Marketing Mix Magazine March April 08

MarketingMix M E A S U R A B L E

M A R K E T I N G

I N S I G H T S

I Vol 26 Issue No. 3/4 I 2008 I R25.00 incl. vat

MarketingMix

CONTENTS

I 0 2 I Book Review

I 2 1 I Research 10

Marketing Mix reviews the Green

Marketing Mix investigates the local

Marketing Manifesto, by John Grant,

research industry, and explores major

and learns how to fit the green

issues, current trends and future options

revolution into marketing and sales strategies

24 I 0 3 I Ed’s note

I 4 0 I Airport Marketing Do you know how to make the most of airport marketing in spite of

I 0 4 I Direct Marketing

airport upgrades? Marketing Mix

Marketing Mix reports back from the

takes a closer look at some of the

marketing direct best practices

challenges that marketers and media

workshop

owners are facing

07 I 0 6 I Expert Opinion: Richard Duncan

32

I 4 4 I Expert Opinion: Helen McIntee Helen shares her list of top 20 things

Richard gets hot and bothered about

she has learned as a customer and a

agency remuneration

marketer

I 0 7 I 7 Day [B]itch

I 4 6 I Expert Opinion: Nicci Columbine

Sharon Piehl, tells us how she deals

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with traffic jams

38

Nicci explains how technology can be used to channel a marketing message through contact centres

I 0 8 I Expert Opinion: Michele Venter-Davies

I 5 0 I Expert Opinion: Lisa Basson

Horrible consumer experiences leave Michele wanting more

Lisa explains why it’s important to

40

I 1 0 I Top Media Performers Marketing Mix lists the best in print,

be innovative

I 5 2 I Expert Opinion: Nici Stathacopoulos

22

based on the latest ABC figures

Nici checks up on brands that are taking on the virtual world

I 1 6 I Experiential marketing There’s a reason why experiential

56

I 5 3 I The Green Shopper Workshop report back

marketing is being allocated a larger Marketing Mix delivers the highlights

portion of the marketing budget

of the Green Shopper workshop.

every year

26 I 2 0 I Expert Opinion: Yoav Tchelet Yoav makes web usability easy

I 5 6 I Expert Opinion: Nana Nkosi Nana believes internships are the way forward

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by michelle sturman BOOK REVIEW

The green marketing manifesto If there’s one book to read this year, this is it. The ‘Green’ movement is gaining momentum and if marketers want to keep up, they have to play ball. But not just any ball. A green ball. And play with the green ball properly – none of this ‘greenwashing’ stuff please. You’ll be busted and the fall out won’t be pretty. And before you start moaning saying that green doesn’t fit with marketing and consumerism, actually, yes it does. You just have to be clever about it. Grant doesn’t provide all the solutions in this book (incidentally, made from sustainable paper, etc, with a warning on the front cover not to put it in a plastic bag). Instead, he gives brilliant case studies on how other true green companies have made a huge success of their brands, and profits to boot. Grant also points out the differences in being true green and greenwashing as well as how to incorporate green into your everyday marketing activities. Here’s a simple breakdown of how this green thing works:

1. Public company & markets 2. Social brand & belonging 3. Personal products & habits

cosmetic and marginal improvements.’ Grant sees a huge opportunity to use green innovations to leave competitors behind. He uses Marks & Spencer’s extensively as a case study throughout the book, for its Plan A (ie there is no Plan B here). What it boils down to for marketing objectives is that our current lifestyles ‘need to change beyond recognition’, which impacts on all marketing, from everywhere. The role of a marketer now should be to change consumer behaviour. Grant says this can be achieved in a number of ways: Education; get being green out of being niche; extend green culture outside of the middle class; and make damaging practices unattractive. To achieve the greenest marketing, three things need to happen: commercial outcomes, environmental outcomes and cultural outcomes. To get to this point, a new approach to marketing is required, but as Grant points out, in the past 10 years or so marketing has (or should have been) going this way with a move to more personalised and community marketing. This

A. Green

B. Greener

C. Greenest

Set an example

Develop the market

New business concepts

Credible partners

Tribal brands

Trojan horse ideas

Market a benefit

Change usage

Challenge consuming

Set new standards/ communicate

Share responsibility/ collaborate

Support innovation/ culture reshaped

The green marketing grid

Grant does fully explain this table but just looking at it, it is fairly uncomplicated. What Grant does understand is that the concept of green marketing is a little more complicated and therefore a brand can run the risk of getting this horribly wrong, especially if it’s thinking of jumping on the bandwagon purely for profits. ‘The first step towards sustainable green marketing is to grasp that green issues are pointing to the need for step change, not

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makes the transition much easier. ‘We need marketing that does good, rather than marketing that just looks good.’ And there’s a difference between green marketing as opposed to marketing green, which is for NGOs, charities, etc. Marketers need to follow the former. Marketers need to make green normal as opposed to making normal green. Green marketing follows five I’s: Intuitive – making better alternatives accessible

and easy to grasp Integrative – combining commerce, technology, social effects and ecology Innovative – creating new products and new lifestyles Inviting – a positive choice, not a hair shirt Informed – lack of knowledge is what most distorts people’s behaviour. And you mustn’t be confused by the difference between green marketing and causerelated marketing. The latter is a link with a good cause that makes your brand feel good by virtue of association. Green marketing is ‘a deep set of reforms’. But you can do both. The above information is a tiny snippet of what’s available inside The Green Marketing Manifesto. It’s chockfull with case studies and examples of brands getting green marketing spot on, and those that failed. It’s also filled with useful hints and tips on how to get green marketing right, and useful websites to visit for more information on what being the ‘greenest’ really means as well as tons of references. There’s no excuse for not knowing how to truly go green when this book is on your reading list. It’s a roadmap to change. 

The Green Marketing Manifesto By John Grant John Wiley & Sons R344 (approximately)

ED’S NOTE

Picking a bone I have a T-Rex sized bone to pick. I am frequently approached by PR persons, publicists, PAs and organisations wishing to see their latest exploits in print. I am offered the ‘exclusive’ story or interview, and I happily accept, only to see that same story published in another title two weeks later! Clearly, there is no understanding of what ‘exclusive’ means nor is there any concept of editorial integrity. Here it is then, for those of you who still don’t get it: the Oxford Dictionary defines the term ‘exclusive’ as: ‘reserved for or limited to the person or group concerned’. As I have had more than a handful of frustrating debacles over this issue, I have decided to take drastic measures. I am no longer going to accept offers of an ‘exclusive’, unless you can guarantee me that the content you are offering will not be seen anywhere else (and if it is, then it won’t be for at least six months after I have printed it). Because I build this magazine’s reputation on the content within it, especially in an age that finds my readers simply ignoring anything they have seen somewhere else, If you are not going to respect my mission to make this magazine content-rich and unique, I am not going to like you or your ‘exclusivity’. These days, it seems that every Joe who has something to say about marketing wants to say it at once across every marketing-related medium, with no consideration of the fact that media are not their personal mouthpieces. If Joe wants to broadcast himself, he should get a blog. Magazines, especially niche B2B mags, are sophisticated media environments, with sophisticated readers who have high expectations and demands of their media. And while I do understand that I have a responsibility to report on industry-relevant events, opinions and expertise, I also have a responsibility to provide readers and advertisers with value. I will be ruthless in obtaining this balance, so don’t waste your time trying to woo me with an ‘exclusive angle’ on a story that everyone else will be getting! Right, now that I’ve had my rant, let me tell you a bit about the exciting stuff we have for you. This issue boasts Research 10, a special guide to research in SA (I won’t spoil it for you – check it out yourself!). And finally, don’t forget to check out our website www.marketingmix.co.za, which has taken shape beautifully (congrats to managing editor, Michelle, for pulling it off).

PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Hall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle Sturman e-mail: [email protected] EDITOR: Fulvia Becatti e-mail: [email protected] SUB-EDITOR: Jenny Bastomsky e-mail: [email protected] ADVERTISING MANAGER: Robyn Richen e-mail: [email protected] PRODUCTION: Spencer van Graan [email protected] SUBSCRIPTION ENQUIRIES: Daisy Mulenga e-mail: [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.

Database: List Perfect

3 938 Jul-Dec 2007

Marketing Mix Events Programme •

Footprint Awards Workshop: 23 April 2008

•

Young Adult Marketing: 14 May 2008

•

Marketing at-Retail: 20 May 2008

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

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DIRECT

Marketing direct workshop reportback The marketing direct best practices workshop used Assegai winners as a background to direct marketing campaigns that really work. Speakers at the conference were: Andrew Ambrogioni, managing director, Action Ambro’s Michelle Perrow, MD of Lesoba Difference Rick Joubert, executive head for Vodacom Kathryn Price McKay, creative director, Primaplus Christiane Duval, a director of the DMA

There are many ways to get creative with direct marketing and that includes being creative with standard direct mail – but it all boils down to what you do with the data you possess. “When you look at data, look at people; not the names and addresses that have made up that data,” says Andrew Ambrogioni, managing director, Action Ambro’s. He says that marketers need to go back to the simplicity of data and also let the creatives work on it to see what they can do. Ambrogioni suggests that even the plain old envelope can be redone. “No more labels on envelopes please – there are ways of personalising it,” he says. He suggests using the data in the simplest of ways, for example, determining whether the recipient is male or female and speaking to them differently. “There are still huge organisations who do not know who their customers are. As direct marketers, we need to find new ways of finding data. One easy way of doing this is to check out the new appointments sections in magazines and papers – here you’ll find a pic, job title, company and name and should be able to figure out close to what salary people are earning.” One of the most important aspects of a direct marketing campaign is integration. Michelle Perrow, managing director of Lesoba Difference, uses the Dictionary of Marketing Communications by Norman A. P. Govoni’s description of Integrated Marketing Communications (IMC): ‘a cohesive combination of marketing communication activities, techniques and media designed to deliver a

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coordinated message to a target market with a powerful and synergistic effect, while achieving a common objective or set of objectives.’ As Perrow puts it: “It’s not just the psychological relationship to the brand; you need to have depth, connective tissue – seeing the same message from the same medium is just boring.” Perrow suggests getting the sales team involved in an IMC campaign. “You must have everyone involved, IMC is a business imperative. At the end of the day, if you’re going to be multidisciplinary, the teams must sit in one meeting as one, as a brand team.” According to Perrow, there are three core areas – promotional mix of tools, the channels and data tools that are absolutely critical to success. Keys to IMC success include a synergistic strategy, tactical consistency and interactivity. But, one mustn’t forget the power of creativity whether or not it’s IMC, especially if it’s a direct mail campaign. As Kathryn Price McKay, creative director for PrimaPlus, points out, using a little bit more creativity would help. “DM must DO more. DM must BE more – it can’t just be about reward anymore. Consumers are weary of it and it needs to stop being formulaic,” says Price McKay. Price McKay’s own hidden camera research shoes that the envelopes that are opened are those that are more attractive and intriguing. “We need to treat envelopes as packaging. And then we need to treat the customer for opening the envelope.” The bottom line for direct mail is that if it looks like junk mail to you, it will to the customer.

At the other end of the spectrum, from the traditional to the new, is mobile advertising. According to Rick Joubert, executive head, Vodacom, mobile is twice as big as online in terms of marketing advertising and South Africa has over 90 per cent mobile penetration. And while cellphones are becoming increasingly sophisticated, for now, the mass market can be reached by simple voice, text and USSD. And you can be highly creative with mobile, according to Joubert. For the direct marketer, a service such as AdMe enables one to:  Select an audience that matches the target market profile  Maximise the advertising budget  Guarantee that the marketing communications are seen and heard by the audience  Integrate mobile and direct response mechanisms into the ATL and BTL advertising campaigns, instantly measurable for performance reporting. Still, there are many questions surrounding legislation as many new bills become law. According to Christiane Duval, a director of the Direct Marketing Association of South Africa, the marketing industry as a whole has adapted to legislation well, and it has also caused it to become more innovative. Technology, especially the use of Bluetooth in shopping malls and viral marketing, has a huge future. “E-mails, SMS and telemarketing can become centres of innovation as they are economically worthwhile but they will be affected by new legislation,” says Duval. 

by richard duncan EXPERT OPINION

The remuneration trap There are fewer more contentious and hotly debated subjects in our industry than agency remuneration. Agencies’ source of revenue is constantly subject to client budget cuts as well as increasing pressure from procurement departments to show annual savings despite increased workload and resource needs. The pressure on agency margins has therefore never been greater and this has led to the creation of inventive charging techniques that are designed to extract further income streams. Some agencies are paid monthly retainers while others have a basic monthly fee that is supplemented with a project price list. In both cases, this fee has no doubt been determined based on a projected headcount calculation. Some clients have avoided the murky waters of the monthly fee and have rather relied on the traditional, if not outdated, media commission formula from the days when there was still a line between below- and above-the-line. Few pay the type of rates that were commonplace in the past though, which has placed agencies under considerable financial stress. This situation is further exacerbated by internationally aligned accounts where the remuneration deal has been agreed in London, New York or Paris. In these cases, the percentage commission is usually woefully inadequate for the local agency office. For example, five per cent on a multi-million dollar account may work well in New York but the revenue that this deal generates in a satellite office in South Africa, where its total media billings might be half-amillion rands or less, barely pays for the agency to get out of bed in the morning let alone the types of resources the international brand automatically expects from its local agency office. Let’s face it, what would you expect from your agency if it was only earning R25 000 for the whole year? Would you expect it to spend hundreds of thousands of rands on your account because of its prestigious profile? This scenario may seem fictional, but sadly, it’s absolutely real, not that I would want to name and shame the brand concerned (the story may be absolutely out of context as perhaps its remuneration deal with its agency is fairer now. If not, then this is another example of the absolute remuneration crisis that some agencies face with their clients).

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Marketers have their own pressures of needing to meet increased sales targets and market penetration levels with less budget than before.

”

allow their agency to meet its own profit targets. Some have even ventured into the spirit of partnership by exploring payment by incentive (PBI) and offering rewards to their agencies when they meet certain pre-agreed sales, market share or profit targets. This is not an easy area to agree on as the means of measurement are sometimes difficult to set and monitor. Market share or sales could be one such measurement tool but as it is subject to many other influences beyond advertising, just how to isolate the impact of an ad campaign is a tough one to determine. Often, agencies and clients alike turn to a more subjective performance appraisal system and cross-tabulate the results with general business performance figures. The one area that can offer a more accurate measurement platform is the direct response category of direct mail and online communications. Here at least, the impact of a particular mail pack or electronic direct mail (EDM) can be finitely measured and the ROI calculated. What further underpins the remuneration challenge and makes the issue all the more important to resolve is that marketers expect a top-quality service and creative product. This in turn requires the agency to have top talent and this comes at a price, which is tough for agency management to find and keep unless it has the necessary funds. So every time a corner is cut on an agency fee, the coffer shrinks that little bit more, making it harder for the agency’s management to deliver the world-class quality offering that its clients demand. Marketers have their own pressures of needing to meet increased sales targets and market penetration levels with less budget than before. Unless things change, the big agencies will be forced to change the way they work and this could lead to a growth in start-ups and smaller players whose overheads enable them to offer a quality product at the price the marketer is willing to pay. At least then, marketers will get the expertise and talent they want. What will this mean for the bigger agencies out there? Time will tell. 

Richard Duncan It’s not all doom and gloom. Not by a long shot. Many marketers have developed well structured and fair remuneration deals that

founding partner, The Partnership Sydney, Australia

+61 41 154 9791 [email protected]

7 DAY [B]ITCH

Sharon Piehl, client services director, Inzalo Communications

28/01/08 Woke up at 3am with Bell, my seven-and-a-half kilogram cat, sitting on my bed with a present for her mom – a mouse. After taking care of the mouse and praising Bell for her hunting abilities, it was nearly time to get up. Every Monday starts with a team status meeting which involves updates on client progress, discussing new opportunities and flagging any items or issues that might crop up. Received final approval on a press release involving four parties, which is always a challenge and very rewarding when all the pieces fall into place (especially on a deal which has been three months in the making). Made it home in time for my reinstated ‘doctors’ appointment’ with Grey’s Anatomy – not my night to cook so I relaxed on the couch to watch McDreamy.

29/01/08 Woken by husband preparing to do Ironman training; he brought me coffee in bed so I could languish a little longer. Early meeting with a client who has only ever experienced negative publicity and has now approached our company to change the public’s perception of it, as well as build and maintain positive publicity. This has involved educating the client about the many-faceted arena that is publicity. Then a status meeting with long-standing client who has a good sense of humour – a nice way to end off the afternoon. Dinner with friends – so once again off the hook with cooking dinner.

30/01/08 Got up at normal time, 5.15am, and fed our two rather large Rottweilers. Enjoyed treating the cat to a back massage while she ate. Packed cooler box for the day and proceeded to office for early meeting; hoped to have time to do admin prior to the meeting but as I looked out of my driveway saw traffic stretching in both directions. Decided to take a different route to work, and ended up sitting in traffic till 7.30am, but not going anywhere. Turned around and took option C, which was now merely to get to the office in time for the meeting. Option C only helped me drive for 1km before once again hitting a traffic backlog. At 8.05am, I realised I was only a few kilometres from my front gate so I turned around to work from home till traffic subsided. Eventually headed for a meeting and that set the mood for the day with back-to-back meetings.

Made it back to the office in time to do a ‘song-and-dance’ routine for a colleague’s birthday. Decided to cook for my husband, and got creative with a creamy tomato lamb casserole. My husband cleaned as fast as I was cooking, so by the time I had finished cooking the kitchen was clean. Decided to end the evening reading The Monk who Sold his Ferrari, one of five books on my bedside table, which I aim to read.

