Journal of Strategic Marketing Newsletter – October 2021

27 October 2021

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Journal of Strategic Marketing Newsletter – October 2021

A NOTE ON MARKETING THE FUTURE

With this being the last Journal of Strategic Marketing newsletter for 2021 – we’ll be back at the end of January 2022 – it is an appropriate time to detail the exciting changes taking place at the Institute of Marketing Management South Africa and its IMM Graduate School.

The ambitious plans for the Institute for Marketing Management involve the creation of the largest network of marketing professionals across the continent. Aided by partner organisation, the African Marketing Confederation, the aim is to “uplift, grow and promote the marketing profession, including the areas of media, advertising, branding, market research, customer service, public relations, digital marketing, sales and business development” while supporting and inspiring marketing professionals at every stage of their careers.

Membership of the Institute of Marketing Management incorporates certain tiers that come with specific benefits for both individuals and corporate companies, which will form a solid community for alumni/students of the IMM Graduate School and the greater marketing industry.

The plan also includes vital, practical elements such as offering a job placement service to both corporate and individual members. The IMM Graduate School’s renowned qualifications in marketing, supply chain and business have created a pool of talent in various levels of their careers.

Membership of the IMM comes with a range of benefits too. Monthly IMM Friday networking events will cover latest industry developments. An annual marketing conference is planned, which will provide a platform for industry experts
to address topical issues, and for marketing academics and researchers to present papers covering new theories and research results. The event will also host the Marketing Excellence Awards, recognising achievements and contributions to the marketing industry each year.

An Executive Think Tank will be formed, offering IMM Platinum Corporate Members an opportunity to meet and share insights and perspectives. This is designed to ensure marketing’s brightest minds collaborate and exchange ideas on how to best serve the industry.

While the Journal of Strategic Marketing will serve the South African side of the IMM’s members and a range of C-Suite executives across industry, the Strategic Marketing for Africa magazine will cover the business of marketing across the continent.

The business of education, of course, continues. The IMM offers a bouquet of online programmes, developed by industry specialists, which are both practical and relevant. Workshops will also be presented, designed with specific industry needs in mind.

Exciting times lie ahead for the Institute of Marketing Management and its members. But in the meantime, as we learn to live alongside Covid-19, this issue of the Journal of Strategic Marketing covers the way in which business understands the minds of consumers in this changed world and how brands and agencies have adapted.

GeoPoll’s Ricardo Lopes analyses the findings of research into South African consumers over the past 18 months. It’s not pretty, as we also live alongside multiple levels of fear brought about by the pandemic. Marketing Grit founder, Noeleen Bruton, delves into the complex world of digital strategy that massive adoption of technology has brought to the fore. SAB Corporate Brand Director Sphe Vundla shares how the company managed multiple agencies and multiple brands in a sector that had to deal with rolling alcohol bans and massive uncertainty. And Ornico’s Oresti Patricios advises businesses that have adopted an ecommerce model how to stand out and retain customers in an increasingly competitive space.

We hope you enjoy the read.

Here’s to marketing the future.

Glenda

The ongoing impacts of Covid-19 on South African consumers

Research into prevailing attitudes towards Covid-19 since the pandemic began has delivered insights into the minds of South African consumers over the past 18 months. While GeoPoll’s study covered nine markets, RICARDO LOPES dives into what the findings say about South Africa.

Covid-19 continues to exert immense pressure on the world’s emerging markets, creating economic concerns that rival health concerns. With a third or fourth wave of the virus gripping many countries, it is becoming increasingly difficult for governments to get a handle on either of those challenges.

As a follow up to GeoPoll’s 2020 reports and April 2021 report on the impacts of Covid-19 in sub-Saharan Africa, we conducted a survey in nine countries across Africa, Latin America and Asia to assess the ongoing effects of the pandemic on respondents’ finances, spending and health, their thoughts and concerns about the vaccine, and their hopes for the future.

Slow down to speed up: the importance of solid strategic thinking in a post-Covid era

As things start to settle into a ‘new normal’, companies are in a better position to assess emerging digital trends and identify which ones are here to stay. There is no doubt the accelerated adoption of digital technologies during the pandemic will continue into the post-pandemic recovery, writes NOELEEN BRUTON.

Without a doubt Covid-19 has, in just a short while, accelerated the digitisation of internal business models, customer interactions, as well as distribution and supply chains.

During the pandemic, consumers showed a ‘fast tracked’ adoption of online channels forcing many companies to promptly respond. According to a new McKinsey Global Survey of executives, this has resulted in a rapid shift towards interacting with customers through digital channels, and also the share of digital or digitally enabled products in their portfolios has accelerated by an incredible seven years.

This hastened response has been very encouraging with many companies undergoing a massive cultural shift that has not only allowed for, but encouraged, quicker decision-making and more out-the-box entrepreneurial thinking.

Collaboration and integration are the new foundation of brand brilliance

The South African Breweries recently appointed SPHE VUNDLA as Corporate Brand Director. Here, he uncovers the unique challenges this massive business faces. The only way to manage the integration of multiple brands across multiple agencies is by establishing a strong rhythm and efficient ways of operating, while becoming an expert in managing multiple objectives too.

Managing the South African Breweries corporate brand comes with the challenge of ensuring the organisation’s efforts and achievements are communicated and built on through continuous and seamless storytelling. This is no small task, as it requires close co-operation with multiple players in various parts of the business.

The last few years have seen this dynamic industry become more difficult to maintain; the Covid-19 pandemic hit the brewery industry hard with the country introducing new restrictions, including multiple bans on the sale of alcohol. Because of this, I had to embrace agility and scenario planning in a completely unprecedented way. Adopting a discipline of readiness – which at times meant having campaigns ready to plug-and-play in response to changing socio-economic and political conditions – became a key part of how the organisation operates.

eCommerce accelerated: How to get ahead of the curve

There’s no doubt the Covid-19 pandemic hastened ecommerce across industry sectors. ORESTI PATRICIOS delves into what marketers should know about ensuring consumer loyalty and ecommerce offerings that stand out above the rest.

The Covid-19 pandemic has led to the acceleration of digital transformation in South Africa. From March 2020, when lockdown began, companies in all industries had to shift their operations to maintain revenue. These shifts included introducing work from home policies and going completely digital. And, of course, introducing ecommerce stores as an alternative to make product sales.

The Statista Digital Market Outlook indicates that the value of ecommerce transactions in South Africa is expected to surge to 150% by 2025. This is equivalent to R225 billion and results from a marked shift in consumer behaviour and expectations brought about by the pandemic.

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New collaboration between African marketing professionals

The marketing profession’s most pressing imperative is to “kick start a new conversation on how best to address a radically changed business environment as the world slowly emerges from the Covid-19 chaos”, says President of the African Marketing Confederation (AMC), Helen R. McIntee. To this end, the Africa-wide organisation is relaunching. Member bodies comprise the Institute of Marketing Management South Africa (IMM), Marketers Association of Zimbabwe, The Zambia Institute of Marketing, The Marketing Society of Kenya, The Chartered Institute of Marketing, Ghana (CIMG), The National Institute of Marketing of Nigeria, the Institute of Marketing and Management, Mauritius, Institute of Marketing in Malawi (IMM) and The Moroccan Association of Marketing and Communications (AMMC). McIntee says, “We are more committed than ever to growing and developing the profession and to ensuring that African marketing specialists have the support needed to survive and thrive today and in a post-COVID new normal. The AMC’s vision of connecting marketers across Africa will provide the best platform to allow us to engage, share and find new solutions.”

Cannabis marketing finds a home in podcast advertising

Marketers across the globe struggle to keep up with the vagaries of marketing and advertising cannabis products. The regulations vary from country to country, and are constantly changing, and most social media platforms are reluctant to allow advertising of cannabis products. But Marketing Brew reports the industry picking up on podcast advertising as it has fewer restrictions. Former Marketing Director at cannabis researchers the Brightfield Group in the US, Connor Skelly, told Marketing Brew: “Podcasting just opens up more nuance. With something like Instagram, it’s overall just antiquated ad policies and terms of service. Same with Google.”

