Marketing Mix Magazine April/may Issue 2007

MarketingMix S T R A T E G I C

M A R K E T I N G

I N S I G H T

I Vo l 2 5 I s s u e N o . 3 / 4 I R 2 5 . 0 0 i n c l . v a t

MarketingMix

CONTENTS

I 0 2 I Book Review

I 30 I Personalised Printing

Simon Anholt’s Competitive Identity

How to really impress your clients in

deals with the issue of nation

a few easy steps through

branding

personalisation

I 0 4 I Ed’s note

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I 32 I Database Best Practices Are you getting the most out of your

I 0 6 I The DMA

database and data?

Find out more about the DMA’s Opt Out Register

I 3 5 I Expert Opinion: I 0 8 I News All the latest gossip in the wonderful

Nici Stathacopoulos

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world of the marketing mix

I 1 4 I Expert Opinion:

Nici reports back from the Proximity Worldwide Conference

Richard Duncan

I 3 8 I Experiential Marketing

Richard explores the good, the bad,

Are you really connecting your brand

and the ugly entrepreneurs

with your customer? Experiential

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I 1 6 I Brand Anatomy

marketing provides the coolest way to do it

Neotel built a brand completely from

I 4 2 I POPAI SA

scratch – here’s how

We take a closer look at consumer preferences and Point of Sale

I 1 8 I Expert Opinion:

marketing

Helen McIntee 44

Helen McIntee tells us why ‘glocal’ is lekker

21

I 4 4 I Sales Promotions Critique Our panel of experts looks at a few

I 1 9 I 7 Day [B]itch

of the latest, greatest sales promos

Joy Turnbull, deputy MD, Net#work BBDO, takes us on a guided tour of

I 4 6 I Top Print Performers

her frenetic week

I 2 0 I Product Placement

56

How to make product integration

Are you ready for the future of media? Do you know enough about

to find out which publications are really making the grade

work for your brand

I 2 4 I New Media

A close look at last year’s ABC results

24

I 5 6 I Law Mix Dr Wim Alberts looks at the impact of geography on trademark laws

blogs, vlogs and mobisodes?

Vol 25 No. 3/4 I MarketingMix

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by michelle sturman BOOK REVIEW

Competitive Identity The New Brand Management for Nations, Cities and Regions Some of you may recognise Simon Anholt’s name. While he is a government advisor, he is also the father of ‘nation branding,’ a term he coined over 10 years ago. In his latest book, Competitive Identity, Anholt explains the evolution of nation branding into competitive identity. He describes this progression as moving from nation branding: ‘the reputations of countries are rather like the brand images of companies and products, and equally important…’ to competitive identity (CI): ‘because it has more to do with national identity and the politics and economics of competitiveness than with branding as it is usually understood.’ He dives straight into illuminating the impact of globalisation, arguing that sub-consciously everyone has an image of a place (people, culture, economy) which directly influences their behaviour towards that nation or city. Globalisation also means that countries, regions and cities compete with each other in terms of tourists, business, investments and events etc. Unfortunately, even when countries engage in nation branding, it’s very difficult to change perceptions, especially when various bodies fail to promote a cohesive version of the place in question. This is where CI fits in. It is ‘the synthesis of brand management with public diplomacy and trade, investment, tourism and export promotion. CI is a

new model for enhanced national competitiveness in a global world…’ Anholt states that the biggest and most vital component of CI is creating ‘benign nationalism amongst the populace.’ He explains the channels through which a national reputation is created and how it is lost. CI is not about putting up a pretty website or about having glossy brochures for the wealthy foreigners to ‘oh’ and ‘ah’ over. CI ‘is about government, companies and people learning to channel their behaviour in a common direction that’s positive and productive for the country’s reputation, so they can start to earn the reputation they need and deserve.’ In order to do this we need to understand the way in which per-

Marketing Mix caught up with Simon Anholt to find out his view on South Africa’s competitive identity: When the image and reputation of a country is stable such as Canada, it doesn’t really make a difference whether there are positive or negative stories abound. However, with a country such as South Africa, the image is on the move and the file is marked ‘changing’ in people’s minds. It is understood that corruption and instability are part of SA’s image and it’s not a safe and perfect country – the most important factor is that it is moving in the right direction. Therefore, the recent headlines in the international media regarding members of the SA government are not going to destroy the country although it must keep a steady flow of positive stories coming out too, especially those involving innovative policies and behaviour. What needs to be remembered is that the external image of a country moves much slower than the internal one. While it’s enormously hard for countries to improve their reputation it has to be achieved with internal buy-in. The government must take this seriously and not just for domestic purposes but for the country’s international reputation.

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ceptions are formed. We also need to realise that they cannot be changed by traditional marketing methods. Anholt explains how to use marketing and media and when to promote CI: it is 80 per cent innovation, 15 per cent coordination and only five per cent communication. Then there is the Nation Brands Index, which studies peoples’ perceptions of countries. In the 2005 (Q4) Nation Brands Index, South Africa was rated 32 out of 35 although South Africans rated themselves as 6th. The first (recently conducted) City Brands Index placed Johannesburg at 27 out of 30. Visit www.nationbrandindex.com for more information. Since there is no predictable formula available for CI, countries, regions and cities should work on different aspects to improve their current image. The first step of CI is to establish exactly what needs to be worked on and why it needs to be changed. Anholt provides the following assessment:  If a place is unknown, it needs to be introduced  Some places are known to the wrong audience. Target the right market  Some places are known for the wrong reasons. There are four different types of incorrect image: If associations are positive but limited, the image needs to be expanded. If there is a vague awareness, the image needs to be enhanced, especially to differentiate it from competition. Associations that are outdated need to be updated and revitalised. Associations that are negative need to be improved and perceptions need to be shifted In order to get a CI strategy to work, Anholt suggests that the following six points must be adhered to: creative, ownable, sharp, motivating, relevant and elemental. Using a great idea attached or associated with a place or event is a fruitful exercise when it comes to promoting positive perceptions. Throughout the book Anholt uses many examples that illustrate the reinforcement of both positive and negative perceptions related to various places (including South Africa and Africa), which makes for very interesting reading. g

INTERACTIVE MARKETING SUMMIT 28th March ‘07

Actionable Digital Marketing Ideas from proven Winners This morning workshop will give you a very clear vision of how online and mobile marketing will evolve in SA over the next two to three years. Each presenter will demonstrate and explain successful campaigns so that you can go away with quick win ideas for your business. Organised by Marketing Mix in association with 24.com and the Online Publishers Association and supported by the Direct Marketing Association. The best thinking from the best people. 7:30 – 8:00

Registration

8:00 – 8:45

20/10 Vision

8:45 – 9:30

Relationship Marketing Solutions

How will online and mobile evolve in SA over the next three years? Elan Lohmann, publisher of News24.com will present you with his vision for SA, the opportunities, the obstacles and the probable way forward.

Yaron Assabi of Digital Solutions Group will demonstrate how to achieve relationship marketing objectives through integrating multiple digital channels.

9:30 – 10:15

Leads Generation

10:15 – 10:45

Coffee & Networking

10:45 – 11:15

Mobile Marketing

Russell Atkins of 24.com will overview the latest trends and provide insights into the changing face of mobile marketing – from interactive text messaging, to ad-supported content and the mobile Web. Using case studies he will demonstrate the awesome response power of mobile media – and explain how marketers can capitalise on a burgeoning local market and maximise the opportunities for their brands.

10:45 – 11:15

Mobile Marketing

Russell Atkins of 24.com will overview the latest trends and provide insights into the changing face of mobile marketing – from interactive text messaging, to ad-supported content and the mobile Web. Using case studies he will demonstrate the awesome response power of mobile media – and explain how marketers can capitalise on a burgeoning local market and maximise the opportunities for their brands.

11:15 – 12:00 Search Engine Optimization

12:00 – 12:30

The trend towards Consent Marketing places even more emphasis on developing successful lead generation programmes. Candy Goodman of Striata will brief you on the do’s and don’ts and demonstrate some very compelling examples.

Mark van Diggelen, CEO of Trafficonomy.com will discuss and demo strate simple and effective optimisation techniques which have proved highly successful for SA’s top online brands. He’ll share his insights into the current and more importantly future landscape of the of the SEO function in the emerging world of Web 2.0.

Ask the Experts Your opportunity to raise questions and discuss your specific interests.

Venue – Axiz Conference Room, International Business Gateway, New Road, Midrand Delegate Fee – R 1 250 plus VAT Bookings – Louise Wilsenach [email protected] or 011 234 7008

by michelle sturman ED’S NOTE

A personal note Did you notice that you had your name on our front cover? If not, flip there now and marvel at this wonderful feat of personalisation. I have to say a huge thank you to Kodak, Antalis and House of Print for arranging all of this – and I hope you’re impressed. While we’ve only published a very basic version of what can be achieved by variable data printing (or print personalisation), there is so much more that can be done. As marketers bemoan the fact that consumers are becoming harder to reach, this process represents a surefire way of making them sit up and take notice. Of course, it all depends on how great your database is and what information you’ve managed to store on your customers. While we have elected to go for the same pic and headline and have simply inserted your name, we could have equally have chosen to change every single pic and headline. Our personalised printing venture was undertaken simply to impress you and to demonstrate the really cool stuff that can be done with the advancements in printing and with this technology in particular. A direct marketing campaign using variable data printing can be truly awesome and the corresponding ROI can be significant. Of course there are always dangers related to personalising the cover of a magazine – spelling mistakes, for example. In the past I’ve received a few personalised magazines and direct mailers that have used this technology and spelt my name incorrectly. However I was sufficiently impressed by the fact that someone had taken the trouble to personalise the information to overlook the mistake. Print personalisation is still fairly new on the local market and the first companies to use it effectively – and before it becomes more commonplace – are bound to impress clients and consumers alike. Read more about variable print personalisation on page 30. g

blog: http://mmxsa.blogspot.com

PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Hall, Mellis Road, Rivonia PUBLISHER: Terry Murphy EDITOR: Michelle Sturman Email: [email protected] JOURNALIST: Fulvia Becatti Email: [email protected]

SUB-EDITOR: Sarah Webster Email: [email protected] ADVERTISING MANAGER: Nirosh Moodley Email: [email protected] PRODUCTION: Spencer van Graan Email: [email protected] SUBSCRIPTION ENQUIRIES: Louise Wilsenach Email: [email protected]

Copyright of all material in this publication and supplements are reserved by the proprietors, except where expressly stated. The opinions in this publication do not necessarily represent the views of the publisher.

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Database: List Perfect

DMA

Opt out register The Direct Marketing Association of South Africa (DMASA) is in the process of launching a national ‘Opt Out Register’ for consumers who want to remove their details from mailing lists that are used by marketers to promote goods and services. The DMA is hoping to have the register live on their website during this month. It will be updated on a monthly basis. The Opt Out Register – previously known as the Mail Preference Service (MPS) – will serve the sole purpose of removing names and addresses from prospective mailing lists. However, this won’t put a stop to all of the mail. Consumers are more than likely to continue to receive mail from those they already do business with. They will also continue to receive unpersonalised mail that is addressed ‘to the occupant.’ The creation of the register is a response to new Government legislation which has both advantages and disadvantages. While consumers will no longer receive unsolicited mail, this also means that they may miss useful and legitimate mail that could be of value. The DMA has provided consumers with an option in the opt-out register which they can utilise to select the categories they want to opt out of. All companies who make use of databases will be required by law to run them through the opt out register every time they run a direct marketing campaign. They will have to remove any names appearing on their lists that have been registered on the opt out list. Failure to do so will result in heavy penalties since the process will be regulated. DMA members are now required to run their lists of prospective customers against the file and to remove the individuals who have registered so that they do not send their mailings to these individuals. There is no cost to DMA members for this service.

Join the DMA… To join, visit www.facilities.coza/dma DMA fees are paid annually on the anniversary date of joining the organisation and are based on the size of your company. Payment can be made via cheque or EFT. An invoice will be e-mailed as soon as you have completed the online membership. Before you go to the link above in order to register to become a member, you will need to have the following information available:  Your company details  Your company coordinator’s details ie the person who will be responsible for keeping your company details up to date on a quarterly basis  Your company decision maker’s details ie the person who will authorise your membership of the DMA and the essential payment of membership fees  The details of staff members who you believe should receive information updates from the DMA on an ongoing basis. If you do not have all the details with you, your company coordinator can go back into the system at any time to update these details Contact details: (011) 577 2780 [email protected] www.dmasa.org

Founder Members are offered the following:  One year free DMA corporate membership  A free (full day) customised educational seminar about direct marketing, presented by industry specialists  Representation on the DMA website  Logo on all pro bono DMA ad placements  Six free tables over the course of 12 months at various DMA events  Showcasing at various relevant exhibitions and conferences  An official Founder Member certificate  An opportunity to join the planned mentoring programme Special consideration will also be given to Founder Members through Marketing Mix, with respect to:  Nominating topics and being invited to provide expert opinions, leading sponsorship rights and occupying premium advertising positions within Marketing Mix  Nominating topics for executive roundtables that are hosted by Marketing Mix  A customised communication programme that can be implemented with the DMA and Marketing Mix

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MarketingMix I Vol 25 No. 3/4

DMA

Industry association membership must be an intellectual and not an emotional decesion By Brian Mdluli, CEO, DMA

Does a professional or trade association exist to serve its members or to serve the industry – or does it exist in order to perpetuate itself? There are simply too many people involved in association leadership today who believe the latter. Too often members join an industry association because they are motivated by an emotional connection and feel that it’s the ‘right thing to do.’ Joining the DMA must be a business decision. Both the members and the association must see and deliver real and tangible results and benefits for the relationship to work. A search for real member value across an array of associations will in many instances turn up some benefits that make no real financial sense to their member companies. In my research I have found that few associations are prepared to go as far as telling their members exactly what it is they are going to do for them and exactly what it is they expect in return. What about quantifying the real Rand value a member derives from being a member of an association? In today’s age where companies are scrutinising every cent they spend, there are few businesses who join associations because supporting the industry is the right thing to do. Many companies are re-evaluating the value of such memberships. Too many associations believe that giving their members a few frivolous networking sessions and the right to bandy their logo about is value enough. In developing the constitution, vision and mission of the DMASA, the board was aware of being able to provide value for its members, as well as recruiting members that were vocally and actively involved in and concerned about the fray of legislative issues that are facing both the industry and consumers today. They also have the economic weight behind them to make the law makers sit up and listen to both sides of the debate. To this end we have been successful in attracting some of the biggest brands behind direct marketing as members of the association. It is the harnessing of this combined force that has enabled us to secure some important wins on the legislation front. By bringing together the best minds in the industry from the various legal, financial, creative and strategic perspectives, we have formulated a common purpose and goal and conducted the focused lobbying of Government about proposed new legislation. In this way we have averted what could have resulted in dire consequences for the industry.

