Shape-shifting supply chain management to face future challenges – especially in educational institutions

28 February 2022

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JSMJan22_SupplyChainTrends

In the past, a supply chain strategy would focus on long-term goals. But in an ever-changing world, these goals have shape-shifted into short-term aims and often have to change in situ. DR MYLES WAKEHAM and CARL WAKEHAM investigate how SCM education can be morphed in order to meet such threats.

The reality that nothing happens until such time that something is sold and purchased are truisms, and form the bases on which all economic activities, and particularly supply chain management (SCM), are built.

In essence, SCM and its logistics activities centre on derived demand; hence, if there is no marketing, there is little need for SCM in general and logistics in particular.

The COVID-19 pandemic and its current and future mutations/strains have demonstrated to the entire world how fragile Mother Earth has become, and even more importantly, how complex and volatile global markets are. Much has been written about the need for agility, waste reduction, sustainability and the need for effective and cost-efficient risk management, but how does an organisation implement such interventions in local, regional, national and global markets that are dominated by complexity, elongated supply chains, cultural nuances and market and supply chain uncertainty?

What makes matters worse is that whatever strategy one pursues today could be inappropriate tomorrow, as strategy formulation, implementation and control are like a hunter aiming a slingshot at a wild duck in full flight to bring down his next meal.

Shape shifting to the short-term

In other words, in the past a strategy would focus on long-term goals but in an ever-changing world, these goals have shape-shifted into short-term aims.

As the world economy relies on some form of certainty so risk may be better managed, many organisations are now forced to use a shotgun approach, hoping that through this time of turmoil, a single pellet might strike such moving target so that hopefully corporate objectives may be attained; in the short-term. Long-term objectives, once the foundation of business strategy, have become a pipedream because they might have to be changed in situ according to alternate market and macro environments.

So, with the above in mind and other threatening challenges as listed below, how can SCM education be morphed in order to meet such threats?

Our analysis in the table below will hopefully assist educational institutes to take on these challenges so their offerings reflect current and potential future realities as opposed to them being myopic by conforming to what is being offered today by other institutions at the expense of the needs of students, their future employers and most importantly, the much-hammered South African economy.

