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S T R A T E G I C M A R K E T I N G I N S I G H T I Vol 25 Issue No. 7/8 I 2007 I R25.00 incl. vat

MarketingMix CONTENTS

I 0 2 I Book Review I 3 3 I Expert Opinion:

Marketing Mix reviews International Mike Glover
Marketing, by Steven Burgess and Mike Glover talks about marketing
Cornelius Bothma, and The e of spend and budgets

32 I 3 4 I Outdoor Media
I 0 4 I Ed’s note Marketing Mix finds out what’s
legal, what’s hip and what’s
happening in the outdoor media
I 0 6 I News
All the latest gossip in the wonderful
world of the marketing mix
I 3 8 I Expert Opinion:
Jarred Cinman
I 1 4 I Brand Anatomy 06 Jarred talks about the How To’s of
Gloria Jean’s Coffee’s launches into 34 digital marketing campaigns
SA: Marketing Mix takes a closer look
at their game plan
I 4 0 I Expert Opinion:
Nici Stathacopoulos
I 1 6 I Expert Opinion:
Nici gets the Line straightened out
Helen McIntee
Helen wonders if it’s
technomarketing or marketology?
I 4 2 I Expert Opinion:
14 42 Dr Passikoff
Dr Passikoff wonders if you can
I 1 7 I Expert Opinion: predict market success
Richard Duncan
Richard explores the role of the
I 4 4 I SAMRA report
recruitment consultant back
We bring you some of the highlights
I 1 8 I Marketing to from this year’s SAMRA conference.
women 48

How to woo the fairer sex I 4 8 I Cape Town

18 Intelligence
Know all there is to know about
I 2 5 I Black Diamond:
the Cape?
On the move!
Are Black Diamonds moving up?
I 5 4 I 7 Day [B]itch
Switch Through-the-Line’s business
I 2 6 I Central SA director, Chantal Girard makes it
54 clear why she has a love-hate
We look at who’s who, and what’s
going on, in Central SA relationship with her alarm clock

I 3 2 I Expert Opinion: 26 I 5 6 I Law Mix

Michele Venter-Davies Fayeeza Kathree-Setiloane explains
why the media oppose the Films and
Michele ponders the calibre of brand Publications Amendment Bill

Vol 25 No. 7/8 I 2007 I MarketingMix 1

by michelle sturman BOOK REVIEW

International Marketing
Finally, a locally authored book about market and the environment, which is useful
international marketing that features local for domestic or international marketing.
case studies has hit our shelves. While Other chapters cover: international
International Marketing is sure to become a distribution and logistics; marketing
staple text for marketing students (its research; product policy and development;
primary audience), marketers across all international marketing communications;
scales, who are already involved in or who pricing for international markets; the
are intending to engage in international Internet and international marketing; export-
marketing, will find tons of useful information ing and small business; export administration
in it. Authors Steven Burgess and Cornelius and logistics and evolving context and future
Bothma start at the very beginning of issues in international marketing.
international marketing with a description of One of the most important chapters for
exactly what international trade is and why many marketers is exporting and small
it’s important, including: business. This includes information on
z Increased overall level coping with competition from large firms;
of technological and economic develop- whether a business is ready to export globally;
ment the four steps to successful exporting (including
z Improved global com- trade in southern Africa. the pitfalls) and the definition of a small
petitiveness Part Three of the book, which deals with business in the South African context. The
z Increased job opportu- the international marketing environment, is export administration and logistics sector
nities and reduced unemployment, etc. exceptionally interesting and relevant for includes a useful list of the export documen-
They also cover the basics of international those wishing to expand their businesses over tation used by SA exporters, as well as how
marketing in detail, complete with explanatory borders or for those who are facing difficulties. to fill in a proforma invoice – fantastic
diagrams, making content much easier to The five chapters within this third section deal information for anyone just starting out on
International Marketing
understand. They provide descriptions of the with the socio-cultural, legal, economic, an exporting adventure. g
domestic marketer, the export marketer, the political and physical and technological By Steven Michael Burgess and
multinational marketer and the global environments. Whilst the information is not Cornelius H Bothma
marketer, along with a pep talk ‘are you necessarily new or groundbreaking, it serves Oxford University Press
ready to go global?’ – and this is just for as a reminder to delve deeply into the target R350
starters. At almost 500 pages it’s a hefty but
invaluable read for anyone who is thinking
of expanding into other markets. There’s a The e of marketing
nice touch at the end of every chapter, At last, a book about online marketing that encompasses everything from e-mail and blogs
consisting of a case study complete with an to vlogs and search engine marketing – without boring you to death from the very first
assignment – a worthwhile exercise for any sentence. It even looks fun to read with pale green pages and orange and pink info boxes
marketer (even if only as a refresher course). (sounds gross but it really works). Icons throughout the book highlight important notes and
While seasoned marketers can skip include: here’s a tip, what’s this? and some important reading, making vital info easy to
numerous chapters, students will benefit by spot. The chapters cover: why have a website? plus search engine marketing; online
taking the time to read every word. Chapter advertising; email marketing; citizen media and blogging; affiliate marketing; viral marketing
3, the economics of international trade for and emarketing strategy. This book is a
example, deals with the ‘economic rationale great start for marketing students, as
The e of marketing
of the activity… professionally as marketing well as for marketers who are baffled by
experts and not as economic analysts.’ The all the terminology (nicely explained in Japie Swanepoel
relevant background knowledge of world this book). It provides useful information Juta and Co
affairs and global economics makes it much on how to ‘get in’ on the whole online R190
easier to understand where international trip and make it work for your business.
marketing fits into the grand scheme of
things. The info on Africa is exceptionally Giveaway
useful for all marketers, since for many this Three Marketing Mix readers will each receive a
is the first stop on the road to global copy of the e of marketing by Japie Swanepoel
expansion. It also includes information on (Juta & Co). All you have to do is to send an
the various market regions in Africa and on e-mail with the subject ‘the e of marketing
trade organisations such as ECOWAS, giveaway’ to The first
AGOA and SADC, as well as an entire three people to send their e-mails will receive a
chapter that is devoted to international copy of the book.

2 MarketingMix I Vol 25 No. 7/8 I 2007

by michelle sturman ED’S NOTE

P R rules
After spending the last six months being cross with various PR firms, I’ve
decided that it’s time to lay down a few ground rules. This isn’t a go at
the whole PR industry. The purpose is rather to highlight some issues that
have caused Marketing Mix to be delayed and/or jeopardised the integrity
of the editorial. Taking notice of the list below (most of you know this
already) will help to make all of our lives easier in the long run.

Golden rules:
1 Do not phone to ask if I have your press release. If you’ve sent it, I’m sure to have it – unless on the
rare occasion my e-mail has gone haywire.
2 Do not phone to ask if a press release will be used. If I’m interested, I will find a relevant angle and
ask for more information/interviews etc.
3 Marketing Mix rarely runs stories that have been on general release or released to other competitive
Systems Publishers (Pty) Ltd.
Tel: (011) 234 7008
media, including websites. However, most press releases are kept in order to build up a knowledge
North Block, Bradenham Hall, 4 Do not offer a story as an exclusive and then have it run somewhere else, thinking that we won’t find

Mellis Road, Rivonia out. We will.

5 Do not think that you can offer the same story with a ‘different angle’ or a ‘later release date’ and get

PUBLISHER: Terry Murphy away with it. We will find out. Be honest and let us know if it has been sent out to other media.
6 Don’t send us completely irrelevant information. Ensure that you know the stories and features and
EDITOR: Michelle Sturman that you understand our audience. Call me if you’re unsure.
e-mail: 7 Understand what 300dpi or high resolution means when referring to pictures. 8 Don’t ever expect that corporate bumph will be left in any article.
9 Just because a client is advertising does not mean that they will automatically get a three-page article
JOURNALIST: Fulvia Becatti stating how great they are. If they have something relevant and worthwhile to say, this can possibly
e-mail: be used for a story or feature.
10 Don’t waste time by promising something you can’t deliver. If you can’t do it, just say so.
SUB-EDITOR: Sarah Webster 11 Please understand that I am always hectic and busy and working on a million different things at once.
e-mail: I know that you are too. Please also understand that I will quite often get back to you with a late
request and then expect you to perform miracles within the next 30 seconds. Don’t be afraid to say so
INTERN: Natalie Licata if you can’t oblige.
12 Marketing Mix is always open to ideas – but please read no. 6 before doing anything. It saves us all a
Robyn Andrews Now that’s out of the way, I have to say that I do have fabulous relationships with most PR firms. PR
e-mail: plays a vital role in my working life and my job would be a lot more difficult without it. There are many
that help me out in an instant, provide sought-after interviews, do some of the really boring ‘chasing’
PRODUCTION: work (which is greatly appreciated) and provide me with innovative stories and interesting people to
Spencer van Graan interview. I don’t even mind sending a story in for fact-checking every now and then, if requested – as
e-mail: long as it’s just for fact checking and not to squeeze in corporate info – and if I can help you with a client,
just ask. I don’t mind explaining to clients what they can and can’t expect from Marketing Mix (ie just
because they advertise does not guarantee a story or quotes etc).
On a completely different note, we have moved the Marketing Mix blog to a new site and I would
Daisy Mulenga
encourage everyone to add comments to blogs that are published.
Email: g
Copyright of all material in this
publication and supplements are
reserved by the proprietors, except
where expressly stated. The opinions
in this publication do not necessarily
represent the views of the publisher. Marketing Mix Conference Programme
• Best of POS: Johannesburg 6 September 07
List Perfect • Effective Marketing in Africa: Johannesburg 11 September 07
• Consumer Protection Bill: Johannesburg October 07
• The Extra Mile: incentives and motivation, sales and marketing: January 08
• Township Marketing: Johannesburg October 07

Sponsorship and delegate enquiries: Robyn: (011) 234 7008

4 MarketingMix I Vol 25 No. 7/8 I 2007


SABC News International

Launch date: 7 June 2007 reporting international news from an African perspective. The
Platform: SABC 2:12am-5am; Sentech Vivid: 24hrs weekly channel has a pan-African focus and reach. The channel currently
Ownership: SABC broadcasts short news bulletins on the top of the hour.
Programme highlights: The channel’s flagship programme is The channel also broadcasts French programmes such as Le
Rendezvous Africa discussing continental and global issues that Journal and Table Ronde, which are news and current affairs
affect Africans. World Today is an international news and current programmes respectively. In addition to news bulletins, the
affairs programme covering African issues, sports, entertainment channel features current affairs, investigative programmes and
and business. In the Public Interest looks at how the media covers business news from around the globe making it a well-balanced
issues. Timeline is a weekly current affairs programme focusing on news channel. Unique to the channel are daily French news
economic development in Africa. Afrobytes looks at science and bulletins which are currently streamed live on the SABC News
technology and The Commercial Continent looks at different website. The channel will be supported by six bureaus in Nairobi,
African markets. The channel will also broadcast Special Kinshasa, Washington, Brussels, New York, Dakar and Lagos.
Assignment. Programming Strategy: The channel will focus on reporting
Target market: The channel reaches out to both viewers based global news from an African perspective. The programmes
in Africa and the African Diaspora, who yearn for well-balanced will seek to be informative and useful to the audience while
news from business to current affairs. The primary audience is maintaining fair and balanced reporting. The programmes will
African stakeholders, business and opinion leaders, trade and also strive to bringing Africans closer to one another by
media. They are cynical about local media and European-based telling stories of Africans doing it for themselves. It is expected
media and consumer a large amount of news from various that a number of bureaus will be added in future including
electronic and print sources. The secondary audience is the Jamaica, People’s Republic of China, Brazil and Zimbabwe. There
international community. is interest from a number of broadcasters from Europe, America
Advertising rates: Range from R500-R3 000. and Africa in carrying the channel. From April 2008, the channel
Details: SABC News International is a news channel dedicated to will be 24-hours.

Township talk
South African consumers are diverse and the ambitions but they lack the tertiary help that and believe that only the smart and the
NOW project, formed by the c.i.a. (consumer they believe will bring them success. They are beautiful survive. They take pride in their
insight agency), captures the moments of seen as wild-children, are into Hip-Hop and appearance and they fear giving up on their
consumers’ interactions with brands. are determined not to become ‘disillusioned dreams. They are influenced by the ‘model-c
The NOW project’s aim is to bring life and have-nots’ (another archetype). Loxion go-geta,’ ‘new money,’ ‘polished diamonds’
reality to choosing consumer clusters. Twelve Dreamers are also frustrated by everyday and celebrities. Loxion Dreamers are connected
versatile archetypes have been selected to
represent the country as it is at present. Wendy
Cochrane, director, c.i.a. says: “These are seen to
be valuable tools in getting closer to the real
human beings that consume our brands and
Pictures coutesy of c.i.a.

services. They offer a fresh perspective on market

segmentation and move us away from stereo-
typing and grouping based on demographics to
a method that allows for the application of the
individual-archetypal themes that both connect
and polarise us.” township reality and they are very social, so through TV, radio, print, transport/outdoor
The project focuses on two main areas: they can be seen just about anywhere. They and digital media and by SMS in particular.
emotional and functional drivers and are status conscious and possess great style: “It’s powerful information as it reveals how
influence. One of the archetypes is the Loxion they follow brands and media. Loxion we’re influencing one another and it elevates
Dreamer: black males and females aged Dreamers are moving to more subtle ways of one’s gut feel on trends,” says Cochrane. An
18-35, living in townships in urban and demonstrating success and they crave the archetype will be released each month
peri-urban areas. Loxion Dreamers have big latest technology. They see life as a competition throughout the course of the year.

6 MarketingMix I Vol 25 No. 7/8 I 2007

NEWS Scott Bedbury on nation branding and brand SA

If you want to keep up with the
times, incorporate the latest trends Marketing Mix caught up with Scott Bedbury (brand
and really connect with the youth architect and the mastermind behind Nike and
of today, you need to be knowing Starbucks Coffee) ahead of his visit to SA. We asked Get it? him more about nation branding and how Brand SA
This online dictionary was also can get ahead.
recently available in paper format Here’s what Bedbury had to say:
from local bookstores. Here are a Brand SA may need a little work yet. You may be doing
just a few examples of some of the a great job of punting South Africa as the ideal vacation
words that you really should destination – with breathtaking sceneries and wildlife to match
know… – but are you also punting it as a great place to live or do
business? Security issues (perpetuated by reports about South
African Al Qaeda terrorists, for example) loom large in the eyes of
westerners. The government has to take active steps to make the right
changes. It has also become increasingly important for the government
to monitor news traffic globally, in order to identify global trends in
the perceptions of the country. Increased globalisation means that
countries, like brands, must compete for attention (in this
case, foreign investment and tourism). In order to put your
best foot forward you need to do two things. The first
involves self-discovery. (What do your citizens value
and what are they proud of? What are people around
the world thinking and saying about SA? Are these
perceptions accurate?) The second ‘must-do’ involves
making the necessary changes so that you can deliver
on the promises you make as a country brand (by
addressing issues such as security, crime and poverty,
HIV/Aids, etc), while also developing a single brand value
Myspy: using MySpace to spy that will differentiate you and carry you forward.
on exes (For the full interview, visit the Marketing Mix blog:
Dick Flick: opposite of chick flick
Youniverse: used to indicate Scott Bedbury will be speaking at a full day event in Johannesburg
that a particular person only has on 18 September 2007 at The Campus in Bryanston, Johannesburg. For
knowledge of him or herself more information visit
Meh: indifference; used when you
simply don’t care
Couching distance: the distance
one can reach without leaving the
Bluetool: a person who wears a
Bluetooth wireless earpiece every-
where in order to seem trendy and
Floordrobe: a form of storage for
clothing that requires no hangers,
drawers, etc; simply drop on the floor
Retox: to start consuming drugs and
alcohol again in an effort to avoid the
effects of withdrawal
Mantastic: feeling fantastic after the
successful completion of a particularly
macho feat
BiPodding: sharing a single set of
headphones attached to one iPod
Connectile dysfunction: the
inability to print, e-mail or get onto
the Internet.

The future Mobile castle

PricewaterhouseCoopers (PwC) has released its latest Global Entertainment A phone-based campaign has proved to be very successful in a first for
and Media Outlook 2007-2011 survey. South African Breweries (SAB). The multi-layered interactive
Filmed Entertainment promotional campaign was run in Zambia’s capital Lusaka to promote
Digital cinemas and 3D screens are expected to boost the box office market in SABMiller’s new 340-ml non-returnable Castle bottles, as well as the
the US. Asia Pacific is the fastest growing region and low-cost videos in Latin IRB Rugby Castle 7s. Exp Momentum, using Hypertag technology
America are expected to boost home video growth. Online subscription from Brandscape Proximity Marketing, drove the campaign. Hypertags
rentals in EMEA will increase rental activity, although this will be at the pick up Bluetooth and infrared cellphone signals, through which
expense of in-store spending. rich-media content is sent and interacted with.
Television networks
The US will remain the biggest market, while high-definition TV and digital
video recorders will make TV appealing for viewers and advertisers. Latin
America will be the fastest growing market.
Recorded Music
While the US will mainly enjoy increased distribution to mobile phones, piracy
and the migration to digital distribution will lead to declines in physical
distribution in EMEA.
Internet advertising and access spending
Spending in the US will total US$78.4 billion in 2011. An increase in
broadband penetration will drive advertising in EMEA.
Video games
Wireless games will boost growth in the US and handsets with Internet
capabilities will facilitate a growth in wireless gaming in EMEA. PC games in
Latin America will increase.

In the weeks leading up to the Castle 7s, promoters wearing

Business information Hypertags visited some of Lusaka’s top pubs, clubs and bars,
Marketing information in EMEA will increase to $6.4 billion. It will be the allowing the brewery to evaluate its use before the main event.
fastest growing category in Latin America. Over a quarter of those who interacted with promoters chose to
Magazine publishing download content. “Consumers interacted with promoters to
New launches will lead to increased circulation spending in EMEA, offsetting receive branded content and were given an incentive to do so by
increased competition from the Internet. In the US however, migration to the the opportunity to win prizes. The idea was to get consumers to
Internet will result in slower growth in consumer magazine advertising. trial the new product. The non-returnable bottles are more
Book publishing expensive but they have a perceived status,” says Gordon Parkin,
Growing economies in EMEA will keep educational books growing, while managing director, Brandscape Proximity Marketing.
online services in the US and Asia Pacific will drive markets. The interaction was free for consumers and no personal information
Casino and other regulated gaming was gathered. Some interesting facts about the Zambian market
US regulation on online gaming will have international repercussions and were gleaned from this exercise (including the number of high-end
online and mobile gaming in EMEA will become big business. cellphones that are used in the market). Approximately one fifth of
Sports users interacted by infrared. “It turns out that Zambians have phones
Attendance will decline in EMEA but in Latin America economic growth and up there with the international market, which makes this kind of
TV exposure will boost merchandising and sponsorship revenue. Sports rights interactive promotion a valuable tool for us to use in building our
fees in the US will be jacked up by new satellite and online sports packages. brand,” says Julian Remba, marketing manager, SABMiller Africa
For the full report, visit and Asia.

8 MarketingMix I Vol 25 No. 7/8 I 2007


Just add music

Which music is currently enjoying its 15 minutes of fame or would
make a brilliant soundbed for an ad? The list below includes a die
range of local and international music styles and most importantly, it
highlights which songs are hip and happening within different target
markets right now.
The following list is courtesy of EMI Music South Africa.

Act and song Why it’s hot Genre and emotion evoked

Simon Webbe Familiarity. His song No Worries Pop – warm, comforting, heart-
Coming Around Again was used extensively in the felt and light-hearted.
Telkom Closer campaign.
Elisabeth Withers Upcoming star who was the R&B – confident and soulful
Be With You lead in the Colour Purple on
Broadway – getting major play
on Metro FM and Kfm
Air The chill-out kings with a Chill-out – relaxing, slow
Once Upon a Time distinctive style
Fountains of Wayne Catchy with a similar sound to Punk pop – lively, catchy, sing-a-long
Someone to Love Stacey’s Mom – the bands recent hit. and quirky

Fine Young Cannibals A classic that is loved by most Pop – humorous and recognised
She Drives Me Crazy South Africans.
Lion King Powerful anthem with a current African/world – patriotic
relevance due to staging of the
theatre show.
Bob Evans Australian singer/songwriter Folk – intimate, personal, optimistic
Don’t you Think it’s Time making inroads to South Africa. and sincere

Just Jack Very catchy, it’s happy, recognised Pop – cheerful, fun, friendship,
Starz in their Eyes and liked social, full of life
Jamelia Well-known and great for a Pop/Rock – liberating, aggressive,
Beware of the Dog party power to the woman

Jameli Great cover of a classic Pop – positive and full of energy

Ain’t No Mountain High Enough

Vol 25 No. 7/8 I 2007 I MarketingMix 9


Indoor report
Alternative media, washroom advertising, end of the year.) According to Kramer, a
indoor media – whatever you wish to call it – perfect partnership with the talking frames
is on the rise. “The indoor space is gathering would, for example, be the use of more
momentum as there is a move to use space product giveaways inside washrooms, eg
for maximum impact,” says Andrew Kramer, coupons, tear-offs etc, to further entrench
group managing director, Primedia campaigns. We’re going to have to wait
Unlimited. While indoor media that is aimed some time for digital media as, “costs are
at women in shopping malls is a sell-out, coming down but it’s just not quite there
there are still those that are too conservative yet,” admits Kramer. In the meantime we
for washroom advertising (this is most likely have full cubicle wraps that promise to be
due to stuffy marketers or media planners spectacular and door wraps, which are
rather than the brands themselves).
According to research by ACNielsen MRA in
Project Wash and Watch, consumers enjoy
washroom advertising and have a positive
perception of the medium and the products
being advertised. It was also found that appeal of the Olay ad included the beautiful
washroom had a positive effect on intent to model that was endorsing the product, the
purchase and is complimentary to main- innovative and distinctive creative (especially
stream media. There is also great innovation the mirror) and the originality of the whole
taking place in washroom advertising, which medium.
includes talking frames. (Unfortunately, the There is still plenty of untapped space in
9 000 talking frames are sold out until the the nightlife category, which is good news
for alcohol brands.

perfect for the gym. High-end washroom

mirror advertising is being introduced locally
after its success in Dubai. A campaign by
Olay demonstrates the use of mirrors that are
integrated with a portrait of Olay advertising
next to the mirror, as well as talking frames.
The mirror advertising was the most seen
medium and over 90 per cent noticed the
advertising in the washroom. The highest
impact was the unprompted recall. The

Website of the month –

Filled with lots of lovely pie charts, bar graphs and other useful data,
this website is a one-stop shop for marketing data. Whilst the
information is US-centric, it still provides useful data trends, as well
as stories on the latest developments. uses
data from Nielsen/NetRatings, TNS Media Intelligence and
AdRelevance, amongst others. Data can be viewed by channel
(including outdoor, direct, TV, radio, magazines, etc) or by diverse
topics (ranging from blogs, list marketing and Europe to packaged
goods, research and signs of doom).