Reviving one of South Africa’s oldest wine brands

It’s been a wine staple in South Africa since 1932, produced every single year without fail despite war, drought and yes, pandemic. When the Royal Family visited in 1947, it was the red wine they were served. It is the only wine in South Africa allowed to use the word ‘Chateau’ on its label due to the fact that South Africa signed the Crayfish Agreement with France that forbade the use of the word on wine labels in 1935 – because it was launched three years prior to the agreement. It is, of course, Chateau Libertas. It was created by a medical doctor, Dr William Charles Winshaw, who believed the smooth, easy-drinking, juicy blend could be part of a healthy adult South African lifestyle. And now it’s coming out in a two-litre box, something else the pandemic has brought about.

Bond is back … and so is cinema advertising

The premiere of the latest Bond movie No Time to Die – Daniel Craig’s fifth and last outing as 007 – made a global splash. And a ton of money too. In the United Kingdom alone, it took over £25 million in the first weekend and $121 million in 54 other countries. Marketing Week reports advertising was sold out two months in advance of its release, with telecoms, motors, food and drink, as well as entertainment and leisure companies booking. These included Sky, Google, Pokerstars, Peroni and Lloyds. The UK’s Digital Cinema Media says 40% of the returning audience to cinemas are 16-34 year olds, but that Bond draws in an older generation too.

TikTok enters ecommerce space with Shopify deal

Users can shop on Instagram through linking products on posts. Now TikTok and Shopify have partnered to offer an ecommerce integration. Shopify’s web store drives merchants to the TikTok app, while offering a video creation tool for brands to create videos optimised for Shopify. “For the creator economy, this integration means that creators will need to be more intentional about the ways that they use their platforms as commercial storefronts while continuing to build a community and identify with the core values of their audiences,” writes Neve Fear-Smith on Talking Influence. “With the knowledge that this new shopping feature is in place, creators may find ways to incorporate the feature into their content planning by creating storefronts that can be used for events, conferences, or paid subscription channels.”

eCommerce accelerated: How to get ahead of the curve

27 October 2021

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There’s no doubt the Covid-19 pandemic hastened ecommerce across industry sectors. ORESTI PATRICIOS delves into what marketers should know about ensuring consumer loyalty and ecommerce offerings that stand out above the rest.

The Covid-19 pandemic has led to the acceleration of digital transformation in South Africa. From March 2020, when lockdown began, companies in all industries had to shift their operations to maintain revenue. These shifts included introducing work from home policies and going completely digital. And, of course, introducing ecommerce stores as an alternative to make product sales.

The Statista Digital Market Outlook indicates that the value of ecommerce transactions in South Africa is expected to surge to 150% by 2025. This is equivalent to R225 billion and results from a marked shift in consumer behaviour and expectations brought about by the pandemic.

Ornico research has shown how brands are now increasingly advertising their mobile app solutions to make it easier for consumers to purchase products. Evaluating a sample of 3 245 new advertisements for the period January 2020 to September 2021 shows a remarkable increase in advertising, which include mobile app purchases, with a marked increase in recent months.

With digital being mandatory for survival and not just a company growth strategy, manufacturers, wholesalers and retailers need to understand the key factors influencing consumer behaviour and improve their efforts to meet consumer expectations. Digital commerce offerings should go beyond having the right technology in place. It should be about developing a new way of generating growth, revenue and future-proofing a business.

It is no surprise that the supermarket category dominates advertising for mobile shopping and deliveries. This counts for 67% of all advertisements between January 2020 and September 2021. Top products advertised are various groceries, while alcoholic beverages is also a favourite.

After reviewing the top five brands advertising during the period, it is clear that Pick n Pay, Checkers and Takealot are by the far most prominent. However, Checkers has markedly increased its advertising in 2021 around mobile orders and deliveries, with its Sixty60 app proving very popular.

With this in mind, the starting point for any organisation seeking to develop an ecommerce strategy should always be understanding the problem they are aiming to solve for a customer. This paper aims to provide insights that will help understand South African online shoppers and outline factors that will develop effective digital commerce strategies.

Factors that make or break ecommerce businesses for South African online shoppers

A survey conducted by Deloitte suggests five factors important to the South African consumer looking to transact online. The key takeaway for marketers is not to isolate general components of the customer journey when developing a digital commerce offering.

Smooth checkout and delivery

Consumers require a frictionless end-to-end experience when doing their online shopping. This involves having visibility on available stock, the ability to add things to a cart with ease, a range of delivery options to select from and lastly, having effective payment alternatives. For this to happen, online businesses must ensure their user interfaces are fast and intuitive by implementing a human-centred design. They also need to adopt user experience (UX) and user interface (UI) principles when developing an ecommerce store and its functionalities.

Buying vs browsing

The pandemic has led to many businesses opting for ecommerce, increasing the number of online retailers offering an unlimited range of products for consumers to choose from. Nonetheless, the South African online shopper is specific about which ecommerce store to visit for what products. This makes it imperative for brick and mortar shops investing in an online solution to understand different channels within a consumer journey and how they integrate to establish a seamless omnichannel experience to win online shoppers over. Doing so will also enable them to transfer their trustworthy brand reputation over to their digital presence.

Clear returns and refunds

We all know the ‘oopsies’ associated with online shopping – when an online purchase delivered is not quite what you expected. Having a clear returns and refunds policy is a massive trust and relationship builder with online consumers. To them, being able to return products promotes security, control and safety. One of the barriers with an ecommerce store is the inability to touch and feel a product. A barrier that is easily solved by having a returns and refunds policy.

Service matters

An outstanding service remains at the top of consumer’s expectations. Clear and open lines of communication with customers throughout every stage of the purchasing journey is a thin line between the success or failure of any ecommerce venture. Online shoppers are not forgiving of lack of responsiveness or slow response times regarding changes in delivery and refunds or even general product queries. Consumers expect a 24-hour service from online businesses, making it imperative for retailers to manage expectations, support the peaks and troughs in demand and deliver moments of delight for customers.

Data protection

The enforcement of the POPI Act marks an era where consumers are informed and tread with caution on matters relating to their personal data and how it is processed. Developing an ecommerce platform that protects personal and financial data is of great importance to consumers when selecting an online vendor. Marketers should comply with data privacy regulations and adopt data privacy consent frameworks and other data management requirements. By doing this, consumers not only get the data security assurance they need, but it also results in the collection of quality data to perform customer analytics.

Since the outbreak of the Covid-19 pandemic, the world has seen what started as a global health crisis morph into an economic crisis and ultimately create opportunities for businesses operating in various industries to explore digital models. This is intertwined with changes in consumer behaviour and needs. Every company exploring ecommerce is challenged with mastering how to create a holistic digital environment that serves customer needs, complies with data security regulations, and aligns with operations while creating compelling user experiences that support business strategy.

Oresti Patricios is the CEO of Ornico, a company that provides insight into growing brands, monitoring reputation, tracking competitor brand activity and coverage, and ensuring advertising investments work to turn data into insights.

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Collaboration and integration are the new foundation of brand brilliance

27 October 2021

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The South African Breweries recently appointed SPHE VUNDLA as Corporate Brand Director. Here, he uncovers the unique challenges this massive business faces. The only way to manage the integration of multiple brands across multiple agencies is by establishing a strong rhythm and efficient ways of operating, while becoming an expert in managing multiple objectives too.

Managing the South African Breweries corporate brand comes with the challenge of ensuring the organisation’s efforts and achievements are communicated and built on through continuous and seamless storytelling. This is no small task, as it requires close co-operation with multiple players in various parts of the business.

