Marketing Mix Magazine Nov Dec 2007

MarketingMix

CONTENTS

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I 0 2 I Book Review Marketing Mix reviews Purple Cow: Transform Your Business by Being

I 2 1 I Expert Opinion: Michele Venter-Davies Michele gets googly over alternative media

Remarkable, Seth Godin’s latest must-read for marketers

I 2 2 I Assegai Awards I 0 4 I Ed’s note

Marketing Mix takes a closer look at some of the Gold prize winners

I 0 6 I DMA I 3 6 I Expert Opinion: Nici Stathacopoulos

After its first operational year, the DMA reports on its successes and introduces new founder members.

I 0 7 I News

Nici tries to define direct marketing

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All the latest gossip in the wonderful world of the marketing mix

Nicci finds the value in call centres

I 1 2 I Expert Opinion: Richard Duncan

I 3 9 I Expert Opinion: Yoav Tchelet

Richard talks about mobile battles down under

I 3 8 I Expert Opinion: Nicci Columbine

Yoav tells us how to measure ROI online

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I 1 3 I Effective Marketing in Africa

I 4 0 I This thing called CRM

Insights from experts and brand

Susan Moerdyk shares some insights from Markinor’s State of Marketing study

managers who have made it in Africa

I 1 4 I Brand Anatomy

I 4 3 I Afrikaans Media

Marketing Mix explores the intriguing personality of Smirnoff

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Vodka

I 1 6 I Expert Opinion: IMM

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Marketing Mix looks at the Afrikaans media landscape

I 5 0 I Marketing At-Retail Marketing Mix brings you the latest thinking on Point of Sale marketing.

Helen McIntee gives marketers advice on how to bounce back

I 1 7 I 7 Day [B]itch 56

Joe Public’s creative director, Pepe Marais, tells us why he’s a dog lover

I 1 8 I Direct Marketing Marketing Mix looks at Direct to Home marketing, and finds some exciting new ways to boost a direct to home campaign

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I 5 5 I Expert Opinion: DMX Craig Cesman explains the difference between interruption and enjoyment

I 5 6 I Law Mix Fayeeza Kathree-Setiloane and Omesha Moodley look at ICASA’s subscription broadcasting licences, and public service broadcasting

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by michelle sturman BOOK REVIEW

Marketing to the Social Web How digital customer communities build your business When a guy like Larry Weber decides to write a book and impart his knowledge and wisdom to marketers on how to use social networking and digital communities to build brands and business, you should be devouring every word. If you don’t know who Mr Weber is, then look up info on the W2 Group. The basic premise to the entire book is how to communicate with consumers using the Internet and its various new technologies. One of the most valuable but least understood aspects is the online consumer community. Weber points out succinctly on his opening page that ‘instead of continuing as broadcasters, marketers should – and will – become aggregators of customer communities. Rather than broadcasting marketing messages to an increasingly indifferent, even resentful, audience jaded by the 2 000-plus messages the average American is reputedly exposed to every day, marketers should participate in, organise, and encourage social networks to which people want to belong… And the social web is the most effective way in the history of the world to do just that on a large scale.’ So what exactly is the social web? Weber calls it ‘the online place where people with a common interest can gather to share thoughts,

comments, and opinion.’ It is probably better known by its longer title of social networking, including some of the most well-known websites – MySpace, Facebook, LinkedIn and Flixster. Weber insists that the Internet is becoming the most important marketing medium, the umbrella if you like. So if you believe this can be true, even in South Africa at some stage, then Weber offers a myriad of social web case studies and a step-by-step guide on what and what not to do to succeed in this dynamic and important new world. As mentioned, the job of a marketer in this environment is aggregator, which can be done in two ways: providing compelling content (research, ideas, opinions) and environment (where people can share knowledge) for customers to visit and/or by participating in the public arena by taking part in discussions as experts in the relevant fields. This way, a marketer can become involved in building communities. A community can provide targeted brand building, lead generation, partnerships, research and development and employee communications. In making the transition to the social web, Weber offers a neat chart on old versus new marketing. Some of the differences include:

Handbook of Public Relations Eighth Edition An essential read for anyone studying PR and one to have as a ‘helping hand’ for practicing PR professionals. The last edition was published in 2004 so quite a bit has been added since: new case studies, including the Nelson Mandela Children’s Fund; event checklists, new information regarding corporate social responsibility and the role of PR, and an updated chapter on our multicultural market. The necessary building blocks of PR are in the handbook and include: Fundamentals of PR; PR and research; PR and marketing; planning a PR programme; PR and the media, effective communications; promotional activities and PR and crises. 

Handbook of Public Relations Eighth Edition Chris Skinner, Llew von Essen, Gary Mersham, Sejamothopo Motau Oxford University Press Southern Africa R325

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MarketingMix I Vol 25 No. 11/12 I 2007

Component: brand equity Old marketing: brand recall is Holy Grail New marketing: brand value is determined by customers: how likely are customers to highly recommend good or service? Component: targeting Old marketing: target by demographics New marketing: target according to behaviour Component: communication Old marketing: broadcast style: create and push message out for customers to absorb New marketing: digital environment for interactive communication through search and query, customer comments, personal reviews or dialogue. The most important pages in the book come in Part II where Weber, very kindly, provides a seven-step guide to building a customer community as well as expert advice on various strategies including social networks, reputation aggregator and blogs. Filled with very useful, easy-to-understand and digest info, Weber provides everything you need to know on social webs as well as plenty of case studies. It’s worth reading even if you think you’re not interested in online communities. Oh, and by the way, Weber says that Web 2.0 is actually Web 3.0 with Web 4.0 just around the corner – the use of rich media, broadband and high definition – making the Internet more emotive. 

Marketing to the Social Web By Larry Weber John Wiley & Sons, Inc R264

ED’S NOTE

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

A whole new world It is with great sadness, but great excitement that I write this, my last ed’s note to you, my dear readers. Great sadness as I leave the print world, but great excitement as I move into the world of cyberspace, bits, bytes, blogs and daily reporting. But fear not. I’m not moving far. In fact, I’ll still be sitting behind my usual desk with the same laptop in the very same office as I take Marketing Mix online. The website will go live early next year and will keep you up to date with news and views that are important to the marketing world. Like the print edition, all the news and information posted on the Marketing Mix website will be carefully selected and it won’t be filled with every press release that pops into my inbox. There will also be views from some of the country’s top marketers and media gurus offering advice, opinions and information in bite-sized chunks along with the chance to interact with them. The website will also offer the Marketing Mix archives – a wealth of information captured from over 20 years’ print editions. There will be lots more features on the website but you’ll have to visit it to find out what they are. If you want to contribute to the website in some way, give me a shout and I’ll be happy to chat to you. In the meantime, I’m very pleased to announce that Fulvia Becatti is your new editor and takes over from the next edition of Marketing Mix.

[email protected] SUBSCRIPTION ENQUIRIES:

Have a wonderful holiday season and the next time you hear from me will be from www.marketingmix.co.za.

Daisy Mulenga Email: [email protected]

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

Database: List Perfect

3 944 Jan-June 2007

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DMA

A year in the life of... The DMASA has come through its first operational year, and its successes were reflected on at the AGM held in November. “By all accounts the DMA has had a challenging but phenomenally successful year, a fact that bears testimony to the high calibre of our board members, leadership and industry, and their commitment to making the association work for its members,” says Brian Mdluli, CEO, DMASA. Over the past year, the DMA has made progress engaging with government and the industry, securing a number of rulings vital to the well-being and growth of the direct marketing industry as well as to the serving of consumer rights. “The DMA board has set some tough standards for all board members in lobbying government at the most senior levels on pending legislation,” says Mdluli. DMA membership has grown to eight founder members and 140 corporate members. The number of founder members will be capped at 10 and so far includes: First National Bank, RCS, South African Post Office, MTN, Computer Facilities, ABSA, Avis and HomeChoice. During this year, the DMASA also became one of the signatories to the

New founder members The DMA has three new founder members: HomeChoice, Avis and Computer Facilities.

Avis “Avis benefits from its relationship with the DMA by being kept abreast of industry trends and legislation. This allows us to communicate with our customers in a caring way and ensures we remain sensitive to issues around communications legislation. While we regularly communicate with our members through our e-zines and personalised correspondence, the DMA enables us to see how the industry is growing and what other industry players are doing and achieving. It provides a great networking opportunity and allows Avis to share its work with the larger direct marketing community,” says general manager of marketing, Zanele Mamba.

Computer Facilities “Computer Facilities is proud to be a founder member of the DMA. Furthermore, we are proud to provide the association with additional services free of charge, such as maintaining its membership and Do Not Contact Me databases, providing accounting services as well as handling bulk e-mails and SMSes. “The direct marketing industry has always required a controlling body which looks after the interests of all, and the lobbying that has taken place over the past year with government has been essential for the entire industry. The original wording of some of the proposed acts would have crippled our industry and made thousands of people redundant. We are pleased

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proposed Marketing, Advertising and Communications BBBEE Charter (which was accepted by Minister Pahad and is now with the DTI for approval). The Assegai Awards were welcomed back, with close on 140 entries. Board members announced for 2008: Patrick Muthui — Rand Merchant Bank Darryl Joubert — Intimate Data Illona Hilditch — Alexander Forbes Ian Geary — Computer Facilities Michelle Perrow— Lesoba Difference Christiane Duval — Umthetho Janras Kotsi — South African Post Office Brian Mdluli — DMA CEO Albie Aucamp — African Bank Jeff van der Watt — Rand Envelope and Tunley’s Gary Simpson — Premier Growth Group Andy Quinan and John Rollason have resigned from the board.

that government has listened to us and has taken notice of our concerns.” “The DMA is in its infancy and was recently awarded the New Association of the Year award by the Services Seta. This is a great achievement and most definitely a feather in the cap for the enthusiastic CEO Brian Mdluli and his team. The relationship that has been developed with the Services Seta and the Department of Trade and Industry as well as other organisations bodes well for the future of the DMA. “The very well-organised Assegai Awards, held at the beginning of November, paid tribute to everyone involved with the DMA and we, as Computer Facilities, were very surprised but honoured to be awarded the Assegai for Organisation of the Year,” says Ian Geary, managing director, Computer Facilities.

HomeChoice “As South Africa’s biggest catalogue retailer, the state of the direct marketing industry and any legislation that affects our trading environment is of prime concern to us. Having a single body to communicate with members on issues affecting them and, more importantly, having that body act as a strong lobbyist for the industry is vital. The success of the new DMA will in large part depend on it having the support of big industry players. That’s why we decided to become founder members. We look forward to seeing the DMA grow into a body that encourages and develops high standards in direct marketing, keeps the industry abreast of global trends and provides a collective voice that gives our industry the gravitas it needs when speaking to government,” says Anthea Abrahams, marketing director, HomeChoice.

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

NEWS

The soccer link

Urbandictionary.com

The LIVEMOBILE ‘Portal in a Box’ lets advertisers reach a potential market of 27 million South Africans, and 415 million more African mobile users, on their mobile phones through a portal that takes soccer news directly to cellphone. After 18 months of development and behind the scenes work to ensure that content can be rendered to different types of handsets. “The plan is to launch a country-specific version of the portal across Africa and even globally. This will ensure that we can offer country specific users a localised experience and also offer the service to country specific sponsors and advertisers,” says Patrick Kuwana, CEO, Umliba and director of PA Sport South Africa (which Umliba also has a stake in). The system requires handsets to be GPRS and WAP enabled, but with 95 per cent of all phones sold in the past two years being GPRS enabled, Kuwana is positive about the offering. He refers to data collected by Admob (a leading global mobile advertising network), which found that in September 2007, South Africa had the third highest number of mobile ad impressions in the world after the US and India respectively. The LIVEMOBILE service will deliver mobile soccer channels for the Barclays English Premiership League, the South African Premier Soccer League, other major global soccer leagues and competitions; channels for rugby, cricket and Formula One will be available soon. The majority of the data is sourced from PA Sport, but the service also allows for mobilisation of content from existing Internet sources (websites, blogs, social networks, etc). “This means we have an endless source of content that we can provide to mobile users,” says Kuwana. “Even though we have focused on sports first the platform will soon introduce channels for entertainment, business news, African country by country news and others.” Advertisers can choose from text and/or banner ads as well as click-through ads. “One unique aspect of the service is that it can mobilise existing web-based ads, without forcing the advertisers to make changes to their creative. Web-based ads get optimised in real time to the end-user’s device,” says Kuwana. Currently, Umliba is pursuing a sponsorship model, rather than an open-ad network model. Ad placement pricing varies based on the commitment and scope provided by the sponsor; a portion of the pricing can also be based on click-through traffic. “At the moment, we are offering a fixed-fee

Moobs: a combination of ‘man’ and ‘boobs’. This is what happens when fat gathers in a male’s chest area and gives him the appearance of having breasts. Usually seen in overweight males, but can strangely also occur in men who are not overweight. Facebook surprise: when you don’t know a picture has been taken of you until you see it uploaded by someone else on Facebook – usually an embarrassing picture. Summer teeth: used to describe somebody who is missing some of their teeth – summer there and summer not! Textual intercourse: the consummation of a relationship via SMS. Husband chair: a chair in a women’s clothes store or department for a guy to sit on and wait while his wife or girlfriend shops. sponsorship structure on a per country basis. If a company wishes to sponsor multiple country portals, they can do so at a discounted rate,” says Kuwana. “The value to advertisers is the ability to get their message delivered directly to a user using a rich media experience within a context that is relevant to the user. They are guaranteed that the user will see them and, more importantly, the user can be profiled and further communicated to directly,” says Kuwana. Traffic through the site will be monitored, so advertisers will know exactly how many people are viewing their ads. For users, the basic service is free and includes fixtures, results and league tables, etc. The premium service, which will have an expected monthly fee of around R20, will offer users access to live match commentaries, previews and downloads (wallpapers, ringtones, etc). “A feature we are bringing into the service early next year is the ability for all users to participate in chat forums and messaging, using the instant messaging (IM) communication option which will be freely available,” says Kuwana. The portal is powered by BUZmob, a publishing service for mobilising Internet content developed by Canadian company Contec Innovations. You can link to the live demo by entering your cellphone number on http://umliba.buzmob.com/urlsms.php?page=soccer.

Work hot: a person that may or may not be hot, but is the most attractive person in the set of people you work with so you lust after him or her. Man stand: The act of a man standing outside a shop while his wife, girlfriend or partner shops inside. Man standing involves looking into space, at other women, or in the case of multi-storey shopping centres, leaning on the railing of an upper floor watching the people below.

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NEWS

Five new channels have been added to the DStv bouquet: Sony Entertainment Television (SET), Animax, One Gospel, MNet Stars and Style Network. According to Chris Hitchings, director of sales, Oracle Airtime Sales (OATS), these channels are not yet commercially viable. Following a six-month ‘settling’ period, OATS will make a decision as to whether to consider commercial insertion on any of these new channels. “This decision will be informed by a variety of factors, including; channel audience ratings, environment, likely demand from industry, the ability to add value to our current sales proposition, etc,” says Hitchings. In the meantime, here is some background info on Animax and SET. Marketing Mix will take a closer look at the other channels in future issues, and will let you know when they will start carrying advertising. Channel: Sony Entertainment Television (SET) Ownership: Sony Pictures Entertainment Launch Date: 2 November 2007 Platform: DStv, channel 108 Programme highlights: Launching

under the tagline ‘100 % Entertainment’, the SET channel delivers a family friendly mix of programming genres that appeal to a range of audiences. Programming includes movies and series, including such popular shows as Las Vegas and Party of Five. According to Ross Hair, senior vice president, International Networks, EMEA, Sony Pictures Television International, the parent company has been debating whether or not to create mobile content for the channel. “There is constant debate about whether to set up a production facility dedicated to short content. We do see people downloading more and more. But the debate questions whether they prefer long or short content,” he says. “We are excited about the SET channel. Our movies and high-quality entertainment set us apart, so we hope to introduce our linear services to mobile soon.” Target audience: anyone between the ages of 15 and 49 years. Channel: ANIMAX Ownership: Sony Pictures Entertainment Launch Date: 3 November 2007 Platform: DStv, channel 111

Programme highlights: This channel is dedicated to Japanese animé, and it covers a range of genres (romance, horror etc). “We have entered this channel into markets in which the animé audience was not so big, and we have grown it,” says Hair. “animé deals with serious themes, universal themes. Visually, and in terms of content, it is different to anything else that’s out there.” Animax has joined forces with MXit locally, as part of the marketing campaign for the channel. MXit’s core users are, demographically speaking, Animax’s core audience, so the mobile channel is ideally positioned. “Our targeted audience is a desirable fan base. It is both Internet and mobile savvy, and with the amount of time spent watching TV declining, we must reach it via mobile and online media,” says Hair. Consumer testing will be carried out too, and the team also has plans to take info and content to the web and cellphones. Target audience: viewers and fans aged between 15 and 29, looking for alternative content and entertainment.

