July 2020 – Is there a place for high-budget TV ads – the kind where crowds of hundreds clink glasses as they dance together in a small space? Or is the future of marketing looking a lot more low key?
Connection, connection, connection.
If there is anything that emerged out of the coronavirus pandemic, it’s the insight that humans crave connection above all else. It’s what makes them willing to risk their health, and that of others, in their pursuit of activities and pastimes that make them feel that they are part of a greater whole. That’s why the brands that have either reflected or sought to create connection are the ones that have done well during a period that’s been exceptionally trying for brands.
Inevitably, these trials have been passed on to their marketers. According to a Marketweek survey of CMOs, 65% of marketers are expecting to see their annual marketing budgets cut, and 86% predict that their marketing goals will be that much harder to achieve.
Digital marketers, on the other hand, must be enjoying a secret smile, if the survey respondents’ belief that SEO has become more important than ever is anything to go by. Indeed, since most consumers have little option but to bond with their laptops, social media is enjoying a boom, and many brands are taking advantage of this new captive market. There’s a caveat, however: consumers don’t want to be reminded of how things were. According to Forbes.com, they’re more likely to respond to an ad that reflects our current reality, no matter how second-rate that reality is. It comes down to the principle of authenticity: we can’t pretend that life is glamourous when most of us are sitting in our tracksuits – any brand that ignores this is tone-deaf.
On the other hand, brands that point out that this is something we’re all affected by may well win. Forbes.com singles out Nike’s Covid-19 ‘Play inside, play for the world’ campaign as one which does this especially well. From a local perspective, who can forget the SA Tourism’s appeal to put the brakes on travel now, so that we can all travel later? If such a message is backed by an action to ease the collective suffering (like the offer of a payment holiday or donation to a cause), so much the better – but, again, only if it is authentic and transparent.
Since marketing budgets are a lot more slender than they were at the beginning of the year, marketers have to do a lot more with a lot less. That’s nothing new – in essence, they’ve been trying to make their spend go further and further since the recession of 2008 – but this time around, the need to create a connection is so much greater. The accent is on quality content that can add value to consumers’ lives: overseas, brands have found a way to interact with their consumers through interactive classes, videos and webinars on platforms like Zoom or IGLive, for example.
The ultimate takeout? The way we buy and spend has changed, probably forever. Of course we’ll reach a stage where consumers have greater freedom, but by then, online habits may have become entrenched. As always, marketers who have missed out on an opportunity to entrench their brands due to short-sighted cost-cutting will feel the brunt when spending returns to normal; those that have adjusted their strategies – by creating relatable, relevant content and serving it on a platform that speaks to consumers’ needs for convenience and efficiency – may hang on to their niche. It’s nothing new – we simply have better data at our disposal to help us choose where to feature that content, and how to execute it.
BRYAN SUN, managing director of Nielsen Africa, gives insights into the new African consumer.
The COVID-19 pandemic has given rise to a new kind of African consumer who is already displaying fundamental shifts in consumption and purchase behaviour driven by factors such as heightened health awareness, a focus on quality and safety, a renewed desire to stay at home and a tight wallet squeeze.
A recent Nielsen industry webinar, Navigating the New Normal, discussed the realities and effects of this rapidly evolving outlook. Nielsen Africa outlined the consumer evolution since the onset of the pandemic and the fact that crisis-buying patterns have accelerated the adoption of permanent behaviour change.
As the prospect of looming lockdowns first hit, consumers realised they needed to stock up which saw a spike in store visits, stockpiling of shelf staples and growing basket sizes. However, as restricted living became more commonplace, there was a change in behaviour with consumers seeking out products without putting their health at risk.
We have therefore seen growth in online shopping, declining store visits and a rise in out of stocks. Supply chain challenges have also driven consumers to be less price sensitive on high demand packaged goods or those that guarantee hygiene standards.
The expectation is that once quarantines lift and consumers return to ‘business as usual’ they will continue to operate with a renewed consciousness about health, which will remain for a long time. There will also be shifts in the way consumers perceive products with the increased importance of safety and efficacy claims, and a willingness to spend more on hygiene needs and healthy foods.
Nielsen’s recent COVID-19 syndicated online survey, conducted in over 70 countries across the globe, produced interesting comparative data and insights for Sub-Saharan Africa (Kenya, Nigeria and South Africa) as compared to the rest of the world.
75% of SSA consumers are now more concerned about their families versus the global average of 48%. In addition,
83% said they were following information multiple times a day – significantly higher than the global average of 75%.
51% of SSA consumers said they were cooking more at home versus 39% globally, and significantly more said they worked more at home versus the global average.
46% SSA consumers said they are visiting malls less often versus the global average of 32%.
Despite perceptions that Africa lags behind in terms of online behaviour, it has in fact seen incredible behaviour changes with major increases in the use of social networking, online reading, listening to music and video streaming.
As countries move from restricted living to precautionary living, Nielsen has also created an in-depth view of current and future SSA consumer mindset and purchase patterns based on learnings from other markets:
Heightened health awareness will drive consumers to be less price sensitive on high demand packaged goods or those that guarantee hygiene standards as food safety becomes paramount to consumers.
The renewed desire to stay at home and the preparation of home meals might require brand extensions and a need to address declining store visits, growth in online and proximity shopping.
As consumers are impacted by less income and smaller purchasing wallets, value for money offerings and more aggressive promotions – over that of just in-store promotions – are needed.
eCommerce growth has reached double digits in many countries with Italy at 82%, China 50%, and Korea 30% where older shoppers are trying eCommerce for the first time. Technology catalysts are driving behavioural change and will penetrate the market despite previous scepticism around this platform.
Looking to the future, the path to recovery means retailers must urgently look at factors such as pricing mechanisms and brand relationships in order to maintain and strengthen consumer trust in their brand.
Successful retail regeneration across the continent, following the impact of COVID-19 on the African consumer and retail landscape, will rely on an agile and innovative response that sets the groundwork for a future unlike any we have ever known.
BIO: Bryan Sun is managing director of Nielsen Africa. Nielsen Holdings is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge.
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Current disruptions have brought to light the fragility of our supply chains, says MARZIA STORPIOLI. And the volatility is set to continue for quite some time. What to do?
There’s not doubt volatility, turbulence and uncertainty will continue, and probably increase in the decades ahead, and the ‘business as usual mentality’ will need to be replaced with business seeking stability in the face of disruption.
Current disruptions have brought to light the fragility of our supply chains. For the past 20 years, the focus has been on cutting costs along each link in the chain. Unfortunately, this has also expunged any flexibility or resilience (the ability to withstand shocks to the system) in supply chains.
The question now is, how do we retain cost efficiency but reintroduce flexibility and elasticity into supply chains?
Supply chain suppleness – revisited
Just In Time (JIT) has been seen as the model of supply chain superiority, but this is no longer the case. The disruption of supply chains by the coronavirus pandemic showed that this method of inventory control, which brings material into the production process, warehouse or customer just in time to be used, has its limitations.
Some elements of JIT are good and should be translated into the reshaping of the new models for supply chains, but many of the ‘credos’ of JIT will need to be redesigned and new thinking brought into supply chain management.
One of its weaknesses (and other similar methodologies) was that the environmental impact of JIT changes to supply chains was not considered or measured. This is no longer feasible. Consumers are no longer willing to accept ‘due to internal considerations….’ as an excuse for out-of-stock situations.
What will the supply chain of the future look like?
Firstly, the supplier base must be widened to include more suppliers for key/critical items. There should be reduced focus on cost reduction and a move to find a balance between acceptable costs and acceptable inventory levels. This should be done –with customer in mind, rather than the company’s bottom line only.
There should be greater visibility and sharing of information between and among supply chain members e.g. greater trust less ‘protectionism’.
We need to rethink strategies on essential goods and services. For example: chemicals used in sanitiser products – should they be imported because the supplier is cheaper, or should we manufacture the lion’s share in South Africa to reduce reliance on globalised sources?
More joint ventures are required to leverage off each other’s strengths. In other words, we need less outsourcing and more capacity sharing.
A move to on-shoring production of critical items (items critical to national security, health, economic prosperity) is needed.
For example, Sasol has always been able to produce chemicals – world class – why shouldn’t they be incentivised to develop their production to encompass chemicals currently being imported from China (due to some economic cooperation agreement between South Africa and China)?