1 0 MarketingMix I Vol 25 No. 7/8 I 2007


Rituals Dynamic advertising

BBDO has released some of the findings of a study on habits, involving 5 000 people Ad agencies probably don’t think of Microsoft in terms
across 26 countries. It followed peoples’ daily routines and came up with five ‘rituals’ of anything other than being a nice account to have or
that reflect emotional states which can influence behaviour and have an impact on the company that facilitates their e-mail. However,
brands. The rituals occur from morning to evening and the first is ‘Preparing for thanks to partnerships with software specialists, a vertical
Battle.’ People take an average of seven steps in the morning to get ready for the day solution has been developed specifically for the advertising
– showering, brushing teeeth, eating breakfast, dressing etc – most of which is done
on autopilot. If it is interrupted, the morning routine (in particular) can influence the
day’s mood. It was found that 89 per cent use the same brands daily. Ninety per cent
of Americans brush their teeth in the morning and 86 per cent take a bath or shower. industry. The Microsoft Dynamics NAV business
More than 50 per cent of Indians go online before leaving the house and more management, financial and accounting solution can be
Americans check e-mail than talk to their other half. In Saudi Arabia 80 per cent pray tailored to suit any size agency. “The value that it adds
before work. ‘Feasting’ refers to eating and quite a few of us eat on the way to work. outside of the finance and accounting solution (for
In Canada, 38 per cent aged 18-27 eat during their commute, with three per cent example, the CRM function, which includes sales and
applying make up (although the number of women in Japan that do this exceed the marketing) is massive,” says Tracy Newman, Microsoft
global average by far). The car has become a place in which to eat, with 10 per cent Dynamics business group executive, Microsoft SA.
of Americans and Chinese choosing to do so (12 per cent for those living in Saudi According to Newman, the solutions marry personal
Arabia). ‘Returning to Camp’ covers our hometime rituals. Those from Brazil are busy productivity with business productivity. While the NAV
bees, having an average of eight activities. A very high percentage of those living in solution provides 80 per cent of what an agency is
Poland shower/bath at night. Nineteen per cent of Russians use the same products at looking for, the final 20 per cent is totally configurable.
night. ‘Protecting Yourself for the Future’ is about bedtime. Unlike any other women, These customised solutions can now benefit everyone
Chinese females like to style their hair (15 per cent) and put on makeup (11 per cent) working at an agency, not only the financial and production
before bed. Over ninety per cent of Chinese people have a night-time ritual. departments. “They provide account executives with a
South African Rituals will be revealed in the next issue of Marketing Mix. 360-degree view of the customer,” says Newman.

Touching a brand

All too often marketing efforts ignore people with

disabilities when it comes to building loyalty to a
brand. Now Worcester Winelands, in conjunction
with Pyrotec, has created a world first: the Braille
wine bottle. Endorsed by the Institute for the Blind,
the top half of the label created by Pyrotec consists
of an embossed Braille section that outlines the
cultivars of the
cellars. A Protag
necktag has
also been
created for
in-store impact
and helps to
provide product
information for

Mobile tricks
Mobilitrix has launched new software that
connects old and new media through SMS and
mobile Internet by using icons in traditional
mediums. It is already being piloted in six
countries, including the US, the UK and India.
According to Tim Lucas, an international ad
industry specialist, South African publishers have
lost R250 million in ad revenues over the past five
years. “Print media has been lagging behind the
Internet over the last decade with regard to its
share of readers and new advertising spend and
Mobilitrix give them the tools to fight back,” says
Andrew Cardoza, founder and CTO, Mobilitrix.
The software is aimed at the 20-30 year old
market. While it can be used by all forms of media,
it is a perfect partner for print media. Marketers
can use it to create campaigns and it provides
advertisers with the opportunity to advertise interactive multi-media ads. deliver virtual vouchers, web-links, time-sensitive offers and targeted
It works like this: If readers see the mobilitag icon in a print article, campaigns to the market. “The company is entering a very exciting
they can SMS a keyword and a website address will be sent back to commercial phase with all of the software products coming online in
them, giving them access to additional information. the next few months. We are currently undergoing trials with selected
The six software products fit into the four fields (classifieds, editorial, partners to demonstrate the ability of the software tools to link the
advertisers and knowledge) that Mobilitrix is aiming at print media, worlds of print and the web via the mobile device, thereby generating
and are currently undergoing beta testing. an additional revenue channel for the print industry,” says Chris Rolfe,
This new software also provides brand owners with the ability to CEO of Mobilitrix.

Are you innovative? Scores:

The Gordon Institute of Business Science Top 10 companies (ie companies with highest volume of innovation reports in
(GIBS) and InnovationTOWN recently presented the media).
SA’s Innovation Score Card for 2007. The Company Volume (statements)
Innovation Survey focused on JSE-listed Eskom Electricity 8547
companies, as well as on 100 of the top Telkom SA (JSE listed) 6886
unlisted companies. The results indicate the Sasol (JSE listed) 6802
amount of coverage that the top 100 ABSA Group (JSE listed) 6221
companies have received in selected media Transnet 6187
sets (print and TV). In a nutshell, this survey Anglo American Corp. (JSE listed) 6185
reveals whether or not local companies are MTN (JSE listed) 5866
improving their bottom line through activities Standard Bank (JSE listed) 5680
that include: new product launches, business SABC (Broadcasting) 5124
practice innovations, changes to business South African Airways 5112
structure, etc. It also reflects how the media
presents innovation to other stakeholders A panel discussion generated some engage in the kind of exciting marketing
(and indeed to the rest of the world). interesting ideas. Firstly, while the media that would generate media coverage.
According to Wadim Schreiner, MD, may need training on the reporting of Marketers must address the need for inter-
Mediatenor SA, the results show that overall innovations and R&D developments, it is not esting and relevant innovation stories, while
media coverage of innovation is low, the job of the media to pat companies on also encouraging company innovation.
although the non-listed companies had a the back. It is the responsibility of each With regard to the media, it emerged that
higher score at 3.15 per cent when company to market its innovations in a way the Afrikaans media (print more so than TV)
compared with listed companies, which that interests the media. Although company has a higher proportion of reporting on
scored just over one per cent. What this CEOs are quick to claim that business inno- innovation (Sake24 scored 2.6 per cent,
means is that local companies are not taking vations are a priority, few actually dedicate which was above the average of 1.07 per
innovation seriously or telling their innovation time and money to innovation. Conservative cent). South African TV news appears to have
stories in the right manner. companies are reluctant to innovate and to the lowest scores for reporting on innovation.

1 2 MarketingMix I Vol 25 No. 7/8 I 2007


The stage is set Thumbs up?

How do you take a magazine that has a very low cir- Thumbs down?
culation and in one fell swoop turn it into a recognis- The Khuza Awards are back for a
able brand, increasing sales tenfold and appealing to third year to examine youth brand
perhaps the most fickle target group in the market? communication preferences. The 3
For a start you get Colman Murray onboard, who at 000 youth panelists (aged 8-23) will
one time or another has been publisher or associate assess all the short-listed entries in a
publisher of Time, Wallpaper*, InStyle and many oth- nationwide judging process from
ers. Murray is now the proprietor, publisher and edi- mid-August 2007, and then judge
tor of Stage Magazine, a music magazine that used the top nominations with the best of
to have a print run of 10 000 and average sales of 3 000. In true the marketer and agency entries.
Murray fashion, he signed Media24’s print and distribution arm (NMD24) in March and immediately
increased the print run to 35 000. This means that the magazine will be available in approximately
10 000 outlets nationwide (CNA, Clicks and Exclusive Books included), compared to the original 750.
“We will be profitable in this first year and I’m giving all advertisers a money-back guarantee that is
based on our selling 35 000 copies by year-end,” says Murray.
Editorial content is high on the agenda. In the first three issues, Murray managed to snag exclusive
interviews with some of the best local and international bands, including Gnarls Barkley, U2, The
Killers and Dave Matthews. Local artists sitting on the editorial advisory board include Chris Remember, this is no panel of
Chameleon, Louise Carver, Barney Simon, Rian Malan and Tamara Dey. The magazine has been experts; if your advertising and
redesigned and connects with music lovers. The target market consists of teens to 40-year-olds – branding campaigns have struck a
high disposable income, upscale, urban modernists. It has a profile on MySpace while its own website chord with them, you’re a winner.
is under construction. To build the brand in the relevant market, Murray has also backed up the Simple as that.
relaunch with TV ad campaigns and barter deals with Channel O, Go and MTV. While Murray will A full research report will be
apply for ABC auditing, the present unaudited figures for the last few issues stand at an impressive available from HDI and an awards
average of 17 000. Brand extensions, such as merchandise including T-shirts, are planned for the event will be held in late October
future. “I’m currently looking for a publishing partner and my main aim is to build the brand through 2007. For more information, visit
aggressive marketing and through guiding consumer perception,” says Murray.

Ogilvy targets shopper behavior

Ogilvy South Africa has officially launched its new price of R8.99 and the product
division, Ogilvy Shopper Marketing. Headed up by had little retail support (besides
Kristina Couzyn, the division aims to address the limited sampling and the usual
need for a greater understanding of why a con- off-shelf displays) – stock was
sumer will choose brand B over brand A. Couzyn expiring on store shelves.
says that shopping decisions are made on the Following the client brief, Ogilvy
spot, with 75 per cent of purchase decisions Shopper Marketing developed
being made in-store. The local consumer market several objectives: giving the
is worth a cool R640 billion. brand talkability and creating
Couzyn believes that there are several interest; creating a call to
moments of truth that occur prior to and including the purchase action; creating an original campaign that allowed the target
decision and that these can be leveraged to drive sales, especially in consumer to experience the brand in a positive way; portraying the
the ‘Last Mile.’ In the Last Mile any number of factors, from the pack- product as ‘cool’ in a way that resonated with the brand.
aging to the ease of finding the product etc, can influence the pur- In order to achieve this, Ogilvy Shopper Marketing came up with
chasing decision. Ogilvy Shopper Marketing is built on four pillars: the Willards Kettle Club concept. They rebranded exclusive bar/club
homework (research into the psychology of shopper behaviour and in- venues into the Kettle Club and hosted fancy parties. Tokens inside
store fieldwork); insight; activation (based on the homework and the on-shelf packs directed consumers to the website (or call centre)
insight) and evaluation. The division has developed several offerings: to find out if they had won any of a number of prizes or the grand
the Marketpulse study (which measures the in-store environment) and prize. Regional radio partners (94.7 Highveld Stereo, KFM, Kaya FM
the Shopperpulse (which analyses shopper behaviour related to the and East Coast Radio) created an awareness of the competition. The
client’s category via observation). campaign not only secured Willards Kettle Fried Chips over R1.1
During 2006 Ogilvy Shopper Marketing was called in to help million in media exposure (as well as approximately 4 000 hits to the
Willards Kettle Fried Chips. The brand launched in March 2006 but did website and phone lines), it also doubled sales volumes during the
not do as well as Willards had hoped. The chips carried a premium month of its activation.

Vol 25 No. 7/8 I 2007 I MarketingMix 1 3

by fulvia becatti BRAND ANATOMY

Gloria Jean’s
Coffees brings
passion to coffee
cafe culture. This provides a huge opportunity marketing involves new product launches (to
to grow the existing market,” says Steve create an awareness of different product
Gersowsky, MD, Gloria Jean’s Coffees, South offerings), PR and new store openings. Local
Africa. The flagship store, based in the store marketing entails the implementation
Fourways area of Johannesburg, has grown of different tactical programmes, like
by between 35 and 40 per cent per month Frequent Sipper Cards, Whole Bean Club,
since it opened in February. “With a range of Business of the Day and various other
new products and the launch of a new programmes that are run in-store. “All
national promotional strategy, we envisage launches and tactical programmes are
that our growth will be approximately 15 to supported in-store with various point of
Gloria Jean’s Coffees started out as a 20 per cent above what we initially budgeted,” purchase elements, such as sampling
family-run coffee shop based near Chicago says Gersowsky. He believes that brands campaigns,” says Gersowsky. Agency Joe
in the US, almost 30 years ago. Today Gloria cannot fool the customer when it comes to Public is handling the brand’s advertising,
Jean’s is the second largest coffee retailer in providing quality. “Customers know the while Publicity Workshop has been tasked
the world, boasting 800 stores worldwide. difference between a great and an average with national and local store marketing.
In Australia, Gloria Jean’s Coffees is the product and in today’s over-saturated market “The real opportunity is that all our stores
market leader, with more than 400 stores it is quite simply not good enough to be are franchised so the franchisees have the
across the country to its credit. good. You have to be great in order to opportunity to tap into the local market and
Gloria Jean’s Coffees has now arrived in capture the market’s imagination.” work in their areas. They are also able to
South Africa. It is investing over R45 million Word of mouth has boosted the brand’s download all available online marketing
in the local development and rollout of the entry into the local market but Gersowsky collateral from the international website and
brand over the next few years. “South Africa believes that the brand’s unique marketing to adapt to the market they are trading in,”
has a huge emerging middle class consisting strategy is what sets it apart. This is a dual says Gersowsky.
of people who are aspirational and well- system that focuses on national marketing The store franchisees collaborate with the
travelled, who are accustomed to European as well as local store marketing. National managing team to ensure that the different
elements, including music, decor and furniture,
Brand history: are just right. Furthermore, all franchisees go
 In 1979 Ed and Gloria Jean Kvetko opened a small coffee shop near Chicago, Illinois, through two months of intensive training at
in the USA. Gloria Jean successfully introduced gourmet coffee to the US market, the brand’s ‘coffee university’ (which is
where ‘gourmet’ came to mean ‘good quality’ rather than ‘high price.’ By 1986 currently setting up branches in
Gloria Jean’s was franchising to third parties. Over the next few years Gloria Jean’s Johannesburg and Cape Town). However,
Coffees won several awards, including the title of American Entrepreneur this is only if they have successfully gone
Magazine’s ‘#1 Gourmet Coffee Franchiser in America’ (for five consecutive years). through the stringent selection process
 In 1995 Nabi Saleh (an Aussie with several years of experience in coffee and tea) (which includes several interviews and
and Peter Irvine (a franchising and branding specialist) partnered to take the Gloria personality profile tests). Store franchisees
Jean’s Coffee brand to Australia, where they acquired the Australian master fran- are also required to submit monthly audited
chise. In 1998 they franchised the first Australian store and during the next six years reports that are subjected to full day analyses
they opened 185 stores across Australia. It was not long before the pair (trading as by operators. Mystery shopper reports and
Jireh International Pty Ltd) gained the international brand rights (which excludes various store visits on behalf of management
trading in the USA and Puerto Rico). also go a long way to ensuring that Gloria
 In 2006 Gloria Jean’s Coffees was named the Australian Superbrand of the Year, the Jean’s Coffees only offers its customers the best.
Best Retailer 2006, the best Franchiser 2006 and the best Franchisee 2006. The food, store design, store ambience
 Aside from gourmet coffees, Gloria Jean’s also sells pastries that are imported from and product offerings need to be exceptional
Europe and baked in-house. Their fully trained baristas are encouraged to develop for this brand to stay afloat in today’s
their business skills. The brand supports three international charities worldwide, saturated market. “However, the real
whilst the stores support local charities. differentiation is implicit in the overall

1 4 MarketingMix I Vol 25 No. 7/8 I 2007


package and isn’t tied to the coffee, food or Gloria Jean’s Coffees: the brand
design. It lies in the overall passion for what Core market demographics: females, 18-39 years, with a segment aged 25 to 30
we do. How we go about looking after our years who are mature coffee drinkers
guests with humility and love is the key Core strategy: premium coffee supported by quality supplements (decadent
principle that we would like to build the pastries and gourmet sandwiches)
business on,” says Gersowsky. Brand values: community involvement (the store is regarded as a place in which to
The overarching store concept is flexible, meet or socialise, as well as a place of refreshment); great service, great ambience
given that it is modular: “It can easily fit and decor; the customer is the centre of Gloria Jean’s Coffees
into either a concession in a department
store, an Internet café or a small space equal chance to do well, based not only on daily basis. Gloria Jean’s even makes use of
under a staircase in a shopping centre. It skills but also on the desire of each individual leftover products by offering them to local
can even operate as a mobile unit that can (as well as the team) to achieve success for charities. “Nothing is held back at the end
cater for events or as a store front in a large the collective good. “We aim to develop our of the day: it is given away to charity at the
shopping centre,” says Gersowsky. The people at the coal face. This will hopefully end of each shift,” says Gersowsky. While
stores are all similar in design but each one provide an opportunity to empower our the focus will always be on their gourmet
has a unique feel – almost anti-brand. “As staff and to create a brand that is owned by coffees, Gloria Jean’s understands that the
our roll-out is countrywide, it is vital that the hearts and minds of our people. For me consumer’s overall experience is important.
we are advised by our franchisees with this is more important than anything else if we Their exclusive food offerings promise to
regard to the nuances that characterise are to differentiate ourselves,” says Gersowsky. add a unique dimension to their customers’
each region and that we adjust to suit that Another significant differentiator is the coffee drinking experience.
market,” he says. The store environment is brand’s product offering (which is wider As the brand rolls out across South Africa
appealing, with a focus on design. Some of than that of niche coffee retailers). “We over the next few months, it will rely heavily
the stores are currently operating out of import the top two per cent of the world’s on finding franchisees that share in the
Wordsworth bookshops in Knysna and the finest 100 per cent Arabica beans, which collective brand vision. “We have created a
V&A Waterfront, and all stores will soon be are roasted by our own roasters in Sydney, detailed process that allows us to ensure
linked to a dedicated music channel Australia. We have 53 different varieties of that we attract the right people to our
designed specifically for the brand. beans that range from single origin beans, brand. The reality will always be that the
Store personnel are enthusiastic and are flavoured beans and blended beans to an future of the brand depends on the perception
encouraged to feel a sense of belonging. extensive range of Fair-trade beans, all of that guests have of it. The customers will
Gersowsky understands that they are which are also available in decaffeinated vote with their feet,” says Gersowsky. He
responsible for creating the right vibe and products. The brand does not only focus believes that their aim is to create a culture
driving consumer loyalty. “Unlike other on hot branded drinks: it also has a wide of passion around offering the supreme cup
traditional coffee shop brands, we do not variety of over-ice cold beverages, fruit of coffee – with new and innovative latte
run a full scale restaurant. The interaction based chillers and smoothie based drinks,” art work – produced by the finest baristas in
between the guest and the brand takes says Gersowsky. South Africa.
place through the barista and the team The food offering includes a wide variety Gloria Jean’s Coffees plan to open 16
leaders behind the service area,” he says. of fresh sandwiches, baguettes, wraps and new sites during this year, including,
Staff development and training is a top salads, which are all prepared daily on site. amongst others: Cavendish Connect;
priority. Gersowsky maintains that the lack Added to this, Gloria Jean’s imports an Tygervalley; Bayside; O.R. Thambo
of skills development represents a challenge exclusive range of confectionary from the International Airport; Vincent Park in East
in the South African market. He acknowl- UK, produced in some of Europe’s leading London; Cedar Square in Johannesburg;
edges that one of his opportunities is to bakeries. These products are kept frozen Bridal and Co; Rivonia, as well as Loch
create a business in which the staff have an and are then freshly baked in stores on a Logan in Bloemfontein.
What does the future hold for gourmet
Awards and accolades: coffee brands? “The future trends in
 2006 International Franchiser of the Year, named by the Franchising and Licensing coffee drinking will evolve toward
Association of Singapore (FLA) and the World Franchise Council drinking Fair-trade and organic coffee
 Named 2006 Emerging Exporter in the Premier’s NSW Exporter of the Year awards, held from roasters who embrace their
by the Australian Institute of Export responsibility to establish a sustainable
 Franchise Export Award of the Year 2006 at the PricewaterhouseCoopers Excellence in and lasting relationship with the coffee
Franchising Awards farmers themselves. We will also see a
 American Express Supreme Reward for Best Retailer strong growth in high quality chocolate
 Bank of Queensland Best Franchise Awards based drinks, as well as a significant
 Franchiser of the Year in the PricewaterhouseCoopers Excellence in Franchising Awards growth in single origin leaf tea drinking,”
2005. says Gersowsky. 

