MarketingMix

S T R A T E G I C M A R K E T I N G I N S I G H T I Vol 25 Issue No. 7/8 I 2007 I R25.00 incl. vat

 MarketingMix
I 0 2 I Book Review
Marketing Mix reviews International
Marketing, by Steven Burgess and
Cornelius Bothma, and The e of
marketing.
I 0 4 I Ed’s note
I 0 6 I News
All the latest gossip in the wonderful
world of the marketing mix
I 1 4 I Brand Anatomy
Gloria Jean’s Coffee’s launches into
SA: Marketing Mix takes a closer look
at their game plan
I 1 6 I Expert Opinion:
Helen McIntee
Helen wonders if it’s
technomarketing or marketology?
I 1 7 I Expert Opinion:
Richard Duncan
Richard explores the role of the
recruitment consultant
I 1 8 I Marketing to
women
How to woo the fairer sex
I 2 5 I Black Diamond:
On the move!
Are Black Diamonds moving up?
I 2 6 I Central SA
We look at who’s who, and what’s
going on, in Central SA
I 3 2 I Expert Opinion:
Michele Venter-Davies
Michele ponders the calibre of brand
managers
CONTENTS
I 3 3 I Expert Opinion:
Mike Glover
Mike Glover talks about marketing
spend and budgets
32 I 3 4 I Outdoor Media
Marketing Mix finds out what’s
legal, what’s hip and what’s
happening in the outdoor media
world
I 3 8 I Expert Opinion:
Jarred Cinman
06 Jarred talks about the How To’s of
34 digital marketing campaigns
I 4 0 I Expert Opinion:
Nici Stathacopoulos
Nici gets the Line straightened out
I 4 2 I Expert Opinion:
14 42 Dr Passikoff
Dr Passikoff wonders if you can
predict market success
I 4 4 I SAMRA report
back
We bring you some of the highlights
from this year’s SAMRA conference.
48
I 4 8 I Cape Town
18 Intelligence
Know all there is to know about
the Cape?
I 5 4 I 7 Day [B]itch
Switch Through-the-Line’s business
director, Chantal Girard makes it
54 clear why she has a love-hate
relationship with her alarm clock
26 I 5 6 I Law Mix
Fayeeza Kathree-Setiloane explains
why the media oppose the Films and
Publications Amendment Bill
Vol 25 No. 7/8 I 2007 I MarketingMix 1
by michelle sturman BOOK REVIEW
International Marketing
Finally, a locally authored book about
international marketing that features local
case studies has hit our shelves. While
International Marketing is sure to become a
staple text for marketing students (its
primary audience), marketers across all
scales, who are already involved in or who
are intending to engage in international
marketing, will find tons of useful information
in it. Authors Steven Burgess and Cornelius
Bothma start at the very beginning of
international marketing with a description of
exactly what international trade is and why
it’s important, including:
z Increased overall level
of technological and economic develop-
ment
z Improved global com-
petitiveness
z Increased job opportu-
nities and reduced unemployment, etc.
They also cover the basics of international
marketing in detail, complete with explanatory
diagrams, making content much easier to
understand. They provide descriptions of the
domestic marketer, the export marketer, the
multinational marketer and the global
marketer, along with a pep talk ‘are you
ready to go global?’ – and this is just for
starters. At almost 500 pages it’s a hefty but
invaluable read for anyone who is thinking
of expanding into other markets. There’s a
nice touch at the end of every chapter,
consisting of a case study complete with an
assignment – a worthwhile exercise for any
marketer (even if only as a refresher course).
While seasoned marketers can skip
numerous chapters, students will benefit by
taking the time to read every word. Chapter
3, the economics of international trade for
example, deals with the ‘economic rationale
of the activity… professionally as marketing
experts and not as economic analysts.’ The
relevant background knowledge of world
affairs and global economics makes it much
easier to understand where international
marketing fits into the grand scheme of
things. The info on Africa is exceptionally
useful for all marketers, since for many this
is the first stop on the road to global
expansion. It also includes information on
the various market regions in Africa and on
trade organisations such as ECOWAS,
AGOA and SADC, as well as an entire
chapter that is devoted to international
2 MarketingMix I Vol 25 No. 7/8 I 2007
market and the environment, which is useful
for domestic or international marketing.
Other chapters cover: international
distribution and logistics; marketing
research; product policy and development;
international marketing communications;
pricing for international markets; the
Internet and international marketing; export-
ing and small business; export administration
and logistics and evolving context and future
issues in international marketing.
One of the most important chapters for
many marketers is exporting and small
business. This includes information on
coping with competition from large firms;
whether a business is ready to export globally;
the four steps to successful exporting (including
trade in southern Africa. the pitfalls) and the definition of a small
Part Three of the book, which deals with business in the South African context. The
the international marketing environment, is export administration and logistics sector
exceptionally interesting and relevant for includes a useful list of the export documen-
those wishing to expand their businesses over tation used by SA exporters, as well as how
borders or for those who are facing difficulties. to fill in a proforma invoice – fantastic
The five chapters within this third section deal information for anyone just starting out on
International Marketing
with the socio-cultural, legal, economic, an exporting adventure. g
political and physical and technological By Steven Michael Burgess and
environments. Whilst the information is not Cornelius H Bothma
necessarily new or groundbreaking, it serves Oxford University Press
as a reminder to delve deeply into the target R350
The e of marketing
At last, a book about online marketing that encompasses everything from e-mail and blogs
to vlogs and search engine marketing – without boring you to death from the very first
sentence. It even looks fun to read with pale green pages and orange and pink info boxes
(sounds gross but it really works). Icons throughout the book highlight important notes and
include: here’s a tip, what’s this? and some important reading, making vital info easy to
spot. The chapters cover: why have a website? plus search engine marketing; online
advertising; email marketing; citizen media and blogging; affiliate marketing; viral marketing
and emarketing strategy. This book is a
great start for marketing students, as
The e of marketing
well as for marketers who are baffled by
all the terminology (nicely explained in Japie Swanepoel
this book). It provides useful information Juta and Co
on how to ‘get in’ on the whole online R190
trip and make it work for your business.
Giveaway
Three Marketing Mix readers will each receive a
copy of the e of marketing by Japie Swanepoel
(Juta & Co). All you have to do is to send an
e-mail with the subject ‘the e of marketing
giveaway’ to michelles@systems.co.za. The first
three people to send their e-mails will receive a
copy of the book.
by michelle sturman 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:
michelles@systems.co.za
JOURNALIST: Fulvia Becatti
e-mail: fulviab@systems.co.za
SUB-EDITOR: Sarah Webster
e-mail: sarahweb@mweb.co.za
INTERN: Natalie Licata
ADVERTISING MANAGER:
Robyn Andrews
e-mail: robyna@systems.co.za
PRODUCTION:
Spencer van Graan
e-mail:
spencerg@systems.co.za
SUBSCRIPTION ENQUIRIES:
Daisy Mulenga
Email: daisym@systems.co.za
Copyright of all material in this
publication and supplements are
reserved by the proprietors, except
where expressly stated. The opinions
in this publication do not necessarily
represent the views of the publisher.
Database:
List Perfect
4 MarketingMix I Vol 25 No. 7/8 I 2007
P R rules
After spending the last six months being cross with various PR firms, I’ve
decided that it’s time to lay down a few ground rules. This isn’t a go at
the whole PR industry. The purpose is rather to highlight some issues that
have caused Marketing Mix to be delayed and/or jeopardised the integrity
of the editorial. Taking notice of the list below (most of you know this
already) will help to make all of our lives easier in the long run.
Golden rules:
1 Do not phone to ask if I have your press release. If you’ve sent it, I’m sure to have it – unless on the
rare occasion my e-mail has gone haywire.
2 Do not phone to ask if a press release will be used. If I’m interested, I will find a relevant angle and
ask for more information/interviews etc.
3 Marketing Mix rarely runs stories that have been on general release or released to other competitive
media, including websites. However, most press releases are kept in order to build up a knowledge
bank.
4 Do not offer a story as an exclusive and then have it run somewhere else, thinking that we won’t find
out. We will.
5 Do not think that you can offer the same story with a ‘different angle’ or a ‘later release date’ and get
away with it. We will find out. Be honest and let us know if it has been sent out to other media.
6 Don’t send us completely irrelevant information. Ensure that you know the stories and features and
that you understand our audience. Call me if you’re unsure.
7 Understand what 300dpi or high resolution means when referring to pictures.
8 Don’t ever expect that corporate bumph will be left in any article.
9 Just because a client is advertising does not mean that they will automatically get a three-page article
stating how great they are. If they have something relevant and worthwhile to say, this can possibly
be used for a story or feature.
10 Don’t waste time by promising something you can’t deliver. If you can’t do it, just say so.
11 Please understand that I am always hectic and busy and working on a million different things at once.
I know that you are too. Please also understand that I will quite often get back to you with a late
request and then expect you to perform miracles within the next 30 seconds. Don’t be afraid to say so
if you can’t oblige.
12 Marketing Mix is always open to ideas – but please read no. 6 before doing anything. It saves us all a
lot of time.
Now that’s out of the way, I have to say that I do have fabulous relationships with most PR firms. PR
plays a vital role in my working life and my job would be a lot more difficult without it. There are many
that help me out in an instant, provide sought-after interviews, do some of the really boring ‘chasing’
work (which is greatly appreciated) and provide me with innovative stories and interesting people to
interview. I don’t even mind sending a story in for fact-checking every now and then, if requested – as
long as it’s just for fact checking and not to squeeze in corporate info – and if I can help you with a client,
just ask. I don’t mind explaining to clients what they can and can’t expect from Marketing Mix (ie just
because they advertise does not guarantee a story or quotes etc).
On a completely different note, we have moved the Marketing Mix blog to a new site and I would
encourage everyone to add comments to blogs that are published.
www.marketingmixmagsa.wordpress.com. g
Marketing Mix Conference Programme
• Best of POS: Johannesburg 6 September 07
• Effective Marketing in Africa: Johannesburg 11 September 07
• Consumer Protection Bill: Johannesburg October 07
• The Extra Mile: incentives and motivation, sales and marketing: January 08
• Township Marketing: Johannesburg October 07
Sponsorship and delegate enquiries: Robyn: robyna@systems.co.za (011) 234 7008
NEWS

SABC News International

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

Township talk
South African consumers are diverse and the ambitions but they lack the tertiary help that and believe that only the smart and the
NOW project, formed by the c.i.a. (consumer they believe will bring them success. They are beautiful survive. They take pride in their
insight agency), captures the moments of seen as wild-children, are into Hip-Hop and appearance and they fear giving up on their
consumers’ interactions with brands. are determined not to become ‘disillusioned dreams. They are influenced by the ‘model-c
The NOW project’s aim is to bring life and have-nots’ (another archetype). Loxion go-geta,’ ‘new money,’ ‘polished diamonds’
reality to choosing consumer clusters. Twelve Dreamers are also frustrated by everyday and celebrities. Loxion Dreamers are connected
versatile archetypes have been selected to
represent the country as it is at present. Wendy
Cochrane, director, c.i.a. says: “These are seen to
be valuable tools in getting closer to the real
human beings that consume our brands and
Pictures coutesy of c.i.a.

services. They offer a fresh perspective on market

segmentation and move us away from stereo-
typing and grouping based on demographics to
a method that allows for the application of the
individual-archetypal themes that both connect
and polarise us.”
The project focuses on two main areas:
emotional and functional drivers and
influence. One of the archetypes is the Loxion
Dreamer: black males and females aged
18-35, living in townships in urban and
peri-urban areas. Loxion Dreamers have big
township reality and they are very social, so
they can be seen just about anywhere. They
are status conscious and possess great style:
they follow brands and media. Loxion
Dreamers are moving to more subtle ways of
demonstrating success and they crave the
latest technology. They see life as a competition
through TV, radio, print, transport/outdoor
and digital media and by SMS in particular.
“It’s powerful information as it reveals how
we’re influencing one another and it elevates
one’s gut feel on trends,” says Cochrane. An
archetype will be released each month
throughout the course of the year.

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

 NEWS

urbandictionary.com Scott Bedbury on nation branding and brand SA

If you want to keep up with the
times, incorporate the latest trends Marketing Mix caught up with Scott Bedbury (brand
and really connect with the youth architect and the mastermind behind Nike and
of today, you need to be knowing Starbucks Coffee) ahead of his visit to SA. We asked
www.urbandictionary.com. Get it? him more about nation branding and how Brand SA
This online dictionary was also can get ahead.
recently available in paper format Here’s what Bedbury had to say:
from local bookstores. Here are a Brand SA may need a little work yet. You may be doing
just a few examples of some of the a great job of punting South Africa as the ideal vacation
words that you really should destination – with breathtaking sceneries and wildlife to match
know… – but are you also punting it as a great place to live or do
business? Security issues (perpetuated by reports about South
African Al Qaeda terrorists, for example) loom large in the eyes of
westerners. The government has to take active steps to make the right
changes. It has also become increasingly important for the government
to monitor news traffic globally, in order to identify global trends in
the perceptions of the country. Increased globalisation means that
countries, like brands, must compete for attention (in this
case, foreign investment and tourism). In order to put your
best foot forward you need to do two things. The first
involves self-discovery. (What do your citizens value
and what are they proud of? What are people around
the world thinking and saying about SA? Are these
perceptions accurate?) The second ‘must-do’ involves
making the necessary changes so that you can deliver
on the promises you make as a country brand (by
addressing issues such as security, crime and poverty,
HIV/Aids, etc), while also developing a single brand value
Myspy: using MySpace to spy that will differentiate you and carry you forward.
on exes (For the full interview, visit the Marketing Mix blog:
Dick Flick: opposite of chick flick http://marketingmixmagsa.wordpress.com).
Youniverse: used to indicate Scott Bedbury will be speaking at a full day event in Johannesburg
that a particular person only has on 18 September 2007 at The Campus in Bryanston, Johannesburg. For
knowledge of him or herself more information visit www.globalleadersevents.com/bedbury.
Meh: indifference; used when you
simply don’t care
Couching distance: the distance
one can reach without leaving the
sofa
Bluetool: a person who wears a
Bluetooth wireless earpiece every-
where in order to seem trendy and
important
Floordrobe: a form of storage for
clothing that requires no hangers,
drawers, etc; simply drop on the floor
Retox: to start consuming drugs and
alcohol again in an effort to avoid the
effects of withdrawal
Mantastic: feeling fantastic after the
successful completion of a particularly
macho feat
BiPodding: sharing a single set of
headphones attached to one iPod
Connectile dysfunction: the
inability to print, e-mail or get onto
the Internet.
NEWS
The future
PricewaterhouseCoopers (PwC) has released its latest Global Entertainment
and Media Outlook 2007-2011 survey.
Filmed Entertainment
Digital cinemas and 3D screens are expected to boost the box office market in
the US. Asia Pacific is the fastest growing region and low-cost videos in Latin
America are expected to boost home video growth. Online subscription
rentals in EMEA will increase rental activity, although this will be at the
expense of in-store spending.
Television networks
The US will remain the biggest market, while high-definition TV and digital
video recorders will make TV appealing for viewers and advertisers. Latin
America will be the fastest growing market.
Recorded Music
While the US will mainly enjoy increased distribution to mobile phones, piracy
and the migration to digital distribution will lead to declines in physical
distribution in EMEA.
Internet advertising and access spending
Spending in the US will total US$78.4 billion in 2011. An increase in
broadband penetration will drive advertising in EMEA.
Video games
Wireless games will boost growth in the US and handsets with Internet
capabilities will facilitate a growth in wireless gaming in EMEA. PC games in
Latin America will increase.
Business information
Marketing information in EMEA will increase to $6.4 billion. It will be the
fastest growing category in Latin America.
Magazine publishing
New launches will lead to increased circulation spending in EMEA, offsetting
increased competition from the Internet. In the US however, migration to the
Internet will result in slower growth in consumer magazine advertising.
Book publishing
Growing economies in EMEA will keep educational books growing, while
online services in the US and Asia Pacific will drive markets.
Casino and other regulated gaming
US regulation on online gaming will have international repercussions and
online and mobile gaming in EMEA will become big business.
Sports
Attendance will decline in EMEA but in Latin America economic growth and
TV exposure will boost merchandising and sponsorship revenue. Sports rights
fees in the US will be jacked up by new satellite and online sports packages.
For the full report, visit www.pwc.com.
8 MarketingMix I Vol 25 No. 7/8 I 2007
Mobile castle
A phone-based campaign has proved to be very successful in a first for
South African Breweries (SAB). The multi-layered interactive
promotional campaign was run in Zambia’s capital Lusaka to promote
SABMiller’s new 340-ml non-returnable Castle bottles, as well as the
IRB Rugby Castle 7s. Exp Momentum, using Hypertag technology
from Brandscape Proximity Marketing, drove the campaign. Hypertags
pick up Bluetooth and infrared cellphone signals, through which
rich-media content is sent and interacted with.
In the weeks leading up to the Castle 7s, promoters wearing
Hypertags visited some of Lusaka’s top pubs, clubs and bars,
allowing the brewery to evaluate its use before the main event.
Over a quarter of those who interacted with promoters chose to
download content. “Consumers interacted with promoters to
receive branded content and were given an incentive to do so by
the opportunity to win prizes. The idea was to get consumers to
trial the new product. The non-returnable bottles are more
expensive but they have a perceived status,” says Gordon Parkin,
managing director, Brandscape Proximity Marketing.
The interaction was free for consumers and no personal information
was gathered. Some interesting facts about the Zambian market
were gleaned from this exercise (including the number of high-end
cellphones that are used in the market). Approximately one fifth of
users interacted by infrared. “It turns out that Zambians have phones
up there with the international market, which makes this kind of
interactive promotion a valuable tool for us to use in building our
brand,” says Julian Remba, marketing manager, SABMiller Africa
and Asia.
 NEWS

Just add music

Which music is currently enjoying its 15 minutes of fame or would
make a brilliant soundbed for an ad? The list below includes a die
range of local and international music styles and most importantly, it
highlights which songs are hip and happening within different target
markets right now.
The following list is courtesy of EMI Music South Africa.

Act and song Why it’s hot Genre and emotion evoked

Simon Webbe Familiarity. His song No Worries Pop – warm, comforting, heart-
Coming Around Again was used extensively in the felt and light-hearted.
Telkom Closer campaign.
Elisabeth Withers Upcoming star who was the R&B – confident and soulful
Be With You lead in the Colour Purple on
Broadway – getting major play
on Metro FM and Kfm
Air The chill-out kings with a Chill-out – relaxing, slow
Once Upon a Time distinctive style
Fountains of Wayne Catchy with a similar sound to Punk pop – lively, catchy, sing-a-long
Someone to Love Stacey’s Mom – the bands recent hit. and quirky

Fine Young Cannibals A classic that is loved by most Pop – humorous and recognised
She Drives Me Crazy South Africans.
Lion King Powerful anthem with a current African/world – patriotic
relevance due to staging of the
theatre show.
Bob Evans Australian singer/songwriter Folk – intimate, personal, optimistic
Don’t you Think it’s Time making inroads to South Africa. and sincere

Just Jack Very catchy, it’s happy, recognised Pop – cheerful, fun, friendship,
Starz in their Eyes and liked social, full of life
Jamelia Well-known and great for a Pop/Rock – liberating, aggressive,
Beware of the Dog party power to the woman

Jameli Great cover of a classic Pop – positive and full of energy

Ain’t No Mountain High Enough

Vol 25 No. 7/8 I 2007 I MarketingMix 9

 NEWS

Indoor report
Alternative media, washroom advertising,
indoor media – whatever you wish to call it –
is on the rise. “The indoor space is gathering
momentum as there is a move to use space
for maximum impact,” says Andrew Kramer,
group managing director, Primedia
Unlimited. While indoor media that is aimed
at women in shopping malls is a sell-out,
there are still those that are too conservative
for washroom advertising (this is most likely
due to stuffy marketers or media planners
rather than the brands themselves).
According to research by ACNielsen MRA in
Project Wash and Watch, consumers enjoy
washroom advertising and have a positive
perception of the medium and the products
being advertised. It was also found that
washroom had a positive effect on intent to
purchase and is complimentary to main-
stream media. There is also great innovation
taking place in washroom advertising, which
includes talking frames. (Unfortunately, the
9 000 talking frames are sold out until the
end of the year.) According to Kramer, a
perfect partnership with the talking frames
would, for example, be the use of more
product giveaways inside washrooms, eg
coupons, tear-offs etc, to further entrench
campaigns. We’re going to have to wait
some time for digital media as, “costs are
coming down but it’s just not quite there
yet,” admits Kramer. In the meantime we
have full cubicle wraps that promise to be
spectacular and door wraps, which are
appeal of the Olay ad included the beautiful
model that was endorsing the product, the
innovative and distinctive creative (especially
the mirror) and the originality of the whole
medium.
There is still plenty of untapped space in
the nightlife category, which is good news
for alcohol brands.

perfect for the gym. High-end washroom

mirror advertising is being introduced locally
after its success in Dubai. A campaign by
Olay demonstrates the use of mirrors that are
integrated with a portrait of Olay advertising
next to the mirror, as well as talking frames.
The mirror advertising was the most seen
medium and over 90 per cent noticed the
advertising in the washroom. The highest
impact was the unprompted recall. The

Website of the month – www.marketingcharts.com

Filled with lots of lovely pie charts, bar graphs and other useful data,
this website is a one-stop shop for marketing data. Whilst the
information is US-centric, it still provides useful data trends, as well
as stories on the latest developments. Marketingcharts.com uses
data from Nielsen/NetRatings, TNS Media Intelligence and
AdRelevance, amongst others. Data can be viewed by channel
(including outdoor, direct, TV, radio, magazines, etc) or by diverse
topics (ranging from blogs, list marketing and Europe to packaged
goods, research and signs of doom).

