Journal of Strategic Marketing Newsletter – January 2021

22 January 2021

No comments

Categories: Newsletters

Journal of Strategic Marketing Newsletter – January 2021

A NOTE ON MARKETING THE FUTURE

It is 12 months since news first started coming out of Wuhan in China about a deadly virus, one that took just a few weeks to become a pandemic. It’s been a year of living dangerously, much of it in lockdown.

We have a coronavirus vaccine on the horizon, but are still in the dark in South Africa as to how it will be rolled out, and how long it will take to get the majority of our population vaccinated.

The rollout will be one of the biggest marketing, communications, supply chain and logistical campaigns ever seen in South Africa. It will be done against a backdrop of mistrust not just in the vaccine, but also of government itself.

After the personal protective equipment tender scandal of 2020, to say South Africans are suspicious of government’s motives and ability to do the right thing while ‘covidpreneurs’ are so terribly efficient at doing the wrong thing, is an understatement.

Cartoonist Zapiro’s cartoon in Daily Maverick in mid-January said it all: Tagged “The Only South Africans Who Were Ready For The Second Wave…” the drawing showed PPE ‘covidpreneurs’ riding the wave with bags of money, PPE and black market vaccines. Oh dear.

Meanwhile, health authorities and companies have a massive job ahead to persuade people to be vaccinated, educate them on why it’s so important, make sure it’s done fairly and transparently, and importantly, that the supply chain operates smoothly and efficiently and the vaccines get where they’re supposed to go.

In our first newsletter of 2021, we’ve taken a look at how the insurance sector is marketing its way out of the pandemic. Some reputations were badly damaged last year as companies battled for business interruption relief, while consumers were hit hard by the lockdown and the economy. With insurance already a grudge buy, insurers have had to live up to their brand promises and deliver.

Another business sector hard hit by the pandemic is the alcohol industry. With a third ban on booze kicking off just before new year celebrations, and government adamant its amended liquor bill will clamp down on the industry, Aware.org’s CEO, Ingrid Louw, says this could have a profound impact on alcohol marketing in the near future.

Kate Njorogi and Ndeye Diagne report on how businesses in Sub-Saharan Africa have responded to the coronavirus crisis and the impact of the subsequent uptake of digital solutions. Ecommerce is on the rise, they say, and is the top growth priority in 2021.

The IMM Graduate School is launching two progressive new supply chain qualifications this year, a hugely important step considering how supply chain management has been upended and the massive impact of technology on the discipline. For the first time in any SCM course, AI, digitalisation and blockchain technology will be introduced. Our story reveals how important these qualifications are in a world turned upside down while we navigate the Fourth Industrial Revolution.

Stay safe in 2021!

Glenda

Battlefield insurance: Marketing through the pandemic

In June 2020, as South Africa hit its first Covid-19 peak, over 220 new adverts for insurance were flighted in South Africa. In the background, companies were fighting insurance companies for business interruption claims. GLENDA NEVILL takes a look at the tough environment insurers are operating in, and how they’re marketing their way through the global pandemic.

In the first week of 2021, one of South Africa’s largest insurers finally committed to paying clients’ business interruption claims, particularly for those holding hospitality and leisure policies. Admittedly, it took a few adverse court rulings before it caved to the pressure and lost all hope of recovering its reputation.

“It is a major victory… Some would say it’s too little too late because it’s been months now of tarnished reputations and heels being dug in…” said consumer journalist, Wendy Knowler, on 702.

Finding the true north of your 2021 brand strategy: The African edition

There’s a long road to recovery ahead, which will doubtless see brands face new challenges and opportunities in Africa, and in Kenya and Nigeria in particular. KATE NJOROGI and NDEYE DIAGNE look at how findings from Kantar’s Global Business Compass can help brands navigate the unknown.

With CMOs under increasing pressure to prove the effectiveness of the strategies they’ve put in place for the coming months, evidence-based decision-making is more essential now than ever. Kantar’s sub-Saharan Africa findings emanating from our Global Business Compass can help brands navigate the unknown with insights to contextualise, align and inform their recovery strategies in 2021 and beyond.

One for the road: Significant business implications lie ahead for the alcohol industry and its marketing ecosystem

The advertising and marketing of alcohol is not currently subject to legislation. But the National Liquor Amendment Bill is with the dtic minister, and if it passes, could have a profound impact on the way in which the alcohol industry markets its wares, writes INGRID LOUW.

That South Africa is a nation of heavy drinkers is not disputed. The country is ranked as the sixth biggest drinking nation in the world by the World Health Organisation in terms of average alcohol consumption.

Excessive drinking poses a significant health and lifestyle risk for many, and has a concomitant negative impact on our fiscus. It also puts massive pressure on the (public and private) healthcare system. We are burdoned with high rates of irresponsible alcohol consumption behaviours and patterns, and these contribute to alcohol-related harm including FASD, binge drinking, underage drinking, drink driving and walking, and related social crimes.

Leveraging your supply chain to ensure a burgeoning bottom line

The IMM Graduate School is adding two new SCM qualifications to its arsenal: A Higher Certificate in Supply Chain Management and BCom Honours in Supply Chain Management. They will be accredited by the internationally recognised Chartered Institute of Logistics and Transport, a first for any SCM tertiary qualification in South Africa.

Although supply chain management (SCM) and the pivotal role that it plays in business hasn’t always been widely recognised in the past, an unprecedented 2020, with its COVID-19 pandemic has made it abundantly clear that competent and proficient SCM is a significant catalyst when it comes to economic growth, both locally and internationally.

So, what is SCM and how are businesses able to embrace the ongoing learnings from last and this year and leverage their SCM to make their bottom line swell?

Subscribe to stay informed whenever a new issue is published

Tech execs’ take on marketing 2021

Shifts in B2B marketing, verifying human engagement, stark divides in marketing budget spend, privacy regulations… these are just some of the marketing trends on tech executives’ radar for 2021. Speaking to Forbes, the execs outlined their key trends for the year. Dan Lowden, CMO for White Ops, believes marketers will “partner with specialists that can help them accurately gauge if their campaigns are targeting real humans – resulting in better customer experience, ensuring higher engagement, bringing visibility to cleaner data, improving the company’s compliance position and driving stronger ROI across marketing campaigns”. CMO of AppNeta, Amanda Bohne, reckons company culture will play a greater role in recruiting marketing talent. Speaking on the impact of remote working, she said “Top marketers will now be sought after by companies located across the country, enabling them to potentially live somewhere different or more affordable than where their current employer is located.”

A boon for marketing freelancers

Fundi.Digital has introduced a referral programme and a Slack community to drive networking, increase collaboration and grow work opportunities for marketing freelancers in South Africa. Hillel Chemel and Jonathan Mayer launched Fundi.Digital as a freelancing marketplace. “Freelancing can be isolating. It is also great to be able to bounce ideas off other people and get advice on challenges you might be facing in the big wide world of freelancing. Our clients also know that they not only get the freelancer they contract, they get a whole community behind them as well. Because nothing beats someone ‘putting in a good word’,” they said. Fundi.Digital’s community includes agencies and start-up companies needing specialist marketing skills, and South African freelancers providing data analytics, SEO, performance marketing, social strategy, marketing automation, design and content marketing expertise.

2021: The year for branded content

The Drum believes 2021 is the year branded content will come into its own. Ottavio Nava, co-founder and chief executive at We Are Social Italy and Spain, said, “With all the smartest marketers paying attention, I feel safe predicting that 2021 is going to be a memorable year for this highly creative marketing technique”. The pandemic, of course, has something to do with this. “The pandemic has forced more people than ever to consume content digitally at home, which has let brand content come into its own in recent months. This shift can be put down to the crisis accelerating a number of important on-going trends, just as much as it can be attributed to brands having access to a more captive audience,” Nava wrote.