01/02/08 Got up in the spirit of joining my husband in his training frenzy. Ran round the block, decided it wasn’t for me and kicked it back under the bed. Started monthly management meeting on time. A day in the office to catch up on e-mails and admin. Fridays are lunch days with the girls at the office; we catch up on how our week has been and what we’re up to on the weekend. Briefed our creative team on a March launch event for one of our clients; she needs to revert with exciting concepts for next week. Got home while the sun was still shining and took the dogs for a run by the river. Enjoyed a relaxing standard Friday night – movies and takeout on the sofa with my husband.

02/02/08 Husband did a three-hour training cycle in the morning, which gave me time to fit in a hair appointment. Treated husband to a massage at the local health spa, as he has had a hectic start to the year, and then we enjoyed a leisurely lunch at the Design Quarter. In the evening, went to a pink-and-white bling party – husband looked the part in white cut-off linen pants with candy-pink shirt. His bling accessory was a wand, which he used to great effect all evening, granting wishes.

31/01/08

03/02/08

Excited – I’m meeting a business leader who I find very inspiring. He has worked his way up through the ranks and truly understands the company; he is passionate and it’s not just about rands and cents. We’re putting together a 25-year commemorative book for his company and I’ve enjoyed doing interviews with the staff.

As this is usually our day to sleep late, we only got up at 7.30am, to hungry dogs howling for their breakfast. Caught up with the family over breakfast at Lifestyle Nursery. Did dreaded grocery shopping and spent the afternoon preparing for a busy week. Browsed through the Sunday papers to see if any clients were mentioned and had an early night. 

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by michele venter-davies EXPERT OPINION

Experiential experiences There are some exceptional experiential marketers out there – affording consumers brand experiences that are both unique and unforgettable. Brand interactions so creative that industrial theatre needs to up its game. A Saturday visit to a large wholesale outlet bestowed a theatrical indulgence second to none. For nearly 15 minutes we waited uncomplainingly in a lengthening queue at the Information Desk – courtesy of the Eskom experience we needed to add our names to the ’generator list‘. Like good South Africans determined not to become negative, we turned this into an opportunity to indulge in the ambient sounds of till operators discussing customers’ every purchase; inhaling the fragrance of spilt pickled onions waiting whiffily to be whisked away – tomorrow maybe; and savour the build up of clamminess in the absence of air conditioning (‘let’s admire them for saving energy,’ we said). And then... just as we reached the front of the row, the Customer Service officer terminated her personal cell call and announced ... ’I’m on lunch!’ No warning, no understudy in sight and no chorus line to take over. The leading lady simply hauled out her lunch and entertained us to a culinary rendering of ’Pampoen‘ as she shovelled it into her mouth... slowly... and glared. Then to top it off, in full view of the patrons now standing three deep, she delved into her bag, whipped out a product ‘with wings’ and flaunted it in front of us in all its glory as she disappeared. I will never forget the faces of the audience; the collective gasp ... and the mad dash for the exit before Act II began. A stopover for a stiff midday drink was now in order. Time to take solace in the arms of a hospitality brand claiming to be welcoming. As we waited (and waited) for a waiter (treated to the sounds of the bar fridge firing up for takeoff, sniffing the stale aroma of the bachelor’s party from the previous night and caressing the sticky table top), we observed a group of ‘movers and shakers’ enduring a brand experience they will, no doubt, share with many others. A drink laced with a fetid lemon slice was politely returned... only to be replaced by another bearing half a hairdo floating merrily on its surface. Management objected to the audacity of the customers to expect better service ... produced the bill... and asked the ‘fussy’ patrons to leave. A decision worth its weight in

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Every employee should be mentored to assume ownership of the brand experience required to satisfy consumer needs for products and services that provide sensory pleasure, variety and cognitive inspiration.

”

chicken is fresh and prepared on the spot. During the 40 minutes it took to find the clucking cutie, rid it of its feathers and doodas, and convert it into a Mediterranean delight, we had nothing better to do than observe the staff arguing over the horse racing card, scratch hardened thingies off the tatty tablecloth and view a flyer advertising specials that expired a week previously. What an experience. But... the brand is thriving! We know about ‘moments of truth’. Customer/brand interactions on a daily, mundane level are the real brand experiences and South Africa boasts some of the best experiential marketing companies in the world. What a shame that the brand managers who are commissioning these marvels don’t focus as much time and energy on the daily, often trivial experiences of customers. It is convenient to brand customers as ‘unreasonable’ or as having ‘unrealistic’ expectations, but customer relationship management is about engineering all contact points. Every connection should yield a positive experience. This is boring old text book stuff and basic common sense, but it seems that marketers are often too occupied with exciting promotions and initiatives to take a sensory tour of the realities surrounding their brands. Every employee should be mentored to assume ownership of the brand experience required to satisfy consumer needs for products and services that provide sensory pleasure, variety and cognitive inspiration. Brand interaction should simulate social interaction and consumers need to be able to relate to brands on an appropriate level of intimacy and mutual satisfaction. There is nothing gained from brand environments that provide no stimulation or deliver doses of hostility and irreverence. The old clichés abound... ‘treat the consumer as you would a guest in your own home’ ... so just excuse me while I eat alone in front of my dinner guests while indulging my intimate personal hygiene requirements before kicking the company out for daring to gag on the floaters in their drinks. 

Michele Venter-Davies ‘word of mouth’ marketing, one imagines. Next we soldiered to the ‘fast food’ outlet. Now, we do appreciate the promise that the

faculty head: Marketing and Advertising, AAA School (011) 781 2772 [email protected]

TOP PRINT PERFORMERS

Top print performers 2007 Looking through the ABC figures for 2007 has demonstrated what an interesting time print is going through. Most interesting, is that newspapers have increased circulation while the consumer magazine section has decreased circulation for the Oct-Dec 2007 period. One of the main reasons for the decrease in consumer magazines is that a number of magazines have been pulled from the ABC and out of circulation, but also the Media24 debacle has left many of its (successful) titles missing from the past six months’ figures. While a key focus is the Oct-Dec 2007 ABC figures, Marketing Mix also took into account a publication’s performance over the whole of 2007 from quarter to quarter as well as each quarter’s corresponding previous period. Job Mail: terminated Tribute: no submission SA Health Matters: no submission Shape: suspended Men’s Health: suspended Autolocator – Gauteng edition: resigned Caperush Magazine: no submission Drive 2.0: resigned Maxpower SA: ceased publication Xtreme Machines: resigned Kick Off: suspended

As a category, daily newspapers have increased by 70 331 to 1 957 415. Out of this, 1 528 436 are copy sales and subscriptions. There are 14 digital editions. The top five daily newspapers are: Daily Sun The Star Sowetan Beeld Isolezwe

98 565 513 291 97 135

(96 485) (494 875) (72 049)

The mighty Daily Sun may finally be slowing down but it’s still gaining significant numbers. However, according to publisher, Deon du Plessis, there is still huge room for growth. “In 2007 we had a good year…but we outran our distribution infrastructure. Hopefully, we’ve fixed that now. I think Daily Sun’s growth is far from over…it’s now not a question of whether we can grow but whether we want to. And when is enough enough? My answer: Enough is not yet enough. We’re still on the growth trail…if, of course, we can print enough copies and continue to distribute them on time.” Interestingly, the other daily that showed significant growth was also a tabloid, the Afrikaans Son. Ingo Capraro, national editor of Son says that

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Please note that all the figures in brackets refer to the corresponding previous period. For those who need a reminder, the following magazines were suspended, terminated, resigned, ceased publication or didn’t submit figures within the consumer magazine category for Oct-Dec 2007:

Monthly Golfer: no submission Sports Illustrated: suspended Fairlady: suspended InStyle SA: suspended (now ceased publication) Leef: suspended Sarie: suspended True Love: suspended True Love Babe: suspended (now ceased publication) Inwater Boating & Fishing: terminated

Daily newspapers

The top performers for 2007 are: Isolezwe 98 565 98 565 Daily Sun: 513 291 513 291 Son (Daily) 97 135 97 135

Circulation key Red: Subscriptions and single copy sales Blue:Total paid Green: Total circulation

Village Life: terminated Truth Magazine: terminated Ride Magazine: terminated Gymnast SA: no submission The Wisden Cricketer: resigned (now ceased publication) Art South Africa: resigned New Homes: no submission Baby Gro: no submission Beautiful Brides: no submission SA Builder: resigned

the tabloid is doing well because it’s tapped into the community in a way that tells it the newspaper cares for it. On top of this, last year saw a complete overhaul of layout in terms of look and feel. “Our news stories are tops – besides reporting on issues that directly affect – and often afflict – our community, we regularly come up with hard-hitting, breaking news. We also have some of the best sports reportage in the country,” he says. Distribution has also been increased, as has on-street awareness. The newspaper’s street selling points have grown from 80 vendors to 350 and PoS within shops and an increase in franchises have also helped. “We also believe in aggressive – and from time to time controversial – postering,” says Capraro.

Weekly newspapers As a category, weekly newspapers have increased by 37 197 to 729 760. Out of this, 729 756 are copy sales and subscriptions. The top five weekly newspapers are: Soccer Laduma Ilanga Son (weekly) Mail & Guardian The Post The top performing weekly newspapers for 2007 are: Ilanga 105 673 105 673 105 673 (100 906) Mail & Guardian 51 842 51 842 51 842 (48 292) Soccer-Laduma 321 986 321 986 321 986 (303 461)

TOP PRINT PERFORMERS

Ilanga is an institution that is over 100 years old, and continues to grow despite the introduction of other Zulu titles. According to the Ilanga team, the launch of the hugely successful Thursday tabloid supplement, Ilange Le Theku, has set new benchmarks for the upwardly mobile new generation of readers. Its Monday supplement, Lase Khaya has introduced a whole new set of readers to the newspapers, and grown the female readership. The Mail & Guardian has finally broken the elusive 50 000 barrier, so more power to it. A series of breaking news stories has definitely helped its circulation figures (SABC internal audit report, for example), and its powerful website has also more than likely contributed to increased circulation for the physical newspaper. As for Soccer-Laduma, this giant just keeps on growing by massive amounts. While the soccer newspaper doesn’t ‘do’ anything to increase its circulation except reader events and creative competitions, it’s the editorial that keeps its fan base constantly growing. “You have to talk to people in a language they enjoy. You can talk to them in a language they understand but they may not enjoy or engage with you,” says Peter du Toit, editor and publisher, Soccer-Laduma. Content is king and readers rule, is the editorial team’s mantra, and a focus on topical and interactive features has increased loyalty with the paper’s readers.

Weekend newspapers As a category, weekly newspapers have increased by 92 155 to 2 666 955. Out of this, 2 616 549 are copy sales and subscriptions. There are 13 digital editions. The top five weekend newspapers are: Sunday Times Rapport Sunday Sun Sunday World City Press

The top performing weekend newspapers are: Citizen 53 598 City Press 180 321 Ilanga LangeSonto 84 061 Sunday World 199 344 The Weekender 12 058

The weekend newspapers on the whole have done exceptionally well over the past year, increasing figures by almost 100 000. So while figures for The Weekender may not seem that impressive in the grand scheme of things, it is worth remembering that a) it’s a weekend newspaper and b) it’s a very niche newspaper and c) it has a very desirable readership. The Sunday World has increased figures substantially over the past year, indicating a market that is showing its desire to read. City Press, managing editor Mathatha Tsedu, says it boils down to really good editorial, including a new supplement for the Gauteng audience – a weekly eight-page tabloid. “A big point for editorial is a focus on politics, which is certainly interesting the readers and we’ve now got a really good investigative team that has found big scoops. We also have

a generally better coordinated leadership team, which means more eyes over copy and more clever copy. All of this adds to the appeal of the paper,” says Tsedu. A distribution drive through Media24’s Media Circulation Services24 (MCS24) has also helped – subscription drives and new initiatives such as getting through gated communities. Ilanga LangeSonto, although a relative newcomer to the weekend editions, is going great guns. Credited with being the first isiZulu language Sunday newspaper to be published in South Africa, within two years it has almost reached 100 000 copies. “The growth of our titles is ongoing; we have captured the new young upwardly mobile market as well as kept our traditional Ilanga readers. It continues to grow weekly and there is something in it for everyone; this is what makes it the Sunday paper it is. We have the right recipe,” says the Ilanga team.

Consumer magazines As a category, consumer magazines have decreased by 58 417 to 4 507 839. Out of this, 4 229 313 are copy sales and subscriptions. The biggest selling category (even with numerous suspensions and closures) is the Women’s General with 1 073 961 subscriptions and copy sales. The top five consumer magazines are: huisgenoot you Move! Cosmopolitan Idea/Idees A lot of the magazines that performed exceptionally well over the past year are very niche titles such as Noseweek, Wine, LIG and Africa Geographic. The women’s category and general entertainment suffered severe knocks, as did the sports and men’s category (although with the closure of Zoo Weekly/Weekliks, it may bounce back this year). Condé Nast House & Garden grew by 7.45 per cent (using the total

53 611 (incl. digital editions) 180 321 84 061 199 344 12 058

55 140 195 150 84 061 199 499 12 404

(52 217) (183 101) (70 291) (184 772) (9 368)

circulation data only) from the 2006 Oct-Dec period with steady growth of subscriptions of more than 25 per cent year on year, according to the team. “Condé Nast House & Garden has positioned itself as South Africa’s premier luxury lifestyle magazine. South Africans’ wealth and buying patterns are ever more diverse, and Condé Nast House & Garden mirrors and, in fact, leads that trend, as recently increased circulation figures show,” says editor Liz Morris. Also attributing its success to its editorial is noseweek. According to Adrienne de Jongh, advertising and marketing manager, noseweek’s retail sales increased by around 14 per cent on the previous year and are directly connected to the nature of the editorial, and the resultant publicity and media attention. “The big stories were the First Rand/Ansbacher fiasco and the resultant court case which noseweek

Vol 26 No. 3/4 I 2008 I MarketingMix 11

TOP PRINT PERFORMERS

The top performers in 2007 are: Drum Move! Longevity Wine LIG Golf Digest Condé Nast House & Garden Noseweek Africa Geographic Popular Mechanics Cosmopolitan Real Magazine National Geographic Kids

100 695 130 917 23 369 11 049 28 329 35 302 44 160 19 777 26 417 40 099 123 134 56 126 39 812

100 728 130 917 26 955 12 524 28 329 35 452 49 079 19 777 26 543 40 212 123 604 56 126 39 812

won. In addition, our articles on Judge Hlope and National Police Commissioner Selebi created huge media interest,” she says. Retail sales were also an important factor in the increasing circulation figures of Africa Geographic. As a largely subscription-based magazine, a focus on retail sales has paid dividends. “We are particularly thrilled with the ABC results for a number of reasons. Firstly, because they reflect our conscious and strategic investment in retail sales and, secondly, because the results help to underscore the increasingly mainstream consumer interest in matters of conservation and environmental concern,” says Tanya Caldwell, publisher, Africa Geographic. The strategic push to grow reach involved an increased print run to put more copies into stores as well more distribution outlets (in particular, Woolworths) and point-of-sales displays, window displays etc within main CNA stores. A change in distributor also helped according to Caldwell. Using the public’s awareness of environmental issues has helped to push copies. “Editorially, the push was assisted by the themed August 2007 issue on Climate Change which captured a far broader audience’s attention and resulted in a 70 per cent sell through. This issue subsequently sold out within a few weeks of going on sale in stores. Discerning marketers and advertisers take note!” says Caldwell. Public awareness and innovative reader interaction helped another magazine last year, this time in a completely different category. Popular Mechanics has made good use of increased interest in technology and driven this further with advertising and innovative PR campaigns (the most recent that made headlines was the man in a nappy walking through a busy

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

100 728 130 917 29 687 14 645 29 261 35 452 50 060 19 777 28 826 43 978 125 454 57 211 40 405

(79 895) (104 507 (23 279) (11 936) (26 181) (30 545) (46 589) (16 640) (25 158) (40 619) (113 255) (56 033) (33 108)

shopping mall). “Part of our success is due to ongoing contact with readers and advertisers through eye-catching print ads, edgy television commercials, trade shows, reader events, letters and online forums. “We also interact with readers via provocative point-of-sale posters, newsstand promotions and other strategies,” says Alan Duggan, editor and publisher of Popular Mechanics. “After five-plus years on the market, advertisers and media planners are finally acknowledging that Popular Mechanics is a perfect fit for this technology-driven world. More importantly, our magazine is making its presence felt among people who identify with our pay-off line, ‘Be the first to know’,” he adds. Cosmopolitan, on the other hand, has increased circulation by virtue of being such a forceful brand and providing readers with exactly what they want and expect. The ABC circulation figure for the period Oct-Dec 2007 is 125 454 (paid circulation figure: 123 604). This amounts to a circulation increase of around 11 per cent over the previous corresponding period. Its supplements always go down well and its October issue, for example, offered a sex booklet in a foil bag, which sold over 135 000 copies and its December issue was its biggest ever at 392 pages. Real Magazine is another title that has relied on its editorial to drive sales. With no specials, supplements or any advertising, its circulation has crept up mainly through word of mouth and well-targeted editorial as well as an increase in the distribution footprint. “This has been our best marketing tool and has driven circulation and growth has been a function of meeting the editorial needs of an underserved reading market,” >p14

TOP PRINT PERFORMERS

says Jonathan Harris, publisher, Real Magazine. National Geographic Kids has shown phenomenal growth for a hardto-reach market and has shown 21.7 per cent year-on-year growth in total paid circulation. “This strong sales figure excludes distribution of 250 000 copies via a special Engen marketing initiative over the December 2007 holiday period. This title continues to impress readers with fun and interactive components – its phenomenal subscriber base is testimony to this,” says editor Fiona Thomson. The inclusion of the Afrikaans magazine was also a contributing factor as it increased footprint and boosted sales, including subscriptions, according to associate publisher, Dene Strain. A number of covermounts throughout the year and ad campaigns (winners of numerous awards) helped to increase awareness and consequently push sales. Other initiatives included an Engen deal in December with an extra 250 00 copies, which were used for forecourt promotions and while this number is obviously not claimed in the ABC figures, it helped to boost awareness of the magazine countrywide. Other examples include providing a magalogue in Weg with a compelling subscription offer and competition as well as an awareness drive at the Klein Karoo Nasionale Kunstefees in Oudtshoorn during April for the Afrikaans edition.