1 0 MarketingMix I Vol 25 No. 7/8 I 2007

 NEWS

Rituals Dynamic advertising

BBDO has released some of the findings of a study on habits, involving 5 000 people
across 26 countries. It followed peoples’ daily routines and came up with five ‘rituals’
that reflect emotional states which can influence behaviour and have an impact on
brands. The rituals occur from morning to evening and the first is ‘Preparing for
Battle.’ People take an average of seven steps in the morning to get ready for the day
– showering, brushing teeeth, eating breakfast, dressing etc – most of which is done
on autopilot. If it is interrupted, the morning routine (in particular) can influence the
day’s mood. It was found that 89 per cent use the same brands daily. Ninety per cent
of Americans brush their teeth in the morning and 86 per cent take a bath or shower.
More than 50 per cent of Indians go online before leaving the house and more
Americans check e-mail than talk to their other half. In Saudi Arabia 80 per cent pray
before work. ‘Feasting’ refers to eating and quite a few of us eat on the way to work.
In Canada, 38 per cent aged 18-27 eat during their commute, with three per cent
applying make up (although the number of women in Japan that do this exceed the
global average by far). The car has become a place in which to eat, with 10 per cent
of Americans and Chinese choosing to do so (12 per cent for those living in Saudi
Arabia). ‘Returning to Camp’ covers our hometime rituals. Those from Brazil are busy
bees, having an average of eight activities. A very high percentage of those living in
Poland shower/bath at night. Nineteen per cent of Russians use the same products at
night. ‘Protecting Yourself for the Future’ is about bedtime. Unlike any other women,
Chinese females like to style their hair (15 per cent) and put on makeup (11 per cent)
before bed. Over ninety per cent of Chinese people have a night-time ritual.
South African Rituals will be revealed in the next issue of Marketing Mix.
Ad agencies probably don’t think of Microsoft in terms
of anything other than being a nice account to have or
the company that facilitates their e-mail. However,
thanks to partnerships with software specialists, a vertical
solution has been developed specifically for the advertising
industry. The Microsoft Dynamics NAV business
management, financial and accounting solution can be
tailored to suit any size agency. “The value that it adds
outside of the finance and accounting solution (for
example, the CRM function, which includes sales and
marketing) is massive,” says Tracy Newman, Microsoft
Dynamics business group executive, Microsoft SA.
According to Newman, the solutions marry personal
productivity with business productivity. While the NAV
solution provides 80 per cent of what an agency is
looking for, the final 20 per cent is totally configurable.
These customised solutions can now benefit everyone
working at an agency, not only the financial and production
departments. “They provide account executives with a
360-degree view of the customer,” says Newman.

Touching a brand

All too often marketing efforts ignore people with

disabilities when it comes to building loyalty to a
brand. Now Worcester Winelands, in conjunction
with Pyrotec, has created a world first: the Braille
wine bottle. Endorsed by the Institute for the Blind,
the top half of the label created by Pyrotec consists
of an embossed Braille section that outlines the
cultivars of the
cellars. A Protag
necktag has
also been
created for
in-store impact
and helps to
provide product
information for
everyone.
 NEWS

Mobile tricks
Mobilitrix has launched new software that
connects old and new media through SMS and
mobile Internet by using icons in traditional
mediums. It is already being piloted in six
countries, including the US, the UK and India.
According to Tim Lucas, an international ad
industry specialist, South African publishers have
lost R250 million in ad revenues over the past five
years. “Print media has been lagging behind the
Internet over the last decade with regard to its
share of readers and new advertising spend and
Mobilitrix give them the tools to fight back,” says
Andrew Cardoza, founder and CTO, Mobilitrix.
The software is aimed at the 20-30 year old
market. While it can be used by all forms of media,
it is a perfect partner for print media. Marketers
can use it to create campaigns and it provides
advertisers with the opportunity to advertise interactive multi-media ads. deliver virtual vouchers, web-links, time-sensitive offers and targeted
It works like this: If readers see the mobilitag icon in a print article, campaigns to the market. “The company is entering a very exciting
they can SMS a keyword and a website address will be sent back to commercial phase with all of the software products coming online in
them, giving them access to additional information. the next few months. We are currently undergoing trials with selected
The six software products fit into the four fields (classifieds, editorial, partners to demonstrate the ability of the software tools to link the
advertisers and knowledge) that Mobilitrix is aiming at print media, worlds of print and the web via the mobile device, thereby generating
and are currently undergoing beta testing. an additional revenue channel for the print industry,” says Chris Rolfe,
This new software also provides brand owners with the ability to CEO of Mobilitrix.

Are you innovative? Scores:

The Gordon Institute of Business Science
(GIBS) and InnovationTOWN recently presented
SA’s Innovation Score Card for 2007. The
Innovation Survey focused on JSE-listed
companies, as well as on 100 of the top
unlisted companies. The results indicate the
amount of coverage that the top 100
companies have received in selected media
sets (print and TV). In a nutshell, this survey
reveals whether or not local companies are
improving their bottom line through activities
that include: new product launches, business
practice innovations, changes to business
structure, etc. It also reflects how the media
presents innovation to other stakeholders
(and indeed to the rest of the world).
According to Wadim Schreiner, MD,
Mediatenor SA, the results show that overall
media coverage of innovation is low,
although the non-listed companies had a
higher score at 3.15 per cent when
compared with listed companies, which
scored just over one per cent. What this
means is that local companies are not taking
innovation seriously or telling their innovation
stories in the right manner.
Top 10 companies (ie companies with highest volume of innovation reports in
the media).
Company
Eskom Electricity
Telkom SA (JSE listed)
Sasol (JSE listed)
ABSA Group (JSE listed)
Transnet
Anglo American Corp. (JSE listed)
MTN (JSE listed)
Standard Bank (JSE listed)
SABC (Broadcasting)
South African Airways
A panel discussion generated some
interesting ideas. Firstly, while the media
may need training on the reporting of
innovations and R&D developments, it is not
the job of the media to pat companies on
the back. It is the responsibility of each
company to market its innovations in a way
that interests the media. Although company
CEOs are quick to claim that business inno-
vations are a priority, few actually dedicate
time and money to innovation. Conservative
companies are reluctant to innovate and to
Volume (statements)
8547
6886
6802
6221
6187
6185
5866
5680
5124
5112
engage in the kind of exciting marketing
that would generate media coverage.
Marketers must address the need for inter-
esting and relevant innovation stories, while
also encouraging company innovation.
With regard to the media, it emerged that
the Afrikaans media (print more so than TV)
has a higher proportion of reporting on
innovation (Sake24 scored 2.6 per cent,
which was above the average of 1.07 per
cent). South African TV news appears to have
the lowest scores for reporting on innovation.

1 2 MarketingMix I Vol 25 No. 7/8 I 2007

 NEWS

The stage is set Thumbs up?

How do you take a magazine that has a very low cir- Thumbs down?
culation and in one fell swoop turn it into a recognis- The Khuza Awards are back for a
able brand, increasing sales tenfold and appealing to third year to examine youth brand
perhaps the most fickle target group in the market? communication preferences. The 3
For a start you get Colman Murray onboard, who at 000 youth panelists (aged 8-23) will
one time or another has been publisher or associate assess all the short-listed entries in a
publisher of Time, Wallpaper*, InStyle and many oth- nationwide judging process from
ers. Murray is now the proprietor, publisher and edi- mid-August 2007, and then judge
tor of Stage Magazine, a music magazine that used the top nominations with the best of
to have a print run of 10 000 and average sales of 3 000. In true the marketer and agency entries.
Murray fashion, he signed Media24’s print and distribution arm (NMD24) in March and immediately
increased the print run to 35 000. This means that the magazine will be available in approximately
10 000 outlets nationwide (CNA, Clicks and Exclusive Books included), compared to the original 750.
“We will be profitable in this first year and I’m giving all advertisers a money-back guarantee that is
based on our selling 35 000 copies by year-end,” says Murray.
Editorial content is high on the agenda. In the first three issues, Murray managed to snag exclusive
interviews with some of the best local and international bands, including Gnarls Barkley, U2, The
Killers and Dave Matthews. Local artists sitting on the editorial advisory board include Chris Remember, this is no panel of
Chameleon, Louise Carver, Barney Simon, Rian Malan and Tamara Dey. The magazine has been experts; if your advertising and
redesigned and connects with music lovers. The target market consists of teens to 40-year-olds – branding campaigns have struck a
high disposable income, upscale, urban modernists. It has a profile on MySpace while its own website chord with them, you’re a winner.
is under construction. To build the brand in the relevant market, Murray has also backed up the Simple as that.
relaunch with TV ad campaigns and barter deals with Channel O, Go and MTV. While Murray will A full research report will be
apply for ABC auditing, the present unaudited figures for the last few issues stand at an impressive available from HDI and an awards
average of 17 000. Brand extensions, such as merchandise including T-shirts, are planned for the event will be held in late October
future. “I’m currently looking for a publishing partner and my main aim is to build the brand through 2007. For more information, visit
aggressive marketing and through guiding consumer perception,” says Murray. www.khuza-awards.co.za.

Ogilvy targets shopper behavior

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

Vol 25 No. 7/8 I 2007 I MarketingMix 1 3

 by fulvia becatti BRAND ANATOMY

Gloria Jean’s
Coffees brings
passion to coffee
cafe culture. This provides a huge opportunity marketing involves new product launches (to
to grow the existing market,” says Steve create an awareness of different product
Gersowsky, MD, Gloria Jean’s Coffees, South offerings), PR and new store openings. Local
Africa. The flagship store, based in the store marketing entails the implementation
Fourways area of Johannesburg, has grown of different tactical programmes, like
by between 35 and 40 per cent per month Frequent Sipper Cards, Whole Bean Club,
since it opened in February. “With a range of Business of the Day and various other
new products and the launch of a new programmes that are run in-store. “All
national promotional strategy, we envisage launches and tactical programmes are
that our growth will be approximately 15 to supported in-store with various point of
Gloria Jean’s Coffees started out as a 20 per cent above what we initially budgeted,” purchase elements, such as sampling
family-run coffee shop based near Chicago says Gersowsky. He believes that brands campaigns,” says Gersowsky. Agency Joe
in the US, almost 30 years ago. Today Gloria cannot fool the customer when it comes to Public is handling the brand’s advertising,
Jean’s is the second largest coffee retailer in providing quality. “Customers know the while Publicity Workshop has been tasked
the world, boasting 800 stores worldwide. difference between a great and an average with national and local store marketing.
In Australia, Gloria Jean’s Coffees is the product and in today’s over-saturated market “The real opportunity is that all our stores
market leader, with more than 400 stores it is quite simply not good enough to be are franchised so the franchisees have the
across the country to its credit. good. You have to be great in order to opportunity to tap into the local market and
Gloria Jean’s Coffees has now arrived in capture the market’s imagination.” work in their areas. They are also able to
South Africa. It is investing over R45 million Word of mouth has boosted the brand’s download all available online marketing
in the local development and rollout of the entry into the local market but Gersowsky collateral from the international website and
brand over the next few years. “South Africa believes that the brand’s unique marketing to adapt to the market they are trading in,”
has a huge emerging middle class consisting strategy is what sets it apart. This is a dual says Gersowsky.
of people who are aspirational and well- system that focuses on national marketing The store franchisees collaborate with the
travelled, who are accustomed to European as well as local store marketing. National managing team to ensure that the different
elements, including music, decor and furniture,
Brand history: are just right. Furthermore, all franchisees go
 In 1979 Ed and Gloria Jean Kvetko opened a small coffee shop near Chicago, Illinois, through two months of intensive training at
in the USA. Gloria Jean successfully introduced gourmet coffee to the US market, the brand’s ‘coffee university’ (which is
where ‘gourmet’ came to mean ‘good quality’ rather than ‘high price.’ By 1986 currently setting up branches in
Gloria Jean’s was franchising to third parties. Over the next few years Gloria Jean’s Johannesburg and Cape Town). However,
Coffees won several awards, including the title of American Entrepreneur this is only if they have successfully gone
Magazine’s ‘#1 Gourmet Coffee Franchiser in America’ (for five consecutive years). through the stringent selection process
 In 1995 Nabi Saleh (an Aussie with several years of experience in coffee and tea) (which includes several interviews and
and Peter Irvine (a franchising and branding specialist) partnered to take the Gloria personality profile tests). Store franchisees
Jean’s Coffee brand to Australia, where they acquired the Australian master fran- are also required to submit monthly audited
chise. In 1998 they franchised the first Australian store and during the next six years reports that are subjected to full day analyses
they opened 185 stores across Australia. It was not long before the pair (trading as by operators. Mystery shopper reports and
Jireh International Pty Ltd) gained the international brand rights (which excludes various store visits on behalf of management
trading in the USA and Puerto Rico). also go a long way to ensuring that Gloria
 In 2006 Gloria Jean’s Coffees was named the Australian Superbrand of the Year, the Jean’s Coffees only offers its customers the best.
Best Retailer 2006, the best Franchiser 2006 and the best Franchisee 2006. The food, store design, store ambience
 Aside from gourmet coffees, Gloria Jean’s also sells pastries that are imported from and product offerings need to be exceptional
Europe and baked in-house. Their fully trained baristas are encouraged to develop for this brand to stay afloat in today’s
their business skills. The brand supports three international charities worldwide, saturated market. “However, the real
whilst the stores support local charities. differentiation is implicit in the overall

1 4 MarketingMix I Vol 25 No. 7/8 I 2007

 BRAND ANATOMY

package and isn’t tied to the coffee, food or Gloria Jean’s Coffees: the brand
design. It lies in the overall passion for what Core market demographics: females, 18-39 years, with a segment aged 25 to 30
we do. How we go about looking after our years who are mature coffee drinkers
guests with humility and love is the key Core strategy: premium coffee supported by quality supplements (decadent
principle that we would like to build the pastries and gourmet sandwiches)
business on,” says Gersowsky. Brand values: community involvement (the store is regarded as a place in which to
The overarching store concept is flexible, meet or socialise, as well as a place of refreshment); great service, great ambience
given that it is modular: “It can easily fit and decor; the customer is the centre of Gloria Jean’s Coffees
into either a concession in a department
store, an Internet café or a small space equal chance to do well, based not only on daily basis. Gloria Jean’s even makes use of
under a staircase in a shopping centre. It skills but also on the desire of each individual leftover products by offering them to local
can even operate as a mobile unit that can (as well as the team) to achieve success for charities. “Nothing is held back at the end
cater for events or as a store front in a large the collective good. “We aim to develop our of the day: it is given away to charity at the
shopping centre,” says Gersowsky. The people at the coal face. This will hopefully end of each shift,” says Gersowsky. While
stores are all similar in design but each one provide an opportunity to empower our the focus will always be on their gourmet
has a unique feel – almost anti-brand. “As staff and to create a brand that is owned by coffees, Gloria Jean’s understands that the
our roll-out is countrywide, it is vital that the hearts and minds of our people. For me consumer’s overall experience is important.
we are advised by our franchisees with this is more important than anything else if we Their exclusive food offerings promise to
regard to the nuances that characterise are to differentiate ourselves,” says Gersowsky. add a unique dimension to their customers’
each region and that we adjust to suit that Another significant differentiator is the coffee drinking experience.
market,” he says. The store environment is brand’s product offering (which is wider As the brand rolls out across South Africa
appealing, with a focus on design. Some of than that of niche coffee retailers). “We over the next few months, it will rely heavily
the stores are currently operating out of import the top two per cent of the world’s on finding franchisees that share in the
Wordsworth bookshops in Knysna and the finest 100 per cent Arabica beans, which collective brand vision. “We have created a
V&A Waterfront, and all stores will soon be are roasted by our own roasters in Sydney, detailed process that allows us to ensure
linked to a dedicated music channel Australia. We have 53 different varieties of that we attract the right people to our
designed specifically for the brand. beans that range from single origin beans, brand. The reality will always be that the
Store personnel are enthusiastic and are flavoured beans and blended beans to an future of the brand depends on the perception
encouraged to feel a sense of belonging. extensive range of Fair-trade beans, all of that guests have of it. The customers will
Gersowsky understands that they are which are also available in decaffeinated vote with their feet,” says Gersowsky. He
responsible for creating the right vibe and products. The brand does not only focus believes that their aim is to create a culture
driving consumer loyalty. “Unlike other on hot branded drinks: it also has a wide of passion around offering the supreme cup
traditional coffee shop brands, we do not variety of over-ice cold beverages, fruit of coffee – with new and innovative latte
run a full scale restaurant. The interaction based chillers and smoothie based drinks,” art work – produced by the finest baristas in
between the guest and the brand takes says Gersowsky. South Africa.
place through the barista and the team The food offering includes a wide variety Gloria Jean’s Coffees plan to open 16
leaders behind the service area,” he says. of fresh sandwiches, baguettes, wraps and new sites during this year, including,
Staff development and training is a top salads, which are all prepared daily on site. amongst others: Cavendish Connect;
priority. Gersowsky maintains that the lack Added to this, Gloria Jean’s imports an Tygervalley; Bayside; O.R. Thambo
of skills development represents a challenge exclusive range of confectionary from the International Airport; Vincent Park in East
in the South African market. He acknowl- UK, produced in some of Europe’s leading London; Cedar Square in Johannesburg;
edges that one of his opportunities is to bakeries. These products are kept frozen Bridal and Co; Rivonia, as well as Loch
create a business in which the staff have an and are then freshly baked in stores on a Logan in Bloemfontein.
What does the future hold for gourmet
Awards and accolades: coffee brands? “The future trends in
 2006 International Franchiser of the Year, named by the Franchising and Licensing coffee drinking will evolve toward
Association of Singapore (FLA) and the World Franchise Council drinking Fair-trade and organic coffee
 Named 2006 Emerging Exporter in the Premier’s NSW Exporter of the Year awards, held from roasters who embrace their
by the Australian Institute of Export responsibility to establish a sustainable
 Franchise Export Award of the Year 2006 at the PricewaterhouseCoopers Excellence in and lasting relationship with the coffee
Franchising Awards farmers themselves. We will also see a
 American Express Supreme Reward for Best Retailer strong growth in high quality chocolate
 Bank of Queensland Best Franchise Awards based drinks, as well as a significant
 Franchiser of the Year in the PricewaterhouseCoopers Excellence in Franchising Awards growth in single origin leaf tea drinking,”
2005. says Gersowsky. 

Vol 25 No. 7/8 I 2007 I MarketingMix 1 5

 by helen mcintee EXPERT OPINION
Technomarketing o r
marketology?
Those of us who were practicing marketing at
the turn of the century will remember the
much-heralded arrival of the ‘digital age.’ We
were led to believe that the world of marketing
was going to be turned upside down and on
its head with these techno tools and that
‘marketing would never be the same again!’
We are now seven years into the new
millennium and I would like to pose a question
with regard to whether or not traditional
marketing is – as the experts told us it would
be – ‘a mere vision of its former self.’ If I may
hazard a well-informed guess, the answer is
most definitely NO.
I believe that digitalisation is really no different
to the invention of the radio or television – it is
simply new ‘facilitating equipment.’ In my
mind, at this point in the game these techno
tools are really just another form of communi-
cation delivery.
“
There are millions of customers out there who
still rely on good old traditional media options
”
to be kept informed.
I know many people who would disagree
with me; people who feel that the Internet, CD
ROMs, smart cards and satellite technologies
are the future. However, consider the following:
Statistics South Africa has issued a mid-year
population estimate of approximately 47.9
million people in our country. Although
Nielsen/NetRatings has indicated that Internet
usage has ‘soared’ over the past two years, as
of May 2007 it was still only 3.8 million. This
means that the remaining 44.1 million people
do not have access to the Internet.
Added to this, only 41 per cent of South
1 6 MarketingMix I Vol 25 No. 7/8 I 2007
African adults have access to a cellular phone and
only 22 per cent of South African adults have a
land telephone line at home (AMPS 2005RA).
Now throw into the mix the fact that PC
ownership only kicks in at LSM 10, which
comprises six per cent of the total population
(indications are that only 12 per cent of South
African households own a PC) – and I rest my case.
I usually describe the concepts that we cover
in the basic ‘Fundamentals of Marketing’
introductory course as a ‘Toolbox’ of theoretical
concepts and ideas. Obviously marketers then
select the most appropriate tools for the job
and devise the Marketing Mix around them
(one cannot, as we know, fix a Boeing with a
number 13 spanner and a set of Allen keys!).
As marketers, we are compelled to jump off
the bandwagon and apply these incredible,
spatial ways of communicating with our
customers when – and only when – they are
appropriate (and if the target market comprises
the few that have access to them).
Let us not fool ourselves: there are millions
of customers out there who still rely on good
old traditional media options to keep them-
selves informed. I therefore propose that we
open a new drawer in the communications’
toolbox and suggest that we label it ‘digital
delivery.’ In this way, if we choose either
advertising, sales promotion or publicity as our
communication method, we can select
whether the message will be delivered via
print, broadcast or digital means.
While I am in the process of proposing a
change in basic marketing theory, could we
please add packaging as a viable and under-
utilised form of communication?
(I’ll save that for the next issue!) g
Helen McIntee
director, IMM Graduate School of
Marketing
(011) 628 2038
helen@imm.co.za