While it is simply impossible to put a Rand value to this kind of work, each and every member understands the implicit value of the work as it relates to their continued existence. This is where the true value of being a member of an industry association comes into play. The core purpose of an industry association exists for the benefit of its members. It assists them in conducting their businesses in a manner that is professional, fair, ethical and for the betterment of the entire industry. All those who are involved must receive reasonable value in exchange for their resources and commitment to the association. Staff members receive value – it’s called a paycheck. Members expect to see value in terms of how an industry association contributes to their business dealings. However there is also some onus on the member. Simply showing up at a meeting once or twice a year will not help you to get to know the other members of the group. It is at the committee level where the real networking occurs – and it is here that you will develop deeper relationships with other members and where you will realise the association’s true value. DMA members are encouraged to participate meaningfully and to join the various sub-committees/portfolios, since it is at the sub-committee level where much of the delivery takes place and where members can derive tremendous added value and insight. The portfolios include:  Equity transformation  Financial  Legislative/Lobbying/Legal PR  Member Benefit  Education  Marketing  Database  Allied Industry Representation  Editorial  Postal Affairs  Environmental Joining a professional association can be a very powerful tool for growing your business if it is thoughtfully approached and planned. It is also vital to spend some time determining how this strategy fits into your overall business marketing strategy.

Vol 25 No. 3/4 I MarketingMix

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NEWS

Launch date: October 1997 Platform: DStv, Channel 87 Ownership: DStv Programme highlights: O-Boma, Behind the Video, Dance Africa Number of viewers: 1.3 million for DStv (SA only) Target market: Youth: 1324 years old, high LSM across the continent, all races, English and African speaking. Audience results show that a large number of those aged 24-34 also watch the channel Products: Website, Channel O African Music Video Awards Advertising rates: R3 250 prime time, R40 000 for 40 spot package Details: Channel O is aimed at the hip and happening youth market, especially at those who have an interest in the local, African and interna-

tional music markets. Channel O celebrates its 10th anniversary this year. It is broadcast across the continent and imports its programming from all over Africa and around the world. It’s an original concept that remains true to its African roots and is unique in that it’s produced in Africa for Africans by Africans. Programming strategy: New concepts such as Dance Africa are taking the channel closer to its audience. Dance Africa is a Pan-African search for the best freestyle dancers. Their cameras head into nightclubs in SA, Nigeria, Mozambique, Zambia and Kenya in a search for the best. Yolisa Phahle, head of Channel O, says that while the focus is on promoting

African talent, there has also been a quest to bring the best international programming to its discerning audience. “We found Behind the Video, which has been a huge hit so far and we will keep on looking for the right content.” Channel O has managed to create an awareness of African music and musicians and their Music Awards are a highlight on the music calendar. The strength of the brand has also traveled overseas. A new programme launched this month, O Access, sees a Channel O presenter on the red carpet at the Billboard Awards, partying in Jamaica with the Marley’s and interviewing Mary J Blige, John Legend and 50 Cent.

Channel O is now extending the brand and has presenters on Jozi FM for the drive time show on weekdays. “We’re in the process of creating the next generation of young, educated viewers through initiatives such as Jozi FM,” says Phahle. This is a niche channel with an extremely loyal audience. The channel’s next step is to move directly into the lives of its audience and to interact with them through its multiplatform access and through activities and parties. “We are becoming more accessible and are considering Channel O products. For example, we have archive material that could potentially be used for CDs and DVDs, for example,” says Phahle.

NEWS

Research ahead The annual SAMRA conference takes place in May of this year and features an impressive line-up of speakers who will cover a huge variety of research topics. So far the guest speakers include Steuart Pennington (SA-The Good News), Abey Mokgwatsane (VWV) and Liesl Loubser (Hot Dogz Inc). Pennington will focus on the future of South Africa and will include crime, poverty, politics and the economy in his address. Other topics include: Africa, socio-semiotics, women, private spaces, black diamonds and research results. What: 2007 SAMRA Conference Where: Spier Wine Estate When: 24-25 May Website: www.samra.co.za.

Sunday Sondag RCP Media will launch Sondag, a new Afrikaans Sunday newspaper in May 2007. It will be distributed nationwide. Sondag will follow the traditional tabloid format and will be more familyorientated than Son. “Sondag will be a proper tabloid, although it will be sensational rather than sleazy – the page 3 girls won’t be topless. The news will be predominantly personality driven. It will be short, punchy, easy to read, with bigger graphics (including headlines) and photographs. There will be an emphasis on colour,” says Mike Vink, editor, Sondag. There will be plenty of sport in a pullout section that will have a regionalised front page

especially for the Western Cape. “It will complement Rapport and will be a unique Sunday read with many magazine type features,” says Vink. Without revealing its price, RCP states that it will be lower than other

that the majority of its readers (a potential group of 800 000) will be LSM 7 and upwards. Sondag offers advertisers (especially retail) – who would not normally consider the Sunday press – a unique environment, according to

Sunday newspapers. Its initial circulation figures are being kept under wraps. Vink did say however, that we should expect to be surprised. The target market will be Afrikaans speakers who are modern and politically neutral and who have a positive new South African mindset. It is expected

Margarethe Booysen, manager, Trade Marketing, Sprint. Response rather than imagedriven ads will do well. It will be slightly downmarket in relation to Rapport and sleazy/sex ads will remain the domain of Son. Ad rates start from R99 to R156 per column cm for a standard insertion.

NEWS

See BBC

Buddy beat

Get your advertising budget ready for the onslaught of the British within the next two years, when BBC Worldwide will launch five new channels through its BBC Global Channels division. We already have BBC Prime, BBC Food and the news on DStv. The BBC’s ambitious plans will see the launch of BBC Entertainment, CBeebies, BBC Lifestyle, BBC Knowledge and BBC HD. (BBC HD – High Definition – will only be launched when high definition is available in this country.) It is not known which channel will launch first but according to Dean Possenniskie, senior VP, Global Channels EMEA, the launches will be accompanied by the opening of an office in South Africa in the near future. “We will be able to provide increased support for Oracle Airtime Sales and localised marketing and research. We will also take a look at the extra branding opportunities available, such as those represented by the BBC magazines,” he says. According to Possenniskie, once the new channels are established, the BBC will definitely look at local content programming. It promises to investigate the programming that is desired by the South African audience before the channels are launched.

Beat Comics (part of Media24) recently launched Mshana (buddy) magazine aimed at young black urban males aged 16-24 in LSM 4-7. Beat Comics is calling Mshana a hybrid magazine in so far as its readers are found mainly in the townships but live as if they are in the ‘leafy suburbs.’ It’s a lifestyle magazine and a comic book rolled into one, according to Mpho Nkomonde, marketing, Beat Comics, Media24 Family Magazines.

Possenniskie also says that BBC Worldwide is ready to move ahead with digital media and that all programming content is cleared and ready to broadcast on all platforms. The channels:  BBC Entertainment: Features the best of British drama and comedy series  CBeebies: Aimed at kids aged 0-6.  BBC Lifestyle: Six programming strands: Food, Homes & Design, Beauty & Fashion, Real Life, Parenting, Health & Body.  BBC Knowledge: Six programming strands: The World, The Future, People, Business, Crime, The Past. (Features award-wining factual and documentary programming).  BBC HD: The best of the BBC’s high definition programming including dramas and documentaries such as Planet Earth.

The magazine content reflects the three stages the age group is going through: finishing high school, entering higher education and entering the job market. “Our content covers subjects such as how to handle exam stress, getting yourself ahead without university (because you cannot afford it), and writing the perfect CV,” says Nkomonde. Content is split into a number of sections which include: fun stuff (posters, lyrics), entertainment (music, CD reviews, star profiles), comics, issues & inspirations, need to know (life skills, career information) and wins. With an initial print run of 60 000, the monthly magazine is available countrywide from retailers as well as from selected spaza shops in Gauteng – Soweto, Vaal, Kathrous, Pretoria. Any brands wanting to hit this target market now have a readymade vehicle, especially those looking to sample their products in this market. Ad rates start at R8 000 excluding VAT.

Design friends A new digital design school that will cater for advertising students as well as for those from the corporate world has opened its doors in Cape Town. The Friends of the Design Academy of Digital Arts is the digital design training partner for all Red&Yellow art direction students. Two year digital design courses as well as short courses are available for individuals who want to acquire digital design skills.

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Visiting Europeans – video DJs, web artists and multimedia exhibitors – who specialise in various subjects will provide additional expertise. Exchange programmes will be set up with similar training institutions in Germany. The emphasis will be on conceptual thinking and on learning software programs and production techniques.

NEWS

Improving sales promotion performance The Achievement Awards Group is taking sales promotions to the next level with their new end-to-end sales promotion offering. “A sales promotion aims to change consumer behaviour,” says Lawrence Woollam, sales promotions business director, Achievement Awards Group. “We’ve proved ourselves to be very effective at designing and delivering performance improvement programmes that promote long-term behaviour change.” This point illustrates the company’s view of sales promotions as long-term brand building initiatives. “Effective promotions should not only generate a shortterm incentive to buy; they should also change longterm brand perception. Many promotions agencies and clients overlook this opportunity,” says Woollam. So what is the missed opportunity? The short answer, according to Woollam, is the delivery of more prizes to more winners more efficiently. Is this strategy not perhaps overly simplistic? Woollam doesn’t think so. “Word-ofmouth is powerful, so it makes sense that the more winners you have (even if the prizes are modest), the more people you will have talking about what they have won and how they have won it. A company can get a lot more promotional mileage out of giving away 500 microwave ovens over a period of three months, than by giving away one luxury car at the end of a similar period.” It’s a philosophy that is derived from the classic incentives

methodology, which prescribes delivering an immediate reward for desired behaviour. Fulfilment capabilities that allow for fast and efficient prize delivery is a key strength of the Achievement Awards Group. “Fulfilment logistics are challenging,” says Woollam, “but prize delivery closes the loop on the whole prize winning experience, so it’s important to make it smooth and hassle-free. We have the capacity and systems that are required to maintain control over this process.”

NEWS

The right contact Business Process Outsourcing (BPO) and call centres in South Africa – along with those that use these services – can expect a boost shortly, as the draft phase of the South African Business Process Outsourcing and Offshoring (BPO&O) standards have been released. BPO is the process of transferring

an organisation’s recurring non-core business functions to a contracted service provider to achieve operational cost reductions and to improve service quality in a specific noncore functional area. This is an arena that is experiencing tremendous growth across the country. ContactinGauteng, the BPO sector and call centre industry authority and member representative association for the Gauteng Province, has been key in driving these standards. “The industry association, ContactinGauteng, deems it imperative to have the required regulatory structures and processes

Music sales The power of music to harness emotions is undisputed but not many retailers are using in-store music effectively, according to research conducted by DMX Music and Vision One (London). Research carried out in the UK examined the impact of music (with particular reference to sales) in stores. The results showed that when the right music was played, sales definitely increased. Conversely, if the wrong music was played, sales decreased. Ninety per cent of customers stated that they enjoyed in-store music and over half said that it made them extend their visit to the store. However the key to all of this is having music that fits with the brand itself, as well as with the look and feel of the store environment. “As markets become increasingly ‘advertising saturated,’ stores will present a key opportunity to unlock sales. The retailers that will win will be those who understand that in-store branding is a multi-sensory experience and that they should be paying as much attention to the sound of the store as they do to customer service or to the look and feel of the store,” says Craig Cesman, CEO of DMX Music Africa.

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in place to ensure that outsourced business processes (particularly contact centres), operate and deliver a service that is in accordance with acceptable levels of quality. This provides assurance for both local and international markets,” says Keryn House, CEO, ContactinGauteng. The draft set of industry recommended practices are for both outbound and inbound contact centres, as well as for back office processing operations that cater predominantly to all aspects of call centre and BPO operations. The practices are now in the process of being formalised and recognised through Standards South Africa (STANSA), under the South African Bureau of Standards (SABS). They will be available to the industry for a nominal amount of approximately R100 and can be purchased from the SABS. Later this year members of the various regional industry associations will be able to access them via the association. The standards will play a crucial role in minimising the risk of failure among various SME’s and in improving success among established call centres. As a result of the improved alignment of standardised policies and procedures the recommended practices will be of tremendous benefit to companies implementing standards such as higher customer satisfaction, higher levels of staff efficiency, increased revenue and the reduced cost of waste. For more information please go to www.contactingauteng.co.za to read the draft – as well as to the SABS website.

NEWS

Tour de SA South Africa is about to be put on the map – the cycling map. As of this year we will have our own race – the Tour of South Africa – which will form a part of the elite professional cycling calendar. The week long event will begin on 18 November 2007 and will travel around the country. There will be 20 teams of six riders taking part, with no qualifications necessary for the teams that are invited to participate. The route is yet to be finalised but is expected to include the Cape Province, Gauteng and KwaZulu-Natal. With regard to sponsorship opportunities, there will be no headline sponsorship available – The Tour of South Africa will remain as the brand. However, there are many other opportunities for companies that wish to become involved. As Hugh Roberts, chief executive of race organisers, Sweetspot, explains: “This will work on a hierarchy. There are stakeholders such as the tourist boards, towns, cities etc, which can contribute financially if they wish. Next along the line are the suppliers – beer, hotels, accountants, sports media etc – that can provide finances or products. The event will be run ‘in association with’ five or six main sponsors who will have their logos next to the official Tour of South Africa logo. Their names will also appear on signage etc.” Roberts would also like to encourage companies to go for a philanthropic stance by buying bikes for children, creating an awareness of cycling and helping to develop skills etc. A foundation will be established to ensure that surplus income is re-invested in communities around the country.

CK Prahalad in town

Global Leaders in association with SAS Institute South Africa, present Professor C.K. Prahalad, author of The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. Professor Prahalad will be presenting Profitable Strategies for Developing New Markets, which will outline new and effective ways of conducting business in emerging economies.