Table 1: Challenges and possible educational interventions

Prophesised potential SCM challenges	Possible educational solutions (SCM interventions/subjects)
Advancement in technology	Artificial Intelligence (AI), automation, blockchain technology and evolving management information systems (enterprise resources planning, warehouse management systems, and transport management systems etc.) impact on the entire organisation starting from marketing and ending when an offering reaches its final destination (and even beyond in the case of reverse logistics). An important function of AI is to track consumer behaviour (what they buy, where they but it, how they pay for it and even what they would like to buy) and then plant seeds in the mind of the consumer by using singular targeted customer-specific promotions to market offerings. In many ways it has changed the consumer purchasing process by creating needs and wants instead of the personal identification of them. As the above technology embeds even further in the lives of the consumer and users (retailers and business customers), so too will the behaviour of buyers likewise morph. Remember, as supply chains become more complex and elongated, so too will the need for technology and business processes to follow suite. In a modern context, educational institutions such as high schools, colleges and universities will fail in their obligations to make students job-ready if they do not include the above in their respective curricula. This should go beyond technical training but should also include the provision of practical experience from the likes of SAP, Oracle, Sage and so on.
Demand management	The management of demand is critical for any organisation as it dictates capacity and resource utilisation. Traditionally, this is based upon qualitative and quantitative forecasting methods. However, as consumer behaviour changes, with continuous shifts in market and macro environments, plus supply chain complexity and uncertainty, traditional methodologies do not offer the required accuracy. By understanding AI, blockchain and MIS etc., students will be able to better forecast demand based upon more scientific and analytical approaches as opposed to the reliance of gutfeel and opinions in the form of qualitative forecasting techniques and the reliance of past data as per quantitative forecasting such averages, moving averages, weighted moving averages, exponential smoothing and so forth. Demand management has its foundation in micro and macroeconomics and is a process that consists of forecasting, supply planning, demand analysis and sales and operations planning. Therefore, to be effective in demand management in a SCM context, it is important for educational institutions to incorporate in their curricula an understanding of the impact of demand management on business performance. Students should understand techniques of setting up sales target, the facilitation of related sale target disaggregation skills, the comprehension of how to encourage the sales, marketing and customer to actively and collaboratively participate in the prediction process, an understanding of industry benchmarking and finally through real case studies, systematically grasp demand forecasting theory and practice.
Risk and disaster management	COVID-19 and other pandemics, wars, insurrection and natural disasters have demonstrated to the globe that the modern world is fraught with risk and uncertainty. They have also shown how fragile and uncertain the modern world is. As supply chains become more complex and extended so too will risks increase in the form of supplier, supply, financial risks, scope of schedule, legal, environmental risks, socio-politics, project organisational and human behaviour risks (to name a few). Educational institutions will fail in their obligations and responsibilities to their students if risk management (risk identification, assessment, profiling, intervention etc.,) are not included in their curricula. As importantly, should an unforeseen catastrophe occur, the curricula should include principles of disaster management and ethics, drivers of vulnerabilities, potential risks in the supply chain, policies and frameworks in disaster management and how technology such as AI, Internet of Things (IoT), Big Data and blockchain can help improve an organisation’s disaster response and relief capabilities.
Supply chain complexity	As supply chains become more elongated, so will complexity increase. One needs to find solutions to managing a complex supply chain. This includes complexity avoidance, developing collaborative relationships inside and outside of the firm, using appropriate information technology, hiring and retaining a flexible workforce, ensuring supplier collaboration, having superior leadership within the organisation, having a sound understanding of the needs of the customer and suppliers and very importantly, ensuring simplicity is built in the design of the supply chain. Education institutions should include all these aspects in their curricula.
Supply chain sustainability	Supply chain sustainability refers to an organisation’s purposeful efforts to consider the environmental and human impact of their products’ journey through the supply chain, from raw materials sourcing to production, storage, delivery and every transportation link in between. Environment, social and governance (ESG) criteria are being used to measure an organisation’s performance beyond only revenue and profits. ESG is used to attract investors and customers. Education for Sustainable Development (ESD) empowers students with the knowledge, skills, values and attitudes to address the interconnected global challenges the world is facing, including climate change, environmental degradation, loss of biodiversity, poverty and inequality. The module should include the interdependence between humans and the environment, the balance between the environment and society, sustainable life skills, respect for the planet, and future preparation and adaption to needs of the environment and the community.
Changes in consumer and business behaviour	According to Newsweek (8 December 2021), the business landscape has significantly changed over the past year. While companies have come to expect that people’s needs will shift constantly based on changing life situations, the customers of 2021 are remarkably different from their predecessors. Increased online shopping options and new methods for connecting virtually are just a few examples of how technology has altered the ways in which customers live and work. Though many businesses have been able to quickly adapt to meet the needs of modern consumers, the convenience and access that technology brings will be vital from now on. Leaders will need to keep a close eye on customer behaviour trends to ensure they are on top of the factors impacting the industry. Educational institutions will be well advised to place special emphasis on their marketing offerings as a result of consumer behaviour changes… now and in the future.
Cybercrime	Technology offers some incredible opportunities for the supply chain. AI could revolutionise robotic manufacturing and sorting, and use big data to identify and solve inefficiencies in processes. Automated vehicles could help to improve safe and efficient delivery of products, and reduce overall costs. However, as new technology is introduced into the supply chain, cybercrime will continue to be one of the primary threats facing all businesses in the future. It is therefore important to know in what ways this could present itself, and how firms can best take steps to combat potential issues. From an education point of view, very little is taught at universities and colleges about cybercrime and particularly how it can be minimised. As cybercrime impacts on all management functional areas in an organisation, it is important that not only security personnel be aware of and mitigates cybercrime but middle management as well. Modules could include an introduction to information and cyber security, the fundamentals of encryption techniques, fundamentals of digital forensics, introduction to malicious software, fundamentals of cyber security governance, fundamentals of enterprise security, threat detection and threat negation and management.

As can be seen above, educational institutions have a vital role to play to diminish the negative impacts of the above challenges. A practical approach is required in order for SCM challenges to be effectively managed.