Burger King rebrands for the first time in 20 years

From logos to fonts, colours and packaging to uniforms, Burger King has rung in a slew of design and brand changes for the first time since last century. “Design is one of the most essential tools we have for communicating who we are and what we value, and it plays a vital role in creating desire for our food and maximising guests’ experience,” said Raphael Abreu, Restaurant Brands International head of design. “We wanted to use design to get people to crave our food; its flame-grilling perfection and above all, its taste.” Burger King said the announcement signalled a commitment to digital-first expression and recent improvements to taste and food quality, through the removal of colours, flavours, and preservatives from artificial sources off menu items, as well as an ambitious pledge to environmental sustainability.

One for the road: Significant business implications lie ahead for the alcohol industry and its marketing ecosystem

22 January 2021

No comments

Categories: Newsletters

This was highlighted by the fact we entered 2021 with another alcohol ban in place as we battle the second surge of Covid-19 infections. It was the third since Covid-19 landed on our shores back in March 2020.

Nevertheless, the alcohol industry does play a positive role in ensuring livelihoods, however, by contributing over R173 billion to the GDP and R72 billion in tax and excise duty and supporting approximately one million livelihoods across the alcohol value chain – from agriculture to glass manufacturing, advertising, retail and hospitality.

But there is a growing view within government that the alcohol industry is not doing enough to reduce alcohol-related harm and that self-regulation is not the most effective strategy for addressing concerns with regard to South Africa’s drinking problem.

Self-regulation rules

Currently, the advertising and marketing of alcohol is not subject to legislation regarding the manner in which it markets and advertises its brands. Instead, it is committed to self-regulation as the most effective strategy to achieve responsible consumption by people who choose to enjoy alcohol in moderation.

The Association for Alcohol Responsibility and Education (Aware.org) is the organisation that represents the alcohol manufacturers, distributors, liquor traders and retailers – including Distell, Pernod Ricard, Diageo, SAB (AB InBev), Heineken, VinPro and SALBA. A key mandate is to work together with government and civil society stakeholders to empower responsible consumption and to contribute towards reducing alcohol-related harm.

Until the rules change

The current National Liquor Amendment Bill is with the Minister of Trade, Industry and Competition, Minister Ebrahim Patel. It is expected that the Minister will deliberate on the Amendment Bill with Cabinet prior to it going through a public process in Parliament. Significant restrictions and, according to some insiders, a potential total ban on alcohol advertising is one of the expected outcomes of the Bill.

Either way, this is expected to have significant business and economic implications for the alcohol industry and its marketing, advertising and media ecosystem – in terms of jobs lost, revenue forfeited, contracts cancelled and reductions in brand equity.

In January 2020, to demonstrate its commitment to responsible marketing and reducing alcohol harm, Aware.org, together with its industry members, revised and relaunched the Code of Commercial Communications (the Code) that governs alcohol marketing and advertising. The Code was mostly well-received by government stakeholders. There were some naysayers – a few academics, civil society organisations and representatives from the fourth estate.

And then Covid-19 happened

Most people misunderstand what happens during a crisis. The common view is that in a moment of turmoil, people’s thoughts and opinions are suddenly and drastically changed. However, this is a misconception, because a crisis doesn’t change how we feel. It just intensifies what we were already feeling. As Professor Scott Galloway puts it: “Covid-19 is an accelerant… not a change agent.”

“The sale, dispensing and distribution of alcohol will be suspended with immediate effect. There is now clear evidence that the resumption of alcohol sales has resulted in substantial pressure being put on hospitals, including trauma and ICU units, due to motor vehicle accidents, violence as well as trauma that is alcohol-induced.” ~ Cyril Ramaphosa, July 2020 #FamilyMeeting.

The State of Disaster alcohol sales bans put a spotlight on South Africa’s ‘drinking problem’ and the associated financial, social, human and opportunity cost of alcohol abuse and harm. While some are quick to label alcohol brands as being more focused on selling their products than actively working to address alcohol harm, this is not an accurate assessment.

Standing together to support the nation

The alcohol industry, as a collective, stepped up to support the Government and the nation in the battle to halt the spread of the Coronavirus. Following the 25 March 2020 announcement of the alcohol sales ban by the President, alcohol brands, collectively represented by Aware.org, worked together and with government to help to protect the nation from the scourge of the pandemic.

The alcohol industry, as part of a multi-stakeholder initiative, collaborated with public sector and civil society partners to develop a comprehensive social compact to address alcohol-related harm in South Africa head-on. Key focus pillars of the social compact include drinking and driving/walking, binge drinking, underage drinking, responsible trading and marketing and the strengthening of the industry’s Commercial Code of Practice.

As part of the social compact, the alcohol industry agreed to provide resources (funds, people and time) to assist government in dealing with the burden on the public healthcare system and to assist with the distribution of personal protective equipment (PPE), leveraging its extensive distribution and retail networks nationwide in support of efforts to combat the spread of Covid-19.

Sanitisers, safety and community support

Alcohol manufacturers, unable to produce, distribute or sell their products, converted their plants and factories to the production of hand sanitiser.

Industry members and the provincial Liquor Boards embarked on an extensive national, on-the-ground Covid-19 trade community initiative to empower and support just on 35 000 licensed traders with essential Covid-19 compliance elements (PPE, sanitisers, signage etc). and public and employee Covid-19 educational material to ensure government guidelines could be respected and were visible in retail and hospitality trade outlets.

To further ensure compliance and safety, traders were invited to access essential Covid-19 information and updates and real-time notifications via a user-friendly mobi-site, tradeaware.org.

More than ever your choices matter
Building on a previous responsible drinking campaign message, aware.org and its members launched a media campaign aimed at educating drinkers about the importance of their choices and the need for moderation to help flatten the curve and to free up medical resources and personnel in healthcare facilities.

As an added commitment to reducing alcohol harm with the alcohol trading ban lifted in level three (2020), alcohol brand owners agreed to pull all brand and product advertising from television, radio and other media to further support the government’s alcohol sales ban.

From September onwards, the industry demonstrated its commitment to reducing alcohol harm ensuring that all advertising adhered strictly to provisions of the Code to advertise on television and radio after 19h00, and to programmes where the audience is 70% over the age of 18 (the legal drinking age), to minimise the risk of exposing young people to alcohol messaging.

Brand owners used their own marketing platforms to drive responsible drinking and relevant Covid-19 messaging. During December 2020, aware.org members further demonstrated their commitment to supporting the nation during the pandemic by cancelling advertising campaigns and upweighting responsible consumption messaging.

Underage drinking in the spotlight
In November 2020, the first phase of a new responsible age verification trading programme was rolled out to industry members and retailers.

Festive season

A national festive campaign in partnership with the Road Traffic Management Corporation (RTMC) and the Department of Transport promoted a national road safety message.

The bold and emotive campaign, ‘It’s not just about you’, appealed to South Africans to consider the impact of their choice to drink and drive or drink and walk on others, including healthcare workers and first responders, family members, employees and employers, and other South Africans whose lives are compromised due to an individual’s irresponsible behaviour.

Looking ahead

The alcohol industry must continue to work with government and other stakeholders to craft sustainable solutions and policies that promote growth and reduce social ills. The industry should use its substantial strategic and creative talent to develop solutions that change behaviour to reduce alcohol-related harm.