What: CK Prahalad Where: Gallagher Estate, Johannesburg When: 27 March 2007 Website: www.globalleadersevents.com/prahalad

EXPERT OPINION by richard duncan

Brand o f entrepreneur For marketers, working in an organisation where the founder still plays an active role is both a luxury and a curse. Having worked directly with half a dozen successful entrepreneurs whose interests span the property, retail, FMCG, leisure and travel business across the globe, I feel well placed to comment on the related potential challenges and trials and tribulations. According to my personal experience each one of them has amassed a significant fortune (in several cases amounting to billions of Rands), often at great cost and personal sacrifice. Clearly they have identified the right formula, which they have rigidly applied to build global brands. However, this success is a double edged sword as the same business leaders can fall foul of their drive and become the victims of their very own success. For all the recorded failures, there are of course, many success stories. This should remind us that there is much that big business can learn from entrepreneurs. They are willing to take risks, try new ideas, challenge the status quo and above all else, they care about and believe in what they are doing, selling and making. They ignore internal politics although they may fuel them. They ruthlessly pursue their vision; they are prone to ignoring convention and blazing their own path and they are not afraid of collateral damage along the way. Thus, being able to tap into their knowledge and school of thought is invaluable, providing marketers with a unique weapon that is unmatched by big corporations. It is not often that marketers and junior marketing staff in particular get the chance to learn from modern-day business leaders. Their corporate peers rarely interact beyond the marketing director and certainly don’t get quality time with their CEO or chairman unless they themselves are on the board. An entrepreneur’s real value comes from breaking the rules, identifying a customer need and delivering it with precision and passion and – above all else – never losing the common touch. It is this passion and energy and their often single minded drive and focus that lead to success, although this can also be their undoing. The challenge for each and every one of

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them is to recognise when it is time for their brand to evolve; for conventions to be respected; for the opinions of others to be heard and in most cases, for them to hand over the reins. This has been proven by the likes of Anita Roddick, Richard Branson and Phil Knight. Success comes to those entrepreneurs who manage to imbue their organisations with the same brand fervor that lives in their veins so that the spirit and character of the brand lives on well beyond their mortal lives, as witnessed by the likes of Walt Disney, Ray Kroc and P.T Barnum. For some like Donald Trump, Richard Branson and Kerry Packer the personal brand leads the organisational brand and epitomises what the broader corporation stands for. These entrepreneurs use their own charisma and energy to fuel the PR wagon to further add mystique to the brand and build the company’s profile. The downside of such a high profile leader is the danger of either the impact of an indiscretion on the part of the individual or the lack of a succession plan. Alternatively, the very success of the entrepreneur will be cited by analysts as the reason for the demise of the company share price upon their departure, retirement or death. There are others who prefer a less high profile form of leadership but who are no less passionate or committed. They might even argue that the lack of public attention allows them to be more focused on their business. Either way all entrepreneurs face one common risk – they become estranged and out of touch with their customers as a result of their success and their transition to the penthouse from the garage or the basement. This is what all entrepreneurs will face as their business gains momentum. At best they lose the common touch, not acting on the all-important signs; at worse they become arrogant, aloof and removed from the very people that their success has been built on. They often then retreat to what they know, failing to break from the very conventions that they helped to mould and thus becoming a victim of their own success. If they lack the vision or ability to move the company beyond their glass ceiling, they must relinquish

Richard Branson, Jeff Bezos, Anita Roddick, Phil Knight, Rupert Murdoch, Walt Disney, Michael Dell, Howard Schultz, Charles Schwab, Bill Gates, Sam Walton, Steve Jobs, Donald Trump, Mark Shuttleworth, Ted Turner, Milton Hershey, Martha Stewart, Ray Kroc, Estee Lauder, Louis Mayer, Ross Perot, J. W. Marriot, Scott McNealy, David Packard, Joyce Hall, John. D. Rockefeller, Warren Bechtel, Oprah Winfrey…

the reins to others who can. Those who let go will usually reap the rewards as Richard Branson has, whilst others will fade into obscurity as ‘has-beens’ that are past their sell-bydate. This is no easy feat to ask of any entrepreneur – much like a parent letting their child walk to school for the first time – but we all know that it’s the right thing to do. g

Richard Duncan Sydney, Australia

+61 41 154 9791 [email protected]

by michelle sturman BRAND ANATOMY

– the journey started here Building a brand from scratch isn’t easy; building a brand that will stand up against an entrenched competitor that has held a monopoly for years is even more difficult. Even though the launch of the Second National Operator was big news, for a considerable amount of time the public only knew the company by the acronym SNO. SNO was never an identity; it was more a functional label of convenience that represented the Second National Operator. This label served the need to identify an organisation that had yet to be put together. Once the new organisation had been formally created and its telecommunication license had been issued, it became imperative to create an identity for the company – one that would stand for a stable organisation supported by a strong set of highly respected national and international shareholders rather than for a faceless, nebulous identity. “When we were the SNO we had no identity and our biggest challenge was to efficiently manage the perceptions associated with the time before the actual entity came into being,” says Maneesh Mittal, senior manager, Business Planning, Neotel. The company quickly realised that in order to take on the competition, a brand proposition with a very distinct identity and image was required. “While there were a range of genuine benefits that we believed we were bringing to the South African telecoms environment, it was important for us to understand what our various stakeholders really wanted before we defined our brand promise and built our brand around this uniqueness,” says Mittal.

Creating a new identity In order to craft an identity the company sought the expertise of Enterprise. The creation of the brand followed four distinct stages:

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 A holistic overview of both the global and South African environments was undertaken  The analysis phase investigated the telecoms industry and the company’s role in evolving this industry  The creative phase dealt with the development of the actual identity and included a new name, logo and colour choice  The applications and implementation phase defined the visual language that would be associated with the new identity, in addition to the creation of its various applications. This phase ended with the launch of the new identity on 31 August 2006 The whole process was initiated by the definition of the brand attributes in order to create brand relevance. Major research was undertaken to investigate the competitive landscape, the impact of liberalisation, market expectations and the future needs of the industry within a local context. Case studies from around the world were also scrutinised in order to identify best practice and implementation scenarios. Many facets were brought to light in the course of this research. One of these was that although the technical competence and superiority of the company was an important expectation, this could not be the only differentiating factor. It would be critical to package the technology in a consumerfriendly language. “What was heartening was to note how closely aligned the market expectations were with the plans of the shareholders and the management. An identity soaked in reality really had a chance of cutting through the clutter of established brands in the market,” says Mittal.

The elements for a new brand Based on the outcome of the research, man-

agement workshops and key personnel interviews, various elements that had the potential for differentiating the company from the competition were identified. These elements were also classified based on the category of connection that they represented for the stakeholders:  The application of technology that was appropriate to consumer requirements without expecting customers to understand the technology itself – a physical characteristic that inherently offered customers products & services that were better suited to their needs  A superior quality of service – a functional attribute – leveraging the global best practices available from the company’s international shareholders, ensuring an uncomplicated, reliable & responsive experience for the customer  A fresh approach for South Africa with the introduction of innovative, world-class products and services that are designed around the customer’s need for and usage of telecoms, delivering tomorrow’s products today  Continuous and meaningful engagement with stakeholders to ensure ongoing feedback and understanding in a dynamic and competitive environment, allowing the company to create an emotional connection  Creating opportunities for stakeholders, enabling them to unshackle their limitations and move forward freely in a connected environment. The next stage of the discussion was to marry two vital aspects of the business – what Neotel wanted to be in the market and what the market (and the customer) wanted Neotel to be. Using the elements identified above and matching them with the various expectations in the market, the attributes of ‘Open, Unwavering, Genuine and Enterprising’ were evolved. These were decided upon as the

BRAND ANATOMY

foundation of the company’s branding. Mittal elaborates: “We needed to convert the attributes that had been identified by the detailed process into an internal brand positioning statement; something crisp and concise with the potential for motivating our employees to live up to and deliver on the essence of the brand.” After much brainstorming around the initial terminology, the final positioning statement was developed as: ‘a responsive communications partner that inspires possibility because of its fresh, pragmatic approach using leadingedge technology.’

ing something new,’ was self-evident. However another, more subtle translation of Neotel is to be found in numerous South African languages (chiefly Sotho) in which the word ‘Neo’ means gift, giving the new identity an even greater symbolic value.

Logo and colour The next step in the process was the designing of the logo. “A logo has to be very strong and needs to provide an emotional connection,” says Swart. The core concept for the logo was quickly decided upon using the agreed brand attributes. The actual design took much longer. The concept of Neotel as a connector, bringing together people, places, things and concepts, was powerful. This was the genesis of the two dots and the curved line that connected them, forming the foundation of the logo. The need to represent dynamism and a positive flow of energy allowed for the creative application of the ‘N’ of Neotel, while also providing an

Brand name and architecture The decision regarding the brand architecture was relatively straightforward. A monolithic brand architecture was selected to keep brand awareness simple. It is after all, easier to entrench one brand name rather than several, especially with a newly established brand. The selection of a name, on the other hand, was a much more drawn out and emotive process. “Numerous names were recommended by people that were directly associated with the SNO during its early stages. EIG added to this list through an extensive brainstorming session which resulted in a first list of over 600 names,” says Anthony Swart, CEO, Enterprise IG. Multiple rounds of short-listing narrowed this list down to 26 names. These were deemed to have the potential to stand for the brand essence and attributes that had been established for the company. A local and international dip-stick survey was undertaken to check the external perceptions related to these names, including the examination of their interpretation in different languages as well as their usage and appropriateness in different contexts. The one name that stood out throughout the process was validated by the research. It also withstood the scrutiny of checks that were undertaken for trademark registration and usage. The name Neotel was therefore adopted as the new identity for the SNO. The Greek origin of the name, ‘represent-

opportunity for the logo to offer a more literal interpretation. Various refinements, such as the variation in size of the two dots which added greater depth and impact, resulted in the final form of the logo. The next decision was the selection of a colour that represented the new identity. A comparative analysis of the colour environment in telecom was carried out by Enterprise IG to identify a differentiating colour positioning which would also potentially reflect the desired brand attributes of Neotel. As a result of this elaborate analysis which included a study of colour psychology, orange was selected as the primary colour for Neotel. Says Mittal: “Orange is a colour strongly associated with South Africa, identifying the exuberance of the country’s sunset, its national flower and even its national product – gold. To Neotel the colour represents the satisfaction of a day’s endeavors, the promise of a new tomorrow and the warmth of an optimistic future.”

With the name, logo and colour finalised, the most difficult aspects of the creation of an identity were complete. However they still needed to harness this design in a visual language that would always be identified with Neotel. Various innovations – the creation of a starburst background and an energy vector, both representing the explosive flow of positive energy associated with Neotel – were developed.

Implementation, introduction and evolution Although the new brand had been developed fairly early in the life of Neotel, a conscious decision was made by the management not to launch the new identity until it supported tangible telecoms services. “A brand needs to have legs to stand on. Launching a new brand without having any services that would live up to the imagery created by the brand, was against the very principles that Neotel stands for. It was therefore not a very difficult decision to introduce Neotel to the world only when we introduced our services. It was a risk in that keeping this exciting news contained within a small set of people for any length of time was difficult. However we managed quite well; the secret did not leak out in the months that preceded the launch,” says Mittal. Even before the brand was launched to the whole world, the management wanted to share the new identity with one of their most valuable assets – the internal team. An extensive internal brand-building program was developed and implemented to introduce the brand to employees. The HR team at Neotel is a part of the brand management initiative. They ensure that the brand attributes are ingrained in the very soul of the organisation, rather than being an external behaviour-changing force that is applied to employees. The launch of Neotel into the market on the 31 August 2006 coincided with the introduction of Neotel’s wholesale international services. “Although we derived more than R20m worth of publicity from the coverage of the launch event, we believe that the success of this identity will lie in the off-take of our services by the various customer segments to whom we will introduce our products and services over a period of time,” says Mittal. According to Swart, although the front end visuals and brand positioning have begun, it is brand evolvement that keeps the brand alive. Enterprise IG’s involvement with Neotel will continue. g

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by helen mcintee EXPERT OPINION

Glocalisation – is it possible? When I was at business school in the early nineties I came across the term ‘glocalisation’ – a combination of ‘globalisation’ and ‘localisation.’ It means the ability to ‘think globally and act locally’ and it was bandied around for some time before being replaced by other terms and initiatives. As we all strive to become more and more successful in the global arena, it seems that ‘glocalisation’ has returned to our business vocabulary. While turning the whole concept over in my mind and doing some Internet research, I made two simple deductions: ‘local’ in South Africa is not easy to define and glocalisation doesn’t seem to mean what it did before. ‘Local is lekker.’ While we as marketers are constantly striving to find commonalities within segments so that we can develop our marketing strategies appropriately, the challenges of defining ‘local’ are immense. If we were to attempt to define the ‘average’ along a continuum in South Africa, it would fall at both extremes and have millions of points in between. Consider the fact that we have nine official languages, that we recognise all possible religions and that we possess huge cultural and ethnic diversity. South Africa has mountains, beaches, deserts, marshlands, bushveld and snow; the very rural and the densely metropolitan. We have floods or drought (or both) as well as feast and famine. Amongst our population the exceptionally wealthy live alongside the disastrously poor; the highly educated mingle with the illiterate. We have high technology in certain areas and no technology in others and of course South Africans can and do play every conceivable sport and enjoy every possible type of pastime. There is – at least for the moment – no South Africanism, no national dress and no encompassing culture. We are a melting pot of diversity. However the new glocalisation may remedy this. Wikipedia states that glocalisation entails one or both of the following:  The creation or distribution of products or services intended for a global or transregional market but customised to suit local laws or culture  The use of electronic communications technologies such as the Internet to provide local services on a global or transregional basis. Craigslist and Meet up are

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“

The glocalisation strategy entails a shift in the international system, from a framework based on a balance of power between nation states, to a balance of cultural interests and local needs with global opportunities, always taking into account the importance of local actors as agents of change.

”

examples of websites that have glocalised their approach. My own personal favourite is from the Cambridge Review of International Affairs Volume 17, No.1 April 2004: ‘Glocalisation refers to the twin process

whereby, firstly, institutional/regulatory arrangements shift from the national scale both upwards to supra-national or global scales and downwards to the scale of the individual body or to local, urban or regional configurations and, secondly, economical activities and interfirm networks are becoming simultaneously more localised and regionalised and transnational… the pre-eminence of the ‘global’ in much of the literature and political rhetoric obfuscates, marginalises and silences an intense and ongoing socio-spatial struggle in which the reconfiguration of the spatial scales is a key arena…’ WHAT ON EARTH? The one I like best – and given our current economic status in South Africa, the one that I believe fits us best – is this one by The Glocal Forum: ‘The glocalisation strategy entails a shift in the international system, from a framework based on a balance of power between nation states, to a balance of cultural interests and local needs with global opportunities, always taking into account the importance of local actors as agents of change. The glocalisation strategy empowers local communities, linking them to global resources and knowledge while facilitating initiatives for peace and development.’ (www.glocalforum.org) Based on this definition, it would appear that instead of ‘thinking globally and acting locally,’ glocalisation has developed into an initiative worth embracing in South Africa – maybe one that will truly enable the development of a genuine South African ‘local’ that is capable of successfully doing business globally. Fifteen years after first hearing the word, I am strongly of the opinion that perhaps a better definition of glocalisation is ‘local thinking with global relevance.’ It makes sense to me that we use our global interactions and business dealings to improve our local economic structure, whilst at the same time accepting our South Africa of extremes and revelling in it. g

Helen McIntee director, IMM Graduate School of Marketing (011) 628 2038 [email protected]

7 DAY [B]ITCH

Joy Turnbull, deputy MD, Net#work BBDO

01/02/07 So it’s the start of the second month of this year – hectic! My morning is just that. I can’t sleep so I wake up at 4am, go to a spinning class to clear my head and have meetings with my landlord and domestic worker, who is also fondly known as ‘my Porsche.’ Work begins at 8.30am and it’s my usual back-to-back meeting day, although this one is very productive. Meet a new client – awesome project! Present fabulous creative work to one of our longest standing clients and they love it. Have status – with an inspiring client. I also start the production process on a new campaign with a dear client. Now I am off to a supper club thingy-ma-jig to drink wine with a whole bunch of girl friends (which also has a fond name in my vocab that shall stay between me and the wine!)