The last few years have seen this dynamic industry become more difficult to maintain; the Covid-19 pandemic hit the brewery industry hard with the country introducing new restrictions, including multiple bans on the sale of alcohol. Because of this, I had to embrace agility and scenario planning in a completely unprecedented way. Adopting a discipline of readiness – which at times meant having campaigns ready to plug-and-play in response to changing socio-economic and political conditions – became a key part of how the organisation operates.

Fortunately, SAB hasn’t been alone in its efforts. Being able to keep a strong rhythm going has also made it easy to engage a network of some of the country’s best agency partners, who also live out this culture of collaboration, breaking down silos and ensuring the brands move forward as one. But to do it properly, we needed a unified approach.

A framework for collaboration

Managing multiple agencies requires a good strategy. I had to introduce a framework to bring this to life through an integrated meeting of all agency partners and internal stakeholders across all functions that work on the SAB corporate brand – the Newsroom, as it’s called. This is where teams check-in on each other, which is increasingly important in today’s current social climate, as well as in a creative environment. Of course, it helps ensure collaboration and mitigates duplication of effort, but it also connects us as human beings, not just a collection of human doings.

We align on the stories that we’re telling in the week and foreseeable future, engage with data on how our communication is performing across channels, hold each other accountable for actions to be completed, and brainstorm the best ways to get over the finish line as a team. This is serious work, but I have found that making it fun and interactive is key to its success. I also want to give as many people as possible a chance to showcase their work.

As part of a team culture that the team calls ‘Nyisism’ (i.e. the relentless pursuit of excellence), we have a weekly Newsroom with all agencies, and I personally have quarterly to monthly check-ins with myself and the agency leadership to build strong and transparent relationships. This helps to keep each other honest and recognise team members who are doing great work.

For the teams, Nyisism is a commitment to understanding that excellence is doing your best with what’s at hand; committing to showing up as your best self to every engagement; recognising that while teams must stay accountable, ideas can come from everywhere; and embracing radical candour and honest feedback in a way that holds oneself and others accountable with respect, as well as a ‘can do’ attitude.

Healthy constructive competition

The SAB corporate brand is serious about seeing agencies as partners and a part of the team, which inspires and encourages the respective agency partners to evolve to a culture that aligns with the organisation, as well as owning their expertise in integrating with other agencies that work on the brand.

I do, however, have to be cognisant of the fact that, for better or worse, inter-agency competition is something that doesn’t go away. I believe in healthy and constructive competition that keeps everyone on their toes and ultimately delivers the best work for the brand. However, when working in an integrated framework such as the SAB one, collaboration to deliver multi-channel integrated campaigns, while celebrating and empowering the diversity of thought that comes from the expertise, is critical to ensuring cut-through, resonant work.

So far, the approach to the massively complex task of managing so many objectives and stories has certainly been one of SAB’s most notable successes. It has enabled the teams to live up to one of SAB’s fathers of marketing Neil Hobkirk’s favourite sayings, “Big brands can do big things.”

It has been amazing to see the power of our brands to shape culture and shine a spotlight on social issues, really come to the forefront at this time. I am a big fan of Carling Black Label’s #NoExcuse movement which seeks to address men in the societal issue of gender-based violence, and the inspiring work from Brutal Fruit in celebrating femininity and encouraging women to occupy their space and embrace their uniqueness through the You Belong positioning.

At Castle Lager, it was beautiful to see how South Africa came together behind the Boks for the Castle Lions Series and helped increase national blood donations by 24% year on year through our partnership with the South African National Blood Service for the #InOurBlood campaign. This goes to show that it takes a true commitment to integration and collaboration to achieve the highest order purpose of a brand, shape culture and move society forward.

Sphe Vundla is Corporate Brand Director at The South African Breweries. He is an international award-winning and skilled marketer with multi-industry and multi-discipline experience in delivering strategic and creative solutions while elevating brands across Africa. As a marketer, Vundla’s experience across numerous marketing disciplines and industries has given him the power of adaptability. Over the last three and a half years, he has been intricately involved in some of SAB’s most iconic beer brands including Castle Lager, Castle Free, Carling Black Label, Lion Lager and Hansa leading the digital and integrated media functions for these brands.

‘Being able to keep a strong rhythm going has also made it easy to engage a network of some of the country’s best agency partners’

‘It has been amazing to see the power of our brands to shape culture and shine a spotlight on social issues really come to the forefront at this time’

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Slow down to speed up: the importance of solid strategic thinking in a post-Covid era

27 October 2021

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As things start to settle into a ‘new normal’, companies are in a better position to assess emerging digital trends and identify which ones are here to stay. There is no doubt the accelerated adoption of digital technologies during the pandemic will continue into the post-pandemic recovery, writes NOELEEN BRUTON.

Without a doubt Covid-19 has, in just a short while, accelerated the digitisation of internal business models, customer interactions, as well as distribution and supply chains.

During the pandemic, consumers showed a ‘fast tracked’ adoption of online channels forcing many companies to promptly respond. According to a new McKinsey Global Survey of executives, this has resulted in a rapid shift towards interacting with customers through digital channels, and also the share of digital or digitally enabled products in their portfolios has accelerated by an incredible seven years.

This hastened response has been very encouraging with many companies undergoing a massive cultural shift that has not only allowed for, but encouraged, quicker decision-making and more out-the-box entrepreneurial thinking.

The unprecedented adoption of digital during the pandemic will likely continue in the recovery

The crisis has spurred the adoption of online channels. Many companies went from testing the waters to embracing technology, diving into the deep end – headfirst.

This was all good and well after the all-hands-on-deck survival mode during the height of the Covid-19 pandemic. Now, as things start to settle into a ‘new normal’, companies are in a better position to assess these emerging trends and identify which ones are here to stay. There is no doubt however, that the accelerated adoption of digital technologies during the pandemic will continue into the post-pandemic recovery.

Many businesses are fully aware of how vital these channels are (especially now) to customer acquisition and retention, yet they do not have a cohesive plan to support digital transformation and future growth. These companies will likely have to fast-track their technological capabilities to stay in the game.

Digital marketing matters more than ever

To be truly successful and deliver maximum impact, it is imperative that businesses adopt a strategic approach to digital marketing. It is part and parcel of any marketing strategy and needs to be closely aligned with corporate strategy. It cannot be viewed in isolation.

Prior to compiling (or revising) their digital strategy, marketers need to ask themselves certain key questions …

How has the pandemic impacted on your corporate strategy – what transformation do you need, to not just survive, but thrive in this new world?
Has there been a shift in your business model – maybe a new market, a change in your supplier network or even some form of vertical or horizontal integration?
Also, what impact has the crisis had on the pace and scope of your business’s digital transformation? What are your current digital capabilities versus future requirements and what is essential to bridge the ‘gap’? If, for example, you are a brick-and-mortar retailer, are you going to extend your offering to include an ecommerce presence? If so – your roadmap needs to include resources, technological capabilities, payment gateways, delivery options (owned, partnership or outsourced), as well as digital marketing.
What are your competitors doing?
What is the market telling you – have you seen a shift in consumer spend patterns? How significant and permanent do you believe this shift to be?
What are your marketing goals?

Determine the channels that are needed to achieve your marketing objectives and identify the role required from each one

As you develop your marketing strategy, you will start to get a good handle on not only the ultimate channels necessary to meet your objectives, but also what strategic imperative is required from each channel.

When considering your digital marketing, ensure that you take cognisance of the entire digital ecosystem and adopt a full-funnel approach. This is not to say that you must incorporate all the ecosystem elements, but rather that you take a strategic approach as opposed to a tactical one.

A typical digital marketing ecosystem has eight components. Each work together to create a solid foundation for your business’s digital strategic efforts.

What is a full-funnel marketing approach?

A full-funnel marketing strategy involves tailoring your message (and delivery method) according to the stage your customer is at in their purchasing journey, based on where they fall within the funnel. Rather than skewing efforts to the bottom of the funnel, focusing on sales/conversions only, marketers consider the entire 360-degree customer journey and incorporate both brand building and performance elements – thereby becoming more relevant to customers, more able to accurately determine the effectiveness of marketing spend and ultimately deliver greater returns.