Finally, it should explore and apply bold, disruptive and effective approaches to revising the Code, including but not limited to: age-gating and regulating online sales, especially under-age access, and ensuring that influencers work for good and not to promote irresponsible consumption.

BIO
Ingrid Louw is CEO for the Association of Alcohol Responsibility and Education (aware.org). For nine years prior, she fulfilled the position of CEO at Print & Digital Media South Africa. Before joining PDMSA, she worked as CFO for the National Electronic Media Institute of South Africa – a training institution established by the Department Of Communications which formed part of a government initiative in 1998. She has a Master of Business Administration (MBA) through Henley Business School.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Finding the true north of your 2021 brand strategy: The African edition

22 January 2021

No comments

Categories: Newsletters

We conducted several global studies over 2020, talking to 4 500 clients across the globe, to help our clients navigate the crisis. The Covid-19 Consumer Barometer study stretched across 60+ markets to provide insight into people’s reactions to the coronavirus and the implications for brands. In addition, the Covid-19 Business Compass research focused attention on the impact of the pandemic.

Let’s dig deeper into how businesses in sub-Saharan Africa are responding to the crisis, with emphasis on Kenya and Nigeria, and what brands and marketers need to consider now and do next…

Business concerns pronounced

Concern about overall business performance is markedly more pronounced in Africa compared to the global average. Nevertheless, the same types of worries prominent in the rest of the world are also of concern on the continent – reduced demand, financial hardship and operational problems.
This reflects the fact that consumers mirror those worries in becoming more price conscious and inclined to save rather than to spend. For example, by August 2020, 87% of Kenyan households and 76% of Nigerians had their incomes negatively impacted, according to our Barometer survey.

Despite the drastic impact they’ve felt, businesses in Africa still expect a quick recovery. Perhaps a case of misplaced optimism, as 74% of businesses on the continent expect a new balance within six to 12 months, yet eight out of 10 are currently in a downturn. It’s a tension that needs fast resolution – but many businesses are simply not doing what is needed to actualise this recovery.

For example, while most leaders know online spending will increase, only half are investing in ecommerce capabilities.
This may be a result of the fact that marketing, media and research budget cuts across the board have been more frequently and keenly felt in Africa than the global benchmark, highlighting the conflict in needing to manage the short-term while planning for the long-term. This means that budgets now need to work harder than ever, as there’s greater pressure to demonstrate ROI and keep brands top of people’s minds.

The long and the short of it: Meeting in the middle on African ecommerce

Successful businesses that have actually seen their bottom line impacted positively over 2020 are the ones that have taken this to heart. As 72% introduced or increased ecommerce capabilities, 64% pivoted to adapt to the new conditions by forging new partnerships and implementing new supply chain processes while 41% made future-focused investments in innovation and marketing, even going so far as to increase staff hires in these fields in Kenya.

But ‘fail stories’ are often more compelling warnings than the successes, so it is worth noting that the businesses that have been most negatively impacted are those that focused on short-term, panic-based solutions such as cutting all discretionary spend from budget to investments. These were also the companies that put on their blinkers and reduced innovation while implementing lay-offs and hiring freezes.

Don’t follow in their cautious footsteps. Instead…

Looking ahead, there’s a 91% expectation that online spend as well as time dedicated to digital activities will further increase in Africa, so businesses can stand out on meeting this new need for ecommerce. This has already proven to be a priority in Kenya, while the focus in Nigeria is on new customer channels and go-to-market strategies.

That is, after all, the new normal and the top growth priority for 2021, no matter if vaccination distribution is prioritised or if there’s a delay and we face further lockdowns. So, in answering where businesses need to focus for future growth as we forge our way into the new year, the answer is clear: Play an increased role in supporting society and/or government, focus on digital transformation and provide better access to data, and show internal support of what your employees are going through by providing mental health support in your organisation.

In doing so, you’ll find that you’re wearing the right business armour to absorb and deflect where needed when it comes to the top three macro-forces currently in play.

Three strategic action points to realign your brand purpose in 2021
1. No room for ostrich brands: Fit into the flux of the new world

This is all about pressure to support diversity, sustainability and community, as well as a long overdue global reckoning with racial equality that, pandemic notwithstanding, brought millions of largely Gen Z protesters into city streets across the world. The Nigerian case serves as a prime example of the African Gen Z mindset in action.

While these cultural changes are inevitable, remember that different parts of culture are changing at different speeds and to different degrees, so for brands to ensure a continuing fit with this shifting culture of consumer lifestyles, they need to find fresh yet authentic connections that tether them tightly to these evolving needs and aspirations. Diversity and sustainability must be front and centre, as well as Africa’s push for local culture and the Covid-induced need for effective signaling of hygiene.

2. Your digital business heartbeat: Balance the human with the tech

Savvy companies are realising it’s not an all-or-nothing situation, but rather about reaching the right balance between the fast-tracking of digital transformation, virtual connections and the forced surge of ecommerce with that all-too-human desire to step offline and return to the physical world we miss. So, while ecommerce is definitely important, remember that the consumer mindset remains local. Traditional remains king in Africa.

3. The 2021 business toolkit: Agility, efficiency, empowerment and responsiveness

The unexpected success of remote working has sparked a wide-ranging re-evaluation of the workplace with fresh approaches being taken to help society to work, connect, communicate, consume and shop in a holistic omnichannel environment to build a better society for all.

It’s a long road to recovery ahead, which will doubtless see brands face new challenges and opportunities over the horizon. That’s why adapting to the new consumer needs of today is crucial to honing your brand’s true north in 2021.

Whatever your approach, remember that consumers in Africa expect products and messages tailored to who they are, what they care for and the environment they live in.

BIO
Passionate about people, Africa and insights, Ndeye Diagne currently heads Kantar’s Insights Division in Nigeria and Ghana. Always pushing boundaries to help brands in Africa grow faster, Ndeye holds a strong record of delivering winning growth strategies for leading brands across the continent. As chief commercial officer at Kantar East Africa, Kate Njoroge is responsible for driving client-centricity and impact, as well as commercial profitability and growth. Her enthusiasm for personal development as well as emotional intelligence, leadership and coaching shines through her big-picture focus on life.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Leveraging your supply chain to ensure a burgeoning bottom line

22 January 2021

No comments

Categories: Newsletters

Although supply chain management (SCM) and the pivotal role that it plays in business hasn’t always been widely recognised in the past, an unprecedented 2020, with its Covid-19 pandemic, has made it abundantly clear that competent and proficient SCM is a significant catalyst when it comes to economic growth, both locally and internationally.

So, what is SCM and how are businesses able to embrace the ongoing learnings from last and this year and leverage their SCM to make their bottom line swell?

SCM practices are essentially the management of upstream and downstream activities with maximum efficiency, with a view to amplifying the customer experience and enhancing customer value. The aim is to achieve not only a sustainable competitive edge but also one that is superior to competitors within the same class of business.

Upstream activities relate to the source of the business’ inputs – such as raw materials, suppliers and the processes for managing important supply chain partner relationships effectively and cost effectively. In contrast, downstream activities consist of the business’ processes associated with the distribution and delivery of final products to the final consumer via the organisation’s distribution channel. Competent SCM also includes the management of procurement (inputs), operations, warehousing and transportation logistics.

Traditionally, organisations could rely on the loyalty of their customers, but increasingly, a shift towards service delivery instead of brand loyalty has become the first and foremost differentiator in customer expectations – and buying patterns. It’s worth remembering B2B customers are not as brand loyal as consumers.

So, back to the original question – how can businesses leverage their SCM to reduce costs, grow their bottom line and retain customers?