Your face on Facebook Your brand’s face, that is. The social networking giant has just released its advertising ideas to the world, and Facebook ads looks good even for South African advertisers. South Africa is the eighth largest country in terms of active users, while the South African Facebook network is one of the top three fastest growing networks on the website. So what’s on offer? Facebook has introduced Facebook Pages that allow brands to build a Facebook page, including video, photos, applications, etc and Facebook Social Ads that deliver precisely targeted ads that can run on users’ news feeds or is visible on the left side of the site. Facebook Insights make up the final part offering market intelligence and analytics information. A sales team can be contacted to help with campaigns although Facebook’s step-by-step guide to building ads and brand pages is easy. Other useful tools include Beacon, which is a few lines of code added to a brand’s own external website. Beacon sends information back to the user’s Facebook profile when they take an action – a purchase, signing up for a service, etc. However, there was uproar from Facebook users regarding its opt-out only policy and on December 5 2007, CEO of Facebook, Mark Zuckerberg posted this message on the Facebook blog: “Last week we changed Beacon to be an opt-in sys-

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tem, and today we’re releasing a privacy control to turn off Beacon completely. If you select that you don’t want to share some Beacon actions or if you turn off Beacon, then Facebook won’t store those actions even when partners send them to Facebook.” Help is also at hand in the form of applications through Platform and polls can be developed. For more detailed information, visit www.facebook.com/ads. Local Facebook brand pages • BMW South Africa • Traveldex South Africa • SmartSphere South Africa • South African Travel • All About Africa Tours & Travels

NEWS

Bokomo Weet-Bix thanks you Marketing Mix recently took a closer look at the Bokomo Weet-Bix ‘Thank You’ campaign and sales promotions (Vol. 25, issue no. 9/10; page 54), and now we can report that the campaign succeeded in raising R1 million for Childline over six months. According to Bokomo Foods brand manager, Jan Louw, the campaign was designed to thank consumers for their support over the years as well as to create awareness and generate funds for a worthy cause. Bokomo replaced the Weet-Bix name on all packaging with the words ‘thank you’, and targeted consumers of the brand and South Africans who felt that “they could make a difference by contributing to the future of our country and our children”. Bokomo donated 7.5 cents for every pack of

Bokomo Weet-Bix sold between April and September 2007, to a total of R1 million. Plus, consumers who bought Weet-Bix stood in line to win cars, Sony Playstations and Bokomo hampers. “The strength of the brand coupled with the clever selection of media largely contributed to the success of the promotion. A good mix, since entries through SMS and IVR averaged 104 000 per month, and over 600 000 over the six-month campaign period,” says Louw. The campaign was supported on pack as well as with in-store marketing; TV, radio and print media campaigns also raised awareness. “Integrated campaigns are essential when promoting to broad consumer bases, such as Weet-Bix’s,” says Louw. He adds that the contact details and data collected in the campaign might be used for future interactive promotions. The strong link with Childline will continue through on-pack promotion of the Childline logo and the opportunity to donate directly to Childline through an on-pack SMS number.

Writers block The US writer’s strike is having a significant impact on TV production, wreaking havoc with programming schedules audiences were down by around nine per cent across the pond at the time of going to press. Major TV series such as 24, Desperate Housewives, Grey’s Anatomy and Prison Break have stopped production while talk shows such as The Tonight Show with Jay Leno and the Late Show with David Letterman are off the air. Depending on how long the strike lasts, it could begin to affect programming in South Africa, M-Net in particular.

Although, according to Jan du Plessis, director of Channels, M-Net, the strike will have to continue until April 2008 to affect us locally. “In the worst case scenario, it will mean that viewers will not see their favourite series’ episodes consecutively. At this stage the only major casualty is 24 Season 7 where the US broadcast date has been postponed indefinitely from a January 2008 start, possibly skipping the 2008 season and premiering only in January 2009,” says Du Plessis. Oracle Airtime’s director of Sales, Chris Hitchings is quick to reassure advertisers that options are being looked at in the worst case scenario. “Naturally, the first prize for us is an uninterrupted schedule, however, where series may be interrupted or episodes shifted, we would have to be sensitive to advertisers’ needs and provide flexible options; that is, either offer suitable alternatives or allow advertising to shift timing along with the relevant programming.”

NEWS

Just add music Which music is currently enjoying its 15 minutes of fame or would make a brilliant soundbed for an ad? The list below includes a wide range of local and international music styles and, most importantly, it highlights which songs are hip and happening within different target markets right now. The following list is courtesy of Roy Harman, who manages South African artists and works on various music entertainment productions and events. For more information on how to match your brand with an appropriate song e-mail [email protected] or call 083 407 4928

Act and song

Why it’s hot

Genre and emotion evoked

Filter Take a Picture

A classic road-trip song with an anthemic chorus

Rock – independence and happiness

The Wiseguys Ooh La La

Dance along and sing-along fun song

Dance – upbeat, positive and energetic

James Brown I Feel Good

One-year anniversary since his death

Funk – loud, crazy and radical

Jungle Book Bare Necessities

Animated and loved characters

Kids – youth, silliness and lighthearted

Sly and the Family Stone It’s a Family Affair

It’s lasted the test of time and is still popular at clubs and bars.

Soul – sexy and soulful

Queen Don’t Stop Me Now

Powerful and fast paced

Pop – optimistic, frenziness, fun and celebration

Stereophonics A Thousand Trees

Great melodies and choruses

Rock – freedom, expression and independence

Zoot Woman It’s Automatic

Flow and consistency for creating a relaxed setting

Chill dance – comfortable, positive and relaxing

Lira Feel Good

Great vibes song with beautiful vocals

Soul – playful and proud

UnkleJam What am I Fighting For

A fresh and unique hit

Pop – wild and rebellious

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NEWS

Oops – you’re bad Consumers International (CI) has released the results of the annual International Bad Product Awards 2007. Criteria for the selection of ‘winners’ included company size, global scale of sales and marketing, consumer impact and potential actionable change by the corporation.

And the top prize goes to… Award: Bad drug promotion Company: Takeda Pharmaceuticals Action: Advertising sleeping pills to children Say what? This is how the story goes: The US subsidiary of Japanese drug firm Takeda Pharmaceuticals aired a TV ad for its sleeping drug Rozerem. The ad was aired in time for the ‘Back to School’ season and used images of kids, school buses, classrooms, etc. The voice-over said: “Rozerem would like to remind you that it’s back to school season. Ask your doctor today if Rozerem is right for you.” Importantly, the ad didn’t mention the serious side effects and the precautions for children taking the drug! The Food and Drugs Agency (FDA) only gave Takeda a slap on the wrist and took six months to insist the ad be removed. CI says: “This case demonstrates the lengths to which some drug companies will go to increase sales of their products, how direct to consumer advertising can promote irrational drug use, and how weak regulation can foster irresponsible corporate behaviour. This company is our overall award winner for irresponsible behaviour in 2007.” Award: Bad drinks marketing Company: Coca-Cola

Action: Repackaging tap water Details: The problem is the packaging of tap water by Coca-Cola which caused consumer outrage. The international bottled water, Dasani, had to be taken off the market in the UK although it is still selling in the US and South America. Technically, Coca-Cola did not do anything illegal but its advertising could be construed as misleading. CI says: ”Sustainable access to essential services, such as water, is a basic consumer right. By bottling this universal resource to sell back to us, corporations, such as Coca-Cola, have created a US$100 billion industry at a time when one billion people in the world lack access to safe drinking water. Making profits out of increasingly fragile water supplies is unsustainable, irresponsible and against the basic rights of consumers everywhere.” Award: Bad food Company: Kellogg’s Action: Advertising junk food to kids Kellogg’s has been slapped on the wrists for spending billions on advertising cereal that is considered unhealthy for kids – especially those under 12. The issue is not only how it markets – giving away spectacular prizes, for example – but what it markets – in particular some cereals with a high sugar content. Complaints also abound regarding the slowness to change its marketing and communications. CI says: ”We are committed to stopping the marketing of junk food to children. Together with our members, we are campaigning for international restrictions on marketing to under 16s, to give our children the chance of a healthy start.” For the full information on the Bad Product Awards 2007, visit www.consumersinternational.org.

by richard duncan EXPERT OPINION

The battle of the mobiles

“

The real unknown is which brands will be left at the end of the data convergence rush and that is why we have witnessed a veritable bloodbath of competitive activity in the past decade and why the next 10 years promise to be no less blood thirsty

”

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Across the globe there is a huge war in progress on a scale that few have ever witnessed before. This war has been brewing for some time and has seen the breaking out of numerous fire fights and skirmishes across the world as the mobile telecommunication giants flex their muscles and fiercely contest their positions, each vying to secure their seat at the telecoms table. However, what we have seen to date is no match for what is still to come, and the battles won today will directly impact on the shape of the market in the future. As consumers, we have seen the clouds of war looming overhead for some time and watched the giants in cellular technology butt heads. We have witnessed the handset and airtime wars, the proliferation of capped plans, the emergence of 3G, and the widespread acceptance and adoption of SMS as the new way of communicating – changing the way we stay in touch and in a few short years radically altering the way we write. For the average mobile user, there is little appreciation of the scale of this war and what is really at stake. It’s not about winning customer contracts today but securing the rights and leadership of tomorrow’s mobile data market, which promises far greater revenue streams than the telecommunication players are already enjoying. We should have an inkling of what is at stake based on the significant investments being made in advertising and sponsorship alone. They may each have their own unique brand positioning and approach, but they are all united in seemingly having money to burn. An hour hardly seem to go by without these brands proudly pounding us with their brand message, presence and profile across television, print, radio, cinema, outdoor and online. In South Africa, there seem to be few major sporting or cultural events that haven’t been adopted or swamped by the trio of Vodacom, MTN and Cell C. The battle has extended deep within our living rooms as each player leverages its own brand assets, be they the strong corporate identity colours of green and blue, dominating yellow or powerful red; the charismatic characters of Vodacom, tonality of Cell C or youthfulness of MTN. The battle in South Africa is emulated elsewhere in the world; in England with Orange,

Vodafone and O2, and in Australia with Optus, Vodafone and Telstra. Interesting to note that Down Under, Optus carries a distinctive yellow corporate identity, much like MTN, and an acclaimed association to talking animals (which has striking similarities to M-Net’s brand campaign in 1995/6), whereas Telstra, as the national fixed-line carrier, sports a blue corporate identity that closely resembles that of Telkom. For now, mobile users tend to be limited in their use of their handset for making calls and sending SMSes as the various data usages are costly, unfamiliar and are a poor second to the ease of fixed-line Internet. But, when the main players put their minds to it, they will change the category, evolving customer habits and expectations and when this finally comes right, mobile users will become even more dependent on their mobile phones. This is not something that can be forced though, as highlighted by the CEO of Optus, Paul O’Sullivan, late last year: “Customers are technology agnostic. If you try to force technology down their throats, you will fail.” With the convergence of mobile telephony, television and the Internet, the battle of tomorrow is to own the high ground of data transfer. The brands that own this territory will command healthy control of the future as consumers increasingly rely on their mobile phones to access data while on the move, make better use of their down time while commuting and turn to their handsets to make purchases. Imagine being able to buy something in a shop using your phone without having to pull out your wallet, sign a credit card slip, remember a PIN or figure out where to put the change. Well, imagine no further. “The best way to predict the future is to invent it.” – Alan Kay So whatever the brand, the future is very promising. The real unknown is which brands will be left at the end of the data convergence rush and that is why we have witnessed a veritable bloodbath of competitive activity in the past decade and why the next 10 years promise to be no less blood thirsty. As the saying goes: ‘to the victor the spoils’. 

Richard Duncan Sydney, Australia

+61 41 154 9791 [email protected]

AFRICA by fulvia becatti

Effective marketing in Africa Africa waves at us from beyond our borders, bearing great potential for brands and business. Marketing Mix shares some key learnings and insights from the brand experts that have ventured forth. Standard Bank has found traction in several countries across the continent through, in many cases, joint ventures with existing banks. Marketing director: Africa, David Wingfield, reports some of the key challenges.  Lack of credible research (with the concept of research being underdeveloped in many countries). “Once you have identified what you are trying to achieve, decide whether research or tracking is really necessary,” says Wingfield. He suggests that wherever possible, companies should use desk research (this is viable for building profiles of markets, competitor analyses, country risk analyses and so on). Blogs and websites may also shed some light.  Lack of media audience data and spend numbers. Available data lacks consistency, with media owners each giving you a different view. “Research only what you don’t know, and go with the known entity – people will tell you what you want to hear,” says Wingfield.  Complexity of markets locally, regionally and continentally makes it difficult to approach the market as one mass. (“What you can do with R100 in one market is very different from what you can do with it in another market,” says Wingfield).

Complexity of the research task The Western mindset that many adopt when approaching this market has no relevance to this market or researching it. These are unsophisticated markets, so it is not viable to look for the highest common denominator.  Infrastructures are underdeveloped  Timing  Multiple language barriers  Political hotspots or conflict areas (where business runs the risk of affecting incoming global aid, for example).

Media consumption In terms of media consumption, Sharon

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Success will be achieved through a strategy that recognises the strengths of the individual country and embraces its differences.

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Penhallrick, managing director of Telmar SPC Media Systems and Consulting, has found that while there are some similarities to the South African environment, there are some key differences to be taken into account. “Carnivals, high school sampling campaigns and activations must be used together with traditional media,” she says, emphasising a holistic approach. TV is still a new and aspirational medium in many countries, especially beyond the urban centres. The phenomenon of community viewing is relevant. “They have had problems in the past with PBS broadcasting; now they are enjoying deregulation, privatisation and the establishment of new networks as well as improved programming,” says Penhallrick. “We need to be more creative with TV through sponsorships, infomercials and product placements, etc.” There is a lot of room for edutainment as fillers between programmes. Local programming especially is viable for product placements. Radio is powerful both in rural and urban areas. Regarded as the ‘personal friend and confidant’, this medium has the highest penetration and is the most cost efficient. Penhallrick sug-

gests the creative and interactive use of DJs, for example, in campaigns. Newspapers have high reach in literate urban markets, but the prevalence of print media varies incredibly (fly-by nights are a problem). Relative to electronic media, print costs are high and the quality of colour reproduction may vary from one market to the next. Circulation figures are not always accurate. Community newspapers are a viable option (in Kenya, community papers have 54 readers per copy). “Outdoor media has disproportionately high ad spend, but it is the ideal partner for radio in the rural areas,” says Penhallrick. Cinema is growing and is becoming especially popular with the youth; however, piracy is a major issue. “Keep in mind that in some countries, the men will go to movies in the evening, but the women will stay at home and cook,” says Penhallrick. The Internet is making inroads, but the percentage of Africans that have Internet access remains low. Cellphones, meanwhile, are increasing at a phenomenal rate. “People use more than one cellphone, on different networks, so they can get full coverage,” says Penhallrick. In the cellphone domain, MTN has succeeded in rebranding across Africa. Group marketing director Santie Botha had the following insights to share. MTN learned that because each country is unique applying one (or even two or three) brand slogans to the brand wouldn’t work. Instead, it allowed each country to depict the MTN brand in a way that would work for it. Several countries are experiencing war of some sort, so the environment holds unique challenges, while in some states, traditional religion and culture must be considered. In most countries, word-of-mouth marketing was found to be powerful. MTN also found that in the emerging markets, soccer and music are aspirational and very engaging; MTN has since sponsored soccer matches and also got behind the FIFA 2010 World Cup, for example. “Don’t think you know better. Don’t impose the brand and the product rules without proper research, and don’t think you can do it alone,” she says to summarise. “Success will be achieved through a strategy that recognises the strengths of the individual country and embraces its differences.” 

Vol 25 No. 11/12 I 2007 I MarketingMix 13

by fulvia becatti BRAND ANATOMY

Smirnoff vodka The 2007 Power 100 drinks brands list (compiled by consultancy Intangible Business) sees Smirnoff vodka in the number one position. It is also the spirit of choice for agent 007, whose vodka martinis have become a trend all of their own. This year, Smirnoff launched the ultimate global venture, the Smirnoff Experience, which forms part of the Smirnoff Signature campaign. Ten candidates were selected from around the globe to represent each of the vodka’s major markets, with one mission: to spend a year travelling to the biggest events in every country around the world, and document the Smirnoff lifestyle at its best. Their journey traces that of Vladimir Smirnoff , the son of the brand’s creator, almost a century ago. The Signature advertising campaign is also based on this concept and reinforces the brand’s rich heritage. The Smirnoff Global 10 are based in an

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The history of vodka: There are conflicting theories about the origins of vodka, with some believing it originated in Russia, and others, in Poland. The spirit is said to have been brewed for the first time around the ninth century, and some believe that it was initially used for medicinal purposes. According to the Vodka Museum in Russia, the spirit was originally produced from grains (abundant in Eastern European regions). Visit www.vodka museum.ru/english for more information. upmarket apartment building in über trendy London for a year; as young brand ambassadors, they are doing for the Smirnoff brand what no amount of advertising could ever achieve on its own – creating huge hype, aspiration, and credibly. The campaign is generating substantial media coverage globally, says Siyabonga Mpanza, Smirnoff vodka marketing manager. Plus, the website (www.smirnoff.com) will carry the videos documenting the venture, making the Smirnoff experience accessible to millions. The campaign strategy involves clever PR, strategic radio, cinema and TV campaigns

(featuring the Signature ad campaign), and support in clubs and pubs. The Smirnoff Experience got many hopefuls queuing at the audition venues (á la M-Net’s Idols) with the dream of becoming one of the Smirnoff Global 10. Akona Ndugane, a 22-year-old who hails from the Eastern Cape, is SA’s Smirnoff Global 10 representative. The European, Japanese and US auditions were based on digital entries (videos and websites). According to Mpanza, the challenge locally was the relative lack of digital penetration. “Our core consumers both have, and do not have, Internet access, so our strategy had to

BRAND ANATOMY

be adapted to reach a wider audience,” he says. Radio served this campaign best, as it allowed for quick updates to venues and dates of auditions. SMS, MMS and e-mail added a further dynamic to the campaign, and allowed Smirnoff to talk directly to its biggest fans. “The communication was integrated and well thought through,” says Mpanza. The word of mouth and viral aspects that were the result of the campaign have made the Smirnoff brand more alluring. “This experience has allowed us to get together with the guys who really love the Smirnoff brand,” says Mpanza. “People trust ads less and less. This venture gives us the opportunity to meet with them authentically and create fun experiences that they will go out and share with their friends. This is the best form of brand advocacy,” he says. This Smirnoff experience earns the brand the added kick of being the first drinks brand to engage in this type of multiple-platform global journey to retrace the steps of one of the central characters in the history of the brand. Well renowned for its originality, Smirnoff was also the first to extend its brand through the Ready to Drinks or RTDs, with Smirnoff Ice. South Africa is one of the top five markets for the brand, out of more than 130 markets in the

world.” In fact, we are the only major market to still sell Smirnoff 1818,” says Mpanza. “In the context of a massive global company, this is a great position to be in; it affords us a lot of latitude as a market, in terms of marketing initiatives. “We must be doing something right,” adds Mpanza. “When we talk, the centre listens”. Achieving global alignment and local relevance is a fine balancing act, but one which finds a powerful tool in searching for or spinning ideas from other markets.