>>p12

Consumer magazines

July-Dec

As a category, consumer magazines has decreased by 32 613 to 708 500. Out of this, 535 518 are copy sales and subscriptions. The biggest selling is Youth with 87 553 subscriptions and copy sales. The top five consumer magazines are: Hip2B2 Taalgenoot seventeen Your Pregnancy Soccerlife 442 The top performers in 2007 are: Fit Pregnancy 17 735 18 333 SoccerLife 442 33 477 33 477 Habitat 20 941 20 941 Your Child 17 864 17 864

18 333 33 865 21 093 18 414

(15 869) (31 314) (15 890) (16 023)

Being a niche magazine has certainly helped Habitat to increase its circulation, especially in light of the difficulties the print sector is facing. Fine-tuning the magazine in terms of updating its logo, fonts and layout has contributed but, more importantly, so has extended distribution. “Our association with Lew Geffen Sotheby’s International Realty saw 5 000 sold copies added to our ABC figure and this has undoubtedly helped. “We are hoping to institute a similar arrangement with a leading hotel chain and a financial institution during 2008,” says Colin Ainsworth Sharp, publisher/managing editor, Habitat. According to Ainsworth Sharp, Habitat should remain secure in the face of economic difficulties as its target market is the high LSM group. “We are very niched and the LSM sector we are targeting is largely unaffected by the current slowdown, but whether this will continue is a good question. However, I believe the high-echelon lifestyle advertising sector we target should remain secure.” Being niche has also helped Your Child, which is aimed at parents of kids aged 4-12 years old. “There are no other magazines in this market, so it’s not as if we were broadening the offerings in the niche, or trying to claim readers from other titles – we really had to create the niche as we went along. That takes time, but it seems that in the second half of 2007 we did make good inroads in terms of brand recognition and trial, and in attracting and retaining readers,” says Kate Sidley, editor, Your Child. For Your Child, word of mouth is especially important, as is the editorial. “Our marketing efforts are quite editorially driven, too, and we make sure that we keep them relevant to our readers and to our content. We also launched a Readers’ Panel, which has proved popular and has enabled us to include more ‘real- life’ stories and comments from readers,” says Sidley. Fit Pregnancy, on the other hand, simply put more magazines in more places and changed the frequency of the magazine. “We increased the number of outlets from 1 100 at launch to 2 300 and also frequency from four to six issues; our double issues performed well, and sometimes better, than our quarterly issues,” says Gillian Chapman, circulation manager, Fit Pregnancy. 

Custom magazines (only total circulation and corresponding previous period) Dish & Skottel 1 656489 (1 431 245) Dish Africa 236 613 (169 907) Edgars Club Magazine 899 681 (876 985) Foschini Retail Group Club Magazine 869 991 (834 198) Super Club for Kids 86 303 (65 675)

Custom magazines July-Dec (only total circulation and corresponding previous period) Jet Club 1 143 607 (1 124 912) Off-Limits 70 000 (22 882)

Custom Magazines Jan-Dec (only total circulation and corresponding previous period) Mercedes 84 007 (46 436) Mercedes Benz Transport 14 547 (9 020) Pezula 13 043 (11 472)

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

EXPERIENTIAL MARKETING

Experiencing brands better Experiential marketing is a brand’s commitment to going the extra mile to offer the consumer something far richer than advertising can ever deliver. VWV’s Group CEO, Abey Mokgwatsane, defines it as a multi-sensory intervention, which generally takes place in an environment where the consumer is happy to be engaged. And it’s growing. Experts point to research worldwide, which finds that an increasing number of marketing activities are, in fact, experiential. “If you consider trends around the world, a recent study by MICE Group PLC showed that 13 out of the 19 marketing activities conducted by companies are experiential,” says David Boon, group director of marketing and strategy, EXP. Experiential marketing is increasingly defined as something that needs to be combined with other marketing functions. “In the current volatile economic environment, I would suggest that experiential marketing should make up at least 60 per cent of the marketing effort,” says Melvin Chagonda, CEO, Primedia@Home. He adds that to ensure an above normal return on

investment, one needs to spend more on engaging differentiating marketing. As you cannot catch the consumer through traditional mass media the way you used to, it is obvious why experiential marketing (and indeed, BTL media) is growing. “Too much emphasis is still being placed on passive communications from both a brand and corporate perspective,” says Mokgwatsane. For this reason, he says, marketers are looking for new ways to reach the consumer. “On the other side, consumers and audiences are demanding more meaningful relationships with the brands they choose, and look to experience the brands rather than merely receive information about them.”

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

Experiential Marketing Forum’s 2007 Research: key findings (www.emf.com) 











The experiential marketing label has many definitions and companies are confused about what they will get from it One third of respondents consider it to be the lifeblood and core of their organisations, around which company philosophy is built. Half of respondents consider it a tool for building relationships, engaging prospects, stimulating trial and creating buzz. The remainder consider it to be a frontier (an approach they might explore depending on their courage or their clients’ needs). Many respondents think engagement is the strong suit of experiential marketing followed by giving a positive experience, increasing sales, and getting prospect’s attention. However, the respondent’s concept of the role of experiential marketing is dependent on how they use it in their work (ie either implementing or evaluating it). Campaign objectives accomplished by experiential marketing can include: making prospects more receptive to other marketing, fostering believability and trust, motivating consumers with the urge to respond, stimulating voluntary brand engagement, converting prospects to customers and transferring ownership of the brand to the consumer. Experiential marketing is most widely associated with the terms ‘sensory experience’, ‘interaction’, and ‘relationship’. Also, with ‘memories’. The biggest risks associated with using experiential marketing were: lack of control and limitations of the impact of event-based tactics; the difficulties of training and implementation as well as bad experiences, which will erode the brand.

Experiential marketing is made more manageable, thanks to a better understanding of consumer lifestyles, their purchasing behaviour and so on. “This has moved experiential off and beyond the stage to engagement strategies where the brand is required to communicate,” says Ricardo Gressel, business development director, VWV Group. But are marketers and agencies getting it right? The experts seem to think that only a handful of experienced players are doing this platform justice. “Clients seem to look at experiential as a short-term quick fix solution to a particular sales problem, and expect the experiential agency to offer them a tool kit of services that they can

buy,” says Boon. Furthermore, traditional agencies are now offering experiential services, but still give priority to traditional media (with true experiential being the afterthought, or something that is outsourced at the last minute). A poor understanding of what true experiential marketing is, and how to pull it off properly, is also a major issue. “We battle to sell it to clients via agencies; I think this is because it’s hard work, with intense logistics. It requires specific training and takes place in a very different environment. It’s far easier to deal with TV and radio,” says Jacques du Preez, managing director, Provantage Media. The average campaign brief does not address this >p18

EXPERIENTIAL MARKETING

platform either. This is why specialist agencies have developed strategies and methodologies that are more specific to this platform. Indeed, Du Preez is finding that more clients are choosing to go directly to specialist experiential agencies, instead of going through media planners and regular agencies. “In the South African context, we have a very strong agency culture that generally leads to strategic thought of a brand’s communication strategy. In so doing, priority is given to traditional media and the balance is allocated to experiential, not affording it a real place and chance in the budget to be part of and have a meaningful impact,” says Boon. The brief for an experiential campaign is unique, and, as Chagonda points out, it should be open-ended enough to create room for creativity. “Unlike a normal brief, the wider the opportunity for creativity, the higher the chance of a cutting edge proposal,” he says. The initial brief proposal should be simple, detailing the target market and the implmentable aspects. The second level of the proposal, detailing

>>p16

implementation, must be acceptable. “My advice is, if you’re able to sell your proposal to marketers, as a mimimum, ‘implement it properly’,” says Chagonda. There should be sufficient planning and preparation made upfront. Running an experiential campaign in conjunction with above-the-line advertising lends it credibility. “It creates pre-purchase dissonance, allowing consumers to knock off their concerns even before they purchase,” says Du Preez. But research indicates that, as with most media, integrated campaigns are the most effective. An integrated approach widens the reach and appeal of the campaign. “You tend to find that TV, radio, outdoor, door drops and newspapers are great for publicising the campaign,” says Chagonda. He has found that supporting experiential with these media results in a greater uptake. FMCG goods, as well as service innovations (especially in the banking and telecommunications industries), and bit ticket products, will benefit from aopting an experiential approach. Measurement of campaigns is not only

The Jack Morton 2006 Experiential Marketing Study: key findings (www.jackmorton.com) 

















Consumers don’t prefer experiential marketing to other media (it ranks third after TV and the Internet), but they do report that it is more influential, with 82 per cent of respondents agreeing that participating in a live event is more engaging than other forms of communication. 80 per cent of respondents agreed that participating in experiential marketing would give them more information than other media. 80 per cent of respondents agreed that they would be more likely to purchase after attending a live marketing event. 85 per cent of respondents agreed that participating in a brand experience is something they would tell others about. Integration with the Internet was found to be the ideal way to relay information about a brand or product, while integration between experiential and word of mouth best allows brands and products to relate to consumers’ interests and concerns. Direct engagement with the consumer (via experiential marketing) leads to spur of the moment purchases. 18-23 year olds are lifestyle driven and want brands to communicate to them through their interests. The 24-37 year olds demonstrate a strong affinity for experiential marketing in the workplace (particularly live events). The 38-49 year olds want brands to communicate their value. And 50-65 year olds, who have leisure time and money, want experiential events to teach them. Preference for experiential marketing by product category finds shoes in first place, followed by food and beverages, clothing, personal/beauty products, cars and household products. Women are significantly more influenced by experiential marketing than men (which is crucial, because women own or influence such a high proportion of purchase decisions). Only 33 per cent of employees are satisfied with the quantity and quality of communication from employers, although they want to be engaged, especially through events.

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

essential, but can be successfully implemented (by tying the campaign into a trade channel, for example, or to a model that generates sales leads). Chagonda maintains that ROI is an essential measurement, as is a strong call to action. “The feedback cycle is quick. Customers will tell you immediately what they think of your brand in the context of an experiential campaign,” says Du Preez. And these campaigns allow for adaptations and tweaks to be made to them quickly and easily (or at least, they should be flexible enough to allow for this). What are consumers looking for? During an experiential event, says Du Preez, you are swapping consumer time and attention for a few critical things: the latest news, an emotional connection and entertainment. Experiential marketing is not limited to external brand activities. Internal employee experience is becoming increasingly important. Likewise, the realisation that experiential marketing is an essential part of CRM. Some of the more popular trends in experiential marketing, says Gressel, include role play for research, industrial theatre, team building and personal recreational development through activities such as mountain climbing and basketball inside and pop-up retail. Looking ahead, agencies will need to invest in the right training and tools to enable them to develop effective strategies for clients, because it is clear a growing number of brands are recognising the importance of experiential. There is evidence of increased spending in this sector, and bigger budgets. Experiential will need to occupy a more prominent place in ongoing and integrated marketing campaigns, rather than be a shortterm solution or brand-booster quick fix. Clients and brands will need to be more proactive about getting their experiential partners onboard from the start to achieve this. And while events (live concerts, parties, branded functions etc) have generally been the first thing marketers think of when experiential marketing is mentioned, it is not the only option. Marketers will need to be more creative in using alternative and traditional media to create experiences around their brands. Measurement and evidence of ROI is something that experiential agencies and marketers will need to be able to deliver to their clients, as research indicates that this is a key obstacle in the uptake of experiential marketing. 

by yoav tchelet EXPERT OPINION

Web usability for dummies While reading through the latest web traffic statistics from the major South African publishers, one big question came to mind: How do they measure the usability aspect of their websites? I raise this question quite often with my colleagues in Europe and the US. Web usability is somewhat of a forgotten science when it comes to online media. What is web usability? Well, in short it’s the process of ensuring the best possible user experience on a website. In 2004 a company called Yahoo! established an interesting division, with the sole purpose of enhancing user experiences across Yahoo!’s websites. Aptly called the ‘Exceptional Performance’ group, this small team set about taking Yahoo! to another level of end-user experience. It measured a multitude of elements on its web pages such as the use of images, JavaScript, cascading style sheets, browser versions, etc. During the re-engineering and testing, the team at Yahoo! managed to achieve a minimum speed performance improvement of 25 per cent on its sites. This is just one example of what can be achieved when you focus on improving the end-user experience on your website. Web usability can get quite involved, but the golden rule is to focus on making sure your users have the best experience when visiting your site. This can be a matter of a performance increase to make the site load faster or it can involve a multitude of elements such as improving the navigation, speed, readability, layout and more. Many companies that have websites make the mistake of assuming that users will interpret the layout, and look and feel of their website the way they do. It is crucial to get the basics right and to keep an objective overview at all times. The advent of website analytic systems has helped to improve the accurate monitoring of user behaviour on a website. But alas, this is not always enough, especially when dealing with e-commerce sites and those that generate business online. Advanced page capturing technology, which shows user movement on the screen and across your website is already making inroads into the analytics market and when used correctly can provide a wealth of information. The combination of real-time analytics (which

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

“

Web usability, just like search engine optimisation is a never-ending process and the sooner you employ it as part of your overall web strategy the better your bottom line will be.

”

give you information while it’s happening, as opposed to waiting 24 hours for data from current analytic systems), with other technologies such as live support and other tracking systems give marketers a whole new way of tracking and understanding user behaviour online. It’s not enough to look at the web stats provided by your hosting company to reflect accurately what people are doing on your site or how they perceive the experience of browsing your site. Web usability is about bottom-line results. By employing not only cutting-edge analytics technologies, but also some old-fashioned

sampling methodologies, your perception of your website will be turned upside down, believe me! Recently I met with a large e-commerce company that was quite happy with its online sales and growth. Year-on-year growth of around 40 per cent is great and keeps investors happy. But when delving a little deeper into the user experience, I found that its growth could easily be 10 to 20 per cent more. A big problem it had, but wasn’t even aware of, was that users spent 60 per cent of their time trying to find products. That’s okay, don’t you think – it’s an e-commerce site after all? Not really, because 24 per cent of those users left the site before concluding their purchases, because they were not prepared to waste more time searching. This was confirmed when the search system was upgraded and within seven days, the average sales on the site increased by 18 per cent a day. Not bad, but I went even further, and through an analysis of user behaviour, and the time it was taking them to make purchases after they had found what they were looking for, I discovered that this also needed slight improvement. A new checkout system was implemented which cut the amount of time it takes to checkout in half – this resulted in another six per cent rise in sales after 10 days. It’s changes like these, and the analysis of every piece of information, layout navigation, images, look and feel, and much more, that contribute to the ultimate success and growth of your website and business online. Web usability, if done correctly, can be a time-consuming and involved process, but it will always generate results, whether you have a blog or a large e-commerce site. I always suggest building a web usability strategy in small steps and to slowly tweak each piece of the puzzle, so to speak. Web usability, just like search engine optimisation is a never-ending process and the sooner you employ it as part of your overall web strategy the better your bottom line will be. 