New thinking needed

For a start, new thinking is needed with a definite shift in the application of old methodologies. With elongated supply pipelines, increased supply and supplier risk and extreme fluctuations in currencies, the only true way to maximise the benefits of SCM strategies are to ensure superior customer value, service delivery and the management of the integral logistical functions within the SCM cycle.

The adage of the customer is king has never rung so true, and the fusing of high-quality operations and superior customer service will be the clincher when it comes to distinguishing features what features in the eye of your consumer.

Service SCM is one of the highest growth areas worldwide, so it is evident that although there are still substantial skills shortages within the field globally, businesses – nationally and internationally – are realising that services SCM is most definitely the key to improving overall company performance.

“It doesn’t matter if you’re a small or large organisation, proficient SCM provides an open-ended opportunity to enhance the customer experience,” says Marzia Storpioli, lecturer at the IMM Graduate School and leading subject matter expert. “The value added by excellent service, delivered by an agile and responsive supply chain, will most certainly result in far greater customer retention – something each organisation is desperately seeking.”

Mitigating risk and introducing further success into an organisation’s SCM strategy means taking a hard look at management practices. Technology plays a massive role in today’s markets and for any business to have a hope of remaining competitive, the appropriate technology processes and systems must be put in place.

The technological advancements associated with the Fourth Industrial Revolution (4IR) – which include artificial intelligence (AI), robotics, Internet of Things (IoT), automation, blockchain and cloud computing – are disrupting and transforming all end-to-end processes within the supply chain. Business leaders can no longer focus on developments and trends in their sectors alone but need to understand potential transformations and disruptions in the entire world of suppliers, customers and markets.

Education and training a vital component

Education and training are vital components in the understanding of the complexity of SCM, especially as company leads start to realise that process and system changes – which will impact their suppliers, markets, capabilities and daily operational readiness – must be implemented if they want to stay ahead of the curve.

The IMM Graduate School, one of Africa’s foremost online education providers specialising in marketing, supply chain and business disciplines, is adding two new SCM qualifications to its arsenal: A Higher Certificate in Supply Chain Management and BCom Honours in Supply Chain Management.

“The key differentiator to the standard SCM modules and the postgrad offering will be the accreditation by the internationally recognised Chartered Institute of Logistics and Transport (CILT), a first for any SCM qualification in South Africa,” explained IMM senior lecturer and researcher and SCM subject matter expert, Dr Myles Wakeham.

“Along with a full spectrum of groundbreaking educational modules, offering a new perspective on SCM in light of global changes, a module solely dedicated to AI, digitalisation and blockchain technology will be introduced for the first time in any SCM course. Another progressively innovative module will address ethics and risk management in the supply chain, which has to date, seldom been included in any learning material within any SCM course.”

As the world settles into its ‘new normal’, companies will fall into two very divided categories. Those that don’t learn dig their heels in and hope that there will be no further disruptions. Then there are those that have learned from this economic crisis and invested in their future by interrogating their systems, supply networks and customer service standards to redefine the road map, so that afore-planned objectives may be reached with solid solutions if and when new disruptions occur.

It really is clear to see which out of the two strategies will emerge as the winner.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Battlefield insurance: Marketing through the pandemic

22 January 2021

No comments

Categories: Newsletters

And the fight will continue because the company only committed to three months in full and final settlement. We can expect more unhappiness in 2021.

It wasn’t the only insurance company, either at home or abroad, to resist honouring the claims. Other big South African firms began paying out after an unequivocal and precedent-setting Supreme Court of Appeal ruling in December 2020. As Ryan Woolley, CEO of Insurance Claims Africa, told Biznews, “Eight High Court judges and five SCA judges have unambiguously found business interruption claims to be legitimate and ordered insurers to pay out claims”.

The companies’ position, in a nutshell, was that lockdown led to business interruption, and not the pandemic itself. This held no water with business clients that had religiously forked out their monthly payments in the belief their companies would be protected in the face of disaster. Social media was awash in searing diatribes against the insurer. “You can’t bullsh*t your way out of doing what you’re supposed to do with empty slogans…” said one.

The pandemic hit consumers hard too. As Hollard Insurance’s chief marketing officer, Heidi Brauer, says, “Now comes the time when consumers have lost jobs, had travel cancelled, have car or home instalments they can’t pay, or have lost somebody. And their insurance comes into play. It’s a time for the insurance industry to show its best face.”

Insurance is already a ‘grudge’ buy and with a global pandemic raging and the economy tanking – a “perfect storm”, as Brauer calls it – insurers had to decide whether to step up their marketing efforts, or hide until the pandemic recedes.

Insurers continued marketing in 2020

With reputations and profits on the line, most insurers continued marketing. In fact, brand intelligence outfit Ornico reported in August that in June 2020, a total of 228 new insurance industry commercials were flighted, mainly across television and radio channels. Clientele and OUTsurance were the biggest spenders, followed by Old Mutual, Momentum, Hippo, Dotsure, King Price, Discovery and iWyze.

“We had conversations about ‘going out’ of the market for a period and not go on tooting horns. But that’s why I stress consistency, because brands need to be there through thick and thin, no matter what. We need to be there with some sensitivity. There’s so much inertia and friction to overcome if you pull your brand out of the market then try to get back in,” says Brauer.

“We chose to stay in the market in an appropriate, sensitive and caring way. We were very lucky as we were already on the tail end of a campaign we’ve been running for a year, which was all about South Africans saying ‘hello’ to each other. It was all about inclusivity and saying ‘hello’ so we were able to continue in the same way and did the lovely ‘hello’ from behind the mask in 12 official languages (12th being sign language) and try to keep people smiling because that’s what our brand is. Our brand is always a smile, a twinkle in the eye, even when times are tough.”

Not surprisingly, much of the marketing messaging centred on the human connection, with a caring and kind attitude. We are listening. We are there for you.

“There was a Reel [on Instagram] going around showing all the brands in various industries looking the same, showing love and hearts and signs outside windows. We were remarkably uncreative and leapt on similar bandwagons,” says Brauer. “I think that’s a zeitgeist thing, which happens anyway when you’re all being propelled by the same circumstances. When you all have the same business objectives, it’s likely that your creative output is going to be the same. Your brand needs to help you differentiate. For us, you don’t want to jump on some bandwagon and look fake as people see right through you, because that’s not what your brand normally looks like.”

More than marketing

Insurance marketing through the pandemic had to go beyond just advertising to be relevant, says Charlotte Nsubuga-Mukasa, head of consumer brand marketing at Momentum Financial Services. “Marketers needed to create uplifting emotive narratives that celebrated the resilience of the South African people and demonstrated societal relevance at the same time,” she says.

“A brand’s reputation is linked to how quickly and how simply they communicate their response or resolve any query. The care that is demonstrated in these interactions becomes a vital touch point for the brand to ensure the integrity of their brand promise. A client that is heard has a high probability of remaining in a place of engagement and trust with their insurer, even in cases where the outcomes are not fully what was expected through the claims process,” she adds.

“In the case of Momentum, we contributed to the Solidarity Fund to address new needs such as providing health equipment for essential workers in our hospitals. And we made sure to adapt by providing product payment relief and reduced or deferred payment options for clients who were going through a hard time.”

While the role of insurers in society is evolving, the core business remains grounded on people and good financial advice, adds Nsubuga-Mukasa. “Product solutions now need to be more innovative and agile than ever before. But it has always been an industry that is known to transform good ideas into comprehensive product solutions that are relevant for the society it serves.

