marketing mix magazine march april 08

MarketingMixM E A S U R A B L E M A R K E T I N G I N S I G H T S I Vol 26 Issue No. 3/4 I 2008 I R25.00 incl. vat

CONTENTS

Vol 26 No. 3/4 I 2008 I MarketingMix

2 4

0 7

1 6

5 6

3 2

3 8

I 2 1 I Research 10

Marketing Mix investigates the local

research industry, and explores major

issues, current trends and future

options

I 4 0 I AirportMarketing

Do you know how to make the most

of airport marketing in spite of

airport upgrades? Marketing Mix

takes a closer look at some of the

challenges that marketers and media

owners are facing

I 4 4 I Expert Opinion:Helen McIntee

Helen shares her list of top 20 things

she has learned as a customer and a

marketer

I 4 6 I Expert Opinion:Nicci Columbine

Nicci explains how technology can

be used to channel a marketing

message through contact centres

I 5 0 I Expert Opinion:Lisa Basson

Lisa explains why it’s important to

be innovative

I 5 2 I Expert Opinion:Nici Stathacopoulos

Nici checks up on brands that are

taking on the virtual world

I 5 3 I The GreenShopper Workshopreport back

Marketing Mix delivers the highlights

of the Green Shopper workshop.

I 5 6 I Expert Opinion:Nana NkosiNana believes internships are the

way forward

2 2

2 6

4 0

I 0 2 I Book Review

Marketing Mix reviews the Green

Marketing Manifesto, by John Grant,

and learns how to fit the green

revolution into marketing and sales

strategies

I 0 3 I Ed’s note

I 0 4 I Direct Marketing

Marketing Mix reports back from the

marketing direct best practices

workshop

I 0 6 I Expert Opinion:Richard Duncan

Richard gets hot and bothered about

agency remuneration

I 0 7 I 7 Day [B]itch

Sharon Piehl, tells us how she deals

with traffic jams

I 0 8 I Expert Opinion:Michele Venter-Davies

Horrible consumer experiences leave

Michele wanting more

I 1 0 I Top MediaPerformers

Marketing Mix lists the best in print,

based on the latest ABC figures

I 1 6 I Experientialmarketing

There’s a reason why experiential

marketing is being allocated a larger

portion of the marketing budget

every year

I 2 0 I Expert Opinion:Yoav Tchelet

Yoav makes web usability easy

MarketingMix

1

If there’s one book to read this year, this is it.The ‘Green’ movement is gaining momentum

and if marketers want to keep up, they have to

play ball. But not just any ball. A green ball.

And play with the green ball properly – none of

this ‘greenwashing’ stuff please. You’ll be busted

and the fall out won’t be pretty.

And before you start moaning saying

that green doesn’t fit with marketing and

consumerism, actually, yes it does. You just have

to be clever about it. Grant doesn’t provide all

the solutions in this book (incidentally, made

from sustainable paper, etc, with a warning on

the front cover not to put it in a plastic bag).

Instead, he gives brilliant case studies on how

other true green companies have made a huge

success of their brands, and profits to boot.

Grant also points out the differences in being

true green and greenwashing as well as how to

incorporate green into your everyday marketing

activities.

Here’s a simple breakdown of how this green

thing works:

Grant does fully explain this table but just

looking at it, it is fairly uncomplicated. What

Grant does understand is that the concept of

green marketing is a little more complicated and

therefore a brand can run the risk of getting this

horribly wrong, especially if it’s thinking of

jumping on the bandwagon purely for profits.

‘The first step towards sustainable green

marketing is to grasp that green issues are

pointing to the need for step change, not

cosmetic and marginal improvements.’

Grant sees a huge opportunity to use green

innovations to leave competitors behind. He

uses Marks & Spencer’s extensively as a case

study throughout the book, for its Plan A (ie

there is no Plan B here). What it boils down to

for marketing objectives is that our current

lifestyles ‘need to change beyond recognition’,

which impacts on all marketing, from everywhere.

The role of a marketer now should be to

change consumer behaviour. Grant says this can

be achieved in a number of ways:

Education; get being green out of being

niche; extend green culture outside of the middle

class; and make damaging practices unattractive.

To achieve the greenest marketing, three

things need to happen: commercial outcomes,

environmental outcomes and cultural outcomes.

To get to this point, a new approach to market-

ing is required, but as Grant points out, in the

past 10 years or so marketing has (or should

have been) going this way with a move to more

personalised and community marketing. This

makes the transition much easier. ‘We need

marketing that does good, rather than marketing

that just looks good.’ And there’s a difference

between green marketing as opposed to

marketing green, which is for NGOs, charities,

etc. Marketers need to follow the former.

Marketers need to make green normal as

opposed to making normal green.

Green marketing follows five I’s:

Intuitive – making better alternatives accessible

and easy to grasp

Integrative – combining commerce, technology,

social effects and ecology

Innovative – creating new products and new

lifestyles

Inviting – a positive choice, not a hair shirt

Informed – lack of knowledge is what most

distorts people’s behaviour.

And you mustn’t be confused by the

difference between green marketing and cause-

related marketing. The latter is a link with a

good cause that makes your brand feel good by

virtue of association. Green marketing is ‘a deep

set of reforms’. But you can do both.

The above information is a tiny snippet of

what’s available inside The Green Marketing

Manifesto. It’s chockfull with case studies and

examples of brands getting green marketing

spot on, and those that failed. It’s also filled

with useful hints and tips on how to get green

marketing right, and useful websites to visit for

more information on what being the ‘greenest’

really means as well as tons of references.

There’s no excuse for not knowing how to truly

go green when this book is on your reading list.

It’s a roadmap to change. �

by michelle sturman BOOK REVIEW

The Green Marketing Manifesto

By John GrantJohn Wiley & Sons R344 (approximately)

The green marketingmanifesto

MarketingMix I Vol 26 No. 3/4 I 20082

1. Publiccompany &

markets

2. Socialbrand &

belonging

3. Personalproducts &

habits

A. Green B. Greener C. Greenest

Set an example Develop the market New business concepts

Credible partners

The green marketing grid

Tribal brands Trojan horse ideas

Market a benefit Change usage Challenge consuming

Set new standards/communicate

Share responsibility/collaborate

Support innovation/ culture reshaped

ED’S NOTE

Vol 26 No. 3/4 I 2008 I MarketingMix 3

I have a T-Rex sized bone to pick. I am frequentlyapproached by PR persons, publicists, PAs and

organisations wishing to see their latest exploits in print.

I am offered the ‘exclusive’ story or interview, and I happily

accept, only to see that same story published in another

title two weeks later! Clearly, there is no understanding of

what ‘exclusive’ means nor is there any concept of

editorial integrity.

Here it is then, for those of you who still don’t get it: the Oxford Dictionary defines the term

‘exclusive’ as: ‘reserved for or limited to the person or group concerned’.

As I have had more than a handful of frustrating debacles over this issue, I have decided to

take drastic measures. I am no longer going to accept offers of an ‘exclusive’, unless you can

guarantee me that the content you are offering will not be seen anywhere else (and if it is, then

it won’t be for at least six months after I have printed it). Because I build this magazine’s

reputation on the content within it, especially in an age that finds my readers simply ignoring

anything they have seen somewhere else, If you are not going to respect my mission to make

this magazine content-rich and unique, I am not going to like you or your ‘exclusivity’.

These days, it seems that every Joe who has something to say about marketing wants to say it

at once across every marketing-related medium, with no consideration of the fact that media are

not their personal mouthpieces. If Joe wants to broadcast himself, he should get a blog.

Magazines, especially niche B2B mags, are sophisticated media environments, with sophisticated

readers who have high expectations and demands of their media. And while I do understand

that I have a responsibility to report on industry-relevant events, opinions and expertise, I also

have a responsibility to provide readers and advertisers with value. I will be ruthless in obtaining

this balance, so don’t waste your time trying to woo me with an ‘exclusive angle’ on a story that

everyone else will be getting!

Right, now that I’ve had my rant, let me tell you a bit about the exciting stuff we have for you.

This issue boasts Research 10, a special guide to research in SA (I won’t spoil it for you – check it

out yourself!).

And finally, don’t forget to check out our website www.marketingmix.co.za, which has taken

shape beautifully (congrats to managing editor, Michelle, for pulling it off).

PROPRIETOR AND PUBLISHER:

Systems Publishers (Pty) Ltd.

Tel: (011) 234 7008

North Block, Bradenham Hall,

Mellis Road, Rivonia,

Johannesburg

PUBLISHER: Terry Murphy

MANAGING EDITOR:

Michelle Sturman

e-mail: [email protected]

EDITOR: Fulvia Becatti


SUB-EDITOR: Jenny Bastomsky


ADVERTISING MANAGER:

Robyn Richen


PRODUCTION:

Spencer van Graan

[email protected]

SUBSCRIPTION ENQUIRIES:

Daisy Mulenga


Copyright of all material in thispublication and supplements are

reserved by the proprietors, exceptwhere expressly stated. The opinionsin this publication do not necessarilyrepresent the views of the publisher.

Database:List Perfect

3 938 Jul-Dec 2007

Picking a bone

Marketing Mix Events Programme

• Footprint Awards Workshop: 23 April 2008

• Young Adult Marketing: 14 May 2008

• Marketing at-Retail: 20 May 2008

Sponsorship and delegate enquiries: Robyn: [email protected] (011) 234 7008


DIRECT

Marketing directworkshop reportback

There are many ways to get creative withdirect marketing and that includes being

creative with standard direct mail – but it all

boils down to what you do with the data you

possess. “When you look at data, look at

people; not the names and addresses that have

made up that data,” says Andrew Ambrogioni,

managing director, Action Ambro’s. He says

that marketers need to go back to the simplicity

of data and also let the creatives work on it to

see what they can do. Ambrogioni suggests

that even the plain old envelope can be redone.

“No more labels on envelopes please – there are

ways of personalising it,” he says. He suggests

using the data in the simplest of ways, for

example, determining whether the recipient is

male or female and speaking to them differently.

“There are still huge organisations who do not

know who their customers are. As direct

marketers, we need to find new ways of finding

data. One easy way of doing this is to check

out the new appointments sections in

magazines and papers – here you’ll find a pic,

job title, company and name and should be

able to figure out close to what salary people

are earning.”

One of the most important aspects of a

direct marketing campaign is integration.

Michelle Perrow, managing director of Lesoba

Difference, uses the Dictionary of Marketing

Communications by Norman A. P. Govoni’s

description of Integrated Marketing

Communications (IMC): ‘a cohesive combination

of marketing communication activities,

techniques and media designed to deliver a

coordinated message to a target market with a

powerful and synergistic effect, while achieving

a common objective or set of objectives.’

As Perrow puts it: “It’s not just the

psychological relationship to the brand; you

need to have depth, connective tissue – seeing

the same message from the same medium is

just boring.” Perrow suggests getting the sales

team involved in an IMC campaign. “You must

have everyone involved, IMC is a business

imperative. At the end of the day, if you’re

going to be multidisciplinary, the teams must sit

in one meeting as one, as a brand team.”

According to Perrow, there are three core

areas – promotional mix of tools, the channels

and data tools that are absolutely critical

to success.

Keys to IMC success include a synergistic

strategy, tactical consistency and interactivity.

But, one mustn’t forget the power of creativity

whether or not it’s IMC, especially if it’s a

direct mail campaign. As Kathryn Price McKay,

creative director for PrimaPlus, points out, using

a little bit more creativity would help. “DM must

DO more. DM must BE more – it can’t just be

about reward anymore. Consumers are weary of

it and it needs to stop being formulaic,” says

Price McKay.

Price McKay’s own hidden camera research

shoes that the envelopes that are opened are those

that are more attractive and intriguing. “We need

to treat envelopes as packaging. And then we need

to treat the customer for opening the envelope.”

The bottom line for direct mail is that if it looks like

junk mail to you, it will to the customer.

At the other end of the spectrum, from the

traditional to the new, is mobile advertising.

According to Rick Joubert, executive head,

Vodacom, mobile is twice as big as online in

terms of marketing advertising and South Africa

has over 90 per cent mobile penetration.

And while cellphones are becoming increas-

ingly sophisticated, for now, the mass market

can be reached by simple voice, text and USSD.

And you can be highly creative with mobile,

according to Joubert.

For the direct marketer, a service such as

AdMe enables one to:� Select an audience that matches the target

market profile � Maximise the advertising budget � Guarantee that the marketing communications

are seen and heard by the audience� Integrate mobile and direct response

mechanisms into the ATL and BTL advertising

campaigns, instantly measurable for per-

formance reporting.

Still, there are many questions surrounding

legislation as many new bills become law.

According to Christiane Duval, a director of the

Direct Marketing Association of South Africa,

the marketing industry as a whole has adapted

to legislation well, and it has also caused it to

become more innovative. Technology, especially

the use of Bluetooth in shopping malls and viral

marketing, has a huge future. “E-mails, SMS

and telemarketing can become centres of

innovation as they are economically worthwhile

but they will be affected by new legislation,”

says Duval. �

The marketing direct best practices workshop used Assegai winners as a background to direct marketing campaigns thatreally work.Speakers at the conference were:

Andrew Ambrogioni, managing director, Action Ambro’sMichelle Perrow, MD of Lesoba Difference Rick Joubert, executive head for Vodacom Kathryn Price McKay, creative director, PrimaplusChristiane Duval, a director of the DMA


There are fewer more contentious and hotlydebated subjects in our industry than agency

remuneration.

Agencies’ source of revenue is constantly sub-

ject to client budget cuts as well as increasing

pressure from procurement departments to

show annual savings despite increased workload

and resource needs. The pressure on agency

margins has therefore never been greater and

this has led to the creation of inventive charging

techniques that are designed to extract further

income streams.

Some agencies are paid monthly retainers

while others have a basic monthly fee that is

supplemented with a project price list. In both

cases, this fee has no doubt been determined

based on a projected headcount calculation.

Some clients have avoided the murky waters of

the monthly fee and have rather relied on the

traditional, if not outdated, media commission

formula from the days when there was still a

line between below- and above-the-line. Few

pay the type of rates that were commonplace in

the past though, which has placed agencies

under considerable financial stress.

This situation is further exacerbated by

internationally aligned accounts where the

remuneration deal has been agreed in London,

New York or Paris. In these cases, the percentage

commission is usually woefully inadequate for

the local agency office. For example, five per

cent on a multi-million dollar account may work

well in New York but the revenue that this deal

generates in a satellite office in South Africa,

where its total media billings might be half-a-

million rands or less, barely pays for the agency

to get out of bed in the morning let alone the

types of resources the international brand

automatically expects from its local agency office.

Let’s face it, what would you expect from

your agency if it was only earning R25 000 for

the whole year? Would you expect it to spend

hundreds of thousands of rands on your

account because of its prestigious profile? This

scenario may seem fictional, but sadly, it’s

absolutely real, not that I would want to name

and shame the brand concerned (the story may

be absolutely out of context as perhaps its

remuneration deal with its agency is fairer now.

If not, then this is another example of the

absolute remuneration crisis that some agencies

face with their clients).

It’s not all doom and gloom. Not by a long

shot. Many marketers have developed well

structured and fair remuneration deals that

allow their agency to meet its own profit targets.

Some have even ventured into the spirit of

partnership by exploring payment by incentive

(PBI) and offering rewards to their agencies when

they meet certain pre-agreed sales, market share

or profit targets. This is not an easy area to

agree on as the means of measurement are

sometimes difficult to set and monitor. Market

share or sales could be one such measurement

tool but as it is subject to many other influences

beyond advertising, just how to isolate the

impact of an ad campaign is a tough one to

determine. Often, agencies and clients alike turn

to a more subjective performance appraisal system

and cross-tabulate the results with general

business performance figures. The one area that

can offer a more accurate measurement platform

is the direct response category of direct mail

and online communications. Here at least, the

impact of a particular mail pack or electronic

direct mail (EDM) can be finitely measured and

the ROI calculated.

What further underpins the remuneration

challenge and makes the issue all the more

important to resolve is that marketers expect a

top-quality service and creative product. This in

turn requires the agency to have top talent and

this comes at a price, which is tough for agency

management to find and keep unless it has the

necessary funds. So every time a corner is cut on

an agency fee, the coffer shrinks that little bit

more, making it harder for the agency’s

management to deliver the world-class quality

offering that its clients demand.

Marketers have their own pressures of

needing to meet increased sales targets and

market penetration levels with less budget than

before. Unless things change, the big agencies

will be forced to change the way they work and

this could lead to a growth in start-ups and

smaller players whose overheads enable them to

offer a quality product at the price the marketer

is willing to pay. At least then, marketers will get

the expertise and talent they want. What will

this mean for the bigger agencies out there?

Time will tell. �

by richard duncan EXPERT OPINION

Marketers have theirown pressures of needingto meet increased salestargets and marketpenetration levels with lessbudget than before.

”

“

Richard Duncan

founding partner, The PartnershipSydney, Australia+61 41 154 [email protected]

The remuneration trap

7 DAY [B]ITCH


28/01/08Woke up at 3am with Bell, my seven-and-a-half kilogram cat, sitting on my

bed with a present for her mom – a mouse. After taking care of the mouse

and praising Bell for her hunting abilities, it was nearly time to get up.

Every Monday starts with a team status meeting which involves

updates on client progress, discussing new opportunities and flagging any

items or issues that might crop up. Received final approval on a press

release involving four parties, which is always a challenge and very

rewarding when all the pieces fall into place (especially on a deal which

has been three months in the making).

Made it home in time for my reinstated ‘doctors’ appointment’ with

Grey’s Anatomy – not my night to cook so I relaxed on the couch to

watch McDreamy.

29/01/08Woken by husband preparing to do Ironman training; he brought me

coffee in bed so I could languish a little longer.

Early meeting with a client who has only ever experienced negative

publicity and has now approached our company to change the public’s

perception of it, as well as build and maintain positive publicity. This has

involved educating the client about the many-faceted arena that is

publicity. Then a status meeting with long-standing client who has a good

sense of humour – a nice way to end off the afternoon.

Dinner with friends – so once again off the hook with cooking dinner.

30/01/08Got up at normal time, 5.15am, and fed our two rather large Rottweilers.

Enjoyed treating the cat to a back massage while she ate. Packed cooler

box for the day and proceeded to office for early meeting; hoped to have

time to do admin prior to the meeting but as I looked out of my driveway

saw traffic stretching in both directions. Decided to take a different route

to work, and ended up sitting in traffic till 7.30am, but not going any-

where. Turned around and took option C, which was now merely to get

to the office in time for the meeting. Option C only helped me drive for

1km before once again hitting a traffic backlog. At 8.05am, I realised I

was only a few kilometres from my front gate so I turned around to work

from home till traffic subsided.

Eventually headed for a meeting and that set the mood for the day

with back-to-back meetings.

31/01/08Excited – I’m meeting a business leader who I find very inspiring. He has

worked his way up through the ranks and truly understands the company;

he is passionate and it’s not just about rands and cents. We’re putting

together a 25-year commemorative book for his company and I’ve

enjoyed doing interviews with the staff.

Made it back to the office in time to do a ‘song-and-dance’ routine for

a colleague’s birthday.

Decided to cook for my husband, and got creative with a creamy

tomato lamb casserole. My husband cleaned as fast as I was cooking, so

by the time I had finished cooking the kitchen was clean. Decided to end

the evening reading The Monk who Sold his Ferrari, one of five books on

my bedside table, which I aim to read.

01/02/08Got up in the spirit of joining my husband in his training frenzy. Ran round

the block, decided it wasn’t for me and kicked it back under the bed.

Started monthly management meeting on time. A day in the office to

catch up on e-mails and admin. Fridays are lunch days with the girls at

the office; we catch up on how our week has been and what we’re up to

on the weekend.

Briefed our creative team on a March launch event for one of our

clients; she needs to revert with exciting concepts for next week.

Got home while the sun was still shining and took the dogs for a

run by the river. Enjoyed a relaxing standard Friday night – movies and

takeout on the sofa with my husband.

