting in place a number of CM (SA) building blocks.
There is still work to be done, but progress is steady and the future
is bright.
More detail on some of our activities will be shared shortly – but to
keep you as motivated as the team is, we are pleased to share with you
our achievements to date and list the areas we are working on for
delivery by July this year.
So what’s in progress?
 The Communication Strategy and Plan is complete and the regular
communication to CM (SA)’s and to prospects will commence
shortly.
 The 2009 CPD Workshop schedule is close to finalisation – thanks
to Dr Michele Serfontein, CPD Project Manager.
 The CM (SA) Constitution is in development and will be completed
within the next three months, following consultation and engagement.
52  We are currently formulating processes around the establishment of
the permanent ‘Advisory Committee’, which we are anticipating will
be in place by July 2009.
The Marketing Practitioner (MP)
(SA)’s systems, processes, procedures
and rollout plan is also being
competed. MP (SA) applies to
marketers with three years working
experience as apposed to CM (SA)
which requires 10 years in the
workplace, at a senior level.
 The Committees responsible for CM (SA) quality, for benchmarking,
standards, CPD development and more will be in place shortly.
Various academics and industry marketing leaders will assist in
finalising this aspect.
 The process is underway to employ, under the auspices of our
custodian, the Services SETA, within their body – Communication
Management Services Chamber – a full-time, dedicated marketing
co-ordinator and project manager.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
The purpose of the programme was
and is, as we go forward to facilitate
the maintenance of the currency of
the competencies of Chartered
Marketers in order to ongoingly
award the designation of qualified
Chartered Marketer SA.
 The process for CM (SA) and Marketing Practitioner, or MP (SA),
from initial interest through engagement workshops, PoE submission,
CPD maintenance and more, has been fully documented.
 The CPD Activity Providers process and protocols are currently
being finalised.
 The re-registration of current CM (SA)’s is now complete and a
re-accreditation ceremony is planned for the first months of 2009.
Congratulations to those who were successful – communication in
this regard will reach you shortly.
 New CM (SA)’s are currently undergoing the CM process and we
expect to have two Board Exams written this year – those dates
being 27 March and 30 October 2009.
 The Marketing Practitioner (MP) (SA)’s systems, processes,
procedures and rollout plan is also being competed. MP (SA) applies
to marketers with three years working experience as apposed to CM
(SA) which requires 10 years in the workplace, at a senior level.
 Overall, great progress has been made and more positive outcomes
are expected soon, so watch this space and look out for the first CM
(SA) Newsletter coming to you soon.
Continuous Professional Development:
2007/8 in retrospect, and going forward.
About the CPD Programme
The Continuing Professional Development (CPD) programme for
Chartered Marketers that was initially introduced by the Services SETA
in 2007 has received much positive feedback from delegates. More than
125 Chartered Marketers participated during the course of 2008, in each
of the three regions, where workshops were presented.
All the costs associated with these workshops were covered by the
Services SETA. This made it possible for every Chartered Marketer to
 Services SETA
attend without having to consider additional expense. Marketers who
are members of the Services SETA and who are working for themselves
or small business owners were especially appreciative of the opportunity
to participate.
The purpose of the programme was and is, as we go forward to
facilitate the maintenance of the currency of the competencies of
Chartered Marketers in order to ongoingly award the designation of
qualified Chartered Marketer SA. In 2009 the programme will be made
up of three components:
 A compulsory CPD calendar made up of four sessions presented as
three-hour workshops in Johannesburg, Durban and Cape Town –
two workshops will be run by renowned international marketers and
two by leading South African marketers. Chartered Marketers are
required to attend all four sessions in order to comply with the CPD
requirements.
 Participation in registered CPD activities offered through registered
CPD activity providers, such as PRISA, SAMRA, the DMA SA,
GIBS, Wits Business School, UCT Graduate School of Business
and others.
 Various activities promoting the continuing professional development
of Chartered Marketers including the reading and publishing of
articles and papers; giving of speeches and lecturers; supervising,
mentoring or coaching of other practitioners and professionals;
attending courses and seminars; membership of marketing
professional bodies and industry organisations; and participation in
community or social development projects.
Look out for details of the 2009 CPD Programme which will be
available online from mid-February on www.serviceseta.org.za
54
Measuring the effectiveness of
sports sponsorships as part of an
organisation’s marketing investment
is key to understanding its value to
the organisation.
The 2007/8 programme ran most successfully and was concluded
with the submitting of completed CPD record cards on 31 October
2008. Close too 100 Chartered Marketers completed and submitted
their record cards and have now been re-accredited.
All submissions were evaluated by the CPD and Exemption
Committee, under the guidance of Dr Michele Serfontein, CPD Project
Manager contracted by the Services SETA.
Verification of participation in continuing professional development
is a new component that has been introduced to the programme during
2008. In line with this, twenty-five percent of the CPD submissions will
be required to submit additional supporting documentation, providing
evidence of participation in the CPD.