The South African textile industry has a track record of producing high quality material. Why are we destroying that capacity by importing textile products from China?
Again, South Africa is capable of producing medical quality personal protection equipment. We shouldn’t need to import PPE from abroad.
A trend is developing where businesses collaborate with their competitors, leveraging each other’s unique strengths, buffering their weaknesses and moving closer to becoming ‘demand chains’. This means focusing on customers (outward looking) rather than focusing on internal business efficiencies (inward looking).
There must be a change in relationships with suppliers. It is no longer rational to keep adversarial relationships going, and more important to work on collaborative relationships – the ‘we are in this together’ mindset, as opposed to the traditional ‘beat suppliers down to the lowest price without a thought for their sustainability’.
And that’s just to start with…
BIO: Marzia Storpioli is Lecturer: Supply Chain Management and Programme manager: BCom International Supply Chain Management at the IMM Graduate School.
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There’s no doubt the 2020 sports calendar has been upset by the turbulence caused by the coronavirus pandemic. MISHA SHER has advice for brands on how to handle it.
It’s safe to say that the sports marketing industry is living through unprecedented times. Never before has sport come to a complete halt across the world (with a few minor exceptions like Belarus), depriving billions of people of a much-loved emotional outlet and daily passion point.
Brands, which were predicted to spend £37.5 billion on sports sponsorship in 2020, are facing some tough choices. What do they do now that nearly every event has been postponed or suspended? How can they continue to engage passionate sports audiences?
Questions have been raised about the merits of ‘hibernation’ style strategies – freezing all activity in order to protect budgets and wait out the storm. Such strategies offer a false sense of security and threaten to undermine brands’ hard-earned relationships with sports fans. Instead, a new playbook is required that offers brands alternative strategies for how to continue leveraging those relationships and sustain growth.
In what is undoubtedly a very challenging situation, it’s crucial that brands look at ways in which they can provide value to fans. Sponsorship is at its most powerful when it enhances the fan experience – and it’s more important than ever for brands to do that now.
Fully explore the potential of gaming
The biggest winner in the current situation has been the gaming industry. Even before the crisis, it was growing faster than any sport and now with everyone spending more time at home, it’s no surprise that live gaming is booming. A recent report by Captify shows that with mass live sports cancellations, consumers are looking for their sports fix elsewhere. Consumer interest for sports games saw a 1054% search uplift since 1 January 2020 with the top indexing audience being sports fans.
Clearly, there is an audience that craves sport and sees gaming as an alternative.
Brands already associated with competitions that are suspended are showing agility and hosting esports versions. And the numbers have not disappointed. Santander, the title sponsor of La Liga, headlined a FIFA 20 tournament comprising players from each club team. The Santander Challenge, livestreamed on Twitch, drew 1 million viewers and gave fans a more intimate and personal experience with their favourite players than they are used to. Nascar, NFL, NBA, F1 and others have started their own versions, in many cases featuring their current league sponsors. Admittedly, these virtual tournaments may not deliver the same scale of audience exposure brands are used to, but they allow sponsors to continue engaging with fans, staying top of mind and demonstrating a commitment to the sports that have helped them grow their businesses.
For others, there are opportunities to explore the possibilities created by in-game advertising offered programmatically by platforms such as Anzu.
Unlock the potential of sports talent and use it for good
In a crisis that has underlined the critical importance of interpersonal relationships to all of us, talent and influencer marketing is demonstrating its potential as a powerful media channel. There is an opportunity to leverage talent unlike ever before. Brands should be looking at ways in which they can authentically engage sports talent to provide fans with the access and entertainment that they crave.
A great example of this is Red Bull, which actively leverages extreme sports events to connect with their consumers. To continue engaging with their audience, Red Bull launched a new 10-part What Does It Take podcast series hosted by Matthias Dandois. The BMX star and eight-time Flatland World Champion interviews fellow Red Bull athletes and extreme sports stars from around the world, exploring not only what it takes to get to the top, but also how to stay there. Red Bull then uses a mix of its own and its talents’ social channels to distribute this content to fans.
As an Olympic Partner (TOP), Visa is taking a slightly different approach. The sponsor has quickly created a content series with its athletes called Do Your Part Like An Olympian showing them performing feats of sporting prowess, juxtaposed with easy COVID-19 safety measures like handwashing. It is engaging and informative, and contributes to vital communication efforts to encourage people to take the right steps to tackle the coronavirus crisis. Visa was one of the first major brands to confirm that it would stick with its Olympic partnership and stand by its athletes. Visa is now being seen as a socially responsible brand, utilising its sponsorship assets for the greater good. It will undoubtedly generate consumer goodwill.
Drive engagement by tapping fans’ creativity
If there is one thing we know about sports fans, it is that they want to be participants in the sports experience, not just spectators. For brands, it’s therefore key to engage people in a way that genuinely creates utility, rather than in an attempt to sell more product. GoPro have done just that by launching their #HomePro challenge. Knowing that people are likely to be suffering from cabin fever, the brand created a competition encouraging people to share whatever weird and wonderful activities they’re getting up to at home for a chance to win their latest performance camera. The beauty of the competition is accessibility. You don’t need to own a GoPro – footage can be recorded and shared from any device. The campaign effectively taps into emotions that people are likely to be feeling and offers them a creative outlet within the confines of critical social distancing measures.
Dick’s Sporting Goods have done something similar, launching the #LongLiveSport campaign across its social channels encouraging everyone to share how they’re playing their sport at home. The campaign is true to the brand and celebrates the creativity of sports fans and athletes.
Other brands can and should be asking themselves how they can harness the creative potential of their audiences in a way that helps build brand affinity.
Amid all the uncertainty, it is more important than ever to spend some time thinking about the future. Right now, sport seems like one of the most inconsequential things to worry about. But things will eventually return to normal – albeit perhaps a new normal – when the crisis has passed. Sport will return in a major way. When it does, the world will see a celebration of humanity and connection.
There is a chance that, at least initially, sport will resume in empty stadiums and arenas. If so, sponsors will have an opportunity to play a major part in the way people access and experience sports events. We’ve seen Heineken shrewdly demonstrate how to leverage such an opportunity when it paid for the rugby world cup final to be shown on South Africa’s state broadcaster so that people could watch on terrestrial TV rather than shielding it behind a paywall. It happened in what now feels like a different time, but nevertheless demonstrated how major event sponsors can transform the sports experience for millions of fans. Now is the time for brand sponsors to start thinking about the role they want to play when sport eventually resumes.
This is an unprecedented time, but brands must see this as a chance to play a bigger role in consumers’ lives, rather than a time to scale back. How they react to this crisis could dictate their relationship with consumers for years to come.
This story is published with the permission of WPP.
BIO: Misha Sher is Vice President of Sport And Entertainment at Mediacom. Mediacom Sport & Entertainment is part of The WPP Sports Practice, the global entry point to all of WPPs specialist sports marketing capabilities. Find out more about how The Practice brings together the best talent from across WPP to help brands, rights owners and events hosts.
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In a wide ranging interview with sports journalist, LUKE ALFRED, the CEO of BMi Sport and founding member and CEO of SS Network, David Sidenberg, talks about the impact of coronavirus on sport, rights holders, broadcasters and sponsorship. The silver lining, he says, is that sport has a blank page that could be filled with the ‘incredible learnings’ about sports fans and their media consumption habits.
The coronavirus pandemic has raised a variety of threats (and questions) in the sports industry. These relate to live sport, the broadcast of live sport and the relationship between rights holders and broadcasters. But they also relate to sponsorship, legal issues, public health issues and the role of government going forward.
Q: How will the news of ABSA pulling out of the Premier League sponsorship impact on the PSL and sport sponsorship?
A: While much has been made of ABSA’s announcement that they will not be exercising their contractual right to further extend the PSL partnership, for those in the know, this should however come as no surprise. In fact news of ABSA’s eminent departure pre-dates COVID-19 and was first publicly voiced towards the end of last year.
Similarly, any reports of the ‘death’ of the PSL – as once famously stated by Mark Twain – are greatly exaggerated.
In many ways, sport mirrors the broader economic climate and sponsorship by association is no exception. It’s of course true that traditional sport, like all business, is under more pressure than ever before. But whether we are speaking of the PSL specifically, or sport and the sponsorship market in general, it’s simply too early to pronounce on the long term impacts.