02/02/07 Friday – possibly the best day of the week. You know it’s almost the weekend… although surely Saturday or Sunday should be the best day(s) of the week? Perhaps it’s because you feel that it will be a slightly more chilled day when compared to the mayhem of the past four. Every Friday I begin with a client breakfast at 7.30am. I have to ‘bribe’ my team members to attend as 7.30am is a tad early for my crew. This morning is great and I have yummy scrambled eggs on toast. My day is slightly uneventful which means that all should be happy. I am off tonight to watch the Lions play the Warratha’s at Ellis Park – good South African fun!

the longest day of the week. After that we are A-for-away. I interviewed someone today – so hold thumbs for her. I have a team building constructive feedback session with one account team to try and help them to achieve what they need to with the least amount of hassle. To end off my day I go with a colleague (who I admire greatly) to debrief a digital company that I admire greatly on our # website. It’s going to be so awesome that everyone will be using it – everyday! Here’s to creativity – and to my best TV night ever. Two And A Half Men, followed by Will and Grace, ending with CSI Las Vegas. (My SABC 3 client has great Monday nights.)

Here’s to creativity – and to my best TV night

06/02/07

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ever. Two And A Half Men, followed by Will

and Grace, ending with CSI Las Vegas.

03/02/07

”

My Saturdays are generally spent doing shopping; personal grooming; shopping; chores; more shopping and seeing my fabulous friends. Today is no different – hair dresser; shopping; getting quotes to do maintenance on my deck at home and lunch at Bellini’s with my mates. It’s an absolutely stunning day, ending with a friend’s birthday party.

04/02/07 Sundays are family days; special, soulful, rejuvenating days. Love them stacks.

05/02/07 The first day of the week is always about planning for the week ahead. We plan everything during the day in a series of meetings. Seems to be

I start my day beautifully with a Vida coffee to go. Yum. Have a day full of internal meetings, making sure that we get the best creative out for our clients. I love the days when I work with creative minds. We have such challenger brands within their respective categories that we get to develop breakthrough work, which is very rewarding. Also interviewed another two people – so hold thumbs again. (Yesterday’s chick has been accepted). My day ends with dinner at the Codfather with two of my close friends. Life is never too short to have a good long catch-up with your mates.

07/02/07 Woke up to beautiful weather that has now turned quite sh#@&y. Today I hope to sell a really innovative idea to one of our clients; something that is not traditional above-the-line, which is great. We are always trying new ways (they don’t always need to be ads) to connect with our consumers. We meet to discuss our potential new client. Lots to do – will keep me busy and challenged. It’s very motivating to learn about what new industries do and how they do it – good marketing lessons. I am off to a friend’s house warming tonight… love to see new spaces and the positive energy that they create. g

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by fulvia becatti PRODUCT PLACEMENT

Insert your brand here In the 1982 film, E.T the Extra Terrestrial, Hersheys’s new product, Reese’s Pieces® featured as the endearing alien’s food of choice (Mars chocolate’s M&M’s had turned down the role). Sales of Reese’s Pieces soared by between 65 and 80 per cent and some would say that this was the first recognisable product placement. As such it paved the way for brands like PepsiCo, Converse, Apple and even Wonder Bread to leverage the marriage between entertainment, Hollywood stars and brands. Today even comics – including the giant Marvel and DC – are exploiting product placement. In the realm of film we can find examples of product placement as far back as the 1930s. In the 1938 film It Happened One Night, Clark Gable took off his white undershirt – and the sales of these white undershirts plummeted in the US. They only recovered during the 50s when James Dean re-popularised them, reports www.itvx.com. In the 1950’s programming in the area of TV and radio was usually sponsored by soap manufacturers – hence the name ‘soap opera. Present day product placement and branded entertainment are offering brands the opportunity to become a part of entertainment in a way that boosts brand recognition and maybe even sales. What differentiates branded entertainment from product placement? The latter involves connecting a brand to content/programming through a direct sponsorship (for example, think Coca Cola Popstars or Survivor SA and iBurst). “In the case of advertiser funded entertainment, the client pays for the entire production and is basically showcasing their brand,” says Virginia Hollis, joint MD, The MediaShop. Budweiser has taken branded entertainment to the next level with the creation of Bud.TV (www.bud.tv), an advertiser owned-and-operated network on the Internet. It features innovative programmes, moviemaking competitions and various Budweiser advertisements. Critics however complain that Bud.TV locks down its content rather than making it

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PRODUCT PLACEMENT

shareable and they predict that this will be to its detriment. Branded entertainment does well for brands on local TV, given the wide reach of the medium. “Branded entertainment is far more obvious than product placement and achieves the objective of establishing high brand awareness over a short period of time,” says Jedd Cokayne, media director, Joe Public. According to Henry Meyer, project manager, Oracle Airtime Sales, client produced entertainment which is offered to networks at no cost is becoming increasingly popular (and a major plus for producers who have tight budgets). Considering that most channels buy and confirm shows (and therefore also sponsors) months in advance, it represents a way for brands to get their branded content on air. Meyer points to the Bacardi Summerfest projects (Bacardi branded concerts and live shows that are held around the globe), which are filmed and produced by Bacardi and then distributed to major TV networks and channels for airing. However, Hollis insists that if an advertiser funded programme is seen to be a blatant sell rather than audience entertainment, it is possible that the broadcasting station will make the advertiser pay for the exposure time. “Product placement is more subtle,” she says. Product placement involves incorporating a brand or product into the plot, script or scene and may or may not be directly referred to (think Converse shoes in the film I, Robot or the Apple MacBook laptop that appears on the desk of your favourite TV character). Therefore, product placement is the result of the inadvertent positioning of a brand (for example, the producer or set designer happens to use a particular softdrink in a scene) which can be either paid for or bartered. As audiences are paying less and less attention to the traditional ad-spot, product placement is a way to reach into the consumer’s mind, especially since it is not contained within the traditional ad break, and therefore cannot be skipped with PVR, as Lungile Nkosi, sponsorship project manager, SABC Airtime Sales, points out. “There is no real difference between product placement and a commercial – they are both a means to an end. In the cluttered environment of the commercial break, you will sometimes have two or three commercials that advertise the same thing (think cars, for example). For this

reason an increasing number of clients are requesting something different; something that breaks through the clutter and that does more than just show product and price,” says Meyer. Hollis says that since ICASA cut the SABC’s available commercial airtime, product placements have emerged as a viable means for them to boost billing without affecting commercial sales. “The trading of airtime as it evolves to overnight ratings will see advertisers viewing product placement as a means of getting a guaranteed slot within a particular programme,” says Nkosi. When product placements are incorporated artfully, they certainly deliver results (as

Hersheys discovered). “Although the brand is noticed and recognised, it is in a positive environment which often the consumer can identify with, so entrenching an affinity with the brand,” says Nkosi. The Nielsen Media Research 2006 US Product Placement Valuation Study found that 57.7 per cent of viewers who were tested recognised a brand when viewing a product placement in combination with an advertisement. Says Meyer: “In order to do it successfully, you almost have to sandwich your product placement. You need to do the product placement and brand awareness inside the programme and then highlight your product again in the commercial, so that the commercial and the product placement enhance each other.” Product placements were found to be at least as effective as a commercial spot in improving the consumer’s general attitude towards a brand. (Almost 60 per cent of all Nielsen’s respondents felt more positive about the brands that they were able to recognise in product placements.) Factors that have an impact on brand awareness, attitude and purchase interest, include (amongst others) the viewer’s familiarity with the brand, the genre of the programme as well as the viewer’s loyalty to said programme. For the producers of content, the focus is on creating programming that entertains and compels the viewer. “Product placement enhances the production value for the producers of content,” says Meyer. Production budgets (such as those of Idols) often do not allow for wardrobe changes or for really exciting prizes (like some of those featured in Survivor SA). This is where product placements come in – they not only make the content more appealing to audiences; they also lend the programming real-world credibility. The possibility also exists for a brand to be inadvertently associated with a negative. An interesting case in point, and one wich has been discussed across many websites concerns the legal battle between the USA’s NBC network and the Emerson Electric company. The NBC series Heroes shows a character that demonstrates the power of her indestructibility by sticking her hand into the garbage disposal unit of her kitchen sink. Her hand is badly injured but within a few seconds it has healed. The brand name of the garbage – disposal unit is visible in the scene. Emerson Electric sued NBC Universal over the inadvertent product placement (which Emerson Electric

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PRODUCT PLACEMENT

claims, casts the product in an unsavoury and damaging light). Meyer says that while it is never the intention of the producer to show a product in a negative light, it is possible for scenes and situations to be misconstrued. He recalls an episode of a local soapy in which some of the characters became tipsy on a sponsored brand – as a result the liquor brand cancelled its placement deal. Brand managers and marketers who don’t understand that a brand’s placement within the programming cannot be forced are also to blame for placements that go wrong. The placement has to appear seamless and should resemble real life as much as possible; it should also enhance the action of the programming. “The placement is critical. It cannot be overly obvious or – by the same token – hidden under something,” says Hollis.

“

placement. Says Meyer: “Few countries can really do [product placement]. In countries such as the UK for example, product placement is governed more strictly. We’re lucky that we are allowed to use branded products in product placements.” Our local soaps and drama series lend themselves well to product placements. Their plots are ever-changing and ongoing, so it is relatively easy to integrate a product or to create a story around a brand. However, in spite of this, we seem to see little product placement outside of local reality shows, drama series and soapies. “I don’t think we have the pricing right in South Africa. There is also quite a tussle between station and producer as to who should be selling product placement,” says Hollis. Cokayne echoes this: “Working out the total financial benefit of the exposure is

Campaigns are becoming more consumer centric and consumers are now driving ‘how and when’ they would like to consume the media. Marketers should be moving towards creating their own content and investigating mediums that can do this for them. – Henry Meyer, Oracle Airtime Sales

”

Meyer says that he sometimes has to remind marketers that one does not include all the product specifications in a normal conversation. You don’t tell your friends that you have purchased a new Nokia 3250 Xpress Music phone – you simply state that you’ve purchased a new Nokia. “The golden rule is: If you take the brand away from the product, does the storyline still exist on its own? If not, we don’t accept the placement,” says Meyer. He says that the most successful placements are achieved when marketers ‘let go’ and allow the script writers to incorporate the brand in a way that will work for the brand, the programme and the audience. “We have on occasion also approached brands and asked them to share some of their real-life consumer experiences with us. For example, we ask a brand’s call-centre to give us five reallife calls that are funny or dramatic and we then re-write them into the script,” says Meyer. In the US product placement and branded entertainment are both common and legal. The rules in the EU are relaxing and they should soon start seeing more product

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always a bone of contention. Figures are often over inflated to make the proposal look more viable,” he says. Hollis also suggests that there is a disconnect between producers and media buyers or marketers. As a result, media buyers and marketers are left in the dark about new local productions and the opportunities that they hold. “On occasion we receive calls at the eleventh hour with offers of opportunities and at that stage it is sometimes not possible to find the budget,” she says. For Cokayne however, the low incidence of product placement also has to do with the fact that traditional media campaigns are still reaching the target markets that they are intended for, although he believes that this will change as marketers seek out more innovative means of reaching consumers. “Campaigns are becoming more consumer centric and consumers are now driving ‘how and when’ they would like to consume the media. Marketers should be moving towards creating their own content and investigating mediums that can do this for them,” he says. g

by fulvia becatti NEW MEDIA

New toys: new media, new marketing The proliferation of new media (RSS feeds, podcasts, blogs and mobile, gaming, social networking websites and the PVR, amongst others) is shaking up the world. While some of these media must be downloaded from the Internet, they do not fall into the same category as online media (company websites, online advertising, e-mail, etc). “New media and the Internet represent a bigger cultural change in terms of the depth and breadth of their impact on society, than the invention of the printing press. The divide between those who can and can’t use them is no different to the divide between people who can and can’t use the printed word,” says Vincent Maher, strategist for the Mail & Guardian Online. Sue Disler, head, Digital Integration, FCB Cape Town believes as our local marketers and their clients become more educated and as media budgets grow, so new media becomes more mainstream.” Marketers may find that these new media offer measurability, improved customer relations and ROI as well as better targeting. In most cases they also allow the consumer to opt out with ease. “While they can also enhance brand building, messaging does need to be tweaked to entice consumers to opt in,” says Sue Rooney, Pan African media director, Universal McCann. Gordon Patterson, MD, Starcom, believes that local marketers need to look at new media opportunities pragmatically. “There are a few who are embracing the technology. I believe that media owners have a huge responsibility with regard to producing solutions rather than merely producing technology (which is often the case),” says Patterson. The good news is that even though traditional mass media dominate (by virtue of their reach and mass audiences), the inevitable increase in the number of experienced online users will drive the growth of new media adoption. Arthur Goldstuck, MD, World Wide Worx, points out that members of

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the online community will evolve a very strong online presence and that they will become regular users of blogs, social networks and online communities as they become more experienced with these media. This Internet-connected population, albeit small, is a desirable market. “Demographically they have money to spend by default, due to the fact that they have broadband at home,” says Disler. According to Matthew Buckland, publisher, Mail & Guardian Online, as new media business models evolve it will become easier to monetise them (develop fee structures, generate revenues, measure ROI etc). Social networking sites (such as YouTube) are experimenting with new business models and

are paving the way for new media business by charging a fee for access to content and sharing the revenues with content creators.

blogs The blog (or weblog) is a user-generated website which comprises journal-like entries (including photographs, links, videos, music and text). The Blog search engine, Technorati, stated in its April 2006 State of the Blogosphere report that 70 000 new blogs are created each day, while the universe of blogs doubles in size every six months. More than 1.2 million blogs are posted each day. “Nothing is a secret anymore and if consumers want information about a brand

NEW MEDIA

or product they simply find a forum of people who have already used it to help them draw their own conclusions. Word of mouth (or word of blog) marketing will be what causes brands to sink or swim in the future,” says Alex van Tonder, Kickass-Blogging-CopywriterStategist-and-all-round-Cool-Person, Instant Grass Jozi Office. However, marketers are warned that ‘flogs’ (fake blogs) can destroy a brand through what van Tonder calls badvertising – consumers don’t like being duped. “Masking these ‘flogs’ as public sites is detrimental to product and client – not worth it – but then again, any publicity is good. The trick is to do it cleverly,” says Disler. Marketers should also keep in mind that the Internet is the home of free speech. As Rooney puts it: “Any brand, whether it embraces the online marketing opportunity or not, is subject to unwanted publicity online.”

cost effective means of sharing content with audiences. “The level of adoption is incredibly high and is a sign of its success as a standard,” says Maher. RSS feeds can boost traffic to websites by virtue of the fact that they offer a teaser headline or blurb that drives the consumer to the website. “This means that readers now track many more web sites than they used to and that they select articles based on what they find most interesting,” says Maher. RSS feeds are evolving and specialist companies (such as Pheedo in California) have now developed the means to send out feed powered ads that will enable marketers to use video, text and even social media to engage consumers. These ads are easily launched and tracked and are updated (rather than re-created).

Newspapers offering RSS feeds: Cool blogs  Die Burger www.dieburger.com/pages/blogs  Mail & Guardian Online www.blogmark.co.za  Marketing Mix www.mmixsa.blogspot.com  5FM www.5fm.co.za/blogJockeys  The Harbinger: Anton Herber Bites the Hand That Feeds www.big.co.za/wordpress  Jo’blog www.joblog.co.za  Dave Duart: marketing geek, http://daveduart.co.za

Die Beeld Cape Argus Cape Times The Citizen Daily News The Herald Isolezwe The Mercury Pretoria News The Star Mail & Guardian The Post Independent on Saturday Sunday Independent Sunday Times Sunday Tribune

Wikis: SA Blog Awards 2007: Winners will be announced at a ceremony on Friday 30 March 2007. Visit http://2007.sablogawards.com for more information.