Because customers require a different approach at every stage of the funnel (and therefore different messaging, creative, etc.) it’s critical to adjust marketing strategies accordingly.

Although the simplistic funnel has three levels – Awareness, Consideration and Conversion – we employ a slightly more complex alternative that takes cognisance of brand loyalty and advocacy. Choose whatever funnel is appropriate to your needs. This funnel can be used as a rudimentary media model for both traditional and digital channels.

How much should you budget for digital marketing?

As digital marketing continues to grow and take over market share from traditional marketing, many marketers are looking for guidance on digital marketing spend.

There is no right or wrong answer here. The quantum allocated to digital will depend on whether you operate business-to-business (B2B), business-to-consumer (B2C), direct-to-consumer (D2C), the sector in which you operate, competitive activity, and the type of content you require.

As a rule of thumb, B2C companies generally allocate anywhere between 5 to10% of their gross revenue to marketing. Of this, anywhere between 40 to 50% is allocated to digital with social media making up around 25% of the digital budget.

The challenge in digital is the cost of content creation. Historically the 80/20 rule was the gold standard, where 80% of your budget was used for promotion (media spend) and 20% for production or creation. Digital marketing has seen a far greater amount allocated to creation (developing ongoing fresh content, repurposing it for different platforms) and less to media. You will have to ascertain what works best for you based on your unique needs and business requirements.

Avoid becoming a ‘tactical titan’

In today’s fast-paced and dynamic business environment it’s easy to become drawn into tactical and reactive thinking. My newsfeed and inbox are inundated with companies offering tactical solutions like a new click-through button that will treble your site traffic, five steps to grow your revenue, how Instagram can revolutionise your business, six mistakes people make on social media. These fads won’t accelerate your business exponentially – if only it were that easy! Avoid becoming a ‘tactical titan’. Move to that zone where you are focused on maximum return on effort – on conceptual thinking – the zone where the thought-leader and innovator inside you can creatively think and strategise about your business. Slow down to speed up.

Noeleen Bruton is the previous Group Marketing Director of Tsogo Sun who, together with Debbie Combrink, recently opened Marketing Grit, a specialist boutique marketing and digital agency. Marketing Grit’s services include strategic marketing consulting, digital marketing, as well as digital implementation including paid digital and social media.

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The ongoing impacts of Covid-19 on South African consumers

27 October 2021

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Research into prevailing attitudes towards Covid-19 since the pandemic began has delivered insights into the minds of South African consumers over the past 18 months. While GeoPoll’s study covered nine markets, RICARDO LOPES dives into what the findings say about South Africa.

Covid-19 continues to exert immense pressure on the world’s emerging markets, creating economic concerns that rival health concerns. With a third or fourth wave of the virus gripping many countries, it is becoming increasingly difficult for governments to get a handle on either of those challenges.

As a follow up to GeoPoll’s 2020 reports and April 2021 report on the impacts of Covid-19 in sub-Saharan Africa, we conducted a survey in nine countries across Africa, Latin America and Asia to assess the ongoing effects of the pandemic on respondents’ finances, spending and health, their thoughts and concerns about the vaccine, and their hopes for the future.

The main topics covered include:

Changes to consumer income and financial outlook
Changes in consumer spending habits
Perceptions about government response to the pandemic
Concerns about and willingness to take the vaccine
Adherence to public health measures and changes in emotional health

This article draws from that study, focusing on the key takeaways for South Africa.

Economic impacts of Covid-19

In our previous study on the ongoing impacts of Covid-19 from April 2021, 58% of respondents in South Africa stated their income had decreased since December 2020. The largest segment (41%) said they experienced major decreases.

That downward trend continues in this study. Facing record-high unemployment rates, 55% of the respondents in South Africa say their income has decreased since April, with 35% saying it has decreased a lot. Women in South Africa have experienced a disproportionate financial impact, with 38% saying their income had decreased compared to 30% of men.

The prevalent drop in income has many concerned about paying their expenses. In South Africa, approximately half (49%) say they are extremely concerned about paying expenses in the next three months – the highest percentage among the nine countries included in this study.

Despite lower incomes, 53% of respondents in South Africa claim their spending on food and other necessities has increased since April due to an increase in prices. To help compensate, 50% are spending less on non-essential items such as luxury goods.

With less money to spend, consumers are more discerning about how they spend it. In a separate GeoPoll study in July 2021 on Consumer Brand Perceptions in South Africa, 64% say how brands reacted to Covid-19 in their advertising influenced which products or brands they purchased.

Ideally, consumers want brands to use their advertising spend for good. Rather than promoting their products in a time of crisis, 71% of respondents in that study say they would like brands to “share helpful Covid information” in their ads. Others would like to see brands put out ads “promoting Covid vaccination” (54%) or “showing the brand helping others or the community” (52%). Practically none believe brands should “ignore Covid-19 in their ads” (3%) or “stop advertising completely” (4%).

Looking ahead, after dealing with the economic fallout of Covid-19 for more than a year, the highest percentage of respondents in South Africa (31%) remain extremely optimistic about their financial situation improving in the next three months. And more approve of the government’s response to the virus (37%) than disapprove (25%).

How Covid-19 advertising was received

There have been clear winners and losers in the Covid-19 advertising race. Asked which brands responded well to Covid-19 in their advertising, the top two brands mentioned by far, Lifebuoy and Dettol, produced ads informing consumers how to use their soap, sanitiser and disinfectant products to lessen the spread of coronavirus.

Taking a completely different approach, KFC decided to keep its ads light-hearted and entertaining, temporarily blurring out part of the brands well-known slogan, Finger Lickin’ Good, for the sake of public health.

Another noticeable growth trend dictating creative and positioning briefs during the pandemic was the addition of diversity and inclusivity in advertising. Ads portraying people from all backgrounds, regardless of race, ethnicity, gender identity, age, religion, ability and sexual orientation has always been a foundation of a few brands historically.

However, 2020/2021 has seen this explode as a core requirement for the majority. According to our research, rightfully so, with approximately half of respondents (49%) considering it “very important” for brands to portray diversity and inclusivity in their advertising. That number jumps to 62% for respondents aged 15-25, demonstrating heightened social consciousness in the younger demographic.

Societal impacts of Covid-19

According to experts, limiting both the spread and seriousness of infections and returning to normal activities largely hinge on the availability and distribution of vaccines. In another optimistic trend, 62% of respondents in South Africa say they would probably or definitely get the vaccine right away compared to 54% in GeoPoll’s study from April 2021. As they waited for the vaccine to become available, 84% claimed to always wear a mask in public – more than any other country in this study.

South Africa has suffered the highest rate of Covid-19 infections and deaths in Africa. Missteps in the government’s rollout of the vaccine have left millions unvaccinated as the country faced a third wave of the pandemic. It follows that 60% of respondents from South Africa say their concern about Covid-19 is higher or much higher than it was in April. Only 13% say their concern has lessened.

Despite these elevated levels of concern, respondents appear to be learning how to cope with the pandemic. Most (55%) claim their emotional health is better or much better now than it was in April. South Africa does have the highest percentage of respondents that say their emotional health has worsened, however, at 22% (compared to 12% across all nine countries).

About this survey

This study was conducted using GeoPoll’s mobile web platform in July 2021 in Kenya, Nigeria, South Africa, Ghana, Tanzania, Egypt, Brazil, Colombia, and China. The sample size was approximately 400 respondents per country and 3 600 in total, which provides a 5% margin of error and a 95% confidence interval.

Although not purely scientific, as there were no strict measures to limit demographic quotas, a great mix was achieved, with a gender composition of 46% females and 54% males; an age breakdown of 32% ages 16-25, 34% ages 26-35, and 34% ages 36 and over; and some representation from every ADM1 location within each country.