Yes, there will definitely be some casualties, a few market corrections and hopefully even some new brainchilds, but there is no doubt both the PSL and sport in general will bounce back. The underlying value is too great to simply be discarded.
For me, the more pressing question is, despite the challenges, how can we take advantage of this moment? I cannot remember a time in all my years in this industry where we have ever been able to push the pause button like now. So before we get going again and the opportunity is lost, now is our chance. We have a unique opportunity to review, rethink and where required, restructure everything – a period, if you like, of almost forced collaboration, where so much can be improved upon – so let’s not waste it.
Q: The sports industry in South Africa seems remarkably free of rancour so far during lockdown, i.e. no spats between rights holders and federations, no pushback from sponsors who aren’t seeing their product on television etc. Fair comment?
A: Yes, I believe this is currently a fairly accurate assessment. Ironically, our federations are for once in a more fortunate situation than many of their international counterparts because loss of match day revenue here is minimal. For most major sports bodies, leagues, teams, etc. they generally have four sources of revenue: Broadcast, Sponsorship, Match Day (ticketing and hospitality) and Merchandising and Licensing.
While broadcast and sponsorship are not surprisingly the biggest sources of revenue worldwide, the latter two can contribute up to say 30-40% in major markets. By comparison in South Africa, broadcast and sponsorship revenues (particularly for the big three) are often responsible for more than 85% of income.
Additionally, because there’s no play, there’s no travel, no accommodation, no opening up of stadiums, lights, security etc. and that can translate into short-term savings. Some federations (like SA Rugby) have reduced player salaries. Also, unlike Europe, for example, where Canal+, BeIN Sport and now others refused almost immediately to pay their final broadcast rights fee instalments to the associated leagues (LFP, etc.), our broadcaster(s) (SuperSport) has not yet blinked.
Most sponsors I have spoken with are looking for solutions and compromise – wait things out if you like, until there is more certainty – noting that by nature sponsorship is a long term partnership – so rash decisions to save a quick buck (no matter how necessary these budgets may soon become) could have significant strategic and public relations repercussions downstream.
Q: The lockdown happens when the sports industry in South Africa is already challenged?
A: Even prior to the COVID-19 crisis, we were asked by many of our clients to consider the impact on sponsorship media return on investment ROI arising from the lack of coverage this season/year by the SABC. Concerns had been further heightened by speculation that the ICASA Sports Broadcasting draft regulations will be pushed through in September – despite the significant challenges exposed during the hearings in early 2019.
The financial difficulties faced by the SABC are not new – but the impact this is beginning to have on sport and the sponsorship industry reached an unprecedented level when the 2019/2020 PSL season launched under a self-imposed blackout by the national broadcaster. Other major events of national importance including the 2019 ICC Cricket World Cup, Fifa Women’s World Cup, INF Netball World Cup, and IRB Rugby World Cup, which all featured South African teams received little or no coverage by the National Broadcaster.
And now – all bets – and arguably all live sport – are off for the time being
Q: Do you see the landscape plunging into complete crisis?
A: This really depends on whether or not SuperSport blinks – i.e. begins holding back on broadcast rights fees – and whether or not rights holders are prepared to find solutions for their sponsors and/or arrange for compromise payment structures. If, for example, SuperSport freezes all future payments to, say, the PSL until play resumes (an unlikely scenario), or, worse, pulls a Sky/BT sport and demand a refund, the house of cards could fall quickly.
Broadcasters have come up with different responses to the crisis of no live sport. For example: Sky allows customers to pause subscriptions during the pandemic; Canal+ makes premium channel free to view in response to Coronavirus; DStv has opened news channels for free, even to non-subscribers, and, in general, broadcasters are desperately trying to find ‘new’ archive content to fill the void left by the lack of live sport.
But broadcasters are faced with a two-sided coin: if they freeze subscriptions, the revenues required to buy or retain content dries up, but if they don’t, they risk retaining their premium subscribers who are receiving little extra benefit for the price. What’s really required is creative solutions and partnership with all stakeholders, especially with the fans in mind.
Q: Is there any upside to no live sport?
A: Despite the pessimism, there are upsides to the current moment. For example: The situation will create a buyer’s market for sponsorship rights. There will be huge value in the market for brands brave enough to commit budget rather than wait until a return to normality. Secondly, there is an opportunity for brands to support the sporting organisations/properties that will be most affected financially by prolonged disruption to the calendar. Thirdly, this is a unique opportunity for esport to shine – and reveal how powerful a platform this is to not only reach audiences previously difficult to find…but also how it can complement sport and sponsorship marketing efforts.
Finally, the period may allow time to connect with the most valuable asset for any rights-holder: the fan. It is time to build up a new view based on so-called ownership of data, engagement, and understanding the fan’s needs. As we near the end of the first phase relationship between sport and social media, largely based on huge over-claims of reach and relevance, we now need to take a closer look for evidence of deep fan engagement.
Q: How do you see the second half of the year sponsorship-wise?
A: There is evidence that suggests in times of trouble with reduced marketing spend from competitors, the opportunity to cut through the clutter is enhanced. These times require bold leadership and informed risk taking. To do nothing and wait for life to return to normal risks losing your opportunity to turn fan pain into engagement, appreciation and loyalty.
It’s equally important not to compromise long-term relationships or reputation by reacting negatively. In short, it’s a case of being practical and level-headed about managing the situation, but equally about being incredibly open towards finding the best fix to fill the void for all stakeholders involved. On the plus side – the crisis may lead to a better understanding of the interdependence of interests within the sports industry. We’re going to find out not just how resilient that ecosystem is, but how collaborative it needs to be for everyone to get through this.
If there is a silver lining, I believe we will come out of this period with incredible learnings around sports fans and their media consumption habits.
So maybe all of this, right now, is sport’s blank page.
BIO: David Sidenberg is one of the sponsorship industry’s most influential thought leaders and alongside his company BMI Sport Info, are credited for the lead role they have played in quantifying the impact sports marketing budgets contribute to their clients bottom line results.
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The recent outbreak of the Covid 19 pandemic has highlighted the importance of Supply Chain Management (SCM), as a sudden increase in demand for certain products and a complete standstill in demand for others has left many suppliers reeling. However the man in the street can still find it difficult to distinguishing the features that contrast a value chain, a supply chain and finally supply chain management (SCM).. Although there is a strong relation amongst these three activities, there are key differences that make them stand apart from one another.
Essentially, a value chain is a set of activities that a firm performs in order to deliver need-satisfying products or services to a defined market or markets. It is also known as a high-level model of how businesses receive inputs and then processes such inputs via the conversion process (operations) into finished goods and services. This is achieved by adding value to the inputs in such a way that the morphed final offerings will hopefully satiate varying customer needs, better than the competitor. The ultimate objectives of the value chain are the appeasement of both customer needs and wants (in the form of superior goods and services), and, as importantly, revenue and profits for the enterprise.
Created by Michael Porter in 1985, the value chain consists of primary and support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The key goal of these activities is to create value that exceeds the cost of performing the activity, thereby generating higher organisational sales and profits. Support activities on the other hand comprise procurement, human resources, finance, technology development, and the firm’s infrastructure. These ancillary activities within Porter’s Value Chain, assist the primary activities by forming the foundation of the organization on which the primary activities operate. A support activity such as financial management for example is of great importance for primary activities as without finance, these activities cannot be performed. Likewise, without effective Human Resources Management, the organisation will not have the requisite human capital to produce the required goods and services, market them and finally distribute them to…
The right organisation.
At the right time they are need.
To the right person who will be using the goods; and
At the right price so that their delivery to the targeted end-customer via fellow supply partners will enjoy the value that the offering has been designed to deliver.
The strength that underpins Porter’s Value Chain Analysis is its approach, as it focuses on the customers as the central theme of the business rather than on departments or people. Being a system approach to operating a business, the system links other systems, people, departments and activities to one another and demonstrates how the approach impacts on value creation, costs and profits. Consequently, the analysis makes a clear picture of where the sources of value and loss of revenue can be found in the organisation.
The supply chain is the network of individuals, firms, technology and resources that are involved in the creation and distribution of offerings from the source of the inputs (raw materials, components and so on) via the distribution network to the final consumer. The main challenges of the supply chain, or better still the supply network, are the ever-changing needs of the consumer, its complexity (especially international supply chains), supply risk and as importantly supplier risk. The recent outbreak of the Covid 19 pandemic has underscored the importance of a smooth-running and seamless supply network as without it operating effective and efficiently, more people would have been struck down by the virus. This would have undoubtedly increased the morbidity and mortality rate throughout the world as well as the negative impact the outbreak has had on the global economy.