Vol 25 No. 7/8 I 2007 I MarketingMix 1 5

by helen mcintee EXPERT OPINION

Technomarketing o r
Those of us who were practicing marketing at African adults have access to a cellular phone and
the turn of the century will remember the only 22 per cent of South African adults have a
much-heralded arrival of the ‘digital age.’ We land telephone line at home (AMPS 2005RA).
were led to believe that the world of marketing Now throw into the mix the fact that PC
was going to be turned upside down and on ownership only kicks in at LSM 10, which
its head with these techno tools and that comprises six per cent of the total population
‘marketing would never be the same again!’ (indications are that only 12 per cent of South
We are now seven years into the new African households own a PC) – and I rest my case.
millennium and I would like to pose a question I usually describe the concepts that we cover
with regard to whether or not traditional in the basic ‘Fundamentals of Marketing’
marketing is – as the experts told us it would introductory course as a ‘Toolbox’ of theoretical
be – ‘a mere vision of its former self.’ If I may concepts and ideas. Obviously marketers then
hazard a well-informed guess, the answer is select the most appropriate tools for the job
most definitely NO. and devise the Marketing Mix around them
I believe that digitalisation is really no different (one cannot, as we know, fix a Boeing with a
to the invention of the radio or television – it is number 13 spanner and a set of Allen keys!).
simply new ‘facilitating equipment.’ In my As marketers, we are compelled to jump off
mind, at this point in the game these techno the bandwagon and apply these incredible,
tools are really just another form of communi- spatial ways of communicating with our
cation delivery. customers when – and only when – they are
appropriate (and if the target market comprises

the few that have access to them).
Let us not fool ourselves: there are millions
There are millions of customers out there who of customers out there who still rely on good
old traditional media options to keep them-
still rely on good old traditional media options

selves informed. I therefore propose that we
open a new drawer in the communications’
to be kept informed. toolbox and suggest that we label it ‘digital
delivery.’ In this way, if we choose either
advertising, sales promotion or publicity as our
communication method, we can select
I know many people who would disagree whether the message will be delivered via
with me; people who feel that the Internet, CD print, broadcast or digital means.
ROMs, smart cards and satellite technologies While I am in the process of proposing a
are the future. However, consider the following: change in basic marketing theory, could we
Statistics South Africa has issued a mid-year please add packaging as a viable and under-
population estimate of approximately 47.9 utilised form of communication?
million people in our country. Although (I’ll save that for the next issue!) g
Nielsen/NetRatings has indicated that Internet Helen McIntee
usage has ‘soared’ over the past two years, as
director, IMM Graduate School of
of May 2007 it was still only 3.8 million. This
means that the remaining 44.1 million people
(011) 628 2038
do not have access to the Internet.
Added to this, only 41 per cent of South

1 6 MarketingMix I Vol 25 No. 7/8 I 2007

EXPERT OPINION by richard duncan

Wolves in sheep’s clothing

For some individuals, recruiters come a business partner and consultant for the client.
close second to second-hand car salesmen, In order to do this he/she needs to have an
double glazing or door-to-door salesmen. intimate understanding of the clients’ category
Generally speaking I would support this and business.
sentiment, as it appears to express the rule Sadly, I can count on only one hand the
rather than the exception, although there may number of recruitment companies in each
well be some professional recruiters who are market that do a truly professional job. In SA,
worth their weight in gold. I have been impressed by recruiters such as The
The recruitment consultant has two roles: Connection, Viv Gordon and Anne Pratt &
firstly, to sort the wheat from the chaff and Associates. Internationally, I rate Korn Ferry at
secondly, to work hard to identify potential the top of the heap and I believe that
talent when it is not possible to find the right Hourigan International in Australia is the best
candidates (either due to the specialised nature of the best. While this is not to say that there
of the job or to a general scarcity of skills in aren’t others that are worth mentioning, all of
the market). In both cases there is a good the above-mentioned companies seem to go
chance that the recruiter will have to earn the extra mile for their clients and candidates
his/her fee. alike, thoroughly briefing, preparing, researching
Recruiters play a key role in finding talent, as and screening their applicants.

well as in screening applicants, which relieves Sadly, the vast majority in each market seem
their clients of an enormous burden. This is no to rely on the sheer volume of the recruitment
easy task since they need to be sufficiently game. They use more of a shotgun ‘spray and For South Africa, the
briefed on the culture of the organisation, the pray’ approach, choosing quantity over quality
details of the job they are recruiting for and and not screening candidates properly. Despite shortage of skills is well
the peculiarities of the work environment. If this shoddy approach to recruitment, most
known, but the country
not, they are liable to waste time in short- continue to survive, receiving payment for their
listing inappropriate candidates. services and going on to ‘place’ another day. has a number of
Complaints about the cost of recruitment However the day of the cowboy is almost gone,
consultants’ fees and commissions are not given the growing use and power of online as a
unique obstacles that
uncommon. However in my experience, recruitment vehicle, as well as the likes of continue to stand in its
companies that are running lean that take on, Seek and With
the responsibility of managing the full recruitment online even the smaller companies have a more way. If the country is to
process, tend to expend more in terms of affordable alternative to using recruiters. When
compete with the rest
man-hours and lost productivity or profitability this form of the recruitment business reaches
than the cost of the said recruiters’ fees. maturity, only the very best recruiters will survive. of the world, perhaps
Having exercised and observed both recruiting The general global shortage of skilled talent
it’s time to think out-

methods, I favour the use of specialists. (which is particularly grave in SA) means that
Nevertheless, there is a caveat to my support recruitment across borders is all the more side of the box.
of the practice of using recruitment consultants essential. In order to survive in the future and
or headhunters: there are more cowboys and not be reliant on the bread and butter of low
cowgirls than gems out there – by a long shot. to middle level job placements, local recruiters
This applies to the UK as much as to South will need to develop alliances with international
Africa and Australia. Having functioned as both players in key feeder markets. To supplement
a candidate and a recruiter in all three markets, its local gene pool, Australia draws its imported
I feel well placed to make this observation. talent from the UK, South Africa, New Zealand
Recruitment requires considerable research and the US.
and preparation: identifying top talent, keeping The shortage of skills in South Africa is well
in touch and when required, trying to dislodge known. There are also a number of unique
people from their current positions. In addition obstacles that continue to stand in the way. Richard Duncan
good recruiters need to keep abreast of industry If the country is to compete with the rest of Sydney, Australia
and client developments. Ultimately a good the world, perhaps it’s time to think outside +61 41 154 9791
recruiter should perform the role of a trusted of the box. g

Vol 25 No. 7/8 I 2007 I MarketingMix 1 7

by fulvia becatti MARKETING TO WOMEN

Planet Fitness goes Feminique:

According to Grant Jabour, head of Marketing, Planet Fitness, there is a growing trend
The question of what women want and worldwide towards women training on their own. Following research into their existing
what women think about has spawned member base, Planet Fitness found that women both want and need this sort of facility.
countless best-sellers, films and Oprah specials “Men are generally ok if they are overweight but women aren’t. They are intimidated by
and has prompted marketers to spend the thought of training in front of everyone and they are self-conscious about their
millions on trying to find the answer. bodies,” says Jabour. While this is one of the motivations for establishing the Feminique
Marketing Mix asks: is it being done right? studios (an exclusive offering that only admits
Yvonne DiVita (author of Dickless women who have a national gym membership), it’s
Marketing: smart marketing to women online not the only reason for this innovation. “It also
and president of WME Books) believes that all caters for a large number of religious women (or
too often marketers ask questions and engage women whose husbands won’t allow them to train
women in conversations – and then ignore in areas that are full of men). In addition, many
the answers. The problem with this is that the women who work are tied to their desks, with lit-
existing stereotypes persist. “Marketing to tle time for themselves,” says Jabour. Feminique
women is all the rage, from what I read meets the needs of all these categories. “The tra-
and hear. But, few companies are doing it ditional women’s-only gym concept is dated
successfully. Too many companies are stuck in about 15 years ago. Our concept is very futuris-
that old Dick and Jane world of the 20th tic,” says Jabour. The Feminique gym environment
century, where women were stay-at-home is warm and sophisticated. The pink identity is
Moms and vacuumed in high heels, according contemporary and sophisticated rather than over-
to TV shows,” says DiVita. Today, women of done and it sports only the best equipment and finishes. Qualified person-
all ages are working to improve their lives, as al trainers are on hand to offer advice and support and group classes are
well as those of their friends and families offered twice daily, appealing to the preference for activities that allow
and of the world as a whole. “Women are women to bring a friend. “Women integrate socialising and activity very
watching to see what companies are doing well and they enjoy doing things together,” says Jabour. He adds that
for the environment and healthcare. Those are women train harder and with more dedication when they have the support of a friend.
very big deals. Ignore them at your own They can also leave their children in the Feminique crèche, where they are supervised and
peril,” says DiVita. entertained until mum’s workout is over. There are currently only a few Feminique gyms in
What we do know about women is that operation, although a national rollout is planned, with branches opening in Cape Town,
they love shopping (shoes, clothes, fashion Durban and Bloemfontein early next year. Since the inception of the Feminique studios
accessories, beauty products, cosmetics and about two months ago, they have had a 30 per cent uptake of membership by existing
magazines). They also love getting together Planet Fitness members. The good news is that the Feminique studios are franchisable.
with friends over coffee and fat-free muffins They are therefore affordable businesses for women to own and run.

1 8 MarketingMix I Vol 25 No. 7/8 I 2007


(or pink cocktails) to gossip and chat for Women’s rights:

hours on end. So what about it? Well, per- According to the global Voice of the People survey released by Gallup on 8 March 2007
haps you have even noticed that more (International Women’s Day), 38 per cent of the world’s citizens believe that women do
women are part of the burgeoning middle not have equal rights. At 68 per cent, this figure is the highest in China, while it is 36
class than ever before (and indeed of the per cent in Africa.
corporate world). “Women have risen in The study also asked respondents whether they agreed with the statement that education
stature and have become more financially is more important for boys than it is for girls. Seventy per cent – 94 per cent of Americans
independent and competitive within the and 74 per cent of Africans – disagreed, while in China, Senegal, Congo and Gabon, the
workplace,” says Georgie Dagnall, insight majority of respondents agreed with the statement.
associate director, Added Value. Robyn When asked whether both the husband and wife should contribute to household income,
Farrell, director, First For Woman Insurance the vast majority (79 per cent) agreed. The Japanese were the least convinced, with only
Brokers, maintains that the increased earning 40 per cent agreeing.
and purchasing power of women, together
with the greater number of households that
are headed up by women, represent huge Did you know? (Courtesy of Eighty20’s Fact a Day)
potential for companies. Women.24 recently  More than 70 per cent of the members of savings clubs/umgalelos in South Africa (as
did a survey of women and found that there well as in Botswana and Zambia) are women (Finscope 2006)
is a culture of ‘superwomen’ emerging: they  Seventy seven per cent of South African women are interested in Gospel music
are self-employed; empowered; working in  Approximately five million SA adults, three quarters of which are women, claim not to
their communities and filling roles as primary be interested in any sport (AMPS 2006 RA)
caregivers and household bread-winners.  More than half of all tennis players in SA are women (AMPS 2006 RA)
According to a recent article in The Times (5  The unemployment rate for black women aged between 15 and 65 years
July 2007) women constitute a third of SA’s is 47 percent (their highest level of education is a matric certificate) (LFS 2006)
5703 new dollar millionaires.  The average monthly salary of a domestic worker in Gauteng is R879 and (13 June 2006) refers to in the Western Cape it is R919 (GHS 2005)
reports that the number of women earning  Twenty eight per cent of Cape Town women aged between 25 and 50
US$100 000 or more has tripled during the describe themselves as single (AMPS 2006 RA)
past ten years. The income generated by men  Thirty three per cent of SA females between the ages of 25 and 29
has not fluctuated much in the last three are HIV positive (South African National HIV Survey, 2005)
decades, while the income generated by  One third of the women in SA have participated in one sport or
women has increased by 63 per cent. As another during the past year, with walking/hiking being the most
Grant Jabour, head of marketing, Planet popular (1.1 million female participants) (2006 AMPS RA)
Fitness, points out, these women are still mak-  Of the estimated 600 000 to 800 000 people who are ‘trafficked’
ing the decisions in the home with regard to across international borders each year, approximately 80 per cent are
health and general purchases, as well as diet women and girls and up to 50 per cent are minors (US State
and the food that is consumed by their fami- Department)
lies. “If we don’t pay attention to this market,  Ten per cent of women smoke at least one cigarette per day (AMPS
we are losing touch with the person that is 2006 RA)
making the household decisions,” he says.  Four per cent of the people who are in South African prisons or correc-
Farrell agrees: “Women are the world’s most tional institutions are women (AMPS 2006 RA)
powerful consumers and because their earn-  Sixty six per cent of black women – compared with three per cent of
ing and purchasing power is greater than ever white women – in SA live on less than R20 per day (AMPS 2006)
before, they are the largest and fastest-grow-  Twenty six per cent of black women – compared with 60 per cent of
ing market in the world.” white women – over the age of 18 are married (AMPS 2006).
This means that their word of mouth mar-
keting capabilities have become the female
super-power – this is no longer simply a Ubersexuals: the gender blender phenomenon:
female curiosity (like multi-tasking or lip-gloss). Georgie Dagnall, insight associate director, Added Value, has found that brands are beginning
“Word of mouth is more prevalent among to take advantage of gender wars and the gay mainstream. Women are becoming freer and
women and they are more likely to refer others are succeeding in the workplace and men are becoming increasingly adept at handling the
– both men and women – to brands that home. “The aspirations and opportunities of men and women are beginning to level out and
impress them favourably. In essence, women they are forging a larger repertoire of identities, taking on more diverse roles and displaying
buy what women sell. However, the reverse various facets of their identities across the different dimensions of their lives,” says Dagnall.
also holds true,” says Farrell. Jabour concurs, As gender boundaries blur, we see the emergence of exciting new brand platforms (think the
maintaining that women not only communicate new Nivea Men range; Jean-Paul Gaultier’s male make-up range; Dolly Girl Fragrance in the
better than men do; they also communicate UK and First for Women insurance).

Vol 25 No. 7/8 I 2007 I MarketingMix 1 9


more widely than men do - they are the per- WOW:

fect grapevine. DiVita points out that women The Women On Wheels supplement has grown substantially since
are connecting to the Internet and that they Associated Magazines started it in 2004. “Women On Wheels is
are increasingly becoming a dynamic force to the only motoring publication in the South African market that is
be reckoned with. “These networks of targeted at women,” says Julia Raphaely, MD, Associated
women, both business and personal, will drive Magazines. The supplement was started with the aim of offering
marketing and sales, in ways we don’t even the SA motoring industry a unique environment in which to adver-
recognise yet.” She predicts that select groups tise to Associated Magazine’s huge base of female readers. While
of women will dominate this landscape and these women are not traditional car magazine purchasers, they nevertheless buy cars
become the influencers that other women and have significant spending power when it comes to family car purchases. The sup-
look to for advice and insight (think Oprah, plement also boosts circulation and revenue and adds editorial value to Associated
Martha Stewart and Noeleen). “And watch Magazine’s midwinter issues. “We measure the growth and success of WOW by the
men step up. The men who are not afraid to advertising pages we secure for the supplement as well as by reader feedback… adver-
collaborate with the women of their lives, and tisers see value in WOW because of the way it’s positioned. It addresses the female
to form partnerships that will be strong, excit- market’s need to make informed decisions about anything to do with cars,” says
ing and successful,” says DiVita. Raphaely. Although Nedbank Vehicle and Asset Finance has been WOW’s main sponsor
It’s also important to consider that women since the launch, more and more motoring advertisers have added the supplement to
are more inclined to establish long-term brand their schedules over the past three years. “Reader feedback has been extremely posi-
relationships that take loyalty to the next level. tive: many readers have contacted us to say that they’ve taken the WOW supplement
“This means that every marketing Rand that is with them on their car-shopping sprees,” says Raphaely. WOW is bagged with the July
invested in female customer acquisition results issues of Cosmopolitan; O, The Oprah Magazine; House and Leisure and Marie Claire.
in a higher retention rate,” says Farrell. In fact,
experts insist that successful marketing to Health and beauty:
women may yield higher returns than market- Universal McCann recently researched the womens’
ing to men. However, the keyword here is suc- market in South Africa. The following feedback is for
cessful: companies need to be honest and the health and beauty category and is from research
open in the way that they market to women. groups that were held in 2006.
They need to connect with women and  Black women are very aware of their skins and will

encourage them to participate in the creation not take any chances with it (although they will
and design of their products. “The truth is, we experiment with hair products); they spend more
live in a customer-centric world now. If com- on face products than on body or hair grooming
panies are not engaging in conversation with products
their women customers, they’re likely to find  Advertising for personal grooming products, which

those customers opting to shop elsewhere. At makes use of scientific jargon, alienates women
the click of a mouse,” says DiVita.  Girls are getting into the face-care category at an

It should be obvious that women don’t increasingly younger age (usually in the transition
want all their brands and products to target from junior to high school); habits that are formed
them with pink ruffles, glitter and cutesy lady at this young age tend to stick with them for life
bugs. According to DiVita, the biggest mistake  Mothers and friends have the highest influence with regard to brand/product recom-

that a marketer can make is to assume that mendations

women are all alike. “Or that we all like pink,  Ageing is less of a concern for black women; they are more concerned by oiliness

frilly stuff. Or that we’re afraid of technology. and acne. Ageing is the primary concern of white women
Today, in the US at least, women are opening  Younger female respondents admit that once they have found a product that suits

new businesses at twice the rate of men. And, them, they remain loyal to it and are prepared to pay anything for it
they’re eager to adopt new technologies to  Women do not connect favourably with magazine sampling (samples need to last

make that business a success,” says DiVita. more than one day and more than one application is required to really see results)
What women do want are products that help  Advertising in general is being met with frustration, especially as the number of

them to enhance and sustain their busy advertising messages is increasing and as few companies/brands truly acknowledge a
lifestyles, believes Mike Middleton, Cadbury woman’s individuality
South Africa portfolio manager for Chocolate.  The plethora of products and brands available in the store environment is confusing

Woolworths has an affluent female bias, and to women, who would like to see more consultants and more toll free information
they have recognised that women influence call centres being established to deal with their questions in an honest way
the majority of purchase decisions. According  Race is becoming increasingly irrelevant in the young market with regard to

to Charmaine Huet, head of marketing, media audience fragmentation; young black females are watching the same TV
Woolworths, the trick is to continually rede- programmes that young white females are watching.

2 0 MarketingMix I Vol 25 No. 7/8 I 2007


fine what customer needs are. “We listen to

what out customers want and are continually
attempting to meet their demands. In
choosing ranges for the next season, we Chocaholics Anonymous:
comb the world in order to bring our cus- Women have a love/hate relationship with chocolate. Is
tomers products that we feel will satisfy chocolate going to suffer with the growing emphasis on
their demands for quality, style, and taste.” health and diet? According to Mike Middleton, Cadbury
Identifying trends in the female con- South Africa Portfolio Manager for Chocolate, women
sumer market is not a simple process: will continue to enjoy confectionary products for vari-
women are diverse and varied, ranging from ous reasons that range from on-the-go snacking to a
teens to mums and even single business- bit of ‘me’ time. “Women are becoming increasingly
women. To identify the trends that are avail- health conscious about what they eat, so we are
able for each cross section, it’s important to starting to see an increase in the number of health
consider where women shop, as well as offerings on the market,” he says. He points to snacks
how they make their purchases. that combine healthy ingredients with chocolate (such as
Behavioural marketing becomes an impor- Snacker bars). “Green and Blacks has just been launched
tant tool in understanding who the cus- in South Africa, offering consumers organic chocolate.
tomer is and how she likes to be marketed Dark chocolate (or Bournville) is considered to be full of
to. “Be aware that women are talking to anti-oxidants, so we are seeing a good growth in this
each other more than ever before, via chat segment of the market,” says Middleton. Cadbury
rooms, forums, blogs, and wikis. Do you promotes the notion of responsible consumption:
encourage interactive conversation by offering they promote the Cadbury Games events, which
your women customers a chance to visit your endorse a healthy and active lifestyle amongst
blog?” says DiVita. She points to the growth schoolchildren.

Dove: real beauty

physical appearance, body weight and shape. Less then
Dove has been campaigning for real beauty by
two out of 10 women report having ‘very high’ self esteem.
researching the notions that impact on womens’
Girls between 15 and 17 are the most likely to report low
perceptions of beauty and by challenging society’s
self-esteem. Saudi Arabian and Mexican women have the
ideal image of what beauty is. Visit www.campaignfor-
highest appearance satisfaction and self-esteem for more information.
 Generally when women feel good about themselves, it
Dove has also driven research into the different
is projected into feeling confident, loved, healthy,
stereotypes of beauty. Carried out across ten countries in 2005, it
energetic and smart (these characteristics are also likely to
built on the findings of Dove’s earlier global study (which exam-
promote their active involvement in daily life)
ined beauty beliefs). The study was carried out because women
 While the majority of women turn to conventional beauty prac-
are increasingly subscribing to unrealistic standards of beauty
tices to enhance their looks, a significant minority are also
that are narrowly focused on physical attributes, rather than
adopting more extreme methods (cosmetic surgery, for exam-
encompassing broader beauty traits.
ple). A quarter of women would consider having plastic surgery
The study threw out some interesting findings and while they
in the future, while only two per cent of women have already
appear to be common sense, it is alarming that Dove had to do
had surgery
such extensive research to bring these trends to light and to get
 One out of 10 women acknowledge eating disorders (bulimia,
the world thinking:
 The majority of women globally believe that beauty is too narrowly
anorexia, etc). While this number seems low, it is often
underreported and in some cultures this behaviour may have
defined by physical attributes, with the exception of China, where
become commonplace
western beauty ideals are a newer phenomenon
 Nine out of every 10 women globally agree that it is difficult for
 The sooner girls become concerned about their overall appear-
ance, body weight and shape, the lower their satisfaction and
them as individuals to feel beautiful when confronted with
self esteem are as adults
today’s beauty ideals. Italian women had the lowest desire for
 Peers, mothers and the media are the most powerful influencers
physical change, while Japanese women, followed by British
with regard to feelings about beauty and body image (men and
women, had the highest desire for physical change
 Some of the features that women would like to change about
boys play a secondary role in influencing these feelings). When
mothers are reported as the primary influencers, other family
themselves include their hair, their skin colour and the shape and
members are likely to play a more significant role and the media
colour of their eyes. In Brazil, where hair texture, length and
play a less significant role. However, when peers (girlfriends) are
colour are indicative of social class and race, long straight hair is
reported as the primary influencers, the media and famous
what women most desire
 Only two out of every 10 women are very satisfied with their overall
individuals play a more significant role.