Wolves in sheep’s clothing
For some individuals, recruiters come a
close second to second-hand car salesmen,
double glazing or door-to-door salesmen.
Generally speaking I would support this
sentiment, as it appears to express the rule
rather than the exception, although there may
well be some professional recruiters who are
worth their weight in gold.
The recruitment consultant has two roles:
firstly, to sort the wheat from the chaff and
secondly, to work hard to identify potential
talent when it is not possible to find the right
candidates (either due to the specialised nature
of the job or to a general scarcity of skills in
the market). In both cases there is a good
chance that the recruiter will have to earn
his/her fee.
Recruiters play a key role in finding talent, as
well as in screening applicants, which relieves
their clients of an enormous burden. This is no
easy task since they need to be sufficiently
briefed on the culture of the organisation, the
details of the job they are recruiting for and
the peculiarities of the work environment. If
not, they are liable to waste time in short-
listing inappropriate candidates.
Complaints about the cost of recruitment
consultants’ fees and commissions are not
uncommon. However in my experience,
companies that are running lean that take on
the responsibility of managing the full recruitment
process, tend to expend more in terms of
man-hours and lost productivity or profitability
than the cost of the said recruiters’ fees.
Having exercised and observed both recruiting
methods, I favour the use of specialists.
Nevertheless, there is a caveat to my support
of the practice of using recruitment consultants
or headhunters: there are more cowboys and
cowgirls than gems out there – by a long shot.
This applies to the UK as much as to South
Africa and Australia. Having functioned as both
a candidate and a recruiter in all three markets,
I feel well placed to make this observation.
Recruitment requires considerable research
and preparation: identifying top talent, keeping
in touch and when required, trying to dislodge
people from their current positions. In addition
good recruiters need to keep abreast of industry
and client developments. Ultimately a good
recruiter should perform the role of a trusted
EXPERT OPINION by richard duncan
business partner and consultant for the client.
In order to do this he/she needs to have an
intimate understanding of the clients’ category
and business.
Sadly, I can count on only one hand the
number of recruitment companies in each
market that do a truly professional job. In SA,
I have been impressed by recruiters such as The
Connection, Viv Gordon and Anne Pratt &
Associates. Internationally, I rate Korn Ferry at
the top of the heap and I believe that
Hourigan International in Australia is the best
of the best. While this is not to say that there
aren’t others that are worth mentioning, all of
the above-mentioned companies seem to go
the extra mile for their clients and candidates
alike, thoroughly briefing, preparing, researching
and screening their applicants.
“
Sadly, the vast majority in each market seem
to rely on the sheer volume of the recruitment
game. They use more of a shotgun ‘spray and For South Africa, the
pray’ approach, choosing quantity over quality
and not screening candidates properly. Despite shortage of skills is well
this shoddy approach to recruitment, most
known, but the country
continue to survive, receiving payment for their
services and going on to ‘place’ another day. has a number of
However the day of the cowboy is almost gone,
given the growing use and power of online as a
unique obstacles that
recruitment vehicle, as well as the likes of continue to stand in its
Monster.com, Seek and Myjobs.com. With
online even the smaller companies have a more way. If the country is to
affordable alternative to using recruiters. When
compete with the rest
this form of the recruitment business reaches
maturity, only the very best recruiters will survive. of the world, perhaps
The general global shortage of skilled talent
it’s time to think out-
”
(which is particularly grave in SA) means that
recruitment across borders is all the more side of the box.
essential. In order to survive in the future and
not be reliant on the bread and butter of low
to middle level job placements, local recruiters
will need to develop alliances with international
players in key feeder markets. To supplement
its local gene pool, Australia draws its imported
talent from the UK, South Africa, New Zealand
and the US.
The shortage of skills in South Africa is well
known. There are also a number of unique
obstacles that continue to stand in the way. Richard Duncan
If the country is to compete with the rest of Sydney, Australia
the world, perhaps it’s time to think outside +61 41 154 9791
of the box. g lduncan@bigpond.net.au
Vol 25 No. 7/8 I 2007 I MarketingMix 1 7
 by fulvia becatti MARKETING TO WOMEN
The question of what women want and
what women think about has spawned
countless best-sellers, films and Oprah specials
and has prompted marketers to spend
millions on trying to find the answer.
Marketing Mix asks: is it being done right?
Yvonne DiVita (author of Dickless
Marketing: smart marketing to women online
and president of WME Books) believes that all
too often marketers ask questions and engage
women in conversations – and then ignore
the answers. The problem with this is that the
existing stereotypes persist. “Marketing to
women is all the rage, from what I read
and hear. But, few companies are doing it
successfully. Too many companies are stuck in
that old Dick and Jane world of the 20th
century, where women were stay-at-home
Moms and vacuumed in high heels, according
to TV shows,” says DiVita. Today, women of
all ages are working to improve their lives, as
well as those of their friends and families
and of the world as a whole. “Women are
watching to see what companies are doing
for the environment and healthcare. Those are
very big deals. Ignore them at your own
peril,” says DiVita.
What we do know about women is that
they love shopping (shoes, clothes, fashion
accessories, beauty products, cosmetics and
magazines). They also love getting together
with friends over coffee and fat-free muffins
1 8 MarketingMix I Vol 25 No. 7/8 I 2007
Planet Fitness goes Feminique:
According to Grant Jabour, head of Marketing, Planet Fitness, there is a growing trend
worldwide towards women training on their own. Following research into their existing
member base, Planet Fitness found that women both want and need this sort of facility.
“Men are generally ok if they are overweight but women aren’t. They are intimidated by
the thought of training in front of everyone and they are self-conscious about their
bodies,” says Jabour. While this is one of the motivations for establishing the Feminique
studios (an exclusive offering that only admits
women who have a national gym membership), it’s
not the only reason for this innovation. “It also
caters for a large number of religious women (or
women whose husbands won’t allow them to train
in areas that are full of men). In addition, many
women who work are tied to their desks, with lit-
tle time for themselves,” says Jabour. Feminique
meets the needs of all these categories. “The tra-
ditional women’s-only gym concept is dated
about 15 years ago. Our concept is very futuris-
tic,” says Jabour. The Feminique gym environment
is warm and sophisticated. The pink identity is
contemporary and sophisticated rather than over-
done and it sports only the best equipment and finishes. Qualified person-
al trainers are on hand to offer advice and support and group classes are
offered twice daily, appealing to the preference for activities that allow
women to bring a friend. “Women integrate socialising and activity very
well and they enjoy doing things together,” says Jabour. He adds that
women train harder and with more dedication when they have the support of a friend.
They can also leave their children in the Feminique crèche, where they are supervised and
entertained until mum’s workout is over. There are currently only a few Feminique gyms in
operation, although a national rollout is planned, with branches opening in Cape Town,
Durban and Bloemfontein early next year. Since the inception of the Feminique studios
about two months ago, they have had a 30 per cent uptake of membership by existing
Planet Fitness members. The good news is that the Feminique studios are franchisable.
They are therefore affordable businesses for women to own and run.

(or pink cocktails) to gossip and chat for
hours on end. So what about it? Well, per-
haps you have even noticed that more
women are part of the burgeoning middle
class than ever before (and indeed of the
corporate world). “Women have risen in
stature and have become more financially
independent and competitive within the
workplace,” says Georgie Dagnall, insight
associate director, Added Value. Robyn
Farrell, director, First For Woman Insurance
Brokers, maintains that the increased earning
and purchasing power of women, together
with the greater number of households that
are headed up by women, represent huge
potential for companies. Women.24 recently
did a survey of women and found that there
is a culture of ‘superwomen’ emerging: they
are self-employed; empowered; working in
their communities and filling roles as primary
caregivers and household bread-winners.
According to a recent article in The Times (5
July 2007) women constitute a third of SA’s
5703 new dollar millionaires.
MarketingProfs.com (13 June 2006) refers to
reports that the number of women earning
US$100 000 or more has tripled during the
past ten years. The income generated by men
has not fluctuated much in the last three
decades, while the income generated by
women has increased by 63 per cent. As
Grant Jabour, head of marketing, Planet
Fitness, points out, these women are still mak-
ing the decisions in the home with regard to
health and general purchases, as well as diet
and the food that is consumed by their fami-
lies. “If we don’t pay attention to this market,
we are losing touch with the person that is
making the household decisions,” he says.
Farrell agrees: “Women are the world’s most
powerful consumers and because their earn-
ing and purchasing power is greater than ever
before, they are the largest and fastest-grow-
ing market in the world.”
This means that their word of mouth mar-
keting capabilities have become the female
super-power – this is no longer simply a
female curiosity (like multi-tasking or lip-gloss).
“Word of mouth is more prevalent among
women and they are more likely to refer others
– both men and women – to brands that
impress them favourably. In essence, women
buy what women sell. However, the reverse
also holds true,” says Farrell. Jabour concurs,
maintaining that women not only communicate
better than men do; they also communicate
MARKETING TO WOMEN
Women’s rights:
According to the global Voice of the People survey released by Gallup on 8 March 2007
(International Women’s Day), 38 per cent of the world’s citizens believe that women do
not have equal rights. At 68 per cent, this figure is the highest in China, while it is 36
per cent in Africa.
The study also asked respondents whether they agreed with the statement that education
is more important for boys than it is for girls. Seventy per cent – 94 per cent of Americans
and 74 per cent of Africans – disagreed, while in China, Senegal, Congo and Gabon, the
majority of respondents agreed with the statement.
When asked whether both the husband and wife should contribute to household income,
the vast majority (79 per cent) agreed. The Japanese were the least convinced, with only
40 per cent agreeing.
Did you know? (Courtesy of Eighty20’s Fact a Day)
 More than 70 per cent of the members of savings clubs/umgalelos in South Africa (as
well as in Botswana and Zambia) are women (Finscope 2006)
 Seventy seven per cent of South African women are interested in Gospel music
 Approximately five million SA adults, three quarters of which are women, claim not to
be interested in any sport (AMPS 2006 RA)
 More than half of all tennis players in SA are women (AMPS 2006 RA)
 The unemployment rate for black women aged between 15 and 65 years
is 47 percent (their highest level of education is a matric certificate) (LFS 2006)
 The average monthly salary of a domestic worker in Gauteng is R879 and
in the Western Cape it is R919 (GHS 2005)
 Twenty eight per cent of Cape Town women aged between 25 and 50
describe themselves as single (AMPS 2006 RA)
 Thirty three per cent of SA females between the ages of 25 and 29
are HIV positive (South African National HIV Survey, 2005)
 One third of the women in SA have participated in one sport or
another during the past year, with walking/hiking being the most
popular (1.1 million female participants) (2006 AMPS RA)
 Of the estimated 600 000 to 800 000 people who are ‘trafficked’
across international borders each year, approximately 80 per cent are
women and girls and up to 50 per cent are minors (US State
Department)
 Ten per cent of women smoke at least one cigarette per day (AMPS
2006 RA)
 Four per cent of the people who are in South African prisons or correc-
tional institutions are women (AMPS 2006 RA)
 Sixty six per cent of black women – compared with three per cent of
white women – in SA live on less than R20 per day (AMPS 2006)
 Twenty six per cent of black women – compared with 60 per cent of
white women – over the age of 18 are married (AMPS 2006).
Ubersexuals: the gender blender phenomenon:
Georgie Dagnall, insight associate director, Added Value, has found that brands are beginning
to take advantage of gender wars and the gay mainstream. Women are becoming freer and
are succeeding in the workplace and men are becoming increasingly adept at handling the
home. “The aspirations and opportunities of men and women are beginning to level out and
they are forging a larger repertoire of identities, taking on more diverse roles and displaying
various facets of their identities across the different dimensions of their lives,” says Dagnall.
As gender boundaries blur, we see the emergence of exciting new brand platforms (think the
new Nivea Men range; Jean-Paul Gaultier’s male make-up range; Dolly Girl Fragrance in the
UK and First for Women insurance).
Vol 25 No. 7/8 I 2007 I MarketingMix 1 9
 MARKETING TO WOMEN
more widely than men do - they are the per-
fect grapevine. DiVita points out that women
are connecting to the Internet and that they
are increasingly becoming a dynamic force to
be reckoned with. “These networks of
women, both business and personal, will drive
marketing and sales, in ways we don’t even
recognise yet.” She predicts that select groups
of women will dominate this landscape and
become the influencers that other women
look to for advice and insight (think Oprah,
Martha Stewart and Noeleen). “And watch
men step up. The men who are not afraid to
collaborate with the women of their lives, and
to form partnerships that will be strong, excit-
ing and successful,” says DiVita.
It’s also important to consider that women
are more inclined to establish long-term brand
relationships that take loyalty to the next level.
“This means that every marketing Rand that is
invested in female customer acquisition results
in a higher retention rate,” says Farrell. In fact,
experts insist that successful marketing to
women may yield higher returns than market-
ing to men. However, the keyword here is suc-
cessful: companies need to be honest and
open in the way that they market to women.
They need to connect with women and
encourage them to participate in the creation
and design of their products. “The truth is, we
live in a customer-centric world now. If com-
panies are not engaging in conversation with
their women customers, they’re likely to find
those customers opting to shop elsewhere. At
the click of a mouse,” says DiVita.
It should be obvious that women don’t
want all their brands and products to target
them with pink ruffles, glitter and cutesy lady
bugs. According to DiVita, the biggest mistake
that a marketer can make is to assume that
women are all alike. “Or that we all like pink,
frilly stuff. Or that we’re afraid of technology.
Today, in the US at least, women are opening
new businesses at twice the rate of men. And,
they’re eager to adopt new technologies to
make that business a success,” says DiVita.
What women do want are products that help
them to enhance and sustain their busy
lifestyles, believes Mike Middleton, Cadbury
South Africa portfolio manager for Chocolate.
Woolworths has an affluent female bias, and
they have recognised that women influence
the majority of purchase decisions. According
to Charmaine Huet, head of marketing,
Woolworths, the trick is to continually rede-
2 0 MarketingMix I Vol 25 No. 7/8 I 2007
WOW:
The Women On Wheels supplement has grown substantially since
Associated Magazines started it in 2004. “Women On Wheels is
the only motoring publication in the South African market that is
targeted at women,” says Julia Raphaely, MD, Associated
Magazines. The supplement was started with the aim of offering
the SA motoring industry a unique environment in which to adver-
tise to Associated Magazine’s huge base of female readers. While
these women are not traditional car magazine purchasers, they nevertheless buy cars
and have significant spending power when it comes to family car purchases. The sup-
plement also boosts circulation and revenue and adds editorial value to Associated
Magazine’s midwinter issues. “We measure the growth and success of WOW by the
advertising pages we secure for the supplement as well as by reader feedback… adver-
tisers see value in WOW because of the way it’s positioned. It addresses the female
market’s need to make informed decisions about anything to do with cars,” says
Raphaely. Although Nedbank Vehicle and Asset Finance has been WOW’s main sponsor
since the launch, more and more motoring advertisers have added the supplement to
their schedules over the past three years. “Reader feedback has been extremely posi-
tive: many readers have contacted us to say that they’ve taken the WOW supplement
with them on their car-shopping sprees,” says Raphaely. WOW is bagged with the July
issues of Cosmopolitan; O, The Oprah Magazine; House and Leisure and Marie Claire.
Health and beauty:
Universal McCann recently researched the womens’
market in South Africa. The following feedback is for
the health and beauty category and is from research
groups that were held in 2006.
 Black women are very aware of their skins and will
not take any chances with it (although they will
experiment with hair products); they spend more
on face products than on body or hair grooming
products
 Advertising for personal grooming products, which
makes use of scientific jargon, alienates women
 Girls are getting into the face-care category at an
increasingly younger age (usually in the transition
from junior to high school); habits that are formed
at this young age tend to stick with them for life
 Mothers and friends have the highest influence with regard to brand/product recom-
mendations
 Ageing is less of a concern for black women; they are more concerned by oiliness
and acne. Ageing is the primary concern of white women
 Younger female respondents admit that once they have found a product that suits
them, they remain loyal to it and are prepared to pay anything for it
 Women do not connect favourably with magazine sampling (samples need to last
more than one day and more than one application is required to really see results)
 Advertising in general is being met with frustration, especially as the number of
advertising messages is increasing and as few companies/brands truly acknowledge a
woman’s individuality
 The plethora of products and brands available in the store environment is confusing
to women, who would like to see more consultants and more toll free information
call centres being established to deal with their questions in an honest way
 Race is becoming increasingly irrelevant in the young market with regard to
media audience fragmentation; young black females are watching the same TV
programmes that young white females are watching.
 MARKETING TO WOMEN

fine what customer needs are. “We listen to

what out customers want and are continually
attempting to meet their demands. In
choosing ranges for the next season, we
comb the world in order to bring our cus-
tomers products that we feel will satisfy
their demands for quality, style, and taste.”
Identifying trends in the female con-
sumer market is not a simple process:
women are diverse and varied, ranging from
teens to mums and even single business-
women. To identify the trends that are avail-
able for each cross section, it’s important to
consider where women shop, as well as
how they make their purchases.
Behavioural marketing becomes an impor-
tant tool in understanding who the cus-
tomer is and how she likes to be marketed
to. “Be aware that women are talking to
each other more than ever before, via chat
rooms, forums, blogs, and wikis. Do you
encourage interactive conversation by offering
your women customers a chance to visit your
blog?” says DiVita. She points to the growth
Chocaholics Anonymous:
Women have a love/hate relationship with chocolate. Is
chocolate going to suffer with the growing emphasis on
health and diet? According to Mike Middleton, Cadbury
South Africa Portfolio Manager for Chocolate, women
will continue to enjoy confectionary products for vari-
ous reasons that range from on-the-go snacking to a
bit of ‘me’ time. “Women are becoming increasingly
health conscious about what they eat, so we are
starting to see an increase in the number of health
offerings on the market,” he says. He points to snacks
that combine healthy ingredients with chocolate (such as
Snacker bars). “Green and Blacks has just been launched
in South Africa, offering consumers organic chocolate.
Dark chocolate (or Bournville) is considered to be full of
anti-oxidants, so we are seeing a good growth in this
segment of the market,” says Middleton. Cadbury
promotes the notion of responsible consumption:
they promote the Cadbury Games events, which
endorse a healthy and active lifestyle amongst
schoolchildren.

Dove: real beauty

physical appearance, body weight and shape. Less then
Dove has been campaigning for real beauty by
two out of 10 women report having ‘very high’ self esteem.
researching the notions that impact on womens’
Girls between 15 and 17 are the most likely to report low
perceptions of beauty and by challenging society’s
self-esteem. Saudi Arabian and Mexican women have the
ideal image of what beauty is. Visit www.campaignfor-
highest appearance satisfaction and self-esteem
realbeauty.com for more information.
 Generally when women feel good about themselves, it
Dove has also driven research into the different
is projected into feeling confident, loved, healthy,
stereotypes of beauty. Carried out across ten countries in 2005, it
energetic and smart (these characteristics are also likely to
built on the findings of Dove’s earlier global study (which exam-
promote their active involvement in daily life)
ined beauty beliefs). The study was carried out because women
 While the majority of women turn to conventional beauty prac-
are increasingly subscribing to unrealistic standards of beauty
tices to enhance their looks, a significant minority are also
that are narrowly focused on physical attributes, rather than
adopting more extreme methods (cosmetic surgery, for exam-
encompassing broader beauty traits.
ple). A quarter of women would consider having plastic surgery
The study threw out some interesting findings and while they
in the future, while only two per cent of women have already
appear to be common sense, it is alarming that Dove had to do
had surgery
such extensive research to bring these trends to light and to get
 One out of 10 women acknowledge eating disorders (bulimia,
the world thinking:
 The majority of women globally believe that beauty is too narrowly
anorexia, etc). While this number seems low, it is often
underreported and in some cultures this behaviour may have
defined by physical attributes, with the exception of China, where
become commonplace
western beauty ideals are a newer phenomenon
 Nine out of every 10 women globally agree that it is difficult for
 The sooner girls become concerned about their overall appear-
ance, body weight and shape, the lower their satisfaction and
them as individuals to feel beautiful when confronted with
self esteem are as adults
today’s beauty ideals. Italian women had the lowest desire for
 Peers, mothers and the media are the most powerful influencers
physical change, while Japanese women, followed by British
with regard to feelings about beauty and body image (men and
women, had the highest desire for physical change
 Some of the features that women would like to change about
boys play a secondary role in influencing these feelings). When
mothers are reported as the primary influencers, other family
themselves include their hair, their skin colour and the shape and
members are likely to play a more significant role and the media
colour of their eyes. In Brazil, where hair texture, length and
play a less significant role. However, when peers (girlfriends) are
colour are indicative of social class and race, long straight hair is
reported as the primary influencers, the media and famous
what women most desire
 Only two out of every 10 women are very satisfied with their overall
individuals play a more significant role.

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

 MARKETING TO WOMEN

of online shopping and the trend towards rat-

ing products and services, as well as to the
increase in word of mouth marketing.
“Women are savvier than ever before — peri-
od! They seek out information about impor-
tant decisions in every area,” says Julia
Raphaely, managing director, Associated
Magazines. Jabour speculates that women are
exposed to more at a younger age and that
they are therefore also making decisions at a
younger age. They are leaving home and
socialising earlier on. They are educated and
the questions they are answering for them-
selves are a lot deeper. They are earning more
money at a younger age; marrying later and
having children later on in life. Added Value
has found that SA women are increasingly
seeking to set themselves apart from the rest
and asserting their individuality. These women
Toys for Girls:
SA women are very in touch with their sensuality and their sexuality and are very
curious to try new things, reports Catherine Lauria, founder of For Women Only
(the sole South African distributor of a range of pleasure products imported from
Germany, Paris, London, New York and San Francisco). Currently FWO supplies The
Velvet Glove in Parkhurst, Le Boudoir in Fourways and Cake in Cape Town. Lauria
believes that SA women are less conservative, even though almost half of the SA
women surveyed by women24.com’s 2007 Female Nation Survey, stated that they
never masturbate. “We base this on the sheer volume of women who are either
interested in purchasing sexual products or who have already purchased them from
us,” she says. Furthermore, judging by Lauria’s experiences at Glamour Parties and
the FWO service, SA women are becoming more sexually liberated. “A UK-based
publication survey named SA as the number eight consumer of sex toys in the
world! South Africa is therefore in the top ten users of consumer sex toys world-
wide – higher than the whole of Europe,” says Lauria. The FWO consumer is a
working woman, who is sophisticated and looks after herself and her well being.
She spends an average of R700 per purchase. “An average of 120 to 140 women
register each month on our website,” says Lauria.