The history of the Smirnoff brand: In 1864, Pierre Smirnov began distilling vodka in Moscow – with a distinct focus on quality. Smirnov’s focus paid off – the brand was awarded the title of supplier to the Russian Imperial Court. The brand was awarded the coat of arms four times, which speaks not only of the quality of the vodka, but also the public’s appreciation of it. In 1910, Pierre’s son, Vladimir Smirnov took over the business but his succession was short lived. During the October Revolution, the communist government confiscated the distillery (having prohibited private business) and the Smirnov family fled. Vladimir went into hiding, and over the next few years, managed to escape capture five times. Eventually rescued by the White Army, Smirnov travelled via Poland to Paris, where he established a new distillery. In 1933, bankruptcy forced Smirnov to sell the production rights and the brand to Rudolph Kunett, a Russian who had emigrated to the US. The brand did not fare well in the US (primarily a whisky and beer market), and Kunett was forced to sell the licence to John Martin, then president of Heublein, who marketed the vodka as a white whisky (pioneering the versatility of the white spirit). Cocktails were born and took the US by storm. By the mid 1940s, Hollywood had developed a penchant for vodka cocktails (as seen in the first Bond movies). This cocktail explosion carried the brand to the global success it enjoys today.

A few months ago, Smirnoff Black was launched locally and has created a buzz. Positioned as the jewel in the Smirnoff crown, this variant is targeted at a niche market of discerning vodka connoisseurs. “We produce it in small batches, made with the finest ingredients, and distil it four times. It has certainly earned the premium it commands,” says Mpanza. Smirnoff may enjoy its top spot, but this is not a position without threat. Other premium vodka brands are vying for top position. “There are lots of new premiums entering the market, but this is what grows the market. The more players there are in the category, the more noise we make. There needs to be a critical mass of players in a category, to make it top-of-mind,” says Mpanza. “The greater we all become at our game, the better for all”. 

Vol 25 No. 11/12 I 2007 I MarketingMix 15

by helen mcintee EXPERT OPINION

What to do when products fail? Not so long ago I was called on to provide an expert marketing opinion on the subject of ’product recall’. Last week I was contacted and asked to comment, from a marketing perspective, on the way in which the ’grounding‘ of aeroplanes by a certain airline was handled and communicated to the public. In both instances, it appears that, in my considered opinion, the issues of these ’product failures‘ were handled very poorly indeed. This was further endorsed by subsequent research that I conducted both into relevant theory as well as previous examples and case studies. We all know that in business and indeed in marketing, ’there is no such thing as zero defect.’ And we are fully aware that things can and do go wrong – products or services can and do fail, but perhaps what we are not so aware of is that it is how the company ’recovers’ from the failure that influences whether the customer will remain a customer. In fact, we should all familiarise ourselves with the facts – effective marketers do have a number of options to consider when something goes wrong, all of which have at least one common denominator, namely ’communication‘. This is the critical component as companies have to deal with both the potential loss of sales as well as the loss of consumer confidence in the brand. As marketers, we understand that every purchase will, to some extent or another, involve a certain amount of risk to the customer, such as will it do the job, will it fill the need, etc. Because of this, we must support our sales strategy and its implementation with communication plans that are designed to reduce this risk as much as possible and thus increase customers’ feelings of comfort. This is particularly important in the services marketing industry, where intangible products are very difficult to assess from a quality point of view. In instances where there are apparent defects or problems that result in a product recall, these feelings of risk are hugely amplified and the need for communication is therefore dramatically increased. In my experience and with my subsequent research into this matter, I can find no examples of products not being reintroduced into the market following their recall and subsequent damage control, except perhaps the Concorde, where issues of safety could not be guaranteed

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and thus it was decided to remove the plane from operation. This, of course, raises the issue with regard to the local grounded aeroplanes. How much damage has been done to the brand, will people ever feel safe flying in those planes again? In fact, many companies have calculated their ’window of risk‘ and once they have gone beyond that limit, it is often not worth the investment of trying to re-establish the brand. A bank, for example, has only a certain number of hours that it can afford to be off line. After that time, it realises that it has lost so much in terms of revenue and credibility that to reopen is simply not an option! In most circumstances, however, it is likely that the company will reintroduce the product into the market once the problem has been rectified. In fact, a common line of thought is that a crisis (of which product recall is certainly a major one) should be regarded as an opportunity and not a threat and, as such, a contingency plan should be in place in the event of a crisis. This is supported by the fact that by contacting dissatisfied customers to offer an apology, explanation and possible compensation, provides the company with yet another opportunity of an interactive encounter, another ’moment of truth’, which can help to establish

or re-establish a relationship that has been damaged. It also helps to identify more clearly the profile of customers for which the need for the product exists, especially in mass-marketed consumer products. It stands to reason that just because the product was defective, it does not mean that the need for the product and its core benefit disappears. Doing nothing to correct the problem and return the product to the shelves shows a huge lack of commitment to the customer on behalf of the company in filling that recognised need. Customers (and remember even as marketers we are all customers ourselves) recognise that problems may and do occur. They know that if dealt with effectively they will remain loyal to the brand and, in fact, depending on the ’services recovery levels’, they may even increase their loyalty and feelings of comfort, knowing that the company has the interests of its customers at heart. Failure to acknowledge and communicate the problem, its extent and how it has been dealt with may position the company in a negative, indifferent light and show a lack of interest. Take the Tylenol case, for example, when the product was tampered with and injected with cyanide. It was found that after the recall and relaunch, more consumers purchased the product because of the new ’safety‘ packaging. The company communicated that it had tightened up on all areas of the production and distribution process, thus making customers feel ’comfortable‘again. In summary, if a well-designed communications plan is implemented during and after the crisis or product recall, consumer loyalty and brand image can be maintained. The 2003 Pick ‘n Pay ’poisoner‘ scare was handled so effectively that its share price remained constant and consumers still supported the supermarket chain. The company’s fast action and upfront communication led to its recovery. Pick ‘n Pay CEO, Sean Summers, was commended on his visibility, availability and working with the media during the crisis. 

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

[email protected]

7 DAY [B]ITCH

Pepe Marais, rock (wanting-to-be-a-star) Aids activist / sports fanatic / dog lover / family man oh, and executive creative director at Joe Public

08/10/07 5am, and I wake up to my screaming alarm. Kill it. Five minutes later it screams again so I spill out of bed and splash on my gym clothes. Hit the gym and then hit work at 7.30am. Breakfast, admin, orders. 9am – meetings and more meetings followed by lunch on the run and studio hoo-hah. I get a phone call from our TV producer – WE’VE GOT JUST JINGER FOR OUR AIDS GIG! We can finally start doing the posters. Confirm the date – 28 November (okay, so I’m shamelessly doing a bit of PR, but it’s for a good cause). Finish work at 5.30pm and rush to Wits for my Zulu lesson. 8pm, finished my tuition, ngiyabonga, and hit the squash court.

09/10/07 5am. That damn alarm again! I get up with my eyes still closed – VUKA! Enjoy a game of squash with my wife. Breakfast, admin, reviews and then a 10.30am meeting at Naledi High School. This is the first time that I’m going into Soweto without a guide and it is totally liberating. The place has a vibe. I return to Sandton for an interview, a few key meetings, a creative rationale and then squash. I’m playing in my club’s championships and am desperate to do better than last year.

10/10/07 I really struggle to get out of bed so I hit the gym later than usual and then run behind on admin. Run into orders at 9am. We are busy as hell with about 20 new jobs in the system! Run through all the work and finish in time for my second interview at 11am with a school in Alexandra. WOW! It’s an eye-opener of note. I literally travel 2km from our plush new office in Sandton to be confronted by a poverty-stricken township! I cannot believe what happens right on the doorstep of South Africa’s wealthiest business hub. Mental note to take our entire company for a little reality check.

12/10/07 Alarm goes off at 5.15am. Hey, hey, it’s Friday! The usual gym workout, and then a breakfast meeting with a potential sponsor for our Aids concert. Yebo Gogo, we have a great brand behind our project. What a way to start my day. Head back to the office – today we’re shooting three TV ads! At 4pm, another highlight of my week – our new CI review. It’s looking awesome! Crisis management keeps me busy until 7pm, after which I hit the office watering hole to enjoy a few cold beers. Home at 8.30pm; on the couch with my gorgeous wife, our two dogs and the cat, easing into what promises to be a relaxing weekend. Go Bokke!

13/10/07 Bliss. No alarm until 9am. Squash, followed by brunch with my wife and then off to the Vaal River for a picnic with our dogs. Spend the day doing absolutely nothing, except running after dogs running after rabbits. Back home, some friends pop over for a braai. The only difference between my braai and the Voortrekker Monument is that my braai is bigger. Watch England and France in the RWC semi final – hit the sack at 1am.

11/10/07

14/10/07

I wake up positive. Yesterday’s visit to Alex really gave me perspective. Off to gym for my second weekly squash game with my wife. Breakfast, admin and 8am meeting. My list for the week has somehow grown to 91 jobs. I run through the studio to sign off a few jobs, doing everything at super-speed. Time to prepare for noon meeting with my creative directors – and I brief our PR agency. At 4pm I fit in another quick game of squash and then head off to Velocity. On the way I get a phone call – WE WON ANOTHER AD OF THE MONTH!

We have breakfast in the garden. I fire up my computer at 11am and start planning my week. Write all my emails for Monday morning, organise my schedule, prepare for my creative presentation, write a Rock4Aids corporate proposal and manage to do my Zulu homework for Monday’s class. I finish in time for my Sunday squash game. We get back home and watch the Rugga! Yes! Go Bokke – all the way to the RWC Final. We hit the sack with a smile at 11.39pm. I’m ready for another big week. 

Vol 25 No. 11/12 I 2007 I MarketingMix 17

by fulvia becatti DIRECT MARKETING

Speaking directly

Direct to Home is one arrow in the direct marketer’s quiver, and one that is improving thanks to new technologies and improved serv-

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SA has one of the highest rates of cellphone penetration, with one cellphone per adult consumer. As costs to the Internet via your cellphone start to come down, online cellphone marketing will present a broad range of opportunities.

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ice delivery across the board. Suburbs protected by booms still present a challenge for many distributors and direct marketing companies, but they are finding ways around this. “Besides

community newspapers, there has been limited success [for companies trying to get beyond the booms],” says Melvin Chagonda, CEO, Primedia@Home. “However, most marketers are looking at alternative points to access these residents. The main points are shopping centres and meeting areas close to the suburbs as well as intersections close by.” Perhaps marketers can achieve more through the use and integration of new technology and media, for example, geodemographics, geospatial mapping or variable data printing. These technologies allow for a more targeted and personalised approach and therefore less wastage of ad budgets and greater response rates. “Direct marketing is growing as customers are demanding better returns on their investment. Hard-pressed marketers are wanting a medium offering more precision. There is a lot of innovation in campaigns nowadays,” says Chagonda.

DIRECT MARKETING

Variable Data Printing (VDP) The days of vague direct mailers are over, thanks to this technology which allows customer-specific info to be merged with creative documents. The result is highly personalised communications, which lead to higher response rates and a better relationship between the brand and its target consumers. Jacquie Golding, executive chairperson, Creda Communications, refers to one of Buick’s campaigns in the US. Through VDP mailers, the company targeted 516 715 prospects; it sold 19 575 vehicles amounting to revenues of US$494 million. The advertising/marketing cost to sales ratio was less than 1.2 per cent (which was less than the industry average of 2.7 per cent). Golding adds that the Digital Printing Council and the Rochester Institute of Technology have proven that personalisation delivers response rates of between 17 and 35 per cent. Graphics and words as well as photographs can be personalised. Car dealerships, for example, can send their customers letters and pamphlets and include photographs and details of the dealers who attended to each customer. “The technology is not the constraint; the database is the most critical issue. For VDP one-on-one marketing to be effective, the database must be 100 per cent accurate. This is a huge problem for the majority of companies, as the base information is often not up to date,” says Golding. Research conducted by InterQuest estimates that VDP will continue to double each year, and that in 2007 it will have increased by 30 per cent. However, in SA, the picture looks a little different. “Local marketers are still in the mindset of mass marketing, as the cost per item is less than that of a personalised marketing campaign,” says Golding.

Geodemographics: With geodemographics, marketers can identify customers not only according to basic demographics, but also according to where they live and therefore where they shop. It’s goodbye to the shotgun marketing approach, says Lorraine Deane, communications manager, MapIT. “Most marketers, if not all, profile their clients, be it by age, race, gender, household income, etc; incorporating this demographic information into a spatial tool makes logical sense,” says Deane. With a geodemographic approach, marketers can carry out very specific and direct analysis in an area (regionally or nationally), and then determine exactly where to market their products; results can be mapped in great detail. “The results offered by geospatial tools are right down to street level,” says Deane. The cost of a full GIS that combines data sets with spatial info may be prohibitive for the smaller companies; however, there are also solutions for them. “Most marketers are already using this although the level of usage is still low per marketer. The slow down in the economy is going to put pressure on the marketers to ensure more precision in their campaigns,” says Chagonda. Precision aside, marketers could also aim for the online environment (which is free of the constraints of booms and printing costs), and look to e-mail and search engine marketing for new solutions. Integrated into a direct mail campaign, these new marketing tools offer huge potential. “Integration is a matter of pulling through a campaign on various media and portraying a consistent brand message,” says Dirk Tolken, MD, Peronii Solutions. It may be a while yet before marketers use these new technologies extensively. “It takes time for new industries to mature, also for the fly-by-nights to be

DIRECT MARKETING

weeded out, and we’re noticing that it’s finally been happening over the past few years,” says Tolken. Previously, he found that the bright minds who pioneered new media developments were not always great marketers, but things have changed. The marketing industry is taking notice of new media in a big way. As to the question of costs, it seems that online marketing really does present an affordable option (compared with traditional media). Tolken believes that as more and more companies enter the online space, so competition will drive cost inflation. “Expert advice also comes at a price, as with any industry,’ he says. On the plus side, doubts about measurability are being dissolved. “Online marketing tools are entirely measurable in real time. The problem is that those measures aren’t always put in place or communicated to clients in executive (understandable) reports,“ says Tolken.

E-mail marketing: E-mail marketing may not be new, but it is gaining favour with marketers and brands. “Local marketers trust new media, and there is a definite shift from direct mail to e-mail marketing, as it’s measurable, targeted and significantly more cost-effective,” says Michael Gullan, MD, Guerrilla Marketing. Through this medium, marketers will find it easier to target a market that is predominantly male, LSM 8-10 and 35-60 years of age. But the trend locally is to combine online and e-mail marketing with more traditional marketing media such as TV, radio, outdoor and print, he says. He has found that e-mail marketing costs up to 78 per cent less than a run of 5 000 paper-based direct mail ads. “Interactive campaigns using graphics, videos, music quizzes or games gain a consumer’s attention immediately,” he says. E-mail marketing allows the

negative brand association continuously,” says Gullan.

Search Engine Marketing (SEM)

consumer to respond through the same medium, this saves them having to phone or fax, for example. “Responses via e-mail take one hour to two days with maximum exposure on day one. A direct mail campaign would take a minimum of seven to 12 days to generate any responses,” says Gullan. Results are measurable (clickthrough rates, conversion rates, etc) and one can track how a person arrived at the client’s website. However, recent research by E-mailStatCentre.com, has found that marketers are relying too heavily on click through rates and deliverability to gauge the success of an e-mail campaign; the focus should be on the metrics that tie directly to financial returns. With the legal issues surrounding junk mail and spam, permission-based databases are the way to go. “As marketers, we need to assess the pros and cons of spam and the resulting

The lines are blurring According to marketingcharts.com, the DMA USA has found that the lines between direct marketing and brand marketing have blurred and, thanks to the versatility and measurability of direct marketing, more marketers are integrating direct marketing tactics into their brand marketing. A report published by the DMA USA found that 56 per cent of respondents use one or more direct marketing channels in conjunction with their brand-awareness advertising. The report also found that a fairly large proportion of respondents are using trackable offers, list building, calls-to-action, targeting, user-response analyses, search engine marketing and optimisation, and so on. On average, 64 per cent of marketing dollars are allocated to direct marketing and only 36 per cent to traditional mass marketing. Personalisation is also ranking higher on the list of priorities and having a positive effect on brands.

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Search engine marketing is showing promise. “SEM is the fastest growing form of online marketing in the world. This trend is also rapidly gaining popularity in SA, as marketers start to understand the benefits that SEM, such as Google Ad Words, offers,” says Gullan. He has found that globally, banner ads generate a 0.25 per cent click-through rate. “The current trend is to make use of more targeted banner ads where more demographics and user info are available, such as on Facebook, which generates a click-through rate closer to five per cent,” says Gullan. While globally, 60 per cent of online marketing spend is allocated to SEM programmes, in SA, it is allocated to banners ads. SEM includes pay-per-click marketing; “this can be extremely effective and it yields shortterm results, where search engine optimisation is more of a long-term approach,” says Tolken. These ads are served up contextually (when the consumer runs a search for ‘shoes’ on Google, ads related to this search topic will appear in the search results). You only pay when someone clicks on your ad, and you bid against competitors for the price you pay per click. “It’s not that easy though. The price you bid is not the only factor that determines your position. It’s also about the quality of your ads and landing pages, and various other factors,” says Tolken. SEM can include paid-for inclusion into search results pages. In this case, advertisers pay the search engine every time a consumer clicks on the ad. “Compared to overseas, we have been a lot slower in our acceptance of this medium. This is disappointing, considering how quickly we accepted cellphones, for example. It is only a matter of time before the newer media gets uptake,” says Chagonda. Looking ahead, we can expect to see more integrated campaigns and exciting use of new media and technology. Chagonda believes that cellphones will become the next big advertising medium locally, given the high penetration rates as well as their ability to personalise the advertising message. Gullan agrees: “SA has one of the highest rates of cellphone penetration, with one cellphone per adult consumer. As costs to the Internet via your cellphone start to come down, online cellphone marketing will present a broad range of opportunities.” 