2 2 MarketingMix I Vol 25 No. 7/8 I 2007


of online shopping and the trend towards rat-

ing products and services, as well as to the Toys for Girls:
increase in word of mouth marketing. SA women are very in touch with their sensuality and their sexuality and are very
“Women are savvier than ever before — peri- curious to try new things, reports Catherine Lauria, founder of For Women Only
od! They seek out information about impor- (the sole South African distributor of a range of pleasure products imported from
tant decisions in every area,” says Julia Germany, Paris, London, New York and San Francisco). Currently FWO supplies The
Raphaely, managing director, Associated Velvet Glove in Parkhurst, Le Boudoir in Fourways and Cake in Cape Town. Lauria
Magazines. Jabour speculates that women are believes that SA women are less conservative, even though almost half of the SA
exposed to more at a younger age and that women surveyed by’s 2007 Female Nation Survey, stated that they
they are therefore also making decisions at a never masturbate. “We base this on the sheer volume of women who are either
younger age. They are leaving home and interested in purchasing sexual products or who have already purchased them from
socialising earlier on. They are educated and us,” she says. Furthermore, judging by Lauria’s experiences at Glamour Parties and
the questions they are answering for them- the FWO service, SA women are becoming more sexually liberated. “A UK-based
selves are a lot deeper. They are earning more publication survey named SA as the number eight consumer of sex toys in the
money at a younger age; marrying later and world! South Africa is therefore in the top ten users of consumer sex toys world-
having children later on in life. Added Value wide – higher than the whole of Europe,” says Lauria. The FWO consumer is a
has found that SA women are increasingly working woman, who is sophisticated and looks after herself and her well being.
seeking to set themselves apart from the rest She spends an average of R700 per purchase. “An average of 120 to 140 women
and asserting their individuality. These women register each month on our website,” says Lauria.

Single women: misunderstood?

According to a Draft FCB survey carried out amongst US advertising and marketing professionals, marketing
executives assume that single women are less educated, more adventuresome and wealthier than they actually
are (MediaPost, 30 April 2007). And they say single women are less educated?! Hmpf!

are also driven by the feeling that there are no All About Women Consumers:
limits to what they can achieve. “For this rea- All About Women Consumers is a guide to understanding the behaviour, attitudes and
son choice is key. Companies need to provide spending habits of today’s women. Published annually, it provides an overview of the
options in order to stay close to South African attitudes, behaviour and preferences of women on a wide range of subjects – from
women,” says Caroline Rait, insight project packaging, sports and technology to arts and entertainment etc. It promises to improve
director, Added Value. the way you market your brand, in this way attracting more women to your products
By drawing on trends that have emerged and services. The new 2007 edition is available for downloading in PDF format or for
from local studies into the buying patterns of purchase in a print edition from EPM Communications (based in New York). Visit
women in the financial services industry, for more information and to place your order.
Farrell concludes that women process infor-
mation differently to men, using both qualita- Psychologies
tive and quantitative criteria to make their Psychologies magazine sold 35 700 copies of its launch issue
decisions. They ask a lot of questions and tend and while the audited results will only be confirmed shortly,
to keep on asking until they understand the editor Mari Lategan is thrilled with the progress of the mag
information thoroughly. The buying process (which is published every alternate month). She is expecting
matters as much as the product itself (women similar results from the second issue. “We recognised a gap
are holistic thinkers and identify with a good in the marketplace and our research proved to be correct…
product that has a comfortable, pleasant sales In South Africa the marketplace is ready for a magazine that
process). Women are also loyal shoppers, for a engages with a unique segment of a sophisticated audience,
host of reasons. They will buy again from the which is traditionally not covered by female consumer titles,”
same source if the experience and the product says Lategan. The magazine’s editorial focuses on self-
are a fit. Women have a great deal to do and accomplishment, better living and relationships. It acknowledges that a woman’s life
too little time to do it in. Consequently, creat- revolves around work, friends and family commitments and it responds to the desire of
ing a sales process that respects their many women to improve their personal lives. Psychologies is targeted at a highly educated
commitments and the multiple hats they wear customer in LSM 10, of an average age of 38 years. This is a savvy consumer, who
goes a long way to creating a long and fruit- understands labels and quality. She is educated and discerning and has a fulfilling career
ful relationship with them. Huet adds that that she juggles with a demanding home life. She seeks a more balanced life.
women also require easy solutions; they are
exposed to international trends, and they Spitz shoes: luxury!
demand fashionable products. They purchase Luxury consumerism started with the Regan administration. Louis Vuitton
according to their lifestyles. helped it along in the 80s, as did American Express’s Platinum card, says
On a slightly different note, consider the Spitz shoes marketing director, Tania Morgan-Weyer. Since 1994 the South African
following innovations: masses have had considerably more access than ever to opportunity and disposable
l German hardware store, Hornbach – income. “There is more conspicuous consumption in an emerging market. There is old
according to a Spiegel Online International luxury and new luxury. Old luxury refers to craftsmanship, heritage and so on (noun),”,
report (May 14 2007) – is offering tiling says Morgan-Weyer. Today we talk about new luxury which is a verb, and is really
courses designed specifically for women. focused on experiences (from shopping experience to experience of wearing or
Their competitors have redesigned their stores using the luxury item). Note that new luxury in no way detracts from the
with the aim of making the shopping environ- craftsmanship and product intrinsics which is so important; these are taken
ment more attractive to female shoppers. as a given or are passport factors. The product extrinsics are what sets
l DaimlerChrysler’s engineers are experiment- brands apart today. The growing importance of the shopping experience
ing with seatbelt designs and handbag plays a significant role in extrinsics.
compartments (having identified that Luxury brands follow natural trends from classes to masses. Once luxury
women constitute the majority of the market brands have become more accessible, it is imperative that they evolve and innovation is critical.
for motor vehicle purchases in the US). Prior to 1994, black women followed trends to fit in. These days there are more con-
Local marketers need to look at South sumers in this group who are more confident and who wish to make an individual
African women within the context of statement, says Morgan-Weyer. Spitz’s customers represent a diverse group of
the family. “It’s key, I think, to remember South African consumers and are especially favoured by Black Diamonds and the
that women are smart, focused, and always emerging sector. “They understand value and will spend a R1000 or more on a
looking for ways to serve – their families, pair of shoes. They have an emotional connection with Spitz and Spitz shoes,” says
their communities, and themselves. They do Morgan-Weyer. She points to the large growth in rural areas which is led by proper-
this to ensure a better future for us all. ty developers developing shopping hubs in the likes of Thoyandou; Rustenburg;
Learn who they are, first. Then, what’s Polokwane; Witbank for example, as well as the townships. “Township markets are
important to them. And market accordingly,” aspirational. You have to express yourself, and show that you’ve arrived. And
suggests DiVita. g one of the first accessible means to do this is fashion,” she says.

2 4 MarketingMix I Vol 25 No. 7/8 I 2007

BLACK DIAMOND by fulvia becatti

Black Diamond II: On the move

South Africa’s Black Diamond group has The complex mindset of the Black Diamond Who is the Black Diamond?
grown by 30 per cent since the first Black has also shifted. This is a future focused market. This is the middle class; black South
Diamond study was conducted. They represent
Africans; wealthy and well-salaried,
2.6 million individuals. Prof John Simpson, The Black Diamond segments:
director, UCT Unilever Institute, reports that in suitable occupations; includes
this market has grown very quickly in a very Mzansi Youth: youth; are acquiring homes and
short space of time and that BEE is one of the  many are new entrants to the middle class
cars; credit worthy. They do not
major driving forces behind its growth. It has  majority live in the townships
increased in value and is worth R180 billion in  contribute to household expenses even give up their culture as they evolve.
spending power, comprising 28 per cent of though most are students There is also a trend towards
SA’s total spend (thanks in part to better  dream big but must achieve now (straddle entrepreneurial activity.
incomes and greater spending power). two worlds)
Researchers estimate that, based on these fig-  under pressure to succeed; have an aware-
ures, Black Diamonds will outspend all of SA ness that their parents made sacrifices so
by the year 2009. The Black Diamond group that they could have better opportunities
majority are not sole bread winners – house-
are the only one of all the population groups  have a preference for local content; free-to-
hold income is supplemented by partners or
to show an increase in buying power. This air TV is popular, as are the Daily Sun and
demonstrates that Black Diamonds have fur- the Sunday Times
 a lot of confidence and drive to succeed,
thered themselves in terms of their careers.  cellphone penetration is high but do not use
although debt is an issue (still acquiring key
Prof Simpson points out that credit has played MXit.
a major role, especially with regard to the pur-
 segment characterised by the phrase proudly
chase of cars and homes (these are also the Start-me Ups:
providing; see their success more closely
two areas of greatest financial debt for this  look like Mzansi Youth but they have more
linked to their children
market). Their average monthly income has cash and are more valuable (have greater
 high incidence of cellphone banking
risen to R1 650 (from R1 550 in 2005). buying power and are acquiring key assets,
However, one has to question whether this ie cars and homes)
average income substantiates their position as  less pressure to send money back home Established:
an emerging middle class, since this average  have realistic dreams and know how to get  this segment is the middle class
 not, as originally thought, older than 49

years (actually around 35 years)
 employ domestic workers and have M-Net

The Black Diamond market has grown very quickly in and DStv in their homes
 very confident
a very short space of time and that BEE is one of the

 interestingly, they are most in touch with the

major driving forces behind its growth. townships

 understand that their success is nothing if

they cannot give back to society/community

 invest in their children, in property and in

income places them between LSM 3 and 4 (is there; self improvement is a priority business
this the suburban middle class?).  quest for financial independence and  enjoy listening to Metro FM, as well as to

In the previous Black Diamond study, mov- freedom from debt stations that broadcast in the vernacular.
ing from the townships to the suburbs was  preference for SABC 1, local news; there is Prof Simpson is adamant that the Black
identified as one of the major aspirations of also a high incidence of newspaper reader- Diamond is not a myth and that the market
this group. This study shows that the Black ship (this is an info hungry market). will drive future growth in South Africa. The
Diamond has indeed achieved what it set out reality is that the Black Diamond has no
to do: 47 per cent now live in the suburbs (up Young Family: problem managing debt or credit (although
from 23 per cent in 2005). Black Diamonds  one of the biggest segments within the young families face a greater struggle than
take pride in their homes, which have become market (both in terms of value and numbers) most). As far as future growth is concerned,
an important part of an overall status symbol:  greatest number are single mothers who are researchers suggest that there will not be much
they spend money on decor and home goods. under a great deal of pressure (although the change in terms of the segment profiles. 

Vol 25 No. 7/8 I 2007 I MarketingMix 2 5

by michelle sturman CENTRAL SA INTELLIGENCE

What you didn’t know... MEDIA IN THE CENTRAL SA REGION

RAMS June 07: Free State: hours spent listening:
The Central SA region is now officially an Bloemfontein and the region. There is a 5h13 mins per day. Highest time spent listening
entrenched and fully formed brand, which is boom here and probably more disposable across all provinces – highest.
used by our largest corporate companies to income than in Johannesburg, since the North West 4h 34
express the area that they cover. Started by spend here goes much further,” says René Northern Cape: 3h 52
OFM a few years ago to convey its large foot- Koen, business development manager, OFM
print across the Free State, North West Mahareng Publishers (a joint venture with • 7 Days: June 07: 578 000
Province and Northern Cape, it covers six Caxton and OFM, publisher of July 06: 470 000
metropoles, including the Vaal region. and GetIt on license). She offers this as some- • Ave Mon-Fri: June 07 358 000
The good news is that the Central SA one who has recently moved from July 06: 318 000
region is expanding, with plenty of develop- Johannesburg to Bloemfontein. Alna Retief, OFM Demographics
ment taking place, along with a growing director of local glossy magazine, Passi, Age: 16-49: 81%
tourist trade and enough extremely wealthy agrees with Koen, saying that there is less LSM 4-6: 31%
inhabitants to keep even the biggest and LSM 7-10: 57%
most sophisticated brands happy. Male: 51%
White: 46%
Black: 36%
Coloured 18%
Courtesy of Ryno Cloete

Income: R14 000+: 14%

R8 000-R13 999: 33%
R3 000-R7 999: 26%
Free State: 48%
stress, a lot of opportunity and the same Northern Cape: 27%
money – the only aspect that could be North West: 20%
Courtesy of Hein von Hörsten

improved is the nightlife. Vaal Triangle: 3%

Having said this, there are now six casinos Other: 2%
in the region, including two that have AMPS 2006
opened within the last two years: Windmill OFM ave age: 37
Casino just outside of Bloemfontein and the Ave HHI: R8 392
However, there is still a perception problem newly opened Frontier Inn & Casino in
regarding the region – one that needs to be Bethlehem. The Frontier Inn opened its doors 10 benefits of OFM
put to rest permanently. While the major in December last year and the total capital  No. 1 radio station in central South Africa.
cities are not vast metropolises, or tourist investment by operator Peermont Global was  The leader in delivering the affluent market
traps like Cape Town, and while they may not R104 million. The Windmill Casino opened in in central South Africa.
have the frenetic pace of Johannesburg or October 2005. According to the Casino  OFM has an intimate understanding of what
the laid-back attitude of Durban, they are Association of South Africa, it has 855 makes Central South Africa tick.
also not the backwater towns that a lot of employees and has had over one million  Largest regional footprint in South Africa.
media planners and marketers believe them visitors so far.  The breadbasket and mining powerhouse of
to be. “There is huge growth taking place in South Africa.
the region in terms of social structure, Development  First point of reference for up to the minute
construction, business, etc,” says Nick The pace of development is not the same news, traffic, weather and sport.
Efstathiou, marketing manager, OFM, “and across the whole of the Central SA region,  Has become synonymous with the
it’s developing along with the rest of the community through its charity work and
country.” These perceptions are extremely delivery of the largest events and festivals in
unlikely to change, unless, of course, you live Central South Africa eg Nampo, Aardklop,
in the Central SA region or bother to take a Cherry Festival.
trip to the area to look around and observe  The station is committed to advertisers’ success
the pace of the growth and economic and is the creative leader in innovative ideas
development for yourself. This represents a that work in this market.
problem as advertising budgets are being  Highest radio penetration in central South
decided outside of the region’s borders. Africa.
“There are many misconceptions about  Lowest cost per thousand ratio.
Source: United Stations

2 6 MarketingMix I Vol 25 No. 7/8 I 2007

CENTRAL SA INTELLIGENCE Free State Community Stations RAMS
Kovsie FM 97.0 18 000
Lentswe Community Radio 7 000
Mosupatsela FM Stereo 101 000
Naledi Community Radio Station 27 000
especially as Bloemfontein is the only city that moment. We have a comprehensive funding Overvaal Stereo 96.1 fm 11 000
will host the 2010 FIFA World Cup matches. offer on the table which depends on the Qwa-Qwa Radio 135 000
However, all is not lost for the other areas. In outcome of the Biofuels legislation, which is Radio Panorama 107.6 FM 21 000
Kimberley, De Beers has pumped more than expected soon.” The maize to ethanol plant is Radio Rosestad 100.6 fm 31 000
R50 million into developing the area around expected to have a positive impact on the Setsoto FM Stereo 16 000
the Big Hole into a premier tourist attraction, region. Ethanol Africa will draw resources Total Community – Free State 379 000
including the Mining Museum. Protea Hotels from the local community, from the begin-
will also build a new hotel to accommodate ning of the construction stage all the way Any magazine – penetration by
the expected tourists, once the De Beers through to finding workers and drivers. They Province AMPS 2006
development is promoted as a major tourist will also employ local farmers once the plant North West: 28.1
attraction. In addition, national government is up and running. Other plus points include Northern Cape: 43.9
is expected to invest over R300bn in economic the introduction of out-of-town workers Free State: 28.8
growth in Kimberley and its surrounds (Sol (who will require accommodation), traveling Any newspaper – penetration by province
Plaatje municipality), which will include with the vehicles that will be required to AMPS 2006
jewellery, biofuels and livestock projects. New transport the maize and fuel to and from the North West: 38.3
shopping malls (and extensions to existing plant. The local municipality will benefit from Northern Cape: 37.3
malls) across the region are encouraging the water and electricity that are required to Free State: 32.6
consumer spend, especially in areas that run the plant, as well as from PAYE. The
previously lacked large shopping outlets, maize needed for the plant’s operation will Community/Free Newspapers
including the Diamond Pavilion in Kimberley, impact positively on local farmers and will Bloem Nuus 41 970 (Jan-March 2007 ABC)
Mooi rivier mall in Potchestroom, Flamond Express 49 727 (Jan-March 2007 ABC)
Walk in Klerksdorp and the Vaal Mall. Goudveld Forum 22 869 (Jan-March 2007 ABC)
Improvements to The Loch Logan shopping Issue, Eastern Free State 17 900 (Jan-March 2007 ABC)
mall development at the waterfront in Kroonnuus 8 229 (Jan-March 2007 ABC)
Courtesy of Grain SA

Bloemfontein are nearing completion, with Lentswe 12 369 (Jan-March 2007 ABC)
added shop floor, extended parking facilities Maluti 7 535 (Jan-March 2007 ABC)
and the beautification of the lake. Anchor tenants Midweek Rekord 16 604 (Jan-March 2007 ABC)
include Edgars, Woolworths, Stuttafords, Mr reclaim fallow land. The plant is to be located Noordkaap 21 396 (Jan-March 2007 ABC)
Price, Pick ’n Pay and Truworths. in a rural area, so the benefits to that com- Noordwes Gazette 29 786 (Jan-March 2007 ABC)
munity should be significant. Ons Stad 36 445 (Jan-March 2007 ABC)
The local Free State government is also look- QwaQwa News 5 019 (Jan-March 2007 ABC)
ing at incentive schemes that include a small Sasolberg Ster 11 561 (Jan-March 2007 ABC)
to medium manufacturing development pro- Vista 35 286 (Jan-March 2007 ABC)
gramme, an export marketing and investment Noord-Vrystaat 7 452 (Jan-March 2007 ABC)
assistance scheme – and even exhibition assis-
Courtesy of Hein von Hörsten

tance – to boost the economy of the province. Other newspapers and magazines
Perceptions of the Central SA region run Homemaker’s Fair Bloemfontein
from ‘flat and full of farmers’ to ‘boring and 45 000 (Jan-March 2007 ABC)
nothing ever happens.’ Residents would beg GetIt 15 000
There is a lot more happening around the to differ. This ‘bread basket’ produces over 70 My Week Bloemfontein 24 676 (Jan-March 2007 ABC)
region that is encouraging development. This per cent of the country’s grain and the region OFMWheels 20 000
includes: a new golf estate in Ficksburg; The produces most of our cherries, onions and Passi 8 000
Stafford’s Hill Gold and Polo Estate (which asparagus, amongst many other food products. Heartlands
will open shortly); a new hotel at the It also breeds sheep and produces wool and Diamond Fields
Bloemfontein Zoo; a golf and sports estate in it has a burgeoning floriculture, as well as a Advertiser (daily newspaper) 10 105 Jan-March
Virginia; a tourism centre in Welkom and a wine industry (including Jacobsdal and 2007 (ABC)
hydro in Bethlehem. Parys is, by all accounts, Ghoya). The region produces the majority of Volksblad (daily newspaper) 28 708 (Jan-March
becoming a hip and happening place to be, the country’s diamonds, gold, uranium and 2007 ABC)
given the number of South African celebrities bentonite and is host to Sasolburg, which Volksblad weekend 24 381 (Jan-March 2007 ABC)
who are settling there. provides petrochemicals. There are heritage Sondag – Sunday Afrikaans tabloid – figures not
The establishment of an ethanol plant in routes, a national park and a country – yet available
Bothaville is currently on hold due to legislation, Lesotho – within its borders. Festivals include Noordwes Beeld (including
according to Annelie Coleman, communication the Ficksburg Cherry Festival, Gariep arts Klerksorp and Potchefstroom)
manager for Ethanol Africa (the company in Festival, NAMPO Harvest Day, Aardklop with a print order of 20 000.
charge of the plant). “We are in limbo at the Festival and Manguang Arts and Cultural ToGoTo 10 000 copies distributed per quarter