02/02/08Husband did a three-hour training cycle in the morning, which gave me

time to fit in a hair appointment. Treated husband to a massage at the

local health spa, as he has had a hectic start to the year, and then we

enjoyed a leisurely lunch at the Design Quarter. In the evening, went to a

pink-and-white bling party – husband looked the part in white cut-off

linen pants with candy-pink shirt. His bling accessory was a wand, which

he used to great effect all evening, granting wishes.

03/02/08As this is usually our day to sleep late, we only got up at 7.30am, to

hungry dogs howling for their breakfast. Caught up with the family over

breakfast at Lifestyle Nursery. Did dreaded grocery shopping and spent the

afternoon preparing for a busy week. Browsed through the Sunday

papers to see if any clients were mentioned and had an early night. �

Sharon Piehl, client services director,Inzalo Communications


There are some exceptional experientialmarketers out there – affording consumers

brand experiences that are both unique and

unforgettable. Brand interactions so creative

that industrial theatre needs to up its game.

A Saturday visit to a large wholesale outlet

bestowed a theatrical indulgence second to

none. For nearly 15 minutes we waited uncom-

plainingly in a lengthening queue at the

Information Desk – courtesy of the Eskom expe-

rience we needed to add our names to the

’generator list‘. Like good South Africans deter-

mined not to become negative, we turned this

into an opportunity to indulge in the ambient

sounds of till operators discussing customers’

every purchase; inhaling the fragrance of spilt

pickled onions waiting whiffily to be whisked

away – tomorrow maybe; and savour the build

up of clamminess in the absence of air condi-

tioning (‘let’s admire them for saving energy,’

we said).

And then... just as we reached the front of

the row, the Customer Service officer terminated

her personal cell call and announced ... ’I’m on

lunch!’ No warning, no understudy in sight and

no chorus line to take over. The leading lady

simply hauled out her lunch and entertained us

to a culinary rendering of ’Pampoen‘ as she

shovelled it into her mouth... slowly... and

glared. Then to top it off, in full view of the

patrons now standing three deep, she delved

into her bag, whipped out a product ‘with

wings’ and flaunted it in front of us in all its

glory as she disappeared. I will never forget the

faces of the audience; the collective gasp ... and

the mad dash for the exit before Act II began.

A stopover for a stiff midday drink was now

in order. Time to take solace in the arms of a

hospitality brand claiming to be welcoming. As

we waited (and waited) for a waiter (treated to

the sounds of the bar fridge firing up for take-

off, sniffing the stale aroma of the bachelor’s

party from the previous night and caressing the

sticky table top), we observed a group of ‘movers

and shakers’ enduring a brand experience they

will, no doubt, share with many others.

A drink laced with a fetid lemon slice was

politely returned... only to be replaced by another

bearing half a hairdo floating merrily on its

surface. Management objected to the audacity

of the customers to expect better service ...

produced the bill... and asked the ‘fussy’

patrons to leave. A decision worth its weight in

‘word of mouth’ marketing, one imagines.

Next we soldiered to the ‘fast food’ outlet.

Now, we do appreciate the promise that the

chicken is fresh and prepared on the spot.

During the 40 minutes it took to find the

clucking cutie, rid it of its feathers and doodas,

and convert it into a Mediterranean delight, we

had nothing better to do than observe the staff

arguing over the horse racing card, scratch

hardened thingies off the tatty tablecloth and

view a flyer advertising specials that expired a

week previously. What an experience. But... the

brand is thriving!

We know about ‘moments of truth’.

Customer/brand interactions on a daily,

mundane level are the real brand experiences

and South Africa boasts some of the best expe-

riential marketing companies in the world. What

a shame that the brand managers who are

commissioning these marvels don’t focus as

much time and energy on the daily, often trivial

experiences of customers. It is convenient to

brand customers as ‘unreasonable’ or as having

‘unrealistic’ expectations, but customer relationship

management is about engineering all contact

points. Every connection should yield a positive

experience. This is boring old text book stuff

and basic common sense, but it seems that

marketers are often too occupied with exciting

promotions and initiatives to take a sensory tour

of the realities surrounding their brands.

Every employee should be mentored to

assume ownership of the brand experience

required to satisfy consumer needs for products

and services that provide sensory pleasure,

variety and cognitive inspiration. Brand

interaction should simulate social interaction

and consumers need to be able to relate to

brands on an appropriate level of intimacy and

mutual satisfaction.

There is nothing gained from brand

environments that provide no stimulation or

deliver doses of hostility and irreverence. The

old clichés abound... ‘treat the consumer as

you would a guest in your own home’ ... so just

excuse me while I eat alone in front of my

dinner guests while indulging my intimate

personal hygiene requirements before kicking

the company out for daring to gag on the

floaters in their drinks. �

by michele venter-davies EXPERT OPINION

Every employee shouldbe mentored to assumeownership of the brandexperience required tosatisfy consumer needs for products and servicesthat provide sensorypleasure, variety andcognitive inspiration.

”Michele Venter-Davies

faculty head: Marketing andAdvertising, AAA School (011) 781 [email protected]

“

Experiential experiences


Daily newspapersAs a category, daily newspapers have increased by 70 331 to 1 957 415.

Out of this, 1 528 436 are copy sales and subscriptions. There are 14

digital editions.

The top five daily newspapers are:

Daily Sun The StarSowetanBeeldIsolezwe

The top performers for 2007 are: Isolezwe 98 565 98 565 98 565 (96 485)Daily Sun: 513 291 513 291 513 291 (494 875)Son (Daily) 97 135 97 135 97 135 (72 049)

The mighty Daily Sun may finally be slowing down but it’s still gaining

significant numbers. However, according to publisher, Deon du Plessis,

there is still huge room for growth. “In 2007 we had a good year…but

we outran our distribution infrastructure. Hopefully, we’ve fixed that now.

I think Daily Sun’s growth is far from over…it’s now not a question of

whether we can grow but whether we want to. And when is enough

enough? My answer: Enough is not yet enough. We’re still on the growth

trail…if, of course, we can print enough copies and continue to distribute

them on time.”

Interestingly, the other daily that showed significant growth was also a

tabloid, the Afrikaans Son. Ingo Capraro, national editor of Son says that

the tabloid is doing well because it’s tapped into the community in a way

that tells it the newspaper cares for it. On top of this, last year saw a

complete overhaul of layout in terms of look and feel. “Our news stories

are tops – besides reporting on issues that directly affect – and often

afflict – our community, we regularly come up with hard-hitting, breaking

news. We also have some of the best sports reportage in the country,” he says.

Distribution has also been increased, as has on-street awareness. The

newspaper’s street selling points have grown from 80 vendors to 350 and

PoS within shops and an increase in franchises have also helped. “We also

believe in aggressive – and from time to time controversial – postering,”

says Capraro.

Weekly newspapersAs a category, weekly newspapers have increased by 37 197 to 729 760.

Out of this, 729 756 are copy sales and subscriptions.

The top five weekly newspapers are:

Soccer LadumaIlangaSon (weekly)Mail & GuardianThe Post

The top performing weekly newspapers for 2007 are:Ilanga 105 673 105 673 105 673 (100 906)Mail & Guardian 51 842 51 842 51 842 (48 292)Soccer-Laduma 321 986 321 986 321 986 (303 461)

TOP PRINT PERFORMERS

Looking through the ABC figures for 2007 has demonstrated what

an interesting time print is going through. Most interesting, is that

newspapers have increased circulation while the consumer magazine

section has decreased circulation for the Oct-Dec 2007 period. One of the

main reasons for the decrease in consumer magazines is that a number

of magazines have been pulled from the ABC and out of circulation, but

also the Media24 debacle has left many of its (successful) titles missing

from the past six months’ figures.

While a key focus is the Oct-Dec 2007 ABC figures, Marketing Mix also

took into account a publication’s performance over the whole of 2007 from

quarter to quarter as well as each quarter’s corresponding previous period.

For those who need a reminder, the following magazines were

suspended, terminated, resigned, ceased publication or didn’t submit

figures within the consumer magazine category for Oct-Dec 2007:

Job Mail: terminatedTribute: no submissionSA Health Matters: no submissionShape: suspendedMen’s Health: suspendedAutolocator – Gauteng edition: resignedCaperush Magazine: no submissionDrive 2.0: resignedMaxpower SA: ceased publicationXtreme Machines: resignedKick Off: suspended

Monthly Golfer: no submissionSports Illustrated: suspendedFairlady: suspendedInStyle SA: suspended (now ceasedpublication)Leef: suspendedSarie: suspendedTrue Love: suspendedTrue Love Babe: suspended (now ceasedpublication)Inwater Boating & Fishing: terminated

Village Life: terminatedTruth Magazine: terminatedRide Magazine: terminatedGymnast SA: no submissionThe Wisden Cricketer: resigned (nowceased publication)Art South Africa: resignedNew Homes: no submissionBaby Gro: no submissionBeautiful Brides: no submissionSA Builder: resigned

Circulation keyRed: Subscriptions and single copy sales

Blue:Total paid

Green: Total circulation

Please note that all the figures in brackets refer to the

corresponding previous period.

Top print performers 2007



Ilanga is an institution that is over 100 years old, and continues to grow

despite the introduction of other Zulu titles. According to the Ilanga

team, the launch of the hugely successful Thursday tabloid supplement,

Ilange Le Theku, has set new benchmarks for the upwardly mobile new

generation of readers. Its Monday supplement, Lase Khaya has intro-

duced a whole new set of readers to the newspapers, and grown the

female readership.

The Mail & Guardian has finally broken the elusive 50 000 barrier, so

more power to it. A series of breaking news stories has definitely

helped its circulation figures (SABC internal audit report, for example),

and its powerful website has also more than likely contributed to

increased circulation for the physical newspaper.

As for Soccer-Laduma, this giant just keeps on growing by massive

amounts. While the soccer newspaper doesn’t ‘do’ anything to

increase its circulation except reader events and creative competitions,

it’s the editorial that keeps its fan base constantly growing. “You have

to talk to people in a language they enjoy. You can talk to them in a

language they understand but they may not enjoy or engage with

you,” says Peter du Toit, editor and publisher, Soccer-Laduma. Content

is king and readers rule, is the editorial team’s mantra, and a focus on

topical and interactive features has increased loyalty with the paper’s

readers.

Weekend newspapersAs a category, weekly newspapers have increased by 92 155 to 2 666

955. Out of this, 2 616 549 are copy sales and subscriptions. There are

13 digital editions.

The top five weekend newspapers are:

Sunday TimesRapportSunday SunSunday WorldCity Press

The weekend newspapers on the whole have done exceptionally well

over the past year, increasing figures by almost 100 000. So while

figures for The Weekender may not seem that impressive in the grand

scheme of things, it is worth remembering that a) it’s a weekend

newspaper and b) it’s a very niche newspaper and c) it has a very

desirable readership. The Sunday World has increased figures

substantially over the past year, indicating a market that is showing its

desire to read.

City Press, managing editor Mathatha Tsedu, says it boils down to

really good editorial, including a new supplement for the Gauteng audi-

ence – a weekly eight-page tabloid. “A big point for editorial is a focus

on politics, which is certainly interesting the readers and we’ve now got

a really good investigative team that has found big scoops. We also have

a generally better coordinated leadership team, which means more eyes

over copy and more clever copy. All of this adds to the appeal of the

paper,” says Tsedu. A distribution drive through Media24’s Media

Circulation Services24 (MCS24) has also helped – subscription drives and

new initiatives such as getting through gated communities.

Ilanga LangeSonto, although a relative newcomer to the weekend

editions, is going great guns. Credited with being the first isiZulu lan-

guage Sunday newspaper to be published in South Africa, within two

years it has almost reached 100 000 copies. “The growth of our titles is

ongoing; we have captured the new young upwardly mobile market as

well as kept our traditional Ilanga readers. It continues to grow weekly

and there is something in it for everyone; this is what makes it the

Sunday paper it is. We have the right recipe,” says the Ilanga team.

Consumer magazinesAs a category, consumer magazines have decreased by 58 417 to 4

507 839. Out of this, 4 229 313 are copy sales and subscriptions. The

biggest selling category (even with numerous suspensions and closures)

is the Women’s General with 1 073 961 subscriptions and copy sales.

The top five consumer magazines are:huisgenootyouMove!CosmopolitanIdea/Idees

A lot of the magazines that performed exceptionally well over the past

year are very niche titles such as Noseweek, Wine, LIG and Africa

Geographic. The women’s category and general entertainment suf-

fered severe knocks, as did the sports and men’s category (although

with the closure of Zoo Weekly/Weekliks, it may bounce back this

year).

Condé Nast House & Garden grew by 7.45 per cent (using the total

circulation data only) from the 2006 Oct-Dec period with steady

growth of subscriptions of more than 25 per cent year on year, accord-

ing to the team. “Condé Nast House & Garden has positioned itself as

South Africa’s premier luxury lifestyle magazine. South Africans’ wealth

and buying patterns are ever more diverse, and Condé Nast House &

Garden mirrors and, in fact, leads that trend, as recently increased cir-

culation figures show,” says editor Liz Morris.

Also attributing its success to its editorial is noseweek. According to

Adrienne de Jongh, advertising and marketing manager, noseweek’s

retail sales increased by around 14 per cent on the previous year and

are directly connected to the nature of the editorial, and the resultant

publicity and media attention. “The big stories were the First

Rand/Ansbacher fiasco and the resultant court case which noseweek

The top performing weekend newspapers are:Citizen 53 598 53 611 (incl. digital editions) 55 140 (52 217)City Press 180 321 180 321 195 150 (183 101)Ilanga LangeSonto 84 061 84 061 84 061 (70 291)Sunday World 199 344 199 344 199 499 (184 772)The Weekender 12 058 12 058 12 404 (9 368)


won. In addition, our articles on Judge Hlope and National Police

Commissioner Selebi created huge media interest,” she says.

Retail sales were also an important factor in the increasing circulation

figures of Africa Geographic. As a largely subscription-based magazine, a

focus on retail sales has paid dividends. “We are particularly thrilled with

the ABC results for a number of reasons. Firstly, because they reflect our

conscious and strategic investment in retail sales and, secondly, because

the results help to underscore the increasingly mainstream consumer inter-

est in matters of conservation and environmental concern,” says Tanya

Caldwell, publisher, Africa Geographic. The strategic push to grow reach

involved an increased print run to put more copies into stores as well

more distribution outlets (in particular, Woolworths) and point-of-sales

displays, window displays etc within main CNA stores. A change in

distributor also helped according to Caldwell.

Using the public’s awareness of environmental issues has helped to push

copies. “Editorially, the push was assisted by the themed August 2007 issue

on Climate Change which captured a far broader audience’s attention and

resulted in a 70 per cent sell through. This issue subsequently sold out

within a few weeks of going on sale in stores. Discerning marketers and

advertisers take note!” says Caldwell.

Public awareness and innovative reader interaction helped another

magazine last year, this time in a completely different category. Popular

Mechanics has made good use of increased interest in technology and

driven this further with advertising and innovative PR campaigns (the most

recent that made headlines was the man in a nappy walking through a busy

shopping mall). “Part of our success is due to ongoing contact with readers

and advertisers through eye-catching print ads, edgy television commercials,

trade shows, reader events, letters and online forums.

“We also interact with readers via provocative point-of-sale posters,

newsstand promotions and other strategies,” says Alan Duggan, editor

and publisher of Popular Mechanics.

“After five-plus years on the market, advertisers and media planners are

finally acknowledging that Popular Mechanics is a perfect fit for this tech-

nology-driven world. More importantly, our magazine is making its pres-

ence felt among people who identify with our pay-off line, ‘Be the first to

know’,” he adds.

Cosmopolitan, on the other hand, has increased circulation by virtue of

being such a forceful brand and providing readers with exactly what they

want and expect. The ABC circulation figure for the period Oct-Dec 2007

is 125 454 (paid circulation figure: 123 604). This amounts to a circula-

tion increase of around 11 per cent over the previous corresponding peri-

od. Its supplements always go down well and its October issue, for exam-

ple, offered a sex booklet in a foil bag, which sold over 135 000 copies

and its December issue was its biggest ever at 392 pages.

Real Magazine is another title that has relied on its editorial to drive

sales. With no specials, supplements or any advertising, its circulation has

crept up mainly through word of mouth and well-targeted editorial as

well as an increase in the distribution footprint. “This has been our best

marketing tool and has driven circulation and growth has been a function

of meeting the editorial needs of an underserved reading market,”


The top performers in 2007 are:Drum 100 695 100 728 100 728 (79 895)Move! 130 917 130 917 130 917 (104 507Longevity 23 369 26 955 29 687 (23 279)Wine 11 049 12 524 14 645 (11 936)LIG 28 329 28 329 29 261 (26 181)Golf Digest 35 302 35 452 35 452 (30 545)Condé Nast House & Garden 44 160 49 079 50 060 (46 589)Noseweek 19 777 19 777 19 777 (16 640)Africa Geographic 26 417 26 543 28 826 (25 158)Popular Mechanics 40 099 40 212 43 978 (40 619)Cosmopolitan 123 134 123 604 125 454 (113 255)Real Magazine 56 126 56 126 57 211 (56 033)National Geographic Kids 39 812 39 812 40 405 (33 108)

>p14


says Jonathan Harris, publisher, Real Magazine.

National Geographic Kids has shown phenomenal growth for a hard-

to-reach market and has shown 21.7 per cent year-on-year growth in total

paid circulation. “This strong sales figure excludes distribution of 250 000

copies via a special Engen marketing initiative over the December 2007

holiday period. This title continues to impress readers with fun and inter-

active components – its phenomenal subscriber base is testimony to this,”

says editor Fiona Thomson. The inclusion of the Afrikaans magazine was

also a contributing factor as it increased footprint and boosted sales,

including subscriptions, according to associate publisher, Dene Strain.

A number of covermounts throughout the year and ad campaigns

(winners of numerous awards) helped to increase awareness and conse-

quently push sales. Other initiatives included an Engen deal in December

with an extra 250 00 copies, which were used for forecourt promotions

and while this number is obviously not claimed in the ABC figures, it

helped to boost awareness of the magazine countrywide. Other examples

include providing a magalogue in Weg with a compelling subscription

offer and competition as well as an awareness drive at the Klein Karoo

Nasionale Kunstefees in Oudtshoorn during April for the Afrikaans edition.

Consumer magazines July-DecAs a category, consumer magazines has decreased by 32 613 to 708 500.

Out of this, 535 518 are copy sales and subscriptions. The biggest selling

is Youth with 87 553 subscriptions and copy sales.

The top five consumer magazines are:

Hip2B2

TaalgenootseventeenYour PregnancySoccerlife 442

The top performers in 2007 are:Fit Pregnancy 17 735 18 333 18 333 (15 869)SoccerLife 442 33 477 33 477 33 865 (31 314)Habitat 20 941 20 941 21 093 (15 890)Your Child 17 864 17 864 18 414 (16 023)

Being a niche magazine has certainly helped Habitat to increase its

circulation, especially in light of the difficulties the print sector is facing.

Fine-tuning the magazine in terms of updating its logo, fonts and layout

has contributed but, more importantly, so has extended distribution. “Our

association with Lew Geffen Sotheby’s International Realty saw 5 000 sold

copies added to our ABC figure and this has undoubtedly helped.

“We are hoping to institute a similar arrangement with a leading hotel

chain and a financial institution during 2008,” says Colin Ainsworth Sharp,

publisher/managing editor, Habitat. According to Ainsworth Sharp,

Habitat should remain secure in the face of economic difficulties as its

target market is the high LSM group. “We are very niched and the LSM

sector we are targeting is largely unaffected by the current slowdown, but

whether this will continue is a good question. However, I believe the

high-echelon lifestyle advertising sector we target should remain secure.”

Being niche has also helped Your Child, which is aimed at parents of

kids aged 4-12 years old. “There are no other magazines in this market, so

it’s not as if we were broadening the offerings in the niche, or trying to

claim readers from other titles – we really had to create the niche as we

went along. That takes time, but it seems that in the second half of 2007

we did make good inroads in terms of brand recognition and trial, and in

attracting and retaining readers,” says Kate Sidley, editor, Your Child.