EXPERT OPINION by michele venter-davies

Traditional versus alternative – which crew do you support? Yes, I know all about ‘the good sales pitch’, but where does b**&#!t stop and confusion start? What is actually going on in media circles? The battle between the ‘traditionalists’ and the ‘alternatives’ is as rigorous (but not nearly as entertaining) as the Red Bull Box Cart one! The brand manager is being bombarded with informative articles confirming a decline in ‘traditional media’ – while many agencies continue (huffily) to proclaim that this is all rubbish and there is, in fact, an increase in above-the-line... long live the DPS! The parade of ‘alternative media’ boffins gets progressively longer and more vociferous ... prancing along behind a ‘ring maestro incognito’. What is one supposed to deduce from numerous ‘business development managers’, each one declaring their ‘alternative’ has been proven to be the ‘fastest growing’ or ‘most impactful’? And each one has impressive statistics to back up these claims. There are two sides to every story (three sides, actually – your side, my side and the truth) but one does not know which way to turn as the trad/alt debate rages. In recent months I have made a concerted effort to absorb the media opportunities in which I find myself immersed in the course of an average (boring) week. Sitting on the lavvy in a five-star hotel I gaze at the A4 creative masterpiece lurking just out of focus on the back of the cubicle door... ‘affordable’ pregnancy test kits became a non-starter for me a while ago, but I nevertheless contemplate the number of petrified teens who visit luxury hotel cloakrooms and rush immediately to the nearest pharmacy for ‘pe(e)ce of mind’. But later I flip through a women’s magazine and wonder just how many readers stop to read the detailed copy for lotions and potions guaranteed to bestow the kiss of eternal youth or remove heinous imperfections. Then there was a table talker for a luxury day spa... as I tried to read the copy among the empty bottles, the overflowing ashtray and discarded toothpicks, I realised what a wonderfully pristine space this would be in which to show my brand off to its best advantage – especially later during the evening. Not nearly as effective as shoving a commercial into the middle of a TV

“

Viral marketing has become the bad rash of many cell users and over-zealous brand ambassadors can kill the conversation.

”

rugby game watched by inebriated and irate rugby fans that spend much of their viewing time engaged in passionate arguments about the score in the 1962 match. As I pointed my ‘Bluetooth’ (I of the blue rinse!) at an off-con poster to download an MP3 of a beer commercial jingle, I wondered if I

truly enjoyed engaging with the medium. Yes, I guess I did... but how long before the novelty wears off? How many jingles would people download... or do they collect them? But then I thought of that ‘clever’ billboard that became more and more irritating as the year wore on... people eventually took a different route to work to avoid its cheesy one-liner. The long wait at Oliver Tambo International was hardly enhanced by the repetitive slogan for ‘whichever’ car hire brand was emblazoned on the belts shaping passengers into a maze of sheep ready for the dip. But neither did that radio spot using the MD’s daughter add much to my morning drive (irritating little madam). The misunderstood term ‘guerrilla marketing’ is overused at the best of times. Viral marketing has become the bad rash of many cell users and over-zealous brand ambassadors can kill the conversation. Evangelical marketing is just that. Buzz drags teens into underground hives. Ambush creates consumer anxiety. Mobile is so in-your-face that the plastic surgery industry is likely to benefit. But ... CONSUMERS LOVE IT. We love brands that enter our worlds and know how we spend our time. Housewives don’t sit and watch the soaps religiously every evening... they go out to bars and restaurants and make friends with table talkers before they pop into the ladies for a quick bonding session with ‘the back of the door’. Women feel noticed when mobile pays them attention or when Bluetooth delivers an unsolicited gift. Men enjoy flirting with ambassadors and beaming vital info to networks of colleagues. Who has time to sit and watch one channel? Who has nothing to communicate or discuss during the drive to work? Who really notices anything in the clutter of the urban landscape? Confused I may be. Sceptical at the sales pitch I am. But... I am backing ‘alternative’ – with the odd magnificently produced cinema ad thrown in. 

Michele Venter-Davies Faculty head: Marketing and Advertising, AAA School (011) 781 2772 [email protected]

Vol 25 No. 11/12 I 2007 I MarketingMix 21

by fulvia becatti ASSEGAI AWARDS

The 2007 Assegai Awards recognised excellence in direct marketing. Marketing Mix takes a closer look at some of the gold prize winners across the various sections and categories. Section 1: Media Category: Direct Mail Gold: Lesoba Difference Campaign title: Liberty Life Architects Client: Liberty Life Architects Campaign Campaign brief and objectives: The Liberty Life Professionals campaigns comprise an existing selection of life products, repackaged to appeal to specific professional market segments. In this case, architects. Expected a conversion rate of two to three per cent. Challenges: Numerous products are available from many life assurance competitors, offering generic targeting of the professional market. Target audience: Architects, nationally, who are not Liberty Life customers. Upmarket, LSM 10, high-income earners, elitist, fairly opinionated and predominantly white. The agency identified a commercially viable database, 2 500 customers, on which an outbound campaign was conducted to screen and scrub data; 250 prospects were identified. Marketing strategy/tactics and rationale: Campaign offered professionals protection against unforeseen events that might impact their businesses. To communicate this offer, the agency designed a mailer pack that would appeal to this market. The pack carried the message that the offering is (like them) original, definitive, imaginative, unique and

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individual; it would offer them archetypal financial protection specifically designed for them. The creative concept appealed to their area of expertise, and also stroked their ego: ‘Imagine a world without people like you (comparing them to famous architects such as Frank Lloyd Wright). The campaign sent the message that if something had happened to these visionaries, we would have missed out on seminal design; make sure it doesn’t happen to you, by ensuring you are protected with Liberty Life. The door opener was a stylish moleskin notebook, with a bellyband and the call to action was a book plate. The mailer included a series of collectible postcards featuring the works of famous architects and listed product benefits on the reverse. Also, ads were included featuring the marketing message. Sales aids outlined the benefits of the product. The Leave Behind was the affirmation and a reminder of the long-term benefits of the product. Campaign costs: R248 501.50 ROI and results: The campaign generated many inbound calls and compliments from architects. From a mailing of 2 500, a 10 per cent conversion was achieved. With an annual average premium of R1 872, this campaign yielded R7.02 million (a premium return of R35.39 for every R1 spent).

ASSEGAI AWARDS

Category: Alternative Media Gold: Tequila JHB Campaign title: Drunk Driving Can Be Fun Client: Toot-n-Scoot Campaign brief and objectives: To raise awareness of Toot-nScoot and its services as well as prompt trials of the service. Individuals who have over-indulged can call Toot-n-Scoot and a driver will be dispatched on a collapsible motorbike. The driver will place his bike in the boot of the customer’s car and will then drive the customer home (where the driver unfolds his bike and heads off to the next call). Challenges: Awareness levels for Toot-n-Scoot were low, and the client had a limited budget. Anti drunk-driving media messages were not making enough impact, thanks to various barriers. Message fatigue, means that consumers are not responding to the ‘shock tactic’ TV ads anymore. Also, catching a taxi home and leaving one’s car at a pub or club is considered costly, and car theft is a problem. Target audience: Older South Africans are set in their ways (have watched their fathers drinking and driving, and are therefore difficult to convince). Younger drivers are a more suitable target audience, as they have not grown up in a drink-driving culture. The agency therefore targeted males and females under 30, to create a new ‘drinking-and-driving’ culture in South Africa. Marketing strategy/tactics and rationale: To break through the traditional Arrive Alive/don’t drink and drive messages, the agency decided to poke fun at irresponsible behaviour and explore how drinking affects one’s judgement, specifically over the festive season when people are drinking and partying more. It created a festive season creative ambush (if it’s surprising and unexpected, the target won’t zone out the message), and sent a group of ‘ugly’ people into pubs and clubs. This in itself proved challenging, says creative director, Hagan de Villiers. “It proved difficult to hire ugly people, but they were an absolute must for the idea to work… Most casting agents laughed nervously or stared blankly when we asked them for their ugliest people. We rephrased that

Category: Mass Media Gold: Action Ambro’s Campaign title: Rand Show TV commercial Client: The Rand Show Campaign brief and objectives: Reposition the Rand Show as a family event with something for everyone. Generate feet through the gate (ticket sales). Increase spending in terms of shopping. Challenges: The Rand Show has been running for 117 years, but over the years has been clouded by controversy and a poor image (marketed as many expos rolled into one). It was perceived as a boring fleamarket/trade show. “The major challenge was to come up with a concept that is broad enough to cover both the Rand Show and the events that occur within it,” says Philip Southern, creative director, Action Ambro’s. “The challenge from there was making a commercial that would have broad based appeal while not becoming something that only appeals to the lowest common denominator”.

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to ‘most interesting looking’, which didn’t work either. ‘Unusual’? No chance. Our resolve was then to get regular people and ugly them up with the help of a make-up artist”. Each of the candidates wore a T- shirt carrying a message such as: “When I start looking like a supermodel to you, it’s time to call Toot-n-Scoot”. These people were made the medium. Posters of these characters were placed on toilet doors; cigarettes lit from the wrong end were placed in ashtrays with the message: ‘When you start doing this, call us”. The parking lots were tagged with huge ‘walk the line’ pavement art; the artwork featured a jagged white line, and the message: ‘if you can walk this line, call this number’. Campaign costs: Below R50 000. ROI and results: After the first execution evening, the story hit the radio stations and national newspapers as well as marketing websites. Continued exposure was achieved through DJ discussions and live call-ins on the three biggest radio stations (with a combined listenership of 3.1 million). None of which was paid for by the client. “It was surprising. One can determine an approximate rand amount based on similar media placement costs but that’s just an indication of what it might have cost, not what its true value was or what its true reach was. For us, its true value lay in the fact that an extremely important message was being spread across our nation by credible third parties. How many lives might have been saved? We’ll never know, but we do know you can’t put a rand value on that,” says De Villiers. The campaign and its media exposure translated into new registrations and Toot-n-Scoot enjoyed an ROI of over 2 000 per cent.

Target audience: Any member of the public, but specifically, families. Marketing strategy/tactics and rationale: The agency had to change the strategic approach from a fleamarket position to an event boasting hundreds of activities and indulging a variety of interests. A TV campaign was created (in conjunction with press, response marketing, outdoor and pole advertising), which would address each and every activity taking place at the Rand Show during its three-week run. The TV commercial would therefore need to carry 18 different messages for the 18 activities that would take place each day (these would need to change on a daily basis). To achieve this, the agency devised two low-cost commercials that highlighted the five most important events, and then tagged each one with a 10-second call to action sting, which changed daily. The brand idea was ‘bring everyone’, and this was communicated by showing individuals performing actions that don’t make sense without the involvement of a group of people. Campaign costs: R250 000 to R499 999. ROI and results: The TV ads proved very popular and received an Orchid Award in the first week of flighting. “Research also indicated that TV was the main reason that people attended, in comparison with other ad mediums),” says Southern. Attendance increased by 50 per cent, bringing in 600 000 visitors (up from around 350 000) through the gate, despite fewer concerts (which are major drawcards). Children’s ticket sales increased by almost 60 000.

ASSEGAI AWARDS

Category: Multiple Media/Integrated Marketing Gold: Wunderman SA Campaign title: SMS Ya Seiva Client: MTN Campaign brief and objectives: To increase SMS usage by five per cent among the target audience; to educate them about how to enjoy the benefits and savings that can be achieved by using SMS (quick, convenient and more cost-effective than a cellphone call). To establish top-of-mind awareness of MTN’s SMS service. Challenges: Industry trends showed that the SMS market had potential value but only if the previously unaddressed sectors of cellphone users were taught how to make use of SMS. The competitive environment consists of three other cellphone network operators. Target audience: Low income, poorly educated and in some cases illiterate South Africans aged 16 to 24 in both rural and urban areas. Almost all of this target market owns cellphones (mostly second-hand) and all purchase their airtime in advance (prepaid). There was an exceptionally low degree of SMS usage among this market. Marketing strategy/tactics and rationale: The quick, catchy slogan of ‘MTN SMS Ya Seiva’ was relevant in all 11 official languages (an MTN SMS can save you time, money and hassle). This core message was communicated via an incorporated media campaign that included the unusual use of industrial theatre at taxi ranks and bus stops, backed up with a graphically illustrated, entertaining comic book. “This ensured that we reached our target market with a powerful and consistent message, and addressed them in a communication style that was relevant and meaningful to them,” says Matthew Kretzschmar, executive creative director, Wunderman SA. These explained how to send an SMS as well as why it will save the sender time, money and hassle. The comic book also intro-

duced an SMS-speak dictionary, special offers on phones and a competition. “The comic book (which was distributed to millions of South Africans) invited a direct response to enter a competition which achieved significant results,” says Kretzschmar. Murals of the comic book characters were painted on the walls of buildings frequented by the target market. All of this was supported by traditional ATL elements (TV, radio and prints). The campaign positioning: MTN is your partner in communications everywhere you go, extends the idea that MTN’s SMS services can help you to achieve what you want from life. Campaign costs: Media cost R2 million; production cost R1 million. ROI and results: The competition received over 100 000 entries (a response rate above 10 per cent). Over one million people attended the live industrial theatre events. The promotion resulted in 8 500 handset sales per week (as opposed to the norm of 2 000, an increase of over 300 per cent). In two months, SMS usage increased by an extraordinary 8.5 per cent to 50.12 per cent among the entire MTN customer base. The campaign achieved MTN’s second highest monthly SMS activity ever. The campaign also won a 2007 DMA USA Echo Award as well as the 2007 Lester Wunderman Gold Award for Marketing Innovation.

Category: 3D Gold: Lesoba Difference Campaign title: Medshield Aids Day Campaign Client: Medshield Campaign brief and objectives: Medshield had undergone a change in their direction, strategy, business model and target market. Therefore, objectives included, raising awareness around HIV/Aids; building the Medshield brand within the corporate sector (particularly among small and medium-sized enterprises), getting the Medshield brand into the boardroom of prospects and drive enquiries; and, to drive engagement with target markets. Target audience: Target audience were mid-sized and large blue-chip companies’ decision makers (when it comes to medical aid selection) – specifically HR directors. Using a database, the agency moved from a total universe of 232 records, down to 100 records. From this, client anticipated a door opening opportunity at five corporates i.e. a five% response rate. Marketing strategy/tactics and rationale: The strategic route taken was to send an engaging, interest-generating and interactive pack to selected corporate recipients/prospects. Medshield put up a defined amount of CSI investment money in increments of R10 000 to give away to an AIDS charity – and the agency’s job was to find an interesting way of ‘allocating’ this money while also achieving the marketing objectives. The agency decided to build the awareness/participation pack around something memorable and tangible that could be displayed in the recipient’s office – the idea being that when a travelling Medshield representative spotted the pack elements displayed in the offices, during a

certain time period around AIDS Day, Medshield could elect to donate the R10 000 to the AIDS charity chosen by the ‘winning’ company. Recipients would then feel they were getting something of value, while also being given the opportunity to help a charity of choice, by simply putting up, in a prominent place, the stunning photographic canveses. The positioning strapline developed by the agency for the medical aid was thus ‘A Tradition of Nurturing’. Each photograph was packaged in a brown cardboard carrier with strong call-to-action copy on the front that read: ‘Invest in life… Let Medshield donate R10 000 on your company’s behalf to the AIDS charity of your choice’. Each recipient received one of six black and white shots, printed on canvas; each canvas came with an A5 brochure resembling an art catalogue, tied together with symbolic red ribbon. The brochure featured a letter, all the photos in the collection as well as information on Medshield. The brochure was perforated so that the photographs could also be torn off and used as postcards. Each photograph was accompanied by a business card sized tag with the photographer’s name and date of the work – to convey the art concept further. Campaign costs: Cost per lead: R3 703. ROI and results: Of the 100 packs that were sent out, 94 were delivered successfully. Twenty seven companies responded to the campaign (which equates to a 28.7 per cent response rate). Sales from the campaign are not as yet concluded as medical aid is changed annually, hence leads have been worked during 2007 for swap-over in January 2008. It is anticipated that 40per cent of leads ie 11 conversions will be secured. Some R270 000 donated to HIV/AIDS causes – determined as five per cent of the value to be generated from converted business.

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ASSEGAI AWARDS

Section 2: New Media Category: e-Marketing Gold: Lesoba Difference Campaign title: Nestle College of Chocology Client: Nestle. Together Nestle is a special initiative set up by the company to ‘get closer’ to its consumers and target markets. It is a club that encourages dialogue between Nestle and its consumers through special club communications, newsletters, free samples as well as value-added benefits, such as event invitations or the sending of a recipe book. This platform has enabled the company to better understand consumers and their buying habits. Campaign brief and objectives: To drive engagement with the brand and to gather vital research data in respect of buyers of Nestle chocolates. Secondary objectives included supporting the ethic of open dialogue that is the basis of Together Nestle; creating awareness and building the Nestle brand; creating a sense of fun around the brand and products; establishing the Nestle brand as technologically smart and gaining the buy-in of a younger audience. Target audience: Chocolate and sweet consumers between the ages of 18 and 30, both male and female. An initial base of 1 200 Together Nestle participants was targeted, the idea being that pass-on would occur within the common interest community group (although the pass-on is not governable).