Yoav Tchelet director iLogic (011) 832 2800 [email protected]

RESEARCH 10

A note from the editor:

A note from the consulting editor:

W

R

here would marketers be without research? And what would marketing look like without research? For a start, would anyone know that black diamonds existed, for example, or the fact that kids actually like Mo the Meerkat? Probably not. Guesswork and (maybe) sales figures would be all we’d have to go on. And some might argue that this is enough for any brand to get by. After all, isn’t the whole idea behind marketing to sell products, regardless of how much jargon and marketing gumpf we can come up with in the middle of the night?. Essentially, brands would not be able to operate without some idea of what the target market looks like (how they walk, talk, eat, shop, play and sleep). Today, not knowing exactly where your target market is, and exactly how, when and where you can make yourself available to it means that you are as useful as a milk bucket under a bull. Mass marketing doesn’t work as well as it used to, at least not without a little help from below-the-line and alternative media. And figuring out how to manage all of that without making a mess of it requires a decent amount of research and insight. Plus, the board wants affirmation that the huge amounts of money it gives you each year is actually doing something tangible (sales, brand share and so on); and you can’t prove that without research. That’s not to say that research is always right or easy to carry out. It’s not. It is often a major investment (if it’s not, it might not be taken seriously) and it will sometimes tell you things you don’t want to hear. The only rule is to do it right. Research in SA is on par with global standards, if not better. After all, where else in the world is there so much diversity, across so many layers? Our researchers are developing methodologies and models that are unique and fascinating, and could pave the way for research around the world. It seems the major issues are around access to research and an understanding of how it works, what it means and how to use it. This is something that researchers and the marketing industry will have to address collectively. Moving forward, I hope to see more creative thinking around research and its application. I hope that Research 10 sheds light on the industry as a whole and addresses some of the questions and issues around research in SA. Please visit our website for extra content and information (with so much to say, we ran out of space in the magazine!). Enjoy!

esearch 10 came about after a discussion between publisher Terry Murphy and some industry stakeholders who felt that it was time for a

review of the research industry in the light of the fast-changing world that we live in. In South Africa in particular, we have seen enormous socioeconomic and political changes over the past 10 years and the good news is that there are more to come. In addition, the technology revolution is far from over and will affect the lives of every single person on this planet. At SAARF, a large part of our activities is to look at the future and try to anticipate the changes that we can expect. Due to the size, complexity and investment that our surveys require we normally work with five- or sixyear contracts. To think that we can accurately determine what the situation will be five or more years from now is, unfortunately, not possible. However, too many people think that future planning is a waste of time and that is why many countries and organisations find themselves unprepared for events that could have been anticipated. I hope that the glimpse that Research 10 gives you into the current state of play as well as the near future will be enlightening and will assist you to be better prepared for the inevitable change that is round the corner. Unfortunately, we also face other issues that will to a large extent determine our actions in the future. The dearth of skills and the flight of experienced people from our industry are both frightening and tragic. The fact that the South African schools system produces people that cannot add two figures together without the aid of a calculator (and sometimes even with the help of a calculator) means that most school-leavers are unable to become successful researchers. Numeracy, or rather the lack thereof, is probably the biggest failure of the new democratic South Africa and will haunt us for many years to come. Add to this the fact that many companies have closed their research departments and in the process lost the knowledge and skills accumulated over many years, which further exacerbates the situation. So, for all of us in research, the message is clear. It is not going to be smooth sailing. We’ll have to dig deep and adapt to the challenges to a much greater extent than previously contemplated. However, we still have a strong base from which we can operate and if, as an industry, we work together to overcome these shortcomings, we will be able to dodge the curve balls that will be coming at us from all angles. As the Chinese saying goes, may you live in interesting times! Paul Haupt CEO, SAARF

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

RESEARCH 10

Research in South Africa:

the big issues T

he research industry in SA is top class, with researchers in the know assuring

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

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

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

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

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

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

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

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

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

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

the differences,” he says.

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

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

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

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

research models are proving dynamic and relevant).

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

Looking at the research industry a little closer, it becomes clear that there are some issues in and around research. Research 10 explore some of the big issues.

the overall category data). “I think the criticism has to be put into its proper context. Most planners criticise the misuse of segmentation studies in marketing decision-making,” he says.

The high price of insights

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

Research can be very costly, and many brands have to plan and set aside a

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

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

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

post-campaign).

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

As Donald Liphoko, associate media director, The MediaShop, says, insightful consumer research that is actionable, adds value to the media decision-making

the database will skew your view on the market. “The paradox is that marketers are battling to be heard in the boardroom.

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

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

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

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

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

Benney, CEO, Ipsos Markinor.

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

Perhaps there is not sufficient understanding of research and segmentation

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

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

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

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

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

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

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

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

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

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

offenders in this case.”

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

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

The Ipsos Markinor researchers maintain that any research or segmentation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

to any great extent.

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

“Companies spend millions on research when there may actually be simpler, cheaper and more effective ways to get insights,” says Fulton.

found that some clients will poke holes in the research when it doesn’t yield the answers they were looking for, or when it doesn’t reflect what they think they already know. It all boils down to their understanding of the role of research.

Lack of understanding and skills shortage There is the complaint that some marketers and media planners are not delving beyond the basics of research data; that they are quick to use LSMs or the Black

But it goes beyond this – a lack of skills and training (on both sides of the fence) as well as high employee churn is contributing to the problem. For Gordon Patterson, MD, Starcom Media, there are three issues at the centre

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

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

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

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

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

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

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

profession of media planning and marketing is not marketed effectively

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

RESEARCH 10

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

Briefs fall short

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

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

who have the right skills.

a poor understanding of research and its role in marketing.

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

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

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

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

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

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

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

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

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

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

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

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

owners who do conduct research find their credibility is questioned.

There’s a definite gap.”

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

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

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

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

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

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

make decisions is not a priority,” he adds.

then perhaps the research companies should prepare a template which could

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

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

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

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

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

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

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

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

researcher would have a healthy mix of the two skill sets, he adds. However, marketers and media planners should be involved in training that gives them a

Working together

more comprehensive understanding of research.

The relationship between the agency and the researcher is also under the spot-

Employee training and mentorships are suggested as means to address the

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

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

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

employees experience.

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

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

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

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

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

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

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

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

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

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

forward with greater focus.

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

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

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

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

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

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

in-house research teams.

worked and what didn’t impact negatively on the industry. Some researchers believe that local marketers and planners need to up their attendance at

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

research presentations and seminars. But perhaps researchers need to change the way they are viewed. “We are

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

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

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

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

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

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

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

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

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

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

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

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

Planning programs and software packages make it easier to access existing research, and create media plans and campaigns based on this. But these are

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

often used without a good understanding of how the research behind the figures works. “In this case, the researcher or marketer is taking the research

A complex market

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

Of course, the complexity and dynamism of the South African population

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

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

explored,” says Maree.

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

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

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

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

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

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

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

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

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

factors they consider. Perhaps this is the way forward.

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

Bowles believes that media planners (and marketers) have inherited traditional techniques and definitions that they have to use, and for them to

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

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

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

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

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

more informed to make calculated decisions.”

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

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

RESEARCH 10

AMPs T

he SAARF All Media and Products Survey (AMPS) is an in-home face to face personal interview (conducted using CAPI, that is, Computer Assisted

Personal Interviewing). Respondents are asked questions relating to mass media consumption, ownership of motor vehicles, durables and household items, as well as personal items; they are also asked about their financial services, their personal activities (holidays, shopping patterns and Internet usage), as well as their product and brand usage or purchase.

The results of this valuable new addition to AMPS not only give us interesting information about people’s attitudes towards important issues, but, because it forms part of the AMPS survey, the data can be cross-tabbed with any AMPS product, brand or with the mass of media

workers, are sampled differently, in accordance with their gender composition. “AMPS is the official currency for printed media and is still doing a great job in determining reader incidence and the sustainability of the match between target

consumption information that AMPS contains.

market and reader audiences,” says Sarel du Plessis, CEO, Ads24 and current chair of SAARF. “Although AMPS is sometimes criticised, compared to similar

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

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

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

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

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

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

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

comparing well with international standards.

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

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

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

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

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

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

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

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

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

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

Nth dwelling is used. Clusters of two are used.

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

One respondent is selected at every address, using gender and age to ensure a proportionate sample. Inhabitations at mines and hostels, as well as domestic

Back to basics: LSMs D

uring the 1980s, marketers used to segment markets by separating them into either rural or urban markets. However, it was evident that the

differences between the rural and urban markets were disappearing fast. “SAARF then started looking for a segmentation tool that would be better than every single demographic,” says Paul Haupt, CEO, SAARF. Around this time, SAARF was approached by Eddie Schultze, of Unilever, with a new take on research. Schultze believed that SAARF was not looking in the right place, and he pointed out that ownership of TV, radio and motor vehicles, for example, would allow for interesting segmentations. When looking at ownership in different combinations it became possible to plot the population and segment it. SAARF decided to adopt this approach to segmentation, using mostly existing AMPS variables and the power of multivariate statistics. These variables were statistically ranked according to their discriminatory strength and the strongest discriminators selected. From 70 odd variables that were analysed, 13 were selected, and these were used to segment the population into eight simple groups. “We published this for the first time in 1990, and it was very well received. It really worked from day one,” says Haupt. “Over the years we have

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

>p28

any AMPS product, brand or with the mass of media consumption information that AMPS contains,” says Paul Haupt, CEO, SAARF. 

RESEARCH 10

>>p26

updated and changed the LSMs, continually improving them.

Today the SAARF Universal LSM is an excellent segmentation tool, and is the most widely used segmentation method in South Africa. It has also been adopted in more than a dozen other countries and a Pan African LSM has also been developed.” The strength of the LSM tool lies in the fact that it is the result of the combined efforts, money and research impetus of three key industries – advertising, marketing, and media. This combined force means that SAARF

Is race still a viable differentiator?

has the budgets to do research on a substantial sample. “It also means that we are able to do standardised research that compares apples to apples. In addition, and this is the most important point, it also allows for the research to be shared instead of each individual industry keeping its findings to itself. This is the basis of a common currency when all users have access to the

I

s race a viable differentiator, especially in a democracy that is trying to heal the wounds inflicted by racism? Is

this a suitable differentiator today? In the 1990s, SAARF was accused of racism in a case

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

that was taken before Parliament. The premise of the

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

accusation was that SAARF founded its research on the

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

distinction between the white, coloured and Indian (WCI)

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

and black populations. SAARF responded by offering to

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

remove race from its questionnaires and surveys. However,

given the thumbs up.

the industry realised that race was still an important and

However, SAARF argues that the LSMs are indeed

relevant differentiator, so SAARF was asked to keep it.

powerful segmentation tools when correctly used

“Race is still an important classification

and especially when used in combination with

variable in SA… but, like wealth,

other such tools (demographics, lifestyles, shopping

we should be seeing it as just one

behaviour etc). Another plus is that the LSMs are independent. “They belong to the industry and therefore there are no vested interests,” says Claire Milne,

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

technical support executive of SAARF. A further benefit is that the LSMs have become a common currency, and there is virtually no important survey in our

richness for marketing, advertising and

industry that does not contain the SAARF LSM’s, thus enabling our stakeholders to use the same measure in different research. To keep the LSM current, it is

research lies.”

updated every single year by reanalysing the variables that make up the index. The LSMs have been criticised by some marketers and media planners

Neil Higgs, director: Innovation and Development, TNS

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

Research Surveys, says that race and wealth are the most

LSMs are indeed powerful segmentation tools when correctly used and

ubiquitous differentiators in research and marketing in SA.

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

“Because of the way people were discriminated against by

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

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

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

patterns are dominated by the race group to which they

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

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

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

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

of the market.”

viation, service delivery and related social issues, not to

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

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

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

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

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

the social divide, he adds.

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

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

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

process information and make decisions follows patterns

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

that are the same regardless of race, culture or other

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

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

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

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

Another pitfall is over-targeting, says SAARF. The problem here is that marketers and media planners often over-target to the extent that they end up with too few respondents in their sample and then they criticise the research. Ultimately, the interpretation and logical use of the LSM tools is the

that worldview and culture may become more significant differentiators. “Race is still an important classification variable in SA… but, like wealth, we should be seeing it as just one

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

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

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

where the true richness for marketing, advertising and

workshops and training courses. 

research lies,” concludes Higgs. 

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

RESEARCH 10

TAMS T

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

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

ered electronically through devices called people meters that are installed

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

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

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

viewing behaviour of approximately 5 000 individuals. Each household is

new panel will be formalised.

equipped with a remote control device; each member of the household has their own ‘button’ on this control device, and they push this button to log in and

DStv-i

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

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

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

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

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

behaviour rather than a people meter).

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

According to Peter Mackenzie, managing director, Oracle Airtime Sales

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

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

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

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

household compliance is at a high level

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

The TAMS people meters were initially dependent on landline telephones to

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

communicate with the central computer system in Johannesburg. In areas

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

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

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

radius) were used to connect such houses to the nearest house with a landline telephone to transmit readings.

“There was no industry strategy for dealing with TV and measurement ratings,” says Mackenzie. In 2006, DStv started looking at overseas models and

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

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

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

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

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

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

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

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

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

have robust ratings for TV advertising,” says Mackenzie.

SAARF with a new way of communicating with households. Today, transmission of reporting signals takes place via GSM cellphones, landlines and Fastnet, making it possible to communicate with households

The TAMS panel currently measures a sample of between 1 500 and 1 600 households (about 350 of which have DStv). By comparison the DStv-i panel will measure 4 000 households. “These panels are passive – panellists

everywhere. “The improvements in communications technology have made the

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

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

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

SAARF began releasing results from rural households, in line

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

with its aims to provide a national

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

picture for television viewing. “This national picture has

negative impact. Industry expert, Brenda Wortley has been appointed

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

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

says Haupt.

audits will be made available to SAARF).

The switch to overnight ratings in July 2006 has also been a major plus for the TV industry in that it provides stations with a much more up to date picture of their audiences and therefore greater accountability. Nobody is quite certain about the future of TV audiences and trends. There

Mackenzie goes on to say that major channels overseas are developing similar models. “This means that we are in a leadership position and it underscores the fact that this is where the industry is going.” Planning tools will be updated to include the DStv-i data. Haupt points out that although return-path panels will play a role in future,

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

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

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

individual level as is done by the TAMS panel.

which will go ahead later in the year. Haupt and the SAARF team expect that the SABC, e.tv and even M-Net will apply for acquisition of channels. “And then in 2010, we will be faced with the 2010 FIFA World Cup which will need

It also involves complicated and extensive modelling of data and will not produce information that is comparable to that produced by the TAMS panel. “What must be pointed out is that a television media owner will now put a

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

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

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

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

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

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

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

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

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

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

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

The fact that there could be different currencies controlled by individual

a question of expanding the existing TAMS panel.

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

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

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

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

closely with SAARF in ensuring that comparable ratings for television channels

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

are evolved.

In the meantime, they are expanding the current TAMS panels to include children as young as four years of age (the remote device is easy enough for

DStv-i will begin recruiting panellists during the course of the year with a view to reporting data by early 2009. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 29

RESEARCH 10

RAMS S

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

OHMS: measuring outdoor media

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

represent total audience sizes as well as stations’ reach into the adult population. More specifically, the following information is gathered:

P

rior to the launch of SAARF’s electronic Out of Home Media Survey (OHMS) data, outdoor had been measured by AMPS, and relied on



Radio stations listened to during a seven-day period

respondents’ recall. As Paul Haupt, CEO SAARF, says, this data was not suffi-



Times listened to each station (for each day of the week, for each quarter

cient for the industry, since it did not allow for campaign planning. “It was not

hour of the day in a 24-hour period)

on par with other media. We needed to find electronic devices that would



Radio stations listened to in the past four weeks

measure outdoor and put it on a par with other media,” says Haupt. The



Favourite radio stations.

Npod has been eight years in development, since Nielsen and SAARF joined

A set of respondents taken from the AMPS study are used for RAMS. These respondents, as well as all the adult members of their household, complete a

forces in 2000 to develop the measurement device and get the pilot study up and running.

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

Today, the devices have been refined, and now track not only outdoor

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

media passed, but also the speed at which the respondent is travelling, and

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

the route people travel too. “During the development of the device we stip-

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

ulated that we needed a pocket-sized device, which would allow us to

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

measure pedestrian traffic and taxi commuters,” says Haupt. In Canada,

Gibson, Radmark marketing manager.

for example, outdoor measurement is a vehicle measurement, but here, personal measurement will be necessary, given the number of pedestrian and taxi commuters. “The actual fieldwork started in 2006 and we will

The RAMS diaries do however measure all radio

soon have a national picture of outdoor,” says Haupt. “This will make it possible for media planners to consider outdoor on a par with other media

listening independently of the mode of listening.

formats, and allow for campaign planning.”

About the study: In 2004, flooding was introduced, which saw all adult members of each respondent household keeping a Diary. This procedure more than doubled the sample.

The SAARF OHMS sample is drawn from adults with mains electricity (a sample base of 10 536 000 adults) and it forms a subsample of AMPS.

“Flooding was a good decision and definitely a step in the right direction. Although it resulted in a more robust sample, the big question is whether it’s enough. It still seems insufficient for an adult population in excess of 30 million. I would be inter-

The NPod has been eight years in development, since

ested to know how we compare with markets like Europe and the US,” says Gibson. He goes on to say that he believes electronic measurement would take RAMS figures to the next level (the Diary methodology is outdated). “I know that there have been talks about this, but the question is, when will it happen?” Paul Haupt, CEO, SAARF, says that we compare very well, and it is not true that radio diaries are outdated. “It is still one of the most widely used methodolo-

Nielsen and SAARF joined forces in 2000 to develop the measurement device and get the pilot study up and running.

gies in the world and in developing countries, it not only works very well, it is also extremely cost effective,” says Haupt. SAARF has been monitoring the development of electronic measurement of radio closely and like countries such as Australia, and have decided that it is too early and too expensive to venture into electronic measurement at this stage.

Fourteen site clusters have been developed with the help of Out of Home Media South Africa (OHMSA) members. In areas that were not included in the sample, modelling was used to generate results. Respondents’ data was only considered if it complied with certain stipu-

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

lations (it had to be accurate, two days’ worth of data per respondent). The

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

device measures ‘opportunity to see’, which is the defined visibility zone of

tested methodologies now in use,” says Haupt.

a particular site. This is impacted by the time of day, the size of the site, its

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

location and whether or not it is illuminated (and can be seen at night).

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

Pedestrian sites are also measured, but building wraps are not part of the

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

study as yet. “We are currently out on tender for the OHMS research for

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

2009 to 2013, and are awaiting a decision. If we get the go-ahead, then

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

we will look at including the wraps,” says Haupt.

The RAMS diaries do however measure all radio listening independently of the mode of listening. Gibson also believes that some media planners do not have time to sift

In January 2008, SAARF released the first set of results, for Gauteng and KZN. The results indicated that there has been growth year on year of between 20 and 30 percent, over the past five years (indicating strong

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

growth of the medium). The results will be published for the Eastern and

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

Western Cape later this year, and users can get a national view of outdoor

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

by the end of 2008. 