2 8 MarketingMix I Vol 25 No. 7/8 I 2007


Festival, amongst many others. Still bored? and 2003 Cricket World Cup.)
The region also attracts a lot of wealth. The Free State Department of Tourism, Radio listening per day
“During 2005, 197 planes landed on our Environmental and Economic Affairs is also (TGI 2006A)
airstrip for NAMPO and for the last three backing the F1 Powerboat Grand Prix Series 35% don’t listen to the radio
years the airstrip has been under air traffic at the Bloemhof Dam until 2009, as well as TV viewing per day (TGI 2006A)
control,” says Johan Loxton, Grain SA. All of the 2007 SA Games which will be held in 57% don’t watch TV
the region’s festivals see tens of thousands of Bloemfontein in September. Language preference for reading
visitors (the last NAMPO festival drew over magazines (FutureFact 2006)
64 000 people in just four days). This wealth Media English 54%; Afrikaans 23%; 1% Nguni;
is spreading as economic development takes With the general increase in development Sotho 21%
hold. “The up and coming black middle class and prosperity in the region, it is no surprise
is increasing and becoming richer. The that there has been an increase in available Language preference for reading
growth in the townships matches that of media. Interestingly (and perhaps not surprisingly), newspapers (FutureFact 2006)
townships in other parts of the country. The Marketing Mix can’t find any major/national English 56%; Afrikaans 22%; Nguni 1%;
townships in Bloemfontein, for example, have media or advertising agencies with offices Sotho 18%
shopping malls that sport Internet cafes, based in the Central SA region. An oversight? Language preference for watching
video stores etc, says Efstathiou. Maybe – but it should concern marketers that local programmes on TV (FutureFact
a wealthy area, with consumers who are will- 2006)
Sport ing to spend, is being overlooked. English 35%; Afrikaans 21%; Nguni 6%;
Sport of all kinds is hugely popular in the OFM is still the dominant commercial radio Sotho 37%
region, while rugby and cricket are the station and its drive to promote the Central Preferred language for TV advertising
favourites. OFM now sponsors all the major SA region has paid off. The station has now (FutureFact 206)
rugby and cricket teams across the Central SA completed the implementation of its rebrand- English 42%; Afrikaans 21%; Nguni 6%;
region. “We recently included the Impala ing strategy and has recently introduced a Sotho 29%
Leopards from Potchefstroom in the teams new DJ line-up that includes the introduction Preferred language for radio
that we sponsor, so we now have every single of Kevin Savage as both a presenter and a advertising (FutureFact 206)
rugby and cricket team in the region,” says mentor. In keeping up with the demands of English 18%; Afrikaans 21%; Nguni 6%;
Efstathiou. (Cheetahs and Super 14 Cheetahs, its huge footprint, its office in Potchefstroom Sotho 29%
Griquas and Griffons are the others). (which opened in November 2005) now Preferred language for print
For the next couple of years leading up to sports three sales people. “Our long-term advertising (FutureFact 206)
the 2010 FIFA World Cup, Bloemfontein in plan in the area is to build a studio from English 50%; Afrikaans 20%; Nguni 5%;
particular will benefit from massive invest- which to broadcast. We now have approxi- Sotho 22%
ment and this will filter out to the rest of the mately 109 000 listeners, so while the growth Outdoor advertising recall %
area (eg accommodation will need to be is slow, it is taking place,” says Efstathiou. reach (TGI 2006A)
spread out in order to cope with the The station’s innovation is also an impor- Large boards at roadside or on
demand). When taking a look at the official tant part of its success in the region. In fact, buildings 60%
Manguang notice regarding the preparations OFM recently implemented a world first: Poster at supermarkets 58%
for the 2010 FIFA World Cup, the effort being WOMF™ (Word Of Mouth Forum – Small poster sites on the street
invested in making it comparable to SA’s In essence, this is a 51%
other major cities is apparent. Some of the forum in which consumers can exchange Poster in shopping centres 51%
items on the agenda include the upgrading opinions and make comments regarding local Outdoor advertising see in P7D
of the Free State stadium and the transporta- products, services etc. It provides the perfect (AMPS 2005/6)
tion network, as well as the upgrading of forum for clients to respond directly to Store ads 82%
accommodation and the airport. These comments from consumers. WOMF is the Billboards 73%
efforts include the beautification of the city, second biggest blog in the region with 3 500 Minibus taxis 60%
proper tourism guidance and collaborating regulars and 400 000 page reviews a month. Top magazines ave issue readership
with the Free State Tourism authority and SA “Advertising is effective because it is based on (AMPS 2005/6)
Tourism to market the region. A regulated relevance, both geographically and timing of Huisgenoot 9%; LSM 8-10 45%
home-stay programme will be implemented the message,” says Efstathiou. It has already Jet Club 8%; LSM 5-7 10%;
in time for the tournament to cope with the attracted over R1 million in advertising in just LSM 8-10 12%
accommodation needs. This will include three months. Bona 7%; LSM 5-7 10%
Maseru, Kimberley, Welkom and Ladybrand. In addition to OFM sponsoring every major Rapport Tydskrif 18% LSM 8-10
(Don’t forget that Bloem has already held rugby and cricket team, it also sponsors live Sarie 15% LSM 8-10
major sporting tournaments, including the 95 events. Recently it has sponsored sell out Rooi Rose 15% LSM 8-10
Rugby World Cup, 96 African Cup of Nations concerts for Michael Bolton, Westlife, Ronan Vroukeur 12% LSM 8-10

3 0 MarketingMix I Vol 25 No. 7/8 I 2007


Top newspapers ave issue readership In the Free State, the population consists of a
(AMPS 2005/6) majority of Africans (over 80 per cent), fol-
Daily Sun 11%; LSM 5-7 17% lowed by whites and a small percentage of
Sunday Sun 10%; LSM 5-7 16% coloureds. Sesotho is the dominant mother
City Press 10%; LSM 5-7 16% tongue, followed by Afrikaans and then
Soccer Laduma 8%; LSM 5-7 12% Keating and Will Young. Its charity campaigns isiXhosa, Setswana, isiZulu and English.
Rapport 30% LSM 8-10 do exceptionally well. A recent event with Afrikaans is the more dominant language
Die Volksblad 20% LSM 8-10 OUTsurance saw 14 000 blankets being donat- amongst whites and coloureds. “Agencies need
Volksblad (Sat) 17% LSM 8-10 ed in just one day. “We engage in aggressive to acknowledge what’s going on here, as
TV stations viewership yesterday marketing, especially as there has been a slight they’re missing a huge market opportunity:
(AMPS 2005/6) change in our audience. We have the largest clothing designers, property developers and
SABC 1 56%; LSM 5-7 75%; LSM 1-4 47% black audience ever and we’ve managed to tap media like us are popping up all over the
SABC 2 43%; LSM 8-10 69%; LSM 5-7 52% into the youth market during the nighttime region,” says Retief. She also notes that adver-
eTV 38%; LSM 5-7 52%; LSM 8-10 47% shows,” says Efstathiou. tising in Afrikaans should be a given. The
SABC 3 17%; LSM 8-10 35% OFM has also branched out into publishing Afrikaans Sunday tabloid, Sondag (Media24’s
M-Net 4%; LSM 8-10 21% with OFMWheels, an online and print car sales latest newspaper), launched recently and
Any DStv 3%; LSM 8-10 22% directory. “OFMWheels is now in the whole according to Mike Vink, the paper’s editor,
Top radio stations listenership yesterday region and gets bigger with each issue. It is now sales have been satisfactory so far – and it’s
(AMPS 2005/6) at 88 pages: when it hits 102 pages we’ll split it not even available in the whole of the Free
Lesedi FM 68%; LSM 1-4 77%; into zones to keep it affordable for advertisers,” State yet.
LSM 5-7 75% says Koen. The Website attracts 65 000 unique Beeld has recently launched its latest commu-
Any community 12% visitors a month (2.8 million hits). nity based Noordwes Beeld, supplement, this
OFM 9%; LSM 8-10 44% Even though OFM revenue from the national time in the North West Province, which covers
RSG 23% LSM 8-10 market has increased, the region is still regarded as parts of the Central SA region and Klerksdorp and
Brands and purchasing habits a ‘secondary market.’ “Advertisers that use OFM Potchefstroom in particular. This is only the sec-
(FutureFact 2006) do see a huge benefit in reaching this region but ond region specific insert after Mpumalanga
Often buy no name or supermarkets’ own it always comes after Gauteng, W. Cape and KZN Beeld. The insert will appear every Friday in Beeld.
brands 57% on the national buying list. “We often have to Although other printed media are available
Find these days having to buy cheaper remind national advertisers that they have a pres- in the region, it is still easy to hit the right tar-
brands rather than well-known big name ence in the Central SA region,” says Rivak Bunce, get market as it tends to be more specialised.
brands 48% managing director, United Stations, “and that lis- Passi, for example, is aimed at creating pride in
Buy imported good as they are cheaper teners do have money to spend.” the Central SA region. The magazine is
and good quality 46% This ‘secondary market’ perception may also distributed nationally and Retief is currently
Feeling towards brands and advertising have an impact on other local media such as applying for ABC certification. “We’re going
(FutureFact 2006) magazines, despite the backing of major media bi-monthly from 2008 and the print run for
More likely to buy brands that see or hear houses. Both GetIt and MyWeek recently our fourth edition has gone up to 15 000
advertised 55% launched in Bloemfontein and while both are copies,” says Retief. While Retief has
If a company sponsors a sport, more likely doing exceptionally well, national advertising is national advertisers in the magazine, she
to support them by buying products 47% still difficult to pin down. Susna Stemmet, urges media planners in particular to
Feeling towards brands and services advertising manager for MyWeek investigate the region’s media. “People tend
(FutureFact 2006) Bloemfontein, says that in spite of the fact that to forget about Central SA when putting
Brand name most important thing when they are doing well, they only have one national their media plans together. This is a vast
buying a product 52% advertiser. On the other hand, the magazine is market and it’s easy to hit the right target
Brand loyal and stick to well-known a community magazine that is geared towards audience,” agrees Stemmet.
brands and shops that are known and local advertisers. The MyWeek team is investi- Another local magazine that is making
trusted 49% gating new zones. waves nationally is Heartlands, a Bloemfontein-
Would still be interested in a good product Caxton’s local community magazine is also based travel lifestyle magazine that features
or service even if the marketing is not very enjoying success. “We occasionally get national leisure pursuits that are not necessarily
good 56% ads from our head office in Joburg. At the covered by other travel titles. These include
Believe that house brands / quality is as moment we’re concentrating on the flying and adventure racing, as well as a focus
good as big well-known brands 65% Bloemfontein edition, although we are expecting on culture and iconic journeys. Heartlands is
Prefer companies that make sure that new that new editions will be launched,” says Koen. also focusing on the black travel market and
products or services are perfect before they The population profile of any area is impor- over half of the content is concentrated on
are launched 68% tant in order for a campaign to be successful. Central SA destinations. g

Vol 25 No. 7/8 I 2007 I MarketingMix 3 1

by michele venter-davies EXPERT OPINION

How long can your brand manage?

The debate about whether or not marketing sending out samples to everyone’ (superb
is truly a profession has raged for decades. By targeting and logistics… at least the Post
definition a profession is an occupation that Office will benefit…).
requires specialist training. While South Africa And these are the people that you trust with
has many world-renowned marketing your brand? Surely marketing managers have a
specialists within its borders, the question that responsibility to be just as ruthless and
one needs to ask is: ‘Is this a species that is methodical in evaluating all potential and
heading for extinction?’ existing personnel – including their qualifications
What is specialist training? Although one – as they would be if they were evaluating
would assume that it involves training by a advertising or media campaigns? Marketing
specialist, this is not always the case. A quick will only become a respected profession if
survey revealed that a significant number of professionalism is entrenched throughout the
marketing lecturers have no practical or industry training and practicing process.

experience. They have never been given the The following suggest some possible South
task of actually practicing what they preach. African marketing profession requirements:
So just how specialised are these ‘trainers There must surely l Educators who have solid and genuine

of specialists’? marketing qualifications, combined with

At the opposite end of the spectrum we
come a time when the practical industry experience
have the ‘industry specialists’ with no knowl- proliferation of competitive l Educational institutions that have a policy

edge of educational practices or needs, who of transparency when it comes to the

for various reasons – ranging from retrenchment offerings starts to erode advertising of their courses and the
to retirement to genuine philanthropy – ‘train’ profiling of their lecturers and trainers
the consumer loyalty that
these budding specialists, telling obsolete l Marketing managers who demand

stories of ‘when we’ without theoretical is currently masking poor excellence from institutions that offer

foundation or contextualisation. Add to the marketing qualifications
equation the flood of educators in possession
marketing practices. l Personnel agencies who are prepared to

of impressive qualifications from institutions in verify qualifications

exotic locations (both in Africa and overseas) l Human resources managers who vet

– and you have a recipe for interesting times potential employees thoroughly, both in
ahead. Exactly who is training your aspira- unlikely that you would trust your ‘brand terms of their qualifications and the
tional ‘specialists’? manager’ with advertising your grandmother’s credentials of the institutions they have
Also bear in mind that jubilation at commode in the Classifieds! How would you attended.
improved Matric pass rates must be tempered rate the following exam paper strategies written Employees who recognise the need for
by the fact that there is a 35 per cent pass by esteemed and highly paid brand managers ongoing specialist training as a part of the
requirement. In real terms this means that an with at least two years of industry experience? passion to become truly professional and not
English matriculant is able to spell, read and l ‘Target the male market for sanitary only as a path to greater financial earnings.
write every third word correctly. Educators products (with wings) as they are currently What remains so fascinating is that big
now have a more difficult job than ever non-users’ (don’t forget to use blue packag- name brands DO survive. While they may do
before, increasing the need for them to be ing for boys and pink packaging for girls…) so by default, they nevertheless appear to
suitably qualified and to have the necessary l ‘Offer the CEO of a financial institution a remain robust and profitable. However, how
practical experience to facilitate ‘outcomes “free cup of coffee” if he’ll sponsor your long can they continue to do so – and how
based’ training methodologies. sports team to compete internationally’ much more profitable would they be if they
Those of us who are in the fortunate (poor man will be bowled over by this were managed by true professionals? There
position of being able to assess marketing generosity…) must surely come a time when the proliferation
knowledge and ability from ‘the inside out’ as l ‘Distribute petrol at schools as children will of competitive offerings starts to erode the
it were, are constantly in awe of organisations become your market of the future’ (should consumer loyalty that is currently masking
who manage to survive in spite of the limitations one use paper cups or a browser, poor marketing practices. Is your brand
of their marketing ‘professionals.’ One is led I wonder…) manager up to the task? g
to believe that these individuals (who are l ‘Advertise black hair care products on RSG

entrusted with budgets of millions and to break down any remaining barriers Michele Venter-Davies
rewarded with six figure salaries and German created by Apartheid’ (now why didn’t the
faculty head: Marketing and Advertising
luxury vehicles) are well trained. politicians think of that one…?) AAA School, (011) 781 2772
Think again! If you knew what we know, it is l ‘Promote industrial sewing machines by

3 2 MarketingMix I Vol 25 No. 7/8 I 2007

EXPERT OPINION by mike glover

Make the market spend count...

Advertising and marketing budgets are campaign? A major consideration – frequently
often tightly controlled by financial directors overlooked – is the target market. Accurate
who are reluctant to dip into them – especially target market identification is critical. Take a
since the notion exists that only 50 per cent of male fragrance product, for example. Would
advertising works. Understandably, they want the target be the male who is wearing the
to invest in marketing that yields measurable product, or the female, who according to
results and turns advertising spend into sales, research, usually makes the purchasing
in this way making a profit. decisions? Typically, the planning of this
Advertising agencies are faced with the type of campaign does not support the
challenge of delivering on this promise in an relevant research.
environment fraught with audience fragmentation Furthermore, while we accept that a target
and media proliferation. There are frequently market of adults in the LSM 4–7 range is used
many options to choose from and because of to define and target the mass market, their
the need for accountability, media planners shopping preferences and buying power differ
often prefer to stick to a tried and tested formula enormously, with household income differentials
which has been used for the last decade. Some ranging from R1 977 to R6 658. Therefore it

agencies simply resort to changing the dates should not be assumed that what works for
on the media schedule, applying the principle one product will also work for another.
that if it worked last year, it should also work
Although the principles The practice of establishing an accurate
this year. of measurable database for the purposes of mobile marketing
An alternative would be for the media planner is starting to gain some momentum. How
in question (who is often quite young) to marketing may sound does one move from a mass communication
approach the client – eg the marketing director strategy, to developing a one-to-one strategy?
simple, unless
of a multi-national corporation – with a request Marketers are starting to recognise the value of
for a million rand budget based on a ‘gut-feel’ advertisers use an developing an interactive solution; one that
that a particular idea will work and drive sales. elicits a response to an offer for the purpose of
However, in most cases, clients reject (out of
approach which making contact with the target market. The
fear) what they consider to be a risky approach, renders the advertising response to a one-to-one strategy can now be
even if the media planner has conducted the measured with a database of consenting,
relevant research to justify the proposal. rand accountable, willing consumers. The above-the-line campaign
Unless clients are prepared to entertain a they will be left dealing and justification of spend is further reinforced
measure of calculated risk, they end up being as it builds brand equity and drives volumes.
followers and not leaders. As a consequence, with very nervous The advertising environment is evolving and
their marketing budgets are whittled away on advertisers need to become more creative and
clients – and the cycle
average campaigns, which generally result in innovative in order to meet clients’ overall
their products or brands getting lost in the of ineffectual objectives. These are usually simple: driving
onslaught of standard advertising clutter. sales. However, when agency margins are
advertising spend

When advertisers persist in taking the tradi- driven down, advertisers have little latitude
tional advertising route, consumers have the task will continue. when it comes to applying creative and original
of recalling and differentiating one brand from thinking. While this may present a challenge, it
another. For example, if there are eight shampoo also provides them with a goal to aspire to.
advertisements fighting for the same prime-time Although the principles of measurable
slot on TV, it becomes increasingly difficult to marketing may sound simple, unless advertisers
create a point of difference between them. use an approach which renders the advertising
Think about the corner cafe owner who has business a week later and measure the results rand accountable, they will be left dealing with
relied solely on passing trade and word of based on improved trade? An increase in sales very nervous clients – and the cycle of ineffectual
mouth to grow his business. Consider what translates into a success story and clients thrive advertising spend will continue. g
would happen if a local radio station were to on opportunities such as these as it gives them
Mike Glover
approach him, establish how many oranges he a sense of money well spent. Success stories
managing director, Red Cherry
sold in a week and offer to do a live read, are what marketers need in order to stimulate
083 601 3287
selling oranges on a special promotion. What if change and reduce fear.
the radio station were then to revisit the How does one measure a successful

Vol 25 No. 7/8 I 2007 I MarketingMix 3 3

by fulvia becatti OUTDOOR MEDIA

Outdoor never looked so good

Outdoor advertising is showing great
promise and growth the world over. In South
Africa it is worth over R1 billion (between
R97-R98 million a month), according to Ken
McArthur, managing director, Nielsen Media
Research SA. “The medium has grown by
139 per cent over the last five years,” says
Lyn Jones, marketing services manager, Clear
Channel Independent. “In January 2006
outdoor advertising contributed four per cent
of total adspend. This year the figure stands
at 5.2 per cent.”
The proliferation of billboards over the
past five years is one sign of the growth of
outdoor. “More boards to sell means more
money in the bank. The advent of citilites and
building wraps has meant that media owners
can now demand a greater share of the
media budget,” says Chris Botha, senior tracks participants’ travel patterns as well as Nedbank powers
media strategist, The MediaShop, their demographics and the data is down- Alexandra school:
Johannesburg. “While the inventory for loaded to a geographical map that is related Nedbank’s solar panel billboard (which won
electronic media such as TV is being restricted to geocoded outdoor sites. The tool then ad agency, Net#work BBDO, a Grand Prix at
by ICASA, the inventory for outdoor has been allows for the data to be processed and the International Cannes Advertising
expanded to include everything from the JSE determines the direction and speed of partici- Festival) is the first of its kind in the world.
building to Tannie Sannie’s front garden pants’ travels, as well as the frequency with The billboard is equipped with solar panels
wall.” It seems that there are not enough which they pass particular billboards. that provide electricity for the kitchen of
sites to meet the demand and experts are During 2006 the study covered Gauteng the MC Weiler School in Alexandra
urging companies to become more creative and KwaZulu Natal. It covers the Eastern and Township (alleviating the school’s electricity
in their use of scrolling boards, for example, Western Cape during 2007 and it will cover bills by over R2 000 a month). “The design
to maximise the use of single sites. Botha the Free State, Northern Cape and is a 4.5x18 metre billboard that can take
suggests that media owners need to start Mpumalanga in 2008. “Even though the the added load of the solar panels and bat-
charging more for prime sites to counter feedback thus far has been positive, one teries and also fit into the limited space
the growing clutter and Mark Mac Donnell, must remember that it is still early days and that is available at the school,” says Clinton
sales and marketing director, Primedia that the offering will be improved and Mitri, chief operations officer, Net#work
Outdoor, believes that this is actually where refined as time goes by,” says Haupt. He adds BBDO. “Think of the premise that you can’t
things are headed. that the industry will decide whether to teach a hungry child and imagine what
The recent development of the Npod extend the SAARF contract later this year. could be done if every billboard could make
(produced by ACNielsen) and its Gross The device addresses issues of measurement a real difference like this at a brand level,”
Ratings Points (GRP) system, may further and accountability and allows clients and says Mitri. He refers to Millward Brown
encourage growth. “About six years ago agencies to measure ROI more effectively. research, which reports brand equity
SAARF started looking at suitable ways of “For the first time you have a situation in growth in the mass market, a sector which
measuring outdoor, as it was clear that a which you can calculate the reach and Nedbank previously ignored. In this
measurement technique was needed which frequency of billboards,” says McArthur. “This instance Nedbank’s brand health is very
would bring it in line with other traditional is something we have not been able to do strong at a community level, given that it is
media,” says Paul Haupt, CEO, SAARF. In before with regard to outdoor media. These making a difference to the lives of over 1
2003 SAARF worked together with ACNielsen media can now compete on a level that is 000 children at the school on a daily basis.
to pilot the Npod in Johannesburg. The equivalent to other mass media, like TV and While sites have been identified for a
current cost of the survey is around R3 million radio.” Botha believes that while the Npod is countrywide rollout, getting the necessary
per annum. The cellphone sized device is still being refined, it will make outdoor approvals has turned out to be a rather
equipped with GPS and is carried by planning a far more scientific process in the slow process. The billboard was designed
participants during their daily comings and future; one that makes the demographic by Graphic Wizard and Red Dot and the
goings for a period of ten days. The Npod profiling of billboards possible. “It will place solar panels were provided by Lumi Tech.

