MarketingMix

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
Marketing Mix reviews International Marketing, by Steven Burgess and Cornelius Bothma, and The e of marketing.

I 3 3 I Expert Opinion: Mike Glover
Mike Glover talks about marketing spend and budgets

I 0 4 I Ed’s note I 0 6 I News
All the latest gossip in the wonderful world of the marketing mix

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I 3 4 I Outdoor Media
Marketing Mix finds out what’s legal, what’s hip and what’s happening in the outdoor media world

I 1 4 I Brand Anatomy
Gloria Jean’s Coffee’s launches into SA: Marketing Mix takes a closer look at their game plan

I 3 8 I Expert Opinion: Jarred Cinman 06 34
Jarred talks about the How To’s of digital marketing campaigns

I 1 6 I Expert Opinion: Helen McIntee
Helen wonders if it’s technomarketing or marketology?

I 4 0 I Expert Opinion: Nici Stathacopoulos
Nici gets the Line straightened out

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I 4 2 I Expert Opinion: Dr Passikoff
Dr Passikoff wonders if you can predict market success

I 1 7 I Expert Opinion: Richard Duncan
Richard explores the role of the recruitment consultant

I 4 4 I SAMRA report back
We bring you some of the highlights from this year’s SAMRA conference.

I 1 8 I Marketing to women
How to woo the fairer sex

48 18 I 4 8 I Cape Town Intelligence
Know all there is to know about the Cape?

I 2 5 I Black Diamond: 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
We look at who’s who, and what’s going on, in Central SA

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director, Chantal Girard makes it clear why she has a love-hate relationship with her alarm clock

I 3 2 I Expert Opinion: Michele Venter-Davies
Michele ponders the calibre of brand managers

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I 5 6 I Law Mix
Fayeeza Kathree-Setiloane explains why the media oppose the Films and Publications Amendment Bill

Vol 25 No. 7/8 I 2007 I MarketingMix

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by michelle sturman BOOK REVIEW

International Marketing
Finally, a locally authored book about international marketing that features local case studies has hit our shelves. While International Marketing is sure to become a staple text for marketing students (its primary audience), marketers across all scales, who are already involved in or who are intending to engage in international marketing, will find tons of useful information in it. Authors Steven Burgess and Cornelius Bothma start at the very beginning of international marketing with a description of exactly what international trade is and why it’s important, including: Increased overall level of technological and economic development Improved global competitiveness Increased job opportunities and reduced unemployment, etc. They also cover the basics of international marketing in detail, complete with explanatory diagrams, making content much easier to understand. They provide descriptions of the domestic marketer, the export marketer, the multinational marketer and the global marketer, along with a pep talk ‘are you ready to go global?’ – and this is just for 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 nice touch at the end of every chapter, consisting of a case study complete with an assignment – a worthwhile exercise for any marketer (even if only as a refresher course). While seasoned marketers can skip numerous chapters, students will benefit by taking the time to read every word. Chapter 3, the economics of international trade for example, deals with the ‘economic rationale of the activity… professionally as marketing experts and not as economic analysts.’ The relevant background knowledge of world affairs and global economics makes it much easier to understand where international marketing fits into the grand scheme of things. The info on Africa is exceptionally useful for all marketers, since for many this is the first stop on the road to global expansion. It also includes information on the various market regions in Africa and on trade organisations such as ECOWAS, AGOA and SADC, as well as an entire chapter that is devoted to international market and the environment, which is useful for domestic or international marketing. Other chapters cover: international distribution and logistics; marketing research; product policy and development; international marketing communications; pricing for international markets; the Internet and international marketing; exporting and small business; export administration and logistics and evolving context and future issues in international marketing. One of the most important chapters for many marketers is exporting and small business. This includes information on coping with competition from large firms; whether a business is ready to export globally; the four steps to successful exporting (including the pitfalls) and the definition of a small business in the South African context. The export administration and logistics sector includes a useful list of the export documentation used by SA exporters, as well as how to fill in a proforma invoice – fantastic information for anyone just starting out on International Marketing an exporting adventure. g By Steven Michael Burgess and Cornelius H Bothma Oxford University Press R350

trade in southern Africa. Part Three of the book, which deals with the international marketing environment, is exceptionally interesting and relevant for those wishing to expand their businesses over borders or for those who are facing difficulties. The five chapters within this third section deal with the socio-cultural, legal, economic, political and physical and technological environments. Whilst the information is not necessarily new or groundbreaking, it serves as a reminder to delve deeply into the target

The e of marketing
At last, a book about online marketing that encompasses everything from e-mail and blogs to vlogs and search engine marketing – without boring you to death from the very first sentence. It even looks fun to read with pale green pages and orange and pink info boxes (sounds gross but it really works). Icons throughout the book highlight important notes and include: here’s a tip, what’s this? and some important reading, making vital info easy to spot. The chapters cover: why have a website? plus search engine marketing; online advertising; email marketing; citizen media and blogging; affiliate marketing; viral marketing and emarketing strategy. This book is a great start for marketing students, as The e of marketing well as for marketers who are baffled by Japie Swanepoel all the terminology (nicely explained in Juta and Co this book). It provides useful information R190 on how to ‘get in’ on the whole online trip and make it work for your business.

Giveaway
Three Marketing Mix readers will each receive a copy of the e of marketing by Japie Swanepoel (Juta & Co). All you have to do is to send an e-mail with the subject ‘the e of marketing giveaway’ to michelles@systems.co.za. The first three people to send their e-mails will receive a copy of the book.

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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:
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 media, including websites. However, most press releases are kept in order to build up a knowledge bank. 4 Do not offer a story as an exclusive and then have it run somewhere else, thinking that we won’t find 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 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 that you understand our audience. Call me if you’re unsure. 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 stating how great they are. If they have something relevant and worthwhile to say, this can possibly 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. 11 Please understand that I am always hectic and busy and working on a million different things at once. 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 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 lot of time. Now that’s out of the way, I have to say that I do have fabulous relationships with most PR firms. PR 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’ work (which is greatly appreciated) and provide me with innovative stories and interesting people to interview. I don’t even mind sending a story in for fact-checking every now and then, if requested – as 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 encourage everyone to add comments to blogs that are published. www.marketingmixmagsa.wordpress.com. g
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PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Hall, Mellis Road, Rivonia PUBLISHER: Terry Murphy EDITOR: Michelle Sturman e-mail: michelles@systems.co.za JOURNALIST: Fulvia Becatti e-mail: fulviab@systems.co.za SUB-EDITOR: Sarah Webster e-mail: sarahweb@mweb.co.za INTERN: Natalie Licata ADVERTISING MANAGER: Robyn Andrews e-mail: robyna@systems.co.za PRODUCTION: Spencer van Graan e-mail: spencerg@systems.co.za SUBSCRIPTION ENQUIRIES: Daisy Mulenga Email: daisym@systems.co.za
Copyright of all material in this publication and supplements are reserved by the proprietors, except where expressly stated. The opinions in this publication do not necessarily represent the views of the publisher.

Marketing Mix Conference Programme
• Best of POS: Johannesburg 6 September 07 • 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: robyna@systems.co.za (011) 234 7008

Database: List Perfect

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NEWS

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

Township talk
South African consumers are diverse and the NOW project, formed by the c.i.a. (consumer insight agency), captures the moments of consumers’ interactions with brands. The NOW project’s aim is to bring life and reality to choosing consumer clusters. Twelve 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 services. They offer a fresh perspective on market segmentation and move us away from stereotyping and grouping based on demographics to a method that allows for the application of the individual-archetypal themes that both connect and polarise us.” The project focuses on two main areas: emotional and functional drivers and influence. One of the archetypes is the Loxion Dreamer: black males and females aged 18-35, living in townships in urban and peri-urban areas. Loxion Dreamers have big ambitions but they lack the tertiary help that they believe will bring them success. They are seen as wild-children, are into Hip-Hop and are determined not to become ‘disillusioned have-nots’ (another archetype). Loxion Dreamers are also frustrated by everyday and believe that only the smart and the beautiful survive. They take pride in their appearance and they fear giving up on their dreams. They are influenced by the ‘model-c go-geta,’ ‘new money,’ ‘polished diamonds’ and celebrities. Loxion Dreamers are connected

township reality and they are very social, so they can be seen just about anywhere. They are status conscious and possess great style: they follow brands and media. Loxion Dreamers are moving to more subtle ways of demonstrating success and they crave the latest technology. They see life as a competition

through TV, radio, print, transport/outdoor and digital media and by SMS in particular. “It’s powerful information as it reveals how we’re influencing one another and it elevates one’s gut feel on trends,” says Cochrane. An archetype will be released each month throughout the course of the year.

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Pictures coutesy of c.i.a.

NEWS

urbandictionary.com
If you want to keep up with the times, incorporate the latest trends and really connect with the youth of today, you need to be knowing www.urbandictionary.com. Get it? This online dictionary was also recently available in paper format from local bookstores. Here are a just a few examples of some of the words that you really should know…

Scott Bedbury on nation branding and brand SA
Marketing Mix caught up with Scott Bedbury (brand architect and the mastermind behind Nike and Starbucks Coffee) ahead of his visit to SA. We asked him more about nation branding and how Brand SA can get ahead. Here’s what Bedbury had to say: Brand SA may need a little work yet. You may be doing a great job of punting South Africa as the ideal vacation destination – with breathtaking sceneries and wildlife to match – 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 that will differentiate you and carry you forward. (For the full interview, visit the Marketing Mix blog: http://marketingmixmagsa.wordpress.com). Scott Bedbury will be speaking at a full day event in Johannesburg on 18 September 2007 at The Campus in Bryanston, Johannesburg. For more information visit www.globalleadersevents.com/bedbury.

Myspy: using MySpace to spy on exes Dick Flick: opposite of chick flick Youniverse: used to indicate that a particular person only has knowledge of him or herself Meh: indifference; used when you simply don’t care Couching distance: the distance one can reach without leaving the sofa Bluetool: a person who wears a Bluetooth wireless earpiece everywhere in order to seem trendy and important 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.

NEWS

The future
PricewaterhouseCoopers (PwC) has released its latest Global Entertainment and Media Outlook 2007-2011 survey.

Mobile castle
A phone-based campaign has proved to be very successful in a first for South African Breweries (SAB). The multi-layered interactive promotional campaign was run in Zambia’s capital Lusaka to promote SABMiller’s new 340-ml non-returnable Castle bottles, as well as the IRB Rugby Castle 7s. Exp Momentum, using Hypertag technology from Brandscape Proximity Marketing, drove the campaign. Hypertags pick up Bluetooth and infrared cellphone signals, through which rich-media content is sent and interacted with.

Filmed Entertainment
Digital cinemas and 3D screens are expected to boost the box office market in the US. Asia Pacific is the fastest growing region and low-cost videos in Latin America are expected to boost home video growth. Online subscription rentals in EMEA will increase rental activity, although this will be at the expense of in-store spending.

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.

Business information
Marketing information in EMEA will increase to $6.4 billion. It will be the fastest growing category in Latin America.

Magazine publishing
New launches will lead to increased circulation spending in EMEA, offsetting increased competition from the Internet. In the US however, migration to the Internet will result in slower growth in consumer magazine advertising.

Book publishing
Growing economies in EMEA will keep educational books growing, while online services in the US and Asia Pacific will drive markets.

Casino and other regulated gaming
US regulation on online gaming will have international repercussions and online and mobile gaming in EMEA will become big business.

Sports
Attendance will decline in EMEA but in Latin America economic growth and TV exposure will boost merchandising and sponsorship revenue. Sports rights fees in the US will be jacked up by new satellite and online sports packages. For the full report, visit www.pwc.com.

In the weeks leading up to the Castle 7s, promoters wearing Hypertags visited some of Lusaka’s top pubs, clubs and bars, allowing the brewery to evaluate its use before the main event. Over a quarter of those who interacted with promoters chose to download content. “Consumers interacted with promoters to receive branded content and were given an incentive to do so by the opportunity to win prizes. The idea was to get consumers to trial the new product. The non-returnable bottles are more expensive but they have a perceived status,” says Gordon Parkin, managing director, Brandscape Proximity Marketing. The interaction was free for consumers and no personal information was gathered. Some interesting facts about the Zambian market were gleaned from this exercise (including the number of high-end cellphones that are used in the market). Approximately one fifth of users interacted by infrared. “It turns out that Zambians have phones up there with the international market, which makes this kind of interactive promotion a valuable tool for us to use in building our brand,” says Julian Remba, marketing manager, SABMiller Africa and Asia.

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NEWS

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
Simon Webbe Coming Around Again Elisabeth Withers Be With You

Why it’s hot
Familiarity. His song No Worries was used extensively in the Telkom Closer campaign. Upcoming star who was the lead in the Colour Purple on Broadway – getting major play on Metro FM and Kfm The chill-out kings with a distinctive style Catchy with a similar sound to Stacey’s Mom – the bands recent hit. A classic that is loved by most South Africans. Powerful anthem with a current relevance due to staging of the theatre show. Australian singer/songwriter making inroads to South Africa. Very catchy, it’s happy, recognised and liked Well-known and great for a party Great cover of a classic

Genre and emotion evoked
Pop – warm, comforting, heartfelt and light-hearted. R&B – confident and soulful

Air Once Upon a Time Fountains of Wayne Someone to Love Fine Young Cannibals She Drives Me Crazy Lion King

Chill-out – relaxing, slow Punk pop – lively, catchy, sing-a-long and quirky Pop – humorous and recognised African/world – patriotic

Bob Evans Don’t you Think it’s Time Just Jack Starz in their Eyes Jamelia Beware of the Dog Jameli Ain’t No Mountain High Enough

Folk – intimate, personal, optimistic and sincere Pop – cheerful, fun, friendship, social, full of life Pop/Rock – liberating, aggressive, power to the woman Pop – positive and full of energy

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NEWS

Indoor report
Alternative media, washroom advertising, indoor media – whatever you wish to call it – is on the rise. “The indoor space is gathering momentum as there is a move to use space for maximum impact,” says Andrew Kramer, group managing director, Primedia Unlimited. While indoor media that is aimed at women in shopping malls is a sell-out, there are still those that are too conservative for washroom advertising (this is most likely due to stuffy marketers or media planners 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 washroom had a positive effect on intent to purchase and is complimentary to mainstream media. There is also great innovation taking place in washroom advertising, which includes talking frames. (Unfortunately, the 9 000 talking frames are sold out until the end of the year.) According to Kramer, a perfect partnership with the talking frames would, for example, be the use of more product giveaways inside washrooms, eg coupons, tear-offs etc, to further entrench campaigns. We’re going to have to wait some time for digital media as, “costs are coming down but it’s just not quite there yet,” admits Kramer. In the meantime we have full cubicle wraps that promise to be spectacular and door wraps, which are

appeal of the Olay ad included the beautiful model that was endorsing the product, the innovative and distinctive creative (especially the mirror) and the originality of the whole medium. There is still plenty of untapped space in 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 – www.marketingcharts.com
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. Marketingcharts.com 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).

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NEWS

Rituals
BBDO has released some of the findings of a study on habits, involving 5 000 people across 26 countries. It followed peoples’ daily routines and came up with five ‘rituals’ that reflect emotional states which can influence behaviour and have an impact on brands. The rituals occur from morning to evening and the first is ‘Preparing for Battle.’ People take an average of seven steps in the morning to get ready for the day – 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. More than 50 per cent of Indians go online before leaving the house and more Americans check e-mail than talk to their other half. In Saudi Arabia 80 per cent pray before work. ‘Feasting’ refers to eating and quite a few of us eat on the way to work. In Canada, 38 per cent aged 18-27 eat during their commute, with three per cent applying make up (although the number of women in Japan that do this exceed the global average by far). The car has become a place in which to eat, with 10 per cent of Americans and Chinese choosing to do so (12 per cent for those living in Saudi Arabia). ‘Returning to Camp’ covers our hometime rituals. Those from Brazil are busy bees, having an average of eight activities. A very high percentage of those living in Poland shower/bath at night. Nineteen per cent of Russians use the same products at night. ‘Protecting Yourself for the Future’ is about bedtime. Unlike any other women, Chinese females like to style their hair (15 per cent) and put on makeup (11 per cent) before bed. Over ninety per cent of Chinese people have a night-time ritual. South African Rituals will be revealed in the next issue of Marketing Mix.

Dynamic advertising
Ad agencies probably don’t think of Microsoft in terms of anything other than being a nice account to have or the company that facilitates their e-mail. However, thanks to partnerships with software specialists, a vertical solution has been developed specifically for the advertising

industry. The Microsoft Dynamics NAV business management, financial and accounting solution can be tailored to suit any size agency. “The value that it adds outside of the finance and accounting solution (for example, the CRM function, which includes sales and marketing) is massive,” says Tracy Newman, Microsoft Dynamics business group executive, Microsoft SA. According to Newman, the solutions marry personal productivity with business productivity. While the NAV solution provides 80 per cent of what an agency is looking for, the final 20 per cent is totally configurable. These customised solutions can now benefit everyone working at an agency, not only the financial and production departments. “They provide account executives with a 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 everyone.