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

RESEARCH 10

Life stages and Media Groups Measure (MGM): T

he SAARF Life Stages segmentation tool was developed in 2000, and

MGM2: high exposure to radio, but at a lower level compared with MGM 1,

grouped the adult population into one of seven segments. This segmentation

since other media come into play. TV has increased coverage. Outdoor follows

acknowledges that each of these groupings has different needs and behaviours.

a similar pattern.

These can also be run relative to interests and activities, to paint a more holistic

MGM 3: limited Average Issue Readership (AIR) of the AMPS newspapers

picture of the market.

and magazines. Radio is at a high level, and TV has a greater reach.

The Life Stages study was followed by the Media Groups Measure (MGM),

All forms of outdoor are apparent, though there is limited exposure to

which was initially developed to assist people by helping them to identify the

bus shelters and trains.

best media mix to reach large groups of people, eg such as the government

MGM 4: radio and TV have similar high coverage. All forms of outdoor are

that would for instance like to reach as many people as possible before a

represented, though there is still limited exposure to bus shelters and trains.

national election. “It is different from LSMs, but enables you to reach the whole

Improvement in the readership of AMPS newspapers and magazines.

population by using a mix of different media types,” says Paul Haupt, CEO,

MGM 5: coverage for both TV and radio show a further increase. Readership

SAARF. Essentially, MGMs identify the best combinations of media to reach spe-

shows a considerable increase (weekly and monthly magazines as well as daily

cific large pockets of the population (it is therefore not really intended for tar-

and weekly newspapers). Outdoor extends its coverage.

geting smaller, niche groups). It comprises eight groups, the higher of which

MGM 6: TV and radio have very high reach. Enhanced reading of weekly and

will focus on multiple media (these groups reach the upper LSMS, which have

monthly magazines (there is a growing interest in print). The increasing levels of

access to media such as cinema, TV and the Internet). “This sort of segmenta-

urbanisation see the inclusion of moving media (buses, trailers and trucks).

tion has proven very useful in mass markets. The MGM takes the impact of the

MGM 7: there is evidence of some cinema and Internet consumption over the

different media into account,” says Haupt.

past seven days. Print readership rises further. Reach for radio and TV remain high. Continued growth in all outdoor types.

Description of SAARF MGMs

MGM 8: all media show an increase. TV is at its highest, and radio at its

MGM 1: extensive exposure to radio (especially public service broadcasting),

second highest (after MGM 1). More exposure to outdoor as a result of greater

and some exposure to TV. Outdoor advertising at stores and on billboards and,

mobility. Higher income and discretionary spending sees access to the full

to a lesser extent, on taxis and minibuses.

range of media options. Cinema and Internet are at a peak. 

Researching in Townships By Wendy Cochrane, director, Consumer Insight Agency (c.i.a)

I

n our dynamic and shifting landscape, this manically morphing place that is SA, townships have become a source of fascination to marketers. In the fallout

of the ‘Black-Diamond’ frenzy – they have become a key focus for almost every brief. A worrying aspect of many of these briefs is the reduction of the multidimensional people that inhabit these colourful spaces into one homogeneous ‘Emerging’ or ‘Township’ catch-all. To start, the needs, drivers and dreams differ as much in a cross-section of Soweto as they do in the entire country. What’s more concerning about this revealing choice of descriptors is that our industry appears to have collectively concluded that the entire ‘township’ (read ‘black’) market is either ‘emerged’, ‘emerging’ or at least pretending to be. Strategic responses to that thinking are to inundate the ‘target’ with aspirational messages and high-gloss goods and premium-isation strategies to ‘trade them up’ – ready or not. Few have awakened to the greater opportunities and more socially sensitive ideas that lie in simply innovating and even researching what people’s real needs are – at all levels of the ‘township’ spectrum – catering to the basic needs of mushrooming ‘have-nots’ survival. Last year we began an epic study that sought to address that. ‘The NOW project’ reveals deep insight into the diverse jigsaw of people that make up SA, and importantly explores the connections between them. We were asked to give hot tips for studying townships, and I guess in conclusion the most important would be to enter with sensitivity – with your eyes and ears open to the realities of the many different people who live there – to leave pre-conceived ideas from the last PowerPoint presentation on your desk, and to really listen to what people need. 

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

RESEARCH 10

Research in Africa A

frica holds huge potential for local brands – consider, for example, that

Coca-Cola’s Africa technical centre

Nigeria has the highest number of Internet users, at around eight million

The Africa Technical Centre was launched in Midrand in March, with a focus on support for the brand in Africa, including research. “The Midrand laboratory is one of five locations selected by the Coca-Cola Company as part of its global framework for analytical support to its operations worldwide,” says Racquel White, group communications director, Coca-Cola Africa. “Africa is a rapidly developing market with a wide range of needs and preferences. Matching our diverse portfolio with these needs and responding swiftly to them is both a challenge and an opportunity.”

(www.internetworldstats.com). Or that urbanisation and local economies are booming throughout the continent. As a result, the need for research in Africa is growing. “We are seeing less and less research being carried out by big multinationals in SA; there is a definite trend towards research in Africa,” says Bridget Fitschen, marketing director: Africa, Research International. She adds that mobile telecommunication companies as well as financial institutions are the biggest drivers of this research as well as the large multinational brands (Procter & Gamble, Unilever and Coca-Cola). Countries in East Africa prove easier to research.

seven of which are fairly large. “The 15 countries we include adequately represent Sub-Saharan Africa, and allow the marketer to compare like with like across political borders,” adds Boniaszczuk.

Challenges for research in Africa: The most obvious challenge is that each African country is different to its neighbours, and the environment and markets are unique. “The quality of fieldwork is a major issue, as it is not always up to scratch,” says Fitschen. “In most parts of Africa, the only way to do research is with pen and paper – technology in Africa is generally not very advanced.” Other challenges include the lack of adequate infrastructures; language, cultural and geographic barriers; the high cost of research due to the long distances that must be travelled, or the translators that researchers may need to work with. “There is a serious skill shortage among researchers in Africa,” adds Fitschen. “We have found that research in East Africa is straightforward and possibly easier to carry out than elsewhere,” says Fitschen, pointing to countries such as Kenya, Zimbabwe, Malawi and Zambia.

Nielsen carries out research in the African markets Nielsen highlights some important considerations when doing research in Africa: 

Retail channels and trade structures are different – adopt new methodologies to capture the unique trading environment rather than a one-sizefits-all approach.



Consumer segmentations are different (an income bracket in one country does not equate to similar buying power in another).



Understand the geographic and natural barriers to accessibility, climatic conditions hindering data collection during certain seasons and topography.

Research International was involved in the development of the Pan African LSMs, which were launched in mid-2004. According to Joe Boniaszczuk,



Understand language differences for wording sensitivity and structure.



Understand cultural and religious barriers for potential restrictions (ie

marketing science director, Research International, these LSMs make it possible

restrictions on women and children in certain areas). These could impact

to compare 15 African countries in Africa, and get a detailed picture of living

on the questions and scale interpretation, and gratuitous respondents.

standards in sub Saharan Africa. “Where AMPS-like data was available for



Understand political barriers as well as social structures.

these countries, we used that. For those countries that did not have this data,



Communication technologies differ and can impact on an agency’s ability

we conducted customised ad-hoc surveys. We now have the same data as is available in the South African LSMs, which measures between 50 and 80

to make spontaneous changes to questionnaires and methodologies. 

variables. We also use the same methods and statistics to score them,” he says.

Distances can be vast, and this will impact on turnaround time, so plan ahead.

Since mid-2006, the Pan African LSMs have been in the public domain, and



Clarify expectations upfront.

are therefore easily accessed by marketers. “They were developed by a consortium



A single research supplier is advantageous, ensures standardisation and

of companies, many of which were banking groups, and insurers, who wanted to see a finer discrimination of the richer end of the African markets,” says Boniaszczuk. The markets are segmented into 18 different groups, the first

comparability of results 

Research agencies with offices, expertise and experience in the specific country are your best bet. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 33

RESEARCH 10

Researching the youth markets: A

dults and youths are like chalk and cheese when it comes to research.



Do not ask questions as if they were at school.

Not only are their mindsets vastly different, but they respond to research



Give them a thorough explanation of what is about to take place.



Use humour intermittently.

methodologies in very different ways. “This population is very diverse in terms of age, cognitive capabilities, culture, socio-economic status of family, etc,” says Jason Levin, MD, HDI Youth Marketeers. However, there is a definite trend

Integrating youth research

towards researching this market, because companies are realising that the

“As a rule of thumb, if there is a youth component to your target market, you

youth is a valuable long-term market. “They are current and future consumers,

will have to be prepared to have a separate communication strategy aimed at

and heavy influencers of household purchase decisions,” says Quentin Weldon,

it, and possibly different product intrinsics,” says Weldon. This means a separate

youth research consultant, Youth Dynamix.

youth research budget.

There are a few things researchers should keep in mind when working with kids: 



HDI Youth Marketeers encourages organisations to establish a trend-watch-

Kids respond to emotional triggers and multi-sensory experiences. Asking

ing group, tasked with facilitating and conducting ongoing research. Consulting

them to chat about the functional aspects of your brand would be redundant.

and creating research societies is another option, especially useful in research-

Kids are tech-savvy, and have no hesitation in researching brands, so cannot

ing youths’ ‘headspace’.

be thought of as naïve. “They are not mini adults,” says Weldon. 



“This can be achieved by monitoring, observing and participating in relevant

Kids have a short attention span, especially since they have been exposed to

youth-orientated activities both in the street and online (such as blogging and

new media and intense multi-tasking. “Research surveys and focus groups

social-networking) along with engaging with papers, websites, magazines,

should be brief. Research techniques and the level of question difficulty

blogs, books, news, newsletters, TV, movies, radio, seminars, fairs, trade shows,

should be adapted,” says Hlengiwe Hlela, HDI Youth Marketeers researcher.

customers, clients, colleagues, friends and even family members, to list but a

Age appropriate techniques and materials are essential. Take into account

few,” says Levin.

the developmental level of the respondents and segment them according to



Hlela adds that a high level of inquisitiveness goes a long way. “Research

this. ”The easiest way to achieve this is to group them according to school

with young South Africans needs to be personalised and localised so that

grade,” says Weldon.

campaigns are relevant to them here.

Do not mix genders in group research. Particularly among younger groups,

“A youth-orientated consumable product should be evaluated sensorially by

researchers have found that boys dominate the conversations or try to

the youth within the target age group, as the taste that appeals to a child may

impress the girls with their antics. It’s ok to mix race when the children are

be rejected by an adult,” says Weldon.

from the same school. Says Weldon, a black child whose home environment







is LSM 6, but whose school environment is mixed-raced LSM 8, will relate to

Youth research

the LSM 8 experience in the same way as his white peers. He will not relate

There is a great deal of youth research available – which one to use?

to a black child who attends a township school.



The Sunday Times Generation Next study, compiled by HDI Youth

Kids do not have a rich vocabulary, so may need to be helped along without

Marketeers, targets 8-22 year olds; it will list their favourite brands and

having words put into their mouths. Visual material is helpful.

will also discuss the impact of global trends; the role of the youth as

Kids can be shy and easily intimidated; they may hide behind peers in group

influencers on brands and future markets; the level of youth influence versus

scenarios or follow the crowd. “Face-to-face or pair research is a viable

parental control, and their brand preferences. This year, the Generation Next

means to avoid this,” says Weldon.

event will be held on 21 May, with the Generation Next supplement due for

It’s essential to have a moderator with a strong rapport: “a good relationship

publication in the Sunday Times on 25 May. For more information, visit

is key with young people,” says the HDI Youth Marketeers team. Weldon has found that younger mediators seem to have an easier time connecting with

www.hdiyouth.co.za. 

kids. Likewise, female mediators often get the best response.

HDI Youth Marketeers hosts the annual Khuza Awards, which are youth communications awards. The judging panel consists of youth between 8 and 23 years of age, and they vote for their favourite advertising and communication messages. Visit www.khuza-awards.co.za for more information.



Youth Dynamix offers its syndicated Trax studies, which include Tyk Trax (0-6

Reaching them via mobile

years), Brat Trax (7-15 years) and Youth Trax (16-24 years). These studies

Research conducted via cellphone could be the next step forward for researchers who are trying to reach this market. The cellphone is becoming a personal companion that youths cannot live without. “Technology is very important in their lives. So if you can engage them where they are, and show them that you care enough to go where they are, you will get results,” says Weldon. Brands should increasingly be looking at ways to send their message to the youth via this medium. Likewise, researchers should be using this medium to get through to kids. However, cellphone and online surveys are not ideal for open-ended questions.

cover everything from family interactions and media/brand consumption

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

behaviour, to financial behaviour, role models and attitudes as well as brand literacy and lifestyle, technology and communications, etc. 

Youth Dynamix offers the Youthscapes report, released three times a year, which covers current and future youth marketing trends and fads. It discusses licences (toys and merchandise), FMCG and consumer trends, fashion, technology, new media, music and toys.



The UCT Unilever Trend Youth study, published in 2002, discusses local trends in the 7-24 year old youth market. It makes a comparison between local and global trends, and also suggests ways for marketers to reach this market. 

RESEARCH 10

The future of research T

here’s no doubt about the fact that research will remain a solid institution,

Surveys’ Igniters study, which identified influencers with large networks and a

and a bastion in the realm of marketing insights and campaign planning.

positive mindset.

Media fragmentation, globalisation and the rise of consumer control has

“If I was a marketer, I would rather have the opinion of the Igniters. Locally,

placed the consumer outside the reach of mass marketing research. However,

marketers are not using this enough,” he says. To bring this dimension into

ad rates and the demand for unique advertising opportunities are rising.

research would not require a massive change, simply a paradigm shift. “It’s a

Primarily, it seems that interview techniques and research methods will need to be adapted. Yet Michelle Boehme, technical manager, SAARF, believes that

worldview, that sees human beings as holistic and also in the context of others, with baggage that determines how they drive their lives,” says Higgs.

while there will be some changes to the measurement instruments and research methodologies, it remains important to keep research stable and comparable across the years.

“Marketers and media planners want more information,

Ipsos Markinor’s director of Marketing and Client Relations, Heidi Brauer, agrees: “There are two layers to this. You need solid science to underpin any research, and then you can adapt the method or the tools to make it more relevant.” Research 10 takes a look at how research will evolve to cope with modern challenges.

and they want another dimension on the markets. Demographics are not a good enough differentiator, so attitudinal research is another viable tool.”

No more phones Landline penetration is falling (from a low level of penetration). As far as researchers are concerned, telephonic interviews are dead. Marketers will need

Going online

to develop interviewing techniques and methods that don’t rely on the telephone.

This is one trend that has been picked up as a potential giant, and researchers expect that it will be more widely used, especially when cellphones enable an increasing number of South Africans to access the Internet.

“The industry needs to embrace a culture of using research,

There are ways to get around the challenges of Internet access. Nielsen, for example, is providing fieldworkers with 3G cards, which enable them to take

specifically qualitative research, conducted by real professionals so that there is an accepted standard and rules.”

online research to rural areas that might never have the chance to participate in the research. Marketers are urged to keep in mind that while the Internet is sexy, it will not work in every market. “You must marry what’s possible with what’s right,” says Mari Harris, director, Ipsos Markinor.

Hard to reach

Going mobile

Especially among the upper crust, researchers will struggle to get answers.

Mobile research, such as SMSes and bulletin boards is also set to grow, espe-

“The upper-income and affluent consumer is difficult to get hold of, yet they

cially because local cellphone penetration is high.

have massive economic means and are crucial to understand. They lack the time and the patience to be lured into a 55-minute interview, so you have to

The changing role of the researcher

think quite differently with them, but you also have to make sure that your

Look out for a move away from simple data, towards insights and information,

approach is consistent with the interviewing techniques you employ elsewhere,”

says Anina Maree, client services director, African Response. This in turn, will

says John Bowles, joint MD, NAB.

see researchers becoming information suppliers and knowledge consultants.

Another factor to consider is that people are too busy to take part in research.

One of the trends that has been identified is away from long-term brand

Also, crime has impacted on the extent to which people will open up to researchers,

building, and therefore, long-term research projects. “I expect we’ll see quicker,

says Bowles; research will need to take this into account. Perhaps research

funkier research projects,” says Tiaan Ras, manager: Marketing and Media

methodologies that require respondents to disclose personal details, such as

Intelligence, Ads24.

income or home address, need to have security measures worked into them.

Linked to this, expect quality control and research accreditation to get more emphasis (double-screen CAPIs are one to watch – they promise to take quality

Focus on personal networks and relationships

control of the CAPI interviewer to the next level). “The industry needs to

With consumers out of reach through mass media, marketers and researchers

embrace a culture of using research, specifically qualitative research,

will need to find interesting ways of reaching their target consumers. Targeting

conducted by real professionals so that there is an accepted standard and

the individual’s network is one way of getting to them without having the

rules,” says Bowles.

power of mass reach. Neil Higgs, director: Innovation and Development,

Look out for the increased globalisation of research agencies and brands.

TNS Research Surveys, is convinced that this is where marketers and

This will lead to global standardisations in research practice, particularly in

researchers will be focusing their attention. He points to TNS Research

terms of qualitative research methods.