“Insurers are making a societal impact, but as marketers, we need to make sure that our creative moments fit. An example of a fit for purpose campaign during lockdown level 5 was the case of KFC. They got good press for changing their finger linking creative to hygiene and the washing of hands. Momentum became one of the first brands to provide free 24/7 medical advice services to all South Africans through the USSD Hello Doctor solution.”

Brauer agrees the job of a brand is to make sure the promises it makes are kept. “So you talk about tone and caring and listening and insurers are doing much more of that, but the trick is to deliver on those promises and be consistent. What people want from brands –whether it’s coffee or sparkling water or hand lotion – is consistency. As a marketer, what I have witnessed is some strength and some weakness when it comes to consistency. The problem is consumers will see through that if you can’t keep it up.”

Nsubuga-Mukasa says the insurance industry has experienced clients switching to more affordable brands or categories, selecting more affordable packages, sizes or solutions, all the way to rationing or cancelling the quantity or frequency of their purchase of goods and services.

“Marketers in the insurance industry need to ensure that their consumer marketing messages remind their clients and consumers to be unwavering in protecting the solutions that they have put in place to drive their long term ambitions and financial goals,” she advises. “With the support of a knowledgeable and trusted financial adviser, a client’s success may lie in their persistence in maintaining their benefits during a tumultuous time.”

A general lack of knowledge

Insurance marketers continue to battle consumers’ general lack of knowledge of how insurance works. This is exacerbated by it being a “low touch” product. “You buy a policy, and may not hear again from the insurer until you have a claim or until it’s time for the annual increase or renewal. So not only is it a grudge purchase, and complicated, but it’s also low touch…similar to banking, but worse,” says Brauer. “And insurers don’t make it easier to understand either. It’s all smoke and mirrors. We’re all bad at it.”

“Marketers are no longer paying lip service to campaigns that are not based on human truths, says Nsubuga-Mukasa. “Momentum based its #SuccessIsAScience campaign on the fact that clients and consumers find financial terminology complex and intimidating ” she says. “Consumers are hungry for (unambiguous) information to help them on their journey to success. Marketers need to tap into behavioural insights and deliver the same savings, insurance and investment messages in new ways to enable ordinary South Africans to successfully navigate and respond to a crisis in future.”

Subscribe to stay informed whenever a new issue is published

Subscribe now

Journal of Strategic Marketing Newsletter – October 2020

27 October 2020

No comments

Categories: Newsletters

Journal of Strategic Marketing Newsletter – October 2020

A NOTE ON MARKETING THE FUTURE

I write this note as South Africans mark 200 days in lockdown. Yes, we’ve climbed down to reach level one of the lockdown ladder, but we are by no means out of the Covid-19 woods. We’ve just learnt how to navigate our way through these dark times a little better, and are starting to live alongside the pandemic in what is now a normal way of life.

While we’re not at the point of ‘business as usual’, certainly in terms of marketing, brands are mostly back to work. Especially as it seems Christmas (marketing) is coming early this year. Research by WPP agency in the UK, Kinetic Worldwide, says more than half of UK adults say Christmas is more important than ever. While we don’t have such research in South Africa, the fact that we are already seeing Christmas products on the shelves – before Halloween and Black Friday – says something.

In our must-read lead story this month, Kantar’s Kent Diepraam writes how its BrandZ research and data shows strong brands are continuing to recover from the economic shocks earlier this year with more convincing performance and growth figures. Nevertheless, he says, marketers have to learn to do more with less, and balance these short-term gains with long-term brand building.

It’s something multinational snack food company Mondelez has considered. In a novel way to adjust its marketing budget, its chief financial officer is diverting the company’s travel, consulting and real estate funds to marketing and advertising efforts – and most of that spend will be on digital (rather than TV commercials). Now there’s a strategic solution to Covid-19 impacted marketing budgets.

iProspect’s head of ad operations in Kenya also has a positive story to tell. Kenneth Mutuma has investigated potential opportunities within e-commerce and marketing in light of the fact that there are now 500 million mobile money users in Africa. With mobile subscribers set to hit the 600 million mark in five years, marketers will be able to reach users from all economic classes via ad tech developments.

In another optimistic piece, we’ve taken a look at the importance of supplier development as a means of boosting local supply chains. As Fetola’s Catherine Wijnberg (who is also founder of the Absa Business Day Supplier Development Awards) says, when supplier development is driven as a strategic imperative from the boardroom, there is distinctly greater success and long-term impact. Leading companies are passionate about doing supplier development right and are going beyond a scorecard to a genuine desire to support lasting growth in the supply chain as a way to build an effective and transformed economy.

And finally, some very good news for students wishing to study in the Western Cape: The IMM Graduate School is launching its new campus in Stellenbosch in January 2021. As of 30 January 2021, 750 students will have the opportunity to study in the historic university town.

Glenda Nevill

Editor

Hello Lucy. Accelerate brand recovery in the next normal: How the new era of analytics can unlock superior marketing effectiveness

It is time to shake off the doom and gloom of working under Covid-19 conditions and make more informed business decisions for more effective marketing results, now and in future, writes

KENT DIEPRAAM, Director of the Analytics Practice for Kantar Insights (South Africa).

Having lived with the global pandemic for six months now, economies are starting to slowly reopen, to breathe fresh life into markets under lockdown. Not a moment too soon, as this has been a crisis unlike any other. Marketing budgets were among the first to be cut and consumer spend is expected to only return to pre-Covid-19 levels in the next 18 to 24 months.

Transacting, saving and investing in digital Africa

With an expected 500 million mobile-money users on the African continent in 2020, KENNETH MUTUMA, Head of Ad Operations at iProspect Kenya, investigates the potential opportunities within e-commerce and marketing

When the first mobile device was launched more than three decades ago, Africa wasn’t expected to be at the cusp of adoption and innovation. However, the growth of mobile in Africa has been unparalleled.

Mobile subscribers are expected to hit 600 million by 2025; this as operator revenues soared to over $51 billion for the period between 2019 and 2020. And 1.7 million people were hired (GSMA Intelligence, 2020). This is despite having less than two mobile subscribers to every 100 people in the last two decades, according to the World Bank.

Supply chains in South Africa need to be local, future-focused and world class

Unless we build a strong, inclusive economy, South Africa (and every company in South Africa) is in big trouble. Supplier development and transformed supply chains are key to this. GLENDA NEVILL reports.

The work many South African companies do in terms of supplier development is quite “remarkable” because they have to make both their SMME suppliers, as well as their customers, the focus of their supply chain management activities.

Supplier development and supply change management (SCM) don’t sit comfortably together, says IMM Graduate School SCM lecturer Marzia Storpioli. “Typically in SCM, the focus is on superb service to the customer and enhanced customer experience, and not the number of jobs added to a specific sector in the economy and the financial security of the suppliers,” she explains.

A dream come true for Stellenbosch students as IMM Graduate School launches new Winelands campus

Demand from students wanting to study in Stellenbosch has resulted in the growth of the IMM Graduate School in this historic Winelands town. A new campus will open its doors on 4 January 2021.GLENDA NEVILL reports.

The IMM Graduate School has had a presence in Stellenbosch for many years, but increased demand from students wanting to study in the historic town has resulted in the need for a larger campus.

The new campus will allow the IMM Graduate School to grow its numbers in Stellenbosch by a third, says Irene Gregory, the IMM Graduate School’s National Head: Student Support Centres.

The new campus will replace the current Student Support Centre, and can house 750 students, with a maximum of 320 on site at any one time.

Subscribe to stay informed whenever a new issue is published

Christmas marketing comes too early… or is it?