NEWS

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. It works like this: If readers see the mobilitag icon in a print article, they can SMS a keyword and a website address will be sent back to them, giving them access to additional information. The six software products fit into the four fields (classifieds, editorial, advertisers and knowledge) that Mobilitrix is aiming at print media, and are currently undergoing beta testing. This new software also provides brand owners with the ability to

deliver virtual vouchers, web-links, time-sensitive offers and targeted campaigns to the market. “The company is entering a very exciting commercial phase with all of the software products coming online in the next few months. We are currently undergoing trials with selected partners to demonstrate the ability of the software tools to link the worlds of print and the web via the mobile device, thereby generating an additional revenue channel for the print industry,” says Chris Rolfe, CEO of Mobilitrix.

Are you innovative?
The Gordon Institute of Business Science (GIBS) and InnovationTOWN recently presented SA’s Innovation Score Card for 2007. The Innovation Survey focused on JSE-listed companies, as well as on 100 of the top unlisted companies. The results indicate the amount of coverage that the top 100 companies have received in selected media sets (print and TV). In a nutshell, this survey reveals whether or not local companies are improving their bottom line through activities that include: new product launches, business practice innovations, changes to business structure, etc. It also reflects how the media presents innovation to other stakeholders (and indeed to the rest of the world). According to Wadim Schreiner, MD, Mediatenor SA, the results show that overall media coverage of innovation is low, although the non-listed companies had a higher score at 3.15 per cent when compared with listed companies, which scored just over one per cent. What this means is that local companies are not taking innovation seriously or telling their innovation stories in the right manner.

Scores: Top 10 companies (ie companies with highest volume of innovation reports in the media). Company Volume (statements) Eskom Electricity 8547 Telkom SA (JSE listed) 6886 Sasol (JSE listed) 6802 ABSA Group (JSE listed) 6221 Transnet 6187 Anglo American Corp. (JSE listed) 6185 MTN (JSE listed) 5866 Standard Bank (JSE listed) 5680 SABC (Broadcasting) 5124 South African Airways 5112
A panel discussion generated some interesting ideas. Firstly, while the media may need training on the reporting of innovations and R&D developments, it is not the job of the media to pat companies on the back. It is the responsibility of each company to market its innovations in a way that interests the media. Although company CEOs are quick to claim that business innovations are a priority, few actually dedicate time and money to innovation. Conservative companies are reluctant to innovate and to engage in the kind of exciting marketing that would generate media coverage. Marketers must address the need for interesting and relevant innovation stories, while also encouraging company innovation. With regard to the media, it emerged that the Afrikaans media (print more so than TV) has a higher proportion of reporting on innovation (Sake24 scored 2.6 per cent, which was above the average of 1.07 per cent). South African TV news appears to have the lowest scores for reporting on innovation.

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NEWS

The stage is set
How do you take a magazine that has a very low circulation and in one fell swoop turn it into a recognisable brand, increasing sales tenfold and appealing to perhaps the most fickle target group in the market? For a start you get Colman Murray onboard, who at one time or another has been publisher or associate publisher of Time, Wallpaper*, InStyle and many others. Murray is now the proprietor, publisher and editor of Stage Magazine, a music magazine that used to have a print run of 10 000 and average sales of 3 000. In true 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 Chameleon, Louise Carver, Barney Simon, Rian Malan and Tamara Dey. The magazine has been redesigned and connects with music lovers. The target market consists of teens to 40-year-olds – high disposable income, upscale, urban modernists. It has a profile on MySpace while its own website is under construction. To build the brand in the relevant market, Murray has also backed up the relaunch with TV ad campaigns and barter deals with Channel O, Go and MTV. While Murray will apply for ABC auditing, the present unaudited figures for the last few issues stand at an impressive average of 17 000. Brand extensions, such as merchandise including T-shirts, are planned for the future. “I’m currently looking for a publishing partner and my main aim is to build the brand through aggressive marketing and through guiding consumer perception,” says Murray.

Thumbs up? Thumbs down?
The Khuza Awards are back for a third year to examine youth brand communication preferences. The 3 000 youth panelists (aged 8-23) will assess all the short-listed entries in a nationwide judging process from mid-August 2007, and then judge the top nominations with the best of the marketer and agency entries.

Remember, this is no panel of experts; if your advertising and branding campaigns have struck a chord with them, you’re a winner. Simple as that. A full research report will be available from HDI and an awards event will be held in late October 2007. For more information, visit www.khuza-awards.co.za.

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

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by fulvia becatti BRAND ANATOMY

Gloria Jean’s Coffees brings passion to coffee
cafe culture. This provides a huge opportunity to grow the existing market,” says Steve Gersowsky, MD, Gloria Jean’s Coffees, South Africa. The flagship store, based in the Fourways area of Johannesburg, has grown by between 35 and 40 per cent per month since it opened in February. “With a range of new products and the launch of a new national promotional strategy, we envisage that our growth will be approximately 15 to 20 per cent above what we initially budgeted,” says Gersowsky. He believes that brands cannot fool the customer when it comes to providing quality. “Customers know the difference between a great and an average product and in today’s over-saturated market it is quite simply not good enough to be good. You have to be great in order to capture the market’s imagination.” Word of mouth has boosted the brand’s entry into the local market but Gersowsky believes that the brand’s unique marketing strategy is what sets it apart. This is a dual system that focuses on national marketing as well as local store marketing. National marketing involves new product launches (to create an awareness of different product offerings), PR and new store openings. Local store marketing entails the implementation of different tactical programmes, like Frequent Sipper Cards, Whole Bean Club, Business of the Day and various other programmes that are run in-store. “All launches and tactical programmes are supported in-store with various point of purchase elements, such as sampling campaigns,” says Gersowsky. Agency Joe Public is handling the brand’s advertising, while Publicity Workshop has been tasked with national and local store marketing. “The real opportunity is that all our stores are franchised so the franchisees have the opportunity to tap into the local market and work in their areas. They are also able to download all available online marketing collateral from the international website and to adapt to the market they are trading in,” says Gersowsky. The store franchisees collaborate with the managing team to ensure that the different elements, including music, decor and furniture, are just right. Furthermore, all franchisees go through two months of intensive training at the brand’s ‘coffee university’ (which is currently setting up branches in Johannesburg and Cape Town). However, this is only if they have successfully gone through the stringent selection process (which includes several interviews and personality profile tests). Store franchisees are also required to submit monthly audited reports that are subjected to full day analyses by operators. Mystery shopper reports and various store visits on behalf of management also go a long way to ensuring that Gloria Jean’s Coffees only offers its customers the best. The food, store design, store ambience and product offerings need to be exceptional for this brand to stay afloat in today’s saturated market. “However, the real differentiation is implicit in the overall

Gloria Jean’s Coffees started out as a family-run coffee shop based near Chicago in the US, almost 30 years ago. Today Gloria Jean’s is the second largest coffee retailer in the world, boasting 800 stores worldwide. In Australia, Gloria Jean’s Coffees is the market leader, with more than 400 stores across the country to its credit. Gloria Jean’s Coffees has now arrived in South Africa. It is investing over R45 million in the local development and rollout of the brand over the next few years. “South Africa has a huge emerging middle class consisting of people who are aspirational and welltravelled, who are accustomed to European

Brand history:
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In 1979 Ed and Gloria Jean Kvetko opened a small coffee shop near Chicago, Illinois, in the USA. Gloria Jean successfully introduced gourmet coffee to the US market, where ‘gourmet’ came to mean ‘good quality’ rather than ‘high price.’ By 1986 Gloria Jean’s was franchising to third parties. Over the next few years Gloria Jean’s Coffees won several awards, including the title of American Entrepreneur Magazine’s ‘#1 Gourmet Coffee Franchiser in America’ (for five consecutive years). In 1995 Nabi Saleh (an Aussie with several years of experience in coffee and tea) and Peter Irvine (a franchising and branding specialist) partnered to take the Gloria Jean’s Coffee brand to Australia, where they acquired the Australian master franchise. In 1998 they franchised the first Australian store and during the next six years they opened 185 stores across Australia. It was not long before the pair (trading as Jireh International Pty Ltd) gained the international brand rights (which excludes trading in the USA and Puerto Rico). In 2006 Gloria Jean’s Coffees was named the Australian Superbrand of the Year, the Best Retailer 2006, the best Franchiser 2006 and the best Franchisee 2006. Aside from gourmet coffees, Gloria Jean’s also sells pastries that are imported from Europe and baked in-house. Their fully trained baristas are encouraged to develop their business skills. The brand supports three international charities worldwide, whilst the stores support local charities.

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package and isn’t tied to the coffee, food or design. It lies in the overall passion for what we do. How we go about looking after our guests with humility and love is the key principle that we would like to build the business on,” says Gersowsky. The overarching store concept is flexible, given that it is modular: “It can easily fit into either a concession in a department store, an Internet café or a small space under a staircase in a shopping centre. It can even operate as a mobile unit that can cater for events or as a store front in a large shopping centre,” says Gersowsky. The stores are all similar in design but each one has a unique feel – almost anti-brand. “As our roll-out is countrywide, it is vital that we are advised by our franchisees with regard to the nuances that characterise each region and that we adjust to suit that market,” he says. The store environment is appealing, with a focus on design. Some of the stores are currently operating out of Wordsworth bookshops in Knysna and the V&A Waterfront, and all stores will soon be linked to a dedicated music channel designed specifically for the brand. Store personnel are enthusiastic and are encouraged to feel a sense of belonging. Gersowsky understands that they are responsible for creating the right vibe and driving consumer loyalty. “Unlike other traditional coffee shop brands, we do not run a full scale restaurant. The interaction between the guest and the brand takes place through the barista and the team leaders behind the service area,” he says. Staff development and training is a top priority. Gersowsky maintains that the lack of skills development represents a challenge in the South African market. He acknowledges that one of his opportunities is to create a business in which the staff have an

Gloria Jean’s Coffees: the brand
Core market demographics: females, 18-39 years, with a segment aged 25 to 30 years who are mature coffee drinkers Core strategy: premium coffee supported by quality supplements (decadent pastries and gourmet sandwiches) Brand values: community involvement (the store is regarded as a place in which to meet or socialise, as well as a place of refreshment); great service, great ambience and decor; the customer is the centre of Gloria Jean’s Coffees equal chance to do well, based not only on skills but also on the desire of each individual (as well as the team) to achieve success for the collective good. “We aim to develop our people at the coal face. This will hopefully provide an opportunity to empower our staff and to create a brand that is owned by the hearts and minds of our people. For me this is more important than anything else if we are to differentiate ourselves,” says Gersowsky. Another significant differentiator is the brand’s product offering (which is wider than that of niche coffee retailers). “We import the top two per cent of the world’s finest 100 per cent Arabica beans, which are roasted by our own roasters in Sydney, Australia. We have 53 different varieties of beans that range from single origin beans, flavoured beans and blended beans to an extensive range of Fair-trade beans, all of which are also available in decaffeinated products. The brand does not only focus on hot branded drinks: it also has a wide variety of over-ice cold beverages, fruit based chillers and smoothie based drinks,” says Gersowsky. The food offering includes a wide variety of fresh sandwiches, baguettes, wraps and salads, which are all prepared daily on site. Added to this, Gloria Jean’s imports an exclusive range of confectionary from the UK, produced in some of Europe’s leading bakeries. These products are kept frozen and are then freshly baked in stores on a daily basis. Gloria Jean’s even makes use of leftover products by offering them to local charities. “Nothing is held back at the end of the day: it is given away to charity at the end of each shift,” says Gersowsky. While the focus will always be on their gourmet coffees, Gloria Jean’s understands that the consumer’s overall experience is important. Their exclusive food offerings promise to add a unique dimension to their customers’ coffee drinking experience. As the brand rolls out across South Africa over the next few months, it will rely heavily on finding franchisees that share in the collective brand vision. “We have created a detailed process that allows us to ensure that we attract the right people to our brand. The reality will always be that the future of the brand depends on the perception that guests have of it. The customers will vote with their feet,” says Gersowsky. He believes that their aim is to create a culture of passion around offering the supreme cup of coffee – with new and innovative latte art work – produced by the finest baristas in South Africa. Gloria Jean’s Coffees plan to open 16 new sites during this year, including, amongst others: Cavendish Connect; Tygervalley; Bayside; O.R. Thambo International Airport; Vincent Park in East London; Cedar Square in Johannesburg; Bridal and Co; Rivonia, as well as Loch Logan in Bloemfontein. What does the future hold for gourmet coffee brands? “The future trends in coffee drinking will evolve toward drinking Fair-trade and organic coffee from roasters who embrace their responsibility to establish a sustainable and lasting relationship with the coffee farmers themselves. We will also see a strong growth in high quality chocolate based drinks, as well as a significant growth in single origin leaf tea drinking,” says Gersowsky. B

Awards and accolades:
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2006 International Franchiser of the Year, named by the Franchising and Licensing Association of Singapore (FLA) and the World Franchise Council Named 2006 Emerging Exporter in the Premier’s NSW Exporter of the Year awards, held by the Australian Institute of Export Franchise Export Award of the Year 2006 at the PricewaterhouseCoopers Excellence in Franchising Awards American Express Supreme Reward for Best Retailer Bank of Queensland Best Franchise Awards Franchiser of the Year in the PricewaterhouseCoopers Excellence in Franchising Awards 2005.

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by helen mcintee EXPERT OPINION

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

There are millions of customers out there who still rely on good old traditional media options to be kept informed.

I know many people who would disagree with me; people who feel that the Internet, CD ROMs, smart cards and satellite technologies are the future. However, consider the following: Statistics South Africa has issued a mid-year population estimate of approximately 47.9 million people in our country. Although Nielsen/NetRatings has indicated that Internet usage has ‘soared’ over the past two years, as of May 2007 it was still only 3.8 million. This means that the remaining 44.1 million people do not have access to the Internet. Added to this, only 41 per cent of South

Helen McIntee
director, IMM Graduate School of Marketing

(011) 628 2038 helen@imm.co.za

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EXPERT OPINION by richard duncan

Wolves in sheep’s clothing
For some individuals, recruiters come a close second to second-hand car salesmen, double glazing or door-to-door salesmen. Generally speaking I would support this sentiment, as it appears to express the rule rather than the exception, although there may well be some professional recruiters who are worth their weight in gold. The recruitment consultant has two roles: firstly, to sort the wheat from the chaff and secondly, to work hard to identify potential talent when it is not possible to find the right candidates (either due to the specialised nature of the job or to a general scarcity of skills in the market). In both cases there is a good chance that the recruiter will have to earn his/her fee. Recruiters play a key role in finding talent, as well as in screening applicants, which relieves their clients of an enormous burden. This is no easy task since they need to be sufficiently briefed on the culture of the organisation, the details of the job they are recruiting for and the peculiarities of the work environment. If not, they are liable to waste time in shortlisting inappropriate candidates. Complaints about the cost of recruitment consultants’ fees and commissions are not uncommon. However in my experience, companies that are running lean that take on the responsibility of managing the full recruitment process, tend to expend more in terms of man-hours and lost productivity or profitability than the cost of the said recruiters’ fees. Having exercised and observed both recruiting methods, I favour the use of specialists. Nevertheless, there is a caveat to my support of the practice of using recruitment consultants or headhunters: there are more cowboys and cowgirls than gems out there – by a long shot. This applies to the UK as much as to South Africa and Australia. Having functioned as both a candidate and a recruiter in all three markets, I feel well placed to make this observation. Recruitment requires considerable research and preparation: identifying top talent, keeping in touch and when required, trying to dislodge people from their current positions. In addition good recruiters need to keep abreast of industry and client developments. Ultimately a good recruiter should perform the role of a trusted business partner and consultant for the client. In order to do this he/she needs to have an intimate understanding of the clients’ category and business. Sadly, I can count on only one hand the number of recruitment companies in each market that do a truly professional job. In SA, I have been impressed by recruiters such as The Connection, Viv Gordon and Anne Pratt & Associates. Internationally, I rate Korn Ferry at the top of the heap and I believe that Hourigan International in Australia is the best of the best. While this is not to say that there aren’t others that are worth mentioning, all of the above-mentioned companies seem to go the extra mile for their clients and candidates alike, thoroughly briefing, preparing, researching and screening their applicants. Sadly, the vast majority in each market seem to rely on the sheer volume of the recruitment game. They use more of a shotgun ‘spray and pray’ approach, choosing quantity over quality and not screening candidates properly. Despite this shoddy approach to recruitment, most continue to survive, receiving payment for their services and going on to ‘place’ another day. However the day of the cowboy is almost gone, given the growing use and power of online as a recruitment vehicle, as well as the likes of Monster.com, Seek and Myjobs.com. With online even the smaller companies have a more affordable alternative to using recruiters. When this form of the recruitment business reaches maturity, only the very best recruiters will survive. The general global shortage of skilled talent (which is particularly grave in SA) means that recruitment across borders is all the more essential. In order to survive in the future and not be reliant on the bread and butter of low to middle level job placements, local recruiters will need to develop alliances with international players in key feeder markets. To supplement its local gene pool, Australia draws its imported talent from the UK, South Africa, New Zealand and the US. The shortage of skills in South Africa is well known. There are also a number of unique obstacles that continue to stand in the way. If the country is to compete with the rest of the world, perhaps it’s time to think outside of the box. g

For South Africa, the shortage of skills is well known, but the country has a number of unique obstacles that continue to stand in its way. If the country is to compete with the rest of the world, perhaps it’s time to think outside of the box.