>p36

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 35

RESEARCH 10

>>p35

New segmentations

Eighty20 has raised the issue of segmentation in South Africa, and raises the point that certain segmentations may be outdated. Other segmentation tools that may prove worthwhile: 

Household or dwelling (for which the definition

Mobile research methodologies:

The future of research? M

obile penetration worldwide is growing tremendously, and so is the use of mobile media. As marketers increasingly turn to mobile solutions to drive sales and build

has changed)

brands and brand loyalty, it is logical that the cellphone is viewed as a potential research

Rural versus urban (rural areas are being

tool. After all, it’s always on and carried close to the individual. It is a highly personal

erroneously disregarded, according to the

device, with capabilities, for example, WAP and Bluetooth that make it a powerful medium.

belief that they do not have roads and infra-

But more importantly, these devices could one day replace traditional research in the hunt

structures)

for consumer data. The type of data that could be collected from cellphones and cellphone

Flow of money as a result of migration and

networks is far richer than simple demographics, and can include usage patterns (frequency

urbanisation

with which users call certain numbers or surf the Net via their phones, which websites they



Home language

visit and when, etc).



Age and life stage (single mums versus work-





But is SMS or WAP research the right way to go? We look at the pros and cons of

ing mums)

cellphone-enabled research



Levels of literacy and education

The pros of mobile research:



Psychographics



A cellphone is always on, so you’ll get a quick response



Income and its sources



The cellphone offers mobility, allowing the researcher to reach the participant anytime,



Expenditure.

anywhere (within the bounds of cellphone reception, of course) 

Measuring TV ad viewing

Wide reach across demographics (everyone from the LSM 2 mine worker to the LSM 10 businessman has a cellphone)

The number of homes in SA with a PVR remains



You can include everyone who has a cellphone

low, but adoption figures are promising. This raises



Immediacy – the consumer can be reached at the right moment for feedback or an

questions about TV ad viability – are audiences going to watch TV ads?

opinion, and results can be measured almost immediately 

Nielsen Media Research in the USA set about

Additional information, such as GPS location and cellphone use patterns, can be collected to create a clearer picture of the consumer

measuring TV ad audiences in an experiment that



Great for reaching otherwise hard to reach customers

set the US TV industry abuzz. Cable networks



SMS can boost response rates to mobile questionnaires or surveys, especially among

argued that certain elements of their advertising

the 18-25 year olds.

(for example, crawlers – the channel logo that

For these reasons, mobile is great for customer feedback or customer satisfaction

slides in and out of the screen) make their ads diffi-

surveys, opinion polls, ad recall surveys and diary applications.

cult to measure, so the measurement would place

The cons of mobile research:

them at a disadvantage. Another argument against



the measurement was that live TV cannot be meas-

There’s no guarantee that consumers will reply to survey questions or will report all the information they need to report

ured alone – PVR viewers might actually watch ads.



It is easy for the user to tune you out

But ad agencies and TV networks had called



If the consumer has not opted in, it’s spam



If it’s not timed right, it won’t get the (right) response



There are no standard procedures in place for conducting mobile surveys, and no

for such data and metrics to be made available. Big research trends to look out for:

recommended methodologies



Employee workplace satisfaction



If the consumer has to pay to take part, they might choose not to take part at all



Green trends and the green revolution



SAARF researchers contend that random sampling will not always be possible; mobile



Africa



Shopper research and triggers for purchasing



databases do not indicate physical address, for example, and this is a problem.

decisions

Will cellphones become smarter?

Attitudes: SAARF’s team of research

Research was carried out by MIT’s Media Lab over the 2004-2005 academic year to

specialists believes that attitudinal indicators

try to evolve mobile devices that are not only aware of one another, but are able to see

will be included to a greater extent. They are

and hear what the user sees and hears. The MIT Reality Mining Project is putting various

set to develop this in their segmentations.

new technological applications to the test in this experiment, which will eventually enable

“Marketers and media planners want more

the mobile device to make inferences regarding who the user likes and knows, and what

information, and they want another dimen-

they may do next. Basically, this is a system of sensors which will learn patterns from the

sion on the markets. Demographics are not

user’s behaviour, and while these sensors are somewhat advanced, it won’t be too long

a good enough differentiator, so attitudinal

before tmobile devices will be equipped with them. (Visit http://reality.media.mit.edu for

research is another viable tool,” says Paul

more information)

Haupt, CEO, SAARF. Quantitative methods will evolve: for example, shopper observation. 

What does this mean for researchers? Imagine being able to predict the movements and behaviours of your target market as well as having access to their communication patterns and preferences. 

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

RESEARCH 10

Internet Research T

here is still wide debate about Internet/broadband penetration in SA. Website Internetworldstats.com reports that in December 2007 South

The anonymity of discussions promotes more

African Internet users numbered 5.1 million. The Internet is ideal for reaching both mass markets as well as small niche groups of people who have formed a community around a particular interest or issue.

Why do Internet research? According to the experts, it’s cost-effective (no interviewers, mediators or fieldworkers to pay) and saves time. Research results can be delivered quickly and easily, in a variety of formats. There are no geographical limitations and difficult to recruit targets are more easily tracked. The dynamic between respondents is

personal, honest responses as well as more thoughtful and in-depth answers than might be generated in interviews. The methodology is cost-effective and also time-effective. Instant transcripts are an added benefit and time saver.

objective and everyone has an equal opportunity to participate. It is dynamic, so errors can be addressed on the fly. Sensitive issues can be dealt with in an environment that facilitates confidentiality and privacy, which means you’re

be broken into sections to avoid the user having to scroll, and progress

more likely to get candid answers and insights. And the multimedia capabilities of the Internet make it viable for test material to be shared easily. Plus, you can

bars should be used. Avoid pop-up surveys. 

Technical barriers include a lack of knowledge of computers, the Internet,

handle a large number of respondents with ease. Incentives (such as cash

statistical software or databases, for example. Moderation can be difficult

vouchers or online shopping vouchers) are also easily integrated to motivate

(some respondents may post responses in the middle of the night).

people to take part

Likewise, it may be difficult to follow a discussion if it is not tracked chronologically.

However, the global scale of the Internet means that there are unique challenges for research (someone from the USA might be volunteering to answer



Mobile devices, such as cellphones, are increasingly becoming Internet enabled. This will have implications for Internet research.

questions about South African products and services, for example). The Internet also allows for a variety of approaches to be used (be it surveys, panels, web forms, chat discussion groups, etc) and tailored to meet research

Evaluating online qualitative methodologies

needs. However, experts stress that the technology needs to be understood to

Andrea Chemaly and Corette Haf presented a paper at the 2007 SAMRA

be used effectively; likewise, simply creating a web form with no understanding

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

of research is risky. The methodology should suit the research goals, the context

online qualitative research. In this paper, they evaluated online qualitative

and the desired outcomes.

methodologies, and found that the most commonly used tools include:

Issues with online research: 



real-time focus groups (synchronous live chat)



bulletin board focus groups or discussion boards (asynchronous, evolved

Sampling can be a problem, considering that respondents need to have

from message boards)

access to the web as well as sufficient literacy and comfort with the research



tools in question. Measures must be in place to ensure that the respondent is,



in fact, a valid research subject, that there is not a bias as a result of faulty





multimedia online focus group (using webcams and phones or VoIP); and a ‘bricolage’ of them all. The researchers argue that bulletin boards have the most potential locally,

recruitment, and that there are not multiple responses from the same respon-

given the low incidence of Internet access in SA. This platform allows the user to

dent, for example.

log in and take part in the discussion at any time they wish, for as long as they

There is no control over the respondents’ environment at the time of the

wish. The discussion usually lasts for three or more days and involves between

research.

15 and 20 respondents. These respondents will visit the board at least once a

Responses need to be managed and monitored. Non-responses or incom-

day for the duration of the discussion.

plete responses are a problem, and there must be mechanisms in place to

The anonymity of discussions promotes more personal, honest responses as

counter this, for example, e-mail reminders, pop-ups that guide the user

well as more thoughtful and in-depth answers than might be generated in

through the questionnaire, etc. For many qualitative researchers, the

interviews. The methodology is cost-effective and also time-effective. Instant

absence of body language and non-verbal cues are problems.

transcripts are an added benefit and time saver. The researchers found that online research works best for markets that are



It requires adequate computer skills.



Anything that needs to be touched, tasted or smelled, for example, must be

familiar with and comfortable using the Internet, and regard it as a part of

shared before the study.

regular communications.





For Internet research to be ethical, prior informed consent must be

The researchers say that there is software available to ensure the security and

obtained, and the right indemnities secured. Incentives must be ethical too.

integrity of an online session. This software also makes it easier to review and

Privacy and confidentiality must be guaranteed and made clear, especially

observe the responses (it highlights new responses, for example, or prevents

where respondents disclose personal details and opinions.

participants from seeing responses before they have been posted). Passwords

The design of the research is also important. Drop-down menus and open-

facilitate access and also protect the virtual discussion room. The moderator is

ended questions should be avoided; long questionnaires or surveys should

therefore able to interact and manage the discussion. 

Vol 26 No. 3/4 I 2008 I MarketingMix I RESEARCH 10 37

RESEARCH 10

Shoppers – where’s the money? By Keith Stevens and Stephen Mawbyt, who head Added Value SA and Glendinning Management Consultants Africa respectively. They have just introduced an internationally proven consumer:shopper joint research and activation offer.

Truth One: Shopper’s only buy to meet the needs of consumers. Truth Two: If only 6 per cent of shoppers even write shopping lists and 70 per cent of purchasing decisions are made at point of purchase, then the consumer is where the need is, and the shopper is where the money is. The shopper decides whether to buy your brand or one equally acceptable in their repertoire. The shopper decides whether to buy the pack size that drives your margin mix or the one that has been commoditised by constant deep cut-price promotions. For all of us in SA, if we are not driving brand and pack mix we are not maximising the value of our brands. Globally, this thinking is driving brands and retailers to turn their focus to the shopper and the shopping environment, and adjusting their marketing and sales spend to drive better return on investment. Most marketers know that if they don’t fight the modern battle for market share in-store and on-shelf, competitors will steal share fast. SA, while a little behind in taking action on this trend, is catching up fast. The South African market is still very much in a transition phase. Both brand owners and retailers are trying hard to adapt to major changes in shopper location, behaviour, attitudes and spending. A burgeoning middle class is changing the consumer landscape and buying behaviour. Shopper locations are changing too as many consumers migrate from the townships and, at the same time, retailers expand into the township environment. The importance of integrated research and activation planning becomes

Make decisions about marketing and sales spend (eg the mix of above or below the line to best drive brand

apparent when one considers the role of the brand in the shopping mission. Research shows that consumers are not typically brand focused in their shopper headspace. Rather, they shop according to location based on convenience, and then occasion and then category, often deciding in-store which brand or

performance to deliver the objectives you have set in the

product to buy.

business) and how you want to track ROI.

Integrated consumer and shopper insight allows businesses to:

If marketers could understand specific shopper missions, shopper repertoires



Segment and understand both consumers and shoppers in one study.



Identify where potential margin and profit pools that can accelerate brand and market growth are.

and behaviour within the larger context of consumer insight, they would have a far more powerful and strategic set of data from which to plan.



and shoppers separately, mostly commissioning separate sets of research to under-



have set in the business) and how you want to track ROI.

the wider market, typically to drive marketing strategy, while another is commisHowever, both don’t necessarily integrate, which leaves businesses with

Make decisions about marketing and sales spend (eg the mix of above or below the line to best drive brand performance to deliver the objectives you

stand them. One set is commissioned to understand and segment consumers in sioned to understand shopper behaviour, typically to drive sales activation.

Create one, integrated marketing and sales activation and investment agenda.

Traditionally, though, marketing and sales/channel teams approach consumers



Form more mutually beneficial relationships with retailers through a deeper understanding of their shoppers’ behaviours.

marketing and sales activities that are potentially out of sync, and certainly not

On this last point, knowing how each retailer’s shoppers buy a specific

working in tandem. This means return on investment is compromised and for

product or category means brand owners can invest in more effective trade

major brands this is a significant brake on performance and profitability.

partnerships across a consumer’s repertoire of shopping occasions. It also

The issue becomes even more complicated when you consider that the ‘shopper’ is often different to the ‘consumer’ and people behave differently when ‘shopping’ as opposed to ‘consuming’. Classic examples are mother and

means brand owners can identify where to raise or cut investment across retailers to drive a better ROI for their brands. What this means is that the in-store arena is practically uncharted territory in

child categories, people buying for social occasions, gift buying, pet care and

terms of making sure consumer marketing plans are going to be effectively

alcoholic drinks. So, the trick is to understand the shopper’s needs, behaviours

activated for the shopper. For those brand owners who get active in this space,

and motivators, and how these link to the consumer’s needs, behaviours and

share growth and ROI are the big prizes versus competitors who cannot or will

motivators.

not evolve to win the new consumer: shopper reality. 

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

AIRPORT MEDIA

Airport marketing: huge impact amidst the challenges Airports continue to attract big brands, especially those that are looking for exposure to a market that has the cash to travel. This includes our growing middle class, thanks to low-cost airlines. Tourism into and within SA is enjoying a steady rise: SA Tourism reports that in the third quarter of 2007, total foreign arrivals in SA numbered more than two million, having grown nine per cent on the corresponding previous period. The number of Asian and Australian visitors is growing the most, followed by those from the Americas, Africa and the Middle East respectively. And with the 2010 FIFA World Cup just around the corner, it looks like these figures are set to grow. Certainly, advertising in airports is seeing growth. According to Julie Mansour,

“

ACSA airport stats and figures www.acsa.co.za Total passenger traffic February 2008

At the end of the day, if a brand advertises in a visible and relevant space at the airport, they will get the desired exposure. Ryan Cohen, Wideopen Platform

”

general manager, Alliance Media SA, there has been a definite growth in overseas clients and brands signing up or extending their contracts. “Clients know that this is the right time to advertise in airports,” she says. Ahead of the 2010 FIFA World Cup, seven out of ACSA’s nine airports countrywide are undergoing full-scale renovations (usually, only one airport undergoes this sort of makeover at a time). This is having a major impact on the

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

marketing and advertising in the airports, says Suzanne Roberts, joint MD, Airport Media.

Logistical changes With the renovations underway, the buildings, facilities, environments and services are changing on a daily basis. “In the international arrivals hall, there is very little in terms of adspend. The light box or banner that was there just yesterday is gone today, and nobody can say for sure

when it will be back (or if it will be back in that same spot, for that matter). The challenge is to find locations that are suitable for relocating existing and new clients from now until 2010,” says Roberts. It looks like, across the board, media owners are looking for temporary opportunities, or alternative sites. The large format media positions at the airports that are sold to brands providing blanket coverage across an environment have been interfered with very little by the ongoing construction, says Ryan Cohen, sales director, Wideopen Platform. Construction site type platforms (scaffolding wraps, for example) present a great opportunity for brands that require exposure and provide landlord’s (ACSA) with an additional source of revenue during a time where media income has gone down due to continued building resulting in the interruption of a number of media site locations. But Ryan Roux, DMM development manager, Wideopen Platform, has found that clients are somewhat nervous about committing to these projects, even on a short- to medium-term basis. “The positions are large. And while the media costs are not prohibitive, given the size of the ownership that the client gets in return, the production costs are steep. Plus, I think clients are nervous about what is happening in this environment,” he says. Cohen goes on to say that while the construction site wrapping is also

AIRPORT MEDIA

Total airport passenger traffic: financial year-on-year trends

a cash stream for the contractors and developers they are under tremendous pressure to get their job done as a top priority, which is first and foremost completion of their building project on time. Often penalties for late delivery are far greater than their share of the revenue earned for the branding of the construction site. As Roberts points out, the problem is that the renovations are not exclusive to one part of the airport. Take OR Tambo International Airport, for example; the changes happening there are not just within the airport building – the entire road system in and around the airport has to be adapted to make provision for the Gautrain. Roux says that in this case, with more than 17 different project teams working on various projects around this airport, it is a huge challenge trying to stay on top of everything. “The logistics and the large number of contractors make it very difficult to work there,” he says. He adds that Cape Town International Airport has proved much easier to deal with from this perspective. ACSA does provide media owners and concessionaires with a heads up on changes to infrastructures, and will give them first option of suitable alternatives. Cohen says that, as a result, his campaigns have not been impacted detrimentally by the changes in and around the airport environments. A recent FNB 2010 countdown clock installation across the country’s airports ran smoothly. “In general, the level of efficiency was fine, whether we were dealing with an airport in Upington or OR Tambo,” he says. The healthy variety of

brands that are still signing up to advertise in the airports, albeit cautiously, are indication enough for Cohen that this is still a thriving environment.