3 4 MarketingMix I Vol 25 No. 7/8 I 2007


the outdoor advertising in companies’ plan- processing. The release date has not yet been
ning systems on a par with other traditional confirmed.
media, enabling it to compete more effectively All of this bodes well for the outdoor
for advertising spend,” says Haupt. medium, although the industry has yet to
According to a report published on shrug off several major issues. In recent years (14 April 2007), the it has been heavily criticised with regard to
early SAARF electronic outdoor results found the monopoly that appeared to ‘own’ it and
that Gauteng adults see an average of 18 outdoor the resulting lack of competition. This particular
sites between 4pm-6pm every day. In KZN issue seems to have been addressed with the
adults see 16 sites per day. In both these entry of new players that include a few smaller,
provinces, the average number of daily board black owned media agencies. “I believe that
impressions is 29 000 (gantries top the list, there is a healthy amount of competition in
followed by unipoles, super signs, pole ads the industry at present. It is highly competitive
and bus shelters, in that order). According to and this impacts positively on creativity and
SAARF Technical Support Manager, Michelle innovation,” says Mac Donnell. Botha
Boehme, the formal release of results echoes the sentiment: “Nowadays we are
(originally scheduled for August) has been bombarded by smaller players, each with a
delayed, while SAARF works with contractors few sites to sell. Although the industry is still
and agencies to verify site data and ensure ruled by a few major players, I wouldn’t call it
that no anomalies arise during the data a monopoly.”
Another major issue that has placed the
outdoor industry in a negative light is the
SAMOAC unprofessional conduct of some companies.
In 1998 the Department of Transport and the Department of Environmental Affairs and “For as long as I can remember outdoor has
Tourism joined forces to develop the South African Manual on Outdoor Advertising been the ‘wild west’ for media types: it has
Control (SAMOAC). While this document serves as a guideline and framework that con- plenty of characters and there is hardly any
trolling authorities and the Outdoor advertising industry may refer to, it is not, as Mac evidence that the ‘law’ makes much of a
Donnell points out, a by-law. “It was – and still is – a guideline document. Although a difference,” says Gordon Patterson, managing
number of the by-laws of various councils are based on the broad framework that is out- director, Starcom. It seems that much of the
lined in SAMOAC, there is no single by-law that governs Outdoor advertising. It is up to bad behaviour, born of impatience with
each local authority to adopt its own set of Outdoor advertising by-laws,” he says. As indi- procedures and protocols, was related to the
cated in the foreword of the SAMOAC document, the development of new advertising growing demand for impactful sites in an
techniques and methods require continual updating. “Moving away from SAMOAC, it is ever more cluttered environment. Botha
important to note that the SA National Roads Agency have regulations in place regarding believes that illegal billboards (which are
the control of advertising that is visible from national roads. These regulations are appli- traditionally placed in great locations) tend to
cable throughout the country, as national roads transverse the various provincial bound- sell out quickly and this forces media owners
aries and are found in both urban and rural areas,” says Mac Donnell. “It is however to look at grey sites for alternative real estate.
important to note that these regulations are only applicable to national roads and not to “In some instances where the approval
roads that are under the jurisdiction of a local or provincial authority.” process is delayed, industry players have been
known to become impatient and to create
sites without having obtained all three
components of the necessary approval. These
Out Of Home Media South Africa (OHMSA) Awards 2007 are: landlord approval; council approval and
OHMSA has introduced an award for the best creative advertising designs. SA National Roads Agency (SANRA)
There are eight categories: approval,” says Mac Donnell. In a nutshell,
• Overall winner the bad behaviour of a few has resulted in
• Billboards (grand format, scrollers, campaign media, wall murals, building wraps, the introduction of increasingly restrictive
• rank/station branding, etc) bylaws, which are almost prohibitive of the
• Internally illuminated billboards medium. “The new legislation requires that
• Electronic billboards (digital, electronic and plasma screens) new site applications are subjected to the
• Airport advertising (external, internal and promotional displays) same rigorous procedures that come into
• Retail/street furniture (Adlites, bus or taxi shelters, bins, benches, etc) play when one is applying for a site for a new
• Mobile media (buses, taxis, trailers, etc) house,” says Jones. This means that the
• Ambient media (shopping centre displays, airborne banners, bikes, kiosks, etc). development of sites is simply not keeping up
Visit for more information. with the demand for sites. “However, the
unscrupulous operators would not survive

Vol 25 No. 7/8 I 2007 I MarketingMix 3 5


without the support of marketers who know the digital formats. “These are extremely Innovation
full well that the sites they have bought do expensive to install and given the limited Clear Channel Outdoor’s Spectacolor
not comply with the regulations. Authorities periods that councils are approving, it is Division (USA) will launch one of the
are in turn drafting legislation that takes into not yet feasible to grow this form in the industry’s first high-definition digital
account the illegal activities of these operators. medium,” says Holley. billboards in New York’s Time Square.
In doing so they are drawing up draconian One of the factors that is contributing to This board has the highest possible
regulations, which they are not adequately the growth of outdoor is the emergence of resolution and is also equipped with
geared to administer or enforce,” says Holley. the black middle class and the development the latest interactive technologies
The increasing red tape and the legislative of the townships. “Townships are highly (including Bluetooth, SMS messaging
grey areas are devaluing this medium and valued economic hubs, as there is a definite and free broadband wireless access).
experts warn that if the activities of increase in disposable income in these areas. Consumers are able to engage with
unscrupulous media owners are not curtailed, Many of the new township malls have stores the content by downloading audio,
industry anarchy will prevail. and brands that are similar to those in visuals and text info to their mobile
Out of Home Media South Africa Sandton City and Fourways Mall,” says Mac phones. They can also send text mes-
(OHMSA) and the outdoor Advertising Donnell. However, as Ridwaan Mohamed, sages and play games. The new
Association of South Africa (OAASA) both sales director, Strawberry Worx, points out, boards will stream news, weather and
serve to increase industry regulation and outdoor companies have only recently directed sports content along the bottom of
support. “OHMSA’s role is to promote the their focus at these markets (especially since the screen. Clear Channel is currently
use of the various forms of out of home the banking institutions have aggressively in discussion with content providers
media, to assist media owners to grow their moved in on the townships and opened new and potential advertisers.
share to between eight and 10 per cent of accounts there). “Soweto alone has experienced
adspend by 2010 and to lobby for regulations
that are fair to the industry, the regulators Will iCapture innovate audience measurement?
and the environment,” explains Les Holley TruMedia (Israeli based tech company with a background in tracking and recognition
executive director, OHMSA. They also have a surveillance software development for Israel’s homeland security), has developed a tool
responsibility to monitor industry develop- which measures digital media audiences in real time. The software is built into high
ments abroad. While some believe that red resolution, wide angle cameras, which are mounted atop a digital display; the camera
tape and legal wrangling will hinder the automatically detects viewers, locating every pair of eyes that are looking at the screen at
efforts of these bodies, it is acknowledged any given time. It tracks these, counts them, and measures them according to how long
that they will go a long way to restoring har- each pair of eyes looks at the screen. The software also records basic demographics (age
mony to this industry if contractors show range, ethnicity and gender) and viewing habits. Local company, Rocketscience Media
greater support in the way of membership of Solutions, has acquired the exclusive South African distribution rights, while Spectrum
these organisations. Perhaps one of the Visual Networks has been appointed the local sales agent.
matters that these bodies should address is According to Manny Teixeira,
the fact that there is no single piece of MD, Spectrum Visual Networks, the
legislation or set of guidelines which governs iCapture system is ideal for compa-
the industry on a wide scale. “Each munici- nies running out of home digital
pality has its own set of bylaws – there is no media advertising networks,
national standard or set of rules. The situation research agencies, and banks.
would be much easier to control and regulate “With the iGaze product, which is
if there was a national protocol,” says Mac focused on window displays, we’re
Donnell. Holley also points out looking to talk to the large fashion
that media owners need to adhere to the retailers,” says Teixeira. He also believes that the research houses could use the technology
regulations that are put forward by munici- to cost effectively build up a significant amount of research data. “The technology as it
palities and the government – not the other currently stands is very unique, so we believe it will rather define its own market space
way around. than specifically compete with existing market offerings,” says Teixeira. The systems are
Despite the few negative aspects of the relatively pricey compared with other measurement systems, with cost depending on
industry, it is a growing medium in which factors such as the number of cameras per system, etc. While the unit is currently
technological innovations are a driving force. designed for indoor use (and therefore not safe from outdoor weather conditions, for
“The investment in developing new and example), an outdoor unit is being developed. Vandalism is not a problem, as the
improved products (print and technologies) cameras are easily camouflaged. “It is brand new technology – from a commercial point
has attracted new advertisers and categories, of view, the first units were only shipped in June – so we are one of the first countries to
as well as new formats,” says Jones. At this actually receive one of these,” says Teixeira. In Denmark, high-tech banks are using the
stage there are few digital innovations in systems to do customer profiling of automated services users. “It’s very early days yet, but
comparison with the US and the UK and it from initial reactions, the banks using it are very impressed and are looking to deploy
appears that the reason for this is the cost of more of the iCapture systems,” says Teixeira.

3 6 MarketingMix I Vol 25 No. 7/8 I 2007


a surge of development with three new International Division, Primedia Outdoor. Donnell and Holley argue that this won’t be
shopping centres opening recently. As a With the 2010 FIFA World Cup just around the case, as FIFA will only have a minimal
result, consumers in Soweto travel and the corner, one begins to wonder how we effect on regulations (given that their
shop within smaller geographical areas – measure up against international markets. requirements are for a short period). They
and where there are consumers, there is Botha believes that our market is not yet believe that there will be sufficient opportunities
advertising,” says Jones. comparable to overseas markets (especially for others to get a piece of the action, in
Marketers have come to understand that countries where electronically based mediums spite of the fact that FIFA partners will have
black markets are both savvy and desirable. are used extensively). “Media owners abroad control of the prime spots. “They will just
“Black markets do not appreciate being can now sell their media by time channel. have to be creative. My major concern is
lumped together with a ‘one shoe fits all’ atti- Imagine buying ‘drive time’ exposure on a about what happens afterwards? We as an
tude. These consumers are very aspirational: billboard. It allows advertisers to be more industry need to ensure that we avoid a
they are brand and image conscious and they focused and widens the net of potential depression post-2010,” says Mac Donnell.
don’t mind paying extra for branded items and clients for the sales team,” he says. He It appears that the industry needs to take
products,” says Mohamed. Botha agrees that anticipates that we will follow these trends. innovation and evolution more seriously,
the township market is the most undervalued Mac Donnell agrees that even though before putting its best foot forward on the
outdoor proposition. “The sites in these areas outdoor is developing rapidly, there is still a 2010 global stage. “I would like to see some
radically innovative ideas with regard to
creative and real estate,” says Mac Donnell.
“I believe that there is a great deal that we
can do with outdoor and I hope that councils
will give permission for the impactful use of
the medium.”
So what can we expect in the future? A
greater demand for prime sites, as well as an
increase in the use of digital printing and elec-
tronic media, are among the anticipated
developments. “Hopefully the costs of produc-
tion will be reduced, allowing the industry a
higher degree of creative flexibility,” says Mac
Donnell. Perhaps this will spark some really
exciting projects. “Interactive street furniture –
achieved by means of Bluetooth communica-
have a massive impact and are normally lot to learn. “With international advertisers tion and digital reproduction – is a reality in
relatively cheap. Any advertiser who targets coming in for the 2010 FIFA World Cup, many countries around the world. This will
this market should definitely use this medium.” South Africa will be exposed to international come to SA (along with digital billboards), as
What marketers need to realise is that standards and this will benefit the industry as the technology improves and becomes less
black consumers are not a homogenous, a whole,” he says. expensive,” says Holley. Botha believes that we
uneducated market. “Most marketers from Will we cope? Some don’t think so. are headed for an environment in which
FMCG, cellular, retail etc, that make decisions According to Jones, FIFA’s regulations clients look for things to brand. Imagine the
on behalf of their clients have not been to stipulate that all advertising in and around an grass at Ellis Park painted OUTsurance green;
the townships and therefore do not under- approximate 1km radius of each stadium will the M1 highway painted McDonalds yellow
stand the dynamics of this grouping of be reserved for key sponsors three months and the Voortrekker Monument covered by an
people,” says Mohamed. prior to, as well as during the tournament. Iwisa Maize Meal building wrap!
Other drivers for the growth of outdoor Botha believes that this places FIFA and their In the meanwhile print ads are slowly
media include the fact that it is not affected activation teams on a direct collision course becoming better suited to the outdoor
as much by the media fragmentation that with media owners and clients. “Outdoor in medium, with agencies and marketers
has impacted on TV and print. “The value of 2010 is going to be an absolute mess. As realising that it is not enough to slap a print
outdoor advertising boils down to the fact most of the outdoor around the stadia need ad onto a billboard. Clear Channel, for
that its the link between people (when they to be removed, I believe that the clutter in example, works with clients to develop
are outside of their homes) and points of other parts of town will double and that the creative and designs that are effective in the
sale,” says Jones. For this reason, outdoor price will sky rocket,” says Botha. outdoor environment. “As the role of the
media possess great potential for reaching us “International brands will try and enter our medium evolves and as the lines that have
where mass media no longer do. “Outdoor market for those few weeks and you can be differentiated it from other media such as TV
media give a brand street presence; a public assured that local media owners will charge a disappear, I predict that we’re going to
face; a permanent place in the community,” fortune – just because they can. The smaller see an explosion of creativity in this area,”
says Mike Thomas, general manager, local brands will suffer as a result.” Mac says Patterson. g

Vol 25 No. 7/8 I 2007 I MarketingMix 3 7

by jarred cinman EXPERT OPINION

Design a digital m
The brave new world of online (or digital) areas: paid-for and ‘free’ (or not paid for). In
marketing beckons. It offers many benefits, the paid-for domain the first consideration is
including tight focus, traceability and auditability to drive awareness, which is normally done
– and if done correctly – a rapid return on through the use of a mechanism such as a
investment. How do you, as a traditional banner ad. This is analogous to placing an
marketer, enter this brave new world? This advert in a publication, which means that it’s a
question is particularly valid in South Africa, discipline that is easily managed and mastered
where we still tend to lag behind developed by a traditional agency. As more and more
markets as far as digital opportunities are people turn to broadband, it is becoming a
concerned. The first question that a marketer vital element of digital marketing. However,
needs to ask in this situation is: ‘How do I you must understand why you are doing it. It’s
approach the opportunity?’ There are four not great for brand building but it is effective
obvious options to consider: for initiating an action from a viewer or
z Take the task in-house: potential buyer, delegate or subscriber.
this is often the first consideration and The key difference with banner adverts is
although some agencies are doing good that their effectiveness can be measured and
work, the results vary in terms of quality and advertisers usually pay per click. This has both

degree of success. an upside and a downside. While the number
z Work with a traditional agency, and value of clicks can be measured, the cost
An agency and a digital which at the very least understands the per click is rising and this can make a
offline world and the imperatives of the campaign like this prohibitively expensive –
technology specialist
client. In this and the previous case, however, some sites are charging up to R50 a
cooperate to deliver a there is frequently no clear understanding of clickthrough (which is not a problem if each
the technology and of what it can do for you. click translates to business). This places the
complete solution for In situations where a bold approach is called onus on the client and on the service provider
the client. In effect, this for, the agency is either too timid or it designs to introduce a stringent qualification process.
an adventurous but impractical approach to Another limitation is that web browser plug-ins
means that the agency the task. are hurting the banner ad market. In effect
z Work with a dedicated these plug-ins allow users to bypass banner
brings its client knowl-
digital agency that brings a deep and practi- ads in much the same way that the PVR lets
edge to the table, while cal understanding of the technology to the you skim past TV ads. Nevertheless, banner ads
table, as well as a knowledge of how to are a huge and growing business because they
the digital specialist maximise the opportunities. In this regard it do deliver value for advertisers – as long as you
brings specific insights. is best to are hitting the right LSM! As with all advertising,
form a partnership rather than to adopt you must always know whom you are targeting.
In many cases, this is the

a vendor-client model.
ideal model. z An agency and a digital tech- Keyword purchasing
nology specialist cooperate to deliver a com- This has become a monumental business,
plete solution for the client. In effect, this especially in the US. It consists of the practice
means that the agency brings its client knowl- of buying keywords and embedding them in
edge to the table, while the digital specialist your website. Theoretically, as people search
brings specific insights. In many cases, this is for companies, offerings or service providers
the ideal model. online, they will find you if you own the key-
words (those who own the keywords will lead
Campaign elements the market). A handy tip here: work with
When putting together your digital marketing Google AdWords and Adsense, which can
campaign, you need to look at two broad South Africanise your content and help to drive

3 8 MarketingMix I Vol 25 No. 7/8 I 2007


al marketing campaign
income through revenue sharing. However, ing so much value from a website that word were converted to sales. It all depends on the
there is a caveat: if your website happens to be of mouth rapidly spreads and in no time at key metrics in your business. It’s a daunting
commercial, you could end up cannibalising all you have a hit on your hands. Facebook journey and one that is best undertaken with
your own revenues. Positioning is critical and is the benchmark here. However it’s very someone who can help to guide you through
this is something that traditional agencies excel much like Hollywood: despite years of expe- all the potential traps and pitfalls. g
at. An agency could help you to position your rience, who knows what will be a hit? The
website in such a way that people are able to key here is to give visitors so much value
make their way to it. However, what happens that they will be persuaded to go and tell
after someone clicks on your banner ad and is their friends and colleagues about it.
drawn to your website? Are you enjoying the z Blogging: blogs can be viral
desired outcome? Given the cost per click, you in nature and they need a few words of their
need to be able to qualify the clicks by using a own. They are prone to hit and miss but if
tool such as Google’s Website Optimizer. you happen to get it right, you can drive
Building on these aspects as a foundation, many people to your messaging. Blogs can
you can begin to drive an integrated marketing also be damaging to your brand, especially
campaign. You need the assistance and guidance when a credible blogger posts something

of digital experts to do this. The ideal is to
build a community of like-minded people who
gather on the Internet of their own volition
because they find value in the community. Every digital marketer must have a strategy that
is both proactive and reactive where blogging is
Free options

z Organic search engine concerned. There must be a mechanism for
ranking: this is all about search engine opti-
misation, which is a complex area that is
tracking, managing and responding to blogs.
wide open in South Africa. In effect, it’s
about building your website so that you
obtain better results when people enter a negative about your company and its prod-
search string in Google. (Google is really the ucts. Consumer activism on the Internet can
only search engine you need to concern be dangerous since buying decisions are fre-
yourself with, since the others, such as Yahoo quently made through word of mouth. Every
and MSN, have been marginalised). You digital marketer must have a strategy that is
must persuade Google that yours is the best both proactive and reactive where blogging
website for a specific requirement. You need is concerned. There must be a mechanism
to do it subtly and carefully, as Google’s for tracking, managing and responding to
algorithms will bounce you to the bottom of blogs.
the rankings if you use a heavy-handed tech- Finally you will need a way to measure the
nique, such as excessive repetition of the key- success of your digital activities. Obvious
words embedded in your website. To put it measures include: how many clicks or
simply, it is so easy to get it wrong with impressions you enjoyed; how many people
search engine optimisation that you would registered for an event and how many clicks
be well advised to recruit the services of an
expert in this field.
Jarred Cinman
z Viral marketing is another
director, Cambrient
‘free’ option: to a great extent this is the
(011) 807 8570
Holy Grail of digital marketing. Viral market-
ing describes the process of people obtain-

Vol 25 No. 7/8 I 2007 I MarketingMix 3 9

by nici stathacopoulos EXPERT OPINION

Whose line is it anyway?