Single women: misunderstood?

According to a Draft FCB survey carried out amongst US advertising and marketing professionals, marketing
executives assume that single women are less educated, more adventuresome and wealthier than they actually
are (MediaPost, 30 April 2007). And they say single women are less educated?! Hmpf!
 MARKETING TO WOMEN
are also driven by the feeling that there are no
limits to what they can achieve. “For this rea-
son choice is key. Companies need to provide
options in order to stay close to South African
women,” says Caroline Rait, insight project
director, Added Value.
By drawing on trends that have emerged
from local studies into the buying patterns of
women in the financial services industry,
Farrell concludes that women process infor-
mation differently to men, using both qualita-
tive and quantitative criteria to make their
decisions. They ask a lot of questions and tend
to keep on asking until they understand the
information thoroughly. The buying process
matters as much as the product itself (women
are holistic thinkers and identify with a good
product that has a comfortable, pleasant sales
process). Women are also loyal shoppers, for a
host of reasons. They will buy again from the
same source if the experience and the product
are a fit. Women have a great deal to do and
too little time to do it in. Consequently, creat-
ing a sales process that respects their many
commitments and the multiple hats they wear
goes a long way to creating a long and fruit-
ful relationship with them. Huet adds that
women also require easy solutions; they are
exposed to international trends, and they
demand fashionable products. They purchase
according to their lifestyles.
On a slightly different note, consider the
following innovations:
l German hardware store, Hornbach –
according to a Spiegel Online International
report (May 14 2007) – is offering tiling
courses designed specifically for women.
Their competitors have redesigned their stores
with the aim of making the shopping environ-
ment more attractive to female shoppers.
l DaimlerChrysler’s engineers are experiment-
ing with seatbelt designs and handbag
compartments (having identified that
women constitute the majority of the market
for motor vehicle purchases in the US).
Local marketers need to look at South
African women within the context of
the family. “It’s key, I think, to remember
that women are smart, focused, and always
looking for ways to serve – their families,
their communities, and themselves. They do
this to ensure a better future for us all.
Learn who they are, first. Then, what’s
important to them. And market accordingly,”
suggests DiVita. g
2 4 MarketingMix I Vol 25 No. 7/8 I 2007
All About Women Consumers:
All About Women Consumers is a guide to understanding the behaviour, attitudes and
spending habits of today’s women. Published annually, it provides an overview of the
attitudes, behaviour and preferences of women on a wide range of subjects – from
packaging, sports and technology to arts and entertainment etc. It promises to improve
the way you market your brand, in this way attracting more women to your products
and services. The new 2007 edition is available for downloading in PDF format or for
purchase in a print edition from EPM Communications (based in New York). Visit
www.epmcom.com/aawc for more information and to place your order.
Psychologies
Psychologies magazine sold 35 700 copies of its launch issue
and while the audited results will only be confirmed shortly,
editor Mari Lategan is thrilled with the progress of the mag
(which is published every alternate month). She is expecting
similar results from the second issue. “We recognised a gap
in the marketplace and our research proved to be correct…
In South Africa the marketplace is ready for a magazine that
engages with a unique segment of a sophisticated audience,
which is traditionally not covered by female consumer titles,”
says Lategan. The magazine’s editorial focuses on self-
accomplishment, better living and relationships. It acknowledges that a woman’s life
revolves around work, friends and family commitments and it responds to the desire of
women to improve their personal lives. Psychologies is targeted at a highly educated
customer in LSM 10, of an average age of 38 years. This is a savvy consumer, who
understands labels and quality. She is educated and discerning and has a fulfilling career
that she juggles with a demanding home life. She seeks a more balanced life.
Spitz shoes: luxury!
Luxury consumerism started with the Regan administration. Louis Vuitton
helped it along in the 80s, as did American Express’s Platinum card, says
Spitz shoes marketing director, Tania Morgan-Weyer. Since 1994 the South African
masses have had considerably more access than ever to opportunity and disposable
income. “There is more conspicuous consumption in an emerging market. There is old
luxury and new luxury. Old luxury refers to craftsmanship, heritage and so on (noun),”,
says Morgan-Weyer. Today we talk about new luxury which is a verb, and is really
focused on experiences (from shopping experience to experience of wearing or
using the luxury item). Note that new luxury in no way detracts from the
craftsmanship and product intrinsics which is so important; these are taken
as a given or are passport factors. The product extrinsics are what sets
brands apart today. The growing importance of the shopping experience
plays a significant role in extrinsics.
Luxury brands follow natural trends from classes to masses. Once luxury
brands have become more accessible, it is imperative that they evolve and innovation is critical.
Prior to 1994, black women followed trends to fit in. These days there are more con-
sumers in this group who are more confident and who wish to make an individual
statement, says Morgan-Weyer. Spitz’s customers represent a diverse group of
South African consumers and are especially favoured by Black Diamonds and the
emerging sector. “They understand value and will spend a R1000 or more on a
pair of shoes. They have an emotional connection with Spitz and Spitz shoes,” says
Morgan-Weyer. She points to the large growth in rural areas which is led by proper-
ty developers developing shopping hubs in the likes of Thoyandou; Rustenburg;
Polokwane; Witbank for example, as well as the townships. “Township markets are
aspirational. You have to express yourself, and show that you’ve arrived. And
one of the first accessible means to do this is fashion,” she says.

Black Diamond II: On the move
South Africa’s Black Diamond group has
grown by 30 per cent since the first Black
Diamond study was conducted. They represent
2.6 million individuals. Prof John Simpson,
director, UCT Unilever Institute, reports that
this market has grown very quickly in a very
short space of time and that BEE is one of the
major driving forces behind its growth. It has
increased in value and is worth R180 billion in
spending power, comprising 28 per cent of
SA’s total spend (thanks in part to better
incomes and greater spending power).
Researchers estimate that, based on these fig-
ures, Black Diamonds will outspend all of SA
by the year 2009. The Black Diamond group
are the only one of all the population groups
to show an increase in buying power. This
demonstrates that Black Diamonds have fur-
thered themselves in terms of their careers.
Prof Simpson points out that credit has played
a major role, especially with regard to the pur-
chase of cars and homes (these are also the
two areas of greatest financial debt for this
market). Their average monthly income has
risen to R1 650 (from R1 550 in 2005).
However, one has to question whether this
average income substantiates their position as
an emerging middle class, since this average
“
The Black Diamond market has grown very quickly in
a very short space of time and that BEE is one of the
major driving forces behind its growth.
income places them between LSM 3 and 4 (is
this the suburban middle class?).
In the previous Black Diamond study, mov-
ing from the townships to the suburbs was
identified as one of the major aspirations of
this group. This study shows that the Black
Diamond has indeed achieved what it set out
to do: 47 per cent now live in the suburbs (up
from 23 per cent in 2005). Black Diamonds
take pride in their homes, which have become
an important part of an overall status symbol:
they spend money on decor and home goods.
BLACK DIAMOND by fulvia becatti
The complex mindset of the Black Diamond
has also shifted. This is a future focused market.
The Black Diamond segments:
Mzansi Youth:
 many are new entrants to the middle class
 majority live in the townships
 contribute to household expenses even
though most are students
 dream big but must achieve now (straddle
two worlds)
 under pressure to succeed; have an aware-
ness that their parents made sacrifices so
that they could have better opportunities
 have a preference for local content; free-to-
air TV is popular, as are the Daily Sun and
the Sunday Times
 cellphone penetration is high but do not use
MXit.
Start-me Ups:
 look like Mzansi Youth but they have more
cash and are more valuable (have greater
buying power and are acquiring key assets,
ie cars and homes)
 less pressure to send money back home
 have realistic dreams and know how to get
”
there; self improvement is a priority
 quest for financial independence and
freedom from debt
 preference for SABC 1, local news; there is
also a high incidence of newspaper reader-
ship (this is an info hungry market).
Young Family:
 one of the biggest segments within the
market (both in terms of value and numbers)
 greatest number are single mothers who are
under a great deal of pressure (although the
Who is the Black Diamond?
This is the middle class; black South
Africans; wealthy and well-salaried,
in suitable occupations; includes
youth; are acquiring homes and
cars; credit worthy. They do not
give up their culture as they evolve.
There is also a trend towards
entrepreneurial activity.
majority are not sole bread winners – house-
hold income is supplemented by partners or
parents)
 a lot of confidence and drive to succeed,
although debt is an issue (still acquiring key
assets)
 segment characterised by the phrase proudly
providing; see their success more closely
linked to their children
 high incidence of cellphone banking
Established:
 this segment is the middle class
 not, as originally thought, older than 49
years (actually around 35 years)
 employ domestic workers and have M-Net
and DStv in their homes
 very confident
 interestingly, they are most in touch with the
townships
 understand that their success is nothing if
they cannot give back to society/community
 invest in their children, in property and in
business
 enjoy listening to Metro FM, as well as to
stations that broadcast in the vernacular.
Prof Simpson is adamant that the Black
Diamond is not a myth and that the market
will drive future growth in South Africa. The
reality is that the Black Diamond has no
problem managing debt or credit (although
young families face a greater struggle than
most). As far as future growth is concerned,
researchers suggest that there will not be much
change in terms of the segment profiles. 
Vol 25 No. 7/8 I 2007 I MarketingMix 2 5
by michelle sturman CENTRAL SA INTELLIGENCE

What you didn’t know... MEDIA IN THE CENTRAL SA REGION

RADIO
RAMS June 07: Free State: hours spent listening:
The Central SA region is now officially an Bloemfontein and the region. There is a 5h13 mins per day. Highest time spent listening
entrenched and fully formed brand, which is boom here and probably more disposable across all provinces – highest.
used by our largest corporate companies to income than in Johannesburg, since the North West 4h 34
express the area that they cover. Started by spend here goes much further,” says René Northern Cape: 3h 52
OFM a few years ago to convey its large foot- Koen, business development manager, OFM
print across the Free State, North West Mahareng Publishers (a joint venture with • 7 Days: June 07: 578 000
Province and Northern Cape, it covers six Caxton and OFM, publisher of OFMwheels.co.za July 06: 470 000
metropoles, including the Vaal region. and GetIt on license). She offers this as some- • Ave Mon-Fri: June 07 358 000
The good news is that the Central SA one who has recently moved from July 06: 318 000
region is expanding, with plenty of develop- Johannesburg to Bloemfontein. Alna Retief, OFM Demographics
ment taking place, along with a growing director of local glossy magazine, Passi, Age: 16-49: 81%
tourist trade and enough extremely wealthy agrees with Koen, saying that there is less LSM 4-6: 31%
inhabitants to keep even the biggest and LSM 7-10: 57%
most sophisticated brands happy. Male: 51%
White: 46%
Black: 36%
Coloured 18%
Courtesy of Ryno Cloete

Income: R14 000+: 14%

R8 000-R13 999: 33%
R3 000-R7 999: 26%
Regions:
Free State: 48%
stress, a lot of opportunity and the same Northern Cape: 27%
money – the only aspect that could be North West: 20%
Courtesy of Hein von Hörsten

improved is the nightlife. Vaal Triangle: 3%

Having said this, there are now six casinos Other: 2%
in the region, including two that have AMPS 2006
opened within the last two years: Windmill OFM ave age: 37
Casino just outside of Bloemfontein and the Ave HHI: R8 392
However, there is still a perception problem newly opened Frontier Inn & Casino in
regarding the region – one that needs to be Bethlehem. The Frontier Inn opened its doors 10 benefits of OFM
put to rest permanently. While the major in December last year and the total capital  No. 1 radio station in central South Africa.
cities are not vast metropolises, or tourist investment by operator Peermont Global was  The leader in delivering the affluent market
traps like Cape Town, and while they may not R104 million. The Windmill Casino opened in in central South Africa.
have the frenetic pace of Johannesburg or October 2005. According to the Casino  OFM has an intimate understanding of what
the laid-back attitude of Durban, they are Association of South Africa, it has 855 makes Central South Africa tick.
also not the backwater towns that a lot of employees and has had over one million  Largest regional footprint in South Africa.
media planners and marketers believe them visitors so far.  The breadbasket and mining powerhouse of
to be. “There is huge growth taking place in South Africa.
the region in terms of social structure, Development  First point of reference for up to the minute
construction, business, etc,” says Nick The pace of development is not the same news, traffic, weather and sport.
Efstathiou, marketing manager, OFM, “and across the whole of the Central SA region,  Has become synonymous with the
it’s developing along with the rest of the community through its charity work and
country.” These perceptions are extremely delivery of the largest events and festivals in
unlikely to change, unless, of course, you live Central South Africa eg Nampo, Aardklop,
in the Central SA region or bother to take a Cherry Festival.
trip to the area to look around and observe  The station is committed to advertisers’ success
the pace of the growth and economic and is the creative leader in innovative ideas
development for yourself. This represents a that work in this market.
problem as advertising budgets are being  Highest radio penetration in central South
decided outside of the region’s borders. Africa.
“There are many misconceptions about  Lowest cost per thousand ratio.
Source: United Stations

2 6 MarketingMix I Vol 25 No. 7/8 I 2007

CENTRAL SA INTELLIGENCE Free State Community Stations RAMS
Kovsie FM 97.0 18 000
Lentswe Community Radio 7 000
Mosupatsela FM Stereo 101 000
Naledi Community Radio Station 27 000
especially as Bloemfontein is the only city that moment. We have a comprehensive funding Overvaal Stereo 96.1 fm 11 000
will host the 2010 FIFA World Cup matches. offer on the table which depends on the Qwa-Qwa Radio 135 000
However, all is not lost for the other areas. In outcome of the Biofuels legislation, which is Radio Panorama 107.6 FM 21 000
Kimberley, De Beers has pumped more than expected soon.” The maize to ethanol plant is Radio Rosestad 100.6 fm 31 000
R50 million into developing the area around expected to have a positive impact on the Setsoto FM Stereo 16 000
the Big Hole into a premier tourist attraction, region. Ethanol Africa will draw resources Total Community – Free State 379 000
including the Mining Museum. Protea Hotels from the local community, from the begin-
will also build a new hotel to accommodate ning of the construction stage all the way Any magazine – penetration by
the expected tourists, once the De Beers through to finding workers and drivers. They Province AMPS 2006
development is promoted as a major tourist will also employ local farmers once the plant North West: 28.1
attraction. In addition, national government is up and running. Other plus points include Northern Cape: 43.9
is expected to invest over R300bn in economic the introduction of out-of-town workers Free State: 28.8
growth in Kimberley and its surrounds (Sol (who will require accommodation), traveling Any newspaper – penetration by province
Plaatje municipality), which will include with the vehicles that will be required to AMPS 2006
jewellery, biofuels and livestock projects. New transport the maize and fuel to and from the North West: 38.3
shopping malls (and extensions to existing plant. The local municipality will benefit from Northern Cape: 37.3
malls) across the region are encouraging the water and electricity that are required to Free State: 32.6
consumer spend, especially in areas that run the plant, as well as from PAYE. The
previously lacked large shopping outlets, maize needed for the plant’s operation will Community/Free Newspapers
including the Diamond Pavilion in Kimberley, impact positively on local farmers and will Bloem Nuus 41 970 (Jan-March 2007 ABC)
Mooi rivier mall in Potchestroom, Flamond Express 49 727 (Jan-March 2007 ABC)
Walk in Klerksdorp and the Vaal Mall. Goudveld Forum 22 869 (Jan-March 2007 ABC)
Improvements to The Loch Logan shopping Issue, Eastern Free State 17 900 (Jan-March 2007 ABC)
mall development at the waterfront in Kroonnuus 8 229 (Jan-March 2007 ABC)
Courtesy of Grain SA

Bloemfontein are nearing completion, with
added shop floor, extended parking facilities
and the beautification of the lake. Anchor tenants
include Edgars, Woolworths, Stuttafords, Mr reclaim fallow land. The plant is to be located
Price, Pick ’n Pay and Truworths. in a rural area, so the benefits to that com-
munity should be significant.
The local Free State government is also look-
ing at incentive schemes that include a small
to medium manufacturing development pro-
gramme, an export marketing and investment
assistance scheme – and even exhibition assis-
Courtesy of Hein von Hörsten
Lentswe 12 369 (Jan-March 2007 ABC)
Maluti 7 535 (Jan-March 2007 ABC)
Midweek Rekord 16 604 (Jan-March 2007 ABC)
Noordkaap 21 396 (Jan-March 2007 ABC)
Noordwes Gazette 29 786 (Jan-March 2007 ABC)
Ons Stad 36 445 (Jan-March 2007 ABC)
QwaQwa News 5 019 (Jan-March 2007 ABC)
Sasolberg Ster 11 561 (Jan-March 2007 ABC)
Vista 35 286 (Jan-March 2007 ABC)
Noord-Vrystaat 7 452 (Jan-March 2007 ABC)

tance – to boost the economy of the province.
Perceptions of the Central SA region run
from ‘flat and full of farmers’ to ‘boring and
nothing ever happens.’ Residents would beg
There is a lot more happening around the to differ. This ‘bread basket’ produces over 70
region that is encouraging development. This per cent of the country’s grain and the region
includes: a new golf estate in Ficksburg; The produces most of our cherries, onions and
Stafford’s Hill Gold and Polo Estate (which asparagus, amongst many other food products.
will open shortly); a new hotel at the It also breeds sheep and produces wool and
Bloemfontein Zoo; a golf and sports estate in it has a burgeoning floriculture, as well as a
Virginia; a tourism centre in Welkom and a wine industry (including Jacobsdal and
hydro in Bethlehem. Parys is, by all accounts, Ghoya). The region produces the majority of
becoming a hip and happening place to be, the country’s diamonds, gold, uranium and
given the number of South African celebrities bentonite and is host to Sasolburg, which
who are settling there. provides petrochemicals. There are heritage
The establishment of an ethanol plant in routes, a national park and a country –
Bothaville is currently on hold due to legislation, Lesotho – within its borders. Festivals include
according to Annelie Coleman, communication the Ficksburg Cherry Festival, Gariep arts
manager for Ethanol Africa (the company in Festival, NAMPO Harvest Day, Aardklop
charge of the plant). “We are in limbo at the Festival and Manguang Arts and Cultural
Other newspapers and magazines
Homemaker’s Fair Bloemfontein
45 000 (Jan-March 2007 ABC)
GetIt 15 000
My Week Bloemfontein 24 676 (Jan-March 2007 ABC)
OFMWheels 20 000
Passi 8 000
Heartlands
Diamond Fields
Advertiser (daily newspaper) 10 105 Jan-March
2007 (ABC)
Volksblad (daily newspaper) 28 708 (Jan-March
2007 ABC)
Volksblad weekend 24 381 (Jan-March 2007 ABC)
Sondag – Sunday Afrikaans tabloid – figures not
yet available
Noordwes Beeld (including
Klerksorp and Potchefstroom)
with a print order of 20 000.
ToGoTo 10 000 copies distributed per quarter

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

CENTRAL SA INTELLIGENCE
Festival, amongst many others. Still bored?
The region also attracts a lot of wealth.
“During 2005, 197 planes landed on our
airstrip for NAMPO and for the last three
years the airstrip has been under air traffic
control,” says Johan Loxton, Grain SA. All of
the region’s festivals see tens of thousands of
visitors (the last NAMPO festival drew over
64 000 people in just four days). This wealth
is spreading as economic development takes
hold. “The up and coming black middle class
is increasing and becoming richer. The
growth in the townships matches that of
townships in other parts of the country. The
townships in Bloemfontein, for example, have
shopping malls that sport Internet cafes,
video stores etc, says Efstathiou.
Sport
Sport of all kinds is hugely popular in the
region, while rugby and cricket are the
favourites. OFM now sponsors all the major
rugby and cricket teams across the Central SA
region. “We recently included the Impala
Leopards from Potchefstroom in the teams
that we sponsor, so we now have every single
rugby and cricket team in the region,” says
Efstathiou. (Cheetahs and Super 14 Cheetahs,
Griquas and Griffons are the others).
For the next couple of years leading up to
the 2010 FIFA World Cup, Bloemfontein in
particular will benefit from massive invest-
ment and this will filter out to the rest of the
area (eg accommodation will need to be
spread out in order to cope with the
demand). When taking a look at the official
Manguang notice regarding the preparations
for the 2010 FIFA World Cup, the effort being
invested in making it comparable to SA’s
other major cities is apparent. Some of the
items on the agenda include the upgrading
of the Free State stadium and the transporta-
tion network, as well as the upgrading of
accommodation and the airport. These
efforts include the beautification of the city,
proper tourism guidance and collaborating
with the Free State Tourism authority and SA
Tourism to market the region. A regulated
home-stay programme will be implemented
in time for the tournament to cope with the
accommodation needs. This will include
Maseru, Kimberley, Welkom and Ladybrand.
(Don’t forget that Bloem has already held
major sporting tournaments, including the 95
Rugby World Cup, 96 African Cup of Nations
3 0 MarketingMix I Vol 25 No. 7/8 I 2007
and 2003 Cricket World Cup.)
The Free State Department of Tourism, Radio listening per day
Environmental and Economic Affairs is also (TGI 2006A)
backing the F1 Powerboat Grand Prix Series 35% don’t listen to the radio
at the Bloemhof Dam until 2009, as well as TV viewing per day (TGI 2006A)
the 2007 SA Games which will be held in 57% don’t watch TV
Bloemfontein in September. Language preference for reading
magazines (FutureFact 2006)
Media English 54%; Afrikaans 23%; 1% Nguni;
With the general increase in development Sotho 21%
and prosperity in the region, it is no surprise
that there has been an increase in available Language preference for reading
media. Interestingly (and perhaps not surprisingly), newspapers (FutureFact 2006)
Marketing Mix can’t find any major/national English 56%; Afrikaans 22%; Nguni 1%;
media or advertising agencies with offices Sotho 18%
based in the Central SA region. An oversight? Language preference for watching
Maybe – but it should concern marketers that local programmes on TV (FutureFact
a wealthy area, with consumers who are will- 2006)
ing to spend, is being overlooked. English 35%; Afrikaans 21%; Nguni 6%;
OFM is still the dominant commercial radio Sotho 37%
station and its drive to promote the Central Preferred language for TV advertising
SA region has paid off. The station has now (FutureFact 206)
completed the implementation of its rebrand- English 42%; Afrikaans 21%; Nguni 6%;
ing strategy and has recently introduced a Sotho 29%
new DJ line-up that includes the introduction Preferred language for radio
of Kevin Savage as both a presenter and a advertising (FutureFact 206)
mentor. In keeping up with the demands of English 18%; Afrikaans 21%; Nguni 6%;
its huge footprint, its office in Potchefstroom Sotho 29%
(which opened in November 2005) now Preferred language for print
sports three sales people. “Our long-term advertising (FutureFact 206)
plan in the area is to build a studio from English 50%; Afrikaans 20%; Nguni 5%;
which to broadcast. We now have approxi- Sotho 22%
mately 109 000 listeners, so while the growth Outdoor advertising recall %
is slow, it is taking place,” says Efstathiou. reach (TGI 2006A)
The station’s innovation is also an impor- Large boards at roadside or on
tant part of its success in the region. In fact, buildings 60%
OFM recently implemented a world first: Poster at supermarkets 58%
WOMF™ (Word Of Mouth Forum – Small poster sites on the street
http://ofm.womf.co.za). In essence, this is a 51%
forum in which consumers can exchange Poster in shopping centres 51%
opinions and make comments regarding local Outdoor advertising see in P7D
products, services etc. It provides the perfect (AMPS 2005/6)
forum for clients to respond directly to Store ads 82%
comments from consumers. WOMF is the Billboards 73%
second biggest blog in the region with 3 500 Minibus taxis 60%
regulars and 400 000 page reviews a month. Top magazines ave issue readership
“Advertising is effective because it is based on (AMPS 2005/6)
relevance, both geographically and timing of Huisgenoot 9%; LSM 8-10 45%
the message,” says Efstathiou. It has already Jet Club 8%; LSM 5-7 10%;
attracted over R1 million in advertising in just LSM 8-10 12%
three months. Bona 7%; LSM 5-7 10%
In addition to OFM sponsoring every major Rapport Tydskrif 18% LSM 8-10
rugby and cricket team, it also sponsors live Sarie 15% LSM 8-10
events. Recently it has sponsored sell out Rooi Rose 15% LSM 8-10
concerts for Michael Bolton, Westlife, Ronan Vroukeur 12% LSM 8-10