GeoPoll is the pioneer in conducting remote research through mobile-based methodologies in Africa, Asia, and Latin America. Our custom research capabilities allow agencies, brands, and international development organisations to conduct one-off or ongoing surveys on any topic, with results delivered in near real-time.

To download the full report for free or view the survey data in an interactive dashboard, visit the GeoPoll website.

Ricardo Lopes is GeoPoll’s Regional Director Southern Africa. He is a commercial specialist with over 10 years’ experience in managing teams. His background is strongly rooted in media with a thorough understanding of the integral role of communication channels. While at GeoPoll, Lopes has spearheaded the launch of various market research innovation initiatives that have addressed complex African specific data collection challenges. These innovation initiatives have won global acclaim at IIeX Europe. He holds a Bcom Honours Degree in Marketing with an undergrade in Economics from Monash University.

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The impact of Covid-19 on the marketing mix

26 August 2021

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If forecasting has been adversely impacted by Covid-19, and therefore affected associated business and marketing strategies, to what extent has the pandemic ‘injured’ the 7Ps? DR MYLES WAKEHAM and CARL WAKEHAM share their opinions.

The isolated period brought about by Covid-19 has been ongoing for over 18 months. For marketers, the data acquired over this period will certainly skew what will transpire in the future.

Most people are aware marketing consists of seven elements, which are collectively known as the extended marketing mix. They include product, price, place (distribution), promotion, people, processes and physical evidence. The latter three are usually associated with a service. If the accuracy of forecasting has been adversely impacted, and therefore associated business and marketing strategies, to what extent has the pandemic ‘injured’ the 7Ps?

With most crises, many humans tend to descend Maslow’s Hierarchy of Needs towards the essentials such as food, security and safety. Unfortunately, the isolation demanded by Covid-19 protocols has forced aside the need for physical contact with friends and colleagues. As a result of this, people have moved to technology to commune with others, an unhealthy arm’s length divide culminating in ‘low-touch’ or even ‘no-touch’ relationships.

So, with the above in mind and the pendulous swing of changing consumer behaviour, to what extent has the pandemic affected the seven elements of the mix? These assertions are based on the opinions of the authors and were developed during the pandemic. Whatever transpires might not happen, as Covid-19 is a moving target, and one that changes at the slightest whim.

Product/service
Although existing products will not change much, the pandemic has certainly spurred scientists and pharmacists into developing detergents, cleansers and other materials to reduce the likelihood of people contracting Covid-19. A plethora of germ, bacteria and virus killers that negate the threat of dangerous bacteria and germs have flooded the market. Covid-19 has also brought about rethinking around producing goods with long sales cycles. Producing and carrying too much stock increases carrying costs, reducing profits over the medium to long term.It has delivered an opportunity to evaluate the size (breadth and depth) of their ranges in order to cull slow-moving stock, thus increasing profits and decreasing dead stock. Many researchers suggest that offering a substantial number of products does not necessarily contribute to profitability, although a reduction in range could lead to short-term category sales losses but not at the expense of long-term sales. The effect on customer profitability and lifetime value is unknown and these could decline if certain products are no longer available.From a service point of view, much has emerged. Organisations have sprung up overnight to provide a range of services from personal food delivery, the delivery of prescription and other drugs to patients at home, food preparation, care for the elderly and infirm at home, lift clubs (to avoid contact with passengers on buses and trains), on-the-road hairstylists and beauticians … an endless list of innovations.

Price
Price is the only revenue-generating element in the marketing mix. Sadly, it has been badly prostituted as shortages have appeared through frenzied buying, insufficient or inefficient logistics and a drop in production. The illicit trade of cigarette and alcohol at the beginning of the pandemic saw prices increasing from R20.00 for a packet of 20 cigarettes to over R120.00 a packet. Consumers had to pay a premium for their alcohol beverages, with some paying up to R450.00 for a bottle of whisky. Even the shortage of toilet paper impacted on family budgets. The lockdowns adverse impact of the prices of vitals is a consequence of irregular fluctuations in supply and demand.Finally, our view is that price must be used with great care during this crisis. The price sensitivity of consumers increases during a contraction, and the extent to which it increases is dependent on various factors, such as the uniqueness of the offering, the importance of the product to the customer, and possibly the brand equity in the eyes of the buyer. Now more than ever, it is about creating products that offer the consumer ‘value for money’.

Place
There is no doubt that the pandemic’s greatest influence is on distribution. Covid-19 drove people from shopping at supermarkets and shops. This led to a demand for home delivery services and even Uber flourished as a result of being used to transport food, groceries, personal hygiene products and medication. Some pharmacies and retailers saw the opportunity for differentiation and either purchased or hired vehicles to provide home delivery or outsourced such delivery to service providers. Shopping patterns have shifted to online buying and as a result, online stores are experiencing enormous increases in turnover. Consumers who were not previously familiar with online shopping are converting and we expect this shift will be permanent. Encouragingly, there has been a move towards buying more locally produced food.

Promotions
The pandemic forced businesses and brands to re-evaluate current and future advertising and marketing campaigns. While brands need to strike the right tone, changes in the market and increased competition call for creative and aggressive marketing practices.Only the highest traffic and trusted media platforms will weather the pandemic storm. Digital channels reflect increases in usage and offer mobile, social media and video opportunities, leading to a modification in the media mix.In terms of messaging, consumers want brands to focus on value, transparency, authenticity, honesty and social awareness. Communicating a sense of purpose can tap into nostalgia and should generate greater loyalty over time.Regardless of the industry or level of digital knowhow, the impact on consumer behavior is clear and much of the change will be permanent. Organisations must ensure that their products, services, messaging and marketing plans are tuned into these changes and remain dynamic.

People
Employees and customers are an essential element of the extended marketing mix because service is performance, and performance cannot be separated from the performer. Sadly, many people have lost their jobs and careers as a result of the virus. Many restaurants may never open their doors again and the same can be said for fast food franchises, hotels, taverns and B&Bs. As the pandemic continues, further unemployment and closures are almost guaranteed, reducing consumer choice, and heralding potential price increases.

Processes
Processes determine the method and order of services provided by an organisation and ensures the value proposition promised to customers is maintained. Poorly designed and implemented processes result in slow, and sub-standard service delivery, frustrating customers. As technology improves, the personal touch has been replaced by automation, which has in many ways alienated long-term customers, especially the aged.Forced seclusion has highlighted the crucial role of communication with suppliers and retailers. Personal interchanges by means of the telephone are more effective than poorly recorded automated messages. Organisations wanting to forge and maintain strong relationships with customers must ‘humanise’ their processes with a focus on customer-centricity and not purely revenue.

Physical evidence
Physical evidence refers to everything customers see when interacting with a business. This includes the physical environment, layout and interior design and whether employees are professional and service oriented. Keeping the customer engaged will lead increasing spend during the visit.How important will ‘physical evidence’ be in the future? Years ago, significant retailer space was taken up by storage. As a result of Just-in-Time logistics, storage space has shrunk and improved the area allocated to the shopper’s experience. With online shopping volumes increasing, will brick and mortar retail outlets change in size and locale to be replaced by smaller outlet offerings. As the months go by, many marketing departments and organisations will seek to take up the challenges of creativity, innovation and customer-centricity, and look to create, implement and control marketing strategies and practices that will aid business through this ‘new normal’. Creative and strategic marketing campaigns with targeted advertising – including traditional and online media – will be the focus of many marketers. As will artificial intelligence and the effective use of other technologies to win the hearts, minds and pockets of a damaged society.

Sean Kruger
The IMM Graduate School’s Dr Myles Wakeham is a motivated and well-connected academic and businessman. He has consulted to a variety of institutions and organisations, such as the South African National Treasury, National, provincial and local government. He is also involved in international research, and with an academic consortium has researched the impact of IT on university education.

Carl Wakeham is an ex-marketing executive specialising in business and brand strategy. He is director of and shareholder in a marketing company based in Johannesburg and a founding member of the largest independent advertising network in Africa. He has worked throughout Africa, the Far East and Europe. Wakeham has a BA and MBA and has studied other business related fields. He remains actively involved in a digital media company.