The IMM Graduate School’s Dr Myles Wakeham is a motivated and well-connected academic and businessman who was instrumental in introducing and adopting CIPS at CPUT as a series of qualifications. 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 a former 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 at that stage 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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Why creating ‘Shared Value’ is vital for Africa’s economic recovery

28 February 2022

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JSMJan22_SharedValue approved

We as leaders – young and old – need to create an African narrative and drive our own African agendas. The Shared Value Africa Initiative is designed to do just that, writes TIEKIE BARNARD.“Africa Unity starts with you and I, recognising each other as brothers and sisters, irrespective of whether we speak Swahili, Portuguese, French or English … respecting each other and doing away with our colonial past that ONLY respects that which comes from the outside and is prejudice based. To a large extent we are getting this right, but we are moving too slow because we are blocked by our inability to see value in people that are not members of our private exclusive clubs.”
– Prof Mthunzi Mdwaba

The concept of One Africa, One Voice is about uniting us all with one voice and, most of all, it is about being the voice for those voices that are silent; those who do not have the power nor the freedom or platform to raise their voices.

These are voices of our women and children, our young people that cannot get jobs, our employees who are too scared to speak up, and our informal sector not getting enough support from governments and private sector. One Africa, One Voice represents both the ones holding the power and the ones needing the support, it is voice of all the voices.

That is why the 2021 Africa Shared Value Leadership summit, held late last year, chose the phrase as its theme – not just for one year, but for all future summits.

We as leaders – young and old – need to create an African narrative and drive our own African agendas. To do this, we need unity. Unity that is still eluding Africa even after a decision was made 59 years ago in Addis Abba to create Pan-Africanism, which centred on and promoted African unity and intensified co-operative action towards development.

The summit, for me personally, was insightful and inspiring. And yet it was also sometimes sad as we still live in a world ruled by inequality. It was energising to be able to connect face-to-face again, yet the ‘emptiness’ in the room – with masked individuals – did reflect and remind us once again that COVID-19 is still with us.

The fifth summit created a platform for our young entrepreneurs, who joined us from countries all across Africa. The work, drive, energy, and enthusiasm shared by these young voices – as our future leaders – was truly inspirational and I personally feel that the future of Africa is in good hands

Mark Kramer once again pointed out that we have a responsibility to change the system. A system that was created hundreds of years ago, before we knew about the devastating effects of climate change, or about the future population growth and its enormous challenges, or even about a pandemic that caused more than four million deaths and that touched every individual, every country, and every company worldwide.

We need to throw out all of our assumptions: assumptions about our own continent, assumptions about each other, the assumption that Africa is poor and always will be, the assumption that for Africa to develop we need to be more like the West, assumptions that we are not good enough, the assumption that whatever comes from outside Africa is better than what we have here, and the assumption that in order to make money businesses need to put people and planet aside and focus on profit only.

Business can be the agent for change for the nearly overwhelming problems we face today and businesses can and need to profitably address our social and environmental issues.

It was world-renowned architect Becky Fuller who said, “You never change things by fighting the existing reality. To change something, we need to build a new model that makes the existing model obsolete.”

As a collective, we need build that new model, and that starts with changing our own thinking and attitudes. A new model that sees us, as a collective. Take the African Continental Free Trade Agreement (AfCFTA) for example – supporting it and using it, and growing intra-Africa trade, a new model that is based on economic inclusion, a business model that supports young businesses, a model that embraces gender equality, a new model that is not steeped in old thinking, and a new model that creates equality and an environment where we create trust and intentionally leave no one behind.

The summit was inspiring and led by speakers young and old – thought leaders that shared insights, who raised thoughts on how we can drive economic recovery and change. Change that needs to happen now, as we do not have the luxury of time. Yes, time is running out and our people and our planet are suffering. We need to make the change.

If you missed out on the summit and could not join us, please visit our YouTube channel. It provides more insights and food for thought on building the future of our Shared Value Africa.

What is the Africa Shared Value Initiative?

Creating Shared Value (CSV) is a concept developed by Harvard University School of Business professors Michael Porter and Mark Kramer. It states that companies can profitably deliver economically beneficial strategies that simultaneously solve societal challenges. Larry Fink, CEO of Black Rock, explains, “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.”

Businesses that create value for the society also create economic value. A shared value approach requires embedding social needs into the value propositions businesses have; value creation, therefore, goes beyond the conventional calculation of revenues earned relative to costs incurred and rather, conceptualises value more holistically by connecting corporate success with societal improvement over time.