For Your Child, word of mouth is especially important, as is the editorial.

“Our marketing efforts are quite editorially driven, too, and we make sure

that we keep them relevant to our readers and to our content. We also

launched a Readers’ Panel, which has proved popular and has enabled us

to include more ‘real- life’ stories and comments from readers,” says Sidley.

Fit Pregnancy, on the other hand, simply put more magazines in more

places and changed the frequency of the magazine. “We increased the

number of outlets from 1 100 at launch to 2 300 and also frequency

from four to six issues; our double issues performed well, and sometimes

better, than our quarterly issues,” says Gillian Chapman, circulation

manager, Fit Pregnancy. �


Custom magazines (only total circulation andcorresponding previous period)Dish & Skottel 1 656489 (1 431 245)

Dish Africa 236 613 (169 907)

Edgars Club Magazine 899 681 (876 985)

Foschini Retail Group Club Magazine 869 991 (834 198)

Super Club for Kids 86 303 (65 675)

Custom magazines July-Dec (only totalcirculation and corresponding previous period)Jet Club 1 143 607 (1 124 912)

Off-Limits 70 000 (22 882)

Custom Magazines Jan-Dec (only total circula-tion and corresponding previous period)Mercedes 84 007 (46 436)

Mercedes Benz Transport 14 547 (9 020)

Pezula 13 043 (11 472)

>>p12


Experiential marketing is a brand’scommitment to going the extra mile to offer the

consumer something far richer than advertising

can ever deliver. VWV’s Group CEO, Abey

Mokgwatsane, defines it as a multi-sensory

intervention, which generally takes place in an

environment where the consumer is happy to

be engaged. And it’s growing. Experts point to

research worldwide, which finds that an increasing

number of marketing activities are, in fact,

experiential. “If you consider trends around the

world, a recent study by MICE Group PLC

showed that 13 out of the 19 marketing

activities conducted by companies are experiential,”

says David Boon, group director of marketing

and strategy, EXP. Experiential marketing is

increasingly defined as something that needs to

be combined with other marketing functions.

“In the current volatile economic environment,

I would suggest that experiential marketing should

make up at least 60 per cent of the marketing

effort,” says Melvin Chagonda, CEO, Primedia@Home.

He adds that to ensure an above normal return on

investment, one needs to spend more on engaging

differentiating marketing.

As you cannot catch the consumer through

traditional mass media the way you used to, it is

obvious why experiential marketing (and indeed,

BTL media) is growing. “Too much emphasis is

still being placed on passive communications

from both a brand and corporate perspective,”

says Mokgwatsane. For this reason, he says,

marketers are looking for new ways to reach the

consumer. “On the other side, consumers and

audiences are demanding more meaningful

relationships with the brands they choose, and

look to experience the brands rather than merely

receive information about them.”

Experiential marketing is made more manage-

able, thanks to a better understanding of con-

sumer lifestyles, their purchasing behaviour and

so on. “This has moved experiential off and

beyond the stage to engagement strategies

where the brand is required to communicate,”

says Ricardo Gressel, business development

director, VWV Group. But are marketers and

agencies getting it right?

The experts seem to think that only a handful

of experienced players are doing this platform

justice. “Clients seem to look at experiential as a

short-term quick fix solution to a particular sales

problem, and expect the experiential agency to

offer them a tool kit of services that they can

buy,” says Boon. Furthermore, traditional

agencies are now offering experiential services,

but still give priority to traditional media (with

true experiential being the afterthought, or

something that is outsourced at the last minute).

A poor understanding of what true experiential

marketing is, and how to pull it off properly, is

also a major issue. “We battle to sell it to clients

via agencies; I think this is because it’s hard

work, with intense logistics. It requires specific

training and takes place in a very different

environment. It’s far easier to deal with TV and

radio,” says Jacques du Preez, managing

director, Provantage Media. The average

campaign brief does not address this

EXPERIENTIAL MARKETING

Experiencing brands betterExperiential Marketing Forum’s 2007 Research: key findings (www.emf.com)� The experiential marketing label has many definitions and companies are confused

about what they will get from it� One third of respondents consider it to be the lifeblood and core of their organisations,

around which company philosophy is built. Half of respondents consider it a tool forbuilding relationships, engaging prospects, stimulating trial and creating buzz. Theremainder consider it to be a frontier (an approach they might explore depending ontheir courage or their clients’ needs).

� Many respondents think engagement is the strong suit of experiential marketingfollowed by giving a positive experience, increasing sales, and getting prospect’sattention. However, the respondent’s concept of the role of experiential marketing isdependent on how they use it in their work (ie either implementing or evaluating it).

� Campaign objectives accomplished by experiential marketing can include: makingprospects more receptive to other marketing, fostering believability and trust,motivating consumers with the urge to respond, stimulating voluntary brandengagement, converting prospects to customers and transferring ownership of thebrand to the consumer.

� Experiential marketing is most widely associated with the terms ‘sensory experience’,‘interaction’, and ‘relationship’. Also, with ‘memories’.

� The biggest risks associated with using experiential marketing were: lack of controland limitations of the impact of event-based tactics; the difficulties of training andimplementation as well as bad experiences, which will erode the brand.

>p18


platform either. This is why specialist

agencies have developed strategies and

methodologies that are more specific to this

platform. Indeed, Du Preez is finding that more

clients are choosing to go directly to specialist

experiential agencies, instead of going through

media planners and regular agencies. “In the

South African context, we have a very strong

agency culture that generally leads to strategic

thought of a brand’s communication strategy.

In so doing, priority is given to traditional media

and the balance is allocated to experiential, not

affording it a real place and chance in the

budget to be part of and have a meaningful

impact,” says Boon.

The brief for an experiential campaign is

unique, and, as Chagonda points out, it should

be open-ended enough to create room for

creativity. “Unlike a normal brief, the wider the

opportunity for creativity, the higher the chance

of a cutting edge proposal,” he says. The initial

brief proposal should be simple, detailing the

target market and the implmentable aspects.

The second level of the proposal, detailing

implementation, must be acceptable. “My

advice is, if you’re able to sell your proposal to

marketers, as a mimimum, ‘implement it

properly’,” says Chagonda. There should be

sufficient planning and preparation made

upfront.

Running an experiential campaign in conjunction

with above-the-line advertising lends it credibility.

“It creates pre-purchase dissonance, allowing

consumers to knock off their concerns even

before they purchase,” says Du Preez. But

research indicates that, as with most media,

integrated campaigns are the most effective. An

integrated approach widens the reach and

appeal of the campaign. “You tend to find that

TV, radio, outdoor, door drops and newspapers

are great for publicising the campaign,” says

Chagonda. He has found that supporting

experiential with these media results in a greater

uptake. FMCG goods, as well as service innova-

tions (especially in the banking and telecommu-

nications industries), and bit ticket products, will

benefit from aopting an experiential approach.

Measurement of campaigns is not only

essential, but can be successfully implemented

(by tying the campaign into a trade channel,

for example, or to a model that generates sales

leads). Chagonda maintains that ROI is an

essential measurement, as is a strong call

to action.

“The feedback cycle is quick. Customers will

tell you immediately what they think of your

brand in the context of an experiential cam-

paign,” says Du Preez. And these campaigns

allow for adaptations and tweaks to be made to

them quickly and easily (or at least, they should

be flexible enough to allow for this).

What are consumers looking for? During an

experiential event, says Du Preez, you are

swapping consumer time and attention for a

few critical things: the latest news, an emotional

connection and entertainment.

Experiential marketing is not limited to

external brand activities. Internal employee

experience is becoming increasingly important.

Likewise, the realisation that experiential

marketing is an essential part of CRM. Some of

the more popular trends in experiential market-

ing, says Gressel, include role play for research,

industrial theatre, team building and personal

recreational development through activities such

as mountain climbing and basketball inside and

pop-up retail.

Looking ahead, agencies will need to invest in

the right training and tools to enable them to

develop effective strategies for clients, because it

is clear a growing number of brands are recog-

nising the importance of experiential. There is

evidence of increased spending in this sector,

and bigger budgets.

Experiential will need to occupy a more

prominent place in ongoing and integrated

marketing campaigns, rather than be a short-

term solution or brand-booster quick fix. Clients

and brands will need to be more proactive

about getting their experiential partners

onboard from the start to achieve this.

And while events (live concerts, parties,

branded functions etc) have generally been the

first thing marketers think of when experiential

marketing is mentioned, it is not the only

option. Marketers will need to be more creative

in using alternative and traditional media to

create experiences around their brands.

Measurement and evidence of ROI is

something that experiential agencies and

marketers will need to be able to deliver to

their clients, as research indicates that this

is a key obstacle in the uptake of experiential

marketing. �

EXPERIENTIAL MARKETING

The Jack Morton 2006 Experiential Marketing Study: key findings (www.jackmorton.com)� Consumers don’t prefer experiential marketing to other media (it ranks third after

TV and the Internet), but they do report that it is more influential, with 82 per centof respondents agreeing that participating in a live event is more engaging thanother forms of communication.

� 80 per cent of respondents agreed that participating in experiential marketingwould give them more information than other media.

� 80 per cent of respondents agreed that they would be more likely to purchase afterattending a live marketing event.

� 85 per cent of respondents agreed that participating in a brand experience issomething they would tell others about.

� Integration with the Internet was found to be the ideal way to relay informationabout a brand or product, while integration between experiential and word ofmouth best allows brands and products to relate to consumers’ interests andconcerns. Direct engagement with the consumer (via experiential marketing) leadsto spur of the moment purchases.

� 18-23 year olds are lifestyle driven and want brands to communicate to themthrough their interests. The 24-37 year olds demonstrate a strong affinity forexperiential marketing in the workplace (particularly live events). The 38-49 year oldswant brands to communicate their value. And 50-65 year olds, who have leisuretime and money, want experiential events to teach them.

� Preference for experiential marketing by product category finds shoes in first place,followed by food and beverages, clothing, personal/beauty products, cars andhousehold products.

� Women are significantly more influenced by experiential marketing than men (whichis crucial, because women own or influence such a high proportion of purchasedecisions).

� Only 33 per cent of employees are satisfied with the quantity and quality of communicationfrom employers, although they want to be engaged, especially through events.

>>p16


While reading through the latest webtraffic statistics from the major South African

publishers, one big question came to mind:

How do they measure the usability aspect of

their websites?

I raise this question quite often with my col-

leagues in Europe and the US. Web usability is

somewhat of a forgotten science when it comes

to online media.

What is web usability? Well, in short it’s the

process of ensuring the best possible user expe-

rience on a website.

In 2004 a company called Yahoo! established

an interesting division, with the sole purpose of

enhancing user experiences across Yahoo!’s web-

sites. Aptly called the ‘Exceptional Performance’

group, this small team set about taking Yahoo!

to another level of end-user experience. It

measured a multitude of elements on its web

pages such as the use of images, JavaScript,

cascading style sheets, browser versions, etc.

During the re-engineering and testing, the team

at Yahoo! managed to achieve a minimum

speed performance improvement of 25 per cent

on its sites. This is just one example of what can

be achieved when you focus on improving the

end-user experience on your website.

Web usability can get quite involved, but the

golden rule is to focus on making sure your

users have the best experience when visiting

your site. This can be a matter of a performance

increase to make the site load faster or it

can involve a multitude of elements such as

improving the navigation, speed, readability,

layout and more.

Many companies that have websites make

the mistake of assuming that users will

interpret the layout, and look and feel of their

website the way they do. It is crucial to get the

basics right and to keep an objective overview at

all times.

The advent of website analytic systems has

helped to improve the accurate monitoring of

user behaviour on a website. But alas, this is

not always enough, especially when dealing

with e-commerce sites and those that generate

business online.

Advanced page capturing technology, which

shows user movement on the screen and

across your website is already making inroads

into the analytics market and when used

correctly can provide a wealth of information.

The combination of real-time analytics (which

give you information while it’s happening, as

opposed to waiting 24 hours for data from

current analytic systems), with other

technologies such as live support and other

tracking systems give marketers a whole new

way of tracking and understanding user

behaviour online.

It’s not enough to look at the web stats

provided by your hosting company to reflect

accurately what people are doing on your site or

how they perceive the experience of browsing

your site.

Web usability is about bottom-line results.

By employing not only cutting-edge analytics

technologies, but also some old-fashioned

sampling methodologies, your perception of

your website will be turned upside down,

believe me!

Recently I met with a large e-commerce com-

pany that was quite happy with its online sales

and growth. Year-on-year growth of around 40

per cent is great and keeps investors happy. But

when delving a little deeper into the user experi-

ence, I found that its growth could easily be 10

to 20 per cent more. A big problem it had, but

wasn’t even aware of, was that users spent 60

per cent of their time trying to find products.

That’s okay, don’t you think – it’s an

e-commerce site after all?

Not really, because 24 per cent of those users

left the site before concluding their purchases,

because they were not prepared to waste more

time searching. This was confirmed when the

search system was upgraded and within seven

days, the average sales on the site increased by

18 per cent a day.

Not bad, but I went even further, and

through an analysis of user behaviour, and the

time it was taking them to make purchases

after they had found what they were looking

for, I discovered that this also needed slight

improvement. A new checkout system was

implemented which cut the amount of time it

takes to checkout in half – this resulted in

another six per cent rise in sales after 10 days.

It’s changes like these, and the analysis of

every piece of information, layout navigation,

images, look and feel, and much more, that

contribute to the ultimate success and growth

of your website and business online.

Web usability, if done correctly, can be a

time-consuming and involved process, but it will

always generate results, whether you have a

blog or a large e-commerce site. I always

suggest building a web usability strategy in

small steps and to slowly tweak each piece of

the puzzle, so to speak.

Web usability, just like search engine

optimisation is a never-ending process and the

sooner you employ it as part of your overall web

strategy the better your bottom line will be. �

Web usability for dummies

by yoav tchelet EXPERT OPINION

Web usability, just likesearch engine optimisationis a never-ending processand the sooner youemploy it as part of youroverall web strategy thebetter your bottom linewill be.

”

Yoav Tchelet

director iLogic (011) 832 [email protected]

“

RESEARCH 10 I MarketingMix I Vol 26 No. 3/4 I 200822

RESEARCH 10

A note from the editor:

Research 10 came about after a discussion between publisher Terry

Murphy and some industry stakeholders who felt that it was time for a

review of the research industry in the light of the fast-changing world that

we live in.

In South Africa in particular, we have seen enormous socioeconomic

and political changes over the past 10 years and the good news is that

there are more to come. In addition, the technology revolution is far from

over and will affect the lives of every single person on this planet.

At SAARF, a large part of our activities is to look at the future and try to

anticipate the changes that we can expect. Due to the size, complexity

and investment that our surveys require we normally work with five- or six-

year contracts. To think that we can accurately determine what the situa-

tion will be five or more years from now is, unfortunately, not possible.

However, too many people think that future planning is a waste of time

and that is why many countries and organisations find themselves unpre-

pared for events that could have been anticipated.

I hope that the glimpse that Research 10 gives you into the current state

of play as well as the near future will be enlightening and will assist you to

be better prepared for the inevitable change that is round the corner.

Unfortunately, we also face other issues that will to a large extent

determine our actions in the future.

The dearth of skills and the flight of experienced people from our indus-

try are both frightening and tragic. The fact that the South African schools

system produces people that cannot add two figures together without the

aid of a calculator (and sometimes even with the help of a calculator)

means that most school-leavers are unable to become successful

researchers.

Numeracy, or rather the lack thereof, is probably the biggest failure of

the new democratic South Africa and will haunt us for many years to

come. Add to this the fact that many companies have closed their

research departments and in the process lost the knowledge and skills

accumulated over many years, which further exacerbates the situation.

So, for all of us in research, the message is clear. It is not going to be

smooth sailing. We’ll have to dig deep and adapt to the challenges to a

much greater extent than previously contemplated.

However, we still have a strong base from which we can operate and

if, as an industry, we work together to overcome these shortcomings, we

will be able to dodge the curve balls that will be coming at us from

all angles.

As the Chinese saying goes, may you live in interesting times!

Paul Haupt

CEO, SAARF

A note from the consulting editor:

Where would marketers be without research? And what would

marketing look like without research? For a start, would

anyone know that black diamonds existed, for example, or the fact

that kids actually like Mo the Meerkat? Probably not. Guesswork

and (maybe) sales figures would be all we’d have to go on. And

some might argue that this is enough for any brand to get by. After

all, isn’t the whole idea behind marketing to sell products, regard-

less of how much jargon and marketing gumpf we can come up

with in the middle of the night?.

Essentially, brands would not be able to operate without some

idea of what the target market looks like (how they walk, talk, eat,

shop, play and sleep). Today, not knowing exactly where your tar-

get market is, and exactly how, when and where you can make

yourself available to it means that you are as useful as a milk

bucket under a bull.

Mass marketing doesn’t work as well as it used to, at least not

without a little help from below-the-line and alternative media.

And figuring out how to manage all of that without making a mess

of it requires a decent amount of research and insight.

Plus, the board wants affirmation that the huge amounts of

money it gives you each year is actually doing something tangible

(sales, brand share and so on); and you can’t prove that without

research.

That’s not to say that research is always right or easy to carry

out. It’s not. It is often a major investment (if it’s not, it might not

be taken seriously) and it will sometimes tell you things you don’t

want to hear. The only rule is to do it right.

Research in SA is on par with global standards, if not better. After

all, where else in the world is there so much diversity, across so

many layers? Our researchers are developing methodologies and

models that are unique and fascinating, and could pave the way

for research around the world. It seems the major issues are

around access to research and an understanding of how it works,

what it means and how to use it. This is something that researchers

and the marketing industry will have to address collectively.

Moving forward, I hope to see more creative thinking around

research and its application.

I hope that Research 10 sheds light on the industry as a whole

and addresses some of the questions and issues around research

in SA. Please visit our website for extra content and information

(with so much to say, we ran out of space in the magazine!).

Enjoy!


RESEARCH 10

Research in South Africa:

the big issues The research industry in SA is top class, with researchers in the know assuring

us that our methodologies and standards are up there with global standards

and best practices. Increasingly, global research institutions are acquiring local

research houses – we’ve seen TNS joining forces with Research Surveys, and

Ipsos linking up with Markinor. This is good news: not only are local research

houses benefiting from global support structures and resources, but they are in

turn impacting on global research with local perspectives, and unique models

and methodologies (after all, our society is unique and highly complex, so our

research models are proving dynamic and relevant).

Looking at the research industry a little closer, it becomes clear that there are

some issues in and around research. Research 10 explore some of the big issues.

The high price of insightsResearch can be very costly, and many brands have to plan and set aside a

substantial portion of their budget for research (which must be justified

post-campaign).

As Donald Liphoko, associate media director, The MediaShop, says, insightful

consumer research that is actionable, adds value to the media decision-making

process and influences the brand decision-making process is uncommon due to

the costs involved. “This is a huge drawback,” says Anina Maree, client services

director, African Response. “Agencies end up using what information is available

to them, and assumptions are made to fill in the gaps.” But, as Tiaan Ras, man-

ager: Marketing and Media Intelligence, Ads24 points out, classic research is

expensive; it needs to be deliberately viewed as a positive investment. “Too

often, research is a grudge purchase that is made because the marketer has

money for it, and if they don’t use it, they lose it,” says Heidi Brauer, director:

Marketing and Client Relations, Ipsos Markinor. “Ad agencies are the worst

offenders in this case.”

Researchers admit that expensive, large-scale budgets are not always neces-

sary or effective. As Andrew Fulton, owner, Eighty20 points out, secondary data

is inexpensive. “The trick is to look for databases that have large enough sam-

ples, are accurate and relevant to the problems they try to solve.” Synergised

studies have emerged as a viable option, where two or more brands or compa-

nies will conduct a study together to determine major trends and insights.

Omnibus studies might be very effective in testing something basic, in a short

time, without excessive cost. And perhaps online or mobile methodologies will

emerge as cost-effective solutions, though at present, these are not being used

to any great extent.

“Companies spend millions on research when there may actually be simpler,

cheaper and more effective ways to get insights,” says Fulton.