Supply chain management (SCM) is about creating value. Early efforts at managing supply chains often focused on cost reduction in order to make the chain leaner. Unfortunately, these efforts sometimes reduced the ability to create value thereby negating the key purpose of the supply chain. In essence, there is more to creating value through effective SCM than simply wrestling costs out of supply chain’s primary or support activities. Being an agile supply chain in a modern context, is probably more important than wrangling lower costs as it translates into quicker market entry and better customer service.
There should be value-creating activities that reinforce supply-partner and customer centrism. Because there can be many supply partners in the equation, managing supply chains requires a balancing act among competing and oftentimes self-serving interests. To illustrate this, note the following example. The seller of raw materials (supply chain inputs) would naturally like to enjoy the highest possible price he can muster from the manufacturer in order to maximise profits. The manufacturer on the other hand might probably demand to procure the goods at the lowest possible cost in order to be competitive in the marketplace after he has incurred the time and cost to produce the goods. It is these conflicting requirements that require supply partners to be flexible so that these opposing needs may be realize.
The above is underpinned by the advent of the recent Covid 19 virus and how the interest of supply partners can differ, even in a life-threatening emergency such as the pandemic. In the USA, where the outbreak has reached mammoth proportion, Federal and local governments competed for life-saving Personal Protective Equipment (PPE) hoping to procure such goods at the lowest possible prices. However, because of supply and demand issues, and pure unadulterated opportunism, sellers put up the prices of their PPE goods to exorbitant levels in order to maximise profits at the expense of the people who were ill and dying in hospitals and old age homes. The sad reality is that there was no cohesion and coordination on a macro scale regarding to the procurement and delivery of such essential equipment, apparel and medication. Instead of Federal Government (central government) acting as the catalyst for the acquisition of such goods and services, it competed against states and hospitals, thereby increasing the cost and delaying the delivery of the imported life-saving offerings from Europe and the East.
SCM can be defined as the design, planning, execution, control, and monitoring of supply chain management systems, with the objective of generating value by synchronizing supply with demand and measuring performance on an international basis. Where once it was considered to be a philosophy, in today’s terms it has become an essential business activity that is designed to ensure the delivery of superior value-add services so that all the players in the chain may benefit there from.
The supply chain, not only links organizations e.g. suppliers, producers, and customers. It produces upstream and downstream flows, which move products, information and payment (cash) out of and into organisations.
The value chain however integrates a variety of supply chain activities throughout the product/service life cycle; from the marketing function determining customer needs and wants, operations converting inputs into goods and services and finally to outbound logistics, which consists of order processing, warehousing and distribution. The main intent of a value chain is to increase the value of a product or service as it passes through stages of development and distribution before reaching the end user. So, through effective supply chain mapping and streaming, organisations in the supply network can accurately direct their mutual efforts at providing value-add services to the next-in-line customer. The above hopefully illustrates the relationship of the three critical business activities, their relevance and as importantly how they provide value to all the members of the network, including the end consumer.
Names, like sticks and stones, can hurt you. Just ask Corona — the beer, not the virus.
The coronavirus is currently a trending topic and a major public health hazard worldwide. But at the same time, it is also not doing the Mexican beer brand of the same name any good. Being linked to something like the corona virus is something you absolutely do not want as a brand. The name corona virus comes from the Latin word corona, meaning crown or halo. Under an electron microscope, the image of the virus is reminiscent of a solar corona.
In a recent article published by nytimes.com (2020) the following statement was made – Grupo Modelo’s Corona beer drew attention about a month ago after consumers mistakenly associated it with the fast-spreading Corona virus, which by that point had already begun its global march. Corona has become the subject of memes and videos shared on social media as the toll from the virus climbs worldwide. Reports of an increase in online searches for “corona beer virus” and “beer coronavirus” show the Mexican beer hasn’t been able to escape the association.
Even if the vast majority of people aren’t making the association, there still could be damage to the brand’s goodwill just because of the similar names. Trademark attorney and founder of Gerben Law Firm, Josh Gerben, notes: “The vast majority don’t think they’re tied. But you don’t know what the subliminal messaging is here.”
One must ask the question – Who is to Blame? If anyone is to blame for turning a perfectly good word meaning crown into a modern synonym for a deadly virus, it’s the scientists in the late 1960s who decided that the protrusions on the virus they were examining under a microscope looked rather like the bright gaseous ring visible around the sun during an eclipse. One thing is for sure – the word that will emerge from the current crisis battered and vilified beyond all recognition is most certainly corona.
As we can imagine Corona beer is potentially facing a PR nightmare. But they’re not the first. Other brands have felt the pain of homonymy too, for example:
a soda called Sars – marketed in Taiwan
a chocolate called Isis (in fact a pharmaceutical company and a wallet app have been called Isis as well)
Golden Gaytime is an Australian ice cream bar. Their slogan: “It’s hard to have a Gaytime on your own.”
An appetite suppressant candy called Ayds – “Ayds helps you take-off weight and helps you keep it off.”
It also does not help that Corona, like Ayds, seems to have an ill-chosen tag line. In case Ayds didn’t already remind you of AIDS, the motto “Ayds helps you take- off weight” drove the point home. Likewise, Corona’s pitch for its new “hard seltzer” flavours is: “coming ashore soon.”
The name Corona is now on everybody’s lips. And in marketing terms, that is never NOT an opportunity. In other words, should Corona leverage the negative attention and spin it in a positive way?
Times change. In the case of brands there’s simply too much value built into a successful name. But that can change overnight, if world events overtake the marketing department.
So what does a million dollar brand like Corona do? Some products have tried to shed their old names and start a new life:
The Belgian Isis brand chocolate bar changed its name to Libeert.
The Isis pharmaceutical company changed its name to Ionis.
The Isis Wallet app changed its name to Softcard.
Ayds ultimately changed its name to Diet Ayds — but it was not an appreciable improvement. That brand disappeared from shelves.
Corona is, of course, a bigger brand than any of these. The most likely course — and possibly the best one — for them is to wait it out.
“You sit still and wait for the storm to pass” said advertising legend Harvey Gabor, who’s been through this. Richard Nixon had a great line. “The memory of the average American is one week. Just sit tight”
Trademark professionals would advise to keep an eye on the way the name is being used and ensure against issues of dilution or disrepute in the marketplace. It’s important to make sure that no other brand is being opportunistic to use their name in combination with the virus to tarnish the brand. It’s unlikely that another beer brand would take such a serious global situation as an opportunity for a cheap advertising pot-shot, but the lines of parody can be blurry and it’s not unfeasible that the beer’s name could be implied with a relation to the virus. The brand will want to keep an eye on media mentions of the virus that don’t clearly distinguish between the beer brand’s name. Were coronavirus to start being written about without the ‘virus’ suffix, then Corona would need to act.
Is It OK to Make Coronavirus Memes and Jokes? Humour can relieve anxiety; it can also stoke tensions or spread misinformation. So, the answer isn’t simple. In fact, a South China Morning Post article details some of the memes that have already spread around the internet relating the beer brand to the deadly virus. One picture shows a bottle of Corona placed opposite a group of Heineken bottles with a facemask covering them. While it isn’t exactly a PR crisis, this obviously isn’t a situation that Corona’s PR and marketing teams want to be in. That’s not to say it can’t be turned into an opportunity, despite the tricky connotations. And herein lies the lesson: This is a great case study in making the most of difficult circumstances.
It’s also an important reminder to have an action plan in place so that your organisation is prepared to deal with any bad press that comes its way.
The brand will want to keep an eye on media mentions of the virus that don’t clearly distinguish between the beer brand’s name. In fact, Corona may be able to increase its brand reputation – provided that any attempts are not read as cynical and opportunistic. This could help build some equity in your brand in otherwise unfortunate circumstances.
If AB InBev (Belgium owners) don’t keep engaging with the Corona beer stakeholders, others in the media fill the vacuum. It also leaves the door wide open for speculation and innuendo.