The Shared Value Africa Initiative (SVAI) is a non-profit pan-African Shared Value advocacy, training, research and membership organisation and the regional partner of the global Shared Value Initiative. Shift Impact Africa, a Shared Value advisory and consultancy firm based in Johannesburg, operates it. The purpose is to grow the community of African Shared Value leaders that intentionally align and deliver on profit with purpose, thus creating economic value and simultaneously generating value for society and the environment

Source: Shared Value Research Report (June 2020)

How Shared Value Africa Initiative members demonstrated solidarity during COVID-19

A couple of months after COVID-19 landed in South Africa, SVAI members conducted research around questions and thinking such as: Is there continuity between the company’s core focus or purpose, its business operations, and its response to the pandemic? And what do the findings imply about the resilience of Shared Value companies?

The most striking take-out of the research was how Shared Value companies continued to amplify their existing social impact work during a crisis. Each company that is part of the SVAI network demonstrated during its clear purpose, and existing social impact work, could simply be broadened in order to respond meaningfully to the crisis.

It was also interesting to note the extent to which Shared Value companies demonstrated during this period their willingness to collaborate in order to achieve social impact, forming partnerships across private, public and non-profit sectors an eco-system to tackle the pandemic’s social and economic devastation.

Tiekie Barnard is founder and CEO of the SVAI and Shift Impact Africa. The SVAI was founded by her passion and drive to make a difference, and the realisation that business has the resources and the power to accellate change on our continent. The SVAI is striving to assist business on the Africa continent and to build the most impactful business network of companies pursuing profit with purpose. Barnard is the co-creator of the firstever Harvard aligned Shared Value executive training course on the African continent

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Five customer insight predictions to help CMOs get ahead in 2022

28 February 2022

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JSMJan22_Predictions

Forresters authorised South African research partner JOAN OSTERLOH takes a look at the macro research into customer behaviour, motivation and intent as we hit our stride in 2022.

As the focus of digital transformation shifts and we enter a privacy-first world, it will become more important for businesses to have a clear view of customer behaviours, motivations, and intent.

In addition, the end of the third-party cookie as well as the rising proliferation of opaque artificial intelligence (AI) has prompted a new series of Forrester reports which look at how firms are rising to these marketing threats and even turning them into opportunities.

The pandemic-driven shift to a more digital lifestyle has seen more consumers engaging online. As part of the Predictions 2022: North America report, Forrester notes that just a few months into the pandemic in 2020, 49% of UK and 63% of US digital consumers had indicated trying a new online activity, such as attending a religious service or exercise class online.

While the higher online participation is good news for many digital businesses, the unintended consequences have been a steep increase in customer expectations. The North America predictions report further notes that 56% of US consumers “… believe that companies should have figured out how to handle pandemic-related disruption by now” and that 80% of consumers see the world as digital, with no divide.

In the Predictions 2022: Customer Insights report, Forrester analysts note: “If 2020 proved to companies that customer behaviour could change at the drop of a hat, 2021 proved that change is constant, and the new “normal” is continually evolving … Companies that wish to excel at customer insights will need to invest in new data sources, emerging analytical techniques, and more agile operational models.”

The report goes on to pick five customer insight predictions for 2022 aimed at helping businesses and marketing professionals prepare for the year ahead

Insights-driven organisations will be three times more likely to outperform their competitors
Data from the Forrester Analytics annual survey shows that those organisations which boosted their data-driven insights for decision making during the last two years have prioritised employee development, CX and revenue growth at three times the rate of firms that lowered their reliance on data-based insights during the same period. More importantly, the company says these companies are three times more likely to outperform their competitors in key financial and customer metrics in 2022.

The rising role of the Chief Data Officer (CDO)
The report highlights the disconnect between the IT and marketing departments. According to Forrester’s 2021 Global Marketing Survey, CMOs cite the lack of access to data as well as poor data quality as two of their biggest challenges for the year ahead. In addition, analysts note that the attempts to fill these gaps by marketers has exacerbated the poor relationship between CMO and CIO and led to ‘technology sprawl’. Forrester predicts that in 2022, CDOs will step in to help bridge the divide between departments and create strategies that help govern data and analytics capabilities, recommending that forward thinking organisations rely more heavily on their CDOs to help with the marketing departments’ growing need for high quality data.

Design researchers and data scientists work more closely
The pandemic shifted user behaviour, making predictions all but impossible and degrading predictive model performance. Forrester points out that we have yet to attain a stable ‘new normal’ and successful companies will place more emphasis on a deeper consumer understanding by bolstering quantitative data science with qualitative research methods such as ethnography.