Richard Duncan
Sydney, Australia

+61 41 154 9791 lduncan@bigpond.net.au

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by fulvia becatti MARKETING TO WOMEN

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

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(or pink cocktails) to gossip and chat for hours on end. So what about it? Well, perhaps you have even noticed that more women are part of the burgeoning middle class than ever before (and indeed of the corporate world). “Women have risen in stature and have become more financially independent and competitive within the workplace,” says Georgie Dagnall, insight associate director, Added Value. Robyn Farrell, director, First For Woman Insurance Brokers, maintains that the increased earning and purchasing power of women, together with the greater number of households that are headed up by women, represent huge potential for companies. Women.24 recently did a survey of women and found that there is a culture of ‘superwomen’ emerging: they are self-employed; empowered; working in their communities and filling roles as primary caregivers and household bread-winners. According to a recent article in The Times (5 July 2007) women constitute a third of SA’s 5703 new dollar millionaires. MarketingProfs.com (13 June 2006) refers to reports that the number of women earning US$100 000 or more has tripled during the past ten years. The income generated by men has not fluctuated much in the last three decades, while the income generated by women has increased by 63 per cent. As Grant Jabour, head of marketing, Planet Fitness, points out, these women are still making the decisions in the home with regard to health and general purchases, as well as diet and the food that is consumed by their families. “If we don’t pay attention to this market, we are losing touch with the person that is making the household decisions,” he says. Farrell agrees: “Women are the world’s most powerful consumers and because their earning and purchasing power is greater than ever before, they are the largest and fastest-growing market in the world.” This means that their word of mouth marketing capabilities have become the female super-power – this is no longer simply a female curiosity (like multi-tasking or lip-gloss). “Word of mouth is more prevalent among women and they are more likely to refer others – both men and women – to brands that impress them favourably. In essence, women buy what women sell. However, the reverse also holds true,” says Farrell. Jabour concurs, maintaining that women not only communicate better than men do; they also communicate

Women’s rights:
According to the global Voice of the People survey released by Gallup on 8 March 2007 (International Women’s Day), 38 per cent of the world’s citizens believe that women do not have equal rights. At 68 per cent, this figure is the highest in China, while it is 36 per cent in Africa. The study also asked respondents whether they agreed with the statement that education is more important for boys than it is for girls. Seventy per cent – 94 per cent of Americans and 74 per cent of Africans – disagreed, while in China, Senegal, Congo and Gabon, the majority of respondents agreed with the statement. When asked whether both the husband and wife should contribute to household income, the vast majority (79 per cent) agreed. The Japanese were the least convinced, with only 40 per cent agreeing.

Did you know? (Courtesy of Eighty20’s Fact a Day)
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More than 70 per cent of the members of savings clubs/umgalelos in South Africa (as well as in Botswana and Zambia) are women (Finscope 2006) Seventy seven per cent of South African women are interested in Gospel music Approximately five million SA adults, three quarters of which are women, claim not to be interested in any sport (AMPS 2006 RA) More than half of all tennis players in SA are women (AMPS 2006 RA) The unemployment rate for black women aged between 15 and 65 years is 47 percent (their highest level of education is a matric certificate) (LFS 2006) The average monthly salary of a domestic worker in Gauteng is R879 and in the Western Cape it is R919 (GHS 2005) Twenty eight per cent of Cape Town women aged between 25 and 50 describe themselves as single (AMPS 2006 RA) Thirty three per cent of SA females between the ages of 25 and 29 are HIV positive (South African National HIV Survey, 2005) One third of the women in SA have participated in one sport or another during the past year, with walking/hiking being the most popular (1.1 million female participants) (2006 AMPS RA) Of the estimated 600 000 to 800 000 people who are ‘trafficked’ across international borders each year, approximately 80 per cent are women and girls and up to 50 per cent are minors (US State Department) Ten per cent of women smoke at least one cigarette per day (AMPS 2006 RA) Four per cent of the people who are in South African prisons or correctional institutions are women (AMPS 2006 RA) Sixty six per cent of black women – compared with three per cent of white women – in SA live on less than R20 per day (AMPS 2006) Twenty six per cent of black women – compared with 60 per cent of white women – over the age of 18 are married (AMPS 2006).

Ubersexuals: the gender blender phenomenon:
Georgie Dagnall, insight associate director, Added Value, has found that brands are beginning to take advantage of gender wars and the gay mainstream. Women are becoming freer and are succeeding in the workplace and men are becoming increasingly adept at handling the home. “The aspirations and opportunities of men and women are beginning to level out and they are forging a larger repertoire of identities, taking on more diverse roles and displaying various facets of their identities across the different dimensions of their lives,” says Dagnall. As gender boundaries blur, we see the emergence of exciting new brand platforms (think the new Nivea Men range; Jean-Paul Gaultier’s male make-up range; Dolly Girl Fragrance in the UK and First for Women insurance).

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more widely than men do - they are the perfect grapevine. DiVita points out that women are connecting to the Internet and that they are increasingly becoming a dynamic force to be reckoned with. “These networks of women, both business and personal, will drive marketing and sales, in ways we don’t even recognise yet.” She predicts that select groups of women will dominate this landscape and become the influencers that other women look to for advice and insight (think Oprah, Martha Stewart and Noeleen). “And watch men step up. The men who are not afraid to collaborate with the women of their lives, and to form partnerships that will be strong, exciting and successful,” says DiVita. It’s also important to consider that women are more inclined to establish long-term brand relationships that take loyalty to the next level. “This means that every marketing Rand that is invested in female customer acquisition results in a higher retention rate,” says Farrell. In fact, experts insist that successful marketing to women may yield higher returns than marketing to men. However, the keyword here is successful: companies need to be honest and open in the way that they market to women. They need to connect with women and encourage them to participate in the creation and design of their products. “The truth is, we live in a customer-centric world now. If companies are not engaging in conversation with their women customers, they’re likely to find those customers opting to shop elsewhere. At the click of a mouse,” says DiVita. It should be obvious that women don’t want all their brands and products to target them with pink ruffles, glitter and cutesy lady bugs. According to DiVita, the biggest mistake that a marketer can make is to assume that women are all alike. “Or that we all like pink, frilly stuff. Or that we’re afraid of technology. Today, in the US at least, women are opening new businesses at twice the rate of men. And, they’re eager to adopt new technologies to make that business a success,” says DiVita. What women do want are products that help them to enhance and sustain their busy lifestyles, believes Mike Middleton, Cadbury South Africa portfolio manager for Chocolate. Woolworths has an affluent female bias, and they have recognised that women influence the majority of purchase decisions. According to Charmaine Huet, head of marketing, Woolworths, the trick is to continually rede-

WOW:
The Women On Wheels supplement has grown substantially since Associated Magazines started it in 2004. “Women On Wheels is the only motoring publication in the South African market that is targeted at women,” says Julia Raphaely, MD, Associated Magazines. The supplement was started with the aim of offering the SA motoring industry a unique environment in which to advertise to Associated Magazine’s huge base of female readers. While these women are not traditional car magazine purchasers, they nevertheless buy cars and have significant spending power when it comes to family car purchases. The supplement also boosts circulation and revenue and adds editorial value to Associated Magazine’s midwinter issues. “We measure the growth and success of WOW by the advertising pages we secure for the supplement as well as by reader feedback… advertisers see value in WOW because of the way it’s positioned. It addresses the female market’s need to make informed decisions about anything to do with cars,” says Raphaely. Although Nedbank Vehicle and Asset Finance has been WOW’s main sponsor since the launch, more and more motoring advertisers have added the supplement to their schedules over the past three years. “Reader feedback has been extremely positive: many readers have contacted us to say that they’ve taken the WOW supplement with them on their car-shopping sprees,” says Raphaely. WOW is bagged with the July issues of Cosmopolitan; O, The Oprah Magazine; House and Leisure and Marie Claire.

Health and beauty:
Universal McCann recently researched the womens’ market in South Africa. The following feedback is for the health and beauty category and is from research groups that were held in 2006. G Black women are very aware of their skins and will not take any chances with it (although they will experiment with hair products); they spend more on face products than on body or hair grooming products G Advertising for personal grooming products, which makes use of scientific jargon, alienates women G Girls are getting into the face-care category at an increasingly younger age (usually in the transition from junior to high school); habits that are formed at this young age tend to stick with them for life G Mothers and friends have the highest influence with regard to brand/product recommendations G Ageing is less of a concern for black women; they are more concerned by oiliness and acne. Ageing is the primary concern of white women G Younger female respondents admit that once they have found a product that suits them, they remain loyal to it and are prepared to pay anything for it G Women do not connect favourably with magazine sampling (samples need to last more than one day and more than one application is required to really see results) G Advertising in general is being met with frustration, especially as the number of advertising messages is increasing and as few companies/brands truly acknowledge a woman’s individuality G The plethora of products and brands available in the store environment is confusing to women, who would like to see more consultants and more toll free information call centres being established to deal with their questions in an honest way G Race is becoming increasingly irrelevant in the young market with regard to media audience fragmentation; young black females are watching the same TV programmes that young white females are watching.

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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 comb the world in order to bring our customers products that we feel will satisfy their demands for quality, style, and taste.” Identifying trends in the female consumer market is not a simple process: women are diverse and varied, ranging from teens to mums and even single businesswomen. To identify the trends that are available for each cross section, it’s important to consider where women shop, as well as how they make their purchases. Behavioural marketing becomes an important tool in understanding who the customer is and how she likes to be marketed to. “Be aware that women are talking to each other more than ever before, via chat rooms, forums, blogs, and wikis. Do you encourage interactive conversation by offering your women customers a chance to visit your blog?” says DiVita. She points to the growth

Chocaholics Anonymous:
Women have a love/hate relationship with chocolate. Is chocolate going to suffer with the growing emphasis on health and diet? According to Mike Middleton, Cadbury South Africa Portfolio Manager for Chocolate, women will continue to enjoy confectionary products for various reasons that range from on-the-go snacking to a bit of ‘me’ time. “Women are becoming increasingly health conscious about what they eat, so we are starting to see an increase in the number of health offerings on the market,” he says. He points to snacks that combine healthy ingredients with chocolate (such as Snacker bars). “Green and Blacks has just been launched in South Africa, offering consumers organic chocolate. Dark chocolate (or Bournville) is considered to be full of anti-oxidants, so we are seeing a good growth in this segment of the market,” says Middleton. Cadbury promotes the notion of responsible consumption: they promote the Cadbury Games events, which endorse a healthy and active lifestyle amongst schoolchildren.

Dove: real beauty
Dove has been campaigning for real beauty by researching the notions that impact on womens’ perceptions of beauty and by challenging society’s ideal image of what beauty is. Visit www.campaignforrealbeauty.com for more information. Dove has also driven research into the different stereotypes of beauty. Carried out across ten countries in 2005, it built on the findings of Dove’s earlier global study (which examined beauty beliefs). The study was carried out because women are increasingly subscribing to unrealistic standards of beauty that are narrowly focused on physical attributes, rather than encompassing broader beauty traits. The study threw out some interesting findings and while they appear to be common sense, it is alarming that Dove had to do such extensive research to bring these trends to light and to get the world thinking: G The majority of women globally believe that beauty is too narrowly defined by physical attributes, with the exception of China, where western beauty ideals are a newer phenomenon G Nine out of every 10 women globally agree that it is difficult for them as individuals to feel beautiful when confronted with today’s beauty ideals. Italian women had the lowest desire for physical change, while Japanese women, followed by British women, had the highest desire for physical change G Some of the features that women would like to change about themselves include their hair, their skin colour and the shape and colour of their eyes. In Brazil, where hair texture, length and colour are indicative of social class and race, long straight hair is what women most desire G Only two out of every 10 women are very satisfied with their overall

physical appearance, body weight and shape. Less then two out of 10 women report having ‘very high’ self esteem. Girls between 15 and 17 are the most likely to report low self-esteem. Saudi Arabian and Mexican women have the highest appearance satisfaction and self-esteem Generally when women feel good about themselves, it is projected into feeling confident, loved, healthy, energetic and smart (these characteristics are also likely to promote their active involvement in daily life) While the majority of women turn to conventional beauty practices to enhance their looks, a significant minority are also adopting more extreme methods (cosmetic surgery, for example). A quarter of women would consider having plastic surgery in the future, while only two per cent of women have already had surgery One out of 10 women acknowledge eating disorders (bulimia, anorexia, etc). While this number seems low, it is often underreported and in some cultures this behaviour may have become commonplace The sooner girls become concerned about their overall appearance, body weight and shape, the lower their satisfaction and self esteem are as adults Peers, mothers and the media are the most powerful influencers with regard to feelings about beauty and body image (men and boys play a secondary role in influencing these feelings). When mothers are reported as the primary influencers, other family members are likely to play a more significant role and the media play a less significant role. However, when peers (girlfriends) are reported as the primary influencers, the media and famous individuals play a more significant role.
G

G

G

G

G

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of online shopping and the trend towards rating products and services, as well as to the increase in word of mouth marketing. “Women are savvier than ever before — period! They seek out information about important decisions in every area,” says Julia Raphaely, managing director, Associated Magazines. Jabour speculates that women are exposed to more at a younger age and that they are therefore also making decisions at a younger age. They are leaving home and socialising earlier on. They are educated and the questions they are answering for themselves are a lot deeper. They are earning more money at a younger age; marrying later and having children later on in life. Added Value has found that SA women are increasingly seeking to set themselves apart from the rest and asserting their individuality. These women

Toys for Girls:
SA women are very in touch with their sensuality and their sexuality and are very curious to try new things, reports Catherine Lauria, founder of For Women Only (the sole South African distributor of a range of pleasure products imported from Germany, Paris, London, New York and San Francisco). Currently FWO supplies The Velvet Glove in Parkhurst, Le Boudoir in Fourways and Cake in Cape Town. Lauria believes that SA women are less conservative, even though almost half of the SA women surveyed by women24.com’s 2007 Female Nation Survey, stated that they never masturbate. “We base this on the sheer volume of women who are either interested in purchasing sexual products or who have already purchased them from us,” she says. Furthermore, judging by Lauria’s experiences at Glamour Parties and the FWO service, SA women are becoming more sexually liberated. “A UK-based publication survey named SA as the number eight consumer of sex toys in the world! South Africa is therefore in the top ten users of consumer sex toys worldwide – higher than the whole of Europe,” says Lauria. The FWO consumer is a working woman, who is sophisticated and looks after herself and her well being. She spends an average of R700 per purchase. “An average of 120 to 140 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!

MARKETING TO WOMEN

are also driven by the feeling that there are no limits to what they can achieve. “For this reason choice is key. Companies need to provide options in order to stay close to South African women,” says Caroline Rait, insight project director, Added Value. By drawing on trends that have emerged from local studies into the buying patterns of women in the financial services industry, Farrell concludes that women process information differently to men, using both qualitative and quantitative criteria to make their decisions. They ask a lot of questions and tend to keep on asking until they understand the information thoroughly. The buying process matters as much as the product itself (women are holistic thinkers and identify with a good product that has a comfortable, pleasant sales process). Women are also loyal shoppers, for a host of reasons. They will buy again from the same source if the experience and the product are a fit. Women have a great deal to do and too little time to do it in. Consequently, creating a sales process that respects their many commitments and the multiple hats they wear goes a long way to creating a long and fruitful relationship with them. Huet adds that women also require easy solutions; they are exposed to international trends, and they demand fashionable products. They purchase according to their lifestyles. On a slightly different note, consider the following innovations: l German hardware store, Hornbach – according to a Spiegel Online International report (May 14 2007) – is offering tiling courses designed specifically for women. Their competitors have redesigned their stores with the aim of making the shopping environment more attractive to female shoppers. l DaimlerChrysler’s engineers are experimenting with seatbelt designs and handbag compartments (having identified that women constitute the majority of the market for motor vehicle purchases in the US). Local marketers need to look at South African women within the context of the family. “It’s key, I think, to remember that women are smart, focused, and always looking for ways to serve – their families, their communities, and themselves. They do this to ensure a better future for us all. Learn who they are, first. Then, what’s important to them. And market accordingly,” suggests DiVita. g

All About Women Consumers:
All About Women Consumers is a guide to understanding the behaviour, attitudes and spending habits of today’s women. Published annually, it provides an overview of the attitudes, behaviour and preferences of women on a wide range of subjects – from packaging, sports and technology to arts and entertainment etc. It promises to improve the way you market your brand, in this way attracting more women to your products and services. The new 2007 edition is available for downloading in PDF format or for purchase in a print edition from EPM Communications (based in New York). Visit www.epmcom.com/aawc for more information and to place your order.

Psychologies
Psychologies magazine sold 35 700 copies of its launch issue and while the audited results will only be confirmed shortly, editor Mari Lategan is thrilled with the progress of the mag (which is published every alternate month). She is expecting similar results from the second issue. “We recognised a gap in the marketplace and our research proved to be correct… In South Africa the marketplace is ready for a magazine that engages with a unique segment of a sophisticated audience, which is traditionally not covered by female consumer titles,” says Lategan. The magazine’s editorial focuses on selfaccomplishment, better living and relationships. It acknowledges that a woman’s life revolves around work, friends and family commitments and it responds to the desire of women to improve their personal lives. Psychologies is targeted at a highly educated customer in LSM 10, of an average age of 38 years. This is a savvy consumer, who understands labels and quality. She is educated and discerning and has a fulfilling career that she juggles with a demanding home life. She seeks a more balanced life.