Lack of understanding and skills shortageThere is the complaint that some marketers and media planners are not delving

beyond the basics of research data; that they are quick to use LSMs or the Black

Diamond study, for example, as the be-all-and-end-all, and might base a cam-

paign on this without doing further research to get a more detailed picture of

their market. The result is a campaign that doesn’t hit the bull’s eye and, too

often, marketers and media planners are quick to blame the research.

Sarel Du Plessis, CEO, Ads24 believes that while marketers might have a

good understanding of their target audience, they tend to think of the targeted

group in broad strokes. “In reality, people, although they may be in the same

LSM group, are not the same throughout the country. Marketers should investi-

gate their target audiences at more regional and local levels, and understand

the differences,” he says.

Liphoko says that existing studies (such as the AMPS, LSMs and Black

Diamond) are frameworks for understanding macro trends and not a substitute

for brand-level research (which can have markedly different results compared to

the overall category data). “I think the criticism has to be put into its proper

context. Most planners criticise the misuse of segmentation studies in marketing

decision-making,” he says.

And then there’s the fact that good research takes time. “Everyone wants a

quick solution, so they buy research and shoe-horn it into their own research,”

says Brauer. Research should be factored into the whole branding programme

from the start. Simply looking to one resource for answers is risky – any errors in

the database will skew your view on the market.

“The paradox is that marketers are battling to be heard in the boardroom.

There’s an attitude that if they can prove their ROI through surveys and

research, then they will get more credibility in the boardroom,” says Shirley

Benney, CEO, Ipsos Markinor.

Perhaps there is not sufficient understanding of research and segmentation

models among marketers and media planners. Take the LSMs or AMPS, or even

the Black Diamond segments – each has been criticised for falling short of its

purpose to define specific market(s). But as Maree says, everybody’s using these

as common currencies. She goes on to say that these studies have their place,

and when they are used in the manner intended, they are effective. “People

have a limited understanding of how they work,” she says.

The Ipsos Markinor researchers maintain that any research or segmentation

study will present the facts or trends at a particular point in time and within a

particular context, and must always be seen as such. “With any research, you

should be asking ‘why’ three times, and if you can answer all of these, then

you’ve got a solid case,” says Brauer.

This might be something that tertiary institutions should address more vigor-

ously. Perhaps research houses and marketing agencies need to be more proac-

tive in educating one another and developing the right skills between these

industries. “The research itself is not the problem,” says Ailsa Birch, marketing

director, ACNielsen SA. “It’s that there are no skills to take it further.” She has

found that some clients will poke holes in the research when it doesn’t yield the

answers they were looking for, or when it doesn’t reflect what they think they

already know. It all boils down to their understanding of the role of research.

But it goes beyond this – a lack of skills and training (on both sides of the

fence) as well as high employee churn is contributing to the problem.

For Gordon Patterson, MD, Starcom Media, there are three issues at the centre

of the talent shortage. The first is tertiary education – Patterson believes that

these bodies need to measure their success by the quality of their graduates,

not by the number of graduates they produce. The second issue is that the

profession of media planning and marketing is not marketed effectively

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 25

RESEARCH 10

to the youth. “We need to have a peer group that inspires,” says Patterson.

Thirdly, the profession should be more discriminating and selective of people

who have the right skills.

John Bowles, joint MD, Newspaper Advertising Bureau (NAB) believes that

the advertising industry has changed, and business models do not have the

margins to attract the skills, invest in staff and reward them appropriately. “In

the past, agencies used to do regular research, had research managers and

automatically offered that to their clients. As that industry has carved itself into

specialist services, research has taken a back seat,” he says. And the media

owners who do conduct research find their credibility is questioned.

New planners and marketers are coming into an industry that has no culture

of research, and no understanding of the quality of research. “Their depend-

ence on or desire for good research is non-existent and their ability to use it to

make decisions is not a priority,” he adds.

The modern researcher needs to be able to do so much more than crunch

numbers and spot trends. “It’s not only numeracy skills that are crucial, but

also critical verbal thinking. What good is it if you understand the numbers, but

can’t put the trends into words or make sense of them,” says Ras. The ideal

researcher would have a healthy mix of the two skill sets, he adds. However,

marketers and media planners should be involved in training that gives them a

more comprehensive understanding of research.

Employee training and mentorships are suggested as means to address the

skills crisis and uplift standards. But, as Birch points out, training does not give

employees experience.

“Training does not give researchers the right experience or the opportunity

to get to know the client and build a relationship with them,” says Birch.

Interestingly, the number of research houses that offer employee training has

dropped in recent years, as has the number of brands with dedicated in-house

researchers. “On-site research and consultation are costly, and many clients do

not see the value in it,” says Elmari Campher, Customised Research director,

ACNielsen. She points to the dismal success rates of new product launches

as proof that brands are missing out on the benefits of quality research and

in-house research teams.

Is media planning all it’s cracked up to be?Media planners are a bigger problem in the issues of research, says

Neil Higgs, director: Innovation and Development, TNS Research Surveys –

they are too focused on numbers. “It’s not only about reach. The thinking of mass

marketing days is over. In today’s fragmented media markets, and in the age of

niche tribes, this thinking is no longer valid,” he says. After all, niche titles may not

have the biggest circulations, but their readers consume every page of their favourite

mag (including advertising) and are therefore a more valuable media buy.

Planning programs and software packages make it easier to access existing

research, and create media plans and campaigns based on this. But these are

often used without a good understanding of how the research behind the

figures works. “In this case, the researcher or marketer is taking the research

too literally. It must be contextualised and given a background. The underlying

trends must be understood and the full story behind the numbers should be

explored,” says Maree.

For media planners to be familiar with every magazine, newspaper, radio

show and TV programme is virtually impossible. But Du Plessis says that more

and more marketers and planners are seeing the value of including ‘softer”

issues (readers’ headspace or a magazine’s editorial positioning) into the

factors they consider. Perhaps this is the way forward.

Bowles believes that media planners (and marketers) have inherited

traditional techniques and definitions that they have to use, and for them to

change that behaviour would be very difficult. “I think they are frustrated but

willing to take on new research that can help them plan better and become

more informed to make calculated decisions.”

Briefs fall shortBriefs are also not up to scratch, say researchers, and again, this is the result of

a poor understanding of research and its role in marketing.

Campher says that the briefs they receive from clients are often not up to

standard, and it would seem that these clients don’t know enough about

research to really put together a brief that can be actioned by the research

house. She goes on to say that the research houses have upped their game,

and are providing a myriad of research solutions. “But are they being used?

There is always doubt as to whether there is someone responsible for this.

There’s a definite gap.”

Campaigns are often not briefed in the right way (often verbally, says

Patterson). “In terms of comprehension, I’d say that most clients/agency

personnel have a working understanding of research, but if it’s a real problem,

then perhaps the research companies should prepare a template which could

form the foundation of a checklist,” he says. But the media is also to blame,

for misunderstanding and misusing research; journalists who don’t understand

the research data and objectives, for example, will sensationalise certain stud-

ies (but are not always reflecting on the research in the right way).

Working togetherThe relationship between the agency and the researcher is also under the spot-

light, with researchers saying that clients are sometimes not willing to be open

or to share their business models and brands with them. Mari Harris, Ipsos

Markinor director, insists that jargon be left at the door (or at the very least, be

discussed, so that all parties have the same understanding of the jargon and

therefore the same expectations). Likewise, researchers across the board admit

that briefs should not be communicated via e-mail or telephone, but in person,

where discussion will clear up misconceptions and help to drive the research

forward with greater focus.

Clients are urged to be more open about what the research did for them.

“There is no 360-degree approach: very seldom do we actually get feedback

from clients,” says Birch. Leaving our researchers in the dark about what

worked and what didn’t impact negatively on the industry. Some researchers

believe that local marketers and planners need to up their attendance at

research presentations and seminars.

But perhaps researchers need to change the way they are viewed. “We are

not good at positioning ourselves as equal professionals, so we are simply

seen as a supplier. And our credibility is compromised,” says Brauer. Research

needs to be positioned as a creative field, based on strong scientific founda-

tions. She adds that researchers don’t ask their clients enough questions to

understand their needs and businesses better, and to find out what decisions

are being made based on their research. “We ask our clients what it is that

keeps them up at night. What a client needs is not always what a client wants,”

says Brauer.

A complex marketOf course, the complexity and dynamism of the South African population

is both a treasure and a problem. “Coping with all the information out

there is quite a task,” says Ras. And as the markets evolve, the questions we

ask of them also need to evolve. The boxes that we try to put people into

to be able to count and measure them are changing constantly. “The question

is, are we assuming the right things about them. Yesterday’s facts are today’s

fiction,” he says. Perhaps sampling needs to be better understood and con-

trolled to create a better understanding of the complex South African markets,

adds Birch.

“There is interesting stuff going on outside of classic research surveys. For

example, the intercept research that takes place at the taxi ranks or filmed

interviews, such as those collected by c.i.a’s NOW project,’ says Ras. “We

need to start thinking out of the box,” he concludes. �


RESEARCH 10

The SAARF All Media and Products Survey (AMPS) is an in-home face to face

personal interview (conducted using CAPI, that is, Computer Assisted

Personal Interviewing). Respondents are asked questions relating to mass media

consumption, ownership of motor vehicles, durables and household items, as

well as personal items; they are also asked about their financial services, their

personal activities (holidays, shopping patterns and Internet usage), as well as

their product and brand usage or purchase.

The AMPS sample is currently just over 21 000 adults per annum, and fieldwork

runs from mid-January till end of June and then from July to December. The AMPS

sample is a multi-stage area stratified probability sample, pre-stratified by province

(9 strata), community size (4 strata), gender (2 categories) and age (4 categories)

adding up to 288 cells. In urban areas, the sample is collected by using a random

starting point and selecting systematically with a fixed interval every 9th address

number. A cluster of four addresses are selected at each primary sampling point to

save travelling costs. In rural areas, sampling points are selected using maps of the

surveyor general’s office. Again, a starting point is selected at random and every

Nth dwelling is used. Clusters of two are used.

One respondent is selected at every address, using gender and age to ensure

a proportionate sample. Inhabitations at mines and hostels, as well as domestic

workers, are sampled differently, in accordance with their gender composition.

“AMPS is the official currency for printed media and is still doing a great job in

determining reader incidence and the sustainability of the match between target

market and reader audiences,” says Sarel du Plessis, CEO, Ads24 and current

chair of SAARF. “Although AMPS is sometimes criticised, compared to similar

surveys throughout the world, it is still of the highest quality”. In June 2007, the

AMPS study was audited by Erhard Meier, an independent international consultant.

The audit found that the AMPS study is a well designed and well executed survey,

comparing well with international standards.

In March this year, SAARF released the results of a new battery of attitudinal

statements which are now included in the AMPS survey. The statements test peo-

ples attitudes about subjects such as advertising; cultural traditions; patriotism,

and so on. “The results of this valuable new addition to AMPS not only give us

interesting information about people’s attitudes towards important issues, but,

because it forms part of the AMPS survey, the data can be cross-tabbed with

any AMPS product, brand or with the mass of media consumption information

that AMPS contains,” says Paul Haupt, CEO, SAARF. �

Back to basics: LSMsDuring the 1980s, marketers used to segment markets by separating them

into either rural or urban markets. However, it was evident that the

differences between the rural and urban markets were disappearing fast.

“SAARF then started looking for a segmentation tool that would be better than

every single demographic,” says Paul Haupt, CEO, SAARF. Around this time,

SAARF was approached by Eddie Schultze, of Unilever, with a new take on

research. Schultze believed that SAARF was not looking in the right place, and

he pointed out that ownership of TV, radio and motor vehicles, for example,

would allow for interesting segmentations. When looking at ownership in different

combinations it became possible to plot the population and segment it.

SAARF decided to adopt this approach to segmentation, using mostly existing

AMPS variables and the power of multivariate statistics. These variables were

statistically ranked according to their discriminatory strength and the strongest

discriminators selected. From 70 odd variables that were analysed, 13 were selected,

and these were used to segment the population into eight simple groups.

“We published this for the first time in 1990, and it was very well received. It

really worked from day one,” says Haupt. “Over the years we have >p28

The results of this valuable new addition to AMPS not

only give us interesting information about people’s

attitudes towards important issues, but, because it forms

part of the AMPS survey, the data can be cross-tabbed

with any AMPS product, brand or with the mass of media

consumption information that AMPS contains.

AMPs


RESEARCH 10

updated and changed the LSMs, continually improving them.

Today the SAARF Universal LSM is an excellent segmentation tool, and is the

most widely used segmentation method in South Africa. It has also been

adopted in more than a dozen other countries and a Pan African LSM has

also been developed.”

The strength of the LSM tool lies in the fact that it is the result of the

combined efforts, money and research impetus of three key industries –

advertising, marketing, and media. This combined force means that SAARF

has the budgets to do research on a substantial sample. “It also means that

we are able to do standardised research that compares apples to apples. In

addition, and this is the most important point, it also allows for the research

to be shared instead of each individual industry keeping its findings to itself.

This is the basis of a common currency when all users have access to the

same research” says Haupt. As Lucas Raganya, technical support executive,

SAARF, points out, because the LSMs, RAMS, TAMS, etc all use the same

respondent base, there is minimal wastage of resources; plus, the research is

transparent and credible. The SAARF surveys have been audited by inde-

pendent international experts on more than one occasion, and have been

given the thumbs up.

Another plus is that the LSMs are independent. “They belong to the

industry and therefore there are no vested interests,” says Claire Milne,

technical support executive of SAARF. A further benefit is that the LSMs have

become a common currency, and there is virtually no important survey in our

industry that does not contain the SAARF LSM’s, thus enabling our stakeholders

to use the same measure in different research. To keep the LSM current, it is

updated every single year by reanalysing the variables that make up the index.

The LSMs have been criticised by some marketers and media planners

who say that they are insufficient measures. However, SAARF argues that the

LSMs are indeed powerful segmentation tools when correctly used and

especially when used in combination with other such tools (demographics,

lifestyles, shopping behaviour etc). “It’s not the tool that is deficient, it’s the

way that it is used,” says Michelle Boehme, technical manager, SAARF. “LSMs

are not the only tool out there, and shouldn’t be used as such. Very often

they need to be used in combination with other tools to paint a better picture

of the market.”

Eighty20 ran a competition on their website, challenging users to guess

what their LSM is. And only a third of users actually got it right, proving to

Andrew Fulton, owner, Eighty20 that working knowledge of LSMs is low.

John Bowles, joint MD, Newspaper Advertising Bureau (NAB) says “all of us

have gotten quite carried away with defining target markets according to LSMs.

They have just become an easy target market definer, but in reality, most

marketers use them as if they were income segments.” He goes on to say that

the industry is no longer looking at target markets according to category.

Another pitfall is over-targeting, says SAARF. The problem here is that

marketers and media planners often over-target to the extent that they end up

with too few respondents in their sample and then they criticise the research.

Ultimately, the interpretation and logical use of the LSM tools is the

responsibility of the user. It is also their responsibility to ask for the necessary

training, which SAARF and other bodies regularly provide in the form of LSM

workshops and training courses. �

Is race still a viabledifferentiator?

>>p26

However, SAARF argues that the LSMs are indeed

powerful segmentation tools when correctly used

and especially when used in combination with

other such tools (demographics, lifestyles, shopping

behaviour etc).

Is race a viable differentiator, especially in a democracy

that is trying to heal the wounds inflicted by racism? Is

this a suitable differentiator today?

In the 1990s, SAARF was accused of racism in a case

that was taken before Parliament. The premise of the

accusation was that SAARF founded its research on the

distinction between the white, coloured and Indian (WCI)

and black populations. SAARF responded by offering to

remove race from its questionnaires and surveys. However,

the industry realised that race was still an important and

relevant differentiator, so SAARF was asked to keep it.

Neil Higgs, director: Innovation and Development, TNS

Research Surveys, says that race and wealth are the most

ubiquitous differentiators in research and marketing in SA.

“Because of the way people were discriminated against by

race in the past, so much of their thought and behaviour

patterns are dominated by the race group to which they

perceive they belong. So, to the horror of those who are

politically correct on issues to do with politics, poverty alle-

viation, service delivery and related social issues, not to

analyse by race is to miss the main context of the data,”

he says. At the same time, BBBEE continues to entrench

the social divide, he adds.

However, moving forward, this will evolve. “How we

process information and make decisions follows patterns

that are the same regardless of race, culture or other

groupings – it is to do with how our brain works, and

transcends race and all the rest,” says Higgs. He suggests

that worldview and culture may become more significant

differentiators.

“Race is still an important classification variable in

SA… but, like wealth, we should be seeing it as just one

way of looking at people’s different worldviews – that is

where the true richness for marketing, advertising and

research lies,” concludes Higgs. �

“Race is still an important classification

variable in SA… but, like wealth,

we should be seeing it as just one

way of looking at people’s different

worldviews – that is where the true

richness for marketing, advertising and

research lies.”

The SAARF Television Audience Measurement Survey (TAMS) data is gath-

ered electronically through devices called people meters that are installed

in more than 1 500 respondent homes across the country and that measure the

viewing behaviour of approximately 5 000 individuals. Each household is

equipped with a remote control device; each member of the household has

their own ‘button’ on this control device, and they push this button to log in and

log out whenever they start or stop viewing. Households are continuously moni-

tored to ensure full cooperation by all respondents, and if necessary they are

counselled, either by phone or in person. SAARF TAMS counsellors will coach

any panellists who are not logging in and out correctly and panellists who con-

tinue to do so after counselling are removed from the panel. In addition, coin-

cidental telephone interviews are conducted from time to time to ensure that

household compliance is at a high level

The TAMS people meters were initially dependent on landline telephones to

communicate with the central computer system in Johannesburg. In areas

where many houses did not have telephones, radio links (limited to a specific

radius) were used to connect such houses to the nearest house with a landline

telephone to transmit readings.

During the early years of TAMS, a large part of the black population did not

have electricity or landline telephones, so measurement in black areas was lim-

ited. By the early 2000s, Eskom had succeeded in supplying almost 80 percent

of the country with electricity, so there was the potential to report deep into rural

areas. In addition the advent of GSM cellular phone technology also provided

SAARF with a new way of communicating with households.

Today, transmission of reporting signals takes place via GSM cellphones,

landlines and Fastnet, making it possible to communicate with households

everywhere. “The improvements in communications technology have made the

rural panel possible,” says Paul Haupt, CEO, SAARF. In 2007,

SAARF began releasing results from rural households, in line

with its aims to provide a national

picture for television viewing. “This national picture has

proved great for stations like SABC 1 and e.tv,”

says Haupt.

The switch to overnight ratings in July 2006 has

also been a major plus for the TV industry in that it

provides stations with a much more up to date picture of their

audiences and therefore greater accountability.

Nobody is quite certain about the future of TV audiences and trends. There

will be great challenges for SAARF starting with the measurement of the new

pay television channels as well as the switch to digital terrestrial television (DTT),

which will go ahead later in the year. Haupt and the SAARF team expect that

the SABC, e.tv and even M-Net will apply for acquisition of channels. “And then

in 2010, we will be faced with the 2010 FIFA World Cup which will need

innovative ways of measuring out of home viewing and at the same time,

high-definition TV is also fast becoming a reality. All of this is going to put a

strain on our measurement capacity. As there will be more audience fragmentation,

so we will need to increase the TAMS sample size amongst other things,” says

Haupt. SAARF is investigating all their options, and is working towards a viable

solution which will in all probability consist of a hybrid solution and not just be

a question of expanding the existing TAMS panel.

Personal measurement devices are on SAARF’s radar, especially since 2010

soccer viewing will see people watching the matches in pubs and clubs. “The

future is a bit uncertain, but it’s exciting,” says Haupt.

In the meantime, they are expanding the current TAMS panels to include

children as young as four years of age (the remote device is easy enough for

them to use, says Haupt); channels with educational programming targeted at

children will benefit from the expanded panel. Currently, SAARF is conducting

trials with the new panellists, but it is hoped that over the next few weeks, the

new panel will be formalised.

DStv-iDStv announced the DStv-i audience measurement tool late 2007. This is a

return-path measurement system (ie the decoder is used to capture viewing

behaviour rather than a people meter).