At the end of the day it is evident that the beverage has nothing to do with the coronavirus, but it may be an ideal opportunity to turn negative association into positive by offering even just a fraction of their marketing spend, for example, to helping mitigate the spread of the disease. Just imagine all the goodwill and free press this will bring about…
So then what do you do if your service or product, and ultimately your brand, are on the receiving end of widespread negative social media attention?
Be Proactive – be decisive yet thoughtful in your response — a brand’s reaction can mean the difference between a classy recovery and fanning the unwelcome flames
Respond with Speed – An organisation’s survival in a crisis, depends enormously on the speed of its responses.
Continued Strategic Engagement – The lack of engagement inevitably raises concerns about how transparent the company has been in handling this crisis
Plan and Prepare – As soon as you realise your brand is going viral for the wrong reasons, commission real-time social research to uncover the hotspots of heated criticism
Anticipate and adapt – The better you have anticipated the possible scenarios, the more prepared you are and the more confident you will be in implementing the changes
Apologise if need be
Take action and stay connected
Adjust your marketing strategy – Brands need to adjust their media investments based on the moods and expectations of consumers.
This is not a time for the Corona marketing team to panic or for that matter any other marketing team that is faced with the challenges of today. Don’t throw your brand into a continuous stream of frantic tactics. A frantic response is not the way to build a powerful and resilient brand. It’s a time to focus on the purpose of the brand.
Businesses that are aligned behind a compelling purpose will inspire their employees, connect with their consumers, and earn love and loyalty that will persevere in times of change and times of hardship.
And ultimately ensuring the longevity of the brand.
Lessons shared by an institution that has been doing it for a while.
The role of learning and teaching in a digital environment has been catapulted into the spotlight as many educational institutions which have not paid much attention to it, are now grappling with where to start to put systems in place or brush up on their neglected or under-utilised learning management systems. The now clichéd expression ‘the new normal’ holds true for higher education as well. Digital education as part of a blended learning mode of delivery, is here to stay, has been waiting in the wings and is now coming into its own. Higher education can never go back to what was, nor relegate digital education to the dark recesses of educational minds again. The definition of mode of delivery needs to be overhauled and redefined.
Over the past number of years having been digitizing our programmes and drawing on technology to augment our learning and teaching activities, we have learnt many valuable lessons. Perhaps these lessons will assist those struggling to attune their thoughts to digital conversions of their learning programmes as turning digital is much more than putting webinars on a server and a must for education into the future as our clients in higher education are mostly digital natives who have never known a world without technology.
2. Lessons we have learnt.
Here are some lessons we have had the luxury of time, to learn.
2.1 Educational Principles in Learning and Teaching in Virtual Space
Learning and Teaching principles and theories must underpin the strategies which inform the digitization of educational programmes to achieve successful learning and teaching in the digital space. Cognitive theories indicate that student performance is linked to how learning is structured. Designing your digital education space cannot be a haphazard knee jerk reaction to a crisis and be left that way. It is imperative to bear in mind how students structure knowledge and to develop learning and teaching in the digital space in line with how students structure knowledge. Gagne, Wagner, Golas & Keller’s (2004) nine levels of learning, also relevant in a virtual world, should be a good starting point to consider in the design of instruction.
Digital education lends itself very well to the creation of individual learning pathways, which is a buzzword for future education, and blended learning which has been around in education for some time. Individual learning pathways meets the individual learning needs of students through a variety of methods, and the various types of blended learning which is a combination of teaching methodologies including contact and digital, synchronized and asynchronous online teaching combinations, remote access to classrooms, among others.
2.2 Questions to Consider
A number of questions need to be considered. What research will support your decision to include or exclude features in your design, e.g. a theory developed by Garrison, Anderson and Archer (2000) which still holds true today, discusses the 3 presences which should be evident in the virtual module. One of these is the social presence. How will you ensure that you have a sound social presence bearing in mind that many South African Students are field dependent learners? The cognitive styles of Field Dependent (FD) and Field Independent(FI) learners must be catered for in the design of digital learning spaces. Simplistically stated, FD learners have a strong need for structure and teacher guidance, whereas FI learners prefer a measure of autonomy. What will you do to reduce the anxieties of FD students especially if compounded by a lack of online learning experience?
What resources need to be included and why. How do resources need to be included? How does the lecturer increase their social presence in the module? How can a discussion forum increase opportunities for communication on the learning content, between lecturer and student? Is there a need for synchronized or asynchronous tutorials or both and what would be the frequency of such tutorials? How would all these resources integrate to create a coherent whole in the digital education space rather than be a cluster of uncoordinated learning resources? What teaching methodologies will be adopted? How skilled and experienced are teaching staff, in online learning and teaching?
2.2.1 Lecturer Skills and Student Centred Learning in the Digital Education Space
Education in the 21st century needs to be student centred whether in a physical or virtual classroom. Lecturing to a passive group of students is teacher centred and not conducive to the inculcation of higher order thinking skills. The combination of lecturing in a synchronized or asynchronous tutorial and students who are field dependent, is a recipe for ineffective learning and teaching. At higher education level, the responsibility of the institution is to develop critical thinking and problem solving abilities in their students, not just focus on content. Lecturers that have been compelled in this difficult time, to turn to online webinars should consider what teaching methods to use to encourage participation. Tutorials which are purely in lecture mode are least effective.
It is not a given that someone who is an experienced teacher or lecturer, will know how to conduct online learning and teaching. Many of our academics are from a generation a couple of times removed from the generations we find at higher education institutions at the present time. The chasm between those lecturers and students who effortlessly navigate through the elearning space and those who struggle with basic computer literacy is significant.
The reality is that many lecturers and students have little experience of online learning and teaching and frequently try to transfer the contact classroom methodologies to the online classroom. As mentioned, the danger is that real learning does not take place, real learning in the sense of teaching students higher order thinking and problem solving as part of their mastery of the learning content. The lecturer will need to think about and understand the link between effective teaching in a digital environment far removed from their students on the one hand, and the nurturing of higher order thinking among their students.
Then there are the peripheral aspects to bear in mind, such as how you introduce the tutorial. So many, forget a simple principle such as providing students with the objectives of the tutorial. Will the background behind the lecturer be a distraction? Duration of the tutorial is an important factor. Too long and students lose focus. Too short and students feel hard done by. Poor lighting and students can’t see the speaker’s face and they comment on that. Preventing disruptions such as pets, children and others interrupting the tutorial is another small but important aspect to consider.
The above suggest that there is a need to do ongoing skills training among teaching staff and evaluation of the quality of teaching. How do you train lecturers? Ongoing skills development sessions in virtual space, allows teaching staff to attend via their computer or cell phone or view recordings of training sessions. Teaching staff should also be given a voice through a dedicated discussion forum. How does one maintain the sense of community among the academic community of the institution? Create a dedicated space on the learning management system which will serve as their virtual meeting room.
2.2.2 Student Responsibilities in the Learning and Teaching Process
How do you get students to participate in a tutorial, whether synchronized or asynchronous? We have learnt that few students participate in the live sessions and we have speculated, surveyed and read about the reasons for this. A couple of these reasons include, the time scheduled for tutorials, and students being reluctant to prepare for the tutorial where they may be required to participate. We have found that most students prefer to view the recordings.
Students who view recordings of lecturers view them passively and are disinclined to engage with learning content. How would you try to engage students even when no student has pitched up to the etutorial? How do you design your etutorial to encourage critical thinking and problem solving? How will you assist your students to engage with learning content as they work through it?
What role will continuous assessment play in encouraging students to actively engage with learning content? In this day and age of immediacy, providing students with immediate feedback to short continuous assessment activities is an effective way for them to gauge how well they are achieving the module outcomes and provides them with immediate feedback and incentive to progress through the learning content.
2.2.3 Guidance to students
Students too, need training on how to navigate the learning management system and how to respond to activities set for them. Short ‘how to’ clips placed strategically in relevant spaces in the digital module, providing clear instructions on how to use specific areas in the module can easily be produced with simple software such as screencast or other such software. This kind of guidance goes a long way to making students feel more secure and providing them with the direction they need.
2.2.4 Keeping in touch with your clients aka students
The management of communication is key in the digital environment. In the physical space, information is often conveyed through students and staff sharing information incidentally during the course of their interaction within the physical space. Non-verbal cues assist in understanding the messages conveyed. This provides a context for the information. In virtual space, however, these incidental and non-verbal cues are often reduced or lost. There needs to be a balance between flooding students with information, on the one hand, and ensuring that everyone has all the information they need. The more balanced the dissemination of information is, the fewer questions born out of confusion, frustration, or insecurity, are generated, but without overwhelming students with information.