I finally got the title of the absurd TV infomercial – but they are calling the customer
programme, Whose Line Is It Anyway, the other to take immediate action; to visit a store and
night when my three boys (two teenagers and make a purchase. Now our customer is in the
an adult) rolled around the lounge floor in hysterics. store – what do we do with him? We give him
I still don’t find the programme that funny. a postcard with a URL and tell him to go
What I do find really funny though, is the online and complete his details. For doing this
continuous reference to the ‘line.’ he will be richly rewarded with gifts that are
Recently, various marketing people at a tailored to his needs. These TV adverts are
client had a lengthy debate on the work we promotional and they are building the brand.
presented: ‘Was the recommended use of a However, if they are thought through to the
newspaper a direct channel?’ The other day, very end, they are in fact direct!
Matt, one of our young and talented copy- The next question that crosses that line is
writers, told me categorically: “It’s not about how to market to the lower end of the LSMs
the channel or the line – I just want to do who don’t have mailboxes – and if they do,
great creative work.” Ramesh Iyengar from we don’t know their names. They certainly
Mumbai, an international judge in the don’t have access to e-mail either – at least
Experiential category of The Loerie Awards, not every day. How do we reach them and
declared that BTL stands for ‘Between the ensure that we get a response, so that we can
Line.’ Finally, after a long discussion, a measure our campaign and sales? Can we be
potential client asked us: “Who do you direct? The answer is in the message. We

consider to be the hottest agency in SA can’t afford to think about the line.
today?” My response was an instant “us!” to We also need to remember that direct
which he replied, “No, I mean in above the line.” marketing in the traditional channel of mail can
Direct marketing in
be costly, especially when we start to reward
What line? the traditional channel recipients with points and accessories for
My creative partner, Stu, returned from judging profitable behaviour. It’s not only the R100
Cannes Direct and went literally headlong into
of mail can be costly, mail pack that we must consider: the actual
judging Loerie Direct. He made the same especially when we start cost of the reward must also be factored in. So
observation: “Is it direct or have we shifted?” we use traditional media channels in order to
Exactly what does direct mean, creatively and to reward recipients with reach the masses but we must ensure that our
strategically speaking? If I want a direct marketing points and accessories for message has a strong call to action, which truly

agency, what am I looking for? Can my DM engenders a response. Once we have received
agency be creative? How can we be creative if profitable behaviour. a response, we should have an additional piece
we are being direct? Well, the entries for the of information about our recipient. Now we
Loeries certainly challenge this thinking, as do can start cooking with the more direct channels.
the number of traditional agencies who One piece of info is like gold. Can you imagine
submitted their work in this category. how far you can take your relationship if you
So now we are faced with some 28 TV ads; have a second, third or even fourth piece of
mostly 30 seconds long; all promoting a product. information? This is where we can begin to
The question arises as to whether these ads differentiate ourselves and our clients from our
are brand building or whether they are pro- competitors. This is the point at which we
motional? They can’t be deemed direct – marry the science of CRM to the art of creativity.
after all they are not the boring 10 minute Now we can start to segment our bases
according to our customers’ value/ potential
One of my staff picked up a postcard from Nike on a plane. Its call to action was to write value and by using the information that we
a pledge, send it back and your details would go into a draw to win some great prizes. have on them, we can initiate the rewards.
Clearly they wanted to gather data but the American agency that printed them didn’t ask So, it’s no longer in or out of the box or on or
for any contact details. None. We know that it’s a US agency because I asked some off the line. After all, whose line is it anyway? g
colleagues who do Nike’s online work whether they had produced the cards and they
hadn’t. Do the Americans have an amazing telepathic system or did they intend to run all Nici Stathacopoulos
the postcards through the Aphis finger print system used in CSI to discover who each CEO, proximity#ttp
respondent was? I think they were probably an amazing above the line agency that didn’t (011) 447 7093
know any better! Marry the science to the art!

4 0 MarketingMix I Vol 25 No. 7/8 I 2007

by dr robert passikoff EXPERT OPINION

Predicting market success

Peter Drucker observed that, ‘there is fore more complex than ever before.
surely nothing quite so useless as doing with In order to successfully address this
great efficiency what should not be done at complexity, marketers should re-calibrate their
all.’ Unfortunately a lot of research illustrates definition of ‘brand equity.’ They should
the truth of this remark. One of the goals of ignore the outdated definitions of the term
my book Predicting Market Success: New (which more often than not relate to imagery
Ways to Measure Customer Loyalty and or – yes, even in this marketing environment –
Engage Consumers with Your Brand is to to brand awareness!) and use the following
teach marketers how to do meaningful and as an operational definition:
predictive research. It provides a 21st ‘Brand equity’ is the degree to which a
century perspective on predictive loyalty brand meets or exceeds the consumer
and engagement metrics. expectations for a category in which
The truth is that since 1985 the marketing it competes.
realities that have confronted companies and What is the reason for this? The fact that
brands have become worse. Consumers ARE the components that make up consumer
in control and have been ever since the 21st expectations are mostly emotionally-based
century began. My goal in writing the book and account for 70+ per cent of the brand
was to teach the application of 20/20 decision process (and happily, the emotional

foresight rather than 20/20 hindsight, including drivers) can be quantified. If your marketing
metrics that correlate to sales and profits. department or your advertising agency is
Doing what you
One merely has to look at how most throwing around terms like loyalty, emotional
brands struggle to differentiate themselves did in the previous bonding, bonding with our consumer and
from their competition to know that new engaging our customers emotionally, you
research and planning approaches are needed.
century won’t work need to ask them: ‘How?’ Just how are they
The rational aspects of a category or brand, much longer – just doing this – beyond using music that was
once great sales levers, are now table stakes. popular in the 1960s or resuscitating some
acknowledging the

You either have them or you’re out of the old 50s TV stars in ‘classic’ black and white?
game – and everyone has them! One cannot Smart marketers need to be more than
need is not enough.
help but recognise the rapidly evolving ways creative to get the job done. They need to
in which consumers use, juggle, adopt and strategically engage the customer and the
‘gate keep’ old and new media. The key is only way to do this is to make sure that all
how to predict which medium (and which marketing and communication activities
particular entertainment venues in each medium) reinforce the brand in ways that help it to
will help to guarantee market success. meet or exceed customer expectations.
It’s no secret that brands are more From a loyalty and engagement perspective,
commoditised and consumers are more savvy brand planners can get CEOs and CFOs to
– and that the media itself is more fragmented ‘buy into’ marketing and advertising
than it has ever been. Neil Postman (media programmes, especially when they are able
theorist) predicted that one day we would to show a nearly straight-line correlation with
wake up and find that we were living in a sales and profits or a high correlation with
‘media ecology.’ This came true a lot sooner positive behavior toward the brand. Doing
than anyone expected or was prepared for. what you did in the previous century won’t
It’s astounding that his observation that work much longer – just acknowledging the
marketers would have to know ‘how media need is not enough. g
of communication affect human perception, complexity or debate the marketing and
understanding, feeling and value’ reflects communications continuum upon which it Dr Robert K Passikoff
the same concerns that modern marketers migrated, it is an incontrovertible fact that a
founder and president, Brand Keys.
are faced with today (and that most are real 21st century media ecology – ie an Author of Predicting Market Success:
struggling to handle). environment in which the consumer is virtually New Ways to Measure Customer
While one can argue about the precise cocooned by (and in control of) media of one Loyalty and Engage Consumers with
date that this consumer-controlled media sort or another on a 24/7 basis – has arrived. Your Brand.
ecology finally arrived in all its full-blown Brand planning for this environment is there-

4 2 MarketingMix I Vol 25 No. 7/8 I 2007

The Best of Point of Sale Conference -
7 September 2007

Featuring Dick Blatt, the President & CEO of POPAI International

Dick Blatt will discuss the latest international trends and their relevance to SA. He will present the results of the first MARI
Study measuring Shopper Engagement at Retail, assessing how shoppers where influenced by various POS activities.

Our line up of speakers and topics will influence your marketing thinking about effective PoS in SA.

A one day conference at the Sandton Sun, Johannesburg.

PoS strategy briefing How to promote in the townships

Welcome by Yatish Mehta MD of Uniprint Point of Purchase. Xolisa Dyeshana from Joe Public, will comment on the latest promotions
Dick Blatt will overview the big international PoS trends, the latest in the townships; targeting various income groups, and the guidelines
solutions and the early results of the new MARI project. This first proof of that ensure that PoS promotions are acceptable to the spazas, the chains
concept study was conducted in the United Kingdom at Morrisons and and the malls.
ASDA/Wal-Mart stores. Initial findings show not only the volume of shoppers
visiting the stores but the amount of marketing at retail materials to PoS showcase
which they were exposed, and what materials actually caught their eye. The best of the Loerie Awards ’07 and our selection of what’s hot right
now. The key ingredients of their success.
Effective measurement at PoS
ACNielsen will present the latest research on consumer profiles, Dick Blatt: Q&A
purchasing behaviour and shopper choices. They will evaluate the Your opportunity to pick the brain of the most informed PoS expert in
influences of the various components of PoS marketing. And they will the world.
demonstrate how to measure PoS effectiveness supported by a case study.
About POPAI:
How to use technology to drive PoS solutions POPAI is an international trade association for the marketing at-retail
IBM will present their perspective on where, when and how digital media Industry, with 1700 member companies (brand, retail and PoS).
will seriously influence retail and PoS in SA, and they will demonstrate
some very compelling applications.

The Young Shopper: what turns him on

Liesl Loubser, CEO HDI Youth Marketeers, knows everything about the
youth market, and how to market to them successsfully. Liesl will
demonstrate successful programmes influencing their shopping behaviour
and she will highlight some big marketing mistakes.

Delegate fee: R2500 plus VAT. Three or more delegates R2250 plus VAT per delegate. Booking by 31 August.

Enquiries or registrations:
Contact Robyn on 011 23 7008 or

Uniprint Point of Purchase is one of the largest Marketing-at-Retail suppliers in Africa, specialising in the manufacture and distribution of a wide range
of below-the-line promotional printed products, including temporary and semi-permanent point-of-sale display stands. The company also offers a
unique in-house creative structural design and rapid prototyping service. Uniprint customers include FMCG companies, advertising agencies, retailers,
financial services institutions and companies in the pharmaceutical, telecommunications and petroleum industry. For more information, please contact
Cliff Jones on 011 806 9600.
by fulvia becatti SAMRA REPORT BACK

SAMRA 2007
The 2007 South African Market Research Association conference produced some
interesting research papers. Marketing Mix brings you the highlights.

Deeper, more candid insights faster? It’s possible with

online qualitative research
safe enough to express themselves and to The benefits of online research tools:
By Andrea Chemelly (TNS Research
share their experiences and opinions. They z Capacity to reach popu-
Surveys) and Corette Haf
found that teens are very tech savvy lations that are geographically dispersed
(researchers had oversimplified the instruc- z Able to reach everyone
The most exciting paper at the conference tions and were reprimanded by the teens from youth to working professionals, espe-
was that of Andrea Chemaly cially among the upper LSMs
and Corette Haf. The pair z Reach respondents
acknowledged that local while they are in their own physical com-
Internet access is growing and fort zones
that it holds great potential for z Afford privacy for sensi-
marketers and researchers, in tive or embarrassing topics and issues
spite of being at only 14 per z Have the potential to
cent for those over 18 years minimise social pressures
(compared with 69 per cent in z Offer accuracy and tran-
the US). They illustrated the scripts that are immediately available
effectiveness of online bulletin z Make it very easy for
boards in their research clients to view
amongst South African teens. results and interactions and for
The study focused on ‘issues moderators to keep in touch and interact
facing teens in the techno age.’ with respondents.
They selected teens between
the ages of 14 and 16 years The benefits of bulletin boards:
from Johannesburg, Durban z Offer equal opportuni-
and Cape Town, who owned cellphones that involved): they are very comfortable express- ties for respondents, as well as extended
were equipped with the ability to send and ing themselves via this technology. They also contact with them
receive pictures. Respondents had to be found that teens are far more responsive to z Allow for complete
comfortable with surfing the web and had to SMS than they are to e-mail communications communication (respondents have suffi-
spend between two and three hours a week (they had to be alerted to e-mails and cient time to ponder their responses)
doing so (home Internet access – using a PC reminded to respond). Despite the absence of z Text material is easily
less than four years old – was a prerequisite). body language, the teens made effective use shared among respondents
In addition respondents had to have been of text colours, emoticons, pictures and z Board allows for unlimit-
on MXit within the week before the study abbreviated SMS language in expressing ed viewers
was held. themselves. Many said that they enjoyed the z Minimise ‘group think’
The researchers created a billboard for girls experience and that they would take part in z Difficult recruits are
and boys respectively and asked them to such a study again in the future. avoided.
respond to various questions and issues. They Haf and Chemaly concluded that while on-
received very candid answers, even as far as line qualitative research might not be an effi- Weaknesses of bulletin boards:
respondents’ illegal or underage activities on cient replacement for a face-to-face interview, z A lack of body language
such topics as sex, drugs and alcohol were it certainly holds tremendous potential with indicators
concerned. They insist that teens would not regard to expanding qualitative research as a z Researchers have less
have been as candid in focus groups (where whole in the South African context. control over respondents’ environments
they could have felt uncomfortable or uncool Online research methods include: real time z All those involved must
in front of their peers). Since the bulletin focus groups, bulletin boards, multi-media have adequate
boards allowed for anonymity, the teens felt online focus groups, etc. PC skills

4 4 MarketingMix I Vol 25 No. 7/8 I 2007


Tapping into the soul of the Black Diamond: which

facets of the Black Diamond are you enabling with your advertising?
They spend an average of R540 technological applications.
By Dee Evans and Andrea Chemaly,
per month on their cellphones. They spend an average of
TNS Research Surveys
Diamonds that are drawn to R460 per month on their
Dee Evans and Andrea Chemaly explore knowledge relate well to adver- cellphones. The overall
whether or not telecommunications brands tising messages that portray average monthly cellphone
are Tapping into the Soul of the Black them as organised, informed and expenditure of the Black
Diamond. They examine the future relevance in control. They spend R580 per Diamond is approximately
of these brands amongst this growing middle month on their cellphones and R550.
class (which is both connected and highly have a sophisticated understand- After analysing the adver-
influential). The study identifies a framework ing of 3G technology (they will tising campaigns of local
of needs (based on the emotional connection engage with mobile TV and traffic cellphone providers, the
to products, brands and the Needscope) and reports, for example). researchers found that Cell
categorises the Black Diamond according to Black Diamonds that wish to bond with others C’s little people campaign creates feelings of
their need for fun, independence, power, through their cell phones relate best to advertis- belonging; MTN’s campaigns perpetuate
knowledge, bonding or affiliation. ing that perpetuates the image of a helpful, sup- freedom and funk; Vodacom is both outgoing
Telecommunications brands need to tap into portive and caring persona. They look for con- and ambitious and Virgin Mobile dares to be
one of the above to succeed. nectivity and security and spend an average of different. It’s interesting that when plotting
Black Diamonds that look for independence only R320 per month on their cellphones. the future opportunities for these service
relate to advertising messages that paint a pic- Black Diamonds that look for affiliation are providers they found that Vodacom and Cell C
ture of the consumer as energised, vigorous also the biggest spenders, with an average hold the greatest potential for future success
and active. They use cell phones to shop cellphone expenditure of R610 per month. They (Cell C is not the biggest provider in terms of
online and listen to MP3s and they make use want to connect, especially in the social realm. subscribers but its advertising is obviously
of Bluetooth and audio/visual applications. They use their cellphones to watch videos and sending the right messages). The study also
They spend an average of R440 per month on TV; listen to the radio and surf predicts that Virgin Mobile will have a low
their cellphones. the web. ranking (below that of MTN, which although
Black Diamonds who identify with power Black diamonds that look for fun regard their relatively popular now, does not hold much
relate to advertising that portrays their success. cellphones as a social enabler that connects future potential). With regard to handsets,
They make use of the 3G, blue tooth and mes- them with their friends (and they relate to Nokia will lose its current market dominance
saging features of their cellphones: they also advertising that portrays this). They appreciate to brands such as Sony Ericsson, LG, Samsung
make use of cellphone banking and e-mail. modern, funky phones that have leading and Motorola.

The power of packaging

by Alice Louw and Michelle Kimber, the size of your brand’s package may have the Context plays a major role in purchasing
The Customer Equity Company
capacity to extend the brand into new target decisions. Packaging is considered along
Alice Louw and Michelle Kimber took a closer markets or to overcome cost barriers. with the shopping experience; the usage
look at packaging and the way in which we While little is known about why we choose experience; the package’s functionality; shelf
research its effectiveness. the brands we buy, researchers have found visibility and the consumer’s past experiences
Packaging serves the obvious function of evidence of some of the factors that influence with the brand.
containing our favourite brands and differenti- packaging designs: Currently packaging research includes a
ating them on the shelf. It can drive our brand z Colour, typography, handful of methods, such as sales tracking,
choices. Given the increasing consumer choice graphic forms and illustrations all serve as focus groups, usage tests and shopper
and greater media fragmentation in today’s cues which consumers interpret, in order to behaviour research. Methods that are less
world, where fewer opportunities exist for a assess both the brand and the product frequently used include virtual reality
brand to be seen, packaging may hold the z It has also been found shopping and the use of eye scanning
potential for a product to stand out from the that text messages perceived from the right apparatus. Researchers must examine the pros
crowd. Packaging is seen at the point of pur- side of the individual have a better recall: and cons of each method and perhaps even
chase and also each time it is used – it there- conversely pictorial elements that are per- use several methods of research. It is important
fore has a better reach than advertising (it can ceived from the leftside have a better recall to take into consideration that packaging is
promote and reinforce the purchase decision z On average, one will often seen as a part of the product and that it
at the point of purchase repeatedly). spend between five and seven seconds is therefore difficult for customers to separate
Size is also relevant, as a simple change in reading a label or product packaging. the two.

Vol 25 No. 7/8 I 2007 I MarketingMix 4 5


Cataclysmic or enchanting: the impact of private spaces on

broader social interaction amongst teenagers
take advantage of the rich networks that with the emotional fluctuations in relation-
By Kudzai Guvi,
TNS Research Surveys they are a part of. As a result they develop ships). They have difficulty expressing their
greater tolerance as well as an appreciation feelings and lack empathy. They expect
Kudzai Guvi delved into the technologically of cultural diversity. instant gratification and their social promiscu-
connected teen market, after noting an Of course there is also a certain element of ity means that they are less relationship-
increase in school violence. The question is: rebellion in their chosen means of communica- committed. Their grammar is deficient and
are teens able to engage and communicate tion and their abbreviated SMS/e-mail language their social etiquette has also been negatively
with each other and what effect is modern allows them to defy their parents. Guvi has impacted.
communications technology having on their noted that to a great extent teens are strad- While one expects this from teens to a cer-
communication skills? dling two worlds or social contexts at the same tain extent, the real problem lies in the impact
Guvi discovered several reasons for teens time. In the one there are rules and cultural lim- that this will have on their future in the work-
gravitating towards modern communications itations and in the other they are empowered place. These individuals will need extensive
tools. They allow an anonymity (pseudonyms, and develop a fluid cultural identity. training in the corporate environment to pro-
etc) through which teens can create their Is cell phone communication diminishing vide them with the interaction skills that they
own identities and develop their self-esteem. their respect for their elders? lack. Consequently development expenditures
The invisibility allows them to develop their Guvi found that as a result of their modern will increase. There are implications for
courage and experiment with their freedom communication habits, teens are lacking researchers too. These teens are active within
of expression as they form their own belief when it comes to interaction skills: they a media saturated environment and will
systems. One should also consider that these misinterpret non-verbal cues and are unable increasingly respond best to integrated ad
technologies are affordable and that they to assess how to respond to someone campaigns. For this reason the process of
grant teens swift mobilisation and a fluid without causing offence. Their debating skills recruiting them for research will best be
culture. Perhaps more significantly, the tech- have also diminished and they experience achieved virally. Co-creation with brands and
nology allows them to be connected and to relationship dissonance (they are unfamiliar products is the way forward.