Marketing strategy/tactics and rationale The most cost effective way to achieve the objectives was to communicate electronically through an appealing viral campaign that recipients would want to pass on. This would serve as a means to educate recipients on the different Nestle brands of chocolate. An opportunity to win a prize (Carrol Boyes cutlery), once recipients had provided certain information that Nestle was looking for, would also be included as a call to action and response booster. The viral game was based around the idea of chocolate and one’s habits in terms of consuming it. The agency knew from research that the way in which chocolate is consumed indicates personality; based on this, it created a ‘chocolate horoscope’. Also, in the registration section, it asked for their actual date of birth and, using Linda Goodman’s star signs, the agency linked each profile with one which is close to the personality of the engager. Within the game, participants had to complete certain fields to gain entry to the next level (great for data building). Plus, participants who referred friends gained an additional entry for each referral. Weekly winner e-mails and referred friends e-mails were sent throughout the campaign. Campaign costs: R35 000 ROI and results: The campaign built a peer database of 13 470 (an increase in base size of 89 per cent). Pass-ons from some participants exceeded 200 referrals. The cost of acquiring this data via traditional interviews of the initial 1 200 base would have been around R114 000. The campaign therefore enabled a saving of 325 per cent for the client.

Category: Mobile marketing Gold: Digital Solutions Group (DSG) Campaign title: What’s Your Flava? Client: Nando’s Chickenland Campaign brief and objectives: To get to know its customers, and increase frequency and wallet share from customers. To drive additional feet to store and increase awareness of the nearest store to the customer as well as insight into customer preferences. Challenges: This campaign would require a fundamental shift in the manner in which Nando’s marketing uses its advertising. Marketing strategy/tactics and rationale: This cellphone SMS marketing competition would complement a five-week ATL marketing and advertising campaign. The agency included a 34141 short code premium-rated, action-driven SMS number in the ATL advertising, with the focus on customers sending an SMS containing their favourite Nando’s restaurant and chicken ‘flava’. Customers received immediate responses (winners received a virtual SMS voucher instantly). Plus, customers had the chance to win a trip for two to lunch at Nando’s in London, Sydney, India or Dubai valued at R60 000. The instant winner SMS voucher redemption mechanism required that the Virtual Call Centre receive and process customer SMSes instantly, matching the restaurants against its existing restaurants database and then sending a return SMS (including vouchers, of which there were 25 000). Specific voucher numbers were issued to specific restaurants, and once a voucher had been redeemed, it had to be removed from circulation nationally to prevent repeats. The challenges for DSG and the Virtual Call Centre were exaggerated by the fact that Nando’s restaurants make use of three different types of

point-of -sale systems (integration had to cater for three different interfaces, namely Linux, Java based and Microsoft based). However, results could be viewed in real time. The web-based MIS system provided Nando’s marketing with intelligence on media placement and success in the various regions. The reporting also covered how many SMSes were received and processed nationally. Campaign costs: R2 premium-rated service. ROI and results: Nando’s processed over 100 000 SMSes, and therefore generated in excess of R1 million (a new revenue stream never captured before by Nando’s in all its ATL campaigns). The campaign also boosted restaurant turnover due to additional purchases that have been valued at an average basket size of R60. The issuing and redemption of 25 000 quarter-chicken vouchers with an average basket size of R60 generated approximately R1.5 million in five weeks.

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ASSEGAI AWARDS

Section 3: Strategic & integrated marketing Category: CRM/loyalty Gold: PrimaPlus Campaign title: Shell G-Force Programme Client: Shell Lubricants Campaign brief and objectives: To build strong personal and business relationships between the various role-players in the Shell Lubricant distribution chain. To drive Shell Lubricant distribution and sales volume in both independent workshops (IWSs) and independent spares shops (ISSs) that buy in bulk from specific Shell Lubricant distributors. A prolonged approach was needed to create long-term loyalty. Need to offer a compelling reason for bulk distributors and end-users to choose Shell over other lubricants. Challenges: In the lubricants sector, Shell has a number of competitors. Target audience: Channel operators who buy in bulk and distribute the product as well as frontline staff (mechanics, forecourt attendants, etc). Marketing strategy/tactics and rationale: The agency created the Shell G-Force programme, a rewards and points-based programme with an accumulative nature. Points are earned on specific Shell Lubricants purchased from Shell resellers and distributors. Once enough points are earned, these can be redeemed for rewards listed in a catalogue. Makro provided the rewards and the G-Force Makro Reward Card. Keith Lindsay, says that new business director, Prima Plus adds that the partnership with Makro was a major innovation, seeing as it was the first time that they had launched a third paty, co-branded, re-loadable card in their stores. The theme for the programme was ‘G-Force weather’. Teaser e-mails bearing the message: ‘Storm warning – high G-force expected’ was sent to all delegates attending the programme’s launch event. These were followed up with theme-appropriate gifts (branded hard hats and torches,

etc) as well as brochures which explained the salient aspects of the programme. Distributors were then asked to recruit the owners of the stores they service onto the programme (with an incentive of 2 500 points to accelerate the process). The recruitment data was captured to a database and an acknowledgment SMS was sent to each recruit; they also received personalised packs (welcome letter, catalogue, etc). From then on, they were required to send in copies of Shell Lubricants invoices to earn points. Quarterly and monthly communications were sent to members and key metrics reports were sent to Shell head office on a monthly basis. Value-added events allowed for interaction between customers and distributors. A call centre was established to deal with queries. According to Price, the call centre is an in-house info hub, which is run by a team at Shell. “By far, the majority of calls received are programme related and these are directed to PrimaPlus, where the members’ data is housed. Point queries, addresses changes and other communication is therefore immediately dealt with in real time,” says Lindsay. Campaign costs: R1 million plus. ROI and results: At the time of entry, 495 ISSs and ISWs had been recruited (against a target of 600 for the campaign). Of these, 83 businesses are new stockists of Shell Lubricants. An amount of R191 189 has been earned in G-Force points, of which R25 352 has been claimed and redeemed for rewards.

Category: ERM Gold: Wunderman SA Campaign title: FNB Project Protocol Client: FNB Campaign brief and objectives: First National Bank’s Commercial Division staff needed to know basic protocols, which included general business etiquette (how to answer the phone, how to handle a business lunch, etc). Previously, this was communicated to staff by means of a two-day seminar, facilitated by a lecturer. These seminars were poorly attended, and so FNB approached the agency with a brief to make the Protocol Training more interesting. The objective was to get at least 50 per cent of the staff to complete all the training (an improvement on previous attendance of 30 per cent). Challenges: The programme needed to appeal to a broad range of people and work in all areas of the country. The programme needed to stand out, because staff members are constantly bombarded with communication about the bank’s many products and programmes. Target audience: FNB Commercial staff members; approximately 2 000 people, based across the country. Staff ranged from senior managers to entry-level staff. Marketing strategy/tactics and rationale: Staff were engaged via the intranet, through a ninja-themed campaign. The information to be presented was broken into manageable point-form sections, each of

which was followed with a multiple-choice quiz; staff needed to complete the quiz with a score of 70 per cent or more to continue. Once the quiz was completed, staff were rewarded with a fun and interactive game (featuring a ninja chicken). Fun prizes (both individual and regional), including helicopter flips, hot air balloon rides, and chauffeur driven limo rides, incentivised the interactions. Staff were driven to the intranet by a number of marketing devices: posters, live actors as well as e-mails and desk drops. The database was updated regularly, indicating which staff members still needed to participate in the training; this allowed the agency to target these staff members directly with follow-up e-mails, and encourage their participation. The main campaign line was: ‘Beat your boss’. Follow up executions featured lines like: Thrash Tracy from Tshwane. Campaign costs: Production cost of R200 000. ROI and results: The training programme was attended by 59 per cent of staff, whose reactions were positive. The client now has a database of staff members who have completed the training and can continue to encourage other staff members to participate. “The campaign changed the way FNB approach training in that it was an unexpected and different way of tackling what can be seen as a very boring subject. The energy and intrigue of the Ninjas was infectious and resulted in many more people completing the training than in previous years,” says Kristen Pote, senior copywriter, Wunderman SA.

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ASSEGAI AWARDS

Section 4: Technology Solutions Category: Database Gold: 5th Dimension Marketing Campaign title: Tim and Tom Client: 5th Dimension Marketing Campaign brief and objectives: To develop and provide an easyto-use analytical tool that would deliver significant segmentation potential for the direct marketer. Challenges: Recency-Frequency-Money (RFM) as an analytical tool was developed over 50 years ago, but analytical skills are required to build such models (which we refer to as TIM – time-interactions-money). 5th Dimension Marketing needed to create an easy-to-use software program that would enable anyone to run TIM models. Target audience: Marketers using a database (to date, the target audience has been the agency’s own client base). Marketing strategy/tactics and rationale: To address the objectives and challenges, the agency developed tracking of movement (TOM), which would reveal trends in the TIM data. With the TIM module, client data is loaded into the program, and the user can input various RFM options and view different output scenarios (viewed as RFM segments). Once the user is happy with the results, the total database is sorted into 27 RFM segments. Customers in the model are now available for campaign selections. The TOM module (part of the same program) allows for further segmentation to identify customers that are increasing or decreasing in value, exhibiting inconsistent behaviour, etc. All of this can be sorted and analysed by segment. Results are available immediately, at the click of a button. This module enables marketers to move away from ‘one-size-fits-all’ communications. Plus, the selected customer data can be immediately exported to a CSV file for mail merge or other campaign purposes. “This software sits on top of the client’s data. The user of the software can then play with different variables across the three parameters (recency, frequency and money) to create 27 different segments. Each segment then has a logical set of actions that flow from the segmentation,” says Keith Wiser, managing director, 5th Dimension. He adds that this is ideal for companies that have regular interactions with clients, but stresses that it requires good transactional data to work with. “It’s particularly useful for finding what we call ‘shooting stars’, that is customers who suddenly show signs of high activity; or what we call ‘black holes’, which show the converse behaviour. ROI and results: TIM and TOM have been used to create campaigns in the casino environment, where customer behaviour is known to be extremely volatile. It has also been used to improve targeting for a fundraising client; in part, it contributed to a 76 per cent increase in response rates and a 33 per cent increase in average donation value. For another client, it has been used to identify prospects for a new product from the existing database.

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ASSEGAI AWARDS

Section 5: Creativity Category: Art Direction Gold: BrandNew Advertising Campaign title: Where Does Poo Come From? Client: BrandNew Advertising Campaign brief and objectives: Self-promotion of specialist agency. It wanted its target audience to call it to secure a meeting with them. Challenges: Marketing directors, managing directors and marketing managers are bombarded with requests for business from advertising agencies, media owners and other suppliers on an ongoing basis. Previous experience taught the agency that cold calling was not going to work (voice mail and hardened personal assistants made it impossible to sell the service). Target audience: Marketing directors, managing directors and marketing managers of blue chip and multinationals based in South Africa. Fifty large companies were targeted. Marketing strategy/tactics and rationale: The solution to the problems was to develop a direct mail piece that could be hand delivered to the corporate head office of the targeted companies. The piece needed to provide insight into the services offered by the agency without revealing too much. It set a goal of 20 calls, resulting in 15 meetings, leading to at least two invitations to pitch on creative briefs. The creative included a funny story, which challenged the reader to tell their target audience a different story (or at least, with the help of the

Category: Copy Gold: PrimaPlus Campaign title: Vuyiswa Goes Home (annual report 2006) Client: Home From Home Campaign brief and objectives: Home From Home provides supported and supervised community-based foster care for orphans, abandoned and vulnerable children. The agency wanted to create the first ever annual report for Home From Home, to serve as feedback to existing donors, as well as a marketing and awareness tool for potential donors. The report needed to show how and why Home From Home was established. Also, to convey the seriousness of the plight of the orphaned children, by sharing some hard-hitting facts and statistics, while also detailing the progress the home has made. Challenges: A limited budget; this was to be the first annual report, for a newly established organisation. Target audience: Existing and potential donors. Marketing strategy/tactics and rationale: The annual report was created in the style of an old-fashioned children’s reader (Vuyiswa’s story) which most people could identify with (the language was kept clear and simple). The design was used as the vehicle for carrying harder facts and figures; these were worked creatively into the design elements without having to deviate too much from the story. The story itself would be

32 MarketingMix I Vol 25 No. 11/12 I 2007

agency, to tell their existing story in a different way). The mailer was made up of a personalised envelope and letterhead, and a modern storybook. The envelope asked: ‘Where Does Poo Come From?’, to intrigue the recipient. The storybook answers the question with an unexpected twist, and the letter ties it all together and concludes with a strong call to action. “The art direction and the theme that we used ensured that the pack stood out above the clutter in what can often be a staid and boring corporate environment,” says Shaun Symm, creative director and managing member, BrandNew Advertising. Campaign costs: R17 111 (ex VAT) ROI and results: Fifty per cent of the recipients called the agency. “The campaign proved to clients that the service we offer delivers a return,” says Symm. “Thus far, we have completed work for two of the companies who contacted us, leading to a 14 per cent increase in billings. In terms of ROI, for every R1 spent on the campaign, the return was R49,50.”

typical of the stories of many of the children being cared for by Home From Home, and therefore provides real insight into what these children go through. The size of the annual report lent itself well to being posted, without incurring excessive postage costs. With the help of the agency’s print suppliers, the obstacle of a tight budget was overcome: the agency managed to produced the 2006 Annual Report for Home For Home at no cost to them other than distribution costs. Campaign costs: NA ROI and results: Home From Home have found the annual report very useful as a door opener for cold calls, as well as a reporting tool for existing donors. The report took the pressure off volunteer fundraisers, who could send this book on to companies and generate greater interest (ie. higher chance of conversion).

ORGANISATION OF THE YEAR The Gold Award received at the DMA’s Assegai Awards on the 5th November 2007.

YOUR DIRECT MARKETING PARTNER The success of Computer Facilities is measured in terms of our clients’ perception of the service they receive, not our perception of the service that we provide. The success of any direct marketing campaign rests on the quality of the service bureau charged with handling the mountains of data to be utilised. This is why Computer Facilities, a service-orientated bureau and outsourcing facility, has been in business for 25 years. Computer Facilities is a direct marketing industry stalwart that is recognised for its service to clients, advertising agencies and the Direct Marketing Association.

“Our difference is not based on price; we’re not the cheapest. Our difference is based on our impeccable service and the fact that our clients’ needs come first – this is why clients stay with us for years.” – Ian Geary, Managing Director, Computer Facilities. Computer Facilities has a long history with the direct marketing industry after it started as a mainframe computer bureau. The company has changed with the times and today its business is 95% direct with clients and 5% involvement with agencies and clients. Amongst their clients are some of the biggest South African corporates including Absa and Nedbank and they also host the Direct Marketing Association database. Computer Facilities focuses on four main aspects of direct marketing services: An Outbound Call Centre, data processing, laser printing and fulfillment through their integrated offerings detailed below. One of the latest additions to the services being provided is Geo-coding – this is the process of assigning geographic coordinates (e.g. latitude-longitude) to street addresses, as well as other points and features. With geographic coordinates, the features can then be mapped and entered into Geographic Information Systems. Geo-coding assists clients in exploring their customer markets, help project sales and analyse market penetration.

A major retailer is using this service to determine where stores should be located conveniently close to their customers.

Company Structure Computer Facilities: Level 1 BEE Compliance. On 1 March 2006, 49% of Computer Facilities was sold to its employees. An employee trust was set up for all staff. To qualify for the trust, an employee has to work for 12 months and if an employee leaves the company within three years, they forfeit the nontransferable units. Amazing fact: the average length of service at Computer Facilities, excluding the call centre staff, is in excess of eight years. Advertorial

COMPUTER FACILITIES BUSINESS PROCESSES Direct Marketing processing facility Computer Facilities provides the following services: • Capacity to process millions of records per campaign • Comprehensive data checking • Data enhancement and correction • De-duplication of names and addresses where no ID number present • Comprehensive data demographics analysis

Valid8 – Developed by Computer Facilities and certified by Microsoft This comprehensive package verifies postal codes and suburb/place names according to the Post Office official tables and Computer Facilities own tables of the most common misspellings – applies corrections where applicable. It also caters for address formats in the informal areas and provides comprehensive demographical statistics.

Laser printing and associated services Capacity for print runs in excess of one million. Letter set-ups Digitising logos and signatures Sorting data by postal code and any other field e.g. surname Apply all variable data to Computer Facilities unique print package PrintNet, which offers full document composition capability, merges variable data with letter copy and creates images and prints.

Call Centre Outbound telemarketing Inbound response management Over two years ago Computer Facilities extended its services to include a 48 seat out bound call centre. In August 2005, Computer Facilities was awarded the Nedbank Card Business and a year later increased the number of seats to 112. The Call Centre is currently concentrating on outbound selling. Sales progress is monitored by clients through an on-line reporting service, reflecting up to the minute results

Response management facility Policy Administration – including the issuing of policy documents and the collection of premiums Mailed responses Bulk inbound faxes Bulk SMS Hosting Web Services Bulk e-mailing Daily statistics through their On-line Reporting Services

CRM – database management and control facility Custom-built solutions Complimented by the Response Management Facility

Contact Computer Facilities: 387 Surrey Avenue, Randburg Tel: (011) 577 2600 • Fax: (011) 577 2662 www.facilities.co.za Managing Director: Ian Geary: [email protected]

Ian Geary thanks his staff for their dedication, attention to detail, and team work in servicing our loyal clients.