Spitz shoes: luxury!
Luxury consumerism started with the Regan administration. Louis Vuitton helped it along in the 80s, as did American Express’s Platinum card, says Spitz shoes marketing director, Tania Morgan-Weyer. Since 1994 the South African masses have had considerably more access than ever to opportunity and disposable income. “There is more conspicuous consumption in an emerging market. There is old luxury and new luxury. Old luxury refers to craftsmanship, heritage and so on (noun),”, says Morgan-Weyer. Today we talk about new luxury which is a verb, and is really focused on experiences (from shopping experience to experience of wearing or using the luxury item). Note that new luxury in no way detracts from the craftsmanship and product intrinsics which is so important; these are taken as a given or are passport factors. The product extrinsics are what sets brands apart today. The growing importance of the shopping experience plays a significant role in extrinsics. Luxury brands follow natural trends from classes to masses. Once luxury brands have become more accessible, it is imperative that they evolve and innovation is critical. Prior to 1994, black women followed trends to fit in. These days there are more consumers in this group who are more confident and who wish to make an individual statement, says Morgan-Weyer. Spitz’s customers represent a diverse group of South African consumers and are especially favoured by Black Diamonds and the emerging sector. “They understand value and will spend a R1000 or more on a pair of shoes. They have an emotional connection with Spitz and Spitz shoes,” says Morgan-Weyer. She points to the large growth in rural areas which is led by property developers developing shopping hubs in the likes of Thoyandou; Rustenburg; Polokwane; Witbank for example, as well as the townships. “Township markets are aspirational. You have to express yourself, and show that you’ve arrived. And one of the first accessible means to do this is fashion,” she says.

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BLACK DIAMOND by fulvia becatti

Black Diamond II: On the move
South Africa’s Black Diamond group has grown by 30 per cent since the first Black Diamond study was conducted. They represent 2.6 million individuals. Prof John Simpson, director, UCT Unilever Institute, reports that this market has grown very quickly in a very short space of time and that BEE is one of the major driving forces behind its growth. It has increased in value and is worth R180 billion in spending power, comprising 28 per cent of SA’s total spend (thanks in part to better incomes and greater spending power). Researchers estimate that, based on these figures, Black Diamonds will outspend all of SA by the year 2009. The Black Diamond group are the only one of all the population groups to show an increase in buying power. This demonstrates that Black Diamonds have furthered themselves in terms of their careers. Prof Simpson points out that credit has played a major role, especially with regard to the purchase of cars and homes (these are also the two areas of greatest financial debt for this market). Their average monthly income has risen to R1 650 (from R1 550 in 2005). However, one has to question whether this average income substantiates their position as an emerging middle class, since this average The complex mindset of the Black Diamond has also shifted. This is a future focused market.

Who is the Black Diamond?
This is the middle class; black South Africans; wealthy and well-salaried, in suitable occupations; includes youth; are acquiring homes and cars; credit worthy. They do not give up their culture as they evolve. There is also a trend towards entrepreneurial activity.

The Black Diamond segments: Mzansi Youth:
G G G

G

G

G

G

many are new entrants to the middle class majority live in the townships contribute to household expenses even though most are students dream big but must achieve now (straddle two worlds) under pressure to succeed; have an awareness that their parents made sacrifices so that they could have better opportunities have a preference for local content; free-toair TV is popular, as are the Daily Sun and the Sunday Times cellphone penetration is high but do not use MXit.

G

Start-me Ups:
G

G

G G

look like Mzansi Youth but they have more cash and are more valuable (have greater buying power and are acquiring key assets, ie cars and homes) less pressure to send money back home have realistic dreams and know how to get

G

majority are not sole bread winners – household income is supplemented by partners or parents) a lot of confidence and drive to succeed, although debt is an issue (still acquiring key assets) segment characterised by the phrase proudly providing; see their success more closely linked to their children high incidence of cellphone banking

Established:
this segment is the middle class not, as originally thought, older than 49 years (actually around 35 years) G employ domestic workers and have M-Net and DStv in their homes G very confident G interestingly, they are most in touch with the townships G understand that their success is nothing if they cannot give back to society/community G invest in their children, in property and in business G enjoy listening to Metro FM, as well as to stations that broadcast in the vernacular. Prof Simpson is adamant that the Black Diamond is not a myth and that the market will drive future growth in South Africa. The reality is that the Black Diamond has no problem managing debt or credit (although young families face a greater struggle than most). As far as future growth is concerned, researchers suggest that there will not be much change in terms of the segment profiles. B
G G

The Black Diamond market has grown very quickly in a very short space of time and that BEE is one of the major driving forces behind its growth.

income places them between LSM 3 and 4 (is this the suburban middle class?). In the previous Black Diamond study, moving from the townships to the suburbs was identified as one of the major aspirations of this group. This study shows that the Black Diamond has indeed achieved what it set out to do: 47 per cent now live in the suburbs (up from 23 per cent in 2005). Black Diamonds take pride in their homes, which have become an important part of an overall status symbol: they spend money on decor and home goods.

G

G

there; self improvement is a priority quest for financial independence and freedom from debt preference for SABC 1, local news; there is also a high incidence of newspaper readership (this is an info hungry market).

Young Family:
G

G

one of the biggest segments within the market (both in terms of value and numbers) greatest number are single mothers who are under a great deal of pressure (although the

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

by michelle sturman CENTRAL SA INTELLIGENCE

What you didn’t know...
The Central SA region is now officially an entrenched and fully formed brand, which is used by our largest corporate companies to express the area that they cover. Started by OFM a few years ago to convey its large footprint across the Free State, North West Province and Northern Cape, it covers six metropoles, including the Vaal region. The good news is that the Central SA region is expanding, with plenty of development taking place, along with a growing tourist trade and enough extremely wealthy inhabitants to keep even the biggest and most sophisticated brands happy. Bloemfontein and the region. There is a boom here and probably more disposable income than in Johannesburg, since the spend here goes much further,” says René Koen, business development manager, Mahareng Publishers (a joint venture with Caxton and OFM, publisher of OFMwheels.co.za and GetIt on license). She offers this as someone who has recently moved from Johannesburg to Bloemfontein. Alna Retief, director of local glossy magazine, Passi, agrees with Koen, saying that there is less

MEDIA IN THE CENTRAL SA REGION RADIO
RAMS June 07: Free State: hours spent listening: 5h13 mins per day. Highest time spent listening across all provinces – highest. North West 4h 34 Northern Cape: 3h 52

OFM

• 7 Days: June 07: 578 000
July 06: 470 000

• Ave Mon-Fri: June 07 358 000
July 06: 318 000

OFM Demographics
Age: 16-49: 81% LSM 4-6: 31% LSM 7-10: 57% Male: 51% White: 46% Black: 36% Coloured 18% Income: R14 000+: 14% R8 000-R13 999: 33% R3 000-R7 999: 26% Regions: Free State: 48% Northern Cape: 27% North West: 20% Vaal Triangle: 3% Other: 2%

Courtesy of Ryno Cloete

However, there is still a perception problem regarding the region – one that needs to be put to rest permanently. While the major cities are not vast metropolises, or tourist traps like Cape Town, and while they may not have the frenetic pace of Johannesburg or the laid-back attitude of Durban, they are also not the backwater towns that a lot of media planners and marketers believe them to be. “There is huge growth taking place in the region in terms of social structure, construction, business, etc,” says Nick Efstathiou, marketing manager, OFM, “and it’s developing along with the rest of the country.” These perceptions are extremely unlikely to change, unless, of course, you live in the Central SA region or bother to take a trip to the area to look around and observe the pace of the growth and economic development for yourself. This represents a problem as advertising budgets are being decided outside of the region’s borders. “There are many misconceptions about

stress, a lot of opportunity and the same money – the only aspect that could be improved is the nightlife. Having said this, there are now six casinos in the region, including two that have opened within the last two years: Windmill Casino just outside of Bloemfontein and the newly opened Frontier Inn & Casino in Bethlehem. The Frontier Inn opened its doors in December last year and the total capital investment by operator Peermont Global was R104 million. The Windmill Casino opened in October 2005. According to the Casino Association of South Africa, it has 855 employees and has had over one million visitors so far.

Courtesy of Hein von Hörsten

AMPS 2006
OFM ave age: 37 Ave HHI: R8 392

10 benefits of OFM
G G

G

G G

Development
The pace of development is not the same across the whole of the Central SA region,

G

G

G

G

G

No. 1 radio station in central South Africa. The leader in delivering the affluent market in central South Africa. OFM has an intimate understanding of what makes Central South Africa tick. Largest regional footprint in South Africa. The breadbasket and mining powerhouse of South Africa. First point of reference for up to the minute news, traffic, weather and sport. Has become synonymous with the community through its charity work and delivery of the largest events and festivals in Central South Africa eg Nampo, Aardklop, Cherry Festival. The station is committed to advertisers’ success and is the creative leader in innovative ideas that work in this market. Highest radio penetration in central South Africa. Lowest cost per thousand ratio.

Source: United Stations

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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 Overvaal Stereo 96.1 fm 11 000 Qwa-Qwa Radio 135 000 Radio Panorama 107.6 FM 21 000 Radio Rosestad 100.6 fm 31 000 Setsoto FM Stereo 16 000 Total Community – Free State 379 000

especially as Bloemfontein is the only city that will host the 2010 FIFA World Cup matches. However, all is not lost for the other areas. In Kimberley, De Beers has pumped more than R50 million into developing the area around the Big Hole into a premier tourist attraction, including the Mining Museum. Protea Hotels will also build a new hotel to accommodate the expected tourists, once the De Beers development is promoted as a major tourist attraction. In addition, national government is expected to invest over R300bn in economic growth in Kimberley and its surrounds (Sol Plaatje municipality), which will include jewellery, biofuels and livestock projects. New shopping malls (and extensions to existing malls) across the region are encouraging consumer spend, especially in areas that previously lacked large shopping outlets, including the Diamond Pavilion in Kimberley, Mooi rivier mall in Potchestroom, Flamond Walk in Klerksdorp and the Vaal Mall. Improvements to The Loch Logan shopping mall development at the waterfront in Bloemfontein are nearing completion, with added shop floor, extended parking facilities and the beautification of the lake. Anchor tenants include Edgars, Woolworths, Stuttafords, Mr Price, Pick ’n Pay and Truworths.

moment. We have a comprehensive funding offer on the table which depends on the outcome of the Biofuels legislation, which is expected soon.” The maize to ethanol plant is expected to have a positive impact on the region. Ethanol Africa will draw resources from the local community, from the beginning of the construction stage all the way through to finding workers and drivers. They will also employ local farmers once the plant is up and running. Other plus points include the introduction of out-of-town workers (who will require accommodation), traveling with the vehicles that will be required to transport the maize and fuel to and from the plant. The local municipality will benefit from the water and electricity that are required to run the plant, as well as from PAYE. The maize needed for the plant’s operation will impact positively on local farmers and will

Any magazine – penetration by Province AMPS 2006
North West: 28.1 Northern Cape: 43.9 Free State: 28.8

Any newspaper – penetration by province AMPS 2006
North West: 38.3 Northern Cape: 37.3 Free State: 32.6

Community/Free Newspapers
Bloem Nuus 41 970 (Jan-March 2007 ABC) Express 49 727 (Jan-March 2007 ABC) Goudveld Forum 22 869 (Jan-March 2007 ABC) Issue, Eastern Free State 17 900 (Jan-March 2007 ABC) Kroonnuus 8 229 (Jan-March 2007 ABC) Lentswe 12 369 (Jan-March 2007 ABC) Maluti 7 535 (Jan-March 2007 ABC) Midweek Rekord 16 604 (Jan-March 2007 ABC) Noordkaap 21 396 (Jan-March 2007 ABC) Noordwes Gazette 29 786 (Jan-March 2007 ABC) Ons Stad 36 445 (Jan-March 2007 ABC) QwaQwa News 5 019 (Jan-March 2007 ABC) Sasolberg Ster 11 561 (Jan-March 2007 ABC) Vista 35 286 (Jan-March 2007 ABC) Noord-Vrystaat 7 452 (Jan-March 2007 ABC)

Courtesy of Grain SA

There is a lot more happening around the region that is encouraging development. This includes: a new golf estate in Ficksburg; The Stafford’s Hill Gold and Polo Estate (which will open shortly); a new hotel at the Bloemfontein Zoo; a golf and sports estate in Virginia; a tourism centre in Welkom and a hydro in Bethlehem. Parys is, by all accounts, becoming a hip and happening place to be, given the number of South African celebrities who are settling there. The establishment of an ethanol plant in Bothaville is currently on hold due to legislation, according to Annelie Coleman, communication manager for Ethanol Africa (the company in charge of the plant). “We are in limbo at the

reclaim fallow land. The plant is to be located in a rural area, so the benefits to that community should be significant. The local Free State government is also looking at incentive schemes that include a small to medium manufacturing development programme, an export marketing and investment assistance scheme – and even exhibition assistance – to boost the economy of the province. Perceptions of the Central SA region run from ‘flat and full of farmers’ to ‘boring and nothing ever happens.’ Residents would beg to differ. This ‘bread basket’ produces over 70 per cent of the country’s grain and the region produces most of our cherries, onions and asparagus, amongst many other food products. It also breeds sheep and produces wool and it has a burgeoning floriculture, as well as a wine industry (including Jacobsdal and Ghoya). The region produces the majority of the country’s diamonds, gold, uranium and bentonite and is host to Sasolburg, which provides petrochemicals. There are heritage routes, a national park and a country – Lesotho – within its borders. Festivals include the Ficksburg Cherry Festival, Gariep arts Festival, NAMPO Harvest Day, Aardklop Festival and Manguang Arts and Cultural

Courtesy of Hein von Hörsten

Other newspapers and magazines
Homemaker’s Fair Bloemfontein 45 000 (Jan-March 2007 ABC) GetIt 15 000 My Week Bloemfontein 24 676 (Jan-March 2007 ABC) OFMWheels 20 000 Passi 8 000 Heartlands Diamond Fields Advertiser (daily newspaper) 10 105 Jan-March 2007 (ABC) Volksblad (daily newspaper) 28 708 (Jan-March 2007 ABC) Volksblad weekend 24 381 (Jan-March 2007 ABC) Sondag – Sunday Afrikaans tabloid – figures not yet available Noordwes Beeld (including Klerksorp and Potchefstroom) with a print order of 20 000. ToGoTo 10 000 copies distributed per quarter

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Festival, amongst many others. Still bored? The region also attracts a lot of wealth. “During 2005, 197 planes landed on our airstrip for NAMPO and for the last three years the airstrip has been under air traffic control,” says Johan Loxton, Grain SA. All of the region’s festivals see tens of thousands of visitors (the last NAMPO festival drew over 64 000 people in just four days). This wealth is spreading as economic development takes hold. “The up and coming black middle class is increasing and becoming richer. The growth in the townships matches that of townships in other parts of the country. The townships in Bloemfontein, for example, have shopping malls that sport Internet cafes, video stores etc, says Efstathiou.

and 2003 Cricket World Cup.) The Free State Department of Tourism, Environmental and Economic Affairs is also backing the F1 Powerboat Grand Prix Series at the Bloemhof Dam until 2009, as well as the 2007 SA Games which will be held in Bloemfontein in September.