RSS Feeds: RSS (Real Simple Syndication or Rich Site Summary) is a web feed message that is used to publish frequently updated content such as blogs, podcasts and news feeds. It has become very popular as an alternative and

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A wiki is a free, open source web page that is written and edited collaboratively by the community that engages it. “Companies are using wikis as knowledge management tools to great effect. We even use a wiki to organise our monthly industry social event,” says Mike Stopforth, MD, Cerebra (a local specialist social media consultancy). The most widely known wiki is Wikipedia, the world’s first free, open source multilingual encyclopaedia. Despite criticism about the accuracy and accountability of its entries, it is hugely successful. (It currently holds over six million articles in more than 250 languages).

Mobile media: Whereas it appears that the Internet is driving new media forward abroad, on the local front it is mobile that holds the most promise. According to Greg Stewart, publisher, The Citizen, cellphones are accessible across the LSMs and daily data downloads are affordable. “South Africa currently has around 32 million active cell phone users. The biggest growth in the use of cellphones over the last 10 years (1995 to 2005) has taken place in the LSM 4 to 6 market (AMPS 2006),” says Shawn Katz, brand manager, Castle Lite, SAB. He adds that research has shown that the biggest cellphone usage in the country relates to the sending and receiving of SMS’s. Bluetooth marketing has also taken off, thanks to the number of Bluetooth enabled mobile phones in the market and to the novelty of the technology. “Brand marketers are now instantly able to ‘touch’ consumers in a more direct and personal way via a rarely switched off mobile device that has an emotional value for its owner,” says Gordon Parkin, MD, Brandscape Marketing. He emphasises that the value lies in the content as well the delivery mechanism. Wireless Customer Interactive Technologies (WCIT) has established more than 50 Bluetooth sites locally (including Fourways and Gateway malls, amongst others). According to their data, they had 200 000+ accepted messages (downloads) between August 2005 and December 2006; they detected over three million devices. They found that average retention of downloaded content is in excess of 14 days; downloaders are the higher income groups, aged between 18 and 45 years, usually contract cellphone holders. There are two types of Bluetooth marketing: broadcasting and near-field. The former is intrusive, while the latter requires an opt-in from the consumer and is therefore more in line with the pending legislation in the Data Privacy Act. Cellphones hold the potential to grow the number of Internet connected consumers locally. “In fact, the number of people in SA who could get connected to the Internet today could double if everyone with a phone started using it for data. The growth of MXIT is testimony to the size of the potential audience out there,” says Maher. Success and growth are simply a matter of finding out

NEW MEDIA

what people want in terms of content. Mobizines are defined as bite-sized magazines and newspapers that are downloaded to one’s mobile via WAP or Java technology. Atoll Media were the first media company to introduce mobizines to the market. They now have more than 62 000 subscribers. According to MD, Craig Sims, Atoll Media, they have learned that the crux of the matter is finding content that uniquely suits the application. While mobizines are ideal for extending the print media offering, radio and TV get more out of mobile TV and mobile Internet.

mobile channels presented an opportunity for the creation of new audiences and for the natural expansion of content distribution to customers,” says a Vodacom spokesperson. He adds that the positive uptake of the mobile TV service suggests that customers enjoy it and find it valuable and that they are likely to explore more mobile content once they realise that it’s easy to use. Video programming entered the local market amid a lot of excitement. Currently both Vodacom’s Vodafone live! and MTN offer mobile TV. The question is, will it take off? Till believes that although this market is still

Online communities and social networks:

small, it will expand. “In tests done in the UK, they’ve shown that users are more likely to listen to the radio on a mobile phone than to watch TV,” says Till (referring to the Radio Advertising Bureau’s research). “Obviously these patterns will evolve as content (both video and audio) increases.” Mobile TV (DVB-H) – entered the local market last year. “We are still in trial mode, but what has launched commercially in SA are DVB-H enabled handsets. So the technology has launched but not yet the commercial content offering,” says Linda Vermaas, CEO, MMobile. She says that local research carried out amongst field trialists indicated a strong affinity with the product. “It is unlikely to replace TV in the home, but there is a definite need for TV on the move,” says Vermaas. Till believes that radio may stand to benefit more from mobile technology than TV: he refers to research carried out by the UK’s Radio Advertising Bureau, which indicates that users are more likely to listen to the radio on a mobile phone than watch TV.

new media consultant. Consumers are becoming a part of brand communication strategies and processes. “MySpace definitely holds potential for brands who wish to use it to reach their markets. However it must be said that nobody appreciates unwanted advertising and if brands are going to use MySpace, they need to understand the environment,” says van Tonder. Platforms like MySpace offer the opportunity to reveal the brand’s more personal side as well as a behind-the-scenes perspective (local bands Mono and The Bang, amongst others have their own mySpace pages). These social platforms may not be a passing fad and they will continue to evolve. “It seems to me that there will always be a role for innovation in this space,” says Stewart. Check out www.myvideo.co.za (launched in January 2007) for a video sharing platform with local flavour. “We have around 250 signed members and about 5000 unique users so far. We do not currently share revenue but are looking into various revenue sharing models for content creators,” says Rowan Polovin. CEO, MyVideo.

Online communities and social networks (think MySpace and YouTube) were hot topics at the recent World Economic Forum. These media have proved their potential to generate huge revenues. “Social media introduce a unique aspect to a company’s communication strategy. Whereas a company once governed what was said about its brand, users are now becoming the creators and distributors of media (unlike the passive audience of traditional media),” says Gino Cosme, an independent eMarketing and

Who’s offering mobizines: Cape Argus Cape Times Daily News Isolezwe The Mercury Pretoria News The Star Mail & Guardian The Post Independent on Saturday Sunday Independent Sunday Times Sunday Tribune Blunt Saltwater Girl 2 Hip2B SA Paddler Shape Men’s Health Bicycling SA Sports Illustrated SA Kickoff Seventeen Car magazine

Mobisodes are short TV episodes which are made for viewing on a mobile telephone screen. They represent a new way for content producers to generate revenues and widen audiences. On the local front Vodacom launched mobisodes for the programmes 7de Laan and Twac (in December 2006). These are available to users with a Vodafone live! 3G cell phone at a cost of R5 per daily episode or R10 per week. A new mobisode (that runs concurrently with the evening episode) is available for downloading every day. “Due to the extensive cellphone penetration in South Africa,

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NEW MEDIA

Social media: the numbers

Podcasts:

Cool podcasts:

100 million videos downloaded each day from YouTube. 107 million MySpace members (Technorati September 2006). 15 million registered Facebook users. 16 million unique visitors to MetaCafe each month (comScore Media Metrix). 37 million Friendster.com members.

A podcast is a media file that is distributed by means of syndication feeds (including RSS) and subsequently played back on PCs and mobile devices (iPods, enabled mobile phones, etc). Initially podcasts were predominantly used by radio stations to distribute and share audio files. Today podcasting is being used by all media and the average Joe is able to create a podcast by using a PC. “Listeners are taking more control of how and when they’d like to listen to some of our content. As we know this is a worldwide trend. If anything, we’re a little behind the curve in SA,” says Till. The increasing number of local radio shows (5FM, 702 Talk Radio and 94.7 Highveld Stereo) that are currently offered in podcast format are driving this growth and it’s expected that many more stations will follow. The move towards digital music devices that automatically synchronise audio and video are also driving growth, according to Bryan Poggo, manager, Podcity (a local company which creates, manages and markets podcasts). Till says that podcasts are still very niche at this point and that they simply serve to extend the station’s live offering and its relationship with listeners: “I cannot comment on any improved loyalty or change in the listener base. It is still too early to see any such effects,” he says. Nonetheless, they have had success with advertisers who combine above-the-line campaigns with interactive offerings in the digital space. While bandwidth costs have an impact on the returns that advertisers generate through podcasting, sponsorship of podcasts remains an affordable option (consumers only pay for truly compelling content). Watch out for cellphone podcasting – it is set to be the next big thing. There are several local online podcast directories that allow users to download free podcasts, create their own and vote on their favourites. These include Podfarm (www.podfarm.co.za) and Podcast SA (www.podcast.co.za). In addition, Cerebra offers amplitude podcasts that are targeted at marketers and focused on new media. Although SA does not have its own iTunes store meaning you can’t pay for and download content, some podcasts are available for free.

Mail & Guardian Jou Ma Se News (available from www.kungfone.co.za) Sunday Times The Next Big Thing (www.nextbigthing.co.za) The Citizen Toast Fantastic (www.toastfantastic.co.za) Cerebra Amplitude (www.amplitude.co.za)

Gaming: While computer games used to be the domain of the male computer geek, today they reach an audience that far exceeds the young male demographic. “The fourth most visited website in the US is pogo.com – a gaming site that is aimed squarely at the 35 year old plus female gamer,” says Matt Avery, CEO B.I.G (Brands In Gaming) – a UK based marketing consultancy focusing on the interface between brands and gaming. B.I.G believes that gaming truly allows consumers to interact with brands and that this is the fastest growing entertainment medium. “Games are reaching an audience for whom the 30 second TV commercial and other traditional advertising media are irrelevant,” says Avery. Marketers abroad are taking notice of the MMOG (Massively Multiplayer Online Game) or the MMORPG (Massively Multiplayer Online Role-Playing Game). These involve thousands of players that interact in virtual worlds online. “They offer massive virtual communities that are set up with the infrastructure to accommodate brands just as they are in the real world,” says Avery. Linden Labs’ Second Life (www.secondlife.com) metaverse – an online virtual community in which residents can interact, play, do business, etc – reported that it had more than three and a half million residents at the time of writing. They also reported that over US$1 million had been spent in the preceding 24 hours. Brands that have already established themselves within Second Life include: Adidas, BBC Radio 1, Leo Burnett, Reebok, Reuters, CNET, Dell, Duran Duran and Wired Magazine (amongst others). The Swedish Foreign Ministry has even established a virtual embassy in the game, according to Fox News online (29 January 2007). “The softer brand options that are available to advertisers (eg logo inclusion in games such as Second Life), are more difficult to track online and to provide ROI data for,” says Rooney.

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TV/Video Online: In the US, 100 million US adult Internet users watched TV online in 2006, a figure that constitutes more than two-thirds of the total US adult Internet population (eMarketer January 30 2007). While advertisers argue that locally we lack the technology (and the online audiences) that would make this media more engaging, it is being hailed by many as the next big thing. “This will further empower consumers and will make advertisers think even more creatively in order to reach them,” says Rooney.

PVR: Nielsen Media USA (New York Times, 16 February 2007) has found that people who own PVR systems still watch an average of two-thirds of the advertisements. (They tune in to their favourite shows at the scheduled time and sit through 40 per cent of the ads that

they could skip over.) The study found that rather than simply skipping ads, these consumers are only time shifting some of their viewing. A related TiVo study discovered that the most watched ads are the last and the first commercials to be screened during ad breaks. The study also found that younger people skip more. An interesting point raised in the New York Times report is that children in many US homes are only exposed to TV through PVRs, so their TV viewing culture is already more evolved. Oracle Airtime Sales is currently carrying out research into local PVR trends. The results will be available later this year. g

VARIABLE DATA PRINTING

The personal touch

The marketing world is rapidly moving from mass communication to a more targeted one-to-one communication. It is vital to connect with an audience in today’s proliferating and fragmented world – to break through the clutter and speak directly and personally to your consumer. Both technology and great marketing ideas have assisted one-to-one communication enormously. Now print gets the techno treatment with data print personalisation or variable data printing (VDP). The basic premise is simple. VDP is the ability to change text, images and graphics from one printed piece to the next by using software and a digital press. There are many applications for VDP: invoices, bills, magazines, newspapers – anything that can be printed. Personalised printing has been around for some time and is mainly used in direct marketing, in customer relationship management and in advertising. VDP however, takes this one step further by enabling one standard document to be personalised in as many ways as you can think of, making each printed piece totally unique in one print run. Imagine combining e-mail with an Internet link and a mail shot and then personalising the cover of the custom publication – all related to the same campaign. It is generally agreed that an integrated campaign is more effective; imagine this taken one step further to a personalised integrated campaign. You can execute varying degrees of VDP depending on how much personalisation is required: simply change the name and the message

Marketing Mix wishes to thank Kodak, Antalis and its printer House of Print for putting together this personalised issue just for you. Kodak is the leader in VDP technology worldwide and has spent years and invested millions in this technology. As a result of its research it knows that this is where the future of print will be. For this reason Kodak believes that it has the best solutions – equipment, software and fulfillment solutions – available to the industry today. Recently Antalis became the official partner of Kodak Nexpress in SA to enable it to take this technology to the next level. While Kodak currently has quite a few installations at printers who can efficiently offer VDP, it is anticipated that in conjunction with Antalis this technology will experience rapid growth in South Africa. Kodak also offers a unique concept called ‘Market Mover.’ This is a business model that assists customers with building their volumes and bringing in new work, as well as with different applications that have never been done before. In a nutshell the program offers customers a business development service that includes training for their staff as well as access to campaign templates and hundreds of case studies worldwide. Business Development in SA also includes push-pull marketing, which goes a step further in order to educate print buyers and designers about the technology. This in turn creates a demand for digital printers. Nadine Sharp Business Development Manager Antalis 011 688 6000

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VARIABLE DATA PRINTING

– or go a bit further and change the message and the image for a particular segment – or go the whole hog and change the name and the message as well as the images and the graphics for every single document. The challenge is still to create a relevant creative message. Personalising it can go a long way. There is a lot of innovative software available to enable high quality end results. Kodak makes use of various software packages that allow names or messages, for example, to be incorporated into realistic photographic images. It offers functions such as automatic word wrapping and scaling, reducing much of the expense and time required by other traditional methods. However, in order to be successful, the back-end data – the database – must be useable. VDP is essentially the merging of database information with digital imaging technology and this is where it can become very interesting. The more information there is stored (correctly and cleanly) on a database, the more personalisation can be intro-

duced. If a database includes details such as favourite music and restaurant etc, all of this information can be incorporated into a personalised message. Data must be efficiently captured and as detailed as possible – or VDP can fail miserably. VDP is more expensive than standard printing but according to the research conducted by many VDP vendors, printers and organisations, the ROI is much higher – as is the response rate. Reports suggest that response rates can increase by between 20 and 40 per cent and that they can improve response time

Facts and figures of responses  To add name only: 44% increase  Add static full colour: 45% increase  Add personalisation and full colour: 135% increase  Add database intelligence: 500% increase Source: Personalized and Database Printing, Romano/Boudy

Improvement with Personalisation  Order size/order value 24.5% – R100 becomes R124.50  Overall revenue/profit 31.6% - R100 becomes R131.60  Response time 33.9% 7 days becomes 4.625  Response rate 36% 100 leads becomes 136  Repeat orders 47.6% 10 customers become 148 Source: CAP Ventures

and customer retention – all signs of a great marketing tool. A big bonus is the ability to dig out more information about recipients in order to further increase the amount of personal data, which can in turn be used for more personalisation. There are other, less obvious benefits to personalised printing. Personalised documents tend to have a much longer lifecycle than those that are not personalised and therefore fewer are destroyed. Ad agencies can use VDP as another creative output. That much-longer, super-efficient database can finally be created and printing presses can be given a new lease on life. While a personalised campaign does take more time and money than a traditional campaign, the opportunities are immense. As yet there are only a few printers in the country that are able to use VDP but the options are growing, as is the technology itself. To make this work, printing professionals, vendors, marketers and database experts must work together. g

Rethinking the way of doing business From… To…  Time to print  Time to market  Cost per page  Cost per exposure or sale  Just in case  Just in time  Reach the masses  Capture the individual  Print volume  Print value  Customer reactive  Customer proactive  Print provider  Print consultant  Product focus  Customer focus Source: Kodak

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DATABASES

Database best practices Sensational one-to-one marketing cannot be achieved without having a great database. It means that you can target your audience much more efficiently and that you should be able to receive a great response in return – whether you are just fishing for more information, looking for new customers or selling your products. All too often a great campaign fails because the database isn’t actually all that great. Marketing Mix delves into the world of databases to find out what the best practices are – from maintaining software, to selecting the right database, to using it correctly to ensure that you are getting the most mileage out of it.