ASSEGAI AWARDS

Category: Creative Solutions Gold: PrimaPlus Campaign title: MWEB Voice Box Client: MWEB Business Campaign brief and objectives: Promote Voice over IP (VOIP) to 1 000 of MWEB Business’ high-usage ADSL customers. MWEB promised to save them up to 60 per cent on call costs charged by Telkom. Challenges: Broadband connectivity is still relatively new in SA, and penetration is also low as a result. VOIP offers an alternative to Telkom’s services at much lower cost (it uses an ADSL line). But awareness of VOIP is even lower than for ADSL. The corporate market has not been addresses by Skype, which offers VOIP. MWEB Business wanted to be the first to introduce VOIP to businesses using ADSL, as a package that could save them money. But it knew that its customers were afraid of and unfamiliar with the technology. The market associated VOIP with Skype, and thought one needed headphones and devices to talk through the computer. They were not sure about the quality of VOIP or how to install it. Other concerns included hidden costs and downtime of the service. Target audience: MWEB Business’s 1 000 top ADSL customers (companies who were using ADSL substantially enough to indicate that they would benefit from the call cost savings through VOIP). Marketing strategy/tactics and rationale: MWEB needed to break through the clutter that busy CEOs and CFOs of medium-sized companies receive each day, so that they could communicate the benefits of VOIP to them. They needed a 3-D pack that was startling, but not complicated; it needed to cut through the ‘it’s too complicated, don’t tell me about it attitude’ of their targets, while showing them the benefits of the service. MWEB promised to save its targets up to 60 per cent on call costs charged by Telkom. This programme is still rolling out, but is staggered; this means that MWEB’s account managers can schedule appointments, conversions and installations. The 3-D pack included a phone (to take the focus away from computers) and an incentive of R100 in free calls. A personalised letter that talked about VOIP and the offer was included in the pack. Because the letter was sent by the CEO of MWEB, it carried more weight. It also introduced the account manager and included their contact details. The front of the box promised potential savings, and once the targets opened the box, a simple switch automatically started the phone ringing. On answering, a voice explained that they’d just experienced how easy it is to use VOIP, and directed them to the account manager’s business card and the information brochure. This was interactive, exciting and startling. “The potential ROI is huge. If you consider the average medium-sized enterprise’s Telkom phone bill, and then think about that revenue going to MWEB instead and for a sustained period, and then add on service charges (which are still lower than Telkom’s), it’s an enormous, brand-new revenue stream,” says Kathryn Price, creative director, PrimaPlus. Campaign costs: R200 per pack. “MWEB were was prepared to put in the money if it got the results – it had confidence in the pack and saw the cost being recouped quickly,” says Price. ROI and results: At the time of entry, 60 per cent of all packs had elicited a confirmed appointment with an account manager. The cost of the packs was recovered through installation.

34 MarketingMix I Vol 25 No. 11/12 I 2007

Marketing Direct – Best Practices Workshop 21st February 08

Sandton Sun Hotel, Johannesburg Incorporating the best of the Assegai Awards Marketing Direct is about best practices delivered by the best direct marketers in South Africa. The workshop will draw from the Assegai Awards 07, demonstrating the principles of successful direct marketing.

Marketing Direct Programme Research Stimulating Response Andrew Ambrogioni, the 2007 Assegai Awards Direct Marketer of the Year, will identify the triggers that boost response. Andrew will also look at the power of emotion based on astute interpretation of data analytics and qualitative research techniques.

Integrated Marketing How should marketers select and weight the appropriate components of the marketing mix to boost direct response? The session will be led by Michelle Perrow, newly inducted into the DMA Hall of Fame and MD of Lesoba Difference, a big winner of the Assegai Awards.

The Role of Creative in Direct Mail Today Traditionally, direct marketers have always underestimated the importance of the creative execution. However, in the time-pressed, design-savvy environment of the ‘noughties’, good creative can be the difference between a direct mail piece being binned, opened or actioned. Primaplus’s creative director, Kathryn Price McKay, puts the importance of good copy and design under the spotlight and showcases the work that won both Gold, and the Inkosi Award at the Assegais 2007.

Mobile Marketing Rick Joubert, executive head for Vodacom, talks about the impact of mobile marketing including: 

Mobile as an outstanding stand alone direct marketing medium



Mobile as an integrated response channel.

Adapting to Legislation The National Credit Act, the Consumer Protection Bill and the Protection of Personal Information Bill have and will affect marketing practices. Christiane Duval is a director of the Direct Marketing Association and closely involved with the legislation. She will advise on how to ensure your marketing practices remain customer friendly and within the constraints of the legal requirements.

Direct Marketing Masterclass Andrew Ambrogioni, the 2007 Assegai Awards Direct Marketer of the Year, will involve you in preparing a direct marketing campaign drawing from the best practices demonstrated by the Assegai Award winning entries. You will learn some golden rules and hot tips, which will significantly increase response to your direct marketing campaigns.

Pricing R2 650 per delegate R2 250 per delegate for three or more delegates (plus VAT)

Enquiries: Daisy Mulenga,

[email protected]

or 011 234 7008

by nici stathacopoulos EXPERT OPINION

How do we define direct marketing? In recent months, I have faced many clients asking for direct marketing, but who have no lists of their own of who to market to. Before we embark on any marketing campaign, we have to understand the objectives of the campaign and what is available to us so that we can maximise the budget and ensure we achieve the desired results. Although many marketers don’t have databases, they are now realising that they need to have more information, including the answers to these burning questions:  How do I find out who my customers actually are?  How do I find out more about my customers?  How do I ensure my customers return, when I don’t know who they are? The client’s brief requests a ‘direct marketing campaign’ to build the above information, but they don’t have lists to market to. Agencies then recommend an indirect approach using ATL channels, but often our traditional marketers feel that these are not direct channels. How do we overcome this argument, and how do we engage consumers who use our brand and yet are faceless? When we judge awards, we look at campaigns in the direct category, and need to shift our thinking: just because the channel is not mail or e-mail, doesn’t mean it’s not direct! We have to start somewhere, be clever in the use of our channels, test and trial, and see what delivers the best results. This argument defies logic in many instances – if I spray the market with flyers then how do I know it works? The answer is quite simple: if your creative breaks through the clutter and has a very strong call to action, then you will realise results. Once you capture the information, you can ascertain whether this worked or not. But we have to build the list somehow in order to answer the above questions. To build these lists, we need to go into the above-the-line space, which means we have to develop indirect direct campaigns that have a very strong call to action. Whether these ‘adverts’ appear in the form of radio, TV or print they are, in fact, direct marketing in its oldest form; we have to engage our consumers (even if they are using our products) in activations – malls, traffic lights, taxis, streets and online. As part of the creative, and besides the strong call to action, often we have to incen-

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“

By targeting in an environment where it knew the audience had an affiliation to the vehicle, it could maximise its ’indirect direct‘ message and prove sales directly to its efforts.

”

have our list and start communicating to consumers and then measure their change in behaviour towards our brands. But I believe that using traditional channels and offering incentives gives our marketers a fighting chance to build their bases – we know advertising works, but by maximising our messages using traditional direct marketing language, we will at least know which 50 per cent of our advertising worked. The other burning issue we face in direct marketing is even more interesting for me. Several clients are happy to spend millions on television advertising, building their brand, without setting measurable sales objectives; but they will give their direct marketing agencies a smidgeon of their budget and set down very hard and tangible objectives for sales. If we only engender a three per cent response, then we have all ’failed‘. But at least we know we got that response and sold product. Plus, with that three per cent response we can find like-minded consumers within that base and target them more specifically. Marketing is an art and a science – it is imperative that we build brands that consumers want to use. Once we have the consumers, that’s when the science of direct marketing kicks in – as soon as consumers use your brand, find out more about them, and target your messages clearly – relevant, regular and engaging communication will no doubt bring them back, will ensure they tell their friends about your brand and will ultimately ensure they move up the loyalty ladder. Our London office recently ran a campaign for Golf Plus; it investigated who had bought the vehicle in the past (by closely examining the owners’ information) and discovered that many Golf Plus owners had a very strong interest in gardening. Using this information, it then embarked on strong campaigns at gardening shows, displaying the vehicle and activating the brand by giving out books, cards and information. By targeting in an environment where it knew the audience had an affiliation to the vehicle, it could maximise its ’indirect direct‘ message and prove sales directly to its efforts. 

Nici Stathacopoulos tivise – how do we know that consumers aren’t just responding for the gift or draw for a prize? We don’t. We can only ascertain that after we

managing partner of proximity#ttp (011) 447 7093 [email protected]

2nd Interactive Marketing Summit 18 March 08

Sandton Sun Hotel, Johannesburg

Digital marketing is hot, innovation is constant and to optimise response it is very important to appreciate now-now marketing best practices. Our speakers know the South African market, they are at the leading edge and they work with major corporates all the time, and they’re very response focused. Digital Media Perspective How marketers should evaluate and select the appropriate components of the digital media mix. How digital media will evolve in 2008. An appraisal of the research data available and most importantly the metrics that really matter. Andrea Mitchell, head of Digital Activation at thirtyfour, and is a much respected digital marketing strategist. How BMW Compiled and Executed their Digital Marketing Plan The objectives, the reasons for selecting and weighting the mix, the creative approach and the results. Scott Gray, Interactive Marketing Manager, BMW. Online Media Elan Lohmann, head of Social Networking/Media Services at 24.Com, will give you best practices advice on how to optimise your online marketing spend, covering: 

Marketing 2.0



Online media selection



Smart ways to boost online response/ Going viral in the digital space



Social networking/social media/Facebook widgets etc



How to initiate conversations with your market, build relationships and create trust.

Mobile as a Medium Why Mobile is not merely sub-set of “digital” media and could be the ultimate interactive medium. Mobile as a medium has arrived and is no longer just a great idea. Rick Joubert, executive head, Vodacom. The Case for Integrated Digital Marketing Roelof Van Wyk and his company, Trigger (winner of numerous awards) are on the global edge of Integrated Digital Marketing. He will state the case for integrating digital media with the traditional response methods, but more importantly to stimulate response, justify the ROI, and add some zing to the traditional media landscape. A morning workshop R1 950 per delegate Three or more R1 750 per delegate (plus VAT) Enquiries: Daisy Mulenga, [email protected] or 011 234 7008

by nicci columbine EXPERT OPINION

Call centre benefits As companies increasingly consider the benefits of call centres to support their customer service and customer relationship management (CRM), marketers need to better understand the role of the contact centre and how it can play a more integral part in responding to customer feedback and influencing a positive customer experience. As a starting point, marketers need to be familiar with how call centres fit into the customer service supply chain. Call centres provide a number of functions and, depending on whether they are captive (internal division of the organisation) or outsource (contracted provider) and whether they are primarily in-bound (receiving customer calls) or provide both inbound and outbound (calls made to customers), the first interaction a customer has with a call centre creates a lasting impression of the company’s service approach and influences the perception of its brand. Therefore it is at this level that the customer experience needs to be managed. To achieve this, marketing should develop a close relationship with call centre managers to better understand the dynamics that influence performance and service levels at the front line. Quality and quality assurance are important factors in maintaining service levels and driving performance of agents. Call centre managers rely heavily on their quality assurers to monitor the quality of interaction agents have with customers. This is largely undertaken through listening to call recordings and providing feedback through team leaders and supervisors. Regular reporting, analysis and control are key to ensuring that the required standards are consistently achieved. Marketers should have access to this information to ascertain both the positive and negative factors that affect customer satisfaction. With this information at hand, marketers will be better equipped to assist call centre managers to address issues relating to brand awareness and delivery of brand values, as well as respond more accurately and timeously to customer concerns through direct responses. Marketers, and particularly brand managers, also need to play a more active role in the training and soft skills development of agents. This is currently the most critical development area within call centres in SA. A historical lack of exposure, core competency development and

38 MarketingMix I Vol 25 No. 11/12 I 2007

socio-economic integration has generally resulted in disadvantages among the emerging labour force. There is a wide gap in work-readiness skills, which is currently being addressed through national training initiatives, but more specifically a shortage of soft skills among agents. There has to be a strong correlation between customer engagement and brand resonance. This is something that is not sufficiently evident in the customer service delivered by agents. It is important that marketers, together with communication specialists, are included in agent training programmes from the outset. As part of their induction training process, agents need to be educated on the significance of quality, credibility and reputation management to fully appreciate their role and, to some extent, responsibilities in delivering on the brand’s promise to customers. Marketers can provide practical tool kits to agents to help them understand brand values and drivers, and also guide experiential learning in educating agents on the factors that influence brand perception. However, one of the most evident gaps in call centre service delivery, and certainly something that, in my experience, affects brand perception, is the lack of information about the customer and the relevance a service or product has to the person the agent is engaging with over the phone. While appropriate timing of calls to customers is an important aspect to manage, it is not the call that irritates the most, but that agents are generally not provided with sufficient information about the customer in relation to

the purpose of their call. Call centre agents are employed and trained to handle the vagaries of personalities and emotions expressed by customers, yet all too often they are confronted by a frustrated customer simply because they have inconclusive or inaccurate information, or worse, have not been briefed that the customer already has the product they are promoting! Particularly in terms of outbound campaigns, customers want to feel that they are being targeted as individuals not as a number on a list! This is something that marketers certainly can remedy. South African agents are positively regarded internationally for their unscripted friendly conversation and engagement ability and high customer satisfaction desire. Adequate briefing and access to relevant customer data and product or service relevance will add much value to the agent building a rapport with a customer over the phone. Marketers could further build on this if they coordinated more closely with sales and customer service to advise call centres of customer preferences, feedback, and even personal details, such as birthdays, that will make that extra difference to customers and create a positive impression of the brand. It is an imperative within the training process that marketers ensure that agents, team leaders and supervisors working on a campaign or account are continuously and consistently provided with information about the company they are providing the service for. Agents need to become brand ambassadors for their clients, constantly striving to deliver on the brand’s promise and fulfil or exceed customer expectations. To achieve this, marketers and brand managers need to integrate their internal branding campaigns with call centres to inspire, motivate and incentivise agents. It is for this reason that recognition and reward play such an important part in driving agent performance. In today’s competitive business environment, even in emerging markets such as SA, a company can no longer lay claim to a market segment and take customer and brand loyalty as a given. 

Nicci Columbine managing director, Columbine Communications (011) 880 8137 [email protected]

EXPERT OPINION by yoav tchelet

Measuring ROI online It is important to remember that the Internet is an advertising medium and should be treated as such – not simply as a technology vehicle with advertising elements to it. As such, a marketing strategy applicable to the Internet needs to be devised in a strategic and professional way. The effectiveness of Internet advertising can be measured if you can answer four questions:    

What’s the goal of your website? What’s the goal worth? How many times did you achieve that goal? What did it cost to achieve it?

By using the four questions above as a guide for measuring ROI in an online environment, you will not go wrong. The four questions in more detail:

What’s the goal of your website? This fundamental question needs to be correctly answered before any online marketing plan is even thought of. Is the goal to generate sales or leads? Is it to get users to view specific content? Or is it simply to raise awareness? Once you have answered the first question, you can start putting together an online marketing plan, which should include all the elements of how you are going to make the answer to question number one become a reality.

What’s the goal worth? This is where it starts to get interesting. If you didn’t answer the first question correctly then you surely aren’t going to answer this question accurately. Every business – be it online, offline or both – has a value assigned to the goal specific to that business. For example, an online gaming website that offers a wide range of games that can be downloaded or played online. Each game has a cost associated with it and a selling price. Obviously, the difference between the selling and cost price provides the goal value (for the purposes of this example other costs such as marketing, distribution, etc that impact on the goal’s value, are not included). So if the goal’s value is R100, it has to be included in the online marketing campaign. If an online marketing campaign that only uses pay-per-click (PPC) is being run, then there

would be a cost associated with every click on the advert. By combining conversion tracking into the campaign, using a goal value of R100, I would be able to accurately see what the ROI is. To put this more clearly: a campaign is run over one month using a budget of R30 000. A total of 7 500 clicks – which equates to R4 per click – were received. A total of 1 135 games were sold, which is a conversion rate of roughly 15 per cent. At a goal value of R100 per game = R113 500/R30 000 = R3.78. In other words, for every R3.78 spent, there was a return of R100.

How many times did you achieve that goal? As can be seen from the example above, over time an accurate picture of how online marketing programmes are performing can be portrayed. This allows changes to be made, where necessary, without estimating and relying on website statistics and data. That’s not to say that statistics and data supplied by organisations such as Nielsen shouldn’t aid the development of an online marketing strategy, but once you start working in a scientific and controlled way – the data generated will be infinitely more powerful and useful.

“

It is important to remember that the Internet is an advertising medium and should be treated as such – not simply as a technology vehicle with advertising elements to it.

”

What did it cost to achieve it? By following the steps outlined above you will now have an exact figure for all your online marketing programmes. This will allow you to fine-tune any current and future campaigns and eliminate the guesswork. In SA, online is still considered a sideline advertising medium. The funny thing is that it is only with online advertising that returns can be measured in real-time and down to the last cent. Which other advertising medium even comes close to that? Conversion tracking and ROI return methods can be applied to all online marketing campaigns, be it banners, rich media, PPC and more. Use that benefit and power to your advantage. 

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

Vol 25 No. 11/12 I 2007 I MarketingMix 39

by susan moerdyk CRM

This thing called

CRM Wearing my customer hat, I had to think long and hard about how my life has been touched by CRM initiatives. Apart from an occasional SMS on my birthday from a few companies with whom I part money at the end

40 MarketingMix I Vol 25 No. 11/12 I 2007

of each month as well as the occasional sale notification from a retail store that is actually intended for Mr Shongwe (still have to meet him), my life is relatively free from meaningful CRM communication.

So maybe I’m not spending enough money at the right places, but it did make me think about how customer information can best and most efficiently be used to build better relationships with those important customers.