According to Peter Mackenzie, managing director, Oracle Airtime Sales

(OATS) DStv recognised some years ago that with the proliferation of media,

channels and devices, and the explosion of digital platforms (a problem that is

not unique to SA), the TAMS panels would simply not be able to measure multi-

channel audiences adequately. Very small sample sizes were one major short-

coming of the panels; Mackenzie says that for 60 per cent of the DStv chan-

nels, the sample size was probably smaller than five people.

“There was no industry strategy for dealing with TV and measurement rat-

ings,” says Mackenzie. In 2006, DStv started looking at overseas models and

identified return-path panels as a viable option. Click stream data is recorded

and stored in the memory of the set top box, and retrieved daily, where after it

is downloaded to TNS in the UK for analysis and compilation. “It is a huge

technical challenge and an enormous investment. But it means that we will

have robust ratings for TV advertising,” says Mackenzie.

The TAMS panel currently measures a sample of between 1 500 and 1 600

households (about 350 of which have DStv). By comparison the DStv-i panel

will measure 4 000 households. “These panels are passive – panellists

don’t have to do anything to be measured, so it’s got to be more

accurate than measurement tools that require the panellists to log in and

out each time,” says Mackenzie. Plus, the system has safeguards built

into it, so power cuts and faulty Internet connections will not have a

negative impact. Industry expert, Brenda Wortley has been appointed

project director, while an independent audit process is being finalised (the

audits will be made available to SAARF).

Mackenzie goes on to say that major channels overseas are developing

similar models. “This means that we are in a leadership position and it

underscores the fact that this is where the industry is going.” Planning tools

will be updated to include the DStv-i data.

Haupt points out that although return-path panels will play a role in future,

the DStv-i panel only measures viewing at a household level and not at an

individual level as is done by the TAMS panel.

It also involves complicated and extensive modelling of data and will not

produce information that is comparable to that produced by the TAMS panel.

“What must be pointed out is that a television media owner will now put a

media owner controlled currency on the market instead of one that is jointly

controlled by marketers, advertising agencies and media owners,” says Haupt.

“The provision of industry controlled common currencies for the buying and

selling of media space and time was one of the main reasons for the

creation of SAARF and it served all media and the industry well over the years.

The fact that there could be different currencies controlled by individual

media owners that are not comparable may not be to the advantage of the TV

industry.” To address this, media owners with such panels will need to work

closely with SAARF in ensuring that comparable ratings for television channels

are evolved.

DStv-i will begin recruiting panellists during the course of the year with a view

to reporting data by early 2009. �


RESEARCH 10

TAMS

SAARF’s Radio Audience Measurement Survey (RAMS) is a survey, which meas-

ures radio audiences and time spent listening to radio stations. The figures

represent total audience sizes as well as stations’ reach into the adult population.

More specifically, the following information is gathered:� Radio stations listened to during a seven-day period� Times listened to each station (for each day of the week, for each quarter

hour of the day in a 24-hour period)� Radio stations listened to in the past four weeks� Favourite radio stations.

A set of respondents taken from the AMPS study are used for RAMS. These

respondents, as well as all the adult members of their household, complete a

SAARF RAMS Diary in which they record the above information. The RAMS fig-

ures have become the radio currency in SA, with results being published every

two months. However, marketers and media planners are urged to look at these

results in detail, especially because the stations spend a lot of time and money

communicating the nuances of their core audiences to the industry, says Norman

Gibson, Radmark marketing manager.

In 2004, flooding was introduced, which saw all adult members of each respon-

dent household keeping a Diary. This procedure more than doubled the sample.

“Flooding was a good decision and definitely a step in the right direction. Although

it resulted in a more robust sample, the big question is whether it’s enough. It still

seems insufficient for an adult population in excess of 30 million. I would be inter-

ested to know how we compare with markets like Europe and the US,” says

Gibson. He goes on to say that he believes electronic measurement would take

RAMS figures to the next level (the Diary methodology is outdated). “I know that

there have been talks about this, but the question is, when will it happen?”

Paul Haupt, CEO, SAARF, says that we compare very well, and it is not true

that radio diaries are outdated. “It is still one of the most widely used methodolo-

gies in the world and in developing countries, it not only works very well, it is also

extremely cost effective,” says Haupt.

SAARF has been monitoring the development of electronic measurement of

radio closely and like countries such as Australia, and have decided that it is too

early and too expensive to venture into electronic measurement at this stage.

“There is no doubt that it will come, but currently available systems are still in the

early stages of commercialisation and will cost much more than the tried and

tested methodologies now in use,” says Haupt.

The RAMS data no longer includes ‘place of listening’, so there is no indica-

tion of whether listeners listen at home or in their cars; likewise, ‘mode of listen-

ing’ is not included, so there is no indication of whether listening is taking place

via radio or the Internet. “With the explosion of the digital age, it is important that

research houses start looking at those kinds of modes of listening,” says Gibson.

The RAMS diaries do however measure all radio listening independently of the

mode of listening.

Gibson also believes that some media planners do not have time to sift

through the RAMS figures as frequently as every two months. “This may be ideal

for our stations from a programming perspective. But from a media planning

perspective, it is simply too frequent,” he says. �


RESEARCH 10

RAMS OHMS: measuringoutdoor media

Prior to the launch of SAARF’s electronic Out of Home Media Survey

(OHMS) data, outdoor had been measured by AMPS, and relied on

respondents’ recall. As Paul Haupt, CEO SAARF, says, this data was not suffi-

cient for the industry, since it did not allow for campaign planning. “It was not

on par with other media. We needed to find electronic devices that would

measure outdoor and put it on a par with other media,” says Haupt. The

Npod has been eight years in development, since Nielsen and SAARF joined

forces in 2000 to develop the measurement device and get the pilot study up

and running.

Today, the devices have been refined, and now track not only outdoor

media passed, but also the speed at which the respondent is travelling, and

the route people travel too. “During the development of the device we stip-

ulated that we needed a pocket-sized device, which would allow us to

measure pedestrian traffic and taxi commuters,” says Haupt. In Canada,

for example, outdoor measurement is a vehicle measurement, but here,

personal measurement will be necessary, given the number of pedestrian

and taxi commuters. “The actual fieldwork started in 2006 and we will

soon have a national picture of outdoor,” says Haupt. “This will make it

possible for media planners to consider outdoor on a par with other media

formats, and allow for campaign planning.”

About the study:The SAARF OHMS sample is drawn from adults with mains electricity (a

sample base of 10 536 000 adults) and it forms a subsample of AMPS.

Fourteen site clusters have been developed with the help of Out of

Home Media South Africa (OHMSA) members. In areas that were not

included in the sample, modelling was used to generate results.

Respondents’ data was only considered if it complied with certain stipu-

lations (it had to be accurate, two days’ worth of data per respondent). The

device measures ‘opportunity to see’, which is the defined visibility zone of

a particular site. This is impacted by the time of day, the size of the site, its

location and whether or not it is illuminated (and can be seen at night).

Pedestrian sites are also measured, but building wraps are not part of the

study as yet. “We are currently out on tender for the OHMS research for

2009 to 2013, and are awaiting a decision. If we get the go-ahead, then

we will look at including the wraps,” says Haupt.

In January 2008, SAARF released the first set of results, for Gauteng

and KZN. The results indicated that there has been growth year on year of

between 20 and 30 percent, over the past five years (indicating strong

growth of the medium). The results will be published for the Eastern and

Western Cape later this year, and users can get a national view of outdoor

by the end of 2008. �

The RAMS diaries do however measure all radio

listening independently of the mode of listening.

The NPod has been eight years in development, since

Nielsen and SAARF joined forces in 2000 to develop

the measurement device and get the pilot study up

and running.

The SAARF Life Stages segmentation tool was developed in 2000, and

grouped the adult population into one of seven segments. This segmentation

acknowledges that each of these groupings has different needs and behaviours.

These can also be run relative to interests and activities, to paint a more holistic

picture of the market.

The Life Stages study was followed by the Media Groups Measure (MGM),

which was initially developed to assist people by helping them to identify the

best media mix to reach large groups of people, eg such as the government

that would for instance like to reach as many people as possible before a

national election. “It is different from LSMs, but enables you to reach the whole

population by using a mix of different media types,” says Paul Haupt, CEO,

SAARF. Essentially, MGMs identify the best combinations of media to reach spe-

cific large pockets of the population (it is therefore not really intended for tar-

geting smaller, niche groups). It comprises eight groups, the higher of which

will focus on multiple media (these groups reach the upper LSMS, which have

access to media such as cinema, TV and the Internet). “This sort of segmenta-

tion has proven very useful in mass markets. The MGM takes the impact of the

different media into account,” says Haupt.

Description of SAARF MGMsMGM 1: extensive exposure to radio (especially public service broadcasting),

and some exposure to TV. Outdoor advertising at stores and on billboards and,

to a lesser extent, on taxis and minibuses.

MGM2: high exposure to radio, but at a lower level compared with MGM 1,

since other media come into play. TV has increased coverage. Outdoor follows

a similar pattern.

MGM 3: limited Average Issue Readership (AIR) of the AMPS newspapers

and magazines. Radio is at a high level, and TV has a greater reach.

All forms of outdoor are apparent, though there is limited exposure to

bus shelters and trains.

MGM 4: radio and TV have similar high coverage. All forms of outdoor are

represented, though there is still limited exposure to bus shelters and trains.

Improvement in the readership of AMPS newspapers and magazines.

MGM 5: coverage for both TV and radio show a further increase. Readership

shows a considerable increase (weekly and monthly magazines as well as daily

and weekly newspapers). Outdoor extends its coverage.

MGM 6: TV and radio have very high reach. Enhanced reading of weekly and

monthly magazines (there is a growing interest in print). The increasing levels of

urbanisation see the inclusion of moving media (buses, trailers and trucks).

MGM 7: there is evidence of some cinema and Internet consumption over the

past seven days. Print readership rises further. Reach for radio and TV remain

high. Continued growth in all outdoor types.

MGM 8: all media show an increase. TV is at its highest, and radio at its

second highest (after MGM 1). More exposure to outdoor as a result of greater

mobility. Higher income and discretionary spending sees access to the full

range of media options. Cinema and Internet are at a peak. �

Life stages and Media Groups Measure (MGM):


RESEARCH 10

Researching in TownshipsBy Wendy Cochrane, director, Consumer Insight Agency (c.i.a)

In our dynamic and shifting landscape, this manically morphing place that is

SA, townships have become a source of fascination to marketers. In the fallout

of the ‘Black-Diamond’ frenzy – they have become a key focus for almost

every brief.

A worrying aspect of many of these briefs is the reduction of the multi-

dimensional people that inhabit these colourful spaces into one homogeneous

‘Emerging’ or ‘Township’ catch-all. To start, the needs, drivers and dreams

differ as much in a cross-section of Soweto as they do in the entire country.

What’s more concerning about this revealing choice of descriptors is

that our industry appears to have collectively concluded that the entire

‘township’ (read ‘black’) market is either ‘emerged’, ‘emerging’ or at

least pretending to be. Strategic responses to that thinking are to inundate

the ‘target’ with aspirational messages and high-gloss goods and

premium-isation strategies to ‘trade them up’ – ready or not. Few have

awakened to the greater opportunities and more socially sensitive ideas that lie in

simply innovating and even researching what people’s real needs are – at all lev-

els of the ‘township’ spectrum – catering to the basic needs of mushrooming

‘have-nots’ survival.

Last year we began an epic study that sought to address that. ‘The NOW

project’ reveals deep insight into the diverse jigsaw of people that make up

SA, and importantly explores the connections between them.

We were asked to give hot tips for studying townships, and I guess in

conclusion the most important would be to enter with sensitivity – with your eyes

and ears open to the realities of the many different people who live there – to

leave pre-conceived ideas from the last PowerPoint presentation on your desk,

and to really listen to what people need. �

Research in Africa


RESEARCH 10

Africa holds huge potential for local brands – consider, for example, that

Nigeria has the highest number of Internet users, at around eight million

(www.internetworldstats.com). Or that urbanisation and local economies are

booming throughout the continent. As a result, the need for research in Africa

is growing.

“We are seeing less and less research being carried out by big multinationals

in SA; there is a definite trend towards research in Africa,” says Bridget Fitschen,

marketing director: Africa, Research International. She adds that mobile telecom-

munication companies as well as financial institutions are the biggest drivers of

this research as well as the large multinational brands (Procter & Gamble,

Unilever and Coca-Cola). Countries in East Africa prove easier to research.

Research International was involved in the development of the Pan African

LSMs, which were launched in mid-2004. According to Joe Boniaszczuk,

marketing science director, Research International, these LSMs make it possible

to compare 15 African countries in Africa, and get a detailed picture of living

standards in sub Saharan Africa. “Where AMPS-like data was available for

these countries, we used that. For those countries that did not have this data,

we conducted customised ad-hoc surveys. We now have the same data as is

available in the South African LSMs, which measures between 50 and 80

variables. We also use the same methods and statistics to score them,” he says.

Since mid-2006, the Pan African LSMs have been in the public domain, and

are therefore easily accessed by marketers. “They were developed by a consortium

of companies, many of which were banking groups, and insurers, who wanted

to see a finer discrimination of the richer end of the African markets,” says

Boniaszczuk. The markets are segmented into 18 different groups, the first

seven of which are fairly large. “The 15 countries we include adequately

represent Sub-Saharan Africa, and allow the marketer to compare like with like

across political borders,” adds Boniaszczuk.

Challenges for research in Africa:The most obvious challenge is that each African country is different to its

neighbours, and the environment and markets are unique. “The quality of

fieldwork is a major issue, as it is not always up to scratch,” says Fitschen. “In

most parts of Africa, the only way to do research is with pen and paper –

technology in Africa is generally not very advanced.” Other challenges include

the lack of adequate infrastructures; language, cultural and geographic barriers;

the high cost of research due to the long distances that must be travelled, or

the translators that researchers may need to work with. “There is a serious skill

shortage among researchers in Africa,” adds Fitschen.

“We have found that research in East Africa is straightforward and possibly

easier to carry out than elsewhere,” says Fitschen, pointing to countries such as

Kenya, Zimbabwe, Malawi and Zambia.

Nielsen carries out research in the African marketsNielsen highlights some important considerations when doing research in Africa:� Retail channels and trade structures are different – adopt new methodologies

to capture the unique trading environment rather than a one-size-

fits-all approach.� Consumer segmentations are different (an income bracket in one country

does not equate to similar buying power in another).� Understand the geographic and natural barriers to accessibility,

climatic conditions hindering data collection during certain seasons and

topography.� Understand language differences for wording sensitivity and structure.� Understand cultural and religious barriers for potential restrictions (ie

restrictions on women and children in certain areas). These could impact

on the questions and scale interpretation, and gratuitous respondents.� Understand political barriers as well as social structures.� Communication technologies differ and can impact on an agency’s ability

to make spontaneous changes to questionnaires and methodologies.� Distances can be vast, and this will impact on turnaround time, so plan

ahead.� Clarify expectations upfront.� A single research supplier is advantageous, ensures standardisation and

comparability of results� Research agencies with offices, expertise and experience in the specific

country are your best bet. �

Coca-Cola’s Africa technical centreThe Africa Technical Centre was launched in Midrand in March,

with a focus on support for the brand in Africa, including research.

“The Midrand laboratory is one of five locations selected by the

Coca-Cola Company as part of its global framework for analytical

support to its operations worldwide,” says Racquel White, group

communications director, Coca-Cola Africa. “Africa is a rapidly

developing market with a wide range of needs and preferences.

Matching our diverse portfolio with these needs and responding

swiftly to them is both a challenge and an opportunity.”

Adults and youths are like chalk and cheese when it comes to research.

Not only are their mindsets vastly different, but they respond to research

methodologies in very different ways. “This population is very diverse in terms of

age, cognitive capabilities, culture, socio-economic status of family, etc,” says

Jason Levin, MD, HDI Youth Marketeers. However, there is a definite trend

towards researching this market, because companies are realising that the

youth is a valuable long-term market. “They are current and future consumers,

and heavy influencers of household purchase decisions,” says Quentin Weldon,

youth research consultant, Youth Dynamix.

There are a few things researchers should keep in mind when working with kids:� Kids respond to emotional triggers and multi-sensory experiences. Asking

them to chat about the functional aspects of your brand would be redundant. � Kids are tech-savvy, and have no hesitation in researching brands, so cannot

be thought of as naïve. “They are not mini adults,” says Weldon. � Kids have a short attention span, especially since they have been exposed to

new media and intense multi-tasking. “Research surveys and focus groups

should be brief. Research techniques and the level of question difficulty

should be adapted,” says Hlengiwe Hlela, HDI Youth Marketeers researcher. � Age appropriate techniques and materials are essential. Take into account

the developmental level of the respondents and segment them according to

this. ”The easiest way to achieve this is to group them according to school

grade,” says Weldon. � Do not mix genders in group research. Particularly among younger groups,

researchers have found that boys dominate the conversations or try to

impress the girls with their antics. It’s ok to mix race when the children are

from the same school. Says Weldon, a black child whose home environment

is LSM 6, but whose school environment is mixed-raced LSM 8, will relate to

the LSM 8 experience in the same way as his white peers. He will not relate

to a black child who attends a township school. � Kids do not have a rich vocabulary, so may need to be helped along without

having words put into their mouths. Visual material is helpful.� Kids can be shy and easily intimidated; they may hide behind peers in group

scenarios or follow the crowd. “Face-to-face or pair research is a viable

means to avoid this,” says Weldon. � It’s essential to have a moderator with a strong rapport: “a good relationship

is key with young people,” says the HDI Youth Marketeers team. Weldon has

found that younger mediators seem to have an easier time connecting with

kids. Likewise, female mediators often get the best response.

� Do not ask questions as if they were at school.� Give them a thorough explanation of what is about to take place.� Use humour intermittently.

Integrating youth research“As a rule of thumb, if there is a youth component to your target market, you

will have to be prepared to have a separate communication strategy aimed at

it, and possibly different product intrinsics,” says Weldon. This means a separate

youth research budget.

HDI Youth Marketeers encourages organisations to establish a trend-watch-

ing group, tasked with facilitating and conducting ongoing research. Consulting

and creating research societies is another option, especially useful in research-

ing youths’ ‘headspace’.

“This can be achieved by monitoring, observing and participating in relevant

youth-orientated activities both in the street and online (such as blogging and

social-networking) along with engaging with papers, websites, magazines,

blogs, books, news, newsletters, TV, movies, radio, seminars, fairs, trade shows,

customers, clients, colleagues, friends and even family members, to list but a

few,” says Levin.

Hlela adds that a high level of inquisitiveness goes a long way. “Research

with young South Africans needs to be personalised and localised so that

campaigns are relevant to them here.

“A youth-orientated consumable product should be evaluated sensorially by

the youth within the target age group, as the taste that appeals to a child may

be rejected by an adult,” says Weldon.

Youth researchThere is a great deal of youth research available – which one to use?� The Sunday Times Generation Next study, compiled by HDI Youth

Marketeers, targets 8-22 year olds; it will list their favourite brands and

will also discuss the impact of global trends; the role of the youth as

influencers on brands and future markets; the level of youth influence versus

parental control, and their brand preferences. This year, the Generation Next

event will be held on 21 May, with the Generation Next supplement due for

publication in the Sunday Times on 25 May. For more information, visit

www.hdiyouth.co.za.� HDI Youth Marketeers hosts the annual Khuza Awards, which are youth

communications awards. The judging panel consists of youth between 8 and

23 years of age, and they vote for their favourite advertising and communica-

tion messages. Visit www.khuza-awards.co.za for more information.� Youth Dynamix offers its syndicated Trax studies, which include Tyk Trax (0-6

years), Brat Trax (7-15 years) and Youth Trax (16-24 years). These studies

cover everything from family interactions and media/brand consumption

behaviour, to financial behaviour, role models and attitudes as well as brand

literacy and lifestyle, technology and communications, etc. � Youth Dynamix offers the Youthscapes report, released three times a year,

which covers current and future youth marketing trends and fads. It discusses

licences (toys and merchandise), FMCG and consumer trends, fashion,

technology, new media, music and toys.� The UCT Unilever Trend Youth study, published in 2002, discusses

local trends in the 7-24 year old youth market. It makes a comparison

between local and global trends, and also suggests ways for marketers to reach

this market. �


RESEARCH 10

Reaching them via mobileResearch conducted via cellphone could be the next step forward for

researchers who are trying to reach this market. The cellphone is

becoming a personal companion that youths cannot live without.