Choosing a database: Marketing Mix wishes to thank the following for their invaluable input in putting together the database best practices: Sue McCall, Introye; Raquel-Zia Hansia, DiData; Ian Rheeder, Markitects; Nici Stathacopulous, proximity#ttp; Sybase; Carel Badenhorst, SAS Institute; Michelle Perrow, Lesoba Difference.

 Select a database to suit your requirements. Remember that ‘expensive’ doesn’t always mean that it’s the right one – different databases are required for different processes  Customise your database according to your needs; not on your needs according to the hardware/software vendor. It must be customised with your business model and customer journey in mind  Select a database that everyone in the company can use. CRM must be driven from the top management downwards, even if you need to employ someone whose only job is the managing of the database  Remember that although a person is able

to manage a database on a daily basis, he/she will in all probability be unable to solve problems should something go wrong (unless the person concerned is an administrator). Make sure that you have an in-house specialist onboard or that your hardware and software are backed up with the very best support  Choose a database that can interact with your suppliers, your customers and whoever else you need to collaborate with  Get your database valued – it is a major asset.

Maintenance rules:  Backup. Backup. Backup. Then test your backups – preferably on a daily basis. Disaster recovery is imperative  Regular maintenance is vital  Ensure that all maintenance procedures, rules, naming conventions etc are fully documented  Check the data regularly. Power failures, corrupt data and hardware failure can result in lost or corrupted data. Fix any inconsistencies immediately. A database should be able to provide auditable, traceable metadata to ensure the integrity of the information throughout the chain  Spend money whenever necessary on maintaining, upgrading and mining the database.

The software:  It should be stable – and therefore less likely to suffer from crashes, errors and corruption  It should be very secure – secure enough to stop anyone (from the office cleaner to a hacker) from entering the system. Enquire whether data can be encrypted if necessary  Support should be readily available from the developer  Upscaling or upgrading should be a painless process and should include short time periods for changes, with a reasonable cost allocation  It should be easy to use so that if necessary, anyone in the office is able to enter/change data if required

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DATABASES

 It needs to have parallel storage technology built into it in order to maximise the hardware’s capacity to speed up access to huge data volumes

The data:  Develop database skills in order to understand how to properly utilise database intelligence for marketing strategies  Invest in and learn to use database tools (analytic and predictive)  Buy or build a Campaign Management Tool and test campaigns to suit your needs  Training is vital  Make sure that the design of forms and the database is simple and consistent  Work out your strategy in order to structure the database properly  Make sure to enter, update and discard as much information as possible about your customers  Keep customers and prospects separate  Cleanse the database – consider outsourcing this function to specialists

 Hardware and software on their own do not make for a perfectly functioning, great database. CRM must become ingrained in the company’s culture  Technology is a tool – it is not a replacement for the creative mind  If you need more names for a particular campaign, it is often easier to buy a list in – you should however ensure that names are not duplicated  To make life easier, send out a regular bi-annual call for people to update their information  Comply with the new regulations that are coming into existence – and take advantage of the new Direct Marketing Association Opt Out Register (see p 6 for more details). Consent marketing is currently what it’s all about  When communicating with your customers, gather a new piece of information that can be added to your database each time – for even better profiling next time Managing a database isn’t only about

having names and addresses to send out mailers to – it’s about Customer Relationship Management  Frequency, Recency and Monetary analyses can provide great insights  The Extracting, Transforming and Loading (ETL) of data is crucial for the accurate and timely integration of data from different applications of data sources. It is essential to have an error checking process in place when integrating data sources  Engage in data modeling. The level of detail models provide help streamline the concept through to the working project and then the structural database  Documented audit trails assist in the management of data  You must know which segment your target falls into, before putting the database to work  Make sure that the new information you load onto the database is relevant. Too much information can be just as difficult to work with as too little. Know the marketing strategy. g

EXPERT OPINION by nici stathacopoulos

There is a whole world out there Having recently spent a few days at a Proximity Worldwide conference bonding with our international colleagues from 40plus countries, I returned home to collect my thoughts on the various ideas and trends that were shared. People think that we in South Africa are amazing. I was fortunate enough to be asked to present on our country and company and I was able to share the dichotomy of a developing nation within a developed country. The insights that I provided into the emerging markets were fascinating to those from mature markets who know exactly who they are talking to at any point in time. What challenges do they face in the UK or Canada? A colleague who heads up Data Planning in the UK was pitching for a £1.2 million account – and that’s just the data side of it. (Read R17 million just for data management and hosting and analysis, excluding communications, creative, mailings etc). Her role was to determine how to change the segmentation of the client into more meaningful sets and subsets. We don’t even have defined segments in South Africa, let alone work with the notion of changing them. The focus of our action here in SA is assisting our clients in understanding the value of segmentation and effectively using planning tools to get the most out of our data. We need to work hand in hand, allowing sufficient time for analysis and trend spotting within the data. What’s the point of mailing the same base over and over again if we don’t get a different result? Their mouths drop open (literally) when we explain our Internet and e-mail issues. ‘What do you mean you don’t have broadband… but how do you cope?’ as if broadband is equivalent to drinking water. The Scandinavians are unbelievably advanced. You can see this in the execution of their work in the online environment. They argue hard when you challenge them on the point that e-mail is simply a one-to-one channel. Only after some intense discussion does it become apparent that you are all talking the same language; they just view it differently. They see the digital world as the holistic enabler to engaging with consumers on every level: one to a few; one to many and of course, one-to-one. It’s more than a channel

“

In South Africa we first need to know who our customers are before we can meaningfully engage with them.

”

– it’s a way of life. So do I – now can I please have broadband? The discussions held with colleagues from Jeddah and Dubai took place on a totally different scale. Their cities are unbelievably advanced. Poverty? ‘What is poverty,’ they

ask? In Jeddah they simply don’t mail anyone. They have no idea where anyone lives or works and engaging in the medium simply doesn’t exist. In Dubai they are only now starting to engage in true one-to-one marketing although their digital capabilities are world class. Moscow finds itself in a similar market to ours – the very rich and the very poor – although the very rich don’t need to be marketed to in any way. They are totally brand conscious and brand-washed! The next topic of discussion was creativity. As a group we were all about great work and we discoursed at length between ourselves about how difficult it is to create great work in the face of minute budgets, disinterested clients and a lack of great talent in our agencies. One of the best campaigns we reviewed (and awarded) originated in New Zealand and was called Body Part for a Bank. The entire campaign was flawlessly conceptualised and executed, dramatically increasing the number of student accounts on the books and far exceeding the targets laid down by their clients. You can be creative in direct – and it doesn’t always take big budgets. More often than not the key is being given sufficient time! One of the buzz words that was bandied about was ‘conversations’ – move away from dialogue and engage in a conversation with your customer. In South Africa we first need to know who our customers are before we can meaningfully engage with them. I flew home excited and depressed all at the same time – depressed that the DSL had been down for three days in my office and at returning to a country where life seems to have no meaning (crime had hit again, too close to my heart). I felt excited because there is a whole world still waiting to be tapped into here. So many of my friends in those beautiful countries live a life of ordinary work. They just seem to have done it all. The challenges they face in direct and digital marketing have become miniscule, while we have truly only started playing in the field of world marketers. g

Nici Stathacopoulos CEO, proximity#ttp (011) 447 7093 [email protected]

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by michelle sturman EXPERIENTIAL MARKETING

Experiencing We’ve all heard that the 30-second ad is losing face. While this may not be altogether true, it has served the purpose of highlighting other forms of marketing communication such as experiential marketing. However, the definition of ‘experiential marketing’ also presents a problem. A significant number of those in the marketing world simply define experiential as having an event at which free samples are given away. This constitutes interacting with the consumer in a tangible way – right? To a certain extent this is true but there is way more to experiential marketing than just that. Here are some definitions of experiential marketing from a few of our leading experiential marketers: Notice how the word ‘brand’

is cited within every definition? Experiential marketing is to brands what the 30-second ad is to advertising. A key component of experiential is the ability to interact with a consumer in order

“Experiential Marketing allows the consumer to interact with the brand in a meaningful and engaging manner, with the objective of changing or entrenching a perception within the consumers mind.” – Nicola Scheuble, FCB Impact 361º

“Experiential marketing is a form of marketing that leverages all the five senses in order to effectively communicate brand messages. It happens best in – but is not limited to – physical experiences where you can engage with the consumer one-on-one.” – Abey Mokgwatsane, VWV

“Brands that leverage multi-sensory platforms in their communications.” – Dani Hervey, Rainbow Experiential Marketing

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the

experience

to promote the changing of perceptions or to build on the existing loyalty to a brand. “It’s a two way communication. We call it ‘tryvitising’ – ie product placement in the real world by inte-

grating goods and services into daily life in a relevant way,” says Spero Patricios, managing director, Launch Factory. Experiential marketing is most certainly on the rise as con-

Q&A with Martin Lindstrom What is your definition of experiential marketing? Talking to our emotions by using our senses in unconventional and powerful ways. What’s the difference between interaction and experiential? Experiential sets the stage; interaction happens within the frames of experiential stage set. How does experiential marketing fit with branding? It makes branding come alive. Remember that branding is all about creating emotions. Emotions happen by touching the mind and the heart. If the journey is experiential, it captures both the heart and mind. This makes it memorable and rewarding (for both the consumer and the brand owner). Why is experiential marketing on the rise? We’ve realised that 2-dimensional marketing doesn’t work anymore. We’ve developed such a thick filter in our brains that we filter all commercial messages away. 5D marketing (which in many ways is experiential) makes advertising and brand messages come to life; they become engaging and relevant in our lives.

Why is this so important in building brands? It’s a way to bypass the dilemma of price. Everyone can compete on price and product but you can’t compete on brands. Brands are all about emotions. Once you’re in love it’s hard to move on. Who is the best experiential marketing target – and why? Everyone is. It’s all about reflecting what we’re all about – being human. Is experiential marketing best seen as a singular discipline or as part of an integrated campaign – and why? It has to be leveraged across all touchpoints – whether or not you call it a campaign. What matters is that the experience is taking place all the time in a consistent way that keeps the brand experience alive. What is the next step in the evolution of experiential marketing? Sensory branding and the Holistic Selling Proposition – religion will become the source of inspiration for brands. What problems does experiential marketing face? People think that it’s a fad.

EXPERIENTIAL MARKETING

sumers are becoming harder to reach and more in control. “Classical ATL mediums such as TV and radio are becoming less effective as consumers are actively avoiding this form of communication. Experiential demands a consumer’s full attention. It can find you anywhere. You can’t turn experiential off and go and make coffee during an ad break in the same way as you can when you are watching TV,” says Abey Mokgwatsane, group marketing director, VWV. These living, face-to-face interactions create bonds with a brand through interactivity, as opposed to the passivity of TV ads. It helps a brand to touch all of the five senses. “Today it is not enough to only present your product visually. We have to trigger the other sensory channels – sound, taste, touch and smell – to enhance the total impact,” says Dani Hervey, new business, Rainbow Experiential Marketing. “People internalise communication messages on different sensory levels. Often the white noise is ignored, so if you can talk to people in a way that reaches them through their other senses you’ve hit the sweet spot.” It is this direct engagement that can strengthen loyalty and change the face of a brand (provided that it’s a positive experience, of course). As Nicola Scheuble, general manager, FCB Impact 361º, explains: “Since experiential marketing drives the link to the brand and its emotional attributes in the consumers mind, it can have a positive effect in changing brand perceptions. You can demonstrate the softer issues and attributes of the brand to the consumer and tailor each experience depending on who you are talking to at the time.” An experiential campaign can create memories.

At the same time, any wise marketer will tell you that the best campaigns are integrated campaigns. This should also include experiential. “You have to look at experiential within the context of the marketing mix and see where it fits into the traditional media gaps. Interaction is the new currency,” says Patricios. Being able to measure experiential marketing ROI will go some way to gaining a larger chunk of the marketing spend but changing the mindsets of marketers is another matter. “The greatest challenge is that the institution of marketing is predominantly designed and resourced to support and promulgate ATL communication. Most marketers equate marketing with advertising. This results in the other mediums – experiential included – being considered as a ‘nice to have,’ says Mokgwatsane. Despite the grumbles about ROI from marketers, experiential marketers are not standing still. The ‘next step’ in the evolution of experiential is looking at niche audiences and at messaging that is even more targeted. The industry is also looking towards more sophisticated brand experience work as opposed to simple sampling and going further than just set piece productions. As Mokgwatsane explains: “Most experiential projects manifest in set piece productions that occur in one place over a limited period of time. However brand and product experiences happen everywhere and all the time, whether it’s in the bank queue or on the floor of a car dealership. All of these ‘physical’ scenarios are potential platforms that brands can make use of to fulfil the promises they propagate through communication mediums.” g

Intra-experiential research How do you measure the experience that you deliver to your customers? Do you, according to common wisdom, base your performance primarily on a Customer Satisfaction Index (CSI), which tracks how well you deliver your products or services to customers and which of their expectations you are managing to meet? As important as it is for monitoring service delivery levels, traditional CSI Research will never allow you to truly understand the experience your customers are having with your company. This ‘proven’ technique falls short of applying the simple principles that are essential if you want to quantify the experience that you deliver accurately. The experience is so much more than just great service – and the physical service rating questions that are contained in most traditional customer satisfaction surveys are not an adequate measurement. In order to really understand customer interactions, companies need research that is designed to accurately quantify both emotional customer engagement characteristics and the kind of sensory experience that is being delivered. If your questionnaires lack these questions, you should challenge their design. Since experience is all about emotional engagement and enticing the five senses, measuring customer experience after the fact is simply too late. No person can accurately recall the emotions they were feeling three months after an interaction with a company takes place. This is one of the main reasons that telephonic interviews are inappropriate for experience research. If they are to be useful, it is critical that experiential intercepts are conducted during a customer’s interaction with your company. In much of the research we have done, we have found that customers are frequently not able to describe the experiences that they have. Our researchers often need to observe these experiences in order to make their own comments about issues such as body language, demeanor and levels of confusion and boredom. For this and many other reasons, it is critical that experience research should be conducted onsite at the point of customer interaction. Customer experience is, by its very definition, dynamic. If you go to an ATM and are able to walk up and immediately draw cash, your experience will be vastly different to when you have to stand in a queue with people that you regard as suspicious in every way. For this reason it is important that the experience research you conduct should allow for the correlation of the results with macro experience variables, like time of day and interview location. Traditional survey methods have no way of controlling this. One of the biggest criticisms of traditional CSI Research methods is that they attempt to use a single questionnaire to measure experience across an entire organisation. Every interaction that you have with your customers is unique and because of this, the surveys that you use to establish the experience delivery of distinct interactions should be unique too. Perhaps the mistake that you are making is that you are measuring your experience delivery from the outside. Dave Benjamin Interact RDT (011) 252 0600 [email protected]