AI gets more transparent
How machines reach decisions can be exceptionally complex. This ‘opaque AI’ is often not auditable and can lead to decision-making criteria that can be prejudicial. For example, banks have historically relied on variables such as income as a primary credit risk predictor, which can end up treating certain demographics unfairly. Forrester predicts that there will be a 20% increase in the number of companies relying on transparent, or Explainable AI (XAI), to debias their models and ultimately extend their total addressable markets.

Brands collecting zero-party data will double
The end of the third-party cookie and rise of other privacy laws has limited the richness and breadth of data firms can collect. To counteract this, Forrester says brands will increasingly rely on zero-party data, or that data which customers intentionally share about their preferences and interests. The company cautions, however, that there will need to be a clear benefit to customers if brands hope to entice them to share information.

For more predictions and marketing insights contact Joan Osterloh, Forrester’s authorised research partner for South Africa. In addition to the marketing forecasts, Forrester has also curated ICT trends from across the globe in the 2022 prediction series, which aims to shed light on where pressure and opportunity will arise in 2022.

As the focus of digital transformation shifts and we enter a privacy-first world, it will become more important for businesses to have a clear view of customer behaviours, motivations, and intent

Companies that wish to excel at customer insights will need to invest in new data sources, emerging analytical techniques, and more agile operational models

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GenZ: Highly evolved and empowered, with major spending and social power

28 February 2022

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JSMJan22_GenZ

Forward focused, evolved and empowered, Generation Z is studying and entering the workforce. They also hold 55% of the spending power, valued at over R100 billion, so they need to be taken seriously. JANE LYNE-KRITZINGER defines what marketers need to know about GenZ in 2022.

Following closely in the Millennials footsteps, Gen Zs (currently under 22 years of age) are without doubt a formidable generation and are expected to make immense impact on the world at large.

Aside from making up close to 25 million people with immense spending power and influence, this powerful generation displays certain key characteristics one must consider when marketing to them.

Digital intuitives

With shortened and more intense concentration spans, these multi-tasking and filtering gurus will pass your brand in a flash if you are not relevant. They expect fast and efficient service and to be treated liked individuals. Equally they require transparency and crazy convenience. Not just digitally but across all touch points.

Experiencentric

A generation wanting to live life to the fullest. They want to explore all aspects of life – tastes, places, people, experiences, education paths, careers. They push away from the endless same routines and mass market offerings. They want to follow individual passions and make a difference. They are each following their own unique journey of discovery. As creative activists they view the world through a different lens and expect services to evolve and grow with the times.

Family first

93% of Gen Zs say family is the most important thing in their lives. Family represents realness, trust, consistency and is supportive. Family offers solid foundation when life is fast-paced, stressful and uncertain. They know the value of an engaged community and the power behind crowd opinion, reviews, and sourcing. A successful brand needs to be supportive, real, transparent and treat them like individuals with value.

Gen Zs are highly evolved and empowered consumers, who are resourceful and expect tailor-made solutions. They will cross reference their options, check in on peer reviews and make informed decisions. They are forward focused, agile, welcome change and believe they are the difference. It is crucial brands adapt to meet their needs and become a ‘partner in their progress’ and don’t get sidelined or become obsolete.

EXPLORING GENERATIONS: Generation Z

Up to 22/23 years
Similar traits to Millennials, but more pronounced
Expected to be more impactful than Millennials
Most still growing up and shaping their identities
Geared for change
Digital intuitives
Ethically and culturally diverse
Highly cause-concerned
Highly self-educated
Highly entrepreneurial
Highly creative
Heightened exposure and expectation

SIZE & IMPORTANCE: We are many… and important

29 million 15-34’s in SA
Two thirds live in urban areas
Hold 55% of spending power (over R100 billion per annum), which is more than previous generation consumers had at the same age

FUTURE WORLD OF WORK: Education

Research identifies that 35%, or 5.7 million jobs in South Africa are at risk of total automation

BUT

YDx research shows that young people have embraced the power of technology
The majority of youth are positive about how technology will change the future world of work
44% of youth are positive about the impacts of technology on the way people will work by 2030
Only 17% of young people believe that their job/occupation will be taken over by robots/AI in the future
South Africa needs to act quickly to address the skills deficit in order to take advantage of the potential that the fourth industrial revolution offers
This means acquiring more human skills such as analytical skills, social and emotional intelligence and problem solving
This can be further enhanced if people embrace digital technology to become more knowledgeable, connected and effective

Jane Lyne-Kritzinger is the MD and Founder of YDx, a leading boutique consultancy on Gen Z, Millennials and family. She has 30 years’ experience, and worked on a host of blue-chip companies, academic institutions and NGO’s across industries and markets. She is passionate about making a difference to SA’s younger generations.