Top newspapers ave issue readership
(AMPS 2005/6)
Daily Sun 11%; LSM 5-7 17%
Sunday Sun 10%; LSM 5-7 16%
City Press 10%; LSM 5-7 16%
Soccer Laduma 8%; LSM 5-7 12%
Rapport 30% LSM 8-10
Die Volksblad 20% LSM 8-10
Volksblad (Sat) 17% LSM 8-10
TV stations viewership yesterday
(AMPS 2005/6)
SABC 1 56%; LSM 5-7 75%; LSM 1-4 47%
SABC 2 43%; LSM 8-10 69%; LSM 5-7 52%
eTV 38%; LSM 5-7 52%; LSM 8-10 47%
SABC 3 17%; LSM 8-10 35%
M-Net 4%; LSM 8-10 21%
Any DStv 3%; LSM 8-10 22%
Top radio stations listenership yesterday
(AMPS 2005/6)
Lesedi FM 68%; LSM 1-4 77%;
LSM 5-7 75%
Any community 12%
OFM 9%; LSM 8-10 44%
RSG 23% LSM 8-10
Brands and purchasing habits
(FutureFact 2006)
Often buy no name or supermarkets’ own
brands 57%
Find these days having to buy cheaper
brands rather than well-known big name
brands 48%
Buy imported good as they are cheaper
and good quality 46%
Feeling towards brands and advertising
(FutureFact 2006)
More likely to buy brands that see or hear
advertised 55%
If a company sponsors a sport, more likely
to support them by buying products 47%
Feeling towards brands and services
(FutureFact 2006)
Brand name most important thing when
buying a product 52%
Brand loyal and stick to well-known
brands and shops that are known and
trusted 49%
Would still be interested in a good product
or service even if the marketing is not very
good 56%
Believe that house brands / quality is as
good as big well-known brands 65%
Prefer companies that make sure that new
products or services are perfect before they
are launched 68%
Keating and Will Young. Its charity campaigns
do exceptionally well. A recent event with
OUTsurance saw 14 000 blankets being donat-
ed in just one day. “We engage in aggressive
marketing, especially as there has been a slight
change in our audience. We have the largest
black audience ever and we’ve managed to tap
into the youth market during the nighttime
shows,” says Efstathiou.
OFM has also branched out into publishing
with OFMWheels, an online and print car sales
directory. “OFMWheels is now in the whole
region and gets bigger with each issue. It is now
at 88 pages: when it hits 102 pages we’ll split it
into zones to keep it affordable for advertisers,”
says Koen. The Website attracts 65 000 unique
visitors a month (2.8 million hits).
Even though OFM revenue from the national
market has increased, the region is still regarded as
a ‘secondary market.’ “Advertisers that use OFM
do see a huge benefit in reaching this region but
it always comes after Gauteng, W. Cape and KZN
on the national buying list. “We often have to
remind national advertisers that they have a pres-
ence in the Central SA region,” says Rivak Bunce,
managing director, United Stations, “and that lis-
teners do have money to spend.”
This ‘secondary market’ perception may also
have an impact on other local media such as
magazines, despite the backing of major media
houses. Both GetIt and MyWeek recently
launched in Bloemfontein and while both are
doing exceptionally well, national advertising is
still difficult to pin down. Susna Stemmet,
advertising manager for MyWeek
Bloemfontein, says that in spite of the fact that
they are doing well, they only have one national
advertiser. On the other hand, the magazine is
a community magazine that is geared towards
local advertisers. The MyWeek team is investi-
gating new zones.
Caxton’s local community magazine is also
enjoying success. “We occasionally get national
ads from our head office in Joburg. At the
moment we’re concentrating on the
Bloemfontein edition, although we are expecting
that new editions will be launched,” says Koen.
The population profile of any area is impor-
tant in order for a campaign to be successful.
CENTRAL SA INTELLIGENCE
In the Free State, the population consists of a
majority of Africans (over 80 per cent), fol-
lowed by whites and a small percentage of
coloureds. Sesotho is the dominant mother
tongue, followed by Afrikaans and then
isiXhosa, Setswana, isiZulu and English.
Afrikaans is the more dominant language
amongst whites and coloureds. “Agencies need
to acknowledge what’s going on here, as
they’re missing a huge market opportunity:
clothing designers, property developers and
media like us are popping up all over the
region,” says Retief. She also notes that adver-
tising in Afrikaans should be a given. The
Afrikaans Sunday tabloid, Sondag (Media24’s
latest newspaper), launched recently and
according to Mike Vink, the paper’s editor,
sales have been satisfactory so far – and it’s
not even available in the whole of the Free
State yet.
Beeld has recently launched its latest commu-
nity based Noordwes Beeld, supplement, this
time in the North West Province, which covers
parts of the Central SA region and Klerksdorp and
Potchefstroom in particular. This is only the sec-
ond region specific insert after Mpumalanga
Beeld. The insert will appear every Friday in Beeld.
Although other printed media are available
in the region, it is still easy to hit the right tar-
get market as it tends to be more specialised.
Passi, for example, is aimed at creating pride in
the Central SA region. The magazine is
distributed nationally and Retief is currently
applying for ABC certification. “We’re going
bi-monthly from 2008 and the print run for
our fourth edition has gone up to 15 000
copies,” says Retief. While Retief has
national advertisers in the magazine, she
urges media planners in particular to
investigate the region’s media. “People tend
to forget about Central SA when putting
their media plans together. This is a vast
market and it’s easy to hit the right target
audience,” agrees Stemmet.
Another local magazine that is making
waves nationally is Heartlands, a Bloemfontein-
based travel lifestyle magazine that features
leisure pursuits that are not necessarily
covered by other travel titles. These include
flying and adventure racing, as well as a focus
on culture and iconic journeys. Heartlands is
also focusing on the black travel market and
over half of the content is concentrated on
Central SA destinations. g
Vol 25 No. 7/8 I 2007 I MarketingMix 3 1
by michele venter-davies EXPERT OPINION
How long can your brand manage?
The debate about whether or not marketing
is truly a profession has raged for decades. By
definition a profession is an occupation that
requires specialist training. While South Africa
has many world-renowned marketing
specialists within its borders, the question that
one needs to ask is: ‘Is this a species that is
heading for extinction?’
What is specialist training? Although one
would assume that it involves training by a
specialist, this is not always the case. A quick
survey revealed that a significant number of
marketing lecturers have no practical or industry
experience. They have never been given the
task of actually practicing what they preach.
So just how specialised are these ‘trainers
of specialists’?
At the opposite end of the spectrum we
have the ‘industry specialists’ with no knowl-
edge of educational practices or needs, who
for various reasons – ranging from retrenchment
to retirement to genuine philanthropy – ‘train’
these budding specialists, telling obsolete
stories of ‘when we’ without theoretical
foundation or contextualisation. Add to the
equation the flood of educators in possession
of impressive qualifications from institutions in
exotic locations (both in Africa and overseas)
– and you have a recipe for interesting times
ahead. Exactly who is training your aspira-
tional ‘specialists’?
Also bear in mind that jubilation at
improved Matric pass rates must be tempered
by the fact that there is a 35 per cent pass
requirement. In real terms this means that an
English matriculant is able to spell, read and
write every third word correctly. Educators
now have a more difficult job than ever
before, increasing the need for them to be
suitably qualified and to have the necessary
practical experience to facilitate ‘outcomes
based’ training methodologies.
Those of us who are in the fortunate
position of being able to assess marketing
knowledge and ability from ‘the inside out’ as
it were, are constantly in awe of organisations
who manage to survive in spite of the limitations
of their marketing ‘professionals.’ One is led
to believe that these individuals (who are
entrusted with budgets of millions and
rewarded with six figure salaries and German
luxury vehicles) are well trained.
Think again! If you knew what we know, it is
3 2 MarketingMix I Vol 25 No. 7/8 I 2007
“
There must surely
come a time when the
proliferation of competitive
offerings starts to erode
the consumer loyalty that
is currently masking poor
”
marketing practices.
unlikely that you would trust your ‘brand
manager’ with advertising your grandmother’s
commode in the Classifieds! How would you
rate the following exam paper strategies written
by esteemed and highly paid brand managers
with at least two years of industry experience?
l ‘Target the male market for sanitary
products (with wings) as they are currently
non-users’ (don’t forget to use blue packag-
ing for boys and pink packaging for girls…)
l ‘Offer the CEO of a financial institution a
“free cup of coffee” if he’ll sponsor your
sports team to compete internationally’
(poor man will be bowled over by this
generosity…)
l ‘Distribute petrol at schools as children will
become your market of the future’ (should
one use paper cups or a browser,
I wonder…)
l ‘Advertise black hair care products on RSG
to break down any remaining barriers
created by Apartheid’ (now why didn’t the
politicians think of that one…?)
l ‘Promote industrial sewing machines by
sending out samples to everyone’ (superb
targeting and logistics… at least the Post
Office will benefit…).
And these are the people that you trust with
your brand? Surely marketing managers have a
responsibility to be just as ruthless and
methodical in evaluating all potential and
existing personnel – including their qualifications
– as they would be if they were evaluating
advertising or media campaigns? Marketing
will only become a respected profession if
professionalism is entrenched throughout the
training and practicing process.
The following suggest some possible South
African marketing profession requirements:
l Educators who have solid and genuine
marketing qualifications, combined with
practical industry experience
l Educational institutions that have a policy
of transparency when it comes to the
advertising of their courses and the
profiling of their lecturers and trainers
l Marketing managers who demand
excellence from institutions that offer
marketing qualifications
l Personnel agencies who are prepared to
verify qualifications
l Human resources managers who vet
potential employees thoroughly, both in
terms of their qualifications and the
credentials of the institutions they have
attended.
Employees who recognise the need for
ongoing specialist training as a part of the
passion to become truly professional and not
only as a path to greater financial earnings.
What remains so fascinating is that big
name brands DO survive. While they may do
so by default, they nevertheless appear to
remain robust and profitable. However, how
long can they continue to do so – and how
much more profitable would they be if they
were managed by true professionals? There
must surely come a time when the proliferation
of competitive offerings starts to erode the
consumer loyalty that is currently masking
poor marketing practices. Is your brand
manager up to the task? g
Michele Venter-Davies
faculty head: Marketing and Advertising
AAA School, (011) 781 2772
michelev@aaaschool.co.za

Make the market spend count...
Advertising and marketing budgets are
often tightly controlled by financial directors
who are reluctant to dip into them – especially
since the notion exists that only 50 per cent of
advertising works. Understandably, they want
to invest in marketing that yields measurable
results and turns advertising spend into sales,
in this way making a profit.
Advertising agencies are faced with the
challenge of delivering on this promise in an
environment fraught with audience fragmentation
and media proliferation. There are frequently
many options to choose from and because of
the need for accountability, media planners
often prefer to stick to a tried and tested formula
which has been used for the last decade. Some
agencies simply resort to changing the dates
on the media schedule, applying the principle
that if it worked last year, it should also work
this year.
An alternative would be for the media planner
in question (who is often quite young) to
approach the client – eg the marketing director
of a multi-national corporation – with a request
for a million rand budget based on a ‘gut-feel’
that a particular idea will work and drive sales.
However, in most cases, clients reject (out of
fear) what they consider to be a risky approach,
even if the media planner has conducted the
relevant research to justify the proposal.
Unless clients are prepared to entertain a
measure of calculated risk, they end up being
followers and not leaders. As a consequence,
their marketing budgets are whittled away on
average campaigns, which generally result in
their products or brands getting lost in the
onslaught of standard advertising clutter.
When advertisers persist in taking the tradi-
tional advertising route, consumers have the task
of recalling and differentiating one brand from
another. For example, if there are eight shampoo
advertisements fighting for the same prime-time
slot on TV, it becomes increasingly difficult to
create a point of difference between them.
Think about the corner cafe owner who has
relied solely on passing trade and word of
mouth to grow his business. Consider what
would happen if a local radio station were to
approach him, establish how many oranges he
sold in a week and offer to do a live read,
selling oranges on a special promotion. What if
the radio station were then to revisit the
EXPERT OPINION by mike glover
campaign? A major consideration – frequently
overlooked – is the target market. Accurate
target market identification is critical. Take a
male fragrance product, for example. Would
the target be the male who is wearing the
product, or the female, who according to
research, usually makes the purchasing
decisions? Typically, the planning of this
type of campaign does not support the
relevant research.
Furthermore, while we accept that a target
market of adults in the LSM 4–7 range is used
to define and target the mass market, their
shopping preferences and buying power differ
enormously, with household income differentials
ranging from R1 977 to R6 658. Therefore it
“
should not be assumed that what works for
one product will also work for another.
Although the principles The practice of establishing an accurate
of measurable database for the purposes of mobile marketing
is starting to gain some momentum. How
marketing may sound does one move from a mass communication
strategy, to developing a one-to-one strategy?
simple, unless
Marketers are starting to recognise the value of
advertisers use an developing an interactive solution; one that
elicits a response to an offer for the purpose of
approach which making contact with the target market. The
renders the advertising response to a one-to-one strategy can now be
measured with a database of consenting,
rand accountable, willing consumers. The above-the-line campaign
they will be left dealing and justification of spend is further reinforced
as it builds brand equity and drives volumes.
with very nervous The advertising environment is evolving and
advertisers need to become more creative and
clients – and the cycle
innovative in order to meet clients’ overall
of ineffectual objectives. These are usually simple: driving
sales. However, when agency margins are
advertising spend
”
driven down, advertisers have little latitude
will continue. when it comes to applying creative and original
thinking. While this may present a challenge, it
also provides them with a goal to aspire to.
Although the principles of measurable
marketing may sound simple, unless advertisers
use an approach which renders the advertising
business a week later and measure the results rand accountable, they will be left dealing with
based on improved trade? An increase in sales very nervous clients – and the cycle of ineffectual
translates into a success story and clients thrive advertising spend will continue. g
on opportunities such as these as it gives them
Mike Glover
a sense of money well spent. Success stories
managing director, Red Cherry
are what marketers need in order to stimulate
083 601 3287
change and reduce fear.
mike@redcherry.co.za
How does one measure a successful
Vol 25 No. 7/8 I 2007 I MarketingMix 3 3
by fulvia becatti OUTDOOR MEDIA
Outdoor never looked so good
Outdoor advertising is showing great
promise and growth the world over. In South
Africa it is worth over R1 billion (between
R97-R98 million a month), according to Ken
McArthur, managing director, Nielsen Media
Research SA. “The medium has grown by
139 per cent over the last five years,” says
Lyn Jones, marketing services manager, Clear
Channel Independent. “In January 2006
outdoor advertising contributed four per cent
of total adspend. This year the figure stands
at 5.2 per cent.”
The proliferation of billboards over the
past five years is one sign of the growth of
outdoor. “More boards to sell means more
money in the bank. The advent of citilites and
building wraps has meant that media owners
can now demand a greater share of the
media budget,” says Chris Botha, senior
media strategist, The MediaShop,
Johannesburg. “While the inventory for
electronic media such as TV is being restricted
by ICASA, the inventory for outdoor has been
expanded to include everything from the JSE
building to Tannie Sannie’s front garden
wall.” It seems that there are not enough
sites to meet the demand and experts are
urging companies to become more creative
in their use of scrolling boards, for example,
to maximise the use of single sites. Botha
suggests that media owners need to start
charging more for prime sites to counter
the growing clutter and Mark Mac Donnell,
sales and marketing director, Primedia
Outdoor, believes that this is actually where
things are headed.
The recent development of the Npod
(produced by ACNielsen) and its Gross
Ratings Points (GRP) system, may further
encourage growth. “About six years ago
SAARF started looking at suitable ways of
measuring outdoor, as it was clear that a
measurement technique was needed which
would bring it in line with other traditional
media,” says Paul Haupt, CEO, SAARF. In
2003 SAARF worked together with ACNielsen
to pilot the Npod in Johannesburg. The
current cost of the survey is around R3 million
per annum. The cellphone sized device is
equipped with GPS and is carried by
participants during their daily comings and
goings for a period of ten days. The Npod
3 4 MarketingMix I Vol 25 No. 7/8 I 2007
tracks participants’ travel patterns as well as
their demographics and the data is down-
loaded to a geographical map that is related
to geocoded outdoor sites. The tool then
allows for the data to be processed and
determines the direction and speed of partici-
pants’ travels, as well as the frequency with
which they pass particular billboards.
During 2006 the study covered Gauteng
and KwaZulu Natal. It covers the Eastern and
Western Cape during 2007 and it will cover
the Free State, Northern Cape and
Mpumalanga in 2008. “Even though the
feedback thus far has been positive, one
must remember that it is still early days and
that the offering will be improved and
refined as time goes by,” says Haupt. He adds
that the industry will decide whether to
extend the SAARF contract later this year.
The device addresses issues of measurement
and accountability and allows clients and
agencies to measure ROI more effectively.
“For the first time you have a situation in
which you can calculate the reach and
frequency of billboards,” says McArthur. “This
is something we have not been able to do
before with regard to outdoor media. These
media can now compete on a level that is
equivalent to other mass media, like TV and
radio.” Botha believes that while the Npod is
still being refined, it will make outdoor
planning a far more scientific process in the
future; one that makes the demographic
profiling of billboards possible. “It will place
Nedbank powers
Alexandra school:
Nedbank’s solar panel billboard (which won
ad agency, Net#work BBDO, a Grand Prix at
the International Cannes Advertising
Festival) is the first of its kind in the world.
The billboard is equipped with solar panels
that provide electricity for the kitchen of
the MC Weiler School in Alexandra
Township (alleviating the school’s electricity
bills by over R2 000 a month). “The design
is a 4.5x18 metre billboard that can take
the added load of the solar panels and bat-
teries and also fit into the limited space
that is available at the school,” says Clinton
Mitri, chief operations officer, Net#work
BBDO. “Think of the premise that you can’t
teach a hungry child and imagine what
could be done if every billboard could make
a real difference like this at a brand level,”
says Mitri. He refers to Millward Brown
research, which reports brand equity
growth in the mass market, a sector which
Nedbank previously ignored. In this
instance Nedbank’s brand health is very
strong at a community level, given that it is
making a difference to the lives of over 1
000 children at the school on a daily basis.
While sites have been identified for a
countrywide rollout, getting the necessary
approvals has turned out to be a rather
slow process. The billboard was designed
by Graphic Wizard and Red Dot and the
solar panels were provided by Lumi Tech.
 OUTDOOR MEDIA