What communication strategy will you put in place to keep both teaching and support staff and all importantly, students, informed yet avoiding cluttering their mailboxes? What processes and digital means will you use to ensure that you are listening to your students and what they need? A number of strategies to be considered may include the following: Strategically timed announcements keep students informed of changes, new developments and any other information they need to be cognizant of. Information and question and answer sessions, in virtual space between faculty and students, help students feel part of a community and that they concerns are heard.
Consider how you can integrate various social media , such as facebook, whatsapp, Linkedin and others, into the communication strategy. Slack and Team are further vehicles for communication and collaboration, which will no doubt enhance the field dependent student’s learning experience.
A strong student support department with dedicated well informed support staff assisting students timeously with queries is a vital component in assisting students with all kinds of queries. A dedicated communication channel, which is continually monitored, for students to query technical aspects, e.g. unable to upload an assignment on the learner management system, assists in reducing frustration and anxiety among students. A key component is the turnaround time for responses to student queries.
2.3 Technical aspects
The choice of learning management system will be decided by what the needs of the institution, are. Will it be outsourced or maintained by the institution? What security features are built into the system? Will the management system be flexible enough to ‘bend’ and adapt to your learners’ specific needs without necessarily calling in the expertise of outside service providers, which will only serve to increase costs and force you to be dependent on them for any changes. Open source learner management systems are just as good if not better than many of the smaller, lesser known ones which have not been around for long and which may not always have the variety of features which the larger ones do. One also needs to ensure that you are certain of the longevity of the learning management system which you select. Will they be around in 20 years? Does their track record show that they are in tune with cutting edge developments in digital education? Are they constantly upgrading their features in line with the needs of the education? What is their support like?
Does the learning management system offer a mobile and desktop app version, which are imperative as there are very large disparities of access to technology and data accessibility among students. These apps often serve as a lifeline to those students who are in outlying areas as they provide students with offline access to their learning materials and uploading of assessments via smart phones and desktop apps.
Accessibility, privacy and security are all extremely important aspects to consider when selecting any software in education. Will you need to provide data to assist disadvantaged students to download the app on their smart phones?
’Traffic’ on the learning management system, provides valuable information and identifies students who are not visiting the learning material or visiting too infrequently. Data provided by the learner management system provides important information about students at risk, and allows teaching staff to be proactive rather than reactive through timeous interventions.
The choice of software for synchronous and asynchronous tutorials will depend on the purpose for which you need it. What security measures are there to ensure your tutorials won’t get hacked? Does the software company respond to the tightening of security features? From a learning and teaching point of view, does the software include a whiteboard feature? Can you share your screen? Does the software record videos, which you included in your tutorial? Does it have a chat feature? Can you conduct polls during the tutorial? Can students write on the whiteboard should you require of them to do so?
How does the uploading of interactive content impact on server capacity? How will your server cope if all your students access the online module at the same time to upload an assignment?
2.4 Other skills required in the development and maintenance of the digital education space
Digital education is not only the domain of the academic. Apart from the academic input into the digital development of the module, consider the opinions of those who are more attuned to the marketing side of your learning management system. Other vital input from departments such as IT and administration contribute to the creation of coherent digital education space. These teams need to collaborate on a regular basis. Work closely with the IT department on server related issues especially when you introduce multi-media and other software such as plugins into your digital education space. How can administrative processes be adapted for greater automation? Listen to student observations. Is the learning management system, user friendly, i.e. is it easy to navigate? Is the space visually pleasing so that students want to visit the site and find it easy to find their way around it?
Technology can enhance the facilitation of learning and teaching or hinder it. The secret in thorough planning in order to keep things simple, to keep your finger on the pulse of the dynamic nature of students’ needs in conjunction with best practice in online learning and teaching and adapt when necessary.
List of Sources
Gagne R, Wagner W, Golas K, & Keller J, 2004, Principles of Instructional Design, (5th ed), Cengage Learning Inc.
Garrison, D. Anderson, T. & Archer, W. 2000, Critical Inquiry in a Text-Based Environment: Computer Conferencing in Higher Education. The Internet and Higher Education, 2, 87-105.
Martin M & Godonoga A, 2020, SDG 4 – Policies for Flexible Learning Pathways in Higher Education Taking Stock of Good Practices Internationally, UNESCO, International Institution for Educational Planning, https://unesdoc.unesco.org/ark:/48223/pf0000372817 Downloaded 24 April 2020
Q & A with IMM Graduate School – Leaders in technology-enabled education
Resilience. It’s a very apt word to describe South Africans and the same can be said about the businesses, organisations, and institutions that keep this great country of ours moving.
In the past few months, and even before that, IMM Graduate School has shown not only resilience, but also how much they care about their students and the success they will achieve. They’ve gone more than the extra mile. Years of constant innovation and drive to do better for their students have lead to IMM becoming front-runners in technology-enabled education, and during our age of Covid-19, it has proven to be exactly what their students need.
We had a quick chat with Charmaine du Plessis, Chief Marketing Officer at IMM, to find out how they’re supporting their students during Covid-19 and their recently launched BCom in International Supply Chain Management.
IMM has been around since 1960, and for the slightly older generation, we are the ‘household name’ for marketing qualifications. We currently offer 10 qualifications across higher certificates, diplomas, degrees, and postgrad. Our areas of expertise are marketing, business, and supply chain.
Focusing specifically on our marketing degree, these qualifications are fairly business-based, hence the BBA or BCom designation. The implication of this is that our curricula include modules such as financial management, business management, statistics, and a reasonable amount of quantitative work. Of course, the core theoretical marketing modules are in place, as well as various, very interesting, ‘applied’ marketing modules as you get to 2nd and 3rd year.
IMM is predominantly an online/distance/digital provider of qualifications. We have students from all over. There are almost 1 000 in Zimbabwe, but we also have various students in places such as the UK, Australia, India, and China. Our courses, content, and delivery model are set up to be able to support students remotely, which is ideal right now as you can imagine.
We also provide face-to-face tutorials for students who require additional help or prefer the discipline associated with a formal class schedule. Our largest Student Support Centre is in Stellenbosch, where we have over 500 students.
We like to define ourselves along 3 key dimensions:
Best-in-class qualifications: We have been offering degrees for many years, and we continually update. Many of the core principles remain constant but the case studies and applications are updated regularly.
Compelling delivery: We are probably the most flexible institution in terms of learning style. Simple yet compelling study guides, live and recorded webinars, digital interactive content, and face-to-face tutorials. We try to cater to all the various requirements and study styles.
Empathetic student support: This aspect is often overlooked by online education providers (in my opinion) and it is probably the biggest ‘gap’ between a traditional face-to-face university experience and online. Online is anonymous and it is difficult for lecturers to know when students are struggling. Because of this, we have implemented a series of interventions – not least of which is our help desk – where we are able to answer students’ questions within 15 minutes (during working hours) and slightly longer after hours. If you are to study remotely, this is a very important aspect to consider in any provider.
2. Covid-19 has changed the business landscape immeasurably. What steps will you take in the coming months to support your students?
Since 26 March, the IMM has been working non-stop to ensure that our students’ academic journey remains uninterrupted. Our various teams have not only been keeping the ‘engine going’ from home but are actually developing new products, content, platforms, and systems to make sure that our students look back at this semester as a successful experience and one that continues to push them toward their career objectives.
Our CEO, Dalein van Zyl, has been emailing students regular updates on all the important tweaks and changes to this semester’s schedule, emphasising some of the important items:
Assignments: Our assignment submission processes are ‘tried and tested’ and fully digital, or in other words, can be completed and submitted remotely, but the submission deadlines for most modules have been extended to allow a bit more flexibility for our students.
Examinations (Final Assessment): We decided to mitigate ongoing social distancing policies, so we have redesigned all the exams to allow for remote completion and submission. We’ve also put together memos and videos to help our students prepare and write an Open Book Assessment. The exam/final assessment schedule has also been tweaked and pushed out by 1 week.
Student support: Through our committed staff and our digital platforms, we have continued to provide support to our students almost 24/7.