#ydx #genz #importanceofgenz #marketingtogenz

It is crucial brands adapt to meet their needs and become a ‘partner in their progress’ and don’t get sidelined or become obsolete

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Journal of Strategic Marketing Newsletter – February 2022

28 February 2022

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Journal of Strategic Marketing Newsletter – February 2022

A NOTE ON MARKETING THE FUTURE

We now refer to life pre-2020 as the ‘old normal’. We are, once more, living in ‘normal’ times, and that means living alongside the pandemic. Of course COVID-19 still tosses us around as new variants come about, and has thrust new debates and polarising issues – such as mandatory vaccines – into the mix. Nevertheless, we’ve embraced the agility we have learnt over the past two years in terms of how and where we work, and how or where we consume – be it media, food or information.

Life, and marketing, goes on.

And so it is we enter 2022, nervous about believing it could treat us better than 2019, 2020 and 2021, but nevertheless determined to go about our business. And in hope that Project Rebuild South Africa finally gets beyond basic building blocks. Of course, there is the African National Congress’s always-turbulent national elective conference at the end of the year, and that means political drama will play out big time, and that always affects the mood of the nation.

Still, life and marketing goes on.

On marketers’ radars in 2022 is Generation Z. The influential generation is studying, and entering the workforce. With spending power of around R100 billion, these “highly evolved and empowered consumers” pack a lot of power, as Jane Lyne-Kritzinger highlights in her must-read guide to understanding how to engage with this cohort.

What is a January newsletter without a prediction or two? Forresters gives insight into its macro research on customer behaviour, motivation and intent as we hit our stride in 2022. An interesting trend to note here is the rise of the Chief Data Officer. CDOs, says Forresters, “will step in to help bridge the divide between departments and create strategies that help govern data and analytics capabilities, recommending that forward thinking organisations rely more heavily on their CDOs to help with the marketing departments’ growing need for high quality data”.

Armed with the knowledge that consumers – particularly the influential GenZ – demand transparency and accountability and authenticity, forward thinking brands are buying into the principle of ‘Shared Value. Here, CEO of the Shared Value Africa Initiative, Tiekie Barnard, explains the principles behind the movement. And why it makes business sense.

We all know supply chain management was turned upside down by the COVID-19 pandemic. But how has this impacted on education institutions teaching the subject? Myles Wakeham and Carl Wakeham explore what needs to be done to ensure students are kept on top of the trends and new thinking around this important discipline.

Here’s to marketing the future.

Glenda

JSMJan22_GenZ_with quote

GenZ: Highly evolved and empowered, with major spending and social power

Forward focused, evolved and empowered, Generation Z is studying and entering the workforce. They also hold 55% of the spending power, valued at over R100 billion, so they need to be taken seriously. JANE LYNE-KRITZINGER defines what marketers need to know about GenZ in 2022.

Following closely in the Millennials footsteps, Gen Zs (currently under 22 years of age) are without doubt a formidable generation and are expected to make immense impact on the world at large.

Aside from making up close to 25 million people with immense spending power and influence, this powerful generation displays certain key characteristics one must consider when marketing to them.

JSMJan22_Predictions_with quote

Five customer insight predictions to help CMOs get ahead in 2022

Forresters authorised South African research partner JOAN OSTERLOH takes a look at the macro research into customer behaviour, motivation and intent as we hit our stride in 2022.

As the focus of digital transformation shifts and we enter a privacy-first world, it will become more important for businesses to have a clear view of customer behaviours, motivations, and intent.

In addition, the end of the third-party cookie as well as the rising proliferation of opaque artificial intelligence (AI) has prompted a new series of Forrester reports which look at how firms are rising to these marketing threats and even turning them into opportunities.