Radio listening per day (TGI 2006A)
35% don’t listen to the radio TV viewing per day (TGI 2006A) 57% don’t watch TV Language preference for reading magazines (FutureFact 2006) English 54%; Afrikaans 23%; 1% Nguni; Sotho 21% Language preference for reading newspapers (FutureFact 2006) English 56%; Afrikaans 22%; Nguni 1%; Sotho 18% Language preference for watching local programmes on TV (FutureFact 2006) English 35%; Afrikaans 21%; Nguni 6%; Sotho 37% Preferred language for TV advertising (FutureFact 206) English 42%; Afrikaans 21%; Nguni 6%; Sotho 29% Preferred language for radio advertising (FutureFact 206) English 18%; Afrikaans 21%; Nguni 6%; Sotho 29% Preferred language for print advertising (FutureFact 206) English 50%; Afrikaans 20%; Nguni 5%; Sotho 22% Outdoor advertising recall % reach (TGI 2006A) Large boards at roadside or on buildings 60% Poster at supermarkets 58% Small poster sites on the street 51% Poster in shopping centres 51% Outdoor advertising see in P7D (AMPS 2005/6) Store ads 82% Billboards 73% Minibus taxis 60% Top magazines ave issue readership (AMPS 2005/6) Huisgenoot 9%; LSM 8-10 45% Jet Club 8%; LSM 5-7 10%; LSM 8-10 12% Bona 7%; LSM 5-7 10% Rapport Tydskrif 18% LSM 8-10 Sarie 15% LSM 8-10 Rooi Rose 15% LSM 8-10 Vroukeur 12% LSM 8-10

Media
With the general increase in development and prosperity in the region, it is no surprise that there has been an increase in available media. Interestingly (and perhaps not surprisingly), Marketing Mix can’t find any major/national media or advertising agencies with offices based in the Central SA region. An oversight? Maybe – but it should concern marketers that a wealthy area, with consumers who are willing to spend, is being overlooked. OFM is still the dominant commercial radio station and its drive to promote the Central SA region has paid off. The station has now completed the implementation of its rebranding strategy and has recently introduced a new DJ line-up that includes the introduction of Kevin Savage as both a presenter and a mentor. In keeping up with the demands of its huge footprint, its office in Potchefstroom (which opened in November 2005) now sports three sales people. “Our long-term plan in the area is to build a studio from which to broadcast. We now have approximately 109 000 listeners, so while the growth is slow, it is taking place,” says Efstathiou. The station’s innovation is also an important part of its success in the region. In fact, OFM recently implemented a world first: WOMF™ (Word Of Mouth Forum – http://ofm.womf.co.za). In essence, this is a forum in which consumers can exchange opinions and make comments regarding local products, services etc. It provides the perfect forum for clients to respond directly to comments from consumers. WOMF is the second biggest blog in the region with 3 500 regulars and 400 000 page reviews a month. “Advertising is effective because it is based on relevance, both geographically and timing of the message,” says Efstathiou. It has already attracted over R1 million in advertising in just three months. In addition to OFM sponsoring every major rugby and cricket team, it also sponsors live events. Recently it has sponsored sell out concerts for Michael Bolton, Westlife, Ronan

Sport
Sport of all kinds is hugely popular in the region, while rugby and cricket are the favourites. OFM now sponsors all the major rugby and cricket teams across the Central SA region. “We recently included the Impala Leopards from Potchefstroom in the teams that we sponsor, so we now have every single rugby and cricket team in the region,” says Efstathiou. (Cheetahs and Super 14 Cheetahs, Griquas and Griffons are the others). For the next couple of years leading up to the 2010 FIFA World Cup, Bloemfontein in particular will benefit from massive investment and this will filter out to the rest of the area (eg accommodation will need to be spread out in order to cope with the demand). When taking a look at the official Manguang notice regarding the preparations for the 2010 FIFA World Cup, the effort being invested in making it comparable to SA’s other major cities is apparent. Some of the items on the agenda include the upgrading of the Free State stadium and the transportation network, as well as the upgrading of accommodation and the airport. These efforts include the beautification of the city, proper tourism guidance and collaborating with the Free State Tourism authority and SA Tourism to market the region. A regulated home-stay programme will be implemented in time for the tournament to cope with the accommodation needs. This will include Maseru, Kimberley, Welkom and Ladybrand. (Don’t forget that Bloem has already held major sporting tournaments, including the 95 Rugby World Cup, 96 African Cup of Nations

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CENTRAL SA INTELLIGENCE

Top newspapers ave issue readership (AMPS 2005/6) Daily Sun 11%; LSM 5-7 17% Sunday Sun 10%; LSM 5-7 16% City Press 10%; LSM 5-7 16% Soccer Laduma 8%; LSM 5-7 12% Rapport 30% LSM 8-10 Die Volksblad 20% LSM 8-10 Volksblad (Sat) 17% LSM 8-10 TV stations viewership yesterday (AMPS 2005/6) SABC 1 56%; LSM 5-7 75%; LSM 1-4 47% SABC 2 43%; LSM 8-10 69%; LSM 5-7 52% eTV 38%; LSM 5-7 52%; LSM 8-10 47% SABC 3 17%; LSM 8-10 35% M-Net 4%; LSM 8-10 21% Any DStv 3%; LSM 8-10 22% Top radio stations listenership yesterday (AMPS 2005/6) Lesedi FM 68%; LSM 1-4 77%; LSM 5-7 75% Any community 12% OFM 9%; LSM 8-10 44% RSG 23% LSM 8-10 Brands and purchasing habits (FutureFact 2006) Often buy no name or supermarkets’ own brands 57% Find these days having to buy cheaper brands rather than well-known big name brands 48% Buy imported good as they are cheaper and good quality 46% Feeling towards brands and advertising (FutureFact 2006) More likely to buy brands that see or hear advertised 55% If a company sponsors a sport, more likely to support them by buying products 47% Feeling towards brands and services (FutureFact 2006) Brand name most important thing when buying a product 52% Brand loyal and stick to well-known brands and shops that are known and trusted 49% Would still be interested in a good product or service even if the marketing is not very good 56% Believe that house brands / quality is as good as big well-known brands 65% Prefer companies that make sure that new products or services are perfect before they are launched 68%

Keating and Will Young. Its charity campaigns do exceptionally well. A recent event with OUTsurance saw 14 000 blankets being donated in just one day. “We engage in aggressive marketing, especially as there has been a slight change in our audience. We have the largest black audience ever and we’ve managed to tap into the youth market during the nighttime shows,” says Efstathiou. OFM has also branched out into publishing with OFMWheels, an online and print car sales directory. “OFMWheels is now in the whole region and gets bigger with each issue. It is now at 88 pages: when it hits 102 pages we’ll split it into zones to keep it affordable for advertisers,” says Koen. The Website attracts 65 000 unique visitors a month (2.8 million hits). Even though OFM revenue from the national market has increased, the region is still regarded as a ‘secondary market.’ “Advertisers that use OFM do see a huge benefit in reaching this region but it always comes after Gauteng, W. Cape and KZN on the national buying list. “We often have to remind national advertisers that they have a presence in the Central SA region,” says Rivak Bunce, managing director, United Stations, “and that listeners do have money to spend.” This ‘secondary market’ perception may also have an impact on other local media such as magazines, despite the backing of major media houses. Both GetIt and MyWeek recently launched in Bloemfontein and while both are doing exceptionally well, national advertising is still difficult to pin down. Susna Stemmet, advertising manager for MyWeek Bloemfontein, says that in spite of the fact that they are doing well, they only have one national advertiser. On the other hand, the magazine is a community magazine that is geared towards local advertisers. The MyWeek team is investigating new zones. Caxton’s local community magazine is also enjoying success. “We occasionally get national ads from our head office in Joburg. At the moment we’re concentrating on the Bloemfontein edition, although we are expecting that new editions will be launched,” says Koen. The population profile of any area is important in order for a campaign to be successful.

In the Free State, the population consists of a majority of Africans (over 80 per cent), followed by whites and a small percentage of coloureds. Sesotho is the dominant mother tongue, followed by Afrikaans and then isiXhosa, Setswana, isiZulu and English. Afrikaans is the more dominant language amongst whites and coloureds. “Agencies need to acknowledge what’s going on here, as they’re missing a huge market opportunity: clothing designers, property developers and media like us are popping up all over the region,” says Retief. She also notes that advertising in Afrikaans should be a given. The Afrikaans Sunday tabloid, Sondag (Media24’s latest newspaper), launched recently and according to Mike Vink, the paper’s editor, sales have been satisfactory so far – and it’s not even available in the whole of the Free State yet. Beeld has recently launched its latest community based Noordwes Beeld, supplement, this time in the North West Province, which covers parts of the Central SA region and Klerksdorp and Potchefstroom in particular. This is only the second region specific insert after Mpumalanga Beeld. The insert will appear every Friday in Beeld. Although other printed media are available in the region, it is still easy to hit the right target market as it tends to be more specialised. Passi, for example, is aimed at creating pride in the Central SA region. The magazine is distributed nationally and Retief is currently applying for ABC certification. “We’re going bi-monthly from 2008 and the print run for our fourth edition has gone up to 15 000 copies,” says Retief. While Retief has national advertisers in the magazine, she urges media planners in particular to investigate the region’s media. “People tend to forget about Central SA when putting their media plans together. This is a vast market and it’s easy to hit the right target audience,” agrees Stemmet. Another local magazine that is making waves nationally is Heartlands, a Bloemfonteinbased travel lifestyle magazine that features leisure pursuits that are not necessarily covered by other travel titles. These include flying and adventure racing, as well as a focus on culture and iconic journeys. Heartlands is also focusing on the black travel market and over half of the content is concentrated on 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 is truly a profession has raged for decades. By definition a profession is an occupation that requires specialist training. While South Africa has many world-renowned marketing specialists within its borders, the question that one needs to ask is: ‘Is this a species that is heading for extinction?’ What is specialist training? Although one would assume that it involves training by a specialist, this is not always the case. A quick survey revealed that a significant number of marketing lecturers have no practical or industry experience. They have never been given the task of actually practicing what they preach. So just how specialised are these ‘trainers of specialists’? At the opposite end of the spectrum we have the ‘industry specialists’ with no knowledge of educational practices or needs, who for various reasons – ranging from retrenchment to retirement to genuine philanthropy – ‘train’ these budding specialists, telling obsolete stories of ‘when we’ without theoretical foundation or contextualisation. Add to the equation the flood of educators in possession of impressive qualifications from institutions in exotic locations (both in Africa and overseas) – and you have a recipe for interesting times ahead. Exactly who is training your aspirational ‘specialists’? Also bear in mind that jubilation at improved Matric pass rates must be tempered by the fact that there is a 35 per cent pass requirement. In real terms this means that an English matriculant is able to spell, read and write every third word correctly. Educators now have a more difficult job than ever before, increasing the need for them to be suitably qualified and to have the necessary practical experience to facilitate ‘outcomes based’ training methodologies. Those of us who are in the fortunate position of being able to assess marketing knowledge and ability from ‘the inside out’ as it were, are constantly in awe of organisations who manage to survive in spite of the limitations of their marketing ‘professionals.’ One is led to believe that these individuals (who are entrusted with budgets of millions and rewarded with six figure salaries and German luxury vehicles) are well trained. Think again! If you knew what we know, it is sending out samples to everyone’ (superb targeting and logistics… at least the Post Office will benefit…). And these are the people that you trust with your brand? Surely marketing managers have a responsibility to be just as ruthless and methodical in evaluating all potential and existing personnel – including their qualifications – as they would be if they were evaluating advertising or media campaigns? Marketing will only become a respected profession if professionalism is entrenched throughout the training and practicing process. The following suggest some possible South African marketing profession requirements: l Educators who have solid and genuine marketing qualifications, combined with practical industry experience l Educational institutions that have a policy of transparency when it comes to the advertising of their courses and the profiling of their lecturers and trainers l Marketing managers who demand excellence from institutions that offer marketing qualifications l Personnel agencies who are prepared to verify qualifications l Human resources managers who vet potential employees thoroughly, both in terms of their qualifications and the credentials of the institutions they have attended. Employees who recognise the need for ongoing specialist training as a part of the passion to become truly professional and not only as a path to greater financial earnings. What remains so fascinating is that big name brands DO survive. While they may do so by default, they nevertheless appear to remain robust and profitable. However, how long can they continue to do so – and how much more profitable would they be if they were managed by true professionals? There must surely come a time when the proliferation of competitive offerings starts to erode the consumer loyalty that is currently masking poor marketing practices. Is your brand manager up to the task? g

There must surely come a time when the proliferation of competitive offerings starts to erode the consumer loyalty that is currently masking poor marketing practices.

unlikely that you would trust your ‘brand manager’ with advertising your grandmother’s commode in the Classifieds! How would you rate the following exam paper strategies written by esteemed and highly paid brand managers with at least two years of industry experience? l ‘Target the male market for sanitary products (with wings) as they are currently non-users’ (don’t forget to use blue packaging for boys and pink packaging for girls…) l ‘Offer the CEO of a financial institution a “free cup of coffee” if he’ll sponsor your sports team to compete internationally’ (poor man will be bowled over by this generosity…) l ‘Distribute petrol at schools as children will become your market of the future’ (should one use paper cups or a browser, I wonder…) l ‘Advertise black hair care products on RSG to break down any remaining barriers created by Apartheid’ (now why didn’t the politicians think of that one…?) l ‘Promote industrial sewing machines by

Michele Venter-Davies
faculty head: Marketing and Advertising AAA School, (011) 781 2772 michelev@aaaschool.co.za

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EXPERT OPINION by mike glover

Make the market spend count...
Advertising and marketing budgets are often tightly controlled by financial directors who are reluctant to dip into them – especially since the notion exists that only 50 per cent of advertising works. Understandably, they want to invest in marketing that yields measurable results and turns advertising spend into sales, in this way making a profit. Advertising agencies are faced with the challenge of delivering on this promise in an environment fraught with audience fragmentation and media proliferation. There are frequently many options to choose from and because of the need for accountability, media planners often prefer to stick to a tried and tested formula which has been used for the last decade. Some agencies simply resort to changing the dates on the media schedule, applying the principle that if it worked last year, it should also work this year. An alternative would be for the media planner in question (who is often quite young) to approach the client – eg the marketing director of a multi-national corporation – with a request for a million rand budget based on a ‘gut-feel’ that a particular idea will work and drive sales. However, in most cases, clients reject (out of fear) what they consider to be a risky approach, even if the media planner has conducted the relevant research to justify the proposal. Unless clients are prepared to entertain a measure of calculated risk, they end up being followers and not leaders. As a consequence, their marketing budgets are whittled away on average campaigns, which generally result in their products or brands getting lost in the onslaught of standard advertising clutter. When advertisers persist in taking the traditional advertising route, consumers have the task of recalling and differentiating one brand from another. For example, if there are eight shampoo advertisements fighting for the same prime-time slot on TV, it becomes increasingly difficult to create a point of difference between them. Think about the corner cafe owner who has relied solely on passing trade and word of mouth to grow his business. Consider what would happen if a local radio station were to approach him, establish how many oranges he sold in a week and offer to do a live read, selling oranges on a special promotion. What if the radio station were then to revisit the campaign? A major consideration – frequently overlooked – is the target market. Accurate target market identification is critical. Take a male fragrance product, for example. Would the target be the male who is wearing the product, or the female, who according to research, usually makes the purchasing decisions? Typically, the planning of this type of campaign does not support the relevant research. Furthermore, while we accept that a target market of adults in the LSM 4–7 range is used to define and target the mass market, their shopping preferences and buying power differ enormously, with household income differentials ranging from R1 977 to R6 658. Therefore it should not be assumed that what works for one product will also work for another. The practice of establishing an accurate database for the purposes of mobile marketing is starting to gain some momentum. How does one move from a mass communication strategy, to developing a one-to-one strategy? Marketers are starting to recognise the value of developing an interactive solution; one that elicits a response to an offer for the purpose of making contact with the target market. The response to a one-to-one strategy can now be measured with a database of consenting, willing consumers. The above-the-line campaign and justification of spend is further reinforced as it builds brand equity and drives volumes. The advertising environment is evolving and advertisers need to become more creative and innovative in order to meet clients’ overall objectives. These are usually simple: driving sales. However, when agency margins are driven down, advertisers have little latitude when it comes to applying creative and original thinking. While this may present a challenge, it also provides them with a goal to aspire to. Although the principles of measurable marketing may sound simple, unless advertisers use an approach which renders the advertising rand accountable, they will be left dealing with very nervous clients – and the cycle of ineffectual advertising spend will continue. g

Although the principles of measurable marketing may sound simple, unless advertisers use an approach which renders the advertising rand accountable, they will be left dealing with very nervous clients – and the cycle of ineffectual advertising spend will continue.

business a week later and measure the results based on improved trade? An increase in sales translates into a success story and clients thrive on opportunities such as these as it gives them a sense of money well spent. Success stories are what marketers need in order to stimulate change and reduce fear. How does one measure a successful

Mike Glover
managing director, Red Cherry 083 601 3287

mike@redcherry.co.za

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 media strategist, The MediaShop, Johannesburg. “While the inventory for electronic media such as TV is being restricted by ICASA, the inventory for outdoor has been expanded to include everything from the JSE building to Tannie Sannie’s front garden wall.” It seems that there are not enough sites to meet the demand and experts are urging companies to become more creative in their use of scrolling boards, for example, to maximise the use of single sites. Botha suggests that media owners need to start charging more for prime sites to counter the growing clutter and Mark Mac Donnell, sales and marketing director, Primedia Outdoor, believes that this is actually where things are headed. The recent development of the Npod (produced by ACNielsen) and its Gross Ratings Points (GRP) system, may further encourage growth. “About six years ago SAARF started looking at suitable ways of measuring outdoor, as it was clear that a measurement technique was needed which would bring it in line with other traditional media,” says Paul Haupt, CEO, SAARF. In 2003 SAARF worked together with ACNielsen to pilot the Npod in Johannesburg. The current cost of the survey is around R3 million per annum. The cellphone sized device is equipped with GPS and is carried by participants during their daily comings and goings for a period of ten days. The Npod

tracks participants’ travel patterns as well as their demographics and the data is downloaded to a geographical map that is related to geocoded outdoor sites. The tool then allows for the data to be processed and determines the direction and speed of participants’ travels, as well as the frequency with which they pass particular billboards. During 2006 the study covered Gauteng and KwaZulu Natal. It covers the Eastern and Western Cape during 2007 and it will cover the Free State, Northern Cape and Mpumalanga in 2008. “Even though the feedback thus far has been positive, one must remember that it is still early days and that the offering will be improved and refined as time goes by,” says Haupt. He adds that the industry will decide whether to extend the SAARF contract later this year. The device addresses issues of measurement and accountability and allows clients and agencies to measure ROI more effectively. “For the first time you have a situation in which you can calculate the reach and frequency of billboards,” says McArthur. “This is something we have not been able to do before with regard to outdoor media. These media can now compete on a level that is equivalent to other mass media, like TV and radio.” Botha believes that while the Npod is still being refined, it will make outdoor planning a far more scientific process in the future; one that makes the demographic profiling of billboards possible. “It will place

Nedbank powers Alexandra school:
Nedbank’s solar panel billboard (which won ad agency, Net#work BBDO, a Grand Prix at the International Cannes Advertising Festival) is the first of its kind in the world. The billboard is equipped with solar panels that provide electricity for the kitchen of the MC Weiler School in Alexandra Township (alleviating the school’s electricity bills by over R2 000 a month). “The design is a 4.5x18 metre billboard that can take the added load of the solar panels and batteries and also fit into the limited space that is available at the school,” says Clinton Mitri, chief operations officer, Net#work BBDO. “Think of the premise that you can’t teach a hungry child and imagine what could be done if every billboard could make a real difference like this at a brand level,” says Mitri. He refers to Millward Brown research, which reports brand equity growth in the mass market, a sector which Nedbank previously ignored. In this instance Nedbank’s brand health is very strong at a community level, given that it is making a difference to the lives of over 1 000 children at the school on a daily basis. While sites have been identified for a countrywide rollout, getting the necessary approvals has turned out to be a rather slow process. The billboard was designed by Graphic Wizard and Red Dot and the solar panels were provided by Lumi Tech.