“Technology is very important in their lives. So if you can engage

them where they are, and show them that you care enough to go

where they are, you will get results,” says Weldon. Brands should

increasingly be looking at ways to send their message to the youth via

this medium. Likewise, researchers should be using this medium to

get through to kids.

However, cellphone and online surveys are not ideal for open-ended

questions.

Researching the youth markets:

There’s no doubt about the fact that research will remain a solid institution,

and a bastion in the realm of marketing insights and campaign planning.

Media fragmentation, globalisation and the rise of consumer control has

placed the consumer outside the reach of mass marketing research. However,

ad rates and the demand for unique advertising opportunities are rising.

Primarily, it seems that interview techniques and research methods will need

to be adapted. Yet Michelle Boehme, technical manager, SAARF, believes that

while there will be some changes to the measurement instruments and research

methodologies, it remains important to keep research stable and comparable

across the years.

Ipsos Markinor’s director of Marketing and Client Relations, Heidi Brauer, agrees:

“There are two layers to this. You need solid science to underpin any research, and

then you can adapt the method or the tools to make it more relevant.”

Research 10 takes a look at how research will evolve to cope with modern

challenges.

No more phonesLandline penetration is falling (from a low level of penetration). As far as

researchers are concerned, telephonic interviews are dead. Marketers will need

to develop interviewing techniques and methods that don’t rely on the telephone.

Hard to reachEspecially among the upper crust, researchers will struggle to get answers.

“The upper-income and affluent consumer is difficult to get hold of, yet they

have massive economic means and are crucial to understand. They lack the

time and the patience to be lured into a 55-minute interview, so you have to

think quite differently with them, but you also have to make sure that your

approach is consistent with the interviewing techniques you employ elsewhere,”

says John Bowles, joint MD, NAB.

Another factor to consider is that people are too busy to take part in research.

Also, crime has impacted on the extent to which people will open up to researchers,

says Bowles; research will need to take this into account. Perhaps research

methodologies that require respondents to disclose personal details, such as

income or home address, need to have security measures worked into them.

Focus on personal networks and relationshipsWith consumers out of reach through mass media, marketers and researchers

will need to find interesting ways of reaching their target consumers. Targeting

the individual’s network is one way of getting to them without having the

power of mass reach. Neil Higgs, director: Innovation and Development,

TNS Research Surveys, is convinced that this is where marketers and

researchers will be focusing their attention. He points to TNS Research

Surveys’ Igniters study, which identified influencers with large networks and a

positive mindset.

“If I was a marketer, I would rather have the opinion of the Igniters. Locally,

marketers are not using this enough,” he says. To bring this dimension into

research would not require a massive change, simply a paradigm shift. “It’s a

worldview, that sees human beings as holistic and also in the context of others,

with baggage that determines how they drive their lives,” says Higgs.

Going onlineThis is one trend that has been picked up as a potential giant, and researchers

expect that it will be more widely used, especially when cellphones enable an

increasing number of South Africans to access the Internet.

There are ways to get around the challenges of Internet access. Nielsen, for

example, is providing fieldworkers with 3G cards, which enable them to take

online research to rural areas that might never have the chance to participate

in the research.

Marketers are urged to keep in mind that while the Internet is sexy, it will not

work in every market. “You must marry what’s possible with what’s right,” says

Mari Harris, director, Ipsos Markinor.

Going mobileMobile research, such as SMSes and bulletin boards is also set to grow, espe-

cially because local cellphone penetration is high.

The changing role of the researcherLook out for a move away from simple data, towards insights and information,

says Anina Maree, client services director, African Response. This in turn, will

see researchers becoming information suppliers and knowledge consultants.

One of the trends that has been identified is away from long-term brand

building, and therefore, long-term research projects. “I expect we’ll see quicker,

funkier research projects,” says Tiaan Ras, manager: Marketing and Media

Intelligence, Ads24.

Linked to this, expect quality control and research accreditation to get more

emphasis (double-screen CAPIs are one to watch – they promise to take quality

control of the CAPI interviewer to the next level). “The industry needs to

embrace a culture of using research, specifically qualitative research,

conducted by real professionals so that there is an accepted standard and

rules,” says Bowles.

Look out for the increased globalisation of research agencies and brands.

This will lead to global standardisations in research practice, particularly in

terms of qualitative research methods.


RESEARCH 10

The future of research

>p36

“Marketers and media planners want more information,

and they want another dimension on the markets.

Demographics are not a good enough differentiator, so

attitudinal research is another viable tool.”

“The industry needs to embrace a culture of using research,

specifically qualitative research, conducted by real

professionals so that there is an accepted standard and rules.”

New segmentationsEighty20 has raised the issue of segmentation in

South Africa, and raises the point that certain seg-

mentations may be outdated.

Other segmentation tools that may prove

worthwhile:� Household or dwelling (for which the definition

has changed)� Rural versus urban (rural areas are being

erroneously disregarded, according to the

belief that they do not have roads and infra-

structures) � Flow of money as a result of migration and

urbanisation� Home language� Age and life stage (single mums versus work-

ing mums)� Levels of literacy and education� Psychographics� Income and its sources� Expenditure.

Measuring TV ad viewingThe number of homes in SA with a PVR remains

low, but adoption figures are promising. This raises

questions about TV ad viability – are audiences

going to watch TV ads?

Nielsen Media Research in the USA set about

measuring TV ad audiences in an experiment that

set the US TV industry abuzz. Cable networks

argued that certain elements of their advertising

(for example, crawlers – the channel logo that

slides in and out of the screen) make their ads diffi-

cult to measure, so the measurement would place

them at a disadvantage. Another argument against

the measurement was that live TV cannot be meas-

ured alone – PVR viewers might actually watch ads.

But ad agencies and TV networks had called

for such data and metrics to be made available.

Big research trends to look out for:� Employee workplace satisfaction� Green trends and the green revolution� Africa� Shopper research and triggers for purchasing

decisions� Attitudes: SAARF’s team of research

specialists believes that attitudinal indicators

will be included to a greater extent. They are

set to develop this in their segmentations.

“Marketers and media planners want more

information, and they want another dimen-

sion on the markets. Demographics are not

a good enough differentiator, so attitudinal

research is another viable tool,” says Paul

Haupt, CEO, SAARF.

Quantitative methods will evolve: for example,

shopper observation. �


RESEARCH 10

Mobile research methodologies:

The future of research?

>>p35

Mobile penetration worldwide is growing tremendously, and so is the use of mobile

media. As marketers increasingly turn to mobile solutions to drive sales and build

brands and brand loyalty, it is logical that the cellphone is viewed as a potential research

tool. After all, it’s always on and carried close to the individual. It is a highly personal

device, with capabilities, for example, WAP and Bluetooth that make it a powerful medium.

But more importantly, these devices could one day replace traditional research in the hunt

for consumer data. The type of data that could be collected from cellphones and cellphone

networks is far richer than simple demographics, and can include usage patterns (frequency

with which users call certain numbers or surf the Net via their phones, which websites they

visit and when, etc).

But is SMS or WAP research the right way to go? We look at the pros and cons of

cellphone-enabled research

The pros of mobile research:� A cellphone is always on, so you’ll get a quick response� The cellphone offers mobility, allowing the researcher to reach the participant anytime,

anywhere (within the bounds of cellphone reception, of course)� Wide reach across demographics (everyone from the LSM 2 mine worker to the LSM

10 businessman has a cellphone)� You can include everyone who has a cellphone� Immediacy – the consumer can be reached at the right moment for feedback or an

opinion, and results can be measured almost immediately� Additional information, such as GPS location and cellphone use patterns, can be

collected to create a clearer picture of the consumer� Great for reaching otherwise hard to reach customers� SMS can boost response rates to mobile questionnaires or surveys, especially among

the 18-25 year olds.

For these reasons, mobile is great for customer feedback or customer satisfaction

surveys, opinion polls, ad recall surveys and diary applications.

The cons of mobile research:� There’s no guarantee that consumers will reply to survey questions or will report all the

information they need to report � It is easy for the user to tune you out� If the consumer has not opted in, it’s spam� If it’s not timed right, it won’t get the (right) response� There are no standard procedures in place for conducting mobile surveys, and no

recommended methodologies� If the consumer has to pay to take part, they might choose not to take part at all� SAARF researchers contend that random sampling will not always be possible; mobile

databases do not indicate physical address, for example, and this is a problem.

Will cellphones become smarter?Research was carried out by MIT’s Media Lab over the 2004-2005 academic year to

try to evolve mobile devices that are not only aware of one another, but are able to see

and hear what the user sees and hears. The MIT Reality Mining Project is putting various

new technological applications to the test in this experiment, which will eventually enable

the mobile device to make inferences regarding who the user likes and knows, and what

they may do next. Basically, this is a system of sensors which will learn patterns from the

user’s behaviour, and while these sensors are somewhat advanced, it won’t be too long

before tmobile devices will be equipped with them. (Visit http://reality.media.mit.edu for

more information)

What does this mean for researchers? Imagine being able to predict the movements and

behaviours of your target market as well as having access to their communication patterns

and preferences. �

There is still wide debate about Internet/broadband penetration in SA.

Website Internetworldstats.com reports that in December 2007 South

African Internet users numbered 5.1 million.

The Internet is ideal for reaching both mass markets as well as small niche groups

of people who have formed a community around a particular interest or issue.

Why do Internet research?According to the experts, it’s cost-effective (no interviewers, mediators or field-

workers to pay) and saves time. Research results can be delivered quickly and

easily, in a variety of formats. There are no geographical limitations and difficult

to recruit targets are more easily tracked. The dynamic between respondents is

objective and everyone has an equal opportunity to participate. It is dynamic,

so errors can be addressed on the fly. Sensitive issues can be dealt with in an

environment that facilitates confidentiality and privacy, which means you’re

more likely to get candid answers and insights. And the multimedia capabilities

of the Internet make it viable for test material to be shared easily. Plus, you can

handle a large number of respondents with ease. Incentives (such as cash

vouchers or online shopping vouchers) are also easily integrated to motivate

people to take part

However, the global scale of the Internet means that there are unique chal-

lenges for research (someone from the USA might be volunteering to answer

questions about South African products and services, for example).

The Internet also allows for a variety of approaches to be used (be it surveys,

panels, web forms, chat discussion groups, etc) and tailored to meet research

needs. However, experts stress that the technology needs to be understood to

be used effectively; likewise, simply creating a web form with no understanding

of research is risky. The methodology should suit the research goals, the context

and the desired outcomes.

Issues with online research:� Sampling can be a problem, considering that respondents need to have

access to the web as well as sufficient literacy and comfort with the research

tools in question. Measures must be in place to ensure that the respondent is,

in fact, a valid research subject, that there is not a bias as a result of faulty

recruitment, and that there are not multiple responses from the same respon-

dent, for example.� There is no control over the respondents’ environment at the time of the

research.� Responses need to be managed and monitored. Non-responses or incom-

plete responses are a problem, and there must be mechanisms in place to

counter this, for example, e-mail reminders, pop-ups that guide the user

through the questionnaire, etc. For many qualitative researchers, the

absence of body language and non-verbal cues are problems.� It requires adequate computer skills.� Anything that needs to be touched, tasted or smelled, for example, must be

shared before the study.� For Internet research to be ethical, prior informed consent must be

obtained, and the right indemnities secured. Incentives must be ethical too.

Privacy and confidentiality must be guaranteed and made clear, especially

where respondents disclose personal details and opinions. � The design of the research is also important. Drop-down menus and open-

ended questions should be avoided; long questionnaires or surveys should

be broken into sections to avoid the user having to scroll, and progress

bars should be used. Avoid pop-up surveys.� Technical barriers include a lack of knowledge of computers, the Internet,

statistical software or databases, for example. Moderation can be difficult

(some respondents may post responses in the middle of the night).

Likewise, it may be difficult to follow a discussion if it is not tracked

chronologically.� Mobile devices, such as cellphones, are increasingly becoming Internet

enabled. This will have implications for Internet research.

Evaluating online qualitative methodologiesAndrea Chemaly and Corette Haf presented a paper at the 2007 SAMRA

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

online qualitative research. In this paper, they evaluated online qualitative

methodologies, and found that the most commonly used tools include: � real-time focus groups (synchronous live chat)� bulletin board focus groups or discussion boards (asynchronous, evolved

from message boards) � multimedia online focus group (using webcams and phones or VoIP); and� a ‘bricolage’ of them all.

The researchers argue that bulletin boards have the most potential locally,

given the low incidence of Internet access in SA. This platform allows the user to

log in and take part in the discussion at any time they wish, for as long as they

wish. The discussion usually lasts for three or more days and involves between

15 and 20 respondents. These respondents will visit the board at least once a

day for the duration of the discussion.

The anonymity of discussions promotes more personal, honest responses as

well as more thoughtful and in-depth answers than might be generated in

interviews. The methodology is cost-effective and also time-effective. Instant

transcripts are an added benefit and time saver.

The researchers found that online research works best for markets that are

familiar with and comfortable using the Internet, and regard it as a part of

regular communications.

The researchers say that there is software available to ensure the security and

integrity of an online session. This software also makes it easier to review and

observe the responses (it highlights new responses, for example, or prevents

participants from seeing responses before they have been posted). Passwords

facilitate access and also protect the virtual discussion room. The moderator is

therefore able to interact and manage the discussion. �


RESEARCH 10

Internet Research

The anonymity of discussions promotes more

personal, honest responses as well as more thoughtful

and in-depth answers than might be generated in

interviews. The methodology is cost-effective and also

time-effective. Instant transcripts are an added benefit

and time saver.

Truth One: Shopper’s only buy to meet the needs of consumers.

Truth Two: If only 6 per cent of shoppers even write shopping lists and 70 per

cent of purchasing decisions are made at point of purchase, then the consumer

is where the need is, and the shopper is where the money is.

The shopper decides whether to buy your brand or one equally acceptable in

their repertoire.

The shopper decides whether to buy the pack size that drives your margin mix

or the one that has been commoditised by constant deep cut-price promotions.

For all of us in SA, if we are not driving brand and pack mix we are not max-

imising the value of our brands. Globally, this thinking is driving brands and

retailers to turn their focus to the shopper and the shopping environment, and

adjusting their marketing and sales spend to drive better return on investment.

Most marketers know that if they don’t fight the modern battle for market

share in-store and on-shelf, competitors will steal share fast.

SA, while a little behind in taking action on this trend, is catching up fast.

The South African market is still very much in a transition phase. Both brand

owners and retailers are trying hard to adapt to major changes in shopper

location, behaviour, attitudes and spending.

A burgeoning middle class is changing the consumer landscape and buying

behaviour. Shopper locations are changing too as many consumers migrate

from the townships and, at the same time, retailers expand into the township

environment.

If marketers could understand specific shopper missions, shopper repertoires

and behaviour within the larger context of consumer insight, they would have a

far more powerful and strategic set of data from which to plan.

Traditionally, though, marketing and sales/channel teams approach consumers

and shoppers separately, mostly commissioning separate sets of research to under-

stand them. One set is commissioned to understand and segment consumers in

the wider market, typically to drive marketing strategy, while another is commis-

sioned to understand shopper behaviour, typically to drive sales activation.

However, both don’t necessarily integrate, which leaves businesses with

marketing and sales activities that are potentially out of sync, and certainly not

working in tandem. This means return on investment is compromised and for

major brands this is a significant brake on performance and profitability.

The issue becomes even more complicated when you consider that the

‘shopper’ is often different to the ‘consumer’ and people behave differently

when ‘shopping’ as opposed to ‘consuming’. Classic examples are mother and

child categories, people buying for social occasions, gift buying, pet care and

alcoholic drinks. So, the trick is to understand the shopper’s needs, behaviours

and motivators, and how these link to the consumer’s needs, behaviours and

motivators.

The importance of integrated research and activation planning becomes

apparent when one considers the role of the brand in the shopping mission.

Research shows that consumers are not typically brand focused in their shopper

headspace. Rather, they shop according to location based on convenience,

and then occasion and then category, often deciding in-store which brand or

product to buy.

Integrated consumer and shopper insight allowsbusinesses to:� Segment and understand both consumers and shoppers in one study.� Identify where potential margin and profit pools that can accelerate brand

and market growth are.� Create one, integrated marketing and sales activation and investment

agenda. � Make decisions about marketing and sales spend (eg the mix of above or

below the line to best drive brand performance to deliver the objectives you

have set in the business) and how you want to track ROI.� Form more mutually beneficial relationships with retailers through a deeper

understanding of their shoppers’ behaviours.

On this last point, knowing how each retailer’s shoppers buy a specific

product or category means brand owners can invest in more effective trade

partnerships across a consumer’s repertoire of shopping occasions. It also

means brand owners can identify where to raise or cut investment across

retailers to drive a better ROI for their brands.

What this means is that the in-store arena is practically uncharted territory in

terms of making sure consumer marketing plans are going to be effectively

activated for the shopper. For those brand owners who get active in this space,

share growth and ROI are the big prizes versus competitors who cannot or will

not evolve to win the new consumer: shopper reality. �

Shoppers – where’s the money?


RESEARCH 10

By Keith Stevens and Stephen Mawbyt, who head Added Value SA and Glendinning Management Consultants Africa respectively. They have just introduced an

internationally proven consumer:shopper joint research and activation offer.

Make decisions about marketing and sales spend (eg

the mix of above or below the line to best drive brand

performance to deliver the objectives you have set in the

business) and how you want to track ROI.


Airports continue to attract big brands,especially those that are looking for exposure to

a market that has the cash to travel. This

includes our growing middle class, thanks to

low-cost airlines. Tourism into and within SA is

enjoying a steady rise: SA Tourism reports that

in the third quarter of 2007, total foreign

arrivals in SA numbered more than two million,

having grown nine per cent on the correspon-

ding previous period. The number of Asian and

Australian visitors is growing the most, followed

by those from the Americas, Africa and the

Middle East respectively.

And with the 2010 FIFA World Cup just

around the corner, it looks like these figures are

set to grow. Certainly, advertising in airports is

seeing growth. According to Julie Mansour,

general manager, Alliance Media SA, there has

been a definite growth in overseas clients and

brands signing up or extending their contracts.

“Clients know that this is the right time to

advertise in airports,” she says.

Ahead of the 2010 FIFA World Cup, seven

out of ACSA’s nine airports countrywide are

undergoing full-scale renovations (usually, only

one airport undergoes this sort of makeover at a

time). This is having a major impact on the

marketing and advertising in the airports, says

Suzanne Roberts, joint MD, Airport Media.

Logistical changesWith the renovations underway, the buildings,

facilities, environments and services are chang-

ing on a daily basis. “In the international arrivals

hall, there is very little in terms of adspend. The

light box or banner that was there just yesterday

is gone today, and nobody can say for sure

when it will be back (or if it will be back in that

same spot, for that matter). The challenge is to

find locations that are suitable for relocating

existing and new clients from now until 2010,”

says Roberts. It looks like, across the board,

media owners are looking for temporary

opportunities, or alternative sites. The large for-

mat media positions at the airports that are sold

to brands providing blanket coverage across an

environment have been interfered with very little

by the ongoing construction, says Ryan Cohen,

sales director, Wideopen Platform. Construction

site type platforms (scaffolding wraps, for

example) present a great opportunity for brands

that require exposure and provide landlord’s

(ACSA) with an additional source of revenue

during a time where media income has gone

down due to continued building resulting in the

interruption of a number of media site locations.