3. Please share with us one of the courses you’re most excited about.
We recently launched our BCom International Supply Chain Management. It is an extremely relevant and interesting qualification that prepares students for the complex global trade and supply chain management sector. If you consider the most disruptive industries, as well as interesting businesses, it is not easy to ignore Amazon, one of the most valuable companies in the world. This qualification was mapped against industry standards and needs in order to develop skills that are job and industry relevant.
4. What are you looking forward to when it comes to the future of IMM Graduate School?
IMM Graduate School is at the forefront of technology-enabled education in South Africa. We have invested hugely over the last few years in systems and processes, and the result is a best-in-class combination of technology-enabled functionality with a human touch or support. We are able to offer our qualifications anywhere in the world and support students with equal intensity notwithstanding their location. At the same time, our talented and highly skilled faculty ensure that our curricula remain relevant to both graduates and future employers alike.
by Jani Grey . Q & A with IMM Graduate School – Leaders in technology-enabled education, Job Mail. Available here. [Accessed on 25 May 2020]
Euromonitor International: How is Covid-19 affecting the Top 10 Global Consumer Trends in 2020
It is May 2020. Students of the IMM Graduate School are busy writing their Final Assessments, not in a traditional examination venue, but rather on a computer, possibly at home. Now, in the midst of the coronavirus lockdown, the world has no idea how long the coronavirus will directly and indirectly affect us. What we do however know is that every individual, every company and every institution, has indeed been affected by the coronavirus in some way or another.
In this regard, Euromonitor International, a London based independent provider of strategic marketing research, did a comprehensive study to forecast how Covid-19 will possibly affect consumer trends over the medium to long term. To accomplish this, Euromonitor International re-analysed the 10 global consumer behaviour trends it identified for 2020, prior to the outbreak of the coronavirus pandemic. The objective was to potentially predict consumer behaviour once life return to (the new) normal. Below is a summary of the findings:
Trend 1: Beyond Human
According to Euromonitor (2020), prior to the outbreak of the coronavirus consumers looked at technology, including Artificial Intelligence (AI) and robots to take over certain human functions. Using a robot will certainly be welcomed by many families in completing mundane tasks such as washing dishes, ironing and even making a good cup of coffee. Companies were investigating how AI can be used in their long term strategies to improve efficiencies.
But now, during the pandemic, people are either in quarantine or lockdown, some choosing self-isolation. This has led to a need for contactless services and technology. There has been a rise in the selling of voice controlled technology, the use of chatbots (to obtain information) and the demand in smart speakers and – household devices.
Companies are now investing in robotic automation for example in some medical sectors. Walmart, is using robots to clean its floors. As people are increasingly becoming comfortable to use robots, robots are going to move from a novelty item to an essential item.
Example: Meituan Diaping (China)
Meituan Diaping, in Beijing, China, is a leading food delivery company. Since February 2020, it has been using autonomous vehicles to deliver its foods. Even though this was technology that the company was developing pre coronavirus, the pandemic forced Meituan Diaping to implement the technology sooner than originally anticipated. Their no-contact delivery has allowed it to respond to consumer demands firstly, but it also addresses environmental issues, as the vehicles ease traffic congestion and the electric cars are more environmentally friendly than normal fuel-operated cars.
Trend 2: Catch me in seconds
Through the internet and digital technology, consumers were used to receiving more content in less time. People were not interested in reading long-winded advertising messages. They were seeking personalised, authentic and appealing messages and communication channels. The consumers were expecting brands to identify the most useful content for them. They needed brands to reassure, to provide engaging narratives, and consumers therefore demanded short, speedy and multisensory messages.
Now, amidst the virus pandemic, social distancing and fewer face-to-face interactions have become part of our day-to-day lives. Consumers are worried by the virus and its implications. They are distracted by the merging of work-, home – and play life, all in the same physical space. When reaching out to consumers now, brands must rather be reassuring and supportive, as opposed to selling a product. Brands must show what they are doing to fight the virus and improve public health. Consumers want to be engaged and have fun with brands in these difficult times.
Companies would need to be agile and relevant to engage with people who are preoccupied and scared. This will place them in a good position post lockdown. The world is possibly going to face the worst recession ever, consumers are going to be extra careful on where they spend their money. Brands that were proactive during the lockdown will possibly stand out and be favoured above those that that did not engage in positive ways with their audiences.
Example: Giffgaff (UK)
Giffgaff is a mobile telephone network. The company launched an advertising campaign called ‘putting community first’ with the objective of providing people with the means to be there for each other and be able to share, through a mobile virtual network. Giffgaff went further to provide consumers with information and tips on how to deal with isolation and mental health concerns. Its focus on people rather than product or services allowed the company to build positive brand associations.
Trend 3: Frictionless mobility
People had the freedom to move around in congested cities. This has, in developed economies at least, shifted the consumer’s mind-set from ownership of some form of transport to access of transport. People had the freedom to move around and used apps and technology to access transport and pay for transport tickets.
The coronavirus has stalled this mind-set – people movement is limited and people are vigilant and cautious when it comes to mobility. People have moved away from sharing transport due to the inherent health risks, and in some cases are starting to use their owned transport again. There has been an uptake in cycling again – in Germany pop-up cycle lanes have been created, specifically designed to have enough space to allow for social distancing amongst cyclists.
Whilst consumers will slowly start resurfacing once the worst of the epidemic is over, flexible working hours will be more of the norm. Over the longer term, frictionless mobility will still be important, but maybe not to the extent as pre covid, i.e. rush hour traffic may be something of the past or at least the intensity of rush hour will be substantially reduced. Companies should be looking at investing into alternative sustainable solution, which include the removing or limitations of health threats that transport sharing brings about.
Example: Wheels (US)
Wheels, an electric bike start-up company, suffered huge losses due to the contamination scare. Wheels partnered with Nanoceptic, a company manufacturing self-cleaning service products. Nanoceptic develop a skin on scooters’ bike handles which continuously self-cleans. This allows Wheels to safely redeploy their fleet of scooters, and to adjust rental pricing plans for better deals with regular users.
The bottom line is that companies need to actively limit any health threats to their consumers.
Trend 4: Inclusive for all
Consumers were demanding that companies develop products and services that are accessible to all people, including those with physical or mental disabilities. Consumers wanted brands, products or marketing initiative which make inclusivity the foundation of their business – companies had to embrace people with disabilities, and actively try to understand the needs of such consumers. Business had to enable fully immersive opportunities for everyone.
Now, with the Covid 19 virus in full swing, this trend has become even stronger. Anxiety levels are high, especially for disabled people as they tend to have lower immune systems which makes their risk of catching the virus even more pronounced. Disabled people also requires carers, which makes social distancing impossible in some cases. It has become even more important for disabled people to have access to information. As the general public has a better understanding of the disabled’s world due to themselves being in isolation or lockdown, there has been an increase in community spirit. People are investing their own time in helping such people and putting pressure on companies to do more.
Disabled people, on the other hand, benefit from technology, for example, a greater ability to access virtual reality. Online communications enable more people to interact virtually and participate in a variety of activities. This certainly helps people with mental health problems as well as physical disabilities.
Example:UNESO World Heritage (Machu Piccu)
UNESCO, with their immersive virtual tours, allows all people, including those with physical disabilities, to access Machu Piccu in Peru. It allows viewers to really get a feel for the greatness of the site. Uvisit, the platform that UNESCO uses, enables any business to set up a virtual tour or event, allowing it to reach new audiences.
Trend 5: Minding myself
People were focused on mental wellbeing, including preventing the physiological effects of stress, worry and sleeplessness. Traditional stimulants such as alcohol and tobacco was used by practicing so-called ‘responsible stimulation’. Companies provided products and services enhancing mental wellbeing.
It has now become a matter of rebalancing, of creating a new normal. People need to manage their anxieties, therefore consumer behaviour will focus on self-care. Now, during Covid 19, people are secluded, and many are living in fear of the unknown and even claustrophobia due to living with family with no outlet for physical and/or mental space. People need to learn to live in the new state of unprecedented normality. As there are higher levels of anxiety levels due to the lockdown, people are using products and services that helped them manage their feelings and handle the severe emotional and physical situations. Herbal products and legal cannabis products are in higher demand. Social networks are used to fill the gap left by lockdown and social distancing. The uptake on relaxation and medication apps have increased.
Even after the dust of the coronavirus has settled, mental health will remain a focus. Consumption patterns will focus on the ‘self’ and good mental and physical health products will be in demand.