The acquisition model has also changed Shamendran Naidu, site acquisition and development manager, Wideopen Platform, says, logistical challenges aside, the site acquisition model has changed dramatically too. ACSA have now invested in the capital outlay for media positions and are leasing these sites out to concessionaires. Because these are long term contract, says Naidu, many concessionaires are cautious to sign up, given the uncertainty of the airport marketing

www.acsa.co.za

environment, while it still one that has the largest viewer ship and the greatest concentration of higher LSM by far. “It’s also a case of ‘what’s going to happen after 2010’. There is some scepticism. Part of this is the result of existing owners trying to secure alternatives, while new media owners are trying to secure sites. “ACSA is trying to accommodate existing owners first, but this is holding back the new owners,” says Mansour. And then also the fact that globally – not only in South Africa – we are experiencing a economic downturn and the first budget that is cut when times are tough is advertising spend,” he says. On the flipside, the new model has created opportunity for new players (including small to medium BEE companies). Naidu also mentioned that while these opportunities seemed lucrative and bringing promise of great financial rewards, there is definitely the risk of

AIRPORT MEDIA

Total international passengers: financial year-on-year trends

constantly delivering on media positions managed by concessionaires. The cost demands being made by the airports is one issue that has been highlighted by media agencies. Generally, says Naidu, the airports get 50 per cent of the ad revenue generated by a site. But he says that for some of the new sites under tender, the airports are asking for R300 000, which means that the agencies have to try to sell the site for double that fee if they hope to make any profits. (ACSA was not available for comment at the time of writing). But do marketers and media buyers know what it takes to stay on top of the changes? The airport environment demands that marketing does not impede, for example, passengers stampeding through the arrivals or departures lounges should not have to try to get around a pop-up banner or a promoter handing out samples. “The question is, do marketers know exactly what the dynamic is during rush hour?” says Roberts. She points to Lanseria Airport, and the growth in domestic travel, which has been boosted 15 per cent, thanks to low-cost airline travel. Small businessmen are taking advantage of this, so early morning and evening flights are jam packed. “This has certainly benefited Lanseria Airport,” says Roberts. “Since Kulula increased its routes to include Lanseria, the figures have increased from 170 000 passengers per annum to 600 000 in the past year.” And yes, the increased air travel and the promise of newer, more modern, world-class facilities is good news. Traditional sites are being replaced with top-of-the-range light boxes, LCD screens, etc, putting our airports up there among the world’s classiest. “Increasingly, local airports are attracting high networth individuals in their private jets as well as scheduled passengers – the diversity is attractive to marketers,” says Debbie Lea, joint MD, Airport Media. But for now, things are somewhat in limbo. The airport advertising concessionaires have little knowledge at present of what platforms and opportunities will be available once the revamps have been completed. It’s really a matter of ‘we’ll have to wait and see‘. Cohen says that he has viewed a simulated video impression of the new facilities and will be keeping a close eye on

all developments. What we do know for now is that the new airport facilities and environs will be of First World standard, with a focus on aesthetics and luxury. “The new international arrivals terminal at OR Tambo will be the longest walk in the world from aircraft door to public hall once it’s completed, and it will be modern and up to date. It will be a beautiful facility,” says Lea. All current media owners will have any sites lost due to upgrades of the terminal buildings relocated on a like-for-like basis, with the rest going out on tender. Marketers and media planners are urged to be patient and flexible – media owners are doing what they can to accommodate them. “Part of the day-to-day challenge is just going

www.acsa.co.za

with the flow,” says Roberts. Mansour adds that media owners and agencies should be as proactive as possible, and must communicate with ACSA regularly. “We must also communicate with clients and pre-empt their needs,” she says. Media planners who work from their desks will lose out – they are not familiar with the airport environment as it is. Moving forward, it will become crucial for planners and marketers to do their homework and get into the airports to see what’s happening first hand. “The proof’s in the pudding, airports work as a media location,” says Cohen. “At the end of the day, if a brand advertises in a visible and relevant space at the airport, they will get the desired exposure.” 

Vol 26 No. 3/4 I 2008 I MarketingMix 43

by helen mcintee EXPERT OPINION

Helen’s top 20 hits I have a list of the top 20 ‘things’ that I have learnt during my career as both a marketer and a consumer (marketers should change hats sometimes).

is important to us’ for 20 minutes really means to me that a) there are not enough people answering the phone or b) we know who you are and we are answering more important calls first.

Please note that my tongue is firmly in my cheek as I write this.

15. Listen to your voice mail messages. A local country club regularly informs me that ‘Charmaine is attending to a member (?) at the moment, so please leave your name and number….’ (Name changed to protect the innocent).

1. Check your brand name in all languages for any controversial meaning (apparently Pajero means ‘wanker’ in Spanish!) 2. Give clear and correct instructions on the package. (If you really mean ‘chew along the dotted line’, then say so!)

16. If you create a dependency on the components of your product (the customer cannot use the product without a special branded part), please relook your distribution strategy – we cannot get refills for Cross pens in Hoedspruit and nowhere in Nelspruit can you find a stockist of Jeep batteries.

3. Don’t confuse your positioning. (Fast food is fast food – it’s not ‘healthy’, as Wimpy would have us believe!) 4. If you go the route of testimonials, have a recovery strategy in the bag, in case your spokesperson falls from grace in a big way…. Amy Winehouse, Kate Moss and OJ Simpson!

17. In fact, marketers, with regard to distribution, kindly remember that not all your customers live in Johannesburg, Durban and Cape Town – ‘available nationally’ should mean just that.

5. Be very careful with the use of humour in your advertising. (Nando’s, blind people have feelings too!) 6. Be extremely careful when using nudity or big-breasted women in your advertising (please Teazers, not in front of the children!)

10. If you have embarked on an expensive relationship campaign, spell your customer’s name correctly (McIntee is not that difficult!).

7. Be extra careful when using both barebreasted women and attempting humour in your advertising (Landrover?)

11. Red and yellow are not good colours for websites. It has been said that staring at these colours can raise a person’s blood pressure.

8. Think about ‘infomercials’ – for some extremely unfathomable reason they seem to work.

12. Educate your customer when you discover a new benefit. What the heck is ‘Low GI’? (And I have a degree or two!)

9. Please give your background music a bit more thought. While holding on or waiting for a response, half an hour of listening to Julio Iglesias, Richard Clayderman or waves washing on the shore (SAA) does not improve my already slightly blue mood!

13. Choose your words carefully when promoting competitions; ‘Enter and win!’ to me means ‘I’ve entered, now what have I won?’

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

14. Think of ‘speed’ as the next source of competitive advantage – after hearing ‘your call

18. While I am fully behind chain stores keeping stock for the community at large, surely not everyone buying lingerie in Boksburg is a 38DD (Woolworths). 19. Loyalty does not equal satisfaction! I think you will find huge numbers of disgruntled customers forced to put up with lousy service because ‘the company or individual wants to accumulate air miles’. It kind of defeats the objective, doesn’t it? (All airlines can take a bow here.) 20. Finally, don’t sell products that don’t work …now there’s a real gem of wisdom. Should I dare mention names? Maybe next time. 

Helen McIntee academic director IMM graduate School of Marketing (011) 628 2038

[email protected]

by nicci columbine EXPERT OPINION

Effectively using technology in contact centres Innovative marketing to different segments of the market is needed for companies to secure competitive advantage. Companies should harness every opportunity to expose their brand, products and services to existing and potential customers. The customer service contact centre, whether captive, as part of the organisation’s operational structure or outsourced to an independent provider, presents many untapped channels that companies can use effectively to communicate and market to different target audiences. To manage customer demand on all levels, call and contact centres use creative voice, e-mail and text message communication platforms to reach their customers. Increasingly, integrated systems and innovative technology solutions are being employed to provide automated and selfservice options. Additionally, as convergence generates more possibilities for integration of media channels, customers are being introduced to a broader range of options to meet their service needs. This presents marketers with a spectrum of dynamic opportunities to drive exposure of a company’s brand to a new level. Voice still remains the primary medium for customers to interact with call centres the world over. While call waiting is used to good effect for informational messaging, integrated voice response (IVR) solutions have become the alternative to lengthy call queuing, predominantly at first resolution levels. This also assists to reduce customer call termination and redundancy, a benefit to maintaining customer satisfaction. IVR platforms offer the potential for marketers to capitalise on the informational component with brand messaging and promotional elements. Specific promotional ‘banner’ messaging around a theme, such as a public awareness campaign or a welcome address to a city can be used. Specific language, voice intonations and sound can also be used to target different niche audiences, for example, youth markets would respond to different tone and language from top-end corporate clients. Voice characterisation with the IVR is well used by cellular operators to maintain brand profile. Foreign languages can

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

also be introduced into the IVR that enable call centres to communicate with an international audience. Internationally, contact centres are migrating to self-service selection options. These offer a wider range of functional options but also expose users to informational and promotional channels. Whether voice or Internet based, these channels must be carefully managed to avoid too many selection options and possible spam messaging. While touch-tone selection activation is still very prevalent and is transversally used, voice activation selection is growing. Voice recognition is an integral part of this technology and does provide an element of sensory interaction for the user. However, accent, pronunciation and voice clarity do pose challenges in this process and therefore these technologies are not always effective alternatives to agent interaction. Yet, with sufficient technical and voice compatibility this is proving an extremely efficient service. E-mail is a necessary customer contact channel for call centres. It alleviates the dependency on voice and also allows for efficient time management by both the customer and the contact centre. However, turnaround times and accurate

query response provision is critical to ensure this channel remains a reliable and effective option for customers. Part of this provision must also include the functional efficiency of web-based forms that customers can complete and submit as queries. E-mail provides marketers with the scope to push direct marketing to customers, on an information and visual level. Information about customer service and support options, as well as links to new products and services offered by a company can be added in themed marketing banners on each e-mail. This assists to inform and educate customers but again constantly expose markets to the brand. Marketers can also include prompts for users to consider other services offered by the contact centre, such as customer self-service that incentivises a change in their behaviour. SMS and MMS communication is used by call and contact centres, although not as consistently as voice. SMS has had its most successful take up as a result of interactive media campaigns, where users respond via SMS to polls and competitions. SMS receipt confirmation and response again present marketers with creative options to add short but clever brand messages at the end of a standard SMS response. MMS and other multimedia technologies offer enhanced possibilities but have a way to go before being leveraged by call centres. Certainly, marketers should be considering these technologies to reach and influence new niche markets. Contact centres, technology and content providers should collaborate with sales, marketing and media specialists to drive both messages and brands to emerging consumer markets now. Youth, who are quick adopters of technology, will purchase products and services according to their experience of brands. In this sense, service is a critical enabler. 

Nicci Columbine managing director Columbine Communications (011) 880 8137

[email protected]

PRINT MANAGEMENT

Print management:

design and print marketing Print management is a marketing process that marketers abroad are fast getting to grips with because it has the power to make print marketing more targeted and cost-effective. “Research shows that print remains the anchor medium in the communication mix. Mixed media options that use print to underpin the other media outlets outperform single media campaigns when it comes to return on marketing investment,” says Graeme Futter, marketing manager: brand communications, Sappi Fine Paper SA. Locally, print management is still a somewhat new concept, says Alban Atkinson, managing

directly, or by a print management specialist (the company or brand then has access to the software through its print management specialist). In the former case, the brand doesn’t need to engage with the designer/ad agency every time a design logo is needed – it is already stored in the system and can be adjusted as and when needed. Vested parties (designers, graphic artists, etc) have access to the system, which allows the corporate identity to be organised into different formats (be it a packaging design, or a print advert design), ready for print on demand. The collateral is quickly and easily updated.

Tempo Silk benefits Sappi Fine Paper Europe has developed a high quality coated silk paper that prints and finishes like a gloss. Called Tempo Silk, it is a coated wood-free paper. This is good news for printers, because the paper provides a smooth surface, fast ink setting and drying, and scuff resistance (which means increased productivity). Plus, it enables printers to reduce their use of anti set-off powder by between 50 and 75 per cent (health and environmental benefits). The benefit for consumers is the silky, smooth touch.

The benefit of this system for the marketer is that the brand’s design and identity is stored in one place and is easily accessible. Designers aren’t harassed to deliver design elements, which means no additional costs or time spent trying to source the design. Also, the brand‘s identity will remain consistent across any design application.

Colour management

director, Ince. “Internationally, corporates with large budgets are increasingly outsourcing their print management.” What is it, exactly? In a nutshell, it is the process (and the software and technology) that allows a brand design and its printed application to be created and managed from concept through to execution on packaging, advertising and corporate communications.

Digital asset management This is usually a software system which allows a brand to load and store its corporate identity (logos, images and typefaces). The software might be bought by the brand or company

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

Ince, for example, uses a digital asset management software package called Dress Code; its clients can create almost any print product simply by logging into the system, selecting a template and changing certain fields to tailor the communication to their brand or business. Their logo or other important design elements, such as a specific colour, shape or image, simply need to be ‘dropped into place’. The system generates e-mails that request authorisation on the design and the budget before generating the print order, explains Atkinson. Once the right approvals have been given, the system will generate the print job, quickly and efficiently.

Colour-management software is another important tool in the print-management process, which is essential to maintaining consistency in design. A can of Coca-Cola should have the same red as the label on a bottle of Coca-Cola, anywhere in the world. Colour-management software takes into account a variety of different materials, printing processes and printers that are involved in the packaging and design for a brand.

Personalisation Printers now have access to technology which allows them to personalise print jobs, tailoring the content or design to appeal directly to the consumer or target. The applications for this technology are endless – personalising a direct mail communication so that it addresses each of your consumers by first name; or printing a custom magazine with advertising messages that are personalised to each of its readers. Local universities may soon be implementing

PRINT MANAGEMENT

this, says Atkinson. Prospective students complete detailed profiles relating to their personal interests in terms of courses. The system generates a personalised brochure for each student with specific information on the courses they expressed an interest in as well as relevant financial solutions. “With this technology, you can take direct marketing much further. It’s all about the database though. It has to be correct and clean,” says Atkinson. This technology will create new opportunities for direct marketing. “Look out for trans-promotional communication. That is, transactional communications that carry promotional elements,” says Atkinson. It won’t be long before your bank statements carry advertising messages from your favourite clothing retailer (after all, your bank has information about your shopping habits and even which clothing stores you spend money at – it is in the perfect position to offer those stores a prime spot on your bank statement).

Eco-friendly print management Another hot topic is sustainability and eco-friendliness. “Paper choice should not be

The Power of Personalisation study: The CMO Council’s key findings (marketingcharts.com) 











Half of CMOs surveyed report having only fair to poor knowledge of their customers (ie they have inadequate customer data) 38 per cent said they didn’t know whether personalised communications had outperformed traditional mass marketing tactics (ie inadequate measurement and evaluation) 55 per cent plan to allocate 10 per cent of their budget or more towards personalisation in 2008 Levels of adoption of personalisation remain low Lack of consumer data and insight as well as concerns over the cost and complexity of personalisation were cited as major challenges The top benefits of personalisation include making offers more relevant and meaningful to prospects, building closer relationships with them and increasing the company’s overall marketing effectiveness.

What you should look for when outsourcing your print management: some tips from the pros Richard Evans, chief executive, Affinity Connected in the UK, has the following tips for marketers (www.affinityprintmanagement.co.uk). Look for a company that:  Doesn’t own its own presses, but rather finds printers with the right presses and machines for the individual job. This means that they are able to cater to your every need, and are also able to find you the best deals.  Has a solid understanding of how to reduce waste and costs without compromising on quality.  Has the ability to audit your print campaigns and identify not only ROI on previous campaigns, but also the opportunities and options for changes and adaptations which will deliver greater ROI and impact.  Will become your company’s or brand’s advocate in the print space, and will invest time and energy in developing your strategy. The most important questions to ask print management specialists: Do you own your own presses?  Does size really matter?  How much time do you have to spend on print? 

excluded from making informed decisions,” says Futter “When used properly by a marketer or a retailer, the paper used to print all those inserts that fall out of our daily newspapers can relay a very positive corporate or brand message to consumers. Marketers should become more informed about the sustainability of the print medium as well as the various sustainable paper options out there. “They should not allow ‘poor environmental perceptions’ to make decisions for them,” says Futter. Marketers will need to convince their markets that the use of paper is environmentally sensitive (especially when the paper is environmentally sound), to gain trust from the consumer. It is becoming increasingly important for marketers to know the manufacturing source of papers and print materials as well as the origin of the fibres used in the paper. “The issue of access to information on paper-related topics is generally left to either the printer or the design/ad agency. Unfortunately, the final decision is normally made solely on price with little or no regard to how the paper decision impacts on the environment,” says Futter. The perception of paper usage as environmentally negative is not always accurate. It’s about viewing marketing spend in a different light based on environmental solution offerings, says Futter. Futter goes on to explain that eco-friendly paper can cost more in some cases. Recycled papers are more expensive to manufacture (thanks to additional processes such as waste collection, sorting and de-inking as well as the

costs associated with obtaining the right audits and stamps of approval, for example, Forest Stewardship Council). “Having said that, Sappi’s Triple Green range of paper uses an alternative primary fibre source derived from sugar cane, a post agricultural waste product. The additional virgin fibre carries a sustainable certification and this option of sustainably produced, locally manufactured coated paper is market competitive,” he says.

Choosing the right paper The choice of paper is crucial to any print job. Not only is the quality of a print job an important consideration, but the different applications that each paper type allows for should also be carefully considered. A few tips from the pros:  Gloss-coated papers are ideal for jobs with less /text and lots of colour images  Silk-coated papers are ideal for jobs that combine text and images  Matt coating is ideal for jobs that are text heavy  High white coating works well for jobs requiring exact colour accuracy  High bulk coated papers offer sustainability  Look for high bulk but low weight papers for jobs that will be posted  Paper with good folding characteristics are ideal for jobs requiring construction  Coated wood-free paper is great for jobs that require long-lasting whiteness and quality  Brightness is an important consideration (though this may push costs up) as well as the holdout of the paper (ie its ability to hold ink consistently). 