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How to help entrepreneurs adopt cutting edge technologies

26 August 2021

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Entrepreneurs need to tap into the Fourth Industrial Revolution and its technological innovations to enhance their products and services via digital capabilities, write SEAN KRUGER and ADRIANA ALETTA STEYN. These include continuously evolving AI, adaptive robotics, the Internet of Things, big data, drones, 5G and cloud systems.

Entrepreneurs are known to drive innovation and progress in various fields. The Fourth Industrial Revolution has provided an unprecedented platform to do so.

This global concept was coined in 2016 by Professor Klaus Schwab. He said that this revolution entails “nothing less than the transformation of humankind” because it is the integration of technologies across the digital, physical and biological spheres.

Moreover, the speed at which this is happening is influencing work, services, educational needs and people’s everyday activities.

Entrepreneurs have the potential to create entirely new ways of providing goods and services through technological innovations. In South Africa entrepreneurs have done so on various fronts.

One example is Jobox, a platform that helps optimise the freelance economy and assists in getting people employed. Another is Strait Access Technologies, a start-up company that’s driving breakthrough medical devices for heart valve replacement.

This requires a certain level of comprehension about what kinds of technologies are available, but also how they can enhance products and services with digital capabilities.

Our research aimed to find out what competencies entrepreneurs need so that they can best use current technologies to seize opportunities and create successful businesses. These technologies include artificial intelligence, adaptive robotics, the Internet of Things, big data, drones, 5G and cloud systems. All are continuously evolving.

What we looked for and what we found

Our study found that the technology landscape is vastly complex because of the potential for integration, as well as the fact that technologies are constantly evolving.

For entrepreneurs to develop relevant products, they need core competencies to tackle the new age technologies and reap the potential rewards.

Our study confirmed that innovation and creativity remain fundamental skills. But additional competencies are also needed. These include the ability to cross-link business units through digital connectivity, rapid prototyping, and understanding how data-driven decisions can enable automated and personalised service offerings.

To find out what entrepreneurs would need, we ourselves delved into advanced technologies – such as machine learning – to confirm the accuracy of interview transcriptions and identify any possible oversights. We also looked at 3D printing as a technology that entrepreneurs could use to rapidly prototype using computer aided design.

We applied this in one case where a company was creating a product that could be deployed from the ground to disable drones in places where they were not permitted.

For easier understanding, we split the Fourth Industrial Revolution technologies into three different layers. The first was the physical layer, which consists of robotics and drones. The second was the connectivity layer, which connects these technologies, such as 5G.

Finally the digital layer, where data processing helps formulate meaningful insights. Technologies that could be used here include cloud services and artificial intelligence.

What emerged was that entrepreneurs were capable of creating new ventures if they developed new competencies. One was industrial automation using the Internet of Things to connect devices across a water treatment plant. The Internet of Things allows physical devices collecting data in different locations to be connected and for the data to be shared.

In this case this technology provided automated systems to ensure energy efficiency and could identify machinery breakdowns before they happened.

Another was a cloud based system using eye-tracking data to determine client engagement with textbooks. This was then used to note which areas were overlooked by students, or where there were areas of difficulty.

Our data analysis showed there was a wide scope for entrepreneurial competencies that could be used not only in a university context, but also in existing job roles.

Going forward

South Africa needs to continue to make strides to harness potential benefits by supporting entrepreneurs. Although government has produced a white paper to this end, other efforts could be strengthened. These include raising awareness about government programmes and enhancing access to new forms of financing to launch businesses.

In addition, academic institutions and schools need to continually blend interdisciplinary skills towards competencies for graduates as well as those who engage in life-long learning. Most importantly, institutions must incorporate participation in some of the programmes that are already under way as well as forums where these skills can be applied.

If this development can be guided, South Africa’s entrepreneurial landscape can flourish. This won’t only drive economic growth. It will also get young people economically active and create jobs.

Sean Kruger
Coordinator Strategic Innovation, University of Pretoria

Adriana Aletta Steyn
Senior Lecturer in Informatics, University of Pretoria

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The impact of artificial intelligence on marketing

26 August 2021

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One thing is for sure: AI marketing is not going anywhere soon. Recent research suggests 80% of marketing leaders believe AI will impact marketing in the next three years, writes DEBBIE PEARSON.

Today, common definitions of artificial intelligence (AI) focus on automation. We know machine learning provides computers with the ability to learn. But what opportunities does this create for businesses and marketers, and how does this impact marketing in the 21st century?

According to Forrester, global marketing automation spend will reach $25 billion by 2023.

The number of companies providing services in this space is growing with Chiefmartech suggesting an increase of over 5000% during the last decade. Currently, the market is fragmented and there is a lack of specialist marketing technology skills, both client and agency side. However, skills development and a broader understanding of AI will further increase the pace of progress in marketing over the next couple of years.

Research from Microsoft and Accenture suggests 80% of marketing leaders believe AI will impact marketing in the next three years, with 84% of 80% expecting that AI will help enable better workflow. It is not just about the automation of business process though. Marketers need to focus on using AI and machine learning to create greater personalisation and value at customer touchpoints, thus improving human decision-making and customer interactions. This potentially leads to greater competitive advantage.

Professor Wided Batat suggests by gaining access to how customers feel at emotional touchpoints on the customer journey, marketers can interact with actual and potential customers to involve them in co-creation of products and services. Acting on positive and negative feedback, marketers can help improve quality and inform the design on customer experience and experiential marketing activities.

Device types, interfaces and intelligent agents are increasingly part of customer and consumer decision-making processes. AI can help considerations, options and guide choices. Market choices now need to be viewed as a co-function of marketing technology and customer/consumer preferences, such as using touch to shape product preferences.

The Pantene case study

But, how does this work in reality? As part of its CSR programme in Israel, Proctor and Gamble’s Pantene brand’s mission is to provide every woman facing hair loss due to cancer treatment with a free, high quality, real hair wig. Traditionally, the company relied on hair donations, but relying on the same supporters year on year led to donor fatigue.

A campaign was created to develop the pool of hair donors. The minimum length of hair for a donor is 20 centimetres. Using AI, an Instagram crawler was developed to identify what long hair looks like on the platform. This resulted in the identification of a unique audience of 100 000 women in Israel with hair 20 centimetres long or longer.

In addition, AI was used in smart mirrors in shops to identify possible donors and would tell any potential donor of her eligibility. Celebrity endorsement on YouTube and Playbuzz, the interactive quiz platform, were also part of the campaign. Overall, in a two-month period, the campaign messages reached 1.5 million women, resulting in the identification 750 000 potential donors. The year-on-year increase in hair donations was 15%, meaning 14 000 wigs could be produced. A great example of the social role of marketing and AI combined.

Communications provider, COLT, created a machine learning tool called CAST to improve its Net Promoter Score (NPS). The tool understands verbatim text, identifies areas for improving customer experience and solves the issues. As a result, NPS increased 40%. Bain Consulting report that COLT’s NPS is twice that of its nearest competitor.

There are, of course, other practical considerations to bear in mind when investing in AI for marketing. A significant factor is organisational culture. The leadership style, the attitude to risk and the firm’s agility and ability to change all need to be taken into account. The key to success and survival is the readiness of the company to accept and embrace AI, as well as the adaptability of the firm to accept it.

Benefits and pitfalls still unfolding

Furthermore, trust and safety are critical when using AI in marketing. AI solutions need to be robust and secure. The benefits and pitfalls of AI in marketing are still unfolding. It is important to deliver technological, cultural and economic changes in a responsible manner and in a collaborative way.

Siemens suggest responsible use of AI could help shape sustainable development, foster inclusiveness, guarantee data privacy, promote accountability and liability and share benefits through co-creation of value for all stakeholders.