How can marketing for Christmas come ahead of marketing for Halloween? Social media users in South Africa suggested those who dared do so should be strung up – and used for Halloween marketing. Seriously, though, WPP agency Kinetic Worldwide says its research in the UK has shown more than half the country’s adult population believe Christmas is more important than ever this year and are already hitting the stores in anticipation. Chief planning officer at Kinetic, Nicole Lonsdale, says: “Our study suggests a remarkable resilience in people’s shopping behaviour and a steely determination among UK consumers to make the most of this year’s Christmas season.”

IMM Graduate School launches two new Supply Chain Management qualifications

From 2021, the IMM Graduate School will be offering two new supply chain management qualifications. Firstly, a Higher Certificate in Supply Chain Management will give students a basic understanding of the field, while also bolstering overall business management knowledge. It is designed to give a view of the processes and inter-relationships across the supply chain that enables organisations to create sustainable value. Then there is the Bachelor of Commerce Honours degree in Supply Chain Management, an essential qualification for those aspiring to specialise in the discipline. It places an emphasis on problem-solving, equipping graduates with the knowledge on how to approach various unorthodox situations. For more information on these new qualifications, please visit www.imm.ac.za

The colour red

The Pantone Colour Institute found itself in the news after collaborating with Swedish feminine products brand, Intimina. Pantone created a new colour, Period, which it describes as an “energizing and dynamic warm red shade encouraging period positivity to serve as the visual colour identifier for the Seen + Heard campaign; a campaign whose purpose is to inspire national and international conversations about periods through creative ideas that portray periods sympathetically and accurately”. But it seems it might have not quite hit the mark as women say it looks nothing like menstrual blood and label it a “gimmick”.

Liberty is ‘in it with you’

Insurer Liberty has made major changes to its marketing with a brand refresh and new messaging following the coronavirus pandemic and consumers’ desire to embrace more ‘human’ brands. Chief Marketing Officer Thabang Ramogase says Liberty wants a more holistic relationship with its clients, to be there for them in the best and worst of times, hence the payoff line, ‘In it with you’. As Ramogase says, “People need more than just new products, advice and expertise. If they’re trusting a financial services provider with their money – even their livelihoods – they need to know that the people in charge of such important investments care about them, and truly understand them.”

The fine life, with Snoop Dog

The Corona beer brand has had a pretty strange year. A name associated with a dreaded virus. What do you do? Well, it kept quiet for most of the year. But now, ahead of the holiday season, it has unveiled its new La Vida Más Fina (the fine life) campaign. And in the pound seat, is the inimitable Snoop Dog. The brand says in a press release, “the campaign began to take shape earlier this year but was paused as unexpected cultural considerations came into play”.

Mondelez diverts travel, consulting and real estate funds to digital marketing

Mondelez is taking a new approach to its marketing. The global snack food manufacturer is diverting its travel, consulting and real estate funds to marketing and advertising efforts – and most of that spend will be on digital (rather than TV commercials). Company CFO Luca Zaramella told the Wall Street Journal he hoped the renewed focus on marketing would help them retain their recent sales gains in North America and stimulate demand in other markets. The company, in 2019, spent $1.21 billion on advertising.

A dream come true for Stellenbosch students as IMM Graduate School launches new Winelands campus

27 October 2020

No comments

Categories: Newsletters

The IMM Graduate School has had a presence in Stellenbosch for many years, but increased demand from students wanting to study in the historic town has resulted in the need for a larger campus.

The new campus will allow the IMM Graduate School to grow its numbers in Stellenbosch by a third, says Irene Gregory, the IMM Graduate School’s National Head: Student Support Centres.

The new campus will replace the current Student Support Centre, and can house 750 students, with a maximum of 320 on site at any one time.

“There has been an IMM Graduate School Student Support Centre in Stellenbosch for many years, however the increase in registrations from students wanting to study in Stellenbosch has resulted in the need for a larger campus,” says Gregory.

In researching whether a brand new campus was feasible in Stellenbosch, Gregory says studying in the scenic town is a dream for many school-leavers, who “long to be part of the vibey student life with its sidewalk cafés and cultural heritage”.

“The oak-lined student town of Stellenbosch, located in the heart of the beautiful Cape Winelands, is always bustling with young adults seeking this vibrant lifestyle,” Gregory says.

The campus will be located in a brand new building which is under development in Bosman’s Crossing, Distillery Road. The building is close to the beautiful and famous Eersterivier in the shadow of the Onder-Papegaaiberg, which is only a five minute drive from the centre of town.

Gregory says management of the IMM Graduate School looked into various locations during 2019 and opted for the Bosman Business Centre at the beginning of 2020.

She lists the elements comprising the new campus:

The campus will offer beautiful areas for students to relax, including a large deck with the most exquisite views of the surrounding mountains and Stellenbosch town
There will be eight light and spacious studios, able to accommodate between 20 and 120 students
A beautiful Information Centre, equipped with all prescribed books and computers hosting a huge bank of resource materials
Free wi-fi for students available throughout the campus
Administrative offices with student consulting rooms
Café courtyard at the entrance to the campus
Secure parking for vehicles and bicycles

Daytime tutorials will be offered for these qualifications:

Higher Certificate in Marketing
BBA in Marketing Management
BCom in Marketing and Management Science
BCom in International Supply Chain Management
BPhil Honours in Marketing Management
BCom Honours in Supply Chain Management

“The Stellenbosch campus will be manned by seven full time staff and a team of industry experts contracted to offer tuition to the students,” says Gregory. “The campus is supported by a strong faculty at national office level, as well as departments which take care of student support, academic administration, and a technical team.”

The campus opening event will be held on 30 January 2021 and the first intake of students will start on 1 March 2021.

To receive an invitation to the launch, please contact info.stellenbosch@immgsm.ac.za. To register, visit the IMM Graduate School website.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Supply chains in South Africa need to be local, future-focused and world class

27 October 2020

No comments

Categories: Newsletters

That is why initiatives highlighted in the latest Absa Business Day Supplier Development Awards are quite “remarkable”.

“Supplier development generally involves achieving a sort of partnership where the buyer achieves lower costs and higher quality and the seller consolidates his business by ensuring continuity of supply for the buyer through innovation,” Storpioli explains.

“This is not generally the case in South Africa’s supplier development programmes because the aim is to uplift small, black-owned and black female-owned businesses. Most often this results in paying slightly higher prices because small businesses are supported. The benefits lie in the number of jobs created or the revenue stream guaranteed to such SMMEs,” she says.

The reasons for doing this are, in the main, aligned to political and socio-economic demands. The Absa Business Day event recognises efforts in developing suppliers in line with B-BBEE initiatives, Storpioli says. “This has little to do with supply chain management itself but rather more about spreading wealth and opportunities through a business’ procurement spend,” she adds. “As a professional I can only applaud what is being done by Absa and commend the winners on their achievements (immensely hard to do in a sluggish economic environment).”

Founder of the awards, Fetola CEO, Catherine Wijnberg, says no company is an island and leaders in business are hyper aware that unless we build a strong, inclusive, economy South Africa (and every company in South Africa) is in big trouble.

“For this, our supply chains need to be local, future-focused and world class,” she says. “Transformation ensures broader participation in the economy, and resultant growth in national wealth and increased wealth and well-being is critical to all our futures.”

Wijnberg says the purpose of the awards is threefold:

To make visible the good work of big businesses
To acknowledge and encourage best practice in supplier development
To encourage collaboration and shared learning, building a community of best practice so that the whole industry can advance

Despite being only three years old, they have had an impact. “We see an increase in corporates collaborating within and between industries. We see that when supplier development is driven as a strategic imperative from the boardroom, there is distinctly greater success and long-term impact. We see that leading companies are passionate about doing supplier development right – going beyond the scorecard to a genuine desire to support lasting growth in the supply chain as a way to build an effective and transformed economy,” Wijnberg points out.