Vol 26 No. 3/4 I 2008 I MarketingMix 49

by lisa basson EXPERT OPINION

Innovation – an allie you can’t afford to be without The advertising industry in South Africa is still failing to recognise the impact of technology and to what degree it can be leveraged. If used in the right context, it can stimulate the impact being made on consumers and thereby help in growing brand/consumer relationships and appreciation as well as ROI. Furthermore, the gap that exists between marketing managers and their agencies must be bridged. The fact is that a couple of print ads and/or a misplaced and misguided television ad are not going make an impact on any consumer, let alone reach the desired target market. Education and open-mindedness now become hypercritical. Just take a drive through the streets of Johannesburg and this becomes truly evident. Adverts located on every second building and every available billboard, regardless of location and relevance, not forgetting the random flyers that creep in through the car window. The problem boils down to not making any significant impact or creating any sort of consumer resonance, which tends to be due to the absence of two critical factors: i) strategy – based on extensive knowledge of the current consumer landscape, trends and understanding of how various facets of media are developing and ii) innovative application to media ventures based on this knowledge. Poor placements indicate that although the funds are available and marketing managers and agencies both have thousands of tools at their disposal, their eyes are just not open wide enough to see the potential of innovative marketing tools, even those of traditional origin. Industry players need to start to identify the new contexts and social dynamics within our environment whilst marketing, media and technology must still remain critical points of overlapping focus in the quest to establish innovative value added solutions. Strategy, as having been identified as one of the critical components, must be considered all the way from media through to creative innovation and the achievement of a company’s desired bottom line. However, from a holistic input perspective, other industry experts cannot

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

be ignored when creating executions and strategies that will truly resonate with the consumer. Brilliant examples of innovative strategic action carried out under the auspices of technology indicate that some companies are starting to appreciate the importance of innovation, technology and strategy all morphed together. Telkom Media’s Telkom Television application is an example of an excellent broad based innovative technological strategy that has also incorporated a perspective on long-term sustainability. Just think web TV, video on demand, satellite TV and radio, and a host of other quality interactive services, all of which provide new dimensions and avenues to communicate with consumers. Having said that, within the pay-TV sector there is nothing spectacular about the holistic Telkom television offer. BUT what impresses about Telkom’s move and makes it worth mentioning is that it has the foresight to create a strategic bridge from the mother brand that is both innovative and diverse in orientation. This bridge, even if relatively indirect in terms of direct company association, may prove to

add value to the total brand image of Telkom, which is under an immense amount of pressure. An innovative, strategic safety buffer, if you like. From a more concentrated point of departure, look at the reactive state in which the South African economy has been placed due to the Eskom power crisis and the resultant innovative technological proposal for the implementation of solar-powered traffic lights (a strategy cultivated to alleviate havoc on our roads). Perhaps we can look forward to seeing advertising placements being fitted into the solar panels; we may see innovative thieves making off with these panels, but at least the advertising will go with them and aid in creating increased brand awareness and visibility. Another exciting example of strategic innovation is the music industry’s answer to its current revenue-generation crisis, and the dawning of a whole new era of music sales and marketing. Take Qtrax – ‘An advertiser supported, legal peer-to-peer music jukebox that enables the user to have free music downloads’. This is a most innovative application of technology and provides many new strategic marketing and media placement opportunities. Finally, the Nintendo Wii must get a mention. The Wii provides gamers with a new experience and enables an interactive environment, which some clever marketing and media people should most certainly have the capability to exploit. Attention to what’s going on locally and globally, creativity and metrics will result in complementing the creation of an innovative strategy that is market relevant and accessible. Without an innovative strategy, a brand and/or client may just be lost in the clutter and left behind. * I have been advised recently that Telkom Media is in the process of revising its entire business plan, as was originally presented to ICASA 

Lisa Basson strategic saburai Tom-mo-e 083 317 5082 [email protected]

by nici stathacopoulos EXPERT OPINION

In which world do we live? You must know that your brand lives in the ‘happy marriages’ quadrant when consumers become fans of the brand on Facebook (my most favourite social community network, am active without fail daily, even if just via my mobile!) So I did a quick look around my friends’ profiles to see who is a fan of what (it’s an application you can load on your profile). Being in advertising the first trend I noticed is that my friends in the industry have listed themselves as fans of many of the brands they are managing. I wonder, if the relationship was terminated, whether they would feel the same way? Some well-known brands have these followings on Facebook:  Marmite – 49 000 fans  H&M – 42 000 fans  Jeep – 22 000 fans  Starbucks – 15 000 fans  Zara – 12 000 fans  Ferrari – 9 000 fans  Toblerone – 6 000 fans It appears that the most popular products include cars, clothing and alcohol! Surprisingly, the all popular Manchester United FC has only 3 000 fans, and brands like McDonalds, KFC and Nike less than 3 500 fans, yet they are considered the most popular brands in the world. Coca-Cola has all of 88 fans while Ticketmaster has over 150 000 fans! Clearly, the latter did something right in the virtual space. So, moving on from Facebook, let’s look at some brands that occupy ‘real’ space on Second Life. These are paid for content providers which make living in the virtual world more realistic.  Mazda  Coca-Cola  Dell  Adidas  IBM  Reuters  Nissan  Reebok With the dawn of the new ‘immediate now’ age, the web has become a living community that has ’extended beyond the virtual world to become the organising epicentre of its advocates’ lives’. And as such, we consumers become more vocal about the brands we interact with in a far more public and open manner

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than ever before. If brands are to survive they need to adapt (with some keen sense of urgency). As consumers evolve and adapt their online behaviour, brands can start to use this to their advantage and build even stronger relationships. And finally, this can be done overnight, or in less than a minute! Some facts from an international survey by Proximity Worldwide (documented clearly in a publication called Sex, Lies and Reality, an interesting survey and read, produced by Proximity WW).  68 per cent of companies expect Web 2.0 methods and tools to have the greatest impact on the way that their company interacts with customers.  Nearly 60 per cent of companies say they are inviting customers to contribute content that explains, supports or enhances their products, or that they plan to do so within the coming two years.  47 per cent of companies are, or are planning to treat customers as co-developers of products that constantly improve in a continual beta-testing phase.  Microsoft has some 650 bloggers; Jonathan Schwartz, COO of Sun Microsystems, blogs; the VP of General Motors blogs.

We now live in an ‘in-between’ world that we inhabit almost in transit. We move through shopping malls, taxi ranks and coffee shops, without staying. Our online behaviour is similar: people can form unconditional relationships, choose only those visual clues they wish to display and have far more control over what they say. If I want the consumer to buy a particular brand, then where better to find exact clones of people who are already purchasing the brand? ‘For brands this means embracing the virtual world in the same way as the users and allowing the boundaries to blur when thinking about communications strategies. A key implication for brands is that observing behaviour online is increasingly giving us more accurate insights into what people really think than traditional marketing categorisations’. (Excerpt from Sex, Lies and Reality). Proximity WW did a survey in the summer of 2007 into brands that people trust the most. The best performer was Google, which has built itself by starting with the vision that making the world’s knowledge easily accessible to all would be a very useful thing. eBay, Amazon and Apple also fit into this category. The web has created the following mindset migration, from  Content to co-creation  Control to collaboration  Channels to conversation  Consumers to communities. At the end of the day, real or virtual, it’s all about respect. When you have a conversation you’re talking to an individual, not broadcasting to a crowd. And that’s why CRM (one to one marketing) has re-emerged at the frontline of communication tools. You also need to remember that being able to engage effectively with that individual doesn’t mean you should try to be their friend – they’ve got plenty of real friends, that’s not what they want from brands. Brands need to listen, learn and participate. In this manner, they will form good friendships and happy marriages, in the real world! 

Nici Stathacopoulos managing partner proximity#ttp (011) 447 7093

MARKETING AT RETAIL

The green shopper workshop report back On 28 February 2008, industry experts met to discuss the green shopper, and how brands and companies should be talking to them. Speakers were: Mike Freedman, founder, Freedthinkers; Tamra Veley, MD, Corporate Image; Tessa Chamberlain, general manager: Sustainable Development, Pick n Pay; Barbara Cooke, founding partner, TGI South Africa; Vanessa von Holdt, an independent packaging consultant; and Karin Kruger, Paper Sciences manager, Sappi.

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Brand owners and retailers should be more proactive about reducing their packaging, and investigating sustainable or renewable packaging materials.

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Key learnings Consumer choice is a major factor, since more consumers are choosing to understand and reduce their carbon impact, and expect brands to do the same. Veley says that 35 million Americans are regularly buying eco-friendly products. Moving forward, marketers will need to segment consumers based on an understanding of their relationship to Green. Consumers will expect brands to be in it for the long haul (commitment to ongoing projects will be valued over short-term marketing ploys). We can expect to see a major influx of brands claiming themselves green, eco-friendly, and/or fair-trade, says Freedman; “we’re seeing a colonisation of green brands”. But Greenwashing – befuddling the consumer with green jargon and nonsense – is not going to be tolerated (consumers are savvy and will boycott the fakers). Green is full of contradictions and muddles: green activists are more likely to have a higher carbon footprint than the average consumer, because they own cars and travel abroad by plane. As yet, there are no legislative frameworks in place, nor any definitions for green jargon. “Advocacy groups have huge opportunities now,” says Cooke; organisations should be grabbing the Green bull by the horns and establishing their own green policies and best practices. Von Holdt says that household post-consumer waste is a major issue moving forward, as is general waste management. Brand owners and retailers should be more proactive about reducing their packaging, and

Packaging facts and figures from the Packaging Council of South Africa (PACSA): 

 





 

 

   

Packaging industry is worth some R35 billion per annum (2007: BMI) and employs 50 000 people Recycling sector employs 55 000 additional people Packaging is estimated to be around 12 per cent of the household waste stream in SA (PIKITUP Survey 2004) Beverage cans have a 67 per cent recycling rate; recycling industry employs 37 000 people; has collected 750 000 tons since it started Fifty-seven per cent of recoverable paper is recycled; 16 per cent of paper used is not suitable for recovery In 2006, paper recyclers collected 965 000 tons of paper R230 million is invested directly into paper recycling, where 12 600 people are employed Demand for recycled paper will grow to 1 155 million tons by 2009 Glass has a 25 per cent recycling rate; the Glass Recycling Company aims to raise this to 50 per cent in five years R50 million has been invested in glass cullet colour-sorting equipment Plastic has a 33 per cent recycling rate, including factory waste 160 recyclers, recycling 172 000 tons Plastic (in recovered waste fuel state) has a calorific value up to 40 times better than coal and is being used extensively in Europe.

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MARKETING AT RETAIL

investigating sustainable or renewable packaging materials. Cooke presented interesting trends and findings from local and international research that the group has carried out. TGI defines the ecoadopters as the market with an environmentally conscientious mindset. Throughout the rest of the world, this group makes up about two per cent of the population, while in South Africa, the figure is around five per cent. “They are a small group but they could become advocates and opinion leaders for the green movement,” says Cooke. Eco-adopters are:  More likely to be more educated and financially secure (more likely to be classified into LSM 7-10)  More discerning when it comes to the brands they purchase (there is a focus on organic, free-range and non-GM foods as well as on a company’s ethics), and they are willing to pay a premium for these. Convenience and pleasure also play a role  Brand loyal and Green loyal  Adopters of word of mouth and advocacy marketing  Media savvy; want brands to educate and engage them. TGI finds that print, outdoor, Internet and cinema are more effective in reaching this market than TV and radio. The local newspapers that are most read by green supporters include: The Independent on Saturday, Beeld and the Mail & Guardian. Locally, the supermarkets that eco adopters frequent for bulk grocery shopping are Woolworths, Friendly Supermarket, Spar, Makro, Diskom, Checkers and Pick n Pay (stores that ranked negatively include Score, spaza shops, neighbourhood markets and township supermarkets).

Legislation and guidelines Von Holdt says that the Polokwane Declaration (2001) enables structures for the implementation of a waste management system which contributes to sustainable development. It aims to develop a common effort towards a goal for a reduction of waste generated and disposed of by 50 per cent by 2012, and will develop a plan for a zero-waste society by 2020. She adds that the Declaration will mean closer scrutiny of all packaging materials and processes; producers will have a greater responsibility to reduce, reuse, recycle and recover packaging. It is expected that this bill will become law in mid-2008. The Air Quality Bill and Water Bill will also have an impact. Government is working on these currently. 

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Pick n Pay Pick n Pay has been involved in sustainable initiatives since the 1980s, when the stores launched a range of green products, and also began educating the consumer about the ecosystem. But according to Chamberlain, the green products line was premature: the market was not ready for this development, and over the years, the product range dwindled. Today, the company’s sustainable development strategy has shifted; it recognises that stores need to become ecoeffective, rather than simply stocking green products. Sustainability needs to become an internal process. And the customer -focused approach needs to adapt to a broader concept of partnership that views employees, contractors and suppliers as priority stakeholders. The stores’ sustainable development commitments:  Promoting broad-based black economic empowerment through partnerships with the Bethlehem Farmers Trust or the Winterveldt Farming Community, for example.  Reducing their carbon footprint through monitoring and reporting, including reporting to the Carbon Disclosure Project – a global independent non-profit organisation, to which companies report their corporate greenhouse gas emissions. The stores are actively identifying opportunities for reducing their carbon footprint, including purchasing green electricity or improving energy efficiency in operations and fleets. “We have already made energy savings of 23 per cent in our head office, by using energysaving light bulbs and changing basic operations. We changed employee behaviour and created awareness,” says Chamberlain.  Reducing waste and energy usage, which includes a waste-oil-to-biodiesel initiative, which is set to be rolled out in the coming months.  Promoting innovation, especially around green products and eco-effective stores as well as through research which aims to reduce the environmental footprint of packaging.  Developing sustainability partnerships, which will facilitate sustainable sourcing, fairer trading practices and greater awareness of sustainability issues. Pick n Pay was the first major South African retailer to engage with the World Wide Fund for Nature’s Southern African Sustainable Seafood Initiative (SASSI), for example;  Implementing a sustainability communications strategy, which involves employee training and awareness programmes as well as consumer awareness initiatives. “It’s about educating the consumer to make important decisions, so that they can pick the right brands and products,” says Chamberlain.

nana nkosi EXPERT OPINION

New approach to skills crisis The shortage of skills is affecting every single industry in this country. Productivity, competitiveness and sustained economic growth are compromised. We need to face the skills crisis head-on and aggressively put actions in place, but there is no quick-fix solution. In 2003, the Department of Labour published a document on the ‘State of skills in South Africa’ and noted that the skills shortage in this country has long been a challenge driven primarily by the effect of the apartheid government’s policies, but also by more structural shifts in the economy. Reviewing where we are today, it seems that very little has been done and this is witnessed in very specialised industries like branding and others. It’s time to stop talking about the problems and do something. To translate talk into action, massive input and commitment is required from the education authorities, schools, industry bodies and companies. A total re-look at our education system is the starting point. Exposing school learners to a diversity of work environments is critical. How many of us studied for a Bachelor of Arts degree because it was a ‘safe’ choice? How many of us made education choices based on the influence of our parents or our friends? The vast majority of youngsters have absolutely no idea about the working world and what career choices are open to them. We need to expose learners to the world of work and help them align their interests to that. There are some schools that encourage learners to ‘job shadow’ during one of their holidays, but all too often this involves a twoday sojourn in a parent’s friend’s company, perfecting their tea-making and photocopying skills! The students should be there to observe, do and learn. Work experience should be compulsory for every Grade 11 and 12 learner – and it should be pre-empted by a thorough career guidance programme within the schools themselves. Learners would then be able to make more informed course choices for their tertiary education. Of course, there are some companies – mainly multinationals – that have programmes in place to educate students on various career options, but this country needs the full cooperation from every organisation – both large and small

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Nana Nkosi

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We need to clarify exactly what the branding industry is and create understanding and awareness. Most people don’t understand what branding is.

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– if we are to effect meaningful and long-term change. Organisations need to work far more closely with schools and universities to provide relevant career guidance and counseling. Experts could be invited to schools on a regular basis to create awareness of various industries and career choices. Companies should hold regular open days to expose students to their business and their business processes. But most importantly, internships need to become an integral part of every company in South Africa. Companies employ people on the basis of their ability and their experience. But experience can’t be learnt at school or university, nor can it be bought. It is gained. It’s a catch 22 situation

– people don’t have experience, so they can’t get a job. But they can’t get experience without employment. Internships can change this. Taking in interns does require considerable input from an organisation. Interviews should be held with potential candidates to ensure suitability, after which each intern should be assigned to a senior person in the business who acts as a coach. The coach coordinates the intern’s work, supervises and guides their efforts, ensures the productive use of time and provides feedback. At the end of their tenure, interns should get a complete evaluation report from the coach and should be allowed an opportunity to present their own experiences. Valuable lessons can be learnt from both parties. There’s no doubt there are companies out there questioning why they should invest time and effort only to see their interns snapped up by a competitor. And it happens. But if every company invested in boosting the country’s skills base, everyone would benefit. From a creative perspective, there is vast raw talent out there. We need to identify that talent, expose the students to career options and provide opportunities for work experience. From a branding perspective, we need to clarify exactly what the branding industry is and create understanding and awareness. Most people don’t understand what branding is. It’s often confused with advertising and even marketing professionals often can’t define or describe what branding actually involves. As a start, I would suggest that:  Branding should be a subject choice at schools and tertiary education institutions  Branding agencies should sponsor an annual creative award for students and learners  Specialist branding agencies should align themselves with schools and universities and transfer their knowledge  Branding agencies should provide holiday jobs, professional career guidance and internships. There is no industry in South Africa that isn’t facing a skills crisis – but we need to pull together and work collectively and aggressively to have any hope of making headway. 

Nana Nkosi Client service director, HKLM (011) 461 6836 [email protected]