The University of Oxford’s Future of Humanity Institute believes all jobs will be automated in the next 120 years. At the moment, AI and machines need the help of marketers to make sense of the data, to apply expertise and to be creative – however in a 2018 keynote address at The World Economic Forum, given by Professor Yuval Noah Harari, he asked, ‘Will the future be human?’ He presents a future world of ‘digital dictatorships’, whereby those who control the data, control the world. This may not necessarily be governments.

Marketers need to embrace the data and technologies, incorporate them into job specifications and develop new skills. The growth of big data and the application of AI will continue to bring disruption across industries. One thing is for sure; AI in marketing is not going away any time soon.

Marketers need to focus on using AI and machine learning to create greater personalisation and value at customer touchpoints

It is important to deliver technological, cultural and economic changes in a responsible manner and in a collaborative way.

Debbie Pearson – MBA, MSc, PGCE (PCET), FHEA, FISM, and Chartered Marketer – has a commercial background primarily in telecommunications. She has worked in various sales and marketing roles for corporate organisations. Her work has taken her to diverse markets, ranging from China and the USA to the African continent, as well as all over Europe. While undertaking her MBA studies, Pearson was approached to teach CIM professional qualifications. This led to her qualifying as teacher of adults, which she continues to do at universities and for professional institutes. Pearson runs a consultancy business, working with clients to improve performance in marketing and sales. She acts as a mentor for alumni wishing to progress professional marketing careers. She also works pro bono for charitable organisations.

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Three sustainability success levers to breathe growth into your business in Africa

26 August 2021

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Image By Karin Du Chenne, Chief Growth Officer, Middle East & Africa at Kantar

By putting people, planet, and purpose ahead of profit, forward-thinking brands can lead the way to a more positive future for all, writes KARIN DU CHENNE.

If you’ll forgive me for saying the Covid-19 pandemic comes with a silver lining, it’s that all the associated disruption has cemented sustainability as an essential consideration in going forward. By putting people, planet, and purpose ahead of profit, forward-thinking brands can lead the way to a more positive future for all. Here are three ideas to tap into opportunities in the current climate and unlock sustainable growth for your business…
It’s 2021 and sustainability is finally no longer about ticking the CSR box or tacking vague promises of becoming more environmentally friendly onto your 10-year growth plan. It is now a key business imperative – ethically aware and climate-conscious consumers now expect government, businesses, and brands alike to lead the way and help them make more sustainable choices. It’s vital to embed the principles of sustainability into your everyday business practices.
All this can seem overwhelming, but thankfully the UN’s Sustainable Development Goals (SDGs) highlight 17 action areas to work towards by 2030.

To make it more practical, here are three examples of businesses that have put sustainability at the heart of all they do which we can use for inspiration in how to drive action:

1. Sustainability as a living purpose

I love the work that the Cadbury’s team and Ogilvy have been doing that I saw on a recent IAB webinar, showing the power of Cadbury’s renewed purpose of sustainability. They have built on the successful Joy positioning to add local relevance. In 2019 they kicked off with a focus on generosity, encouraging folks to exchange pre-loved toys and books for chocolate. Unfortunately, due to COVID-19, this was no longer possible in 2020. Undeterred and driven by their purpose, the team pivoted and moved to an equally important issue in our country – literacy. With only 2% of children’s books published commercially in South Africa being available in local African languages, there was an obvious opportunity to change this and inspire social change.So, they asked people to translate just one word into their language. That intrinsic spirit of generosity saw many doing much more, with South Africa’s collective creativity collaborating and crowdsourcing the writing, essentially rewriting local narratives in our native languages. Cadbury then partnered with Nal’ibali and a range of South African authors to use these words to create children’s story books in African languages, published online in a virtual library. #ReadtoSucceed

The result? Enchanting and fantastical tales, in all 11 official languages, to inspire that love of reading with a mission that builds on Nelson Mandela’s famous quote, “If you talk to a man in a language he understands, that goes to his head. If you talk to him in his own language, that goes to his heart.”
That’s the essence of sustainability in action, as the partnership not only increases access to quality education but also reduces inequality and makes a real difference in our local communities.

2. Sustainability makes good business sense

If you need to convince your CFO/CEO about the bottom line-boosting aspects of sustainability, show them this chart. There’s much more to it than the feel-good factor, as Kantar BrandZ shows the importance of reputation on business growth – an interplay of purpose, corporate reputation, and consumer trust. Further, BCG has shown, “Companies that outperform in important social and environmental areas achieve higher valuations and higher margins.”

Just look at Amazon. What began as a humble online bookstore has grown through purposeful engagement with customers into the most valuable brand in the world, valued at $683,852 million for the third year in a row in the 2021 Kantar BrandZ Most Valuable Global Brands. It’s essentially an ecosystem that’s grown and led by data and trends and their purpose to be the earth’s most customer-centric company.Then there’s Piñatex, dubbed “one of those rare products of design thinking that hits all the sustainability buttons at once” – it’s a vegan, sustainable alternative to leather made from the fibre in discarded pineapple leaves that’s been used in Nike’s new ‘Happy Pineapple’ sneaker collection.

3. Sustainability as the key to unlocking the power of e-commerce

The pandemic has played a crucial role in accelerating the digital revolution and kickstarted ecommerce. There is such an opportunity to embrace Sustainability Goal 8 – Decent work and economic growth. Just look at how the number of delivery motorbikes has mushroomed in South Africa.Because when the world took the ‘stay at home and do what you can digitally’ mandate to heart, retailers quickly latched onto the idea of streamlining the process of ordering online for home delivery – whether through the mobile web, WhatsApp or even SMS. This also saw a jump in job opportunities, with the likes of Checkers Sixty60, Pick n Pay ASAP and Woolworths Dash now offering same-day delivery services and other more local smaller players like Langa’s Cloudy Deliveries quickly gaining traction.With the realisation that parts of the world (Africa) still don’t have formal roads/maps, Google innovated to launch Plus Codes, designed to support ecommerce via the easy identification of locations that don’t have defined addresses or prove difficult to find. These digital addresses are automatically generated through a mathematical formula, which combines the latitude and longitude coordinates of the location. While a simple enough concept of location sharing, the impact is immense, as it means delivery is no longer a problem for the previously unaddressed. It’s ultimately a move that’s sustainable, solves a global challenge and is easily measurable.Inspired by these examples? The first step is deciding you want to become more sustainable, as the ideas flow from there. Get in touch to find out more about Kantar’s Sustainable Transformation Practice, which actively helps clients not only to talk about sustainability but start walking the talk. Also join the conversation on LinkedIn and Twitter and attend our 2021 Kantar BrandZ Top 30 Most Valuable South African Brands event on 1 September.

As Chief Growth Officer, Middle East & Africa at Kantar, Karin thrives on challenge, runs on adventure and is passionate about understanding what makes people tick. She has 25+ years’ experience in driving marketing and communications that deliver business results by helping employees and clients alike harness the power of digital to achieve better insights and turn those insights into opportunities.

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Journal of Strategic Marketing Newsletter – August 2021

25 August 2021

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Journal of Strategic Marketing Newsletter – August 2021

A NOTE ON MARKETING THE FUTURE

We’re at our best when we’re at our worst. There are no half measures for us South Africans. That is the sad but also the uplifting truth. It took the recent major crisis to once more release our spirit, empathy and pragmatic work ethic to deal with the fallout of what the worst of us deliberately planned and executed to strike an economic and social blow to the nation.

We watched with horror and sadness as the unrest and looting unfolded live on our screens (hats off to the young reporters from our three major broadcasters SABC, eNCA and Newzroom Afrika for their extraordinary and brave work keeping the nation informed).

And then we had lumps in our throats and tears in our eyes as we witnessed South Africans (yes, the wholeness of us, not the splintered factions) haul out their brooms and bags and literally hit the streets and devastated malls to clean up in the aftermath of the orgy of violence and looting.