But Ryan Roux, DMM development manager,

Wideopen Platform, has found that clients are

somewhat nervous about committing to these

projects, even on a short- to medium-term

basis. “The positions are large. And while the

media costs are not prohibitive, given the size of

the ownership that the client gets in return, the

production costs are steep. Plus, I think clients

are nervous about what is happening in this

environment,” he says. Cohen goes on to say

that while the construction site wrapping is also

AIRPORT MEDIA

Airport marketing:huge impact amidst the challenges

At the end of the day, if a brand advertises in a visibleand relevant space at the airport, they will get the desiredexposure. Ryan Cohen, Wideopen Platform

”“

ACSA airport stats and figures www.acsa.co.zaTotal passenger traffic February 2008

a cash stream for the contractors and developers

they are under tremendous pressure to get their

job done as a top priority, which is first and

foremost completion of their building project on

time. Often penalties for late delivery are far

greater than their share of the revenue earned

for the branding of the construction site.

As Roberts points out, the problem is that the

renovations are not exclusive to one part of the

airport. Take OR Tambo International Airport, for

example; the changes happening there are not

just within the airport building – the entire road

system in and around the airport has to be

adapted to make provision for the Gautrain.

Roux says that in this case, with more than

17 different project teams working on various

projects around this airport, it is a huge

challenge trying to stay on top of everything.

“The logistics and the large number of contractors

make it very difficult to work there,” he says. He

adds that Cape Town International Airport has

proved much easier to deal with from this

perspective. ACSA does provide media owners

and concessionaires with a heads up on

changes to infrastructures, and will give them

first option of suitable alternatives. Cohen

says that, as a result, his campaigns have

not been impacted detrimentally by the

changes in and around the airport

environments. A recent FNB 2010

countdown clock installation

across the country’s airports ran

smoothly. “In general, the level

of efficiency was fine,

whether we were dealing

with an airport in

Upington or OR

Tambo,” he says. The

healthy variety of

brands that are still signing up to advertise

in the airports, albeit cautiously, are indication

enough for Cohen that this is still a thriving

environment.

The acquisition model has alsochanged

Shamendran Naidu, site acquisition and devel-

opment manager, Wideopen Platform, says,

logistical challenges aside, the site acquisi-

tion model has changed dramatically

too. ACSA have now invested in the

capital outlay for media positions

and are leasing these sites out to

concessionaires. Because these

are long term contract, says

Naidu, many concessionaires

are cautious to sign up,

given the uncertainty of

the airport marketing

environment, while it still one that has the

largest viewer ship and the greatest concentra-

tion of higher LSM by far. “It’s also a case of

‘what’s going to happen after 2010’. There is

some scepticism. Part of this is the result of

existing owners trying to secure alternatives,

while new media owners are trying to secure

sites. “ACSA is trying to accommodate existing

owners first, but this is holding back the new

owners,” says Mansour.

And then also the fact that globally – not

only in South Africa – we are experiencing a

economic downturn and the first budget that is

cut when times are tough is advertising spend,”

he says. On the flipside, the new model has

created opportunity for new players (including

small to medium BEE companies). Naidu also

mentioned that while these opportunities

seemed lucrative and bringing promise of great

financial rewards, there is definitely the risk of

AIRPORT MEDIA

Total airport passenger traffic: financial year-on-year trends www.acsa.co.za

AIRPORT MEDIA


constantly delivering on media positions

managed by concessionaires.

The cost demands being made by the airports

is one issue that has been highlighted by media

agencies. Generally, says Naidu, the airports get

50 per cent of the ad revenue generated by a

site. But he says that for some of the new sites

under tender, the airports are asking for R300

000, which means that the agencies have to try

to sell the site for double that fee if they hope

to make any profits. (ACSA was not available for

comment at the time of writing).

But do marketers and media buyers know

what it takes to stay on top of the changes?

The airport environment demands that market-

ing does not impede, for example, passengers

stampeding through the arrivals or departures

lounges should not have to try to get around a

pop-up banner or a promoter handing out

samples. “The question is, do marketers know

exactly what the dynamic is during rush hour?”

says Roberts. She points to Lanseria Airport, and

the growth in domestic travel, which has been

boosted 15 per cent, thanks to low-cost airline

travel. Small businessmen are taking advantage

of this, so early morning and evening flights

are jam packed. “This has certainly benefited

Lanseria Airport,” says Roberts. “Since Kulula

increased its routes to include Lanseria, the

figures have increased from 170 000 passen-

gers per annum to 600 000 in the past year.”

And yes, the increased air travel and the

promise of newer, more modern, world-class

facilities is good news. Traditional sites are being

replaced with top-of-the-range light boxes, LCD

screens, etc, putting our airports up there

among the world’s classiest. “Increasingly, local

airports are attracting high networth individuals

in their private jets as well as scheduled passengers

– the diversity is attractive to marketers,” says

Debbie Lea, joint MD, Airport Media.

But for now, things are somewhat in limbo.

The airport advertising concessionaires have little

knowledge at present of what platforms and

opportunities will be available once the revamps

have been completed. It’s really a matter of

‘we’ll have to wait and see‘. Cohen says that he

has viewed a simulated video impression of the

new facilities and will be keeping a close eye on

all developments. What we do know for now is

that the new airport facilities and environs will

be of First World standard, with a focus on

aesthetics and luxury. “The new international

arrivals terminal at OR Tambo will be the longest

walk in the world from aircraft door to public

hall once it’s completed, and it will be modern

and up to date. It will be a beautiful facility,”

says Lea. All current media owners will have any

sites lost due to upgrades of the terminal

buildings relocated on a like-for-like basis, with

the rest going out on tender.

Marketers and media planners are urged to

be patient and flexible – media owners are

doing what they can to accommodate them.

“Part of the day-to-day challenge is just going

with the flow,” says Roberts. Mansour adds that

media owners and agencies should be as

proactive as possible, and must communicate

with ACSA regularly. “We must also communicate

with clients and pre-empt their needs,” she says.

Media planners who work from their desks

will lose out – they are not familiar with the

airport environment as it is. Moving forward, it

will become crucial for planners and marketers

to do their homework and get into the airports

to see what’s happening first hand. “The

proof’s in the pudding, airports work as a

media location,” says Cohen. “At the end of the

day, if a brand advertises in a visible and

relevant space at the airport, they will get the

desired exposure.” �

Total international passengers: financial year-on-year trends www.acsa.co.za


I have a list of the top 20 ‘things’ that I have

learnt during my career as both a marketer and

a consumer (marketers should change hats

sometimes).

Please note that my tongue is firmly in my

cheek as I write this.

1. Check your brand name in all languages for

any controversial meaning (apparently

Pajero means ‘wanker’ in Spanish!)

2. Give clear and correct instructions on the

package. (If you really mean ‘chew along

the dotted line’, then say so!)

3. Don’t confuse your positioning. (Fast food is

fast food – it’s not ‘healthy’, as Wimpy

would have us believe!)

4. If you go the route of testimonials, have a

recovery strategy in the bag, in case your

spokesperson falls from grace in a big

way…. Amy Winehouse, Kate Moss and

OJ Simpson!

5. Be very careful with the use of humour in

your advertising. (Nando’s, blind people

have feelings too!)

6. Be extremely careful when using nudity or

big-breasted women in your advertising

(please Teazers, not in front of the

children!)

7. Be extra careful when using both bare-

breasted women and attempting humour

in your advertising (Landrover?)

8. Think about ‘infomercials’ – for some

extremely unfathomable reason they seem

to work.

9. Please give your background music

a bit more thought. While holding

on or waiting for a response, half an hour

of listening to Julio Iglesias, Richard

Clayderman or waves washing on the shore

(SAA) does not improve my already slightly

blue mood!

10. If you have embarked on an expensive

relationship campaign, spell your

customer’s name correctly (McIntee is not

that difficult!).

11. Red and yellow are not good colours

for websites. It has been said that staring

at these colours can raise a person’s

blood pressure.

12. Educate your customer when you discover a

new benefit. What the heck is ‘Low GI’?

(And I have a degree or two!)

13. Choose your words carefully when

promoting competitions; ‘Enter and win!’

to me means ‘I’ve entered, now what

have I won?’

14. Think of ‘speed’ as the next source of com-

petitive advantage – after hearing ‘your call

is important to us’ for 20 minutes really

means to me that a) there are not enough

people answering the phone or b) we know

who you are and we are answering more

important calls first.

15. Listen to your voice mail messages. A local

country club regularly informs me that

‘Charmaine is attending to a member (?) at

the moment, so please leave your name

and number….’ (Name changed to protect

the innocent).

16. If you create a dependency on the compo-

nents of your product (the customer cannot

use the product without a special branded

part), please relook your distribution strategy

– we cannot get refills for Cross pens in

Hoedspruit and nowhere in Nelspruit can

you find a stockist of Jeep batteries.

17. In fact, marketers, with regard to distribution,

kindly remember that not all your

customers live in Johannesburg, Durban

and Cape Town – ‘available nationally’

should mean just that.

18. While I am fully behind chain stores keeping

stock for the community at large, surely not

everyone buying lingerie in Boksburg is a

38DD (Woolworths).

19. Loyalty does not equal satisfaction! I think

you will find huge numbers of disgruntled

customers forced to put up with lousy serv-

ice because ‘the company or individual

wants to accumulate air miles’. It kind of

defeats the objective, doesn’t it? (All airlines

can take a bow here.)

20. Finally, don’t sell products that don’t work

…now there’s a real gem of wisdom.

Should I dare mention names? Maybe

next time. �

Helen McInteeacademic directorIMM graduate School of Marketing(011) 628 2038 [email protected]

Helen’s top 20 hits

by helen mcintee EXPERT OPINION


Innovative marketing to different segmentsof the market is needed for companies to secure

competitive advantage. Companies should

harness every opportunity to expose their brand,

products and services to existing and potential

customers. The customer service contact centre,

whether captive, as part of the organisation’s

operational structure or outsourced to an

independent provider, presents many untapped

channels that companies can use effectively to

communicate and market to different target

audiences.

To manage customer demand on all levels, call

and contact centres use creative voice, e-mail

and text message communication platforms to

reach their customers. Increasingly, integrated

systems and innovative technology solutions are

being employed to provide automated and self-

service options. Additionally, as convergence

generates more possibilities for integration of

media channels, customers are being introduced

to a broader range of options to meet their

service needs. This presents marketers with a

spectrum of dynamic opportunities to drive

exposure of a company’s brand to a new level.

Voice still remains the primary medium for

customers to interact with call centres the world

over. While call waiting is used to good effect

for informational messaging, integrated voice

response (IVR) solutions have become the alter-

native to lengthy call queuing, predominantly at

first resolution levels. This also assists to reduce

customer call termination and redundancy, a

benefit to maintaining customer satisfaction.

IVR platforms offer the potential for

marketers to capitalise on the informational

component with brand messaging and promo-

tional elements.

Specific promotional ‘banner’ messaging

around a theme, such as a public awareness

campaign or a welcome address to a city can be

used. Specific language, voice intonations and

sound can also be used to target different niche

audiences, for example, youth markets would

respond to different tone and language from

top-end corporate clients. Voice characterisation

with the IVR is well used by cellular operators to

maintain brand profile. Foreign languages can

also be introduced into the IVR that enable call

centres to communicate with an international

audience.

Internationally, contact centres are migrating

to self-service selection options. These offer a

wider range of functional options but also

expose users to informational and promotional

channels. Whether voice or Internet based,

these channels must be carefully managed to

avoid too many selection options and possible

spam messaging.

While touch-tone selection activation is still

very prevalent and is transversally used, voice

activation selection is growing. Voice recogni-

tion is an integral part of this technology and

does provide an element of sensory interaction

for the user. However, accent, pronunciation

and voice clarity do pose challenges in this

process and therefore these technologies are

not always effective alternatives to agent inter-

action. Yet, with sufficient technical and voice

compatibility this is proving an extremely effi-

cient service.

E-mail is a necessary customer contact chan-

nel for call centres. It alleviates the dependency

on voice and also allows for efficient time man-

agement by both the customer and the contact

centre. However, turnaround times and accurate

query response provision is critical to ensure this

channel remains a reliable and effective option

for customers. Part of this provision must also

include the functional efficiency of web-based

forms that customers can complete and submit

as queries.

E-mail provides marketers with the scope to

push direct marketing to customers, on an

information and visual level. Information about

customer service and support options, as well as

links to new products and services offered by a

company can be added in themed marketing

banners on each e-mail. This assists to inform

and educate customers but again constantly

expose markets to the brand. Marketers can

also include prompts for users to consider other

services offered by the contact centre, such as

customer self-service that incentivises a change

in their behaviour.

SMS and MMS communication is used by call

and contact centres, although not as consistently

as voice. SMS has had its most successful take

up as a result of interactive media campaigns,

where users respond via SMS to polls and com-

petitions. SMS receipt confirmation and

response again present marketers with creative

options to add short but clever brand messages

at the end of a standard SMS response.

MMS and other multimedia technologies offer

enhanced possibilities but have a way to go

before being leveraged by call centres. Certainly,

marketers should be considering these technolo-

gies to reach and influence new niche markets.

Contact centres, technology and content

providers should collaborate with sales,

marketing and media specialists to drive both

messages and brands to emerging consumer

markets now. Youth, who are quick adopters of

technology, will purchase products and services

according to their experience of brands. In this

sense, service is a critical enabler. �

Nicci Columbinemanaging director Columbine Communications(011) 880 8137 [email protected]

Effectively using technologyin contact centres

by nicci columbine EXPERT OPINION


Print management is a marketing processthat marketers abroad are fast getting to grips

with because it has the power to make print

marketing more targeted and cost-effective.

“Research shows that print remains the anchor

medium in the communication mix. Mixed

media options that use print to underpin the

other media outlets outperform single media

campaigns when it comes to return on marketing

investment,” says Graeme Futter, marketing

manager: brand communications, Sappi Fine

Paper SA.

Locally, print management is still a somewhat

new concept, says Alban Atkinson, managing

director, Ince. “Internationally, corporates with

large budgets are increasingly outsourcing their

print management.”

What is it, exactly? In a nutshell, it is the

process (and the software and technology)

that allows a brand design and its printed

application to be created and managed from

concept through to execution on packaging,

advertising and corporate communications.

Digital asset managementThis is usually a software system which allows a

brand to load and store its corporate identity

(logos, images and typefaces). The software

might be bought by the brand or company

directly, or by a print management specialist

(the company or brand then has access to the

software through its print management specialist).

In the former case, the brand doesn’t need to

engage with the designer/ad agency every

time a design logo is needed – it is already

stored in the system and can be adjusted as and

when needed.

Vested parties (designers, graphic artists, etc)

have access to the system, which allows the

corporate identity to be organised into different

formats (be it a packaging design, or a print

advert design), ready for print on demand. The

collateral is quickly and easily updated.

Ince, for example, uses a digital asset man-

agement software package called Dress Code;

its clients can create almost any print product

simply by logging into the system, selecting a

template and changing certain fields to tailor

the communication to their brand or business.

Their logo or other important design elements,

such as a specific colour, shape or image, simply

need to be ‘dropped into place’.

The system generates e-mails that request

authorisation on the design and the budget

before generating the print order, explains

Atkinson. Once the right approvals have been

given, the system will generate the print job,

quickly and efficiently.

The benefit of this system for the marketer is

that the brand’s design and identity is stored in

one place and is easily accessible. Designers

aren’t harassed to deliver design elements,

which means no additional costs or time spent

trying to source the design.

Also, the brand‘s identity will remain

consistent across any design application.

Colour managementColour-management software is another

important tool in the print-management

process, which is essential to maintaining

consistency in design. A can of Coca-Cola

should have the same red as the label on a

bottle of Coca-Cola, anywhere in the world.

Colour-management software takes into

account a variety of different materials, printing

processes and printers that are involved in the

packaging and design for a brand.

PersonalisationPrinters now have access to technology which

allows them to personalise print jobs, tailoring

the content or design to appeal directly to the

consumer or target. The applications for this

technology are endless – personalising a direct

mail communication so that it addresses each of

your consumers by first name; or printing a

custom magazine with advertising messages

that are personalised to each of its readers.

Local universities may soon be implementing

PRINT MANAGEMENT

Print management:design and print marketing

Tempo Silk benefitsSappi Fine Paper Europe has developed ahigh quality coated silk paper that printsand finishes like a gloss. Called Tempo Silk,it is a coated wood-free paper. This isgood news for printers, because the paperprovides a smooth surface, fast ink settingand drying, and scuff resistance (whichmeans increased productivity). Plus, itenables printers to reduce their use of antiset-off powder by between 50 and 75 percent (health and environmental benefits).The benefit for consumers is the silky,smooth touch.

PRINT MANAGEMENT


this, says Atkinson. Prospective students

complete detailed profiles relating to their

personal interests in terms of courses. The

system generates a personalised brochure for

each student with specific information on the

courses they expressed an interest in as well as

relevant financial solutions.

“With this technology, you can take direct

marketing much further. It’s all about the

database though. It has to be correct and

clean,” says Atkinson.

This technology will create new opportunities

for direct marketing. “Look out for trans-promo-

tional communication. That is, transactional

communications that carry promotional

elements,” says Atkinson. It won’t be long

before your bank statements carry advertising

messages from your favourite clothing retailer

(after all, your bank has information about your

shopping habits and even which clothing stores

you spend money at – it is in the perfect

position to offer those stores a prime spot on

your bank statement).

Eco-friendly print managementAnother hot topic is sustainability and

eco-friendliness. “Paper choice should not be

excluded from making informed decisions,”

says Futter “When used properly by a marketer

or a retailer, the paper used to print all those

inserts that fall out of our daily newspapers can

relay a very positive corporate or brand message

to consumers.

Marketers should become more informed

about the sustainability of the print medium as

well as the various sustainable paper options

out there. “They should not allow ‘poor

environmental perceptions’ to make decisions

for them,” says Futter. Marketers will need to

convince their markets that the use of paper is

environmentally sensitive (especially when the

paper is environmentally sound), to gain trust

from the consumer. It is becoming increasingly

important for marketers to know the manufac-

turing source of papers and print materials as

well as the origin of the fibres used in the

paper. “The issue of access to information on

paper-related topics is generally left to either the

printer or the design/ad agency. Unfortunately,

the final decision is normally made solely on

price with little or no regard to how the paper

decision impacts on the environment,” says

Futter. The perception of paper usage as

environmentally negative is not always accurate.

It’s about viewing marketing spend in a

different light based on environmental solution

offerings, says Futter.

Futter goes on to explain that eco-friendly

paper can cost more in some cases. Recycled

papers are more expensive to manufacture

(thanks to additional processes such as waste

collection, sorting and de-inking as well as the

costs associated with obtaining the right audits

and stamps of approval, for example, Forest

Stewardship Council). “Having said that, Sappi’s

Triple Green range of paper uses an alternative

primary fibre source derived from sugar cane, a

post agricultural waste product. The additional

virgin fibre carries a sustainable certification and

this option of sustainably produced, locally

manufactured coated paper is market

competitive,” he says.

Choosing the right paperThe choice of paper is crucial to any print job.

Not only is the quality of a print job an important

consideration, but the different applications that

each paper type allows for should also be

carefully considered. A few tips from the pros:� Gloss-coated papers are ideal for jobs with

less /text and lots of colour images� Silk-coated papers are ideal for jobs that

combine text and images� Matt coating is ideal for jobs that are text heavy� High white coating works well for jobs

requiring exact colour accuracy� High bulk coated papers offer sustainability� Look for high bulk but low weight papers

for jobs that will be posted� Paper with good folding characteristics are

ideal for jobs requiring construction� Coated wood-free paper is great for jobs that

require long-lasting whiteness and quality� Brightness is an important consideration

(though this may push costs up) as well as

the holdout of the paper (ie its ability to

hold ink consistently). �

What you should look for when outsourcing your printmanagement: some tips from the prosRichard Evans, chief executive, Affinity Connected in the UK, has the following tips formarketers (www.affinityprintmanagement.co.uk).Look for a company that:� Doesn’t own its own presses, but rather finds printers with the right presses and

machines for the individual job. This means that they are able to cater to your everyneed, and are also able to find you the best deals.

� Has a solid understanding of how to reduce waste and costs without compromisingon quality.