8-23 year olds: the current, future and influencer market. How to
get into their heads
brands which enhance their self image and manager; lawyer; engineer; accountant; TV
by Liesl Loubser, HDI
empower them presenter; DJ; musician
Liesl Loubser presented the findings of HDI’s z 19-22: independent (but z Dubbed Generation C,
research into the youth market, illustrating value interdependence); are focused on the youth are highly connected but also
just how powerful this market is. Almost 53 individual fulfillment; seek out brands that time compressed (they must multi-task to
per cent of the South African population is help them to fulfill their dreams. juggle family, friends and the modern
under the age of 23 years. This is a market in lifestyle); they are technologically savvy and
which consumers have established themselves What should you know about have infinite choice. Brands must keep it
in their own right. If they are indifferent to the youth market? simple and must change, innovate and
your brand, they won’t buy it. On the other z They spend their money remain relevant
hand, if they want your brand, they want it on transport, clothing, DVDs, CDs, fast food, z Their social networks are
now and they will spend their money on it. If cell phone airtime, magazines, movies and vast and play a very important role in terms
they don’t have their own money, they will even groceries of providing and sharing information
nag their parents for it (and influence them in z They influence their par- z As a result of their vast
the process). ents’ spending social networks, youth are very tolerant of
The youth market can be categorised z The vast majority of diversity and they relate to brands that
into one of three segments: youth own cell phones understand this
z 8-13: dependent on par- z They have serious fears z They judge brands by
ents and pester them to get what they want; that include: becoming the victims of the company they keep (they relate to
want to be older; seek out fun brands that crime; becoming infected with HIV/Aids; brands that provide both status and skills
provide entertainment rape; car accidents; not finding a job in the and they’ve
z 14-18: seek independ- future and losing their friends become disenchanted with marketing and
ence from parents; susceptible to peer z They think that the best advertising messages)
pressure; want to be free and seek out jobs are: actor; entrepreneur; doctor; brand z Youth value customis-

4 6 MarketingMix I Vol 25 No. 7/8 I 2007

by fulvia becatti CAPE TOWN INTELLIGENCE

Destination Cape Town

Copyright of SA Tourism
The Cape is facing a daunting fistful of (which will cost around R400 million and
social challenges that include scary crime create an estimated 95 000 jobs, thereby Call centre boom
stats, murder and violence, child murders and contributing R4 billion to the local economy). According to CallingtheCape’s fourth
TIK epidemics. The approach of the 2010 The city administration will lay 360km of fibre Key Indicator report, the call centre
FIFA World Cup however, heralds plenty of optic cables (which will initially be used to and PBO&O industry in Cape Town has
good news. The city of Cape Town is link its systems in preparation for 2010 and continued to expand rapidly. The
embracing the necessary development of its later be expanded to include other sites). The number of agents has increased by 41
infrastructure and it appears to be making open access network will provide high band- per cent to 15 899 since the last sur-
good use of government funding and the width connectivity and will work with the vey of this kind. It now employs more
opportunities at hand to address issues Smart Cape Access Network Project. It is than 22 000 people and has main-
around city development and spatial planning, hoped that this will connect city facilities and tained a growth rate of 30 per cent
housing development and the provision of grant citizens greater Internet access. over the last three years. Indications
essential services, as well as the relocation of are that it will grow by a further 37
those townships which are deemed unsafe Media overview per cent over the next twelve months.
for habitation. Newspapers: Newspaper circulations The offshore aspect of the industry
By all accounts, FIFA is pleased with the appear stable across the board, with only the has also continued to expand rapidly,
city’s progress (the city of Cape Town reports daily tabloids shaking things up. which bodes well for this sector. The
that FIFA President Sepp Blatter visited the The Daily Voice has been keeping mum on growth also suggests that Cape
city recently and expressed satisfaction with its circulation figures and according to editor, Town’s labour market is responding
the progress that has been made). There is an Karl Brophy, it’s because they’re waiting for well to the challenge of providing
upward trend in tourism and over 700 000 them to plateau, so that they can present resources for this growing industry.
people visited SA during the month of advertisers with stable and reliable numbers
March. Reports from South African Tourism (they hope to begin reporting their circulations
indicate that the majority are from Africa, the to the ABC as early as the end of this year). Tourism
UK, Germany, France, the USA, China, India, Brophy is of the opinion that when the Daily According to the figures published by
Australia and Brazil. Voice reports its circulation figures, the Cape Town Routes Unlimited, the latest
According to a report on www.southafrica. percentage of the average total readership tourism trends (Q2 2006) show that
info (4 June 2007), local hospitality groups for dailies will be closer to the 60 per cent the total number of international
are increasingly attracting foreign investors mark (it is currently at around 43 per cent). arrivals to SA were 1 945 693
(such as Leisurecorp, a division of the Brophy says that while the launch of the (representing a growth of 20 per cent
Istithmar group, which has purchased the other Cape dailies has robbed sibling on last year’s figure of 1 616 027). The
Paarl Valley Signature Golf Estate & Spa newspapers of circulation, the Daily Voice has average length of stay in SA was eight
development in the Western Cape). The genuinely grown its own readership without nights and the total spend from inter-
report also states that the InterContinental cannibalising the circulation of its sibling national visitors was R10.1 billion.
Hotel Group (based in England) has entered titles. The paper is not online as yet, although The Western Cape tourism statistics
into a partnership with Cape Town’s ISO Brophy maintains that the paper would not reveal that the Q2 2006 international
Leisure group to develop four new hotels benefit from an online platform, since its core arrivals to the region number 330 768,
around the country. In March, the Australian readership is not Internet connected. marking a growth of 7.7 per cent on
based Stella Group purchased the Protea “However, we do have an SMS service, where the Q2 2005 figures. The top 10
Hotels group ( SA’s biggest) in a deal that readers can download or receive content sources of international visitors to the
cost them over R1.5 billion. The above- directly onto their cellphones and this is region include: the UK, USA, Germany,
mentioned are to name but a few. hugely successful. The service receives Namibia, Zimbabwe, France,
Cape Town is taking broadband to heart. thousands of SMSes daily,” says Brophy. The Netherlands, Australia, Botswana,
There are indications that the broadband Daily Voice has plans to launch an Afrikaans Japan, Mozambique, China and
network, which was proposed last year, edition in the coming months, following the Lesotho. The USA and Germany are
might well get the go-ahead. The city of success of its hybrid bilingual both up by two positions in Q2 2006
Cape Town website states that a committee Afrikaans/English edition. Brophy is confident from Q2 2005, while Japan is a new
has been put in place to look into the project that this will be a huge success and that it entry on the list.

4 8 MarketingMix I Vol 25 No. 7/8 I 2007


will give its competitors a run for their Community Newspapers well, as have readers of the print editions.
money. In the meanwhile, it appears that Community and free newspapers are faring Caxton’s GetIt mags have yet to launch
advertisers (especially locally based direct well. Independent Cape’s Bolander was online. According to John Bowles, joint
retailers, cellphone brands and electronic launched in April this year and is classified as managing director, Caxton, the group has
brands) are getting a good response. “While an upmarket community newspaper. Printed plans to launch online soon – it’s a matter of
this market may not have a huge disposable on high quality paper, it boasts a magazine- developing a viable revenue model and
income, it is price sensitive and does respond like layout and design and reaches only the finding a system that works for the magazine
to advertising. It’s also a high volume market upper LSM homes in the Cape. A joint group (GetIt’s community focus is such that
and is therefore very desirable,” says Brophy. venture with estate agents provides the paper the group’s satellite offices each function as
The Cape Argus has a stable circulation – with approximately 24 pages of local property separate entities). “Our magazines are not
currently at about 75 935 (ABC Jan-Mar advertising every week. “It’s early days yet but like other community mags: we’re completely
2007) – which has prevailed over the last there are strong indications that we have hit local, as opposed to having a base of national
couple of years. According to Michael Vale, on a winning model; one that the market editorial,” says Bowles. He adds that Caxton
marketing manager, Independent Cape really likes,” says David Hill, editor, currently has one GetIt edition in the Western
Independent Cape Community Newspapers. Cape and will launch another two in the
While competition has increased amongst region in September.
community publications, they remain the
papers of choice amongst their readers. Radio
Vukani, for example, provides readers with Radmark’s Heart 104.9 has an average day
info that is not covered by the dailies. “While listenership (Mon- Fri) of 314 000 (RAMS
everyone in the community reads our papers, Feb-May 2007). According to Norman
we have a special focus on increasing our Gibson, Radmark’s marketing manager, the
youth readership,” says Hill. No doubt the station has seen a steady performance over
Copyright of SA Tourism

move to online during the next few months the past year, with a three per cent increase
will help community papers along. in Past 7 Day listenership and a one per cent
growth in terms of Average Day (Mon – Fri)
listenership. “Heart 104.9 maintains its
Newspapers, the publication’s website is leadership position in terms of coloured
popular with South African expatriates based listenership, LSM 6-10, age 25-49, in the
overseas. While the newspaper has no Cape Town metropole, with an audience of
specific plans in the pipeline, it has recently 230 000,” says Gibson. In this category, the
relaunched and has seen a very positive station has the highest levels of time spent
reader response. Advertisers are also receiving listening, with an average of 18 hours
a good response. per week.
Copyright of SA Tourism

The Cape Times has had an increase in its Good Hope FM experienced major
circulation figures and according to editor, challenges about a year ago, when Past 7
Tyrone August, the quality of its journalism is Day listenership hit an all-time low. Station
the reason for its success. The paper’s manager Anthony Duke says that the lost
circulation is approximately 52 044 (ABC
Jan-Mar 2007). “Our growing readership Community magazines: Although
appears to reflect the need for a strongly community magazines may be print’s newest
local, hard news title in Cape Town, with addition, they are proving to be very successful.
comprehensive national, political and business Media 24’s MyWeek magazine has
coverage, as well as opinion pages which are launched an eye-catching website
insightful and engaging,” says August. It (, complete with down-
recently launched a four-page supplement, loadable digital formats of the print edition. It
Techno Times, which looks at new media includes personalised TV schedules and
Copyright of SA Tourism

specifically and it is hoped that this will attract community noticeboards, as well as rates and
younger readers to the newspaper. Advertisers zone info for advertisers. The site complements
are spending more on advertising and the print mags, which are available in
revenues are healthy. “The specialist daily 23 zones across the country (and of which
supplements offer advertisers very specific 600 000 copies are distributed every two audiences have been recovered over the past
markets, which are yielding excellent results. weeks). According to MyWeek Cape editor, year, and this may have had something to do
Advertisers are spending more because they Igna Schneider, since its launch in June the with the changes in the music format (in
are getting good responses through the website has been inundated with postings and October 2006, the niche sound of only R&B,
paper,” says August. downloads, etc. Advertisers have responded House Hip Hop and Rap was replaced by 80s

Vol 25 No. 7/8 I 2007 I MarketingMix 4 9


and 90s hits, mixed with R&B and Pop hits). Commission acted as the lead agency for the Film Institute’s Project 20/20 for a week of
“The niche was not broad enough to service SA Exposed initiative at the Cannes Lions screenings and workshops, as well as an out-
the core target market of 16-34 year old Festival in France this year. Over the reach programme in Nyanga for film enthusiasts
Cape citizens,” says Duke. The station is past three years this initiative has had who are not able to frequent the city. “The AFI
active online, with blogs and podcasts; the increasing success in promoting Cape Town has shown great interest in South African
station website is accessible via WAP. as one of the top international commercial content, with special arrangements being
production destinations. made for Western Cape and South African
Outdoor The Commission also hosts numerous submissions for this year’s AFI film festival.
It appears that Cape Town’s outdoor media film-related delegations that show an interest They have also shown great interest in
are dealing with the same issues that are in the region’s industry. Recently the CFC host- continuing the South African leg of Project 20/20
affecting the outdoor medium as a whole ed international filmmakers from the American for South African filmmakers,” says Visser. g
(see the outdoor media feature, page 34).
However, stringent restrictions and legislation
make it tougher for outdoor advertisers to Cape Newspapers (ABC Jan-Mar 2007)
put up boards in Cape Town than in other Daily newspapers: Total circulation:
municipal areas across the country. The city Die Burger (Western Cape) 72 310
of Cape Town is enforcing stricter control Cape Argus 75 935
measures to deal with the amount of clutter, Cape Times 52 044
particularly with regard to illegal estate Die Son 80 994
agents’ signage across the Cape Metropole
(according to the city of Cape Town official
Free and community magazines (ABC Jan-Mar 2007)
website). As of 1 July 2007, individual estate
Net Distribution
agents and auctioneers must register with
Cape Home Talk 117 029
the municipality in order to obtain permission
GetIt (Waterfront, City Bowl, Atlantic Seaboard) 25 083
to display property marketing boards and
MyWeek (Constantia/Tokai) 24 947
directional signage on Council property. Each
MyWeek (Durbanville) 20 020
agent will be required to pay an annual
MyWeek (Helderberg) 24 947
registration fee of R551 in addition to a
display fee of R659 per annum, for which the
city will issue a maximum of six permit Free newspapers (ABC Jan-Mar 2007)
stickers per agent for the year (limiting the Net distribution
number of directional signs on council property Plainsman 83 504
to six). These stickers are uniquely numbered People’s Post Mitchell’s Plain 83 340
and must be displayed on signboards. They City Vision (Cape) 80 787
will be replaced at no extra cost if they are Vukani 75 560
faded or damaged. In an attempt to curb Athlone News 55 756
the illegal posting of signs, previous charges Tabletalk 55 029
have been raised and surcharges have been Southern Suburbs Tatler 48 969
introduced for agents who are not registered. Southern Mail 45 460
People’s Post City Edition 38 889
Film Tygerburger Ravensmead/Belhar 33 980
On the film industry front, the Cape Film
Commission reports that the region’s industry RAMS June 2007
has a total turnover of R2.65 billion, of which Station 7 Day Listenership Ave Mon-Fri Listenership
77 per cent has been generated in Cape 567 Cape Talk 113 000 62 000
Town. The city of Cape Town’s film permitting Good Hope FM 586 000 282 000
office estimates an increase of 40 per cent in Heart 104.9 FM 524 000 314 000
production across all sectors over last year’s Total community (W.Cape) 978 000 -
figures. The film industry provides 6058
direct jobs and 2 501 indirect jobs in the
Top 5 Cape community stations (RAMS June 2007)
Western Cape (through catering, hospitality
Station Past 7 Day Listenership
and equipment hiring, to name a few). It is
Radio Tygerberg 287 000
estimated that this figure will rise to 12 445
Zibonele Community Radio 207 000
direct full-year job equivalents by 2010.
Radio 786/ Voice of the Cape 141 000
According to Mark Visser, media liaison
Radio CCFM 126 000
officer, Cape Film Commission (CFC), the
Bush Radio 89.5 Fm 87 000

5 0 MarketingMix I Vol 25 No. 7/8 I 2007


Chantal Girard, business

director, Switch Through-
the-Line advertising

25/06/07 displayed in his office. No easy feat, as I cannot find enough frames in
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… one shop. Thank God I wore sensible shoes.
‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Off’ Sigh. I can only delay get-
ting up for so long. 28/06/07
Mondays at Switch always start with a status meeting – can’t be Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble…
late. After my panic to get to work on time, I discover that it’s been ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Off’
rescheduled to this afternoon, as we have to present two (genius!) TV Had to colour pass a direct mailer job at the printers this morning.
commercials to a client this morning. Good grief, you need to pack a picnic basket just to get there.
Watching George, our creative director, present our concepts fills me Everything looks great and it’s signed off. After that, I go to a pre-pro-
with pride. My team ROCKS. I work with such brilliant people. George duction meeting for a photo shoot we’re doing for a client on Monday.
is someone you just have to experience – a genius with a heart of gold. The photographer, stylist, models, production, creatives and the client
Johan is one of the greatest MDs of all time – he laughs easily and attend. I have to say that there are some rather fabulous clothes there.
rarely growls. As for Simon, our art director – his brilliant concepts
astound me. Marco, our designer, can make anything look beautiful. 29/06/07
Lauren, our new copywriter, can create a concept from a paper bag, Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble…
while Kirsten, our other copywriter, knows exactly what to say and how ‘Snooze’ Bzzzz!!! Goodbye ‘Snooze’ and Hello Friday.
to say it. I am officially surrounded by talent. Today we have a farewell – our traffic lady is leaving. Switch
The rest of my day is spent doing creative and production briefs for Through-the-Line is taking her/us out for lunch. We all go except for
a client who needs new marketing collateral – I can’t wait to see what George and Johan, who are on a course (golf… is there any other
the guys are going to do with this one. kind?). Lunch starts at 1pm with the team and… doesn’t really end.
Go big or go home!
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… 30/06/07
‘Snooze’ Bzzzz!!! Fumble… Fumble… So the daily ritual continues. My BZZZZ!! Open one eye. Who was the genius who said ‘Go big or go
bed is my happy place. home?!’
The day starts with a distress call from a client who needs to do SMS to Johan: Jo… my head…
some damage control. The entire morning is spent holed up in the Reply from Johan: Tee hee. We can do the job bags
boardroom with coffee, developing a PR and advertising strategy. The during the week.
afternoon is spent in a VERY long status meeting with a client. SMS to Johan: Job bags? What’s a job bag?
Reply from Johan: A toasted sarmi and a pink milkshake
27/06/07 will sort you out.
Bzzzz!!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… SMS to Johan: (It all becomes slightly fuzzy here. Jo,
‘Snooze’ Bzzzz!!! Fumble… Fumble… Holy cow! Someone close the did I ever SMS you back?)
fridge door! Must stay in bed… Forever.
The entire day is spent chasing briefs, checking material, submitting 01/07/07
material, chasing briefs, checking material, submitting material… This morning I wake up with my personality and both eyes open.
In between, I hunt down a client who hasn’t uploaded his new web-
site. He very kindly returns my call to say that he hasn’t done so because 02/07/07
he hasn’t paid us for it yet. (Do people like this still exist?) I convince him Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble…
to load it. The whole campaign is driving customers to the site and he ‘Snooze’ Bzzzz!! Fumble… Fumble…
needs a hot site to generate sales. I also zip out to scour some shops for Pillow over my head… take a deep breath.
picture frames for a client who wants all the adverts we’ve done for him Here we go again…

5 4 MarketingMix I Vol 25 No. 7/8 I 2007

How to boost your marketing ROI in Africa, that’s the forever challenge. Marketing Mix has shortlisted the
key issues and we have invited very successful African marketers –just look at the names below – to talk
about their experiences and to answer your questions. Effective Marketing in Africa is a morning workshop in
Johannesburg on 11 September, 2007.

Africa in Perspective 08h00-08h45
Santie Botha, Group Marketing Director of MTN, talks about marketing in African markets.

Africa in Context 08h45-09h30

Doing business on the African continent has numerous challenges, not least of which is the
availibility of market information that is available. The data that is available can sometimes be
less than reliable. If you know what you’re dealing with, however, there are always ways to decide
whether or not a market is worth investing in or doing business in. Here are some tips on what to
work with and how to make the right choices, with an insight into some of the practices
that Standard Bank uses to measure business potential – presented by David Wingfield, Marketing
Director of Standard Bank Africa.

The Ghana Experience 09h30–10h15

George Andah the CMO of MTN Ghana, talks about his experiences in launching MTN in Ghana –
the critical success factors.

CNBC Africa Experience 10h45–11h25

How an international broadcasting brand developed effective partner relationships, recognising
individual country characteristics and factored in appropriate distribution models – Peter Ndoro,
Director, CNBC Africa.

African People Passions 11h25-12h05

It’s football and music, it’s a very young market, they love celebrities, and they want the
chance to succeed. Find out how viral, experiential and sponsorships are influencing the young
generations in Africa. Some great case studies and advice from Ian Riley, Director of Sports Inc

African Media Landscape 12h05-12h45

What works best and where? Radio vs TV vs outdoor and mobile. The roles of sponsorships,
viral experiential marketing and how to allocate the budget – Sharon Penhallrick, General
Manager of Telmar

Delegate fee: early bird R1750 plus VAT, 3 or more bookings, R1450 plus VAT. Bookings by
31 August.

Enquiries or Registrations
Contact Robyn on (011) 234 7008 or
by fayeeza kathree-setiloane LAW MIX

Print media opposes revised films

and publications amendment bill
The National Assembly has adopted the characteristic, that constitutes the incitement
revised version of the Films and Publications to cause harm – would now be required to
Amendment Bill, which seeks to amend the submit such a publication to the Films and
current Films and Publications Act in order to Publications Board for examination and
regulate the creation, production, possession classification, before it could be distributed;
and distribution of films, games and certain exhibited; offered or advertised for distribution
publications, for the purpose of, among or exhibition.
others, protecting children from exposure to The proposed classification requirements
disturbing and harmful materials, as well as are constitutionally overbroad and vague. As a
from premature exposure to adult experiences. consequence they will restrict the media from
It also seeks to make the use of children in reporting on news items that deal with:
child pornography punishable. threats or declarations of war; violent
The Bill, as it was originally proposed by the demonstrations; incidents of unrest and race
Parliamentary Portfolio Committee on Home discrimination; domestic violence; child abuse;
Affairs, sparked an outcry from the print rape; indecent assault and other related
media in particular, as it sought to remove the activities. The reference in the Bill to ‘the
exemptions which were previously granted, in advocacy of hatred based on identifiable
terms of which all members of the Newspaper group characteristics’ is also wider than the

Association of South Africa (NASA) were wording in the Constitution, which only
exempt from applying for the classification of excludes protection of expression which
content prior to the publication thereof. Whilst the purpose of constitutes ‘advocacy of hatred that is based
The Bill originally sought to require all on race, ethnicity, gender or religion and that
the Bill is ostensibly to
newspapers, magazines and online publica- constitutes incitement to cause harm.’ By
tions to submit to the Films and Publications curb child pornography, extending the scope of hate speech to
Board (for examination and classification) ‘advocacy based on any identifiable group
material that contained: descriptions or
it will also have the that constitutes incitement to cause harm,’
representations of sexual conduct and conduct effect of censoring the Bill extends its reach to constitutionally
which amounts to propaganda for war, the protected speech. The Bill will also impose a
incitement to violence or the advocacy of political speech, as its harsh sanction, in the form of either a fine or
hatred. These proposed classification application will extend imprisonment, for failure to comply with the
requirements were strongly opposed as they proposed classification requirements.
to constitutionally

constituted pre-censorship – a practice that In its current form, the Bill is therefore only
has been rejected by South Africa’s democratic fractionally better than the Bill as it was
society as being incompatible with the press
protected speech. originally proposed by the Parliamentary
and media’s right to freedom of expression Portfolio Committee on Home Affairs, as the
under the Constitution. danger of pre-publication censorship still
As a result of the barrage of representations remains. Whilst the purpose of the Bill is osten-
from the print media on the unconstitutionality sibly to curb child pornography, it will also have
of the proposed classification requirements, the effect of censoring political speech, as its
the Parliamentary Portfolio Committee on publications that are not members of NASA. application will extend to constitutionally protected
Home Affairs had little choice but to amend Hence publishers of all newspapers, magazines speech. The Bill therefore remains constitutionally
the Bill in line with what had been originally and online publications (excepting those that flawed and is likely to lead to many legal
proposed. Its efforts at revising the Bill have are members of NASA) – which create, produce, battles between media and government. g
however not gone far enough, as the threat publish or advertise any publication that
Fayeeza Kathree-Setiloane
of pre-publication censorship still exists. contains: visual presentations, descriptions or
In seeking to reinstate the exemptions representations of sexual conduct; conduct director, Werksmans Media and
previously granted to members of NASA, that amounts to propaganda for war; the Communications (Pty) Ltd
the revised Bill fails to recognise that there incitement of violence or the advocacy of (011) 535 8000
are approximately 500 print and online hatred based on any identifiable group

5 6 MarketingMix I Vol 25 No. 7/8 I 2007