the outdoor advertising in companies’ plan- processing. The release date has not yet been
ning systems on a par with other traditional confirmed.
media, enabling it to compete more effectively All of this bodes well for the outdoor
for advertising spend,” says Haupt. medium, although the industry has yet to
According to a report published on shrug off several major issues. In recent years
www.bizcommunity.com (14 April 2007), the it has been heavily criticised with regard to
early SAARF electronic outdoor results found the monopoly that appeared to ‘own’ it and
that Gauteng adults see an average of 18 outdoor the resulting lack of competition. This particular
sites between 4pm-6pm every day. In KZN issue seems to have been addressed with the
adults see 16 sites per day. In both these entry of new players that include a few smaller,
provinces, the average number of daily board black owned media agencies. “I believe that
impressions is 29 000 (gantries top the list, there is a healthy amount of competition in
followed by unipoles, super signs, pole ads the industry at present. It is highly competitive
and bus shelters, in that order). According to and this impacts positively on creativity and
SAARF Technical Support Manager, Michelle innovation,” says Mac Donnell. Botha
Boehme, the formal release of results echoes the sentiment: “Nowadays we are
(originally scheduled for August) has been bombarded by smaller players, each with a
delayed, while SAARF works with contractors few sites to sell. Although the industry is still
and agencies to verify site data and ensure ruled by a few major players, I wouldn’t call it
that no anomalies arise during the data a monopoly.”
Another major issue that has placed the
outdoor industry in a negative light is the
SAMOAC unprofessional conduct of some companies.
In 1998 the Department of Transport and the Department of Environmental Affairs and “For as long as I can remember outdoor has
Tourism joined forces to develop the South African Manual on Outdoor Advertising been the ‘wild west’ for media types: it has
Control (SAMOAC). While this document serves as a guideline and framework that con- plenty of characters and there is hardly any
trolling authorities and the Outdoor advertising industry may refer to, it is not, as Mac evidence that the ‘law’ makes much of a
Donnell points out, a by-law. “It was – and still is – a guideline document. Although a difference,” says Gordon Patterson, managing
number of the by-laws of various councils are based on the broad framework that is out- director, Starcom. It seems that much of the
lined in SAMOAC, there is no single by-law that governs Outdoor advertising. It is up to bad behaviour, born of impatience with
each local authority to adopt its own set of Outdoor advertising by-laws,” he says. As indi- procedures and protocols, was related to the
cated in the foreword of the SAMOAC document, the development of new advertising growing demand for impactful sites in an
techniques and methods require continual updating. “Moving away from SAMOAC, it is ever more cluttered environment. Botha
important to note that the SA National Roads Agency have regulations in place regarding believes that illegal billboards (which are
the control of advertising that is visible from national roads. These regulations are appli- traditionally placed in great locations) tend to
cable throughout the country, as national roads transverse the various provincial bound- sell out quickly and this forces media owners
aries and are found in both urban and rural areas,” says Mac Donnell. “It is however to look at grey sites for alternative real estate.
important to note that these regulations are only applicable to national roads and not to “In some instances where the approval
roads that are under the jurisdiction of a local or provincial authority.” process is delayed, industry players have been
known to become impatient and to create
sites without having obtained all three
components of the necessary approval. These
Out Of Home Media South Africa (OHMSA) Awards 2007 are: landlord approval; council approval and
OHMSA has introduced an award for the best creative advertising designs. SA National Roads Agency (SANRA)
There are eight categories: approval,” says Mac Donnell. In a nutshell,
• Overall winner the bad behaviour of a few has resulted in
• Billboards (grand format, scrollers, campaign media, wall murals, building wraps, the introduction of increasingly restrictive
• rank/station branding, etc) bylaws, which are almost prohibitive of the
• Internally illuminated billboards medium. “The new legislation requires that
• Electronic billboards (digital, electronic and plasma screens) new site applications are subjected to the
• Airport advertising (external, internal and promotional displays) same rigorous procedures that come into
• Retail/street furniture (Adlites, bus or taxi shelters, bins, benches, etc) play when one is applying for a site for a new
• Mobile media (buses, taxis, trailers, etc) house,” says Jones. This means that the
• Ambient media (shopping centre displays, airborne banners, bikes, kiosks, etc). development of sites is simply not keeping up
Visit www.ohmsaawards.com for more information. with the demand for sites. “However, the
unscrupulous operators would not survive

Vol 25 No. 7/8 I 2007 I MarketingMix 3 5

OUTDOOR MEDIA
without the support of marketers who know
full well that the sites they have bought do
not comply with the regulations. Authorities
are in turn drafting legislation that takes into
account the illegal activities of these operators.
In doing so they are drawing up draconian
regulations, which they are not adequately
geared to administer or enforce,” says Holley.
The increasing red tape and the legislative
grey areas are devaluing this medium and
experts warn that if the activities of
unscrupulous media owners are not curtailed,
industry anarchy will prevail.
Out of Home Media South Africa
(OHMSA) and the outdoor Advertising
Association of South Africa (OAASA) both
serve to increase industry regulation and
support. “OHMSA’s role is to promote the
use of the various forms of out of home
media, to assist media owners to grow their
share to between eight and 10 per cent of
adspend by 2010 and to lobby for regulations
that are fair to the industry, the regulators
and the environment,” explains Les Holley
executive director, OHMSA. They also have a
responsibility to monitor industry develop-
ments abroad. While some believe that red
tape and legal wrangling will hinder the
efforts of these bodies, it is acknowledged
that they will go a long way to restoring har-
mony to this industry if contractors show
greater support in the way of membership of
these organisations. Perhaps one of the
matters that these bodies should address is
the fact that there is no single piece of
legislation or set of guidelines which governs
the industry on a wide scale. “Each munici-
pality has its own set of bylaws – there is no
national standard or set of rules. The situation
would be much easier to control and regulate
if there was a national protocol,” says Mac
Donnell. Holley also points out
that media owners need to adhere to the
regulations that are put forward by munici-
palities and the government – not the other
way around.
Despite the few negative aspects of the
industry, it is a growing medium in which
technological innovations are a driving force.
“The investment in developing new and
improved products (print and technologies)
has attracted new advertisers and categories,
as well as new formats,” says Jones. At this
stage there are few digital innovations in
comparison with the US and the UK and it
appears that the reason for this is the cost of
3 6 MarketingMix I Vol 25 No. 7/8 I 2007
the digital formats. “These are extremely Innovation
expensive to install and given the limited Clear Channel Outdoor’s Spectacolor
periods that councils are approving, it is Division (USA) will launch one of the
not yet feasible to grow this form in the industry’s first high-definition digital
medium,” says Holley. billboards in New York’s Time Square.
One of the factors that is contributing to This board has the highest possible
the growth of outdoor is the emergence of resolution and is also equipped with
the black middle class and the development the latest interactive technologies
of the townships. “Townships are highly (including Bluetooth, SMS messaging
valued economic hubs, as there is a definite and free broadband wireless access).
increase in disposable income in these areas. Consumers are able to engage with
Many of the new township malls have stores the content by downloading audio,
and brands that are similar to those in visuals and text info to their mobile
Sandton City and Fourways Mall,” says Mac phones. They can also send text mes-
Donnell. However, as Ridwaan Mohamed, sages and play games. The new
sales director, Strawberry Worx, points out, boards will stream news, weather and
outdoor companies have only recently directed sports content along the bottom of
their focus at these markets (especially since the screen. Clear Channel is currently
the banking institutions have aggressively in discussion with content providers
moved in on the townships and opened new and potential advertisers.
accounts there). “Soweto alone has experienced
Will iCapture innovate audience measurement?
TruMedia (Israeli based tech company with a background in tracking and recognition
surveillance software development for Israel’s homeland security), has developed a tool
which measures digital media audiences in real time. The software is built into high
resolution, wide angle cameras, which are mounted atop a digital display; the camera
automatically detects viewers, locating every pair of eyes that are looking at the screen at
any given time. It tracks these, counts them, and measures them according to how long
each pair of eyes looks at the screen. The software also records basic demographics (age
range, ethnicity and gender) and viewing habits. Local company, Rocketscience Media
Solutions, has acquired the exclusive South African distribution rights, while Spectrum
Visual Networks has been appointed the local sales agent.
According to Manny Teixeira,
MD, Spectrum Visual Networks, the
iCapture system is ideal for compa-
nies running out of home digital
media advertising networks,
research agencies, and banks.
“With the iGaze product, which is
focused on window displays, we’re
looking to talk to the large fashion
retailers,” says Teixeira. He also believes that the research houses could use the technology
to cost effectively build up a significant amount of research data. “The technology as it
currently stands is very unique, so we believe it will rather define its own market space
than specifically compete with existing market offerings,” says Teixeira. The systems are
relatively pricey compared with other measurement systems, with cost depending on
factors such as the number of cameras per system, etc. While the unit is currently
designed for indoor use (and therefore not safe from outdoor weather conditions, for
example), an outdoor unit is being developed. Vandalism is not a problem, as the
cameras are easily camouflaged. “It is brand new technology – from a commercial point
of view, the first units were only shipped in June – so we are one of the first countries to
actually receive one of these,” says Teixeira. In Denmark, high-tech banks are using the
systems to do customer profiling of automated services users. “It’s very early days yet, but
from initial reactions, the banks using it are very impressed and are looking to deploy
more of the iCapture systems,” says Teixeira.

a surge of development with three new
shopping centres opening recently. As a
result, consumers in Soweto travel and
shop within smaller geographical areas –
and where there are consumers, there is
advertising,” says Jones.
Marketers have come to understand that
black markets are both savvy and desirable.
“Black markets do not appreciate being
lumped together with a ‘one shoe fits all’ atti-
tude. These consumers are very aspirational:
they are brand and image conscious and they
don’t mind paying extra for branded items and
products,” says Mohamed. Botha agrees that
the township market is the most undervalued
outdoor proposition. “The sites in these areas
have a massive impact and are normally
relatively cheap. Any advertiser who targets
this market should definitely use this medium.”
What marketers need to realise is that
black consumers are not a homogenous,
uneducated market. “Most marketers from
FMCG, cellular, retail etc, that make decisions
on behalf of their clients have not been to
the townships and therefore do not under-
stand the dynamics of this grouping of
people,” says Mohamed.
Other drivers for the growth of outdoor
media include the fact that it is not affected
as much by the media fragmentation that
has impacted on TV and print. “The value of
outdoor advertising boils down to the fact
that its the link between people (when they
are outside of their homes) and points of
sale,” says Jones. For this reason, outdoor
media possess great potential for reaching us
where mass media no longer do. “Outdoor
media give a brand street presence; a public
face; a permanent place in the community,”
says Mike Thomas, general manager,
International Division, Primedia Outdoor.
With the 2010 FIFA World Cup just around
the corner, one begins to wonder how we
measure up against international markets.
Botha believes that our market is not yet
comparable to overseas markets (especially
countries where electronically based mediums
are used extensively). “Media owners abroad
can now sell their media by time channel.
Imagine buying ‘drive time’ exposure on a
billboard. It allows advertisers to be more
focused and widens the net of potential
clients for the sales team,” he says. He
anticipates that we will follow these trends.
Mac Donnell agrees that even though
outdoor is developing rapidly, there is still a
lot to learn. “With international advertisers
coming in for the 2010 FIFA World Cup,
South Africa will be exposed to international
standards and this will benefit the industry as
a whole,” he says.
Will we cope? Some don’t think so.
According to Jones, FIFA’s regulations
stipulate that all advertising in and around an
approximate 1km radius of each stadium will
be reserved for key sponsors three months
prior to, as well as during the tournament.
Botha believes that this places FIFA and their
activation teams on a direct collision course
with media owners and clients. “Outdoor in
2010 is going to be an absolute mess. As
most of the outdoor around the stadia need
to be removed, I believe that the clutter in
other parts of town will double and that the
price will sky rocket,” says Botha.
“International brands will try and enter our
market for those few weeks and you can be
assured that local media owners will charge a
fortune – just because they can. The smaller
local brands will suffer as a result.” Mac
OUTDOOR MEDIA
Donnell and Holley argue that this won’t be
the case, as FIFA will only have a minimal
effect on regulations (given that their
requirements are for a short period). They
believe that there will be sufficient opportunities
for others to get a piece of the action, in
spite of the fact that FIFA partners will have
control of the prime spots. “They will just
have to be creative. My major concern is
about what happens afterwards? We as an
industry need to ensure that we avoid a
depression post-2010,” says Mac Donnell.
It appears that the industry needs to take
innovation and evolution more seriously,
before putting its best foot forward on the
2010 global stage. “I would like to see some
radically innovative ideas with regard to
creative and real estate,” says Mac Donnell.
“I believe that there is a great deal that we
can do with outdoor and I hope that councils
will give permission for the impactful use of
the medium.”
So what can we expect in the future? A
greater demand for prime sites, as well as an
increase in the use of digital printing and elec-
tronic media, are among the anticipated
developments. “Hopefully the costs of produc-
tion will be reduced, allowing the industry a
higher degree of creative flexibility,” says Mac
Donnell. Perhaps this will spark some really
exciting projects. “Interactive street furniture –
achieved by means of Bluetooth communica-
tion and digital reproduction – is a reality in
many countries around the world. This will
come to SA (along with digital billboards), as
the technology improves and becomes less
expensive,” says Holley. Botha believes that we
are headed for an environment in which
clients look for things to brand. Imagine the
grass at Ellis Park painted OUTsurance green;
the M1 highway painted McDonalds yellow
and the Voortrekker Monument covered by an
Iwisa Maize Meal building wrap!
In the meanwhile print ads are slowly
becoming better suited to the outdoor
medium, with agencies and marketers
realising that it is not enough to slap a print
ad onto a billboard. Clear Channel, for
example, works with clients to develop
creative and designs that are effective in the
outdoor environment. “As the role of the
medium evolves and as the lines that have
differentiated it from other media such as TV
disappear, I predict that we’re going to
see an explosion of creativity in this area,”
says Patterson. g
Vol 25 No. 7/8 I 2007 I MarketingMix 3 7
 by jarred cinman EXPERT OPINION
Design a digital m
The brave new world of online (or digital)
marketing beckons. It offers many benefits,
including tight focus, traceability and auditability
– and if done correctly – a rapid return on
investment. How do you, as a traditional
marketer, enter this brave new world? This
question is particularly valid in South Africa,
where we still tend to lag behind developed
markets as far as digital opportunities are
concerned. The first question that a marketer
needs to ask in this situation is: ‘How do I
approach the opportunity?’ There are four
obvious options to consider:
z Take the task in-house:
this is often the first consideration and
although some agencies are doing good
work, the results vary in terms of quality and
“
degree of success.
z Work with a traditional agency,
An agency and a digital which at the very least understands the
offline world and the imperatives of the
technology specialist
client. In this and the previous case, however,
cooperate to deliver a there is frequently no clear understanding of
the technology and of what it can do for you.
complete solution for In situations where a bold approach is called
the client. In effect, this for, the agency is either too timid or it designs
an adventurous but impractical approach to
means that the agency the task.
z Work with a dedicated
brings its client knowl-
digital agency that brings a deep and practi-
edge to the table, while cal understanding of the technology to the
table, as well as a knowledge of how to
the digital specialist maximise the opportunities. In this regard it
brings specific insights. is best to
form a partnership rather than to adopt
In many cases, this is the
”
a vendor-client model.
ideal model. z An agency and a digital tech-
nology specialist cooperate to deliver a com-
plete solution for the client. In effect, this
means that the agency brings its client knowl-
edge to the table, while the digital specialist
brings specific insights. In many cases, this is
the ideal model.
Campaign elements
When putting together your digital marketing
campaign, you need to look at two broad
3 8 MarketingMix I Vol 25 No. 7/8 I 2007
areas: paid-for and ‘free’ (or not paid for). In
the paid-for domain the first consideration is
to drive awareness, which is normally done
through the use of a mechanism such as a
banner ad. This is analogous to placing an
advert in a publication, which means that it’s a
discipline that is easily managed and mastered
by a traditional agency. As more and more
people turn to broadband, it is becoming a
vital element of digital marketing. However,
you must understand why you are doing it. It’s
not great for brand building but it is effective
for initiating an action from a viewer or
potential buyer, delegate or subscriber.
The key difference with banner adverts is
that their effectiveness can be measured and
advertisers usually pay per click. This has both
an upside and a downside. While the number
and value of clicks can be measured, the cost
per click is rising and this can make a
campaign like this prohibitively expensive –
some sites are charging up to R50 a
clickthrough (which is not a problem if each
click translates to business). This places the
onus on the client and on the service provider
to introduce a stringent qualification process.
Another limitation is that web browser plug-ins
are hurting the banner ad market. In effect
these plug-ins allow users to bypass banner
ads in much the same way that the PVR lets
you skim past TV ads. Nevertheless, banner ads
are a huge and growing business because they
do deliver value for advertisers – as long as you
are hitting the right LSM! As with all advertising,
you must always know whom you are targeting.
Keyword purchasing
This has become a monumental business,
especially in the US. It consists of the practice
of buying keywords and embedding them in
your website. Theoretically, as people search
for companies, offerings or service providers
online, they will find you if you own the key-
words (those who own the keywords will lead
the market). A handy tip here: work with
Google AdWords and Adsense, which can
South Africanise your content and help to drive

al marketing campaign
income through revenue sharing. However,
there is a caveat: if your website happens to be
commercial, you could end up cannibalising
your own revenues. Positioning is critical and
this is something that traditional agencies excel
at. An agency could help you to position your
website in such a way that people are able to
make their way to it. However, what happens
after someone clicks on your banner ad and is
drawn to your website? Are you enjoying the
desired outcome? Given the cost per click, you
need to be able to qualify the clicks by using a
tool such as Google’s Website Optimizer.
Building on these aspects as a foundation,
you can begin to drive an integrated marketing
campaign. You need the assistance and guidance
of digital experts to do this. The ideal is to
build a community of like-minded people who
gather on the Internet of their own volition
because they find value in the community.
Free options
z Organic search engine
ranking: this is all about search engine opti-
misation, which is a complex area that is
wide open in South Africa. In effect, it’s
about building your website so that you
obtain better results when people enter a
search string in Google. (Google is really the
only search engine you need to concern
yourself with, since the others, such as Yahoo
and MSN, have been marginalised). You
must persuade Google that yours is the best
website for a specific requirement. You need
to do it subtly and carefully, as Google’s
algorithms will bounce you to the bottom of
the rankings if you use a heavy-handed tech-
nique, such as excessive repetition of the key-
words embedded in your website. To put it
simply, it is so easy to get it wrong with
search engine optimisation that you would
be well advised to recruit the services of an
expert in this field.
z Viral marketing is another
‘free’ option: to a great extent this is the
Holy Grail of digital marketing. Viral market-
ing describes the process of people obtain-
EXPERT OPINION
ing so much value from a website that word were converted to sales. It all depends on the
of mouth rapidly spreads and in no time at key metrics in your business. It’s a daunting
all you have a hit on your hands. Facebook journey and one that is best undertaken with
is the benchmark here. However it’s very someone who can help to guide you through
much like Hollywood: despite years of expe- all the potential traps and pitfalls. g
rience, who knows what will be a hit? The
key here is to give visitors so much value
that they will be persuaded to go and tell
their friends and colleagues about it.
z Blogging: blogs can be viral
in nature and they need a few words of their
own. They are prone to hit and miss but if
you happen to get it right, you can drive
many people to your messaging. Blogs can
also be damaging to your brand, especially
when a credible blogger posts something
“
Every digital marketer must have a strategy that
is both proactive and reactive where blogging is
”
concerned. There must be a mechanism for
tracking, managing and responding to blogs.
negative about your company and its prod-
ucts. Consumer activism on the Internet can
be dangerous since buying decisions are fre-
quently made through word of mouth. Every
digital marketer must have a strategy that is
both proactive and reactive where blogging
is concerned. There must be a mechanism
for tracking, managing and responding to
blogs.
Finally you will need a way to measure the
success of your digital activities. Obvious
measures include: how many clicks or
impressions you enjoyed; how many people
registered for an event and how many clicks
Jarred Cinman
director, Cambrient
(011) 807 8570
jarred@cambrient.com
Vol 25 No. 7/8 I 2007 I MarketingMix 3 9
by nici stathacopoulos EXPERT OPINION

Whose line is it anyway?