She acknowledges that supplier development is not always the most economical way of doing business but in South Africa, it is vital in the socio-economic sense. So, how do big companies balance economic imperatives with socio-economic ones?

“The Absa Business Day Supplier Development Awards are about going beyond the scorecard – so moving away from the tick box of compliance to real strategic thinking,” Wijnberg explaines.

“Investment into supplier development is investing in the future competitive advantage of the company – so, selecting the right suppliers and working together for shared benefit. The decision-making needs to move away from the cost or ticking the supplier development scorecard and become more about the cost of NOT developing competitive, diverse and healthy local suppliers,” she adds.

While there are hundreds of worthy and honest initiatives, IMM Graduate School SCM lecturer, Dr Myles Wakeham, warns against “window dressing”. What is supplier development in a South African context, he asks?

“Some see it as a financial investment in a supply organisation and if that is the case, then quite honestly there are too many charlatans/shady operators in this space. All you have to look at is the failure of B-BBEE, particularly in small to medium enterprises as well as corruption and blatant theft. I do, however, support supplier development in terms of training and helping organisations to become more adept in outsourcing. Give them the fishing rod and help them to fish!”

Wakeham believes medium sized organisations would do a better job if there were some tax incentives to get involved. “Remember that this will become a long-term project and so there should be mutual commitment on both sides,” he says. “Businesses should commit themselves for the medium to long term. Supply chain development is not supplier development so businesses should consider including medium and small entities in their chains. The problem here is that by doing so they will be exposed to greater risk.

“Risk management should be used when assessing supply partner suitability and there should be continued supplier evaluation. There has to be a comprehensive and mutually binding service level agreement (SLA) in place that spells out exactly the mutual obligations of both parties,” says Wakeham.

Still, the challenges are legion, as Wakeham points out. “The unhealthy economy, Covid-19, poor business ethics, the lack of transparency and trust, self-reference criteria, the racial divide, the continuing narrative of costly mistakes in this regard, opposing business cultures and a ‘I look after myself philosophy etc…”

How to overcome all this? “Government support and new business models applicable to the development of suppliers and supply chain development to foster inclusion…”

Wijnberg has some ideas too. “We can reduce the inefficiency in supplier development through increased levels of collaboration between businesses and across industries,” she says. “As more companies move beyond the ticking of supplier development boxes and work together to build a national network of world-class, local suppliers’ funds will be released to do bigger and more impactful work.”

There are also plans afoot to bring small and medium enterprises on board, Wijnberg reveals. “We have lots of smaller businesses already playing their role in supplier development and local supplier support. In 2021 we plan to encourage this with recognition for SMEs that support the transformation of their own supply chains,” she says.

Wijnberg acknowledges winners of the overall award, the Spar Group, for its commitment to local economic growth via their rural farming supply chain. “While their programme is far from being the largest, their inspirational approach shows strategic leadership commitment, aligning company purpose with actual delivery of local economic growth,” she says.

“Collaboration with local and international role players in the development of their rural vegetable farming scheme, the active enabling of these small farmers to access competitive supply chains and the vision for community-owned facilities illustrates an inclusive, strategic approach which embodies the spirit of the Absa Business Day Supplier Development Awards.”

Distell, too, stood out this year with places across a range of categories and their commitment to stay the distance with small suppliers despite the ravages of Covid-19, she says. “This long-term commitment to building healthy supply chains is central to their future strategic advantage and makes them leaders to watch and emulate.”

And then there’s the V&A Waterfront who “showed why they are leaders in the retail precinct industry, with their project that actively brings ‘buy-local’ opportunities for small suppliers alongside international brands. The V&A are a great example of innovative collaborative thinking as a way to strengthen the long-term, competitive advantage of their mall”.

Newcomer Award: V&A Waterfront for its Joy from Africa to the World programme. They partnered with 140 artisans and smaller suppliers – at every level of the supply chain – to reimagine their festive season décor. The category runner-up is Goodyear.

Local Manufacturing Award: V&A Waterfront for its investment of R336 million in small suppliers representing 38% of their total procurement spend. Runner up was Tiger Brands.

Youth Development Award: Distell for the group’s Green Up Recycling and Bansela Taverner programmes, which provided 320 job opportunities to mostly youths. Runner-up was Tiger Brands.

Black Women Development Award: Empact Group has 30% of total procurement spend going to SMME’s – of which 39% was channelled to support black women suppliers. Runner-up was the V&A Waterfront.

Rural and Township Development Award: SPAR Group Ltd won the award for their SPAR Rural Hub programme in which markets have been created to support small-scale farmers in the production and sale of their vegetable products. Runner-up is Distell.

Skills of the Future (4IR) Award: Unilever South Africa for their Isazi Farming Technology project that is providing technological solutions in the agriculture sector through the use of artificial intelligence and machine learning. Runner-up was Distell.

Collaboration Award: This year’s joint winners were Distell and Tiger Brands.

Small Supplier Development Award: SAB with runner-up being Goodyear.

Impact Award: It acknowledges a company whose supplier development initiatives have substantially impacted the value chain. This year’s winner is Tiger Brands, with Distell being named runner-up.

Overall Winner: A discretionary award for the company that stands out as the leader in supplier development in South Africa. With their purpose-driven strategy to address challenges such as food security, nutrition, job creation and transformation, this year’s winner is SPAR Group Ltd. Distell was named as the runner-up.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Transacting, saving and investing in digital Africa

27 October 2020

No comments

Categories: Newsletters

Mobile subscriptions in Africa

Astute Africans have been able to leverage mobile technology to create tailored solutions to solve African problems. It has been inadvertently labelled leapfrogging, a key attribute to Africa’s developing economies whose ability to skip redundant and inferior eras of technological advancement is unparalleled.

However, mobile-sector taxes have continued to hinder the adoption of mobile in markets like the DRC whose sector-specific taxation is among the highest in Africa, holding back adoption and potential GDP growth. The mobile sector contributes approximately 20% of total tax revenue, despite accounting for just 3.6% of GDP, meaning the total tax contribution of the mobile sector is almost six times the size of the sector in GDP terms.

Mobile money

A recent research study carried out in Africa determined that over 62% of Africans are unbanked (Fintech News, 2018). Mobile money provided a unique solution to close this gap by creating a simple technology that is easy to roll out across rural and urban settings.

Source: Mobile Industry Report 2019

Mobile growth in sub-Saharan Africa reached a milestone in 2019, representing over 66% of all global mobile-money transactions on the globe. In sub-Saharan Africa, East Africa is still leading, although West Africa is steadily gaining ground – thanks to Ghana.

Kenya is a pioneer in mobile money with M-PESA, founded in 2007. Currently, it boasts over 24 million active monthly users; the share of the population with access to financial services has gone from 14% in 2006 to above 80% today thanks to M-PESA.

In Kenya, you can pay for almost any commodity or service with M-PESA. In addition to this, there are added features for loans and savings. M-PESA users form the single biggest investors in government bonds in Kenya.

M-PESA app and sim toolkit

In the financial year 2019–2020, M-PESA business grew by 18.4% to $84.4 billion, with more than 43% of the growth attributed to new business channels, primarily savings and lending products: M-Shwari, Fuliza and KCB M-PESA.