CRM

The whole customer relationship management or CRM thing created quite a buzz in the ‘90s, with one school of thought leading us to believe that it would ultimately put us in a position to manage our customers on a one-on-one basis. That didn’t quite come to fruition, as we all know that keeping relationships alive and healthy requires going beyond simplistic approaches and being technologically focused only. But, despite all this, CRM is indeed still alive and kicking. Any company disillusioned enough to neglect CRM initiatives is depriving itself of an essential engine of knowledge and profitability. So how do business leaders feel about CRM? Markinor and Brand Leadership launched the State of Marketing survey in 2006 where 400 heads of marketing were interviewed telephonically. The driving force behind the survey was to establish the state of marketing in business in South Africa – thus exploring challenges with which marketers are faced, business and marketing priorities, marketing involvement in different areas of the business, branding, measurement of various matrices and stakeholders, and more. This survey was repeated this year to establish whether any changes had occurred. Acquiring,

retaining and managing customers followed profitability as the second most important overall business priority, with almost one fifth (17 per cent) of respondents nominating this as their overall business priority. In this year’s survey, we decided to investigate how our marketers feel about CRM. Close to one third (30 per cent) of marketers stated that CRM is the most effective manner or tool to reach customers or potential customers.

“

Our challenge is not to create messages from the data we have available, but to identify customers’ needs and expectations first and then to collect the data required to speak their language effectively.

Once the appropriate technologies are in place, it really is a very cost-effective way of customising messages to reach valuable customers. Advertising lags slightly behind, with just over two out of 10 respondents believing this to be the most effective tool. When using CRM information effectively, direct marketing and promotions are likely to have a much greater return than traditional advertising for a fraction of the

”

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CRM

cost. It is also more measurable than above-theline advertising. Getting your satisfied customers to do your marketing for you is no doubt a great way of reaching a broader audience. Hence ‘word of mouth’ ranks third in this toolbox. When looking at who supposedly takes ownership of CRM in each of the targeted organisations, it would appear that almost half (42 per cent) of respondents feel that it is the responsibility of the marketing team to keep conversations alive with customers. It is quite comforting to see that this responsibility is not seen to reside with the ‘techies’. Almost two out of 10 respondents believe it is the responsibility of each and every employee to manage customer relations. The importance of CRM is reflected in the fact that the responsibility lies with the CEOs, directors or board members of seven per cent of the targeted companies. It is encouraging that three-quarters of those responsible for marketing and brand strategies also look after CRM initiatives, since we know how important it is to have consistent and integrated customer initiatives and messages. On goes the mantra that retention is cheaper than acquisition. This is clearly reflected by the responses received when asked what the key objective of CRM is. Relationship building and

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customer acquisition rank second and third respectively. However, it appears that CRM is fulfilling the most basic of marketing functions as opposed to really adding value to the customer experience. In the increasing drive to be completely customer centric, CRM is just the most fabulous opportunity to enhance customer experience by sending out individualised (or close to) messages to those stakeholders we value most. And let’s face it; as companies we aim to do many things but ultimately we are all in business to make profit. Why not use CRM to its full potential? Hopefully, the 31 per cent of respondents who stated don’t know/not applicable have mastered the art and don’t have any frustrations with their CRM programmes (but it is doubtful). Companies frequently perceive the customisation and development of meaningful CRM strategies from all the customer data available to be complex, costly and disappointing. We asked respondents what their key frustrations were when implementing their CRM programmes. Although there wasn’t a single issue that overshadowed the rest, it would appear that time, as always, is the key obstacle in our fastpaced lives. This is followed by qualified and motivated staff – and we all know that getting

all employees on board when embarking on new journeys is critical, yet challenging. When all is said and done, it is the employee delivering a delightful customer experience that makes customers hungry for more. On the whole, consumers are increasingly spoilt for choice, exposed to an abundance of marketing messages from various channels and as a result are becoming more and more demanding. This does enrich the relationship we have with our customers, but it also makes it more complex. Too often we search our database for usable information based on statistical tools, neglecting to improve our ongoing relationship with our customers. I believe our challenge is not to create messages from the data we have available, but to identify customers’ needs and expectations first and then to collect the data required to speak their language effectively. The integration of this information will surely lead to a real return on investment, which will hopefully be tangible and measurable. 

Susan Moerdyk client relationship manager, Markinor (011) 686 8400 [email protected]

AFRIKAANS MEDIA by fulvia becatti

Afrikaners: the other white market As Klippies celebrates the airing of its latest TV advert, we chuckle yet again at the quirks and delights of the stereotypical Afrikaner. The Afrikaans market is vibrant, enjoys a positive mindset, and the unique cultural nuances that set it apart. But as English increasingly becomes the lingua franca, the question of how this market will evolve becomes more complex. In terms of numbers, the Afrikaans market has remained stable. As Lucille van Niekerk, editor of Beeld, points out, according to AMPS figures, the Afrikaans population figures haven’t changed since 2001: it constitutes 15 per cent of the total population. “UNISA BMR predicts that the Afrikaans market in SA will remain stable for the next five years,” says Van Niekerk. Certainly, the growing optimism of this market and the culture-embracing attitude of the youth, have something to do with that. The only threat to the language is that 43 per cent of Afrikaans children are receiving their education in English, says Gavin Rheeder, marketing manager, Beeld. “I’ll be very surprised if things don’t change, but it’s too early to tell – there’s no trend that really points to what will happen,” he adds. According to Radio Sonder Grense (RSG) marketing manager, Louise Jooste, the Afrikaans market represents a substantial part of the economy, with approximately 25 per cent of the purchasing power; most are LSM 7-10. According to AMPS figures for 2006 and 2007, 58 per cent of white adults in SA are Afrikaans or bilingual. Ninety-five per cent of coloured people read and understand Afrikaans, compared with 86 per cent of whites. Afrikaans is the third most spoken language in SA (after Zulu and Xhosa). Thirty nine per cent of LSM 810 is Afrikaans speaking. Speaking to this market in its language, not surprisingly, achievers get the best results. Jacaranda FM, for example, found that it received the highest number of responses from listeners during its weekend of Afrikaansthemed programming. It received around 4 000 e-mails during that week compared with an average of between 400 and 900 e-mails during

According to FutureFact 2007: 

 



64 per cent of schools use Afrikaans as their main medium of instruction (especially in the Limpopo and Mpumalanga provinces) 71 per cent of Afrikaans households communicate to their children in Afrikaans Over 80 per cent of Afrikaans-speaking people still prefer receiving information in their own language (be that newspapers, magazines, radio or TV) Only 39 per cent of Afrikaners asked, said that English should be the official language, but 53 per cent said they find themselves speaking more and more English.

other themes. Also not surprising, is that this market is comfortable using new media as it is active online and responds well to email and SMS campaigns. Simply translating ad copy from English into Afrikaans might work for some, but it’s risky. “On rare occasions it works; in many instances it doesn’t as a lot of the true essence of the message is just lost in translation. Badly translated ads also stick out like a sore thumb and convey nothing but disrespect for the Afrikaans speaking consumer,” says Michelle Van Breda, editor, Sarie. Generally, audiences and circulations across the Afrikaans media remain stable. Daily newspapers, as a group, are faring well, but as Rheeder explains, the growth is only coming from the black publications, such as the Daily Sun. The Afrikaans dailies are seeing no major changes to their advertising mix or readership figures, but this isn’t necessarily good news. With the economic environment shrinking the consumer’s buying power (as well as that of the advertiser), newspapers will need to get creative to keep both their readers and advertisers. “We have not seen a major change in ad spend at Beeld and I predict that while media owners need to be smarter with their advertising solutions, the industry will not put on the brakes… Budgets may be smaller over the next year, which will see more innovative solutions coming to the fore; print and online might be offered as a package deal,” says Van Niekerk. Beeld’s website, Beeld.com, is drawing 230 000 unique users each month, and is among the top 20 websites in SA; according to Nielsen NetRatings figures (October 2007), the website

has more than 6.7 million page views a month. “We struggled to break the 200 000 barrier, until we started actively punting the website with advertising. But I still feel that we’re only scratching the surface,” says Rheeder. The website is treated as a product on its own, rather than as a sub-medium of the newspaper, and this approach seems to be doing the trick. “In fact, we found that readers have moved from English news sites to ours. This tells us that they are loyal and prefer being spoken to in their own language,” says Rheeder. He finds that advertising on the website is increasing (a dedicated sales team has been appointed). Currently, 75 per cent of Beeld.com readers are younger than 45 years of age – the average is 29 years of age, while that of the newspaper is between

Vol 25 No. 11/12 I 2007 I MarketingMix 43

AFRIKAANS MEDIA

Afrikaans newspapers: Dailies (AMPS 2007 and ABC, Jul-Sep 2007) Newspaper

Ave Household Income

Beeld R14 308 Die Volksblad R12 070 Die Burger R11 331

Ave age

Readers per copy

Ave Issue Readership

AIR 2007

AIR 2006

AIR 2005

Circulation

44 46 42

4.7 4.7 4.9

1.6 0.4 1.5

1.3 0.4 1.6

1.3 0.4 1.8

105 28 87

231 688 562

Afrikaans newspapers: Weeklies and weekend (AMPS 2007 and ABC, Jul-Sep 2007) Newspaper

Ave Household Income Naweek Beeld R13 730 Rapport R11 428 Die Burger (Sat) R10 035 Die Volksblad (Sat) R9 106 Die Son Sondag -

Ave age 42 42 40 40 -

Readers per copy 4.3 5.2 6 8 -

AIR 2007

AIR 2006

AIR 2005

Circulation

1.2 5.3 2.1 0.4 0.6 -

0.9 5 2 0.4 0.4 -

0.8 5.1 2.1 0.4 0.4 -

85 276 301 692 101 040 24 425 66 138 43 390

40 and 44. Rheeder believes that over time, the average age of users will increase, in keeping with general Internet trends. According to Van Niekerk, 88 per cent work full-time and 74 per cent studied after school. “Technology provides our readers with new ways to connect with Beeld and become a part of the news, and alters the way in which news is consumed and is evolving,” she says. What’s more, the website has allowed readers to create a community of shared interests and experiences; the Bride of the Year pages and the matric dance photo pages impact the site traffic substantially. “Beeld readers have a very loyal connection with the brand and view it as their

The Pendoring Awards “The dream of Pendoring 2007 was that the whole value chain that embraces Afrikaans – from the advertiser to the advertising agency and, eventually, the consumer – should once again realise the power of Afrikaans,” says Lucille van Niekerk, Pendoring chair. More than 60 agencies, advertising schools, freelance writers and smaller creative agencies entered a record number of over 400 pieces for this year’s awards. “We believe that in light of the record number of entries received, we have come one step closer to realising the dream this year,” says Van Niekerk. she found that the radio entries were exceptional this year (2Buffels Advertising with Koloni/Nine November took home the Prestige Award for the campaign they developed for Son newspaper). Also noteworthy, according to Van Niekerk, were the Genuine South African and Tuisgebak/Home Grown categories. “Many entries could boast sharp language usage, while the concept came second. Others again, had brilliant concepts, but were unable to stand on genuine Afrikaans legs,” says Van Niekerk. Student entries are still a mixed bag, she adds. “Students would be more successful if they were guided to complete their thinking process in their work.” The People’s Choice Award went to Vodacom for the Boesman ad. “With this, Vodacom once again showed that it not only understands the Afrikaans market, but manages to speak to the heart and mind of the South African public as a whole – in any language,” says Van Niekerk.

44 MarketingMix I Vol 25 No. 11/12 I 2007

staple news and information source. They embrace technology and are early adopters. And they want it all – print, online, videos and mobile – they view these as complements, not supplements,” says Van Niekerk. The Beeld.mobi is a news WAP site, accessed from a cellphone. “Mobizines are subscribed to, and the user receives content when the content owner sends it out. With Beeld.mobi, you request or download news when it suits you (push vs pull),” says Rheeder. Weekend and weekly papers are fairly stable, showing only slight declines over 2006 circulation figures. On the magazine front, niche titles are also stable, with only a few hiccups around the Media24 circulation scandal. Van Breda says that Sarie readers were informed of the discrepancies in circulation figures in an honest and upfront manner. “On a more positive note, our November issue turned out to be our thickest ever, and to date our dealings with advertisers and clients have been positive”. Sarie recently launched Sarie Kos, the standalone cooking companion, in response to reader needs and preferences. “We always knew food was one of Sarie’s strongest content pillars. Afrikaans speakers love food and entertaining, and Sarie readers specifically find Barbara Joubert’s approach to food to be honest, easy and accessible,” says Van Breda. She adds that Sarie Kos seems to have hit the sweet spot; Sarie is intending on publishing three or four issues in 2008. Insig magazine closed down, and re-launched as Boeke Insig in September 2007. According to contacts at New Media Publishing, the Media24 head office made the decision to fold Insig

AFRIKAANS MEDIA

Magazines (AMPS 2007 and ABC, Jul-Sep 2007) Magazine Wiel Landbouweekblad Loslyf Stywe Lyne Rooi Rose Sarie Insig Huisgenoot Vrouekeur Skottel De Kat Baba & Kleuter Tuin Paleis Idees Tuis Visi Leef Weg Mense Zoo Weekliks Wegbreek Sondag

Ave HHI R16 658 R12 974 R9 337 R15 033 R11 174 R11 781 R13 687 R10 543 R11 571 R17 556 R15 505 R11 327 R16 847 R13 482 R15 794 R16 403 R14 141 R18 960 -

Ave age

Readers per Average Issue Readership copy 2007 2006 2005

40 43 36 41 41 41 45 40 45 41 43 34 44 43 41 40 43 43 -

5.7 5.9 4.6 6.7 5 6 5.1 5.7 4.2 2.7 2.1 -

0.3 0.8 0.3 0.5 2.3 2.4 0.3 6.6 1.5 2.5 0.3 0.5 0.5 1.4 0.5 0.2 -

0.4 0.9 0.3 0.6 2.3 2.4 0.3 6.8 1.6 1.2 0.3 0.4 0.4 2 0.4 0.2 -

0.4 0.9 0.3 0.6 2.3 2.5 0.2 6.7 1.6 1.8 0.2 0.4 0.3 2.1 -

because of poor circulation figures, high advertising costs, etc. However, the Boeke (book reviews section) of Insig was very popular, so the decision was made to re-launch the title with a focus on books. The dual language titles are enjoying stable circulation figures, and are attracting the right advertising (and the right readerships) as a result. While the circulation of Zoo Weekliks is officially linked to that of sibling Zoo Weekly, UCM CEO Louis Eksteen estimates the Afrikaans title has a circulation of between 10 000 and 11 000 copies a week compared with 20 000 copies for the English title. “From the new AMPS 2007 figures we can see that Zoo’s Afrikaans or bilingual readership is 36 per cent, while English or other European readership is 32 per cent,” says Eksteen. As AMPS and other research stats improve, so

ABC Jul-Sep 2007 Rebranded 42 495 34 919 95 769 Suspended 11 713 343 031 88 464 1 374 746 25 033 36 450 141 000 79 636 Discontinued Suspended 113 278 20 585 New 30 072 New member

15 454 43 177 33 626 108 245 Suspended Discontinued 328 939 83 015 1 634 502 24 305 30 177 116 787 81 187 Discontinued Suspended 106 988 15 829 30 127 25 385 43 390

the publishers are seeing growth in ad sales. However, UCM welcomes any advertising that matches the high LSM demographics of its readers, rather than distinguishing between English and Afrikaans environments. “The advertising market is very sophisticated when it comes to targeting specific groups and this is true for Afrikaans speakers as well,” says Eksteen. The Afrikaans radio stations are not seeing much change, except for Radiokansel/Radio Pulpit, which has seen a decrease in its listenership (both in terms of Past 7 Day and Average Monday to Friday listenership). “If one looks at the November RAMS, all listeners in all language groups showed a decrease, but Afrikaans listeners show a proportional increase since the beginning of 2007,” says Surisa Nel, communications manager, Radiokansel/ Radio Pulpit. “Since Radio Pulpit’s contract with Radio 2000 expired

Radio: (AMPS 2007 and SAARF RAMS, Nov 2007) Station Jacaranda 94.2 FM OFM 94.97 FM Radiokansel/Radio Pulpit RSG

Ave HHI Ave Age R8 598 R9 032 R8 755 R9 658

34 37 47 48

46 MarketingMix I Vol 25 No.11/12 I 2007

Ave Mon- Fri Nov ‘06 2 483 000 578 000 482 000 1 880 000

Nov ‘07 2 877 000 524 000 200 000 1 887 000

Past 7 Day Nov ‘06 1 297 000 377 000 242 000 1 235 000

Nov ‘07 2549 000 524 000 200 000 1887 000

AFRIKAANS MEDIA

Markinor/Sunday Times Top Brands Results 2007 This survey measures brand relationship scores (that is spontaneous awareness of the brand, plus trust and confidence in it as well as customer commitment). In the Business-to-Consumer categories, the media scored as follows:

Magazines:  

Huisgenoot ranked fourth, with a score of 6.7 per cent (up from 5.9 per cent in 2006) Sarie ranked ninth, with a score of two per cent.

Daily newspapers:  

Die Burger is in eighth place, with a score of 4.1 per cent (up from 3.2 per cent in 2006) Beeld sits in 10th, with a score of three per cent.

Weekly newspapers:  

Rapport is in fourth position, with a score of seven per cent (up from five per cent in 2006) Die Burger Saterdag has a score of 0.9 per cent, and is in ninth place.

Radio: RSG sits in sixth position, with a score of four per cent (up from 2.8 per cent in 2006) Radio Jacaranda is now in eighth position, with a score of three per cent (up from tenth position, and a 2 per cent score in 2006).

 

Newspapers: Beeld has dropped from third position (a score of 5.8 per cent) in 2006, to fifth position, and a score of five per cent this year; Rapport’s score has remained stable at four per cent, although it has climbed to sixth position (from seventh in 2006);  Die Burger now finds itself in eighth position, with a score of three per cent.  