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EXPERIENTIAL MARKETING

Sponsorship as an experience In today’s cluttered media environment – with the slow death of the 30-second advert as we know it – sponsorship as a marketing discipline is gaining increasing popularity with brand marketers in engaging consumers and breaking though the clutter. Sponsorship has become much more disciplined and strategic in its approach and as a result it is connecting brands to their markets through sports and entertainment. In the past sponsorship was an after thought but it is now at the forefront of developing any marketing strategy. Whilst it might be an exaggeration to say that the 30-second advert is dead, there is no denying that brands need to go well beyond traditional advertising to reach and truly engage with their target markets (as opposed to interrupting them). While South Africans appear not to have heard this message and are still using sponsorship for hospitality and brand exposure (signage), the rest of the world has already moved on and the sponsorship market is maturing. Sponsorship today is about enhancing the property you are sponsoring and creating a unique experience that only your brand can deliver. The era of experiential marketing is upon us – it is the next phase of leveraging a sponsorship in order to optimise its potential. Using sponsorship as an integrated marketing platform is something that has been around for years. A few select brands like Absa, MTN, Coca- Cola and Vodacom have always ‘gotten it,’ while others still see it as a branding opportunity only. However there is another vastly underutilised role that sponsorship can play in the marketing mix – it can be used as a medium for integrating the brand into the overall brand experience. This can be an extremely relevant contact point for a target market that isn’t reached or engaged by traditional advertising. For example, during the Absa Cup 2006 – also known as the Absa Cup of Dreams – Absa was able to tap into the emotions of millions of fans and to create a unique experience. Not only did they sponsor and enhance the tournament, they also facilitated the realisation of the dreams of a number of entities. This experience included the top teams (who could win the tournament) as well as the bottom teams (an amateur team could end up playing against one of the big teams like Kaizer Chiefs in the final or the knock-out stages). Through the various promotions that were held during the tournament, consumers could also realise their dreams. Prizes which ranged from cash, to winning a car, to winning a trip to the 2006 FIFA World Cup, were given away through print, radio, TV and at the actual stadium venues. The ‘never in your wildest dreams competition’ allowed one lucky consumer an experience of a lifetime by providing a grand prize that consisted of a Ford Focus, R50 000 and two tickets to the 2006 FIFA World Cup in Germany. As result, the sponsorship was able to communicate much more than would have been achieved in a 30 second ad. Significantly, this was done in an environment free of clutter. Absa owned the market on their own terms for the duration of this tournament because they chose to be part of the Absa Cup experience. What is the moral of the story? Whenever possible, integrate, activate and create a unique experience in order to get the maximum ROI (or Return on Objectives) out of your sponsorship Rands. Using sponsorship as a platform can deliver a lot more than the traditional 30-second ad and by creating a unique experience it can ‘burn a memory path’ that will never be forgotten. Previously sponsorship agencies were left on the outside of the boardrooms but now we are right in there, shoulder to shoulder with the marketing director and the senior management, developing strategy and creating a unique experience. Justin Sampson Exp South Africa (011) 549 5340 [email protected]

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In the globalised, commoditised world we find ourselves doing business in, it has never been more difficult to differentiate ourselves from our competitors. On top of that, customers are more cynical, more informed, more networked and just smarter than ever before. Traditional marketing and advertising media are growing stale – the consuming public has inoculated itself against the barrage of brand messages we fling at them every day. But something is happening online. A new generation of tools and technologies are changing the way our customers interact with the Web. It’s allowing ordinary people to voice opinions, to share ideas, to tell stories. Sometimes these amateurs – these customers, employees, kids, housewives – are lauded, praised and even made celebrities for their blogs, their podcasts and their social networking capabilities. Whole digital universes like Facebook (www.facebook.com), Second Life (ww.secondlife.com) and MySpace (www.myspace.com) are springing up. Google just paid US$1.6 billion for YouTube, a video-sharing website. Never before has it been more important for you to understand, interpret and capitalise upon trends dictating shifts in the Internet and therefore our customer landscape. You’ve always said you’re a customer-centric organisation, but never been able to scale that. Now you can, thanks to social media and an evolving World Wide Web – Web 2.0. Mike Stopforth Cerebra www.cerebra.co.za

by fulvia becatti POPIA SA

POPAI The cost of advertising prime-time is becoming prohibitive (and ad clutter has taken the punch out of traditional advertising, especially in the US and the UK). Retail marketers need to look at alternative means to deliver their message to shoppers. “Retail is one avenue that offers frequency and reach for many brand marketers,” says Dick Blatt, CEO, POPAI. The Marketing At-Retail (MAR) model presents an alternative to existing retail marketing models (including point-of-sale, below the

POPAI CEO Dick Blatt comes to SA: Marketing At-Retail conference Dick Blatt, CEO of POPAI worldwide, the renowned point of sale organisation, will be the keynote speaker at the Marketing At-Retail conference, to be held in June, in Johannesburg, Durban and Cape Town. The conference will be run in conjunction with the ECR division of the Consumer Goods Council. Blatt will be presenting the findings from POPAI’s UK studies, and will also discuss issues around shopper engagement. Sponsorship and delegate enquiries: [email protected].

line and in-store marketing, for example). Within this model, the entire store becomes the advertising medium, and the aim is to create a brand experience for the shopper from outside and throughout the store. “Retailers are branding their stores from the parking lot, to building design, to the layout of the floor plan. They are working with the brands that have chosen to support the retailer’s image and integrate into the retailer’s marketing strategy. The resulting experience builds brand loyalty and a competitive edge that allows for high margins for both the retailer and the manufacturer,” says Blatt. This model takes into account the state of mind of the shopper (who is in shopping mode, and therefore receptive to advertising messages that help them to make shopping decisions). Consider that retail chains offer great reach through the density of stores,

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and that each retail store supports hundreds (thousands, even) of shoppers on a daily basis. “Weekly trips vary, but research has shown the shoppers make two to three trips per week to replenish supplies and pick up incidentals,” says Blatt.

Who is the modern consumer? “The modern shopper makes different types of trips depending on the need and time available. With twoincome families being more prevalent, shoppers have had to adapt… just like the trend for prepared foods and eating out at restaurants, time is the driving factor in today’s shopper buying behaviour,” says Blatt.

The MAR model would certainly benefit the local market. “Marketing-at-Retail is not only an international prerogative but a global imperative that is absolutely relevant to the SA market. Retail is retail anywhere in the world no matter what type of format. The greatest influence marketing can have on a shopper is in the retail footprint. Retail marketing is the only medium you have a guaranteed interface with the shopper,” says Paul Miller, sales and marketing director, Barrows. POPAI has established the Marketing atRetail Initiative (MARI), which will conduct research worldwide into shopper engagement. “We are working with retailers, brand manufacturers, ad agencies and marketing at-retail producers to develop standard measurements not only for shopper engagement, but return on investment metrics and best practices as well,” says Blatt. The MARI team is currently conducting field trials in the UK and the US. g

SALES PROMOTION

Sales promotion critique Judging Panel:

Marketing Mix definition of a sales promotion:

Ian Hunter, Green Dot Marketing Xolisa Dyeshana, BTL creative director, Joe Public Claire Howard, client service director, EXP.

A sales promotion is designed to motivate a short term call to action which adds value and promotes a transaction between a consumer and a brand.

Criteria All sales promotions are based on eliciting a response of ‘I wish I’d done that…’ from the judging panel. The promotions are viewed from a consumer point of view ie without information on the brief, agency objectives or results. The panel is also looking for innovative work that has broken new ground.

The campaigns

Title: Exercise Book Client: Bona Promotional details: Free exercise book with Bona magazine Description: A free A5 exercise book for students was bagged with each Bona. The free book was advertised at the top of the bag. Comments:  It’s simple yet effective  It targets the Bona consumer audience perfectly  It adds value to the magazine  Perfect timing; it was bagged with the February issue, in time for going back to school  It’s a great idea but it could have been taken further. Bona could have approached advertisers to participate by placing their logo on a page.

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If you think your latest sales promotion campaign warrants a look by the Marketing Mix judging panel, please send your campaign details to: Michelle Sturman Marketing Mix 1st Floor North Block Bradenham Hall Mellis Road Rivonia Or e-mail: [email protected]. If you would like to be a judge, e-mail Michelle at the above address.

SALES PROMOTION

Title: dolunchtiser Client: Appletiser Promotional tools: website, radio campaign, SMS, peel-off sticker on bottle Description: Appletiser bottles sold in restaurants feature a peel-off sticker on the back where a unique code is SMS’d to a number. An SMS response tells the recipient if they have won a two-for-one lunch and the chance to win a lunch at a ‘South African dream destination.’ Entries can also be submitted through a website www.dolunchtiser.co.za whereby viewers have to read advertorials from women’s magazines detailing celebrities enjoying lunch at various venues and selecting which one they think was the best. A campaign on 5FM offers listeners the chance to win lunch by listening to the clues on three of the station’s shows on Wednesday and Fridays. Comments:  The positioning of having a lunch is great considering the high LSM target market  The golden thread for the different mechanisms of entry are great – website, SMS and radio  Instant gratification exists through the SMS promotion on the bottle – win or lose  Some of the mechanisms let this stylish, well-targeted campaign down. One of the members of the judging panel entered the SMS competition; won; then spent a day trying the hotline to claim the prize  Restaurants selling Appletiser missed out by not training staff to promote both dolunchtiser and the restaurant itself (unlike the previous scratch and win Appletiser competition).

Title: Get the life Client: 94.7 Highveld Stereo, Emperor’s Palace Agency: 94.7 Highveld Stereo Promotional tools: radio, SMS, online, phone, mobile web, on the ground activations, Emperor’s Palace Description: One listener stands to win a R2 million house, a car and R1 million in cash. Over five weeks – between 7am and 8pm – five listener’s names are announced on the hour. The first caller wins an instant cash prize. All five can claim an invitation to the ‘Get the Life’ party and draw at Emperor’s Palace. Listeners need to enter through one of the five entry points. One listener will win the prize at the draw. Comments:  A guaranteed instant cash prize for one person and five people ‘winning’ every hour equals a lot of satisfied listeners  This isn’t just a small promotion; this really can change someone’s life in the long term  There are many ways to enter, which makes it incredibly easy  You have to listen to the radio station all day, so the benefits for Highveld 94.7 are enormous.

Title: Girlfriend Client: P&G Promotional tools: Trial pack of pantyliners Description: Consisted of an envelope containing eight panty liners and a letter from one girl friend to another, suggesting that they try the product. The envelopes were placed in female magazines. Comments:  This was a good idea; it was an intimate way to communicate an intimate product  Everything about this promotion was right for the target market – the colours; the language; it even smelled great  It could possibly have been designed to include a coupon to motivate a purchase in store.

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by michelle sturman TOP PRINT PERFORMERS

Print Pals ABC analysis 2006 Fifty two per cent of the growth in the magazine industry came from new magazines. There were 64 new magazines in total: 18 business-to-business; 33 consumer and 13 custom magazines. Eleven new newspapers were introduced last year: one daily; three weekly; three weekend and four community. 48 new publications were introduced in the free distribution sector: 21 magazines and 27 newspapers. According to the ABC analysis, large titles are being pressured by competition from smaller publications and new players in the market. The intense competition has driven publishers to come up with innovations such as twinning, mini mags and electronic editions. According to Gordon Patterson, MD, Starcom, print’s main competition comes from outside of the industry. He also points out that the

publishing world is not engaging sufficiently in self-promotion and that print could and should be doing much better. Not all sectors have been analysed, so here’s a brief rundown of those that are not covered in-depth:  Community press (Oct-Dec 2006) is up by 27 320 to 438 313  Business-to-business magazines (Oct-Dec 2006) are up by 79 243 to 840 780  Business-to-business (July-Dec 2006) are up by 25 243 to 186 079  Business-to-business (Jan-Dec 2006) are up by 57 263 to 200 485  Consumer magazines (Jan-Dec 2006) are down by 4 682 to 132 364  Free magazines (including My Week, Get It, Homemakers Fair) are up by 543 606 to 1 984 171

Please note that all the following figures in brackets refer to the corresponding previous period.

NEWSPAPERS Daily newspapers (Oct-Dec 2006) are up by 108 825 to 1 890 406. ABC analysis: 56 per cent of titles have grown or are static; 44 per cent have declined and 58 per cent of smaller than average circulation titles are under pressure and reflect negative growth. The top performers are: Beeld – 99 162 (97 573) Daily Sun – 494 875 (443 280) Isolezwe – 96 485 (88 664) Sowetan –134 818 (134 954) Isolezwe has continued to post increased results, frequently reaching sales of over 100 000 on certain days, although there are signs that it is slowing down. The good news is that it’s becoming increasingly popular in Gauteng, although the highest concentration of its readers are in the Durban, Pietermartizburg and Zululand areas. It did extremely well in Markinor’s Brands survey last year, scoring top marks for confidence

Weekly newspapers (Oct-Dec 2006) are down by 45 971 to 692 563. The top performers are: Mail & Guardian – 48 292 (41 723) The Post – 47 151 (45 529) Soccer Laduma – 303 461 (280 933) UmAfrika – 32 978 (21 878) The Mail & Guardian is gunning for the 50 000 barrier this year although its figures for 2006 are notable enough. The M&G has investigated some of the biggest stories of the year – the SABC blacklist, Jackie Selebi and Glenn Agliotti and the SAPO fraud, amongst others – and has ended up in court with most of them, leading to huge publicity across other mediums. The M&G has also

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and loyalty from its readers. As far as Beeld is concerned, the presence of competitions such as the Treasure Hunt has added to its appeal. It has also broadened its editorial scope to include area-specific editorial such as Mpumalanga Beeld, which is available on Fridays in certain areas. This challenge was borne out of Beeld’s strategy for segmentation – including groundbreaking distribution channels and related marketing projects. This year will see Beeld embrace new technology and the relaunch of its business section this month. The mighty Daily Sun continues to grow although the gains are not as enormous as they were a couple of years ago. Nevertheless, gaining over 50 000 copies in a year is inspiring and it won’t be long before it breaks the half a million barrier. There is certainly room for more expansion, as evidenced by the weekly and weekend newspapers aimed at the same demographics.

bought back its own distribution company, allowing it to choose its sales outlets and to increase its footprint. In addition its superb website helps to drive sales and the introduction of podcasts should bring about a further increase. Soccer Laduma is a giant that just keeps getting bigger. Prior to Oct–Dec the football paper was adding at least 10 000 to its circulation every quarter, although this figure is still over 20 000 when compared to the previous corresponding period. The weekly hasn’t made any obvious changes over the last year and has relied on an editorial focus of ‘having a conversation with its readers.’ Soccer Laduma is in an incredibly strong position. This is likely to continue in years to come as football fever begins to grip the country in the run-up to the 2010 World Cup. Marketing Mix suspects that even those who would not normally buy a football paper will begin to do so.