� Has the ability to audit your print campaigns and identify not only ROI on previouscampaigns, but also the opportunities and options for changes and adaptations whichwill deliver greater ROI and impact.

� Will become your company’s or brand’s advocate in the print space, and will investtime and energy in developing your strategy.

The most important questions to ask print management specialists:� Do you own your own presses? � Does size really matter? � How much time do you have to spend on print?

The Power of Personalisationstudy: The CMO Council’skey findings (marketingcharts.com)� Half of CMOs surveyed report having

only fair to poor knowledge of theircustomers (ie they have inadequatecustomer data)

� 38 per cent said they didn’t knowwhether personalised communicationshad outperformed traditional massmarketing tactics (ie inadequate meas-urement and evaluation)

� 55 per cent plan to allocate 10 per cent of their budget or more towardspersonalisation in 2008

� Levels of adoption of personalisationremain low

� Lack of consumer data and insight aswell as concerns over the cost andcomplexity of personalisation werecited as major challenges

� The top benefits of personalisationinclude making offers more relevantand meaningful to prospects, buildingcloser relationships with them andincreasing the company’s overallmarketing effectiveness.


Innovation – an allie youcan’t afford to be without

by lisa basson EXPERT OPINION

The advertising industry in South Africa isstill failing to recognise the impact of technology

and to what degree it can be leveraged. If used

in the right context, it can stimulate the impact

being made on consumers and thereby help in

growing brand/consumer relationships and

appreciation as well as ROI.

Furthermore, the gap that exists between

marketing managers and their agencies must be

bridged. The fact is that a couple of print ads

and/or a misplaced and misguided television ad

are not going make an impact on any consumer,

let alone reach the desired target market.

Education and open-mindedness now

become hypercritical.

Just take a drive through the streets of

Johannesburg and this becomes truly evident.

Adverts located on every second building and

every available billboard, regardless of location

and relevance, not forgetting the random flyers

that creep in through the car window. The

problem boils down to not making any

significant impact or creating any sort of

consumer resonance, which tends to be due to

the absence of two critical factors: i) strategy –

based on extensive knowledge of the current

consumer landscape, trends and understanding

of how various facets of media are developing

and ii) innovative application to media ventures

based on this knowledge.

Poor placements indicate that although the

funds are available and marketing managers

and agencies both have thousands of tools at

their disposal, their eyes are just not open wide

enough to see the potential of innovative

marketing tools, even those of traditional origin.

Industry players need to start to identify the

new contexts and social dynamics within our

environment whilst marketing, media and

technology must still remain critical points of

overlapping focus in the quest to establish

innovative value added solutions.

Strategy, as having been identified as one of

the critical components, must be considered all

the way from media through to creative

innovation and the achievement of a company’s

desired bottom line. However, from a holistic

input perspective, other industry experts cannot

be ignored when creating executions and strategies

that will truly resonate with the consumer.

Brilliant examples of innovative strategic

action carried out under the auspices of

technology indicate that some companies are

starting to appreciate the importance of innovation,

technology and strategy all morphed together.

Telkom Media’s Telkom Television application

is an example of an excellent broad based

innovative technological strategy that has also

incorporated a perspective on long-term

sustainability. Just think web TV, video on

demand, satellite TV and radio, and a host of

other quality interactive services, all of which

provide new dimensions and avenues to com-

municate with consumers.

Having said that, within the pay-TV sector

there is nothing spectacular about the holistic

Telkom television offer. BUT what impresses

about Telkom’s move and makes it worth

mentioning is that it has the foresight to create

a strategic bridge from the mother brand that is

both innovative and diverse in orientation.

This bridge, even if relatively indirect in terms

of direct company association, may prove to

add value to the total brand image of Telkom,

which is under an immense amount of pressure.

An innovative, strategic safety buffer, if you like.

From a more concentrated point of departure,

look at the reactive state in which the South

African economy has been placed due to the

Eskom power crisis and the resultant innovative

technological proposal for the implementation

of solar-powered traffic lights (a strategy

cultivated to alleviate havoc on our roads).

Perhaps we can look forward to seeing

advertising placements being fitted into the

solar panels; we may see innovative thieves

making off with these panels, but at least the

advertising will go with them and aid in creating

increased brand awareness and visibility.

Another exciting example of strategic innovation

is the music industry’s answer to its current

revenue-generation crisis, and the dawning of a

whole new era of music sales and marketing.

Take Qtrax – ‘An advertiser supported, legal

peer-to-peer music jukebox that enables the

user to have free music downloads’. This is a

most innovative application of technology and

provides many new strategic marketing and

media placement opportunities.

Finally, the Nintendo Wii must get a mention.

The Wii provides gamers with a new experience

and enables an interactive environment, which

some clever marketing and media people should

most certainly have the capability to exploit.

Attention to what’s going on locally and

globally, creativity and metrics will result in

complementing the creation of an innovative

strategy that is market relevant and accessible.

Without an innovative strategy, a brand

and/or client may just be lost in the clutter

and left behind.

* I have been advised recently that Telkom

Media is in the process of revising its entire

business plan, as was originally presented

to ICASA �

Lisa Basson

strategic saburaiTom-mo-e083 317 [email protected]


In which world do we live?

by nici stathacopoulos EXPERT OPINION

You must know that your brand lives in the

‘happy marriages’ quadrant when consumers

become fans of the brand on Facebook (my

most favourite social community network, am

active without fail daily, even if just via my

mobile!)

So I did a quick look around my friends’ pro-

files to see who is a fan of what (it’s an applica-

tion you can load on your profile). Being in

advertising the first trend I noticed is that my

friends in the industry have listed themselves as

fans of many of the brands they are managing.

I wonder, if the relationship was terminated,

whether they would feel the same way?

Some well-known brands have these follow-

ings on Facebook:� Marmite – 49 000 fans� H&M – 42 000 fans� Jeep – 22 000 fans� Starbucks – 15 000 fans� Zara – 12 000 fans� Ferrari – 9 000 fans� Toblerone – 6 000 fans

It appears that the most popular products

include cars, clothing and alcohol! Surprisingly,

the all popular Manchester United FC has only

3 000 fans, and brands like McDonalds, KFC

and Nike less than 3 500 fans, yet they are con-

sidered the most popular brands in the world.

Coca-Cola has all of 88 fans while Ticketmaster

has over 150 000 fans! Clearly, the latter did

something right in the virtual space.

So, moving on from Facebook, let’s look at

some brands that occupy ‘real’ space on Second

Life. These are paid for content providers which

make living in the virtual world more realistic.� Mazda� Coca-Cola� Dell � Adidas� IBM� Reuters� Nissan� Reebok

With the dawn of the new ‘immediate now’

age, the web has become a living community

that has ’extended beyond the virtual world to

become the organising epicentre of its advo-

cates’ lives’. And as such, we consumers

become more vocal about the brands we inter-

act with in a far more public and open manner

than ever before. If brands are to survive they

need to adapt (with some keen sense of

urgency). As consumers evolve and adapt their

online behaviour, brands can start to use this to

their advantage and build even stronger

relationships. And finally, this can be done

overnight, or in less than a minute!

Some facts from an international survey by

Proximity Worldwide (documented clearly in a

publication called Sex, Lies and Reality, an inter-

esting survey and read, produced by Proximity WW).� 68 per cent of companies expect Web 2.0

methods and tools to have the greatest

impact on the way that their company

interacts with customers.� Nearly 60 per cent of companies say they

are inviting customers to contribute content

that explains, supports or enhances their

products, or that they plan to do so within

the coming two years.� 47 per cent of companies are, or are plan-

ning to treat customers as co-developers of

products that constantly improve in a con-

tinual beta-testing phase.� Microsoft has some 650 bloggers; Jonathan

Schwartz, COO of Sun Microsystems, blogs;

the VP of General Motors blogs.

We now live in an ‘in-between’ world that we

inhabit almost in transit. We move through shop-

ping malls, taxi ranks and coffee shops, without

staying. Our online behaviour is similar: people

can form unconditional relationships, choose only

those visual clues they wish to display and have

far more control over what they say.

If I want the consumer to buy a particular

brand, then where better to find exact clones of

people who are already purchasing the brand?

‘For brands this means embracing the virtual

world in the same way as the users and allow-

ing the boundaries to blur when thinking about

communications strategies. A key implication for

brands is that observing behaviour online is

increasingly giving us more accurate insights

into what people really think than traditional

marketing categorisations’. (Excerpt from Sex,

Lies and Reality).

Proximity WW did a survey in the summer of

2007 into brands that people trust the most.

The best performer was Google, which has built

itself by starting with the vision that making the

world’s knowledge easily accessible to all would

be a very useful thing. eBay, Amazon and Apple

also fit into this category.

The web has created the following mindset

migration, from � Content to co-creation� Control to collaboration� Channels to conversation� Consumers to communities.

At the end of the day, real or virtual, it’s all

about respect. When you have a conversation

you’re talking to an individual, not broadcasting

to a crowd. And that’s why CRM (one to one

marketing) has re-emerged at the frontline of

communication tools. You also need to remember

that being able to engage effectively with that

individual doesn’t mean you should try to be

their friend – they’ve got plenty of real friends,

that’s not what they want from brands.

Brands need to listen, learn and participate.

In this manner, they will form good friendships

and happy marriages, in the real world! �

Nici Stathacopoulos

managing partner proximity#ttp(011) 447 7093

MARKETING AT RETAIL


On 28 February 2008, industry experts met to discuss the green shopper, and how

brands and companies should be talking to

them. Speakers were: Mike Freedman, founder,

Freedthinkers; Tamra Veley, MD, Corporate

Image; Tessa Chamberlain, general manager:

Sustainable Development, Pick n Pay; Barbara

Cooke, founding partner, TGI South Africa;

Vanessa von Holdt, an independent packaging

consultant; and Karin Kruger, Paper Sciences

manager, Sappi.

Key learnings Consumer choice is a major factor, since more

consumers are choosing to understand and

reduce their carbon impact, and expect

brands to do the same. Veley says that

35 million Americans are regularly buying

eco-friendly products.

Moving forward, marketers will need to

segment consumers based on an understanding

of their relationship to Green. Consumers will

expect brands to be in it for the long haul

(commitment to ongoing projects will be valued

over short-term marketing ploys). We can expect

to see a major influx of brands claiming

themselves green, eco-friendly, and/or fair-trade,

says Freedman; “we’re seeing a colonisation of

green brands”. But Greenwashing – befuddling

the consumer with green jargon and nonsense

– is not going to be tolerated (consumers are

savvy and will boycott the fakers).

Green is full of contradictions and muddles:

green activists are more likely to have a higher

carbon footprint than the average consumer,

because they own cars and travel abroad by

plane. As yet, there are no legislative frameworks

in place, nor any definitions for green jargon.

“Advocacy groups have huge opportunities

now,” says Cooke; organisations should be

grabbing the Green bull by the horns and

establishing their own green policies and best

practices. Von Holdt says that household

post-consumer waste is a major issue moving

forward, as is general waste management.

Brand owners and retailers should be more

proactive about reducing their packaging, and

The green shopperworkshop report back

Brand owners and retailers should be moreproactive about reducing their packaging, andinvestigating sustainable or renewable packagingmaterials.

“”

Packaging facts and figures from the Packaging Councilof South Africa (PACSA):� Packaging industry is worth some R35 billion per annum (2007: BMI) and employs

50 000 people� Recycling sector employs 55 000 additional people� Packaging is estimated to be around 12 per cent of the household waste stream in

SA (PIKITUP Survey 2004)� Beverage cans have a 67 per cent recycling rate; recycling industry employs 37 000

people; has collected 750 000 tons since it started� Fifty-seven per cent of recoverable paper is recycled; 16 per cent of paper used is

not suitable for recovery� In 2006, paper recyclers collected 965 000 tons of paper � R230 million is invested directly into paper recycling, where 12 600 people are

employed� Demand for recycled paper will grow to 1 155 million tons by 2009� Glass has a 25 per cent recycling rate; the Glass Recycling Company aims to raise

this to 50 per cent in five years� R50 million has been invested in glass cullet colour-sorting equipment � Plastic has a 33 per cent recycling rate, including factory waste� 160 recyclers, recycling 172 000 tons� Plastic (in recovered waste fuel state) has a calorific value up to 40 times better

than coal and is being used extensively in Europe.


investigating sustainable or renewable packaging

materials.

Cooke presented interesting trends and findings

from local and international research that the

group has carried out. TGI defines the eco-

adopters as the market with an environmentally

conscientious mindset. Throughout the rest of the

world, this group makes up about two per cent of

the population, while in South Africa, the figure is

around five per cent. “They are a small group but

they could become advocates and opinion leaders

for the green movement,” says Cooke.

Eco-adopters are:� More likely to be more educated and finan-

cially secure (more likely to be classified into

LSM 7-10) � More discerning when it comes to the

brands they purchase (there is a focus on

organic, free-range and non-GM foods as

well as on a company’s ethics), and they

are willing to pay a premium for these.

Convenience and pleasure also play a role� Brand loyal and Green loyal � Adopters of word of mouth and advocacy

marketing� Media savvy; want brands to educate and

engage them.

TGI finds that print, outdoor, Internet and cine-

ma are more effective in reaching this market than

TV and radio. The local newspapers that are most

read by green supporters include: The Independent

on Saturday, Beeld and the Mail & Guardian.

Locally, the supermarkets that eco adopters

frequent for bulk grocery shopping are

Woolworths, Friendly Supermarket, Spar, Makro,

Diskom, Checkers and Pick n Pay (stores that ranked

negatively include Score, spaza shops, neighbour-

hood markets and township supermarkets).

Legislation and guidelinesVon Holdt says that the Polokwane Declaration

(2001) enables structures for the implementation

of a waste management system which con-

tributes to sustainable development. It aims to

develop a common effort towards a goal for a

reduction of waste generated and disposed of by

50 per cent by 2012, and will develop a plan for

a zero-waste society by 2020. She adds that the

Declaration will mean closer scrutiny of all pack-

aging materials and processes; producers will

have a greater responsibility to reduce, reuse,

recycle and recover packaging. It is expected that

this bill will become law in mid-2008.

The Air Quality Bill and Water Bill will also

have an impact. Government is working on

these currently. �

MARKETING AT RETAIL

Pick n PayPick n Pay has been involved insustainable initiatives since the1980s, when the stores launcheda range of green products, andalso began educating the con-sumer about the ecosystem. Butaccording to Chamberlain, thegreen products line was prema-ture: the market was not ready forthis development, and over theyears, the product rangedwindled. Today, the company’ssustainable development strategyhas shifted; it recognises thatstores need to become eco-effective, rather than simplystocking green products.Sustainability needs to become aninternal process. And the customer-focused approach needs to adaptto a broader concept of partnershipthat views employees, contractorsand suppliers as priority stakeholders.The stores’ sustainable develop-ment commitments:� Promoting broad-based black

economic empowermentthrough partnerships with theBethlehem Farmers Trust or theWinterveldt FarmingCommunity, for example.

� Reducing their carbon foot-print through monitoring andreporting, including reportingto the Carbon DisclosureProject – a global independentnon-profit organisation, towhich companies report their corporate greenhouse gas emissions. The stores areactively identifying opportunities for reducing their carbon footprint, including pur-chasing green electricity or improving energy efficiency in operations and fleets. “Wehave already made energy savings of 23 per cent in our head office, by using energy-saving light bulbs and changing basic operations. We changed employee behaviourand created awareness,” says Chamberlain.

� Reducing waste and energy usage, which includes a waste-oil-to-biodiesel initiative,which is set to be rolled out in the coming months.

� Promoting innovation, especially around green products and eco-effective stores aswell as through research which aims to reduce the environmental footprint ofpackaging.

� Developing sustainability partnerships, which will facilitate sustainable sourcing, fairertrading practices and greater awareness of sustainability issues. Pick n Pay was the firstmajor South African retailer to engage with the World Wide Fund for Nature’sSouthern African Sustainable Seafood Initiative (SASSI), for example;

� Implementing a sustainability communications strategy, which involves employeetraining and awareness programmes as well as consumer awareness initiatives. “It’sabout educating the consumer to make important decisions, so that they can pick theright brands and products,” says Chamberlain.


The shortage of skills is affecting everysingle industry in this country. Productivity,

competitiveness and sustained economic

growth are compromised. We need to face the

skills crisis head-on and aggressively put actions

in place, but there is no quick-fix solution.

In 2003, the Department of Labour published

a document on the ‘State of skills in South

Africa’ and noted that the skills shortage in this

country has long been a challenge driven

primarily by the effect of the apartheid

government’s policies, but also by more

structural shifts in the economy.

Reviewing where we are today, it seems that

very little has been done and this is witnessed in

very specialised industries like branding and

others. It’s time to stop talking about the

problems and do something.

To translate talk into action, massive input

and commitment is required from the education

authorities, schools, industry bodies and

companies. A total re-look at our education

system is the starting point.

Exposing school learners to a diversity of

work environments is critical. How many of us

studied for a Bachelor of Arts degree because it

was a ‘safe’ choice? How many of us made

education choices based on the influence of our

parents or our friends? The vast majority of

youngsters have absolutely no idea about the

working world and what career choices are

open to them. We need to expose learners to

the world of work and help them align their

interests to that.

There are some schools that encourage

learners to ‘job shadow’ during one of their

holidays, but all too often this involves a two-

day sojourn in a parent’s friend’s company,

perfecting their tea-making and photocopying

skills! The students should be there to observe,

do and learn.

Work experience should be compulsory for

every Grade 11 and 12 learner – and it should

be pre-empted by a thorough career guidance

programme within the schools themselves.

Learners would then be able to make more

informed course choices for their tertiary

education.

Of course, there are some companies –

mainly multinationals – that have programmes

in place to educate students on various career

options, but this country needs the full cooperation

from every organisation – both large and small

– if we are to effect meaningful and long-term

change.

Organisations need to work far more closely

with schools and universities to provide relevant

career guidance and counseling. Experts could

be invited to schools on a regular basis to create

awareness of various industries and career

choices. Companies should hold regular open

days to expose students to their business and

their business processes.

But most importantly, internships need to

become an integral part of every company in

South Africa.

Companies employ people on the basis of

their ability and their experience. But experience

can’t be learnt at school or university, nor can it

be bought. It is gained. It’s a catch 22 situation

– people don’t have experience, so they can’t

get a job. But they can’t get experience without

employment. Internships can change this.

Taking in interns does require considerable

input from an organisation. Interviews should

be held with potential candidates to ensure

suitability, after which each intern should be

assigned to a senior person in the business who

acts as a coach. The coach coordinates the

intern’s work, supervises and guides their

efforts, ensures the productive use of time and

provides feedback.

At the end of their tenure, interns should get

a complete evaluation report from the coach

and should be allowed an opportunity to

present their own experiences. Valuable lessons

can be learnt from both parties.

There’s no doubt there are companies out

there questioning why they should invest time

and effort only to see their interns snapped up

by a competitor. And it happens. But if every

company invested in boosting the country’s

skills base, everyone would benefit.

From a creative perspective, there is vast raw

talent out there. We need to identify that talent,

expose the students to career options and

provide opportunities for work experience.

From a branding perspective, we need to

clarify exactly what the branding industry is and

create understanding and awareness. Most

people don’t understand what branding is. It’s

often confused with advertising and even

marketing professionals often can’t define or

describe what branding actually involves. As a

start, I would suggest that:� Branding should be a subject choice at

schools and tertiary education institutions� Branding agencies should sponsor an annual

creative award for students and learners� Specialist branding agencies should align

themselves with schools and universities

and transfer their knowledge� Branding agencies should provide holiday jobs,

professional career guidance and internships.

There is no industry in South Africa that isn’t

facing a skills crisis – but we need to pull

together and work collectively and aggressively

to have any hope of making headway. �

nana nkosi EXPERT OPINION

Nana Nkosi

Client service director, HKLM(011) 461 [email protected]

Nana Nkosi

New approach to skills crisis

We need to clarifyexactly what the brandingindustry is and createunderstanding andawareness. Most peopledon’t understand whatbranding is.

”

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marketing mix magazine march april 08

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