JSMJan22_SharedValue approved_with quote

Why creating ‘Shared Value’ is vital for Africa’s economic recovery

We as leaders – young and old – need to create an African narrative and drive our own African agendas. The Shared Value Africa Initiative is designed to do just that, writes TIEKIE BARNARD.“Africa Unity starts with you and I, recognising each other as brothers and sisters, irrespective of whether we speak Swahili, Portuguese, French or English … respecting each other and doing away with our colonial past that ONLY respects that which comes from the outside and is prejudice based. To a large extent we are getting this right, but we are moving too slow because we are blocked by our inability to see value in people that are not members of our private exclusive clubs.”
– Prof Mthunzi Mdwaba

The concept of One Africa, One Voice is about uniting us all with one voice and, most of all, it is about being the voice for those voices that are silent; those who do not have the power nor the freedom or platform to raise their voices.

JSMJan22_SupplyChainTrends_with quote

Shape-shifting supply chain management to face future challenges – especially in educational institutions

In the past, a supply chain strategy would focus on long-term goals. But in an ever-changing world, these goals have shape-shifted into short-term aims and often have to change in situ. DR MYLES WAKEHAM and CARL WAKEHAM investigate how SCM education can be morphed in order to meet such threats.

The reality that nothing happens until such time that something is sold and purchased are truisms, and form the bases on which all economic activities, and particularly supply chain management (SCM), are built.

In essence, SCM and its logistics activities centre on derived demand; hence, if there is no marketing, there is little need for SCM in general and logistics in particular.

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‘Purpose is a beacon for growth’: Deloittes

Recent research by global consultancy Deloitte into global marketing trends for 2022 revealed that 57% of those surveyed indicated that, in general, “they are more loyal to brands that commit to addressing social inequities”. The authors say for many, ‘purpose’ drives much of their business and operations, which have gone “from aspiration to strategic priority”. A third of consumers 25 and younger see sustainability as a top criterion for beauty and personal care product purchases. And privacy matters too. In terms of banking decisions, “nearly a quarter emphasise data privacy as a key requirement to winning their business. Additionally, we are seeing entire business models arise around data privacy in the business-to-business (B2B) space”.

Data quality is key to promoting customer loyalty

As per the old adage, “If you want loyalty, get a dog”. In the fourth industrial era, if you want customer loyalty, improve your data quality, says Gary Allemann, Managing Director at Master Data Management in South Africa. For many organisations, when looking for ways to improve customer loyalty, data quality is probably not the first concept that springs to mind. Allerman says the Business to Me (B2Me) marketing approach, which looks at delivering hyper-personalised experiences through digital channels, may start to replace traditional business-to-consumer (B2C) and business-to-business (B2B) approaches. But, he emphasises, “a key component or driver of customer loyalty, is completely dependent upon quality data”. This means combining ‘traditional’ data – like a customer’s name or account number – with additional data – such as an IP address or a device ID to build an accurate picture of each individual’s activities and preferences. And then extending this by adding additional context, such as location data and demographics that can help to build a better understanding of each individual.

Skills skills and more skills … and people too

Writing for Marketing Week, columnist Colin Lewis underscores the fact that skills in this digitally driven world are lacking. He believes employers should focus on “on mindset, character, attitude and a ‘batteries included’ mentality that means they are up for the challenge and able to get things done”. With the enormous growth during lockdown of ecommerce, marketplaces and the need for fast delivery all grew exponentially during lockdown and five years of “a different type of marketer was perceived to be needed”. Talking about skills requirements in 2022 quickly “becomes a conversation about finding a person who has multiple digital/technical skills, who also understands marketing at a deeper level. We want to find the one unicorn who can create viral TikTok videos, use Adobe Analytics, knows CPAs are going up and can write SEO copy for an Amazon PDP. And be a team player”. Not much to ask for then.

Virtual ‘touching’ of products engages more consumers

Assistant Professor of Marketing at the University of Iowa, Andrea Luangrath, has researched the impact of ‘virtual touch’. In a piece on her findings published on The Conversation website, Luangrath says, “Consumers who see a product on sale being virtually touched are more engaged and willing to pay more than if the item is displayed on its own”. Teaming up with marketing researchers Joann Peck, William Hedgcock and Yixiang Xu, the group studied 4 535 Instagram posts from four companies with tangible products that could be displayed in one’s hands. They also examined posts without any touching.

“Of the posts that contained a product, 43% portrayed hands in physical contact with it. These garnered significantly more engagement – receiving on average 65% more “likes” – than those that didn