I finally got the title of the absurd TV infomercial – but they are calling the customer
programme, Whose Line Is It Anyway, the other to take immediate action; to visit a store and
night when my three boys (two teenagers and make a purchase. Now our customer is in the
an adult) rolled around the lounge floor in hysterics. store – what do we do with him? We give him
I still don’t find the programme that funny. a postcard with a URL and tell him to go
What I do find really funny though, is the online and complete his details. For doing this
continuous reference to the ‘line.’ he will be richly rewarded with gifts that are
Recently, various marketing people at a tailored to his needs. These TV adverts are
client had a lengthy debate on the work we promotional and they are building the brand.
presented: ‘Was the recommended use of a However, if they are thought through to the
newspaper a direct channel?’ The other day, very end, they are in fact direct!
Matt, one of our young and talented copy- The next question that crosses that line is
writers, told me categorically: “It’s not about how to market to the lower end of the LSMs
the channel or the line – I just want to do who don’t have mailboxes – and if they do,
great creative work.” Ramesh Iyengar from we don’t know their names. They certainly
Mumbai, an international judge in the don’t have access to e-mail either – at least
Experiential category of The Loerie Awards, not every day. How do we reach them and
declared that BTL stands for ‘Between the ensure that we get a response, so that we can
Line.’ Finally, after a long discussion, a measure our campaign and sales? Can we be
potential client asked us: “Who do you direct? The answer is in the message. We

consider to be the hottest agency in SA
today?” My response was an instant “us!” to
which he replied, “No, I mean in above the line.”
What line?
My creative partner, Stu, returned from judging
Cannes Direct and went literally headlong into
judging Loerie Direct. He made the same
observation: “Is it direct or have we shifted?”
Exactly what does direct mean, creatively and
strategically speaking? If I want a direct marketing
“
Direct marketing in
the traditional channel
of mail can be costly,
especially when we start
to reward recipients with
points and accessories for
can’t afford to think about the line.
We also need to remember that direct
marketing in the traditional channel of mail can
be costly, especially when we start to reward
recipients with points and accessories for
profitable behaviour. It’s not only the R100
mail pack that we must consider: the actual
cost of the reward must also be factored in. So
we use traditional media channels in order to
reach the masses but we must ensure that our
message has a strong call to action, which truly

”
agency, what am I looking for? Can my DM engenders a response. Once we have received
agency be creative? How can we be creative if profitable behaviour. a response, we should have an additional piece
we are being direct? Well, the entries for the of information about our recipient. Now we
Loeries certainly challenge this thinking, as do can start cooking with the more direct channels.
the number of traditional agencies who One piece of info is like gold. Can you imagine
submitted their work in this category. how far you can take your relationship if you
So now we are faced with some 28 TV ads; have a second, third or even fourth piece of
mostly 30 seconds long; all promoting a product. information? This is where we can begin to
The question arises as to whether these ads differentiate ourselves and our clients from our
are brand building or whether they are pro- competitors. This is the point at which we
motional? They can’t be deemed direct – marry the science of CRM to the art of creativity.
after all they are not the boring 10 minute Now we can start to segment our bases
according to our customers’ value/ potential
One of my staff picked up a postcard from Nike on a plane. Its call to action was to write value and by using the information that we
a pledge, send it back and your details would go into a draw to win some great prizes. have on them, we can initiate the rewards.
Clearly they wanted to gather data but the American agency that printed them didn’t ask So, it’s no longer in or out of the box or on or
for any contact details. None. We know that it’s a US agency because I asked some off the line. After all, whose line is it anyway? g
colleagues who do Nike’s online work whether they had produced the cards and they
hadn’t. Do the Americans have an amazing telepathic system or did they intend to run all Nici Stathacopoulos
the postcards through the Aphis finger print system used in CSI to discover who each CEO, proximity#ttp
respondent was? I think they were probably an amazing above the line agency that didn’t (011) 447 7093
know any better! Marry the science to the art! nici@proximityttp.co.za

4 0 MarketingMix I Vol 25 No. 7/8 I 2007

by dr robert passikoff EXPERT OPINION
Predicting market success
Peter Drucker observed that, ‘there is
surely nothing quite so useless as doing with
great efficiency what should not be done at
all.’ Unfortunately a lot of research illustrates
the truth of this remark. One of the goals of
my book Predicting Market Success: New
Ways to Measure Customer Loyalty and
Engage Consumers with Your Brand is to
teach marketers how to do meaningful and
predictive research. It provides a 21st
century perspective on predictive loyalty
and engagement metrics.
The truth is that since 1985 the marketing
realities that have confronted companies and
brands have become worse. Consumers ARE
in control and have been ever since the 21st
century began. My goal in writing the book
was to teach the application of 20/20
foresight rather than 20/20 hindsight, including
metrics that correlate to sales and profits.
One merely has to look at how most
brands struggle to differentiate themselves
from their competition to know that new
research and planning approaches are needed.
The rational aspects of a category or brand,
once great sales levers, are now table stakes.
You either have them or you’re out of the
game – and everyone has them! One cannot
help but recognise the rapidly evolving ways
in which consumers use, juggle, adopt and
‘gate keep’ old and new media. The key is
how to predict which medium (and which
particular entertainment venues in each medium)
will help to guarantee market success.
It’s no secret that brands are more
commoditised and consumers are more savvy
– and that the media itself is more fragmented
than it has ever been. Neil Postman (media
theorist) predicted that one day we would
wake up and find that we were living in a
‘media ecology.’ This came true a lot sooner
than anyone expected or was prepared for.
It’s astounding that his observation that
marketers would have to know ‘how media
of communication affect human perception,
understanding, feeling and value’ reflects
the same concerns that modern marketers
are faced with today (and that most are
struggling to handle).
While one can argue about the precise
date that this consumer-controlled media
ecology finally arrived in all its full-blown
4 2 MarketingMix I Vol 25 No. 7/8 I 2007
“
Doing what you
did in the previous
century won’t work
much longer – just
acknowledging the
”
need is not enough.
complexity or debate the marketing and
communications continuum upon which it
migrated, it is an incontrovertible fact that a
real 21st century media ecology – ie an
environment in which the consumer is virtually
cocooned by (and in control of) media of one
sort or another on a 24/7 basis – has arrived.
Brand planning for this environment is there-
fore more complex than ever before.
In order to successfully address this
complexity, marketers should re-calibrate their
definition of ‘brand equity.’ They should
ignore the outdated definitions of the term
(which more often than not relate to imagery
or – yes, even in this marketing environment –
to brand awareness!) and use the following
as an operational definition:
‘Brand equity’ is the degree to which a
brand meets or exceeds the consumer
expectations for a category in which
it competes.
What is the reason for this? The fact that
the components that make up consumer
expectations are mostly emotionally-based
and account for 70+ per cent of the brand
decision process (and happily, the emotional
drivers) can be quantified. If your marketing
department or your advertising agency is
throwing around terms like loyalty, emotional
bonding, bonding with our consumer and
engaging our customers emotionally, you
need to ask them: ‘How?’ Just how are they
doing this – beyond using music that was
popular in the 1960s or resuscitating some
old 50s TV stars in ‘classic’ black and white?
Smart marketers need to be more than
creative to get the job done. They need to
strategically engage the customer and the
only way to do this is to make sure that all
marketing and communication activities
reinforce the brand in ways that help it to
meet or exceed customer expectations.
From a loyalty and engagement perspective,
brand planners can get CEOs and CFOs to
‘buy into’ marketing and advertising
programmes, especially when they are able
to show a nearly straight-line correlation with
sales and profits or a high correlation with
positive behavior toward the brand. Doing
what you did in the previous century won’t
work much longer – just acknowledging the
need is not enough. g
Dr Robert K Passikoff
founder and president, Brand Keys.
Author of Predicting Market Success:
New Ways to Measure Customer
Loyalty and Engage Consumers with
Your Brand.
www.brandkeys.com
 The Best of Point of Sale Conference -
7 September 2007

Marketing-at-Retail
Featuring Dick Blatt, the President & CEO of POPAI International

Dick Blatt will discuss the latest international trends and their relevance to SA. He will present the results of the first MARI
Study measuring Shopper Engagement at Retail, assessing how shoppers where influenced by various POS activities.

Our line up of speakers and topics will influence your marketing thinking about effective PoS in SA.

A one day conference at the Sandton Sun, Johannesburg.

PoS strategy briefing How to promote in the townships

Welcome by Yatish Mehta MD of Uniprint Point of Purchase.
Dick Blatt will overview the big international PoS trends, the latest
solutions and the early results of the new MARI project. This first proof of
concept study was conducted in the United Kingdom at Morrisons and
ASDA/Wal-Mart stores. Initial findings show not only the volume of shoppers
visiting the stores but the amount of marketing at retail materials to
which they were exposed, and what materials actually caught their eye.
Effective measurement at PoS
ACNielsen will present the latest research on consumer profiles,
purchasing behaviour and shopper choices. They will evaluate the
influences of the various components of PoS marketing. And they will
demonstrate how to measure PoS effectiveness supported by a case study.
How to use technology to drive PoS solutions
IBM will present their perspective on where, when and how digital media
will seriously influence retail and PoS in SA, and they will demonstrate
some very compelling applications.
Xolisa Dyeshana from Joe Public, will comment on the latest promotions
in the townships; targeting various income groups, and the guidelines
that ensure that PoS promotions are acceptable to the spazas, the chains
and the malls.
PoS showcase
The best of the Loerie Awards ’07 and our selection of what’s hot right
now. The key ingredients of their success.
Dick Blatt: Q&A
Your opportunity to pick the brain of the most informed PoS expert in
the world.
About POPAI: www.popai.com
POPAI is an international trade association for the marketing at-retail
Industry, with 1700 member companies (brand, retail and PoS).

The Young Shopper: what turns him on

Liesl Loubser, CEO HDI Youth Marketeers, knows everything about the
youth market, and how to market to them successsfully. Liesl will
demonstrate successful programmes influencing their shopping behaviour
and she will highlight some big marketing mistakes.

Delegate fee: R2500 plus VAT. Three or more delegates R2250 plus VAT per delegate. Booking by 31 August.

Enquiries or registrations:
Contact Robyn on 011 23 7008 or robyna@systems.co.za

Uniprint Point of Purchase is one of the largest Marketing-at-Retail suppliers in Africa, specialising in the manufacture and distribution of a wide range
of below-the-line promotional printed products, including temporary and semi-permanent point-of-sale display stands. The company also offers a
unique in-house creative structural design and rapid prototyping service. Uniprint customers include FMCG companies, advertising agencies, retailers,
financial services institutions and companies in the pharmaceutical, telecommunications and petroleum industry. For more information, please contact
Cliff Jones on 011 806 9600.
 by fulvia becatti SAMRA REPORT BACK
SAMRA 2007
The 2007 South African Market Research Association conference produced some
interesting research papers. Marketing Mix brings you the highlights.
Deeper, more candid insights faster? It’s possible with
online qualitative research
By Andrea Chemelly (TNS Research
Surveys) and Corette Haf
(Qualonline.co.za)
The most exciting paper at the conference
was that of Andrea Chemaly
and Corette Haf. The pair
acknowledged that local
Internet access is growing and
that it holds great potential for
marketers and researchers, in
spite of being at only 14 per
cent for those over 18 years
(compared with 69 per cent in
the US). They illustrated the
effectiveness of online bulletin
boards in their research
amongst South African teens.
The study focused on ‘issues
facing teens in the techno age.’
They selected teens between
the ages of 14 and 16 years
from Johannesburg, Durban
and Cape Town, who owned cellphones that
were equipped with the ability to send and
receive pictures. Respondents had to be
comfortable with surfing the web and had to
spend between two and three hours a week
doing so (home Internet access – using a PC
less than four years old – was a prerequisite).
In addition respondents had to have been
on MXit within the week before the study
was held.
The researchers created a billboard for girls
and boys respectively and asked them to
respond to various questions and issues. They
received very candid answers, even as far as
respondents’ illegal or underage activities on
such topics as sex, drugs and alcohol were
concerned. They insist that teens would not
have been as candid in focus groups (where
they could have felt uncomfortable or uncool
in front of their peers). Since the bulletin
boards allowed for anonymity, the teens felt
4 4 MarketingMix I Vol 25 No. 7/8 I 2007
safe enough to express themselves and to
share their experiences and opinions. They
found that teens are very tech savvy
(researchers had oversimplified the instruc-
tions and were reprimanded by the teens
involved): they are very comfortable express-
ing themselves via this technology. They also
found that teens are far more responsive to
SMS than they are to e-mail communications
(they had to be alerted to e-mails and
reminded to respond). Despite the absence of
body language, the teens made effective use
of text colours, emoticons, pictures and
abbreviated SMS language in expressing
themselves. Many said that they enjoyed the
experience and that they would take part in
such a study again in the future.
Haf and Chemaly concluded that while on-
line qualitative research might not be an effi-
cient replacement for a face-to-face interview,
it certainly holds tremendous potential with
regard to expanding qualitative research as a
whole in the South African context.
Online research methods include: real time
focus groups, bulletin boards, multi-media
online focus groups, etc.
The benefits of online research tools:
z Capacity to reach popu-
lations that are geographically dispersed
z Able to reach everyone
from youth to working professionals, espe-
cially among the upper LSMs
z Reach respondents
while they are in their own physical com-
fort zones
z Afford privacy for sensi-
tive or embarrassing topics and issues
z Have the potential to
minimise social pressures
z Offer accuracy and tran-
scripts that are immediately available
z Make it very easy for
clients to view
results and interactions and for
moderators to keep in touch and interact
with respondents.
The benefits of bulletin boards:
z Offer equal opportuni-
ties for respondents, as well as extended
contact with them
z Allow for complete
communication (respondents have suffi-
cient time to ponder their responses)
z Text material is easily
shared among respondents
z Board allows for unlimit-
ed viewers
z Minimise ‘group think’
z Difficult recruits are
avoided.
Weaknesses of bulletin boards:
z A lack of body language
indicators
z Researchers have less
control over respondents’ environments
z All those involved must
have adequate
PC skills

Tapping into the soul of the Black Diamond: which
facets of the Black Diamond are you enabling with your advertising?
By Dee Evans and Andrea Chemaly,
TNS Research Surveys
Dee Evans and Andrea Chemaly explore
whether or not telecommunications brands
are Tapping into the Soul of the Black
Diamond. They examine the future relevance
of these brands amongst this growing middle
class (which is both connected and highly
influential). The study identifies a framework
of needs (based on the emotional connection
to products, brands and the Needscope) and
categorises the Black Diamond according to
their need for fun, independence, power,
knowledge, bonding or affiliation.
Telecommunications brands need to tap into
one of the above to succeed.
Black Diamonds that look for independence
relate to advertising messages that paint a pic-
ture of the consumer as energised, vigorous
and active. They use cell phones to shop
online and listen to MP3s and they make use
of Bluetooth and audio/visual applications.
They spend an average of R440 per month on
their cellphones.
Black Diamonds who identify with power
relate to advertising that portrays their success.
They make use of the 3G, blue tooth and mes-
saging features of their cellphones: they also
make use of cellphone banking and e-mail.
The power of packaging
by Alice Louw and Michelle Kimber,
The Customer Equity Company
Alice Louw and Michelle Kimber took a closer
look at packaging and the way in which we
research its effectiveness.
Packaging serves the obvious function of
containing our favourite brands and differenti-
ating them on the shelf. It can drive our brand
choices. Given the increasing consumer choice
and greater media fragmentation in today’s
world, where fewer opportunities exist for a
brand to be seen, packaging may hold the
potential for a product to stand out from the
crowd. Packaging is seen at the point of pur-
chase and also each time it is used – it there-
fore has a better reach than advertising (it can
promote and reinforce the purchase decision
at the point of purchase repeatedly).
Size is also relevant, as a simple change in
They spend an average of R540
per month on their cellphones.
Diamonds that are drawn to
knowledge relate well to adver-
tising messages that portray
them as organised, informed and
in control. They spend R580 per
month on their cellphones and
have a sophisticated understand-
ing of 3G technology (they will
engage with mobile TV and traffic
reports, for example).
Black Diamonds that wish to bond with others
through their cell phones relate best to advertis-
ing that perpetuates the image of a helpful, sup-
portive and caring persona. They look for con-
nectivity and security and spend an average of
only R320 per month on their cellphones.
Black Diamonds that look for affiliation are
also the biggest spenders, with an average
cellphone expenditure of R610 per month. They
want to connect, especially in the social realm.
They use their cellphones to watch videos and
TV; listen to the radio and surf
the web.
Black diamonds that look for fun regard their
cellphones as a social enabler that connects
them with their friends (and they relate to
advertising that portrays this). They appreciate
modern, funky phones that have leading
the size of your brand’s package may have the
capacity to extend the brand into new target
markets or to overcome cost barriers.
While little is known about why we choose
the brands we buy, researchers have found
evidence of some of the factors that influence
packaging designs:
z Colour, typography,
graphic forms and illustrations all serve as
cues which consumers interpret, in order to
assess both the brand and the product
z It has also been found
that text messages perceived from the right
side of the individual have a better recall:
conversely pictorial elements that are per-
ceived from the leftside have a better recall
z On average, one will
spend between five and seven seconds
reading a label or product packaging.
SAMRA REPORT BACK
technological applications.
They spend an average of
R460 per month on their
cellphones. The overall
average monthly cellphone
expenditure of the Black
Diamond is approximately
R550.
After analysing the adver-
tising campaigns of local
cellphone providers, the
researchers found that Cell
C’s little people campaign creates feelings of
belonging; MTN’s campaigns perpetuate
freedom and funk; Vodacom is both outgoing
and ambitious and Virgin Mobile dares to be
different. It’s interesting that when plotting
the future opportunities for these service
providers they found that Vodacom and Cell C
hold the greatest potential for future success
(Cell C is not the biggest provider in terms of
subscribers but its advertising is obviously
sending the right messages). The study also
predicts that Virgin Mobile will have a low
ranking (below that of MTN, which although
relatively popular now, does not hold much
future potential). With regard to handsets,
Nokia will lose its current market dominance
to brands such as Sony Ericsson, LG, Samsung
and Motorola.
Context plays a major role in purchasing
decisions. Packaging is considered along
with the shopping experience; the usage
experience; the package’s functionality; shelf
visibility and the consumer’s past experiences
with the brand.
Currently packaging research includes a
handful of methods, such as sales tracking,
focus groups, usage tests and shopper
behaviour research. Methods that are less
frequently used include virtual reality
shopping and the use of eye scanning
apparatus. Researchers must examine the pros
and cons of each method and perhaps even
use several methods of research. It is important
to take into consideration that packaging is
often seen as a part of the product and that it
is therefore difficult for customers to separate
the two.
Vol 25 No. 7/8 I 2007 I MarketingMix 4 5
SAMRA REPORT BACK
Cataclysmic or enchanting: the impact of private spaces on
broader social interaction amongst teenagers
By Kudzai Guvi,
TNS Research Surveys
Kudzai Guvi delved into the technologically
connected teen market, after noting an
increase in school violence. The question is:
are teens able to engage and communicate
with each other and what effect is modern
communications technology having on their
communication skills?
Guvi discovered several reasons for teens
gravitating towards modern communications
tools. They allow an anonymity (pseudonyms,
etc) through which teens can create their
own identities and develop their self-esteem.
The invisibility allows them to develop their
courage and experiment with their freedom
of expression as they form their own belief
systems. One should also consider that these
technologies are affordable and that they
grant teens swift mobilisation and a fluid
culture. Perhaps more significantly, the tech-
nology allows them to be connected and to
8-23 year olds: the current, future and influencer market. How to
get into their heads
by Liesl Loubser, HDI
Liesl Loubser presented the findings of HDI’s
research into the youth market, illustrating
just how powerful this market is. Almost 53
per cent of the South African population is
under the age of 23 years. This is a market in
which consumers have established themselves
in their own right. If they are indifferent to
your brand, they won’t buy it. On the other
hand, if they want your brand, they want it
now and they will spend their money on it. If
they don’t have their own money, they will
nag their parents for it (and influence them in
the process).
The youth market can be categorised
into one of three segments:
z 8-13: dependent on par-
ents and pester them to get what they want;
want to be older; seek out fun brands that
provide entertainment
z 14-18: seek independ-
ence from parents; susceptible to peer
pressure; want to be free and seek out
4 6 MarketingMix I Vol 25 No. 7/8 I 2007
take advantage of the rich networks that
they are a part of. As a result they develop
greater tolerance as well as an appreciation
of cultural diversity.
Of course there is also a certain element of
rebellion in their chosen means of communica-
tion and their abbreviated SMS/e-mail language
allows them to defy their parents. Guvi has
noted that to a great extent teens are strad-
dling two worlds or social contexts at the same
time. In the one there are rules and cultural lim-
itations and in the other they are empowered
and develop a fluid cultural identity.
Is cell phone communication diminishing
their respect for their elders?
Guvi found that as a result of their modern
communication habits, teens are lacking
when it comes to interaction skills: they
misinterpret non-verbal cues and are unable
to assess how to respond to someone
without causing offence. Their debating skills
have also diminished and they experience
relationship dissonance (they are unfamiliar
brands which enhance their self image and
empower them
z 19-22: independent (but
value interdependence); are focused on
individual fulfillment; seek out brands that
help them to fulfill their dreams.
What should you know about
the youth market?
z They spend their money
on transport, clothing, DVDs, CDs, fast food,
cell phone airtime, magazines, movies and
even groceries
z They influence their par-
ents’ spending
z The vast majority of
youth own cell phones
z They have serious fears
that include: becoming the victims of
crime; becoming infected with HIV/Aids;
rape; car accidents; not finding a job in the
future and losing their friends
z They think that the best
jobs are: actor; entrepreneur; doctor; brand
with the emotional fluctuations in relation-
ships). They have difficulty expressing their
feelings and lack empathy. They expect
instant gratification and their social promiscu-
ity means that they are less relationship-
committed. Their grammar is deficient and
their social etiquette has also been negatively
impacted.
While one expects this from teens to a cer-
tain extent, the real problem lies in the impact
that this will have on their future in the work-
place. These individuals will need extensive
training in the corporate environment to pro-
vide them with the interaction skills that they
lack. Consequently development expenditures
will increase. There are implications for
researchers too. These teens are active within
a media saturated environment and will
increasingly respond best to integrated ad
campaigns. For this reason the process of
recruiting them for research will best be
achieved virally. Co-creation with brands and
products is the way forward.
manager; lawyer; engineer; accountant; TV
presenter; DJ; musician
z Dubbed Generation C,
the youth are highly connected but also
time compressed (they must multi-task to
juggle family, friends and the modern
lifestyle); they are technologically savvy and
have infinite choice. Brands must keep it
simple and must change, innovate and
remain relevant
z Their social networks are
vast and play a very important role in terms
of providing and sharing information
z As a result of their vast
social networks, youth are very tolerant of
diversity and they relate to brands that
understand this
z They judge brands by
the company they keep (they relate to
brands that provide both status and skills
and they’ve
become disenchanted with marketing and
advertising messages)
z Youth value customis-
 by fulvia becatti CAPE TOWN INTELLIGENCE
Destination Cape Town
The Cape is facing a daunting fistful of
social challenges that include scary crime
stats, murder and violence, child murders and
TIK epidemics. The approach of the 2010
FIFA World Cup however, heralds plenty of
good news. The city of Cape Town is
embracing the necessary development of its
infrastructure and it appears to be making
good use of government funding and the
opportunities at hand to address issues
around city development and spatial planning,
housing development and the provision of
essential services, as well as the relocation of
those townships which are deemed unsafe
for habitation.
By all accounts, FIFA is pleased with the
city’s progress (the city of Cape Town reports
that FIFA President Sepp Blatter visited the
city recently and expressed satisfaction with
the progress that has been made). There is an
upward trend in tourism and over 700 000
people visited SA during the month of
March. Reports from South African Tourism
indicate that the majority are from Africa, the
UK, Germany, France, the USA, China, India,
Australia and Brazil.
According to a report on www.southafrica.
info (4 June 2007), local hospitality groups
are increasingly attracting foreign investors
(such as Leisurecorp, a division of the
Istithmar group, which has purchased the
Paarl Valley Signature Golf Estate & Spa
development in the Western Cape). The
report also states that the InterContinental
Hotel Group (based in England) has entered
into a partnership with Cape Town’s ISO
Leisure group to develop four new hotels
around the country. In March, the Australian
based Stella Group purchased the Protea
Hotels group ( SA’s biggest) in a deal that
cost them over R1.5 billion. The above-
mentioned are to name but a few.
Cape Town is taking broadband to heart.
There are indications that the broadband
network, which was proposed last year,
might well get the go-ahead. The city of
Cape Town website states that a committee
has been put in place to look into the project
4 8 MarketingMix I Vol 25 No. 7/8 I 2007
(which will cost around R400 million and
create an estimated 95 000 jobs, thereby
contributing R4 billion to the local economy).
The city administration will lay 360km of fibre
optic cables (which will initially be used to
link its systems in preparation for 2010 and
later be expanded to include other sites). The
open access network will provide high band-
width connectivity and will work with the
Smart Cape Access Network Project. It is
hoped that this will connect city facilities and
grant citizens greater Internet access.
Media overview
Newspapers: Newspaper circulations
appear stable across the board, with only the
daily tabloids shaking things up.
The Daily Voice has been keeping mum on
its circulation figures and according to editor,
Karl Brophy, it’s because they’re waiting for
them to plateau, so that they can present
advertisers with stable and reliable numbers
(they hope to begin reporting their circulations
to the ABC as early as the end of this year).
Brophy is of the opinion that when the Daily
Voice reports its circulation figures, the
percentage of the average total readership
for dailies will be closer to the 60 per cent
mark (it is currently at around 43 per cent).
Brophy says that while the launch of the
other Cape dailies has robbed sibling
newspapers of circulation, the Daily Voice has
genuinely grown its own readership without
cannibalising the circulation of its sibling
titles. The paper is not online as yet, although
Brophy maintains that the paper would not
benefit from an online platform, since its core
readership is not Internet connected.
“However, we do have an SMS service, where
readers can download or receive content
directly onto their cellphones and this is
hugely successful. The service receives
thousands of SMSes daily,” says Brophy. The
Daily Voice has plans to launch an Afrikaans
edition in the coming months, following the
success of its hybrid bilingual
Afrikaans/English edition. Brophy is confident
that this will be a huge success and that it
Copyright of SA Tourism
Call centre boom
According to CallingtheCape’s fourth
Key Indicator report, the call centre
and PBO&O industry in Cape Town has
continued to expand rapidly. The
number of agents has increased by 41
per cent to 15 899 since the last sur-
vey of this kind. It now employs more
than 22 000 people and has main-
tained a growth rate of 30 per cent
over the last three years. Indications
are that it will grow by a further 37
per cent over the next twelve months.
The offshore aspect of the industry
has also continued to expand rapidly,
which bodes well for this sector. The
growth also suggests that Cape
Town’s labour market is responding
well to the challenge of providing
resources for this growing industry.
Tourism
According to the figures published by
Cape Town Routes Unlimited, the latest
tourism trends (Q2 2006) show that
the total number of international
arrivals to SA were 1 945 693
(representing a growth of 20 per cent
on last year’s figure of 1 616 027). The
average length of stay in SA was eight
nights and the total spend from inter-
national visitors was R10.1 billion.
The Western Cape tourism statistics
reveal that the Q2 2006 international
arrivals to the region number 330 768,
marking a growth of 7.7 per cent on
the Q2 2005 figures. The top 10
sources of international visitors to the
region include: the UK, USA, Germany,
Namibia, Zimbabwe, France,
Netherlands, Australia, Botswana,
Japan, Mozambique, China and
Lesotho. The USA and Germany are
both up by two positions in Q2 2006
from Q2 2005, while Japan is a new
entry on the list.