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OUTDOOR MEDIA

the outdoor advertising in companies’ planning systems on a par with other traditional media, enabling it to compete more effectively for advertising spend,” says Haupt. According to a report published on www.bizcommunity.com (14 April 2007), the early SAARF electronic outdoor results found that Gauteng adults see an average of 18 outdoor sites between 4pm-6pm every day. In KZN adults see 16 sites per day. In both these provinces, the average number of daily board impressions is 29 000 (gantries top the list, followed by unipoles, super signs, pole ads and bus shelters, in that order). According to SAARF Technical Support Manager, Michelle Boehme, the formal release of results (originally scheduled for August) has been delayed, while SAARF works with contractors and agencies to verify site data and ensure that no anomalies arise during the data

SAMOAC
In 1998 the Department of Transport and the Department of Environmental Affairs and Tourism joined forces to develop the South African Manual on Outdoor Advertising Control (SAMOAC). While this document serves as a guideline and framework that controlling authorities and the Outdoor advertising industry may refer to, it is not, as Mac Donnell points out, a by-law. “It was – and still is – a guideline document. Although a number of the by-laws of various councils are based on the broad framework that is outlined in SAMOAC, there is no single by-law that governs Outdoor advertising. It is up to each local authority to adopt its own set of Outdoor advertising by-laws,” he says. As indicated in the foreword of the SAMOAC document, the development of new advertising techniques and methods require continual updating. “Moving away from SAMOAC, it is important to note that the SA National Roads Agency have regulations in place regarding the control of advertising that is visible from national roads. These regulations are applicable throughout the country, as national roads transverse the various provincial boundaries and are found in both urban and rural areas,” says Mac Donnell. “It is however important to note that these regulations are only applicable to national roads and not to roads that are under the jurisdiction of a local or provincial authority.”

Out Of Home Media South Africa (OHMSA) Awards 2007
OHMSA has introduced an award for the best creative advertising designs. There are eight categories: • Overall winner • Billboards (grand format, scrollers, campaign media, wall murals, building wraps, • rank/station branding, etc) • Internally illuminated billboards • Electronic billboards (digital, electronic and plasma screens) • Airport advertising (external, internal and promotional displays) • Retail/street furniture (Adlites, bus or taxi shelters, bins, benches, etc) • Mobile media (buses, taxis, trailers, etc) • Ambient media (shopping centre displays, airborne banners, bikes, kiosks, etc). Visit www.ohmsaawards.com for more information.

processing. The release date has not yet been confirmed. All of this bodes well for the outdoor medium, although the industry has yet to shrug off several major issues. In recent years it has been heavily criticised with regard to the monopoly that appeared to ‘own’ it and the resulting lack of competition. This particular issue seems to have been addressed with the entry of new players that include a few smaller, black owned media agencies. “I believe that there is a healthy amount of competition in the industry at present. It is highly competitive and this impacts positively on creativity and innovation,” says Mac Donnell. Botha echoes the sentiment: “Nowadays we are bombarded by smaller players, each with a few sites to sell. Although the industry is still ruled by a few major players, I wouldn’t call it a monopoly.” Another major issue that has placed the outdoor industry in a negative light is the unprofessional conduct of some companies. “For as long as I can remember outdoor has been the ‘wild west’ for media types: it has plenty of characters and there is hardly any evidence that the ‘law’ makes much of a difference,” says Gordon Patterson, managing director, Starcom. It seems that much of the bad behaviour, born of impatience with procedures and protocols, was related to the growing demand for impactful sites in an ever more cluttered environment. Botha believes that illegal billboards (which are traditionally placed in great locations) tend to sell out quickly and this forces media owners to look at grey sites for alternative real estate. “In some instances where the approval 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 are: landlord approval; council approval and SA National Roads Agency (SANRA) approval,” says Mac Donnell. In a nutshell, the bad behaviour of a few has resulted in the introduction of increasingly restrictive bylaws, which are almost prohibitive of the medium. “The new legislation requires that new site applications are subjected to the same rigorous procedures that come into play when one is applying for a site for a new house,” says Jones. This means that the development of sites is simply not keeping up with the demand for sites. “However, the unscrupulous operators would not survive

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OUTDOOR MEDIA

without the support of marketers who know full well that the sites they have bought do not comply with the regulations. Authorities are in turn drafting legislation that takes into account the illegal activities of these operators. In doing so they are drawing up draconian regulations, which they are not adequately geared to administer or enforce,” says Holley. The increasing red tape and the legislative grey areas are devaluing this medium and experts warn that if the activities of unscrupulous media owners are not curtailed, industry anarchy will prevail. Out of Home Media South Africa (OHMSA) and the outdoor Advertising Association of South Africa (OAASA) both serve to increase industry regulation and support. “OHMSA’s role is to promote the use of the various forms of out of home media, to assist media owners to grow their share to between eight and 10 per cent of adspend by 2010 and to lobby for regulations that are fair to the industry, the regulators and the environment,” explains Les Holley executive director, OHMSA. They also have a responsibility to monitor industry developments abroad. While some believe that red tape and legal wrangling will hinder the efforts of these bodies, it is acknowledged that they will go a long way to restoring harmony to this industry if contractors show greater support in the way of membership of these organisations. Perhaps one of the matters that these bodies should address is the fact that there is no single piece of legislation or set of guidelines which governs the industry on a wide scale. “Each municipality has its own set of bylaws – there is no national standard or set of rules. The situation would be much easier to control and regulate if there was a national protocol,” says Mac Donnell. Holley also points out that media owners need to adhere to the regulations that are put forward by municipalities and the government – not the other way around. Despite the few negative aspects of the industry, it is a growing medium in which technological innovations are a driving force. “The investment in developing new and improved products (print and technologies) has attracted new advertisers and categories, as well as new formats,” says Jones. At this stage there are few digital innovations in comparison with the US and the UK and it appears that the reason for this is the cost of

the digital formats. “These are extremely expensive to install and given the limited periods that councils are approving, it is not yet feasible to grow this form in the medium,” says Holley. One of the factors that is contributing to the growth of outdoor is the emergence of the black middle class and the development of the townships. “Townships are highly valued economic hubs, as there is a definite increase in disposable income in these areas. Many of the new township malls have stores and brands that are similar to those in Sandton City and Fourways Mall,” says Mac Donnell. However, as Ridwaan Mohamed, sales director, Strawberry Worx, points out, outdoor companies have only recently directed their focus at these markets (especially since the banking institutions have aggressively moved in on the townships and opened new accounts there). “Soweto alone has experienced

Innovation
Clear Channel Outdoor’s Spectacolor Division (USA) will launch one of the industry’s first high-definition digital billboards in New York’s Time Square. This board has the highest possible resolution and is also equipped with the latest interactive technologies (including Bluetooth, SMS messaging and free broadband wireless access). Consumers are able to engage with the content by downloading audio, visuals and text info to their mobile phones. They can also send text messages and play games. The new boards will stream news, weather and sports content along the bottom of the screen. Clear Channel is currently in discussion with content providers and potential advertisers.

Will iCapture innovate audience measurement?
TruMedia (Israeli based tech company with a background in tracking and recognition surveillance software development for Israel’s homeland security), has developed a tool which measures digital media audiences in real time. The software is built into high resolution, wide angle cameras, which are mounted atop a digital display; the camera automatically detects viewers, locating every pair of eyes that are looking at the screen at any given time. It tracks these, counts them, and measures them according to how long each pair of eyes looks at the screen. The software also records basic demographics (age range, ethnicity and gender) and viewing habits. Local company, Rocketscience Media Solutions, has acquired the exclusive South African distribution rights, while Spectrum Visual Networks has been appointed the local sales agent. According to Manny Teixeira, MD, Spectrum Visual Networks, the iCapture system is ideal for companies running out of home digital media advertising networks, research agencies, and banks. “With the iGaze product, which is focused on window displays, we’re looking to talk to the large fashion retailers,” says Teixeira. He also believes that the research houses could use the technology to cost effectively build up a significant amount of research data. “The technology as it currently stands is very unique, so we believe it will rather define its own market space than specifically compete with existing market offerings,” says Teixeira. The systems are relatively pricey compared with other measurement systems, with cost depending on factors such as the number of cameras per system, etc. While the unit is currently designed for indoor use (and therefore not safe from outdoor weather conditions, for example), an outdoor unit is being developed. Vandalism is not a problem, as the cameras are easily camouflaged. “It is brand new technology – from a commercial point of view, the first units were only shipped in June – so we are one of the first countries to actually receive one of these,” says Teixeira. In Denmark, high-tech banks are using the systems to do customer profiling of automated services users. “It’s very early days yet, but from initial reactions, the banks using it are very impressed and are looking to deploy more of the iCapture systems,” says Teixeira.

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OUTDOOR MEDIA

a surge of development with three new shopping centres opening recently. As a result, consumers in Soweto travel and shop within smaller geographical areas – and where there are consumers, there is advertising,” says Jones. Marketers have come to understand that black markets are both savvy and desirable. “Black markets do not appreciate being lumped together with a ‘one shoe fits all’ attitude. These consumers are very aspirational: they are brand and image conscious and they don’t mind paying extra for branded items and products,” says Mohamed. Botha agrees that the township market is the most undervalued outdoor proposition. “The sites in these areas

International Division, Primedia Outdoor. With the 2010 FIFA World Cup just around the corner, one begins to wonder how we measure up against international markets. Botha believes that our market is not yet comparable to overseas markets (especially countries where electronically based mediums are used extensively). “Media owners abroad can now sell their media by time channel. Imagine buying ‘drive time’ exposure on a billboard. It allows advertisers to be more focused and widens the net of potential clients for the sales team,” he says. He anticipates that we will follow these trends. Mac Donnell agrees that even though outdoor is developing rapidly, there is still a

have a massive impact and are normally relatively cheap. Any advertiser who targets this market should definitely use this medium.” What marketers need to realise is that black consumers are not a homogenous, uneducated market. “Most marketers from FMCG, cellular, retail etc, that make decisions on behalf of their clients have not been to the townships and therefore do not understand the dynamics of this grouping of people,” says Mohamed. Other drivers for the growth of outdoor media include the fact that it is not affected as much by the media fragmentation that has impacted on TV and print. “The value of outdoor advertising boils down to the fact that its the link between people (when they are outside of their homes) and points of sale,” says Jones. For this reason, outdoor media possess great potential for reaching us where mass media no longer do. “Outdoor media give a brand street presence; a public face; a permanent place in the community,” says Mike Thomas, general manager,

lot to learn. “With international advertisers coming in for the 2010 FIFA World Cup, South Africa will be exposed to international standards and this will benefit the industry as a whole,” he says. Will we cope? Some don’t think so. According to Jones, FIFA’s regulations stipulate that all advertising in and around an approximate 1km radius of each stadium will be reserved for key sponsors three months prior to, as well as during the tournament. Botha believes that this places FIFA and their activation teams on a direct collision course with media owners and clients. “Outdoor in 2010 is going to be an absolute mess. As most of the outdoor around the stadia need to be removed, I believe that the clutter in other parts of town will double and that the price will sky rocket,” says Botha. “International brands will try and enter our market for those few weeks and you can be assured that local media owners will charge a fortune – just because they can. The smaller local brands will suffer as a result.” Mac

Donnell and Holley argue that this won’t be the case, as FIFA will only have a minimal effect on regulations (given that their requirements are for a short period). They believe that there will be sufficient opportunities for others to get a piece of the action, in spite of the fact that FIFA partners will have control of the prime spots. “They will just have to be creative. My major concern is about what happens afterwards? We as an industry need to ensure that we avoid a depression post-2010,” says Mac Donnell. It appears that the industry needs to take innovation and evolution more seriously, before putting its best foot forward on the 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 electronic media, are among the anticipated developments. “Hopefully the costs of production 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 communication and digital reproduction – is a reality in many countries around the world. This will come to SA (along with digital billboards), as the technology improves and becomes less expensive,” says Holley. Botha believes that we are headed for an environment in which clients look for things to brand. Imagine the grass at Ellis Park painted OUTsurance green; the M1 highway painted McDonalds yellow and the Voortrekker Monument covered by an Iwisa Maize Meal building wrap! In the meanwhile print ads are slowly becoming better suited to the outdoor medium, with agencies and marketers realising that it is not enough to slap a print ad onto a billboard. Clear Channel, for example, works with clients to develop creative and designs that are effective in the outdoor environment. “As the role of the medium evolves and as the lines that have differentiated it from other media such as TV disappear, I predict that we’re going to see an explosion of creativity in this area,” 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) marketing beckons. It offers many benefits, including tight focus, traceability and auditability – and if done correctly – a rapid return on investment. How do you, as a traditional marketer, enter this brave new world? This question is particularly valid in South Africa, where we still tend to lag behind developed markets as far as digital opportunities are concerned. The first question that a marketer needs to ask in this situation is: ‘How do I approach the opportunity?’ There are four obvious options to consider: Take the task in-house: this is often the first consideration and although some agencies are doing good work, the results vary in terms of quality and degree of success. Work with a traditional agency, which at the very least understands the offline world and the imperatives of the client. In this and the previous case, however, there is frequently no clear understanding of the technology and of what it can do for you. In situations where a bold approach is called for, the agency is either too timid or it designs an adventurous but impractical approach to the task. Work with a dedicated digital agency that brings a deep and practical understanding of the technology to the table, as well as a knowledge of how to maximise the opportunities. In this regard it is best to form a partnership rather than to adopt a vendor-client model. An agency and a digital technology specialist cooperate to deliver a complete solution for the client. In effect, this means that the agency brings its client knowledge to the table, while the digital specialist brings specific insights. In many cases, this is the ideal model. areas: paid-for and ‘free’ (or not paid for). In the paid-for domain the first consideration is to drive awareness, which is normally done through the use of a mechanism such as a banner ad. This is analogous to placing an advert in a publication, which means that it’s a discipline that is easily managed and mastered by a traditional agency. As more and more people turn to broadband, it is becoming a vital element of digital marketing. However, you must understand why you are doing it. It’s not great for brand building but it is effective for initiating an action from a viewer or potential buyer, delegate or subscriber. The key difference with banner adverts is that their effectiveness can be measured and advertisers usually pay per click. This has both an upside and a downside. While the number and value of clicks can be measured, the cost per click is rising and this can make a campaign like this prohibitively expensive – some sites are charging up to R50 a clickthrough (which is not a problem if each click translates to business). This places the onus on the client and on the service provider to introduce a stringent qualification process. Another limitation is that web browser plug-ins are hurting the banner ad market. In effect these plug-ins allow users to bypass banner ads in much the same way that the PVR lets you skim past TV ads. Nevertheless, banner ads are a huge and growing business because they do deliver value for advertisers – as long as you are hitting the right LSM! As with all advertising, you must always know whom you are targeting.

An agency and a digital technology specialist cooperate to deliver a complete solution for the client. In effect, this means that the agency brings its client knowledge to the table, while the digital specialist brings specific insights. In many cases, this is the ideal model.