Compulsory CPD Calendar – a View on 2008
A diverse group of marketing experts participated in the CPD calendar
of workshops. Although some of the topics were not applicable to all
Chartered Marketers, who work in diverse industries in specialised
areas, the CPD workshops established an opportunity for Chartered
Marketers to interact with each other, the subject matter experts and
the programme managers.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
“Being forced to participate in a workshop that you don’t find
particularly relevant to your work has taught me that I can learn new things
from other areas of marketing,” commented one of the participants.
The topics led to great discussion and introduced new and challenging
ideas that could be used by participants in refining and improving their
marketing strategies:
The Pivotal Role of Direct Marketing – Traditional and New
Media, Trends, Quick Wins and Techniques
(presented by Michelle Perrow)
This workshop showed marketers how direct marketing has moved
from a ‘silo’d’ discipline to an integral part of the marketing mix.
Marketers need to maximise direct marketing by introducing new media
to traditional channel usage and by appreciating the critical role of
the marketing database. Best practice was discussed through the
presentation of various successful customer- and enterprise-relationship
management programmes and loyalty programmes. Metrics pertaining
to direct marketing was considered, as well as trends propelling direct
marketing into the future.
Sports Marketing and Sponsorship
(presented by Michael Goldman)
Sport sponsorship has been shown to be extremely successful in
creating emotional brand connections and building consumer loyalty.
Tapping into the fans’ passion and sustaining the connection requires
strategic thinking, brand positioning and an approach to partnership
that moves beyond traditional views of sponsorship. Measuring the
effectiveness of sports sponsorships as part of an organisation’s
marketing investment is key to understanding its value to the
organisation. The objective of this workshop, therefore, was to expose
delegates to current local and international best practices and leave them
with an actionable approach that could improve the performance of
their organisations. It assisted the delegates to integrate their sports
marketing and sponsorship activities into their organisations’ broader
brand and marketing strategies.
Consumer Loyalty Beyond Delivering Quality and Bringing
Satisfaction: The Creation of Perceived Customer Value
(presented by Francis Petel)
The workshop covered a perceived quality, the different approaches to
customer satisfaction measurement and the focus on churn analysis –
what triggers churn events and their analysis in terms of risk manage-
ment. It also looked at the role of incidents in loyalty, as well as brand
loyalty and consumer resistance, especially the effect on marketing
strategies and how to address these issues. Finally, it considered a ‘value’
approach to loyalty with a discussion covering a comprehensive range of
loyalty related issues, as they occur in European and mainly French
consumer behaviour.
Building a Customer-centric Organisation
(presented by Nicola Kleyn)
Organisations are increasingly focusing on becoming more
customer-centric as part of their attempts to grow revenues. This module
provided marketers with insights on how to mobilise their
organisations and value delivery systems to put customers back at
the centre of the organisation’s activities. Delegates were shown how to
conceptualise the construct of customer-centricity, before focusing
on the core components of a customer strategy, which if not in place,
renders an organisation’s customer-related activities unfocused and
less effective. The workshop was concluded by identifying the core
organisational behaviours that need to exist in order to promote customer
satisfaction, retention and equity, and by looking at the role that marketers
can play in enabling these.

Managing corporate reputation,
communicating about corporate
brands and building corporate identity,
are vital issues facing companies and
other corporations today.
Building and Protecting Corporate Reputation
(presented by Prof. Russell Abratt)
Managing corporate reputation, communicating about corporate brands
and building corporate identity, are vital issues facing companies and
other corporations today. New environmental pressures have led to
increasing importance being accorded to these topics. Possible effects
of eroded reputation include a drop in share price, decline in market
share, difficulty in recruiting talent and discontent in the communities
in which the company operates. Senior Marketers have to become aware
of the fact that corporate level marketing needs to play a very important
role in developing and maintaining an organisation’s reputation among
all its stakeholders. This workshop explored the role of corporate identity,
organisational identity, corporate image, corporate communication and
the corporate brand in reputation building and management.
Marketing Renaissance
(presented by Dr Steve Burgess)
With marketing enjoying a renaissance worldwide, this upbeat seminar
explored two important trends that are helping the discipline regain the
boardroom influence it once held. The first trend concerned the ability
to leverage our new insights into the institutional context of emergent
markets. The second trend concerned the advent of the new ‘marketing
engineering’ era. This seminar showed how marketers could leverage
these marketing renaissance trends to establish and stoke emergent
market learning laboratories and propel their companies and personal
careers to new heights. Opportunities and challenges in this new
marketing engineering era, which draws on soft and hard market
knowledge to hone market orientation within the firm, were discussed.
Delegates also discovered how marketing learning laboratories use four
Services SETA
stages of research and marketing analytics to identify routes to superior
performance outcomes.
Innovation, Marketing and Branding in South Africa
(presented by Gordon Cook)
This provocative and energising workshop discussed areas requiring
innovation in marketing and branding in South Africa. It also looked at
current innovative thinking taking place in the fields of branding and
marketing. The following question was raised: is business the brand or is
brand the business? Delegates were challenged to think beyond the
paradigm of a brand being developed as a result of a business being
established. Rather, business is established because someone has ‘had a
dream’. The dream is converted into a product or service and a brand is
established. Integrating the responsibility of building the brand into the
business is the paradox faced by marketers wanting to stand out as
professionals fighting for recognition at boardroom level.