will give its competitors a run for their
money. In the meanwhile, it appears that
advertisers (especially locally based direct
retailers, cellphone brands and electronic
brands) are getting a good response. “While
this market may not have a huge disposable
income, it is price sensitive and does respond
to advertising. It’s also a high volume market
and is therefore very desirable,” says Brophy.
The Cape Argus has a stable circulation –
currently at about 75 935 (ABC Jan-Mar
2007) – which has prevailed over the last
couple of years. According to Michael Vale,
marketing manager, Independent Cape
Copyright of SA Tourism
Newspapers, the publication’s website is
popular with South African expatriates based
overseas. While the newspaper has no
specific plans in the pipeline, it has recently
relaunched and has seen a very positive
reader response. Advertisers are also receiving
a good response.
Copyright of SA Tourism
The Cape Times has had an increase in its
circulation figures and according to editor,
Tyrone August, the quality of its journalism is
the reason for its success. The paper’s
circulation is approximately 52 044 (ABC
Jan-Mar 2007). “Our growing readership
appears to reflect the need for a strongly
local, hard news title in Cape Town, with
comprehensive national, political and business
coverage, as well as opinion pages which are
insightful and engaging,” says August. It
recently launched a four-page supplement,
Techno Times, which looks at new media
specifically and it is hoped that this will attract
younger readers to the newspaper. Advertisers
are spending more on advertising and
revenues are healthy. “The specialist daily
supplements offer advertisers very specific
markets, which are yielding excellent results.
Advertisers are spending more because they
are getting good responses through the
paper,” says August.
Community Newspapers
Community and free newspapers are faring
well. Independent Cape’s Bolander was
launched in April this year and is classified as
an upmarket community newspaper. Printed
on high quality paper, it boasts a magazine-
like layout and design and reaches only the
upper LSM homes in the Cape. A joint
venture with estate agents provides the paper
with approximately 24 pages of local property
advertising every week. “It’s early days yet but
there are strong indications that we have hit
on a winning model; one that the market
really likes,” says David Hill, editor,
Independent Cape Community Newspapers.
While competition has increased amongst
community publications, they remain the
papers of choice amongst their readers.
Vukani, for example, provides readers with
info that is not covered by the dailies. “While
everyone in the community reads our papers,
we have a special focus on increasing our
youth readership,” says Hill. No doubt the
move to online during the next few months
will help community papers along.
Community magazines: Although
community magazines may be print’s newest
addition, they are proving to be very successful.
Media 24’s MyWeek magazine has
launched an eye-catching website
(www.myweek.co.za), complete with down-
loadable digital formats of the print edition. It
includes personalised TV schedules and
Copyright of SA Tourism
community noticeboards, as well as rates and
zone info for advertisers. The site complements
the print mags, which are available in
23 zones across the country (and of which
600 000 copies are distributed every two
weeks). According to MyWeek Cape editor,
Igna Schneider, since its launch in June the
website has been inundated with postings and
downloads, etc. Advertisers have responded
CAPE TOWN INTELLIGENCE
well, as have readers of the print editions.
Caxton’s GetIt mags have yet to launch
online. According to John Bowles, joint
managing director, Caxton, the group has
plans to launch online soon – it’s a matter of
developing a viable revenue model and
finding a system that works for the magazine
group (GetIt’s community focus is such that
the group’s satellite offices each function as
separate entities). “Our magazines are not
like other community mags: we’re completely
local, as opposed to having a base of national
editorial,” says Bowles. He adds that Caxton
currently has one GetIt edition in the Western
Cape and will launch another two in the
region in September.
Radio
Radmark’s Heart 104.9 has an average day
listenership (Mon- Fri) of 314 000 (RAMS
Feb-May 2007). According to Norman
Gibson, Radmark’s marketing manager, the
station has seen a steady performance over
the past year, with a three per cent increase
in Past 7 Day listenership and a one per cent
growth in terms of Average Day (Mon – Fri)
listenership. “Heart 104.9 maintains its
leadership position in terms of coloured
listenership, LSM 6-10, age 25-49, in the
Cape Town metropole, with an audience of
230 000,” says Gibson. In this category, the
station has the highest levels of time spent
listening, with an average of 18 hours
per week.
Good Hope FM experienced major
challenges about a year ago, when Past 7
Day listenership hit an all-time low. Station
manager Anthony Duke says that the lost
audiences have been recovered over the past
year, and this may have had something to do
with the changes in the music format (in
October 2006, the niche sound of only R&B,
House Hip Hop and Rap was replaced by 80s
Vol 25 No. 7/8 I 2007 I MarketingMix 4 9
CAPE TOWN INTELLIGENCE

and 90s hits, mixed with R&B and Pop hits). Commission acted as the lead agency for the Film Institute’s Project 20/20 for a week of
“The niche was not broad enough to service SA Exposed initiative at the Cannes Lions screenings and workshops, as well as an out-
the core target market of 16-34 year old Festival in France this year. Over the reach programme in Nyanga for film enthusiasts
Cape citizens,” says Duke. The station is past three years this initiative has had who are not able to frequent the city. “The AFI
active online, with blogs and podcasts; the increasing success in promoting Cape Town has shown great interest in South African
station website is accessible via WAP. as one of the top international commercial content, with special arrangements being
production destinations. made for Western Cape and South African
Outdoor The Commission also hosts numerous submissions for this year’s AFI film festival.
It appears that Cape Town’s outdoor media film-related delegations that show an interest They have also shown great interest in
are dealing with the same issues that are in the region’s industry. Recently the CFC host- continuing the South African leg of Project 20/20
affecting the outdoor medium as a whole ed international filmmakers from the American for South African filmmakers,” says Visser. g
(see the outdoor media feature, page 34).
However, stringent restrictions and legislation
make it tougher for outdoor advertisers to Cape Newspapers (ABC Jan-Mar 2007)
put up boards in Cape Town than in other Daily newspapers: Total circulation:
municipal areas across the country. The city Die Burger (Western Cape) 72 310
of Cape Town is enforcing stricter control Cape Argus 75 935
measures to deal with the amount of clutter, Cape Times 52 044
particularly with regard to illegal estate Die Son 80 994
agents’ signage across the Cape Metropole
(according to the city of Cape Town official
Free and community magazines (ABC Jan-Mar 2007)
website). As of 1 July 2007, individual estate
Net Distribution
agents and auctioneers must register with
Cape Home Talk 117 029
the municipality in order to obtain permission
GetIt (Waterfront, City Bowl, Atlantic Seaboard) 25 083
to display property marketing boards and
MyWeek (Constantia/Tokai) 24 947
directional signage on Council property. Each
MyWeek (Durbanville) 20 020
agent will be required to pay an annual
MyWeek (Helderberg) 24 947
registration fee of R551 in addition to a
display fee of R659 per annum, for which the
city will issue a maximum of six permit Free newspapers (ABC Jan-Mar 2007)
stickers per agent for the year (limiting the Net distribution
number of directional signs on council property Plainsman 83 504
to six). These stickers are uniquely numbered People’s Post Mitchell’s Plain 83 340
and must be displayed on signboards. They City Vision (Cape) 80 787
will be replaced at no extra cost if they are Vukani 75 560
faded or damaged. In an attempt to curb Athlone News 55 756
the illegal posting of signs, previous charges Tabletalk 55 029
have been raised and surcharges have been Southern Suburbs Tatler 48 969
introduced for agents who are not registered. Southern Mail 45 460
People’s Post City Edition 38 889
Film Tygerburger Ravensmead/Belhar 33 980
On the film industry front, the Cape Film
Commission reports that the region’s industry RAMS June 2007
has a total turnover of R2.65 billion, of which Station 7 Day Listenership Ave Mon-Fri Listenership
77 per cent has been generated in Cape 567 Cape Talk 113 000 62 000
Town. The city of Cape Town’s film permitting Good Hope FM 586 000 282 000
office estimates an increase of 40 per cent in Heart 104.9 FM 524 000 314 000
production across all sectors over last year’s Total community (W.Cape) 978 000 -
figures. The film industry provides 6058
direct jobs and 2 501 indirect jobs in the
Top 5 Cape community stations (RAMS June 2007)
Western Cape (through catering, hospitality
Station Past 7 Day Listenership
and equipment hiring, to name a few). It is
Radio Tygerberg 287 000
estimated that this figure will rise to 12 445
Zibonele Community Radio 207 000
direct full-year job equivalents by 2010.
Radio 786/ Voice of the Cape 141 000
According to Mark Visser, media liaison
Radio CCFM 126 000
officer, Cape Film Commission (CFC), the
Bush Radio 89.5 Fm 87 000

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

 7 DAY [B]ITCH

Chantal Girard, business

director, Switch Through-
the-Line advertising

25/06/07 displayed in his office. No easy feat, as I cannot find enough frames in
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… one shop. Thank God I wore sensible shoes.
‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Off’ Sigh. I can only delay get-
ting up for so long. 28/06/07
Mondays at Switch always start with a status meeting – can’t be Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble…
late. After my panic to get to work on time, I discover that it’s been ‘Snooze’ Bzzzz!!! Fumble… Fumble… ‘Off’
rescheduled to this afternoon, as we have to present two (genius!) TV Had to colour pass a direct mailer job at the printers this morning.
commercials to a client this morning. Good grief, you need to pack a picnic basket just to get there.
Watching George, our creative director, present our concepts fills me Everything looks great and it’s signed off. After that, I go to a pre-pro-
with pride. My team ROCKS. I work with such brilliant people. George duction meeting for a photo shoot we’re doing for a client on Monday.
is someone you just have to experience – a genius with a heart of gold. The photographer, stylist, models, production, creatives and the client
Johan is one of the greatest MDs of all time – he laughs easily and attend. I have to say that there are some rather fabulous clothes there.
rarely growls. As for Simon, our art director – his brilliant concepts
astound me. Marco, our designer, can make anything look beautiful. 29/06/07
Lauren, our new copywriter, can create a concept from a paper bag, Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble…
while Kirsten, our other copywriter, knows exactly what to say and how ‘Snooze’ Bzzzz!!! Goodbye ‘Snooze’ and Hello Friday.
to say it. I am officially surrounded by talent. Today we have a farewell – our traffic lady is leaving. Switch
The rest of my day is spent doing creative and production briefs for Through-the-Line is taking her/us out for lunch. We all go except for
a client who needs new marketing collateral – I can’t wait to see what George and Johan, who are on a course (golf… is there any other
the guys are going to do with this one. kind?). Lunch starts at 1pm with the team and… doesn’t really end.
Go big or go home!
26/06/07
Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… 30/06/07
‘Snooze’ Bzzzz!!! Fumble… Fumble… So the daily ritual continues. My BZZZZ!! Open one eye. Who was the genius who said ‘Go big or go
bed is my happy place. home?!’
The day starts with a distress call from a client who needs to do SMS to Johan: Jo… my head…
some damage control. The entire morning is spent holed up in the Reply from Johan: Tee hee. We can do the job bags
boardroom with coffee, developing a PR and advertising strategy. The during the week.
afternoon is spent in a VERY long status meeting with a client. SMS to Johan: Job bags? What’s a job bag?
Reply from Johan: A toasted sarmi and a pink milkshake
27/06/07 will sort you out.
Bzzzz!!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble… SMS to Johan: (It all becomes slightly fuzzy here. Jo,
‘Snooze’ Bzzzz!!! Fumble… Fumble… Holy cow! Someone close the did I ever SMS you back?)
fridge door! Must stay in bed… Forever.
The entire day is spent chasing briefs, checking material, submitting 01/07/07
material, chasing briefs, checking material, submitting material… This morning I wake up with my personality and both eyes open.
In between, I hunt down a client who hasn’t uploaded his new web-
site. He very kindly returns my call to say that he hasn’t done so because 02/07/07
he hasn’t paid us for it yet. (Do people like this still exist?) I convince him Bzzzz!!! Fumble… Fumble… ‘Snooze’ Bzzzz!!! Fumble… Fumble…
to load it. The whole campaign is driving customers to the site and he ‘Snooze’ Bzzzz!! Fumble… Fumble…
needs a hot site to generate sales. I also zip out to scour some shops for Pillow over my head… take a deep breath.
picture frames for a client who wants all the adverts we’ve done for him Here we go again…

5 4 MarketingMix I Vol 25 No. 7/8 I 2007

How to boost your marketing ROI in Africa, that’s the forever challenge. Marketing Mix has shortlisted the
key issues and we have invited very successful African marketers –just look at the names below – to talk
about their experiences and to answer your questions. Effective Marketing in Africa is a morning workshop in
Johannesburg on 11 September, 2007.

Programme
Africa in Perspective 08h00-08h45
Santie Botha, Group Marketing Director of MTN, talks about marketing in African markets.

Africa in Context 08h45-09h30

Doing business on the African continent has numerous challenges, not least of which is the
availibility of market information that is available. The data that is available can sometimes be
less than reliable. If you know what you’re dealing with, however, there are always ways to decide
whether or not a market is worth investing in or doing business in. Here are some tips on what to
work with and how to make the right choices, with an insight into some of the practices
that Standard Bank uses to measure business potential – presented by David Wingfield, Marketing
Director of Standard Bank Africa.

The Ghana Experience 09h30–10h15

George Andah the CMO of MTN Ghana, talks about his experiences in launching MTN in Ghana –
the critical success factors.

CNBC Africa Experience 10h45–11h25

How an international broadcasting brand developed effective partner relationships, recognising
individual country characteristics and factored in appropriate distribution models – Peter Ndoro,
Director, CNBC Africa.

African People Passions 11h25-12h05

It’s football and music, it’s a very young market, they love celebrities, and they want the
chance to succeed. Find out how viral, experiential and sponsorships are influencing the young
generations in Africa. Some great case studies and advice from Ian Riley, Director of Sports Inc

African Media Landscape 12h05-12h45

What works best and where? Radio vs TV vs outdoor and mobile. The roles of sponsorships,
viral experiential marketing and how to allocate the budget – Sharon Penhallrick, General
Manager of Telmar

Delegate fee: early bird R1750 plus VAT, 3 or more bookings, R1450 plus VAT. Bookings by
31 August.

Enquiries or Registrations
Contact Robyn on (011) 234 7008 or robyna@systems.co.za
by fayeeza kathree-setiloane LAW MIX
Print media opposes revised films
and publications amendment bill
The National Assembly has adopted the
revised version of the Films and Publications
Amendment Bill, which seeks to amend the
current Films and Publications Act in order to
regulate the creation, production, possession
and distribution of films, games and certain
publications, for the purpose of, among
others, protecting children from exposure to
disturbing and harmful materials, as well as
from premature exposure to adult experiences.
It also seeks to make the use of children in
child pornography punishable.
The Bill, as it was originally proposed by the
Parliamentary Portfolio Committee on Home
Affairs, sparked an outcry from the print
media in particular, as it sought to remove the
exemptions which were previously granted, in
terms of which all members of the Newspaper
Association of South Africa (NASA) were
exempt from applying for the classification of
content prior to the publication thereof.
The Bill originally sought to require all
newspapers, magazines and online publica-
tions to submit to the Films and Publications
Board (for examination and classification)
material that contained: descriptions or
representations of sexual conduct and conduct
which amounts to propaganda for war, the
incitement to violence or the advocacy of
hatred. These proposed classification
requirements were strongly opposed as they
constituted pre-censorship – a practice that
has been rejected by South Africa’s democratic
society as being incompatible with the press
and media’s right to freedom of expression
under the Constitution.
As a result of the barrage of representations
from the print media on the unconstitutionality
of the proposed classification requirements,
the Parliamentary Portfolio Committee on
Home Affairs had little choice but to amend
the Bill in line with what had been originally
proposed. Its efforts at revising the Bill have
however not gone far enough, as the threat
of pre-publication censorship still exists.
In seeking to reinstate the exemptions
previously granted to members of NASA,
the revised Bill fails to recognise that there
are approximately 500 print and online
5 6 MarketingMix I Vol 25 No. 7/8 I 2007
“
Whilst the purpose of
the Bill is ostensibly to
curb child pornography,
it will also have the
effect of censoring
political speech, as its
application will extend
to constitutionally
”
protected speech.
publications that are not members of NASA.
Hence publishers of all newspapers, magazines
and online publications (excepting those that
are members of NASA) – which create, produce,
publish or advertise any publication that
contains: visual presentations, descriptions or
representations of sexual conduct; conduct
that amounts to propaganda for war; the
incitement of violence or the advocacy of
hatred based on any identifiable group
characteristic, that constitutes the incitement
to cause harm – would now be required to
submit such a publication to the Films and
Publications Board for examination and
classification, before it could be distributed;
exhibited; offered or advertised for distribution
or exhibition.
The proposed classification requirements
are constitutionally overbroad and vague. As a
consequence they will restrict the media from
reporting on news items that deal with:
threats or declarations of war; violent
demonstrations; incidents of unrest and race
discrimination; domestic violence; child abuse;
rape; indecent assault and other related
activities. The reference in the Bill to ‘the
advocacy of hatred based on identifiable
group characteristics’ is also wider than the
wording in the Constitution, which only
excludes protection of expression which
constitutes ‘advocacy of hatred that is based
on race, ethnicity, gender or religion and that
constitutes incitement to cause harm.’ By
extending the scope of hate speech to
‘advocacy based on any identifiable group
that constitutes incitement to cause harm,’
the Bill extends its reach to constitutionally
protected speech. The Bill will also impose a
harsh sanction, in the form of either a fine or
imprisonment, for failure to comply with the
proposed classification requirements.
In its current form, the Bill is therefore only
fractionally better than the Bill as it was
originally proposed by the Parliamentary
Portfolio Committee on Home Affairs, as the
danger of pre-publication censorship still
remains. Whilst the purpose of the Bill is osten-
sibly to curb child pornography, it will also have
the effect of censoring political speech, as its
application will extend to constitutionally protected
speech. The Bill therefore remains constitutionally
flawed and is likely to lead to many legal
battles between media and government. g
Fayeeza Kathree-Setiloane
director, Werksmans Media and
Communications (Pty) Ltd
(011) 535 8000
fkathree@werksmans.com