We saw media and other businesses rally to raise funds to restore community radio stations destroyed by looters, and to help rebuild SMEs and family-owned shops. Big business and government (finally) swung into action to ensure the free flow of vital goods along the N2. The freight and logistics industry formed a forum to share information between the private sector and government to rebuild supply chains. For once, the ANC’s tired old refrain of Together, We Can Do More actually hit the right note.

Now, in the aftermath, the truth of how this crisis unfolded is beginning to emerge. And it highlights how WhatsApp was weaponised to plan and incite the attack on South Africa. We tend to laugh at the South Africanism, or ‘mzansitaal’, “they belong to the same WhatsApp group” to describe similar mindsets or actions. But in this case, the meaning is so much darker.

Technology, like South Africa, gives us the best of things and the worst of things too. But in this issue, we look at how it can help marketers and business and entrepreneurs make the best of their businesses. Debbie Pearson gives insights into the practical use of artificial intelligence and machine learning in marketing.

Sean Kruger and Adriana Aletta Steyn look at how entrepreneurs can harness technology to drive progress and innovation through by enhancing products and services with digital capabilities including artificial intelligence, adaptive robotics, the Internet of Things, big data, drones, 5G and cloud systems. The IMM Graduate School’s Myles Wakeham and Carl Wakehman unpack how Covid-19 changed the 7Ps of marketing. And in our lead story, Kantar’s Karin du Chenne drives home how important it is to make sustainability a business imperative. By putting people, planet, and purpose ahead of profit, forward-thinking brands can lead the way to a more positive future for all.

And so say all of us.
Glenda

Three sustainability success levers to breathe growth into your business in Africa

By putting people, planet, and purpose ahead of profit, forward-thinking brands can lead the way to a more positive future for all, writes KARIN DU CHENNE.

If you’ll forgive me for saying the Covid-19 pandemic comes with a silver lining, it’s that all the associated disruption has cemented sustainability as an essential consideration in going forward. By putting people, planet, and purpose ahead of profit, forward-thinking brands can lead the way to a more positive future for all. Here are three ideas to tap into opportunities in the current climate and unlock sustainable growth for your business…

It’s 2021 and sustainability is finally no longer about ticking the CSR box or tacking vague promises of becoming more environmentally friendly onto your 10-year growth plan. It is now a key business imperative – ethically aware and climate-conscious consumers now expect government, businesses, and brands alike to lead the way and help them make more sustainable choices. It’s vital to embed the principles of sustainability into your everyday business practices.

The impact of artificial intelligence on marketing

One thing is for sure: AI marketing is not going anywhere soon. Recent research suggests 80% of marketing leaders believe AI will impact marketing in the next three years, writes DEBBIE PEARSON.

Today, common definitions of artificial intelligence (AI) focus on automation. We know machine learning provides computers with the ability to learn. But what opportunities does this create for businesses and marketers, and how does this impact marketing in the 21st century?

According to Forrester, global marketing automation spend will reach $25 billion by 2023.

How to help entrepreneurs adopt cutting edge technologies

Entrepreneurs need to tap into the Fourth Industrial Revolution and its technological innovations to enhance their products and services via digital capabilities, write SEAN KRUGER and ADRIANA ALETTA STEYN. These include continuously evolving AI, adaptive robotics, the Internet of Things, big data, drones, 5G and cloud systems.

Entrepreneurs are known to drive innovation and progress in various fields. The Fourth Industrial Revolution has provided an unprecedented platform to do so.

This global concept was coined in 2016 by Professor Klaus Schwab. He said that this revolution entails “nothing less than the transformation of humankind” because it is the integration of technologies across the digital, physical and biological spheres.

Moreover, the speed at which this is happening is influencing work, services, educational needs and people’s everyday activities.

The impact of Covid-19 on the marketing mix

If forecasting has been adversely impacted by Covid-19, and therefore affected associated business and marketing strategies, to what extent has the pandemic ‘injured’ the 7Ps? DR MYLES WAKEHAM and CARL WAKEHAM share their opinions.

The isolated period brought about by Covid-19 has been ongoing for over 18 months. For marketers, the data acquired over this period will certainly skew what will transpire in the future.

Most people are aware marketing consists of seven elements, which are collectively known as the extended marketing mix. They include product, price, place (distribution), promotion, people, processes and physical evidence. The latter three are usually associated with a service. If the accuracy of forecasting has been adversely impacted, and therefore associated business and marketing strategies, to what extent has the pandemic ‘injured’ the 7Ps?

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Gartner’s annual CMO Spend Survey shows devastating decline in budgets

The annual Gartner CMO Spend Survey shows that marketing budgets have fallen to their lowest recorded level. The results of the survey reveal budgets dropped to 6.4% of company revenue in 2021 from 11% in 2020. Four hundred CMO and marketing leaders from North America, the UK, France and Germany were surveyed from March 2021 through May 2021. The research tracked critical areas marketers are investing in and where cuts are being made from people, programmes and technologies. Ewan McIntyre, co-chief of research and vice president analyst in the Gartner for Marketers practice said most CMOs had expected budgets to bounce back in 2021. “This budgetary optimism was misplaced, as marketing budgets have fallen to their lowest level in the history of Gartner’s CMO Spend Survey,” he said. “However, these cuts have been a slow burn over the course of the last year, where many marketing budgets have not recovered what was originally lost.” Gartner reported that no industry achieved a double-digit budget in 2021 but that consumer products and goods companies reported the strongest 2021 marketing budgets at 8.3% of company revenue. Large enterprises were hardest hit with the lowest average marketing budget of just 5.7%. Companies with revenue of under $500 million reported the highest allocation with an average budget of 8.6% of revenue.

EF-Active sets sights on new markets in Africa

Strategic marketer and EF-Active founder and CEO, Salil Dhingra, is already exporting his hygiene products into Africa, establishing a presence in Mauritius, Ghana, Botswana, Zimbabwe and Mozambique. EF-Active’s entire product line has been endorsed and regulated by the Department of Trade, Industry and Competition in South Africa. “The countries we are exporting to now do not offer manufacturing opportunities, so we are merely responding to the need to import a decent, reliable product, which we can do and successfully cater to their demands,” Dhingra said. Angola and Nigeria are the next two territories where EF-Active anticipates landing and serving the broader population with their key products.

DMA of SA launches online compliance took-kit

The Direct Marketing Association of SA has created a handy online tool-kit that enables members to build and maintain their own compliance framework. This is required in terms of Regulation 4 of the Protection of Personal Information Act (POPIA). “The Data Protection Compliance Programme is helping to ensure our members convert good intentions around privacy to actual POPIA compliance,” said CEO David Dickens. In addition to the online POPI Act risk assessment tool-kit, the DPCP also offers online training opportunities and enables the automated generation of necessary compliance documentation.

The way the cookie is crumbling

Google might be delaying the complete phasing out of third party cookies to then end of 2023, but marketers still have to prepare for a cookie-free world. WARC is running a series on Future of Identity looking into this scenario. RSquared Global Ventures’ Ranga Somanathan, writing on marketing imperatives for a cookieless world, said: “The shift in focus from third-party to first-party cookies, embracing contextual advertising, and building robust CRM will be key imperatives for the marketing renaissance and bring the advertising world back from a marketing dystopia.” Strong stuff.

IMM Graduate School graduates now qualify for CIM accreditation

IMM Graduate School graduates in various marketing programmes now have the opportunity to get an international accreditation from Chartered Institute of Marketing (CIM) by getting recognition for their IMM degree and completing a module from sister brand, The Oxford Professional Education group (OXPEG). The CIM is a leading professional body for marketers worldwide and exists to develop the marketing profession, maintain professional standards and improve the skills of marketing practitioners. IMM Graduate School students will therefore have the opportunity to gain professional qualifications through the CIM Graduate Gateway. CIM qualifications are highly sought after by employers, and their content is reflected in the IMM Graduate School’s own degrees, which ensure students are equipped with the best opportunities for a successful marketing career.

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