Afrikaans igniters: According to the TNS Research Surveys Wildfire Spectrum and Wildfire Index, Afrikaans speakers are igniters. Compared with the total population in metro areas, a greater proportion of Afrikaans speakers are igniters. Comparing white Afrikaans speakers to coloured Afrikaans speakers, the study finds that the former has a higher proportion of igniters. Meanwhile, the latter has a higher proportion of damp squibs and burnt outs. last year December, we have only been able to broadcast on our AM footprint, which reaches the greater Gauteng. We have been expecting this drop in our listener figures for some time,” says Nel. The station is waiting to hear the outcome of its licence application. The station’s website, meanwhile, appears to be doing well, with over one million hits to the site per month, and 13 210 unique users per month. “Radio Pulpit is at the forefront of new technological innovation and has recently launched Spodtronic, software that enables the listener to receive radio via a cellphone. We have had good response from listeners all over the world,” says Nel. Meanwhile, RSG is seeing growth in listenership (especially Past 7 Day). “As the only national Afrikaans radio station, RSG is committed to empowering people through programme offerings that inform, educate and entertain people who speak and understand Afrikaans,” says Jooste. She says that part of the station’s success is its focus on the right personalities. “Amore Bekker, presenter of the drive-time slot, Tjailtyd, is a good example of this,” says Jooste. She adds that there seems to be a progressive aspect around Afrikaans music and the political baggage of the past is no longer an obstacle.

48 MarketingMix I Vol 25 No. 11/12 I 2007

Jacaranda is also seeing growth in listenership, which it attributes to its audience research plans, which have enabled it to grow its audiences in Mpumalanga, Limpopo and the North West. Listener events have also gone a long way to creating positive relations with listeners. According to Lulu Ndevu, marketing manager of Jacaranda, Afrikaans listeners expect their radio stations to get involved in CSI projects. “In fact, Jacaranda’s listeners – no matter what language they speak – are constantly looking for ways to assist the underprivileged and needy in their communities,” says Ndevu. Its Winter Warmer campaign raised over R3 million worth of new blankets this year, for example. Overall, the Afrikaans media landscape looks vibrant and positive, reflecting the population that it serves. Marketers can look forward to more niched or targeted offerings and, in the meantime, should brush up on their Afrikaans. “Afrikaans speakers might use and accept English in the workplace with ease, but Afrikaans will remain the language of their hearts… We have more Afrikaans magazines than ever before simply because this remains they language they are truly inspired by. I cannot see this changing in the future,” says Van Breda. 

MARKETING AT-RETAIL

Best of point ofof sale Dick Blatt, president and CEO of POPAI Worldwide says marketing is in chaos with a new model yet to be finalised. With respect to point of sale, Blatt states the four Ps are no longer relevant, in their place are the four Rs: Relevance, Relationship, Responsiveness and Repetition. Blatt also points out that POS has many names – POS, POP, in-store marketing, BTL, Out of House, etc – and that without consistency, it is very difficult for the industry to move forward.

Therefore, POPAI uses the term ‘Marketing-atRetail’ (MAR). Why MAR?  MAR is integrated into the marketing plan from the beginning  MAR creates an experience for the shopper where the buying decision is being made  MAR reinforces the overall marketing campaign where the shopper is looking for brand information  MAR reinforces a brand message where 70

POPAI SA POPAI SA may be in the developmental stages, but reports of its progress are positive. According to Yatish Mehtah, co-chairman of the POPAI SA board, the permanent board of directors will be formalized once full membership (25 members) has been achieved. “We are also looking for an executive director, whose job profile will include: furthering the membership drive, getting involved in various conferences and RAD initiatives, as well as discussing issues of communication between the various global chapters of POPAI,” he says. Board members so far include: Sean Leas (Smollan Group), Mike Bosman (One Digital Media), Terry Murphy (Systems Publishers), Nnaniki Malesa (Primedia Instore), Lucien d’Avice (Barrows), and Ray Abraham (Massmart). Mehtah and co-chairman Lucien d’Avice will be traveling to Disseldorf for the Euroshop conference (the largest Point of Purchase show in the world), where they will attend the POPAI Global Leadership conference as representatives of POPAI SA. For more information, contact Terry Murphy (011) 234 7008, [email protected].

per cent of the purchase decisions are being made  As traditional media audiences fade MAR provides better value for marketing dollars  The industry throughout the world has embraced the new term Marketing-at-Retail as a result of these changes. Blatt says that MAR helps to define the entire retail store as an advertising medium and when integrated into the total marketing mix, creates a shopper experience from the outside and

MARKETING AT-RETAIL

“

Cannibalisation in the US is the purchase of milk – traditionally bought from a convenience store; milk is now one of the top-selling products in pharmacies.

throughout the store. MAR advertising can also be presented in context with other products or services to create a retail experience. To put MAR into context, there are a number of trends that can be applied.

Consolidation Many brands are starting to consolidate their MAR function and responsibility under one department for the first time. This is a huge trend and change for the medium. Historically, no matter what retail department you dealt with, there was little consistency regarding how the medium was put into effect or handled.

Sustainability Sustainability and environmentally sound practices are a large focus in the industry right now. Wal-Mart has been talking about sustainability and when it speaks most companies pay attention, and with good reason. Being green is an important trend because it changes the business. Where this will go, no one knows yet.

Manufacturing Manufacturing in China to decrease costs is a continuing trend. The reality is the past decade in the corporate world has been one of cost cutting and China offers a way to do this. However, it doesn’t mean that all manufacturing will now move to China.

Demand for medium There is growing demand for the medium as money moves away from TV advertising. In the US, the cost of TV advertisements has tripled and dollars are moving out of the medium. Whatever the new marketing model ends up being, MAR should be included in the mix – it’s where the shopper is touched. If we are going to see money migrating to MAR, we have to have metrics in place. The challenge for MAR to

52 MarketingMix I Vol 25 No. 11/12 I 2007

”

keep increasing the dollars in the medium is to provide metrics.

SA. Digital will continue to have an impact if it is measured.

Fulfilment

Channel cannibalisation

Retail and brands are seeking additional specialised services such as fulfilment. In the US, many in the supply side have gotten involved in the control of distribution, execution, etc.

After Wal-Mart successfully entered the food business, supermarkets undertook changes in how they appealed to shoppers to protect their channel of retail. A good example of cannibalisation in the US is the purchase of milk – traditionally bought from a convenience store; milk is now one of the top-selling products in pharmacies.

Multinational companies Multinational retailers continue to cross international borders to expand, leading to consolidation. There are four or five companies of any consequence in terms of size.

Digital signage Digital signage is receiving a great deal of attention as a new in-store medium. The application of technology for MAR is a continuing trend and an opportunity to sharpen the message at an individual or individual store level. Technology is moving fast and there are so many applications that digital can be applied to. The good news is that now there are no rules in

PRISM Project The Nielsen Company, In-Store Marketing Institute and the PRISM Consortium collaborated on the PRISM Project: Pioneering Research for an In-Store Metric and some preliminary results have been released as a teaser. The trial ends at the end of the year with the full results available in 2008. An international pilot in Europe is also expected next year. Some of the findings so far include:  Heavy traffic doesn’t necessarily translate into sales  Category transactions alone are not a reliable indicator of traffic  Two thirds of those visiting the salty snacks aisles make a purchase  Shoppers put more in their basket when shopping with kids but don’t necessarily put in more kiddie treats, although seasonal items are more likely to be purchased.

Store size Tesco recently entered the US market with its convenience size smaller store and most major retailers are looking at how it’s doing. Tesco offers a different shopper model – where WalMart has been successful in mastering inventory and offering the lowest price to shoppers – Tesco chose to focus on which products shoppers are price-sensitive to, and those they aren’t. For Tesco, it’s highly successful and is allowing it to move across the globe. This is a brave new world for the MAR medium. People are starting to experiment in much larger ways than ever before. Various research studies are underway to fix the issue of measurement and metrics in the medium. There is research being conducted through innovations such as the IC Scan in the US. Shoppers on a main shopping trip were recruited to wear IC Scan specs during their store visits. The specs are equipped with a special micro-colour camera that provides a view of the shopper as they walk through the store. Fifty shoppers per store were recruited and the analyses includes where shoppers go, what categories they visit, what in-store media they pass and what in-store media comes into their vision. “There is so much that needs to be measured and we need to prioritise what needs to be measured,” says Blatt. Other research being carried out includes the hot and cold zones for traffic patterns, where the store or product layout is weak and where the MAR is not being effective. For example, Blatt mentioned that there is often no MAR on the way to the toilet at a convenience store – what a missed opportunity!

MARKETING AT-RETAIL

The South African shopper Nielsen recently undertook research into the South African shopper and came up with some interesting facts.

Do shoppers plan their shopping trip? 41 per cent usually plan but always buy additional items  30 per cent usually plan but sometimes buy additional items  10 per cent usually plan and never buy additional items  20 per cent never plan – these are the consumers that are receptive to new messages and products 

Grassroots consumer Shopper stats  low shopping frequency  2.6 visits per month  34 packs per household  13 packs per occasion Shopping venue  majority spent in independent grocers or non majors  26 per cent spent in major retailer in last quarter Basket composition  3 per cent spent on private label brands Established consumer Shopping stats  high shopping frequency  6.5 visits per month  100 packs per household  15 packs per occasion Shopping venue  majority in major retailers (77 per cent of spend)  15 per cent in branded convenience outlets  90 per cent shopped in a major retailer in the last quarter Basket composition  8 per cent spent on own brands Shopping style 70 per cent of shoppers are rational, efficient and know what they want to buy  9 per cent take time to browse all parts of the store  39 per cent know parts of the store that have the items they want  32 per cent know what they want and ‘go and get’ it  21 per cent go up and down aisles, picking up items when they see them 

Consumer basket profiles LSM 1-3 over one-third of basket is staple starches and food/LSM 9-10: 5.8 per cent  LSM 7-8 dry perishables, excluding staples: 15.2 per cent (highest)  LSM 9-10 perishables, including cheese: 18.2 per cent / LSM 1-3: 11.9 per cent  LSM 9-10 beverages: 19.9 per cent / LSM 1-3 10.5 per cent 

In-store activity Average of 25-30 per cent of volume is sold on promotion. % of volume on promotion year-ended July 2007  Children: 54 per cent  Mayo: 38 per cent  Margarine: 36 per cent  Coffee: 33 per cent  Fabric conditioner: 33 per cent  Tea: 30 per cent

54 MarketingMix I Vol 25 No. 11/12 I 2007

What shoppers look for in their store Pricing and VFM: 12 per cent  Store accessibility: 12 per cent  Large storewide selection: 11 per cent  Efficiency and loyalty: 10 per cent  Quality products: 9 per cent 

Drivers behind decision – shopper modes  Auto-pilot categories: shoppers in grab ’n go mode are particular about their brands and are habitual purchasers: coffee, mayo, cheese, cold-pressed meats  Buzz-activated categories: shoppers are open to buzz and engaging activities. Categories such as beverages and confectionary are driven through excitement pre- and in-store  Variety-activated categories: shoppers seek new tastes and formats. Consumers browse. Packaging is a key communication tool at POP. Biscuits, yoghurt and ready-to-eat cereal  Bargain-activated categories: price comparisons and promos dominate choice rules. Don’t over promote when it is not necessary. Direct promo into the right type of promo. Source: The Nielsen Company 2007

EXPERT OPINION by craig cesman

Interruption versus enjoyment Has traditional advertising lost the plot? Some marketers are forgetting that the way to win consumers’ minds is to make them happy rather than irritating them so much they’ll never forget you. There’s got to be something wrong with an advertising model that is premised on interruption. You’re watching your favourite movie and are deeply embroiled in the story, the drama and a pivotal point is about to unfold when… WHAM! There’s an ad for bog rolls or feminine hygiene products or the miracle of modern hair shampoos that promise to give you unbelievably airbrushed hair. The interruption model is so dysfunctional that traditional advertisers factor reach and penetration as part of their strategies, which means you have to see the same advertisement at least 100 times before it weaves itself into your psychological subtexts. Don’t think I’m not a marketer, I am, and I appreciate that the real battle in extraordinarily competitive markets is for the hearts and minds of consumers. But just how is that battle going to be won? By irritating consumers? Repetitive advertising is premised on enjoyment, that you love the advert so much that you want to see it again and again and again and again. But let’s be frank here, while I appreciate that SA has a vibrant and highly creative advertising community that wins global awards, in the face off between clients and creativity just how much of that brilliance is converted into audience enjoyment? For the most part, we are talking fairly mediocre advertising that’s repeated ad nauseam. Quite frankly, that’s not how you’re going to get me to love your brand. While I appreciate that traditional advertising has its place and purpose, what pioneering brands are beginning to understand is the power of what I call ‘original purpose’. Why are you in business? If you’re dealing with customers the only answer can be that you’re in business to make your customers happy. The compelling truth of any brand’s success needs to live or die in its ability to serve its customers. Let me give you an example. Starbucks. Anyone who’s ever been overseas has walked into a Starbucks because it is an experiential brand hero. Even if you’ve never been abroad you’ve at least heard about Howard Schultz and the gourmet coffee experience. Now Schultz is not just selling overpriced coffee available in

every conceivable permutation, with wings. There’s something else that the man has understood alongside differentiating and marketing his brand effectively. Schultz knows that he’s not selling coffee, he’s selling ‘indulgence and escape’ in a cup. This is where it becomes interesting, because currently in the US there’s a business battle royal between Dunkin Donuts and Starbucks. And what makes it really interesting is that Starbucks isn’t even fighting back. Simply because people don’t go to Starbucks for the coffee, they’re buying the experience. And what this means to Starbucks is now it’s not only selling coffee but music and movies, and can extend that to whatever its heart desires that fits in its brand and business strategies. Back home, some forward thinking brand leaders are recreating their leisure and retail environments into havens of customer enjoyment. Remember the old days of in-store interruption when your shopping experience was destroyed by irritating announcements, humming fridges and whiny loudhailer-like price specials? Or going to your favourite upmarket Italian restaurant and listening to techno? What smart marketers understand is that the right music and an unparalleled customer experience can influence customer behaviour for the better. By delivering the right music backed by experience and a research-driven methodology marketers can now create an atmosphere where customers want to spend more time in their establishments and will spend more money. Smart brands appreciate and understand the relationship between music, marketing and experience. This turns an ordinary customer encounter into a memorable event that promotes the brand while delivering consumer delight. Leading leisure and retail marketers know that shopping, eating in a restaurant or booking into a hotel is a sensory experience and that research confirms a direct link between an atmosphere and its financial performance. Like the recent study conducted by Leo J. Shapiro and Associates which shows that shoppers respond to atmospheric elements both consciously and unconsciously. This study gives evidence of the extent of the connection between ‘store atmospherics’ and the store’s performance, in other words, when the ‘right’ music is played in stores it has a positive impact on sales.

“

The bottom line is that if the bottom line is important to you then you want to preserve customer loyalty and keep customers happy.

”

The bottom line is that if the bottom line is important to you then you want to preserve customer loyalty and keep customers happy. Simple really – stop irritating them and create the perfect brand experience that becomes their home away from home. 

Craig Cesman chief executive, DMX Music

(011) 780 3000 [email protected]

Vol 25 No. 11/12 I 2007 I MarketingMix 55

by fayeeza kathree-setiloane / omesha moodley LAW MIX

To carry or not to carry New players ICASA has licensed five new entrants to the subscription broadcasting market: Walking on Water, Telkom Media, e-SAT, On Digital Media and MultiChoice Africa. On the eve of ICASA making this announcement Sentech, in association with the SABC, withdrew its application. But this is not the last we will hear from the SABC in the pay-TV arena as all subscription broadcasting services are statutorily obliged to carry the public service programming of the SABC. ICASA recently announced its intention to make regulations under s60(3) of the Electronic Communications Act (ECA) regarding the extent to which subscription broadcasting services must carry, subject to commercially negotiable terms, television programming from the SABC. All subscription broadcasting services are obliged, under the ECA, to carry the public service channels of the SABC. The SABC in turn has a reciprocal obligation to offer its public service channels to all subscription broadcasting services.

Core objectives of must-carry rules A key imperative of must-carry rules is universal accessibility. These rules are designed to ensure that public service channels are available to as many people as possible, thereby assisting the SABC to meet its universal coverage obligations. Carriage of public service channels by subscription broadcasting services also gives the SABC 100 per cent coverage of the country thus extending its audience reach to areas of no or poor coverage.

Pay-TV operators argue that any payment they are required to make to the SABC for content will adversely impact on the consumer in terms of increased subscription fees. Internationally, public broadcasting services are paid by pay-TV operators for carriage. Implicit in this approach is the twofold recognition that the costs of carriage for the subscription broadcasting services is considerable in terms of investment in transmission equipment, uplinking facilities and ongoing costs; and if any obligation in respect of remuneration is to be imposed, that obligation should be at the cost of the public broadcaster whose public service programming is required to be made accessible to the public.

Scope of ICASA’s powers The ECA makes the must-pay obligation of subscription broadcasting services subject to negotiably agreed terms. This, notwithstanding, ICASA has proposed the imposition of a pricing framework or tariffs to level the playing field among affected operators. On a proper reading of the must-carry rule in the ECA, ICASA’s powers only extend to determining the extent of the public service programming that would qualify as must carry by a pay-TV operator. ICASA, correctly so, does not have the power to determine the ’price‘as this would be for the parties to decide. One wonders what would happen if the SABC and the pay-TV operator are unable to reach agreement on ’price‘? What role, if any, can ICASA play in forcing the parties to reach agreement? These questions are among the many that would need to be considered by ICASA when drafting the must-carry regulations. 

Obligation to pay The issue of must carry has caused disquiet among the new pay-TV operators as the SABC has called on ICASA to impose a general rule requiring them to pay for the content they carry. Pay-TV operators, including MultiChoice, which currently carries SABC 1, 2 and 3 on its DStv bouquet, have strongly opposed SABC’s ‘mustpay’ proposal. They contend that in view of the benefits that the SABC will derive from the compulsory carriage of its content, they should not be required to pay for content.

56 MarketingMix I Vol 25 No. 11/12 I 2007

Fayeeza Kathryn-Setiloane Director, Werksmans Media and Communications (Pty) Ltd (011) 535 8294 [email protected]

Omesha Moodley Associate, Werksmans Attorneys (011) 535 8171 [email protected]