On the other hand, Ghana is busy setting itself up as the leader in mobile money in West Africa. The country has seen mobile money accounts rise six-fold between 2012 and 2017, from 3.8 m to 23.9m, while the value of transactions increased by a factor of 261, from GHS594m ($109.8m) to GHS155bn ($28.7bn). Transactions rose again by another 43% last year to total GHS233bn ($43.1bn), according to the Oxford Business Group.

Source: Mobile Driving Digital Disruption

Growth Opportunities

The creation of OEM (original equipment manufacturers) factories to produce quality mobile phones in African countries will accelerate the adoption of mobile by providing quality devices at a more affordable cost. Rwanda has set up the first African high-technology factory to manufacture smartphones.

Caption: Mara X phone

The phones, called Mara X and Mara Z, are the first ‘Made in Africa’ models, with the cheapest device retailing at $130.

Mobile marketing

Beyond the utility that mobile devices provide to the user, marketers have also seen high value derived from them. From historical campaign data, over 60% of all internet traffic is through mobile. This has enabled advertisers to create unique ad tech to effectively target and reach users via the most utilised channel.

Mobile enables marketers to reach users from all economic classes with contextualised messaging: Ring-back Tone is one such example enabling marketers to break the language and literacy barrier in Africa with short, incentivised audio of 15 seconds or less served to users before their phone call connects.

The impact of COVID-19 on growing mobile transacting

The pangs of the pandemic are forging a new era of cashless transactions in Africa. In Kenya, banks continue to promote the cashless culture by encouraging the use of their apps and cards instead of cash. They have gone to great lengths to waive all transaction fees on money transfer between mobile wallets.

The Economist reports that in Rwanda, the number of mobile-money transfers doubled in the week after a lockdown was imposed in March, according to data collected by the Rwandan telecommunications regulator and analysed by Cenfri, a South African think tank. By late April, users were making three million transactions a week, five times the pre-pandemic norm.

In countries with a developed online retail industry, the middle class have increased spend on e-commerce, with the majority buying their groceries and other essentials online. JUMIA has seen the greatest growth in sales during this period, as more people, including users who had never used e-commerce before, are leveraging the service due to restrictions on movement.

BIO:

Kenneth Mutuma is Head of Ad Operations at iProspect East Africa. He is a digital media specialist with six years of successful experience in digital media buying and strategy and currently heads the digital media-trading arm of the business. He is a strong believer in the power of data in revolutionising marketing.

References

Ramadan, A. (2020). The Unbanked in Africa Could Be One of the Biggest Opportunities in Fintech History. Plug and Play.

Quest, R. (2018). Quest Means Business. YouTube.

GSMA Intelligence. (2019). Country Overview: Ghana Driving Mobile-enabled Digital Transformation. GSMA.

Fast Company. (2019). Rwanda Just Released the First Smartphone Made Entirely in Africa.

Ozyurt, S. (2019). Ghana Is Now the Fastest-growing Mobile Money Market in Africa. Quartz.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Accelerate brand recovery in the next normal: How the new era of analytics can unlock superior marketing effectiveness

27 October 2020

No comments

Categories: Newsletters

It is time to shake off the doom and gloom of working under Covid-19 conditions and make more informed business decisions for more effective marketing results, now and in future, writes

Yet the turmoil following these crises is nothing new, and history has taught us that recovery will follow. This is clearly seen when comparing leading indices’ data with that from BrandZ, the world’s largest brand equity platform, which shows that strong brands have continued to recover from economic shocks earlier and with more convincing performance and growth figures.

That said, under these conditions it’s no longer a case of marketing as business as usual. We all need to find ways to do more with less as the playbook for 2020 was largely thrown out the window but rest assured that brands matter now, more than ever.

There’s a temptation to be reactive and think short-term, but it’s important to balance those short-term gains with long-term brand building. This means re-estimating sales forecasts across markets and regions, and revisiting demand across portfolios, channels and point of sale.

Marketers need to understand that different categories will also follow different recovery plans, as hygiene products have seen increased demand throughout lockdown while restrictions on other products such as alcohol and tobacco sales in South Africa meant unexpectedly sharp declines.

What all categories do share is the fact that past data is no longer enough.

New data is needed to overlay brand and category trends while learning from historic performance and country-specific macro information like specific Covid-19 data and government policies, as well as consumer sentiment.

The long and the short of it: The future of marketing investment

In times of crisis, marketers’ top challenge right now is how to best optimise their marketing budget when consumer behaviour and media consumption is so rapidly changing.

Most organisations are pressed to make tough decisions on how to best allocate budgets, keeping both short-term sales uplift and long-term brand building in mind. But while many marketers have a measurement system in place, only about 23% of them have an integrated system in place.

The evidence from Kantar’s database tells us that focusing on just one objective means you are possibly grossly underestimating the overall impact of your marketing efforts. The short-term impact of media on sales is 13% and if you add the long term, the impact is doubled.

“To strive for as holistic a picture as possible, it’s key to integrate different sources of data into a singular framework. This is best implemented when organisations have data architecture in place. Having this infrastructure enables the organisation to leverage the power of data and analytics at scale and drive a culture of transparency within the organisation,” says Sagar Ramsinghani, Analytics Director, UAE, Kantar.

In this changing environment, where marketers are regularly deploying new ways to engage with consumers, it is critical that we continuously test and learn. Traditional measurement systems are backward looking and refreshed once every two years, which is today’s context may well be irrelevant.

The future of marketing optimisation lies always-on platform-based solutions that enable organisations to test and learn on a more regular basis and plan marketing actions based on expected outcomes.

Tips to get the best out of your content and media

When it comes to unlocking the power of creativity and optimising a multimedia touchpoint strategy, it makes sense to consider whether consumers’ responses to advertising have changed. Kantar’s Link ad-testing solution revealed that the reactions haven’t really changed when the same ads were tested pre- and during Covid-19.

Parallel studies conducted in digital behaviour also revealed that consumers continue to engage with online content in the same way as before – it’s how we consume content on different platforms that differs. So, while the video skip time for YouTube remains steady at seven seconds, it’s down to just three seconds for Facebook. When putting creative work on these channels, customise it for a greater chance of impact.

On the creative side, the back-to-basics strategy remains – have a strong creative idea that creates lasting impressions and integrates the brand. Getting this right could provide up to 10 times more ROI for your brand. And in the digital space, getting the creative right can get the ad from being avoided and blocked to liked and shared.

With out of home, cinema and event sponsorship off the cards for some time now, marketers are tempted to push all the budgets to digital. At Kantar, we know digital-only strategy can be restrictive. Synergy plays a big role in driving impact and having a TV and digital strategy provides the best ROI in today’s context. It’s key to have the content customised to the platform to ensure the creative is consumed in the right way to create desired impact.

In times of crisis when budgets are being slashed, the top learning has been around re-allocation of budgets to meaningful channels rather than completely going dark in order to avoid negative impact on brand and sales.

Watch this video for more on how to unlock superior marketing effectiveness in the new era of analytics: https://youtu.be/q0BCw_G1BUo

BIO: The world we live in today is powered by the data currency. As director of analytics at Kantar, Kent Diepraam an experienced advanced analytics professional with a demonstrated history of creating data-led business opportunities for growth. His skills span consumer behaviour, customer insight, analytical skills, and applying machine-learning techniques that enable businesses to examine their performance and predict logical step-changes in an upward trajectory. His knowledge and skills are solidified by a cum laude MBA, focused in strategic management from the Wits Business School.

Subscribe to stay informed whenever a new issue is published

Subscribe now

Page 1 of 4

What is your interest?

Marketing Qualifications

Supply Chain Qualifications

Online Short Courses

CGISA

Home

Student Support Centres

Divider

Current Students

Alumni

Accommodation

Newsletters