Trading currencies for the buying and selling of media space
and time (presented by Dr Paul Haupt)
This presentation focussed on providing a broad perspective on media
audience research; SAARF and its critical role in the advertising,
marketing and media industry; and how it can be used to support and
inform best practice in marketing in South Africa. The workshop
covered the history of and rationale for media audience research and the
development of the South African Advertising Research Foundation
(SAARF) since 1974. It also looked at trading currencies for the buying
and selling of media space and time, the segmentation of audiences
focusing mainly on the SAARF Universal Living Standards Measure
(SU-LSM), and explored future challenges.
Chartered Marketers can look forward to a similar scope of CPD 55
topics in 2009. This will ensure that each CM (SA) is up to speed with
both traditional and new media trends.
Michelle Perrow
CM (SA) Project Co-ordinator
(011) 808 1600
michelle@difference.co.za
vol 27 / issue 1/2 / 2009 marketingmix.co.za
 Law mix
Tobacco products control
act – where do we stand?
I
f you thought the current Tobacco
Products Control Act placed a burden on
smokers, the current Amendment Bill has
set the bar much higher. The Bill was recently
passed by the National Assembly and is now
awaiting signature by the President before
coming into force.
The purpose of the Tobacco Products
Control Amendment Bill is defined in its
preamble. It includes, inter alia, the provision
of new control over the smoking of tobacco
products, the provision of standards in respect
of the manufacturing and export of tobacco
products, and an increase in penalties for those
who contravene the Act, once it comes into
force. Each of these individual “sub-purposes” is
discussed below.
New control
56 Previously, the smoking of tobacco products in
any public place was prohibited. The Tobacco
Products Control Amendment Bill now indicates
that, inter alia, “no person may smoke any tobacco
product in a public place, any area within a
prescribed distance from a window or entrance
to a public place or any motor vehicle where a
child under the age of 12 years is present.”
Furthermore, where public place was previously
defined as “any indoor or enclosed area which is
open to the public or any part of the public and
includes a workplace and public conveyance”, the
definition of public place will be amended to read
“any indoor, enclosed or partially enclosed area
which is open to the public and includes the
workplace and a public conveyance.”
Another amendment in the control over
the smoking of tobacco products is that an
employer must ensure that employees may,
without any retaliation, object to smoking
in the workplace, which is in contravention of
the new Act. Furthermore, an employer must
ensure that employees who do not want to be
exposed to tobacco smoke in the workplace are
not so exposed, that it is not a condition of
employment that an employee is required to
work in any portion of the workplace where
smoking is permitted and that they are not
Rachel Sikwane required to sign any indemnity for working in
associate any portion of the workplace where smoking
Bowman Gilfillan Inc is permitted.
At a first glance, one wonders how, among
(011) 669 9624
others, restaurant owners, their customers and
r.sikwane@bowman.co.za
their employees will adjust to this new law.
marketingmix.co.za / vol 27 / issue 1/2 / 2009
Manufacture and export
Another purpose of the Tobacco Products
Control Amendment Bill is to make provision
for standards in respect of the manufacturing and
export of tobacco products. The Act itself will
not expressly state these standards; rather, the
Minister will later promulgate regulations in
this regard.
However, no person will be allowed to
manufacture a tobacco product unless it
complies with such standards. Furthermore, the
standards will require every manufacturer of a
tobacco product to provide information about
the product and its emissions to the Minister and
the public as may be prescribed, in a prescribed
manner and within a prescribed time. Finally, no
person will be allowed to export a tobacco
product from South Africa unless it meets the
product and testing standards of the country of
final destination. If no such standards exist in the
country of final destination, the standards as
prescribed in South Africa will apply.
Therefore, where an exporter previously
need not have stated warnings on their tobacco
products meant solely for export because the
destination country had no prescribed standards,
the new law seeks to set such standards based on
those applicable to South Africa.
Penalties
The provisions relating to penalties have certainly
been the more drastic changes to the current
Act. Previously, the fines persons would be liable
for, if they contravened certain sections of the
Act, ranged from R200 to R200 000. The
Amendment Bill penalties now range between
R500 and R1 million.
Any person who is caught smoking in public
is liable to a fine of up to R500. Owners of
restaurants and other public places are now liable
to pay a fine of up to R50 000 if they contravene
the new laws. Furthermore, employers who force
employees to work in smoking areas against their
will, will be liable to a fine of up to R100 000.
Advertising houses and their clients as well as
tobacco manufacturers and exporters are liable to
a fine of up to R1 million for contravening the
provision of the Act relating to the advertisement,
manufacture and exportation of tobacco
products respectively.
One can only conclude that these increased
fines are meant to give the current Act a bite that
will match its new bark.