TOP PRINT PERFORMERS

Weekend newspapers (Oct-Dec 2006) are up by only 43 624 to 2 574 800. According to the ABC analysis, 71 per cent of the titles that are larger than average have shown growth or are static. 29 per cent of these larger than average titles have declined. 54 per cent of the titles with below average circulation have grown or remained static. The top performers are: Beeld – 84 305 (83 178) City Press – 183 101 (175 125) Ilanga Langesonto – 70 291 (41 474) Sunday Sun – 200 315 (188 369) Sunday World – 184 772 (155 997) The Weekender – 9 368 The Weekender is the nice surprise in the weekend selection and has increased its circulation by a couple of thousand each quarter. Launched one year ago, its publishing schedule allows it to be on-shelf for the entire weekend. The paper received a boost at the end of July when two new lifestyle supplements – travel and food – were added to the mix. Both Sunday Sun (which celebrated its fifth birthday last August) and Sunday World have posted impressive gains,

demonstrating the power of the market they both serve. Innovations – such as Sunday World extending its job section to the Internet through CareerJunction and an increased focus on distribution, promotions and events – have helped both papers to raise their profile. In the space of one year Ilanga Langesonto, the weekend paper serving the Zulu market, has doubled its circulation. This is a paper that one should keep a close eye on. Beeld continues to innovate and add value for its readers. In October it introduced the By supplement, featuring interviews, book reviews, news, gardening, travel writing etc. The motoring section and the fabulous youth-orientated supplement, Jip, have also expanded its appeal. The City Press marketing campaign has certainly helped to enhance the numbers of this publication. It started in 2005 with the Distinctly African campaign and continued last year with thought-provoking slogans such as ‘Liberating South Africa one Sunday at a time.’ Since editor Mathatha Tsedu took over, its repositioning towards the higher LSM groupings has paid off handsomely.

Consumer Magazines Consumer magazines are up by 459 792 (Oct-Dec 2006) to 5 182 030.

Finance The top performers are: Entrepreneur – 17 735 Financial Mail – 32 698 (24 710) Finweek – 32 419 (29 842) Category: 105 081 up by 50 529 Financial Mail and Finweek have both posted impressive results after languishing in the 20 000s for some time. Clearly the rebranding of Finweek and the redesigning of

FM have caught the attention of a new generation of readers. Although Entrepreneur distributes almost 10 000 free copies out of its total circulation, it is selling the second most copies in the sector (after the Financial Mail) in terms of single copy sales.

General Interest The top performers are: Drum – 79 895 (71 272) Heat – 83 084 (79 614) People – 111 160 (113 435) Top Billing – 38 518 (28 284) Category: 1 367 670 up by 39 907 Top Billing started off three years ago with a respectable circulation figure. It then dropped dramatically, although it managed to pick

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up a cool 10 000 last year. Heat continues to progress albeit much slower than in previous years. Its biggest gain was in the first three months of the year and it has now broken the 80 000 barrier. Big celebrity stories, which have included Kylie and her breast cancer and Britney and Angelina’s love lives, have almost certainly contributed to its growth. People may have posted slightly lower Q4 results but during the remainder of 2006 its figures were way up on 2005, so it deserves a mention.

TOP PRINT PERFORMERS

Home According to ABC analysis, strong growth and particular strength continues to be found in smaller than average circulation titles. Only 22 per cent of these titles show negative growth. The top performers are:

The Gardener – 52 890 (47 884) Tuin Paleis – 37 132 (34 203) Tuis Home – 85 848 (83 540) Category: up by 16 333

Male According to the ABC analysis, 75 per cent of the titles have declined. The introduction of a new title has impacted on the growth of existing titles. The top performers are: Popular Mechanics – 40 619 (32 204) Zoo Weekly/Weekliks – 35 340 Category: 302 411 up by 45 200

The launch of Zoo in English and Afrikaans has impacted on the existing titles – Men’s Health, FHM, GQ – in this sector. Zoo is now ahead of GQ in terms of circulation and is nipping at the heels of Popular Mechanics, the only existing title to increase its figures. Zoo launched in October as the first men’s weekly and free sample copies were distributed during a huge marketing campaign, as well as with FHM.

Motoring

Sport

The top performer is: Car – 101 586 (102 394) Category: 309 758 up by 8 077

The top performer is: Golf Digest – 30 545 (28 129) Category: 271 173 down by 7 134

Travel According to the ABC analysis, 75 per cent of the titles have declined. The twinned title has redefined the category. The top performer is: Weg/Go – 114 169 (79 431)

Category: 269 351 up by 48 095 Weg! and its English counterpart Go! are now leading the travel category at the expense of the more established Getaway (and Wegbreek). Weg has become so successful that even its supplements (such as Wegsleep) are becoming their own titles!

Woman’s General According to the ABC analysis, only 29 per cent of these titles have increased. Afrikaans titles are under pressure and growth has come from four new titles. The top performers are: Femina – 48 233 (37 357) Finesse – 92 680 (95 363) Move! – 104 507 (48 411) Real – 56 033 (51 298) Woman & Home – 104 706 (86 623) Category: 1 606 636 up by 205 616 Femina posted a significant gain in the last quarter although its previous 2006 quarter showed a minute loss or virtually no change. It will be interesting to see what Media24 will do with it during this year, especially with the introduction of Glynis O’Hara as editor in April.

Although Finesse recorded a slight dip in its fourth quarter results, the rest of the year saw significant gains with an average of just over 99 000 for 2006, as opposed to just over 70 000 for 2005. Women & Home has continued to post increasing quarterlies and has now broken the 100 000 barrier, a great achievement for such a new magazine. Innovations such as giving away free books (the March 2007 issue) bode well for escalating the figures for this year. Move! – aimed at the black market – is responsible for a huge part of the increase in the women’s general category. Move! has more than doubled its circulation in a year. This is an impressive achievement in any category and particularly so in this one. It now borders the top ten best selling magazines in all categories. This year will bring some changes as its frequency goes from fortnightly to weekly.

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TOP PRINT PERFORMERS

Woman’s special The top performer is: Elle – 54 507 (52 702) Elle has made significant progress over the last few years and last year it saw increases in every single quarter over the preceding

one. Two renowned fashionistas are in charge – Jackie Burger as editor and Chris Viljoen as fashion director – so we’ll see what 2007 brings for this fashion mag.

Youth The top performers are: National Geographic Kids – 33 108 (21 727) Seventeen – 50 141 (42 579) Category: 116 154 up by 15 740. Seventeen not only released a few Afrikaans issues last year; it also came up with creative brand extensions through bagged issues filled with girlie goodies. The offer of a cellphone increased numbers impressively in December and the issue before that offered a diary. However the increase was not only due to the goodies –

the magazine also offered supplements such as Hotties and competitions such as Teen Achiever. National Geographic Kids continues to grow rapidly. It was given a boost by an Afrikaans edition that was launched in September. Innovative PoS in April (noisy magazine stands) increased the April-June figures quite substantially and its numbers have continued to rise.

July-Dec 2006 Consumer magazines (July-Dec 2006) are up by 135 457 to 552 668. The top performers are:

Home The top performer is: Elle Decoration – 29 771 (24 103) Category: 41 253 (two new members: Men’s Health Living and TopHuis)

Sport The top performer is: Soccerlife 442 – 31 314 (27 379) Category: 77 301 up by 1 780

Youth The top performer is: Y mag – 12 800 (9 721) Category: 86 386 down by 18 074

Custom Magazines sold Custom magazines sold (Oct-Dec 2006) are up by 1 065 113 to 3 404 431.

Entertainment The top performer is: Dish & Skottel – 1 431 245 (1 237 604) Category: 1 436 802 up by 194 925

Retail The top performers are: Edgars Club Magazine – 876 985 Super Club for Kids – 65 675 (46 727) Category: 1 776 858 up by 897 854

Custom magazines sold (July-Dec 2006) are up by 41 626 to 116 613.

Retail The top performer is: Taste – 38 503 (27 456) Category: 61 385 up by 12 994

Custom magazines sold (Jan-Dec 2006) are down by 338 176 830.

Industry The top performer is: Mercedes – 46 436 (31 573) Category: 87 621 up by 13 674

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Mercedes is aimed at high achievers and the editorial, design and photography all reflect this affluent group of people. Mercedes stays away from gimmicks in the magazine and instead relies on the innovative handling of its features and design. While the magazine is FoC to owners, it is also available on shelf – 160 copies sold.

TOP PRINT PERFORMERS

Custom Magazines free Custom magazines free (Oct-Dec 2006) are up by 427 203 to 1 492 178.

Retail The top performers are: Lewis Stores Club Magazine – 488 642 (461 660) Metrobeat – 396 000 Category: 884 642 up by 422 982

Custom magazines free (July-Dec 2006) are up by 291 311 to 2 235 193

Retail The top performer is: Jet Club – 1 124 912 (1 063 675) Category: 2 032 192 up by 256 080

Youth The top performer is: 2 HIP2B – 147 369 (102 253) 2 Although still in its launch phase, HIP2B posted impressive gains last year. Constant tweaks to its positioning and content have paid off and this looks set to continue during this year as Atoll Media hands over the reins to New Media Publishing. In addition to the focus on maths, science and technology, the magazine has branched out to include more social awareness and activism. A website and a TV show on SABC have also contributed to its success.

Custom magazines free (Jan-Dec 2006) are up by 88 390 to 1 292 965.

Health The top performer is: Discovery – 929 430 (832 000) Discovery magazine, provided free of charge to Discovery Health Medial Scheme

and policyholders of Discovery Life, made a move in late 2005 to featuring real people on its cover and in October last year the magazine was redesigned for a fresher appeal. The magazine itself benefits from constant promotion through trade shows, exhibitions and award entries. Over half of its readers are in LSM 9-10 who receive the magazine three times a year.

Free community newspapers (Oct-Dec 2006) are up by 177 674 to 4 211 934. The top performers are: Alberton Record – 36 250 (34 458) Bedfordview & Edenvale Times – 40 791 (37 297) Boksburg Advertiser – 41 367 (38 869) Chatsworth Rising Sun – 50 908 (44 403) City Vision (Cape) – 78 989 (70 000) Fourways Review – 36 240 (34 148) The Highvelder – 16 557 (14 900) Highway Mall – 50 767 (43 812) Ilizwi –22 900 (19 900)

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Jabavu Urban News – 32 000 (30 000) Kempton Express – 49 171 (47 010) Krugersdorp News – 28 198 (25 917) Midrand Reporter – 28 152 (26 666) Plainsman – 80 064 (74 574) South Coast Fever – 41 262 (33 350) Southern Courier – 57 739 (52 187) Tabletalk – 50 979 (46 979) Tygerburger Kus/Coast – 53 520 (37 970) Umthatha Herald – 25 000 (12 097) Zola Urban News – 44 583 (40 000)

by dr wim alberts LAW MIX

Regional trade mark rights Trade mark rights can be derived from either common or statutory law. In terms of common law, one requirement for protection is the presence of a reputation, the determination of which is a factual question. This simple principle can be difficult to apply. A particular problem is encountered in the case where a mark is used in different geographical areas by different persons. Guidance can however be obtained from case law in the United Kingdom and thereafter the South African position can be considered. It is apparent from the UK case of Brestian v Try, that protection will not necessarily be limited to the actual area of use. ‘A’ conducted business as a ladies’ hairdresser in London, Wembley and Brighton. ‘B’ conducted business in Tunbridge Wells. Evidence established that persons thought that ‘B’s’ business was associated with that of ‘A’. ‘B’ argued that ‘A’ had to prove the existence of a reputation in Tunbridge Wells. The court stated that the matter could not be decided by the mere allocation of goodwill by areas and that whilst distance may reduce or eliminate the likelihood of confusion, the circumstances concerned were decisive. It was found that as Brighton and Tunbridge Wells are only some 30 miles apart, ladies living between the two places might well go to either for the purpose of having their hair attended to. The protection of goodwill even beyond the actual area of operation was also recognised in another UK case: D.C. Thomson & Co. Limited v Kent Messenger Limited and South Eastern Newspapers Limited. ‘A’ contended that its publication had increasing sales in the area to be circulated by ‘B’ – and that confusion would result in future potential sales that would be lost. The court confirmed that mere future possibilities can be protected but held that the evidence as to increasing sales in ‘B’s’ area was not satisfactory. With regard to South African cases, regard can be had, firstly, to Union Steam Bakery (Pty) Limited v Nichas . ‘A’ and ‘B’ conducted business as bakeries – ‘A’ in Middelburg and ‘B’ in the town of Bethal, some 80 kilometres away. For many years there was no conflict between the two parties but at some stage

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“The court confirmed that a competitor who wished to enter the same field as an existing concern would be debarred if he entered that field directly as a new business.”

‘B’ commenced delivery of his bread to firms in Middelburg. Ruling in favour of ‘A’, the court confirmed that a competitor who wished to enter the same field as an existing concern would be debarred if he entered that field directly as a new business. The court

rejected the idea that a competitor who established himself in a different area could thereafter enter another geographical area under a name that was likely to cause confusion. In GPS Restaurant BK v Cantina Tequila (Mexican Connection CC), ‘A’ used the trade mark Cantina Tequila for a restaurant in the Johannesburg suburb of Brixton. ‘B’ operated a restaurant under the same name in Cape Town and wished to expand to Rosebank. ‘B’ contended that it also had a reputation in Johannesburg, as holidaymakers from Gauteng frequent the restaurant in Cape Town. Reservations were also made from Johannesburg. The court stated that ‘B’ could only trade in Rosebank if passing off was unlikely, as it concluded that ‘A’s’ goodwill extended to Rosebank. The court ruled in favour of ‘A’. The Brestian case makes it clear that it is not necessary that a reputation should be present in the particular area where the defendant is active. The court indicated that the matter could not be decided by the mere allocation of goodwill by areas. In this sense the protection given relates to an area wider than that in which actual trade is conducted. In the Kent Messenger case, direct reference was made to future potential sales that would be lost. The two South African cases can be summarised by stating that a reputation in a particular area would not allow a party to commence business in the other party’s area of trade. If reliance were to be placed on a reputation within the other party’s territory, it would have to be of such an extent and nature that no confusion would be likely. When the above position is compared with that in terms of statutory law, the advantage of having a trade mark registration becomes apparent. In the latter situation, a registration will have effect across the country, even though the proprietor might be conducting trade in only one part there of. g

Dr Wim Alberts Bowman Gilfillan Inc (011) 669 9000 [email protected]