Example: Mindhope (Spain)
Mindhope provides mental health services. The company started a new therapy platform which connects consumers with psychologist. The platform also facilitates online appointment bookings, and is very easy to use. People who are already struggling can therefore easily cope with the use of the technology.
In general, mental wellness orientated solutions will become increasingly important as Covid-19 has already demonstrated its huge impact on physical and mental health – the ease of use and accessibility for all are key success ingredient.
Trend 6: Multifunctional homes
With the advent and growth of the coronavirus spread, people started cocooning themselves – home became a shelter from uncertainty. Businesses are actively exploring and implementing remote working and the world has seen a rise in the use of technology to make it easier to work, shop and play from home.
Now home equals the office. People are socialising in virtual space. Social media has replaced people’s previous social gatherings. Every day has become casual Friday as people are working in casual clothes from home.
School going children of all ages have moved online and people attend gym -, cooking -, and other classes online. People are now celebrating birthdays both alone and online. Consumers are using online platforms less to promote themselves, as in the past, but rather to stay connected with others. Livestream and video chats are increasingly being used by all.
Euromonitor (2020) predicts that the transition from home as the hub is here to stay. It may not be to the extreme that it is during the lockdown, but working from home will certainly become a greater reality. Consumers will furthermore change their at-home-habits – more working from home and more casual dressing will become the norm. Virtual lifestyles will run parallel with physical activities and – lifestyles when the world ‘comes out’ again.
Example: Zoom (US)
Zoom is a communications technology company. It provides functionality for companies, groups and individuals to create and attend virtual meetings. These services are offered free of charge to schools in some countries. It has become a social platform where people do remote video chatting, share drinks, do quizzes and party.
Companies need to invest in technology and other equipment to facilitate employees to effectively work from home.
Trend 7: Private personalisation
Early in 2020 consumers wanted to received tailored products and services. But there was a general hesitancy in providing personal information due to fears of who has access to data and how will such personal data be used. Business was forced to heavily invest in secure data collection methods in order to ensure privacy.
Now, people are more worried about the virus and more prepared to share data in the name of public health. Privacy concerns are put on hold in the short term. There will be a widespread increase in online ordering and payments, also amongst older people who tended to shy away from this previously, not trusting online shopping. Online shopping has become a necessity and is not a choice anymore. Companies would need to make privacy messages clear, especially for new audiences. Companies would furthermore need to review how they communicate to customers on the benefits of sharing personal data.
Example: Sentinel Health Care (US)
Sentinel is a health tech start-up that monitors consumers’ health remotely. It has launched a fever tracker application, enabled from a wireless thermometer, that sends real-time updates about an individuals’ health to healthcare systems, healthcare providers and so on. Sentinel identified a gap in the market which they were able to leverage by engaging with healthcare professionals to provide a personal solution that appeals to consumers’ desires to have a health monitor join the crisis. But consumers realised that they need to share personal data in order to be able to use Sentinel’s application. The benefits of sharing personal data, in this instance, far outweighed general fears of the potential mismanagement of data.
Trend 8: Proudly local going global
Consumers want products that both have both a local and national flavour. Covid-19 has catapulted this localisation. Consumers are searching for both national and local products and brands that highlights their local cultures, social norms, and traditional habits. Niche brands rode this wave by accentuating the localness of brands as part of their global marketing strategies. Businesses started increasingly to focus on local suppliers as borders were closed, whilst multinationals increasingly localised their overall operations. The virus has created a sense of ‘getting through this together’ through local business and communities support.
Post coronavirus consumers’ fear of contagion will still be strong enough to drive demand for local products. Local producers would need to provide stock and make the products that consumers want. Supply chains will become more transparent as consumers will want to know where their products are sourced. There will be a continued support of local business. The expected recessions after Covid- 19 will force multinational companies to invest even further in local manufacturing and supply chain services to provide more local products.
Example: Withies Delicatessen (UK)
Withies is a delicatessen in Somerset, United Kingdom, that offers local produce. With the outbreak of Covid, Withies started offering a new delivery service of freshly baked products to anxious or self-isolated consumers. Companies that adapt and introduce new services or products secure future trust and loyalty from consumers. In addition, they are expanding their reach to new consumers.
Trend 9: Reuse revolutionaries
Ethical consumers wanted a waste free future where products lasted longer and less waste was produced. Previously legislation surrounding the use of plastic shopping bags have changed in many countries, ranging from the banning of plastic bags under certain circumstances, to the consumer having to pay for plastic shopping backs in other. Such changes had led to the sharing and reuse of plastic in general. This trend lessened through Covid as people were afraid to touch products previously used, even if cleaned. There was a temporary move back to single use – and disposable products and staying healthy and safety.
Now, brands need to rethink – it is more about being clean than being green, as anxiety has moved consumer’s focus to health and safety. Over the medium term consumers will be worrying more about reinfection than green products.
But over the long term sustainability will still remain high on consumer’s agenda. Consumers will slowly return to sharing, reusing, renting and refilling. Companies will still need to embrace the reuse trend and educate consumers about the safety of reusable options. This will include clear instructions on how to reuse and recycle to avoid the spread of the virus.
Example: Refill APP (UK)
Refill APP allows consumers to refill their water bottles from a tap at specific points in the United Kingdom, free of charge. Water is generally found from either fountains or businesses which provide clean drinking water to the public. But now, with the close of many companies, Refill App’s listing has changed. For those companies, however, that can continue to safely provide drinking water, Refill still provides their locations on the app, but with an included message on health and hygiene.
Trend 10: We want clean air everywhere
Younger generations have increasingly raised concerns on air quality and demanded companies reduce emissions to provide these generations with a sustainable future. Awareness of air pollution impacted where consumers travelled and ate. Consumers favoured brands that were doing something about air quality. Companies globally continued to look towards technology to fight pollution.
Limited travel due to the coronavirus had a reversing effect on climate change. Furthermore, there is less room for eco-anxiety. Rather, the focus will shift to indoor pollution, where people will be anxious about their own health, and cleaning, washing hands, disinfecting things and so on will continue. As the lockdown loosens, consumers will refocus on sustainable living to the advantage of both people and the planet. There will be a combined focus on both the prevention of air pollution as well as being clean as the impact of pollution on people with respiratory problems will increase respiratory viral infection.
Consumers will seek solutions against pollution and require companies to actively innovate in their drive to prevent pollution.
Example: BYD (China)
BYD is the biggest electric vehicle manufacturer in China. With the coronavirus epidemic, BYD adjusted its production lines to supply face marks and hand sanitisers, to the volumes of five million face marks and 300 00 bottles of hand sanitisers produced per day. The switching of BYD’s production to manufacture protective equipment captured consumers’ hearts. Companies such as BYD may, post lockdown, be ahead in terms of consumer goodwill relative to companies who did not similar things during the virus spread.
As per Euromonitor International (2020), the coronavirus has to a greater or lesser degree, impacted all the pre-identified consumer trends for 2020:
The trends ‘multifunctional homes’, ‘beyond human’, ‘minding myself’, ‘proudly local’, ‘going global’ and ‘inclusive for all’ experienced an immediate spike as a result of the virus. This was followed by a long term shift in consumer behaviour relating to these trends.
‘Catch me in seconds’ experienced an immediate spike but is expected to follow its pre-covid patterns.
‘We want clean air everywhere’ has not changed, but may be even more pronounced due to the correlation between poor air quality, the coronavirus and respiratory problems.
‘Frictionless mobility’, ‘reuse revolutionaries’ and ‘private personalisation’ were trends that saw an immediate drop but which will expectedly recover after normalisation.
The key take-aways from this research conducted by Euromonitor (2020) are:
Currently, both consumers and business are dealing with extreme disruption, necessitating the need for rapid adaption. Brands need to be repurposed as being useful, helpful and supportive.
In the near term people and companies should use this time effectively to do tasks that they have not had time to do before. Planning should focus on returning to a new normal.
In the long term companies will be forced to reshape their future strategy planning, build in flexibility, prepare for multiple scenarios and possibilities and overall embrace technology.
Angus, A (2020). How is COVID-19 affecting the top 10 global consumer trends 2020?, webinar file in How is COVID-19 affecting the top 10 global consumer trends 2020?, Euromonitor International. Available here. [Accessed on 15 May 2020]