Keyword purchasing
This has become a monumental business, especially in the US. It consists of the practice of buying keywords and embedding them in your website. Theoretically, as people search for companies, offerings or service providers online, they will find you if you own the keywords (those who own the keywords will lead the market). A handy tip here: work with Google AdWords and Adsense, which can South Africanise your content and help to drive

Campaign elements
When putting together your digital marketing campaign, you need to look at two broad

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EXPERT OPINION

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

Free options
Organic search engine ranking: this is all about search engine optimisation, which is a complex area that is wide open in South Africa. In effect, it’s about building your website so that you obtain better results when people enter a search string in Google. (Google is really the only search engine you need to concern yourself with, since the others, such as Yahoo and MSN, have been marginalised). You must persuade Google that yours is the best website for a specific requirement. You need to do it subtly and carefully, as Google’s algorithms will bounce you to the bottom of the rankings if you use a heavy-handed technique, such as excessive repetition of the keywords embedded in your website. To put it simply, it is so easy to get it wrong with search engine optimisation that you would be well advised to recruit the services of an expert in this field. Viral marketing is another ‘free’ option: to a great extent this is the Holy Grail of digital marketing. Viral marketing describes the process of people obtain-

Every digital marketer must have a strategy that is both proactive and reactive where blogging is concerned. There must be a mechanism for tracking, managing and responding to blogs.

negative about your company and its products. Consumer activism on the Internet can be dangerous since buying decisions are frequently made through word of mouth. Every digital marketer must have a strategy that is both proactive and reactive where blogging is concerned. There must be a mechanism for tracking, managing and responding to blogs. Finally you will need a way to measure the success of your digital activities. Obvious measures include: how many clicks or impressions you enjoyed; how many people registered for an event and how many clicks

Jarred Cinman
director, Cambrient

(011) 807 8570 jarred@cambrient.com

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 programme, Whose Line Is It Anyway, the other night when my three boys (two teenagers and an adult) rolled around the lounge floor in hysterics. I still don’t find the programme that funny. What I do find really funny though, is the continuous reference to the ‘line.’ Recently, various marketing people at a client had a lengthy debate on the work we presented: ‘Was the recommended use of a newspaper a direct channel?’ The other day, Matt, one of our young and talented copywriters, told me categorically: “It’s not about the channel or the line – I just want to do great creative work.” Ramesh Iyengar from Mumbai, an international judge in the Experiential category of The Loerie Awards, declared that BTL stands for ‘Between the Line.’ Finally, after a long discussion, a potential client asked us: “Who do you consider to be the hottest agency in SA today?” My response was an instant “us!” to which he replied, “No, I mean in above the line.” infomercial – but they are calling the customer to take immediate action; to visit a store and make a purchase. Now our customer is in the store – what do we do with him? We give him a postcard with a URL and tell him to go online and complete his details. For doing this he will be richly rewarded with gifts that are tailored to his needs. These TV adverts are promotional and they are building the brand. However, if they are thought through to the very end, they are in fact direct! The next question that crosses that line is how to market to the lower end of the LSMs who don’t have mailboxes – and if they do, we don’t know their names. They certainly don’t have access to e-mail either – at least not every day. How do we reach them and ensure that we get a response, so that we can measure our campaign and sales? Can we be direct? The answer is in the message. We can’t afford to think about the line. We also need to remember that direct marketing in the traditional channel of mail can be costly, especially when we start to reward recipients with points and accessories for profitable behaviour. It’s not only the R100 mail pack that we must consider: the actual cost of the reward must also be factored in. So we use traditional media channels in order to reach the masses but we must ensure that our message has a strong call to action, which truly engenders a response. Once we have received a response, we should have an additional piece of information about our recipient. Now we can start cooking with the more direct channels. One piece of info is like gold. Can you imagine how far you can take your relationship if you have a second, third or even fourth piece of information? This is where we can begin to differentiate ourselves and our clients from our competitors. This is the point at which we marry the science of CRM to the art of creativity. Now we can start to segment our bases according to our customers’ value/ potential value and by using the information that we have on them, we can initiate the rewards. So, it’s no longer in or out of the box or on or off the line. After all, whose line is it anyway? g

What line?
My creative partner, Stu, returned from judging Cannes Direct and went literally headlong into judging Loerie Direct. He made the same observation: “Is it direct or have we shifted?” Exactly what does direct mean, creatively and strategically speaking? If I want a direct marketing agency, what am I looking for? Can my DM agency be creative? How can we be creative if we are being direct? Well, the entries for the Loeries certainly challenge this thinking, as do the number of traditional agencies who submitted their work in this category. So now we are faced with some 28 TV ads; mostly 30 seconds long; all promoting a product. The question arises as to whether these ads are brand building or whether they are promotional? They can’t be deemed direct – after all they are not the boring 10 minute

Direct marketing in the traditional channel of mail can be costly, especially when we start to reward recipients with points and accessories for profitable behaviour.

One of my staff picked up a postcard from Nike on a plane. Its call to action was to write a pledge, send it back and your details would go into a draw to win some great prizes. Clearly they wanted to gather data but the American agency that printed them didn’t ask for any contact details. None. We know that it’s a US agency because I asked some 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 the postcards through the Aphis finger print system used in CSI to discover who each respondent was? I think they were probably an amazing above the line agency that didn’t know any better! Marry the science to the art!

Nici Stathacopoulos
CEO, proximity#ttp (011) 447 7093 nici@proximityttp.co.za

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by dr robert passikoff EXPERT OPINION

Predicting market success
Peter Drucker observed that, ‘there is surely nothing quite so useless as doing with great efficiency what should not be done at all.’ Unfortunately a lot of research illustrates the truth of this remark. One of the goals of my book Predicting Market Success: New Ways to Measure Customer Loyalty and Engage Consumers with Your Brand is to teach marketers how to do meaningful and predictive research. It provides a 21st century perspective on predictive loyalty and engagement metrics. The truth is that since 1985 the marketing realities that have confronted companies and brands have become worse. Consumers ARE in control and have been ever since the 21st century began. My goal in writing the book was to teach the application of 20/20 foresight rather than 20/20 hindsight, including metrics that correlate to sales and profits. One merely has to look at how most brands struggle to differentiate themselves from their competition to know that new research and planning approaches are needed. The rational aspects of a category or brand, once great sales levers, are now table stakes. You either have them or you’re out of the game – and everyone has them! One cannot help but recognise the rapidly evolving ways in which consumers use, juggle, adopt and ‘gate keep’ old and new media. The key is how to predict which medium (and which particular entertainment venues in each medium) will help to guarantee market success. It’s no secret that brands are more commoditised and consumers are more savvy – and that the media itself is more fragmented than it has ever been. Neil Postman (media theorist) predicted that one day we would wake up and find that we were living in a ‘media ecology.’ This came true a lot sooner than anyone expected or was prepared for. It’s astounding that his observation that marketers would have to know ‘how media of communication affect human perception, understanding, feeling and value’ reflects the same concerns that modern marketers are faced with today (and that most are struggling to handle). While one can argue about the precise date that this consumer-controlled media ecology finally arrived in all its full-blown fore more complex than ever before. In order to successfully address this complexity, marketers should re-calibrate their definition of ‘brand equity.’ They should ignore the outdated definitions of the term (which more often than not relate to imagery or – yes, even in this marketing environment – to brand awareness!) and use the following as an operational definition: ‘Brand equity’ is the degree to which a brand meets or exceeds the consumer expectations for a category in which it competes. What is the reason for this? The fact that the components that make up consumer expectations are mostly emotionally-based and account for 70+ per cent of the brand decision process (and happily, the emotional drivers) can be quantified. If your marketing department or your advertising agency is throwing around terms like loyalty, emotional bonding, bonding with our consumer and engaging our customers emotionally, you need to ask them: ‘How?’ Just how are they doing this – beyond using music that was popular in the 1960s or resuscitating some old 50s TV stars in ‘classic’ black and white? Smart marketers need to be more than creative to get the job done. They need to strategically engage the customer and the only way to do this is to make sure that all marketing and communication activities reinforce the brand in ways that help it to meet or exceed customer expectations. From a loyalty and engagement perspective, brand planners can get CEOs and CFOs to ‘buy into’ marketing and advertising programmes, especially when they are able to show a nearly straight-line correlation with sales and profits or a high correlation with positive behavior toward the brand. Doing what you did in the previous century won’t work much longer – just acknowledging the need is not enough. g

Doing what you did in the previous century won’t work much longer – just acknowledging the need is not enough.

complexity or debate the marketing and communications continuum upon which it migrated, it is an incontrovertible fact that a real 21st century media ecology – ie an environment in which the consumer is virtually cocooned by (and in control of) media of one sort or another on a 24/7 basis – has arrived. Brand planning for this environment is there-

Dr Robert K Passikoff
founder and president, Brand Keys. Author of Predicting Market Success: New Ways to Measure Customer Loyalty and Engage Consumers with Your Brand. www.brandkeys.com

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The Best of Point of Sale Conference 7 September 2007

Marketing-at-Retail
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
Welcome by Yatish Mehta MD of Uniprint Point of Purchase. Dick Blatt will overview the big international PoS trends, the latest solutions and the early results of the new MARI project. This first proof of concept study was conducted in the United Kingdom at Morrisons and 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 which they were exposed, and what materials actually caught their eye.

How to promote in the townships
Xolisa Dyeshana from Joe Public, will comment on the latest promotions in the townships; targeting various income groups, and the guidelines that ensure that PoS promotions are acceptable to the spazas, the chains and the malls.

PoS showcase
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, purchasing behaviour and shopper choices. They will evaluate the influences of the various components of PoS marketing. And they will demonstrate how to measure PoS effectiveness supported by a case study.

Dick Blatt: Q&A
Your opportunity to pick the brain of the most informed PoS expert in the world.

About POPAI: www.popai.com How to use technology to drive PoS solutions
IBM will present their perspective on where, when and how digital media will seriously influence retail and PoS in SA, and they will demonstrate some very compelling applications. POPAI is an international trade association for the marketing at-retail Industry, with 1700 member companies (brand, retail and PoS).

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 robyna@systems.co.za 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
By Andrea Chemelly (TNS Research Surveys) and Corette Haf (Qualonline.co.za)
The most exciting paper at the conference was that of Andrea Chemaly and Corette Haf. The pair acknowledged that local Internet access is growing and that it holds great potential for marketers and researchers, in spite of being at only 14 per cent for those over 18 years (compared with 69 per cent in the US). They illustrated the effectiveness of online bulletin boards in their research amongst South African teens. The study focused on ‘issues facing teens in the techno age.’ They selected teens between the ages of 14 and 16 years from Johannesburg, Durban and Cape Town, who owned cellphones that were equipped with the ability to send and receive pictures. Respondents had to be comfortable with surfing the web and had to spend between two and three hours a week doing so (home Internet access – using a PC less than four years old – was a prerequisite). In addition respondents had to have been on MXit within the week before the study was held. The researchers created a billboard for girls and boys respectively and asked them to respond to various questions and issues. They received very candid answers, even as far as respondents’ illegal or underage activities on such topics as sex, drugs and alcohol were concerned. They insist that teens would not have been as candid in focus groups (where they could have felt uncomfortable or uncool in front of their peers). Since the bulletin boards allowed for anonymity, the teens felt safe enough to express themselves and to share their experiences and opinions. They found that teens are very tech savvy (researchers had oversimplified the instructions and were reprimanded by the teens The benefits of online research tools: Capacity to reach populations that are geographically dispersed Able to reach everyone from youth to working professionals, especially among the upper LSMs Reach respondents while they are in their own physical comfort zones Afford privacy for sensitive or embarrassing topics and issues Have the potential to minimise social pressures Offer accuracy and transcripts that are immediately available Make it very easy for clients to view results and interactions and for moderators to keep in touch and interact with respondents. The benefits of bulletin boards: Offer equal opportunities for respondents, as well as extended contact with them Allow for complete communication (respondents have sufficient time to ponder their responses) Text material is easily shared among respondents Board allows for unlimited viewers Minimise ‘group think’ Difficult recruits are avoided. Weaknesses of bulletin boards: A lack of body language indicators Researchers have less control over respondents’ environments All those involved must have adequate PC skills

involved): they are very comfortable expressing themselves via this technology. They also found that teens are far more responsive to SMS than they are to e-mail communications (they had to be alerted to e-mails and reminded to respond). Despite the absence of body language, the teens made effective use of text colours, emoticons, pictures and abbreviated SMS language in expressing themselves. Many said that they enjoyed the experience and that they would take part in such a study again in the future. Haf and Chemaly concluded that while online qualitative research might not be an efficient replacement for a face-to-face interview, it certainly holds tremendous potential with regard to expanding qualitative research as a whole in the South African context. Online research methods include: real time focus groups, bulletin boards, multi-media online focus groups, etc.

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SAMRA REPORT BACK

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

The power

of

packaging
the size of your brand’s package may have the capacity to extend the brand into new target markets or to overcome cost barriers. While little is known about why we choose the brands we buy, researchers have found evidence of some of the factors that influence packaging designs: Colour, typography, graphic forms and illustrations all serve as cues which consumers interpret, in order to assess both the brand and the product It has also been found that text messages perceived from the right side of the individual have a better recall: conversely pictorial elements that are perceived from the leftside have a better recall On average, one will spend between five and seven seconds reading a label or product packaging. Context plays a major role in purchasing decisions. Packaging is considered along with the shopping experience; the usage experience; the package’s functionality; shelf visibility and the consumer’s past experiences with the brand. Currently packaging research includes a handful of methods, such as sales tracking, focus groups, usage tests and shopper behaviour research. Methods that are less frequently used include virtual reality shopping and the use of eye scanning apparatus. Researchers must examine the pros and cons of each method and perhaps even use several methods of research. It is important to take into consideration that packaging is often seen as a part of the product and that it is therefore difficult for customers to separate the two.

by Alice Louw and Michelle Kimber, The Customer Equity Company
Alice Louw and Michelle Kimber took a closer look at packaging and the way in which we research its effectiveness. Packaging serves the obvious function of containing our favourite brands and differentiating them on the shelf. It can drive our brand choices. Given the increasing consumer choice and greater media fragmentation in today’s world, where fewer opportunities exist for a brand to be seen, packaging may hold the potential for a product to stand out from the crowd. Packaging is seen at the point of purchase and also each time it is used – it therefore has a better reach than advertising (it can promote and reinforce the purchase decision at the point of purchase repeatedly). Size is also relevant, as a simple change in

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SAMRA REPORT BACK

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

Cataclysmic or enchanting:

8-23 year olds:
get into their heads
by Liesl Loubser, HDI

the current, future and influencer market. How to
brands which enhance their self image and empower them 19-22: independent (but value interdependence); are focused on individual fulfillment; seek out brands that help them to fulfill their dreams. manager; lawyer; engineer; accountant; TV presenter; DJ; musician Dubbed Generation C, the youth are highly connected but also time compressed (they must multi-task to juggle family, friends and the modern lifestyle); they are technologically savvy and have infinite choice. Brands must keep it simple and must change, innovate and remain relevant Their social networks are vast and play a very important role in terms of providing and sharing information As a result of their vast social networks, youth are very tolerant of diversity and they relate to brands that understand this They judge brands by the company they keep (they relate to brands that provide both status and skills and they’ve become disenchanted with marketing and advertising messages) Youth value customis-

Liesl Loubser presented the findings of HDI’s research into the youth market, illustrating just how powerful this market is. Almost 53 per cent of the South African population is under the age of 23 years. This is a market in which consumers have established themselves in their own right. If they are indifferent to your brand, they won’t buy it. On the other hand, if they want your brand, they want it now and they will spend their money on it. If they don’t have their own money, they will nag their parents for it (and influence them in the process). The youth market can be categorised into one of three segments: 8-13: dependent on parents and pester them to get what they want; want to be older; seek out fun brands that provide entertainment 14-18: seek independence from parents; susceptible to peer pressure; want to be free and seek out

What should you know about the youth market?
They spend their money on transport, clothing, DVDs, CDs, fast food, cell phone airtime, magazines, movies and even groceries They influence their parents’ spending The vast majority of youth own cell phones They have serious fears that include: becoming the victims of crime; becoming infected with HIV/Aids; rape; car accidents; not finding a job in the future and losing their friends They think that the best jobs are: actor; entrepreneur; doctor; brand

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

by fulvia becatti CAPE TOWN INTELLIGENCE

The Cape is facing a daunting fistful of social challenges that include scary crime stats, murder and violence, child murders and TIK epidemics. The approach of the 2010 FIFA World Cup however, heralds plenty of good news. The city of Cape Town is embracing the necessary development of its infrastructure and it appears to be making good use of government funding and the opportunities at hand to address issues around city development and spatial planning, housing development and the provision of essential services, as well as the relocation of those townships which are deemed unsafe for habitation. By all accounts, FIFA is pleased with the city’s progress (the city of Cape Town reports that FIFA President Sepp Blatter visited the city recently and expressed satisfaction with the progress that has been made). There is an upward trend in tourism and over 700 000 people visited SA during the month of March. Reports from South African Tourism indicate that the majority are from Africa, the UK, Germany, France, the USA, China, India, Australia and Brazil. According to a report on www.southafrica. info (4 June 2007), local hospitality groups are increasingly attracting foreign investors (such as Leisurecorp, a division of the Istithmar group, which has purchased the Paarl Valley Signature Golf Estate & Spa development in the Western Cape). The report also states that the InterContinental Hotel Group (based in England) has entered into a partnership with Cape Town’s ISO Leisure group to develop four new hotels around the country. In March, the Australian based Stella Group purchased the Protea Hotels group ( SA’s biggest) in a deal that cost them over R1.5 billion. The abovementioned are to name but a few. Cape Town is taking broadband to heart. There are indications that the broadband network, which was proposed last year, might well get the go-ahead. The city of Cape Town website states that a committee has been put in place to look into the project

(which will cost around R400 million and create an estimated 95 000 jobs, thereby contributing R4 billion to the local economy). The city administration will lay 360km of fibre optic cables (which will initially be used to link its systems in preparation for 2010 and later be expanded to include other sites). The open access network will provide high bandwidth connectivity and will work with the Smart Cape Access Network Project. It is hoped that this will connect city facilities and grant citizens greater Internet access.

Call centre boom
According to CallingtheCape’s fourth Key Indicator report, the call centre and PBO&O industry in Cape Town has continued to expand rapidly. The number of agents has increased by 41 per cent to 15 899 since the last survey of this kind. It now employs more than 22 000 people and has maintained a growth rate of 30 per cent over the last three years. Indications are that it will grow by a further 37 per cent over the next twelve months. The offshore aspect of the industry has also continued to expand rapidly, which bodes well for this sector. The growth also suggests that Cape Town’s labour market is responding well to the challenge of providing resources for this growing industry.

Media overview Newspapers: Newspaper circulations
appear stable across the board, with only the daily tabloids shaking things up. The Daily Voice has been keeping mum on its circulation figures and according to editor, Karl Brophy, it’s because they’re waiting for them to plateau, so that they can present advertisers with stable and reliable numbers (they hope to begin reporting their circulations to the ABC as early as the end of this year). Brophy is of the opinion that when the Daily Voice reports its circulation figures, the percentage of the average total readership for dailies will be closer to the 60 per cent mark (it is currently at around 43 per cent). Brophy says that while the launch of the other Cape dailies has robbed sibling newspapers of circulation, the Daily Voice has genuinely grown its own readership without cannibalising the circulation of its sibling titles. The paper is not online as yet, although Brophy maintains that the paper would not benefit from an online platform, since its core readership is not Internet connected. “However, we do have an SMS service, where readers can download or receive content directly onto their cellphones and this is hugely successful. The service receives thousands of SMSes daily,” says Brophy. The Daily Voice has plans to launch an Afrikaans edition in the coming months, following the success of its hybrid bilingual Afrikaans/English edition. Brophy is confident that this will be a huge success and that it

Tourism
According to the figures published by Cape Town Routes Unlimited, the latest tourism trends (Q2 2006) show that the total number of international arrivals to SA were 1 945 693 (representing a growth of 20 per cent on last year’s figure of 1 616 027). The average length of stay in SA was eight nights and the total spend from international visitors was R10.1 billion. The Western Cape tourism statistics reveal that the Q2 2006 international arrivals to the region number 330 768, marking a growth of 7.7 per cent on the Q2 2005 figures. The top 10 sources of international visitors to the region include: the UK, USA, Germany, Namibia, Zimbabwe, France, Netherlands, Australia, Botswana, Japan, Mozambique, China and Lesotho. The USA and Germany are both up by two positions in Q2 2006 from Q2 2005, while Japan is a new entry on the list.

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

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Destination Cape Town

CAPE TOWN INTELLIGENCE

will give its competitors a run for their money. In the meanwhile, it appears that advertisers (especially locally based direct retailers, cellphone brands and electronic brands) are getting a good response. “While this market may not have a huge disposable income, it is price sensitive and does respond to advertising. It’s also a high volume market and is therefore very desirable,” says Brophy. The Cape Argus has a stable circulation – currently at about 75 935 (ABC Jan-Mar 2007) – which has prevailed over the last couple of years. According to Michael Vale, marketing manager, Independent Cape

Community Newspapers
Community and free newspapers are faring well. Independent Cape’s Bolander was launched in April this year and is classified as an upmarket community newspaper. Printed on high quality paper, it boasts a magazinelike layout and design and reaches only the upper LSM homes in the Cape. A joint venture with estate agents provides the paper with approximately 24 pages of local property advertising every week. “It’s early days yet but there are strong indications that we have hit on a winning model; one that the market really likes,” says David Hill, editor, Independent Cape Community Newspapers. While competition has increased amongst community publications, they remain the papers of choice amongst their readers. Vukani, for example, provides readers with info that is not covered by the dailies. “While everyone in the community reads our papers, we have a special focus on increasing our youth readership,” says Hill. No doubt the move to online during the next few months will help community papers along.

well, as have readers of the print editions. Caxton’s GetIt mags have yet to launch online. According to John Bowles, joint managing director, Caxton, the group has plans to launch online soon – it’s a matter of developing a viable revenue model and finding a system that works for the magazine group (GetIt’s community focus is such that the group’s satellite offices each function as separate entities). “Our magazines are not like other community mags: we’re completely local, as opposed to having a base of national editorial,” says Bowles. He adds that Caxton currently has one GetIt edition in the Western Cape and will launch another two in the region in September.

Radio
Radmark’s Heart 104.9 has an average day listenership (Mon- Fri) of 314 000 (RAMS Feb-May 2007). According to Norman Gibson, Radmark’s marketing manager, the station has seen a steady performance over the past year, with a three per cent increase in Past 7 Day listenership and a one per cent growth in terms of Average Day (Mon – Fri) listenership. “Heart 104.9 maintains its leadership position in terms of coloured listenership, LSM 6-10, age 25-49, in the Cape Town metropole, with an audience of 230 000,” says Gibson. In this category, the station has the highest levels of time spent listening, with an average of 18 hours per week. Good Hope FM experienced major challenges about a year ago, when Past 7 Day listenership hit an all-time low. Station manager Anthony Duke says that the lost

Copyright of SA Tourism

Newspapers, the publication’s website is popular with South African expatriates based overseas. While the newspaper has no specific plans in the pipeline, it has recently relaunched and has seen a very positive reader response. Advertisers are also receiving a good response. The Cape Times has had an increase in its circulation figures and according to editor, Tyrone August, the quality of its journalism is the reason for its success. The paper’s circulation is approximately 52 044 (ABC Jan-Mar 2007). “Our growing readership appears to reflect the need for a strongly local, hard news title in Cape Town, with comprehensive national, political and business coverage, as well as opinion pages which are insightful and engaging,” says August. It recently launched a four-page supplement, Techno Times, which looks at new media specifically and it is hoped that this will attract younger readers to the newspaper. Advertisers are spending more on advertising and revenues are healthy. “The specialist daily supplements offer advertisers very specific markets, which are yielding excellent results. Advertisers are spending more because they are getting good responses through the paper,” says August.

Copyright of SA Tourism

Community magazines: Although
community magazines may be print’s newest addition, they are proving to be very successful. Media 24’s MyWeek magazine has launched an eye-catching website (www.myweek.co.za), complete with downloadable digital formats of the print edition. It includes personalised TV schedules and community noticeboards, as well as rates and zone info for advertisers. The site complements the print mags, which are available in 23 zones across the country (and of which 600 000 copies are distributed every two weeks). According to MyWeek Cape editor, Igna Schneider, since its launch in June the website has been inundated with postings and downloads, etc. Advertisers have responded

Copyright of SA Tourism

audiences have been recovered over the past year, and this may have had something to do with the changes in the music format (in October 2006, the niche sound of only R&B, House Hip Hop and Rap was replaced by 80s

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CAPE TOWN INTELLIGENCE

and 90s hits, mixed with R&B and Pop hits). “The niche was not broad enough to service the core target market of 16-34 year old Cape citizens,” says Duke. The station is active online, with blogs and podcasts; the station website is accessible via WAP.

Outdoor
It appears that Cape Town’s outdoor media are dealing with the same issues that are affecting the outdoor medium as a whole (see the outdoor media feature, page 34). However, stringent restrictions and legislation make it tougher for outdoor advertisers to put up boards in Cape Town than in other municipal areas across the country. The city of Cape Town is enforcing stricter control measures to deal with the amount of clutter, particularly with regard to illegal estate agents’ signage across the Cape Metropole (according to the city of Cape Town official website). As of 1 July 2007, individual estate agents and auctioneers must register with the municipality in order to obtain permission to display property marketing boards and directional signage on Council property. Each agent will be required to pay an annual 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 stickers per agent for the year (limiting the number of directional signs on council property to six). These stickers are uniquely numbered and must be displayed on signboards. They will be replaced at no extra cost if they are faded or damaged. In an attempt to curb the illegal posting of signs, previous charges have been raised and surcharges have been introduced for agents who are not registered.

Commission acted as the lead agency for the SA Exposed initiative at the Cannes Lions Festival in France this year. Over the past three years this initiative has had increasing success in promoting Cape Town as one of the top international commercial production destinations. The Commission also hosts numerous film-related delegations that show an interest in the region’s industry. Recently the CFC hosted international filmmakers from the American

Film Institute’s Project 20/20 for a week of screenings and workshops, as well as an outreach programme in Nyanga for film enthusiasts who are not able to frequent the city. “The AFI has shown great interest in South African content, with special arrangements being made for Western Cape and South African submissions for this year’s AFI film festival. They have also shown great interest in continuing the South African leg of Project 20/20 for South African filmmakers,” says Visser. g

Cape Newspapers (ABC Jan-Mar 2007)
Daily newspapers: Die Burger (Western Cape) Cape Argus Cape Times Die Son Total circulation: 72 310 75 935 52 044 80 994

Free and community magazines (ABC Jan-Mar 2007)
Cape Home Talk GetIt (Waterfront, City Bowl, Atlantic Seaboard) MyWeek (Constantia/Tokai) MyWeek (Durbanville) MyWeek (Helderberg) Net Distribution 117 029 25 083 24 947 20 020 24 947

Free newspapers (ABC Jan-Mar 2007)
Plainsman People’s Post Mitchell’s Plain City Vision (Cape) Vukani Athlone News Tabletalk Southern Suburbs Tatler Southern Mail People’s Post City Edition Tygerburger Ravensmead/Belhar Net distribution 83 504 83 340 80 787 75 560 55 756 55 029 48 969 45 460 38 889 33 980

Film
On the film industry front, the Cape Film Commission reports that the region’s industry has a total turnover of R2.65 billion, of which 77 per cent has been generated in Cape Town. The city of Cape Town’s film permitting office estimates an increase of 40 per cent in production across all sectors over last year’s figures. The film industry provides 6058 direct jobs and 2 501 indirect jobs in the Western Cape (through catering, hospitality and equipment hiring, to name a few). It is estimated that this figure will rise to 12 445 direct full-year job equivalents by 2010. According to Mark Visser, media liaison officer, Cape Film Commission (CFC), the

RAMS June 2007
Station 567 Cape Talk Good Hope FM Heart 104.9 FM Total community (W.Cape) 7 Day Listenership 113 000 586 000 524 000 978 000 Ave Mon-Fri Listenership 62 000 282 000 314 000 -

Top 5 Cape community stations (RAMS June 2007)
Station Radio Tygerberg Zibonele Community Radio Radio 786/ Voice of the Cape Radio CCFM Bush Radio 89.5 Fm Past 7 Day Listenership 287 000 207 000 141 000 126 000 87 000

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

7 DAY [B]ITCH

Chantal Girard, business director, Switch Throughthe-Line advertising

25/06/07
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Off’ Sigh. I can only delay getting up for so long. Mondays at Switch always start with a status meeting – can’t be late. After my panic to get to work on time, I discover that it’s been rescheduled to this afternoon, as we have to present two (genius!) TV commercials to a client this morning. Watching George, our creative director, present our concepts fills me with pride. My team ROCKS. I work with such brilliant people. George is someone you just have to experience – a genius with a heart of gold. Johan is one of the greatest MDs of all time – he laughs easily and rarely growls. As for Simon, our art director – his brilliant concepts astound me. Marco, our designer, can make anything look beautiful. Lauren, our new copywriter, can create a concept from a paper bag, while Kirsten, our other copywriter, knows exactly what to say and how to say it. I am officially surrounded by talent. The rest of my day is spent doing creative and production briefs for a client who needs new marketing collateral – I can’t wait to see what the guys are going to do with this one.

displayed in his office. No easy feat, as I cannot find enough frames in one shop. Thank God I wore sensible shoes.

28/06/07
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Off’ Had to colour pass a direct mailer job at the printers this morning. Good grief, you need to pack a picnic basket just to get there. Everything looks great and it’s signed off. After that, I go to a pre-production meeting for a photo shoot we’re doing for a client on Monday. The photographer, stylist, models, production, creatives and the client attend. I have to say that there are some rather fabulous clothes there.

29/06/07
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Goodbye ‘Snooze’ and Hello Friday. Today we have a farewell – our traffic lady is leaving. Switch Through-the-Line is taking her/us out for lunch. We all go except for George and Johan, who are on a course (golf… is there any other kind?). Lunch starts at 1pm with the team and… doesn’t really end. Go big or go home!

26/06/07
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… So the daily ritual continues. My bed is my happy place. The day starts with a distress call from a client who needs to do some damage control. The entire morning is spent holed up in the boardroom with coffee, developing a PR and advertising strategy. The afternoon is spent in a VERY long status meeting with a client.

30/06/07
BZZZZ!! Open one eye. Who was the genius who said ‘Go big or go home?!’ SMS to Johan: Jo… my head… Reply from Johan: Tee hee. We can do the job bags during the week. SMS to Johan: Job bags? What’s a job bag? Reply from Johan: A toasted sarmi and a pink milkshake will sort you out. SMS to Johan: (It all becomes slightly fuzzy here. Jo, did I ever SMS you back?)

27/06/07
Bzzzz!!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… Holy cow! Someone close the fridge door! Must stay in bed… Forever. The entire day is spent chasing briefs, checking material, submitting material, chasing briefs, checking material, submitting material… In between, I hunt down a client who hasn’t uploaded his new website. He very kindly returns my call to say that he hasn’t done so because he hasn’t paid us for it yet. (Do people like this still exist?) I convince him to load it. The whole campaign is driving customers to the site and he needs a hot site to generate sales. I also zip out to scour some shops for picture frames for a client who wants all the adverts we’ve done for him

01/07/07
This morning I wake up with my personality and both eyes open.

02/07/07
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!! Fumble… Fumble… Pillow over my head… take a deep breath. 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.

Programme 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 robyna@systems.co.za

by fayeeza kathree-setiloane LAW MIX

Print media opposes revised films and publications amendment bill
The National Assembly has adopted the revised version of the Films and Publications Amendment Bill, which seeks to amend the current Films and Publications Act in order to regulate the creation, production, possession and distribution of films, games and certain publications, for the purpose of, among others, protecting children from exposure to disturbing and harmful materials, as well as from premature exposure to adult experiences. It also seeks to make the use of children in child pornography punishable. The Bill, as it was originally proposed by the Parliamentary Portfolio Committee on Home Affairs, sparked an outcry from the print media in particular, as it sought to remove the exemptions which were previously granted, in terms of which all members of the Newspaper Association of South Africa (NASA) were exempt from applying for the classification of content prior to the publication thereof. The Bill originally sought to require all newspapers, magazines and online publications to submit to the Films and Publications Board (for examination and classification) material that contained: descriptions or representations of sexual conduct and conduct which amounts to propaganda for war, the incitement to violence or the advocacy of hatred. These proposed classification requirements were strongly opposed as they constituted pre-censorship – a practice that has been rejected by South Africa’s democratic society as being incompatible with the press and media’s right to freedom of expression under the Constitution. As a result of the barrage of representations from the print media on the unconstitutionality of the proposed classification requirements, the Parliamentary Portfolio Committee on Home Affairs had little choice but to amend the Bill in line with what had been originally proposed. Its efforts at revising the Bill have however not gone far enough, as the threat of pre-publication censorship still exists. In seeking to reinstate the exemptions previously granted to members of NASA, the revised Bill fails to recognise that there are approximately 500 print and online characteristic, that constitutes the incitement to cause harm – would now be required to submit such a publication to the Films and Publications Board for examination and classification, before it could be distributed; exhibited; offered or advertised for distribution or exhibition. The proposed classification requirements are constitutionally overbroad and vague. As a consequence they will restrict the media from reporting on news items that deal with: threats or declarations of war; violent demonstrations; incidents of unrest and race discrimination; domestic violence; child abuse; rape; indecent assault and other related activities. The reference in the Bill to ‘the advocacy of hatred based on identifiable group characteristics’ is also wider than the wording in the Constitution, which only excludes protection of expression which constitutes ‘advocacy of hatred that is based on race, ethnicity, gender or religion and that constitutes incitement to cause harm.’ By extending the scope of hate speech to ‘advocacy based on any identifiable group that constitutes incitement to cause harm,’ the Bill extends its reach to constitutionally protected speech. The Bill will also impose a harsh sanction, in the form of either a fine or imprisonment, for failure to comply with the proposed classification requirements. In its current form, the Bill is therefore only fractionally better than the Bill as it was originally proposed by the Parliamentary Portfolio Committee on Home Affairs, as the danger of pre-publication censorship still remains. Whilst the purpose of the Bill is ostensibly to curb child pornography, it will also have the effect of censoring political speech, as its application will extend to constitutionally protected speech. The Bill therefore remains constitutionally flawed and is likely to lead to many legal battles between media and government. g

Whilst the purpose of the Bill is ostensibly to curb child pornography, it will also have the effect of censoring political speech, as its application will extend to constitutionally protected speech.

publications that are not members of NASA. Hence publishers of all newspapers, magazines and online publications (excepting those that are members of NASA) – which create, produce, publish or advertise any publication that contains: visual presentations, descriptions or representations of sexual conduct; conduct that amounts to propaganda for war; the incitement of violence or the advocacy of hatred based on any identifiable group

Fayeeza Kathree-Setiloane
director, Werksmans Media and Communications (Pty) Ltd (011) 535 8000 fkathree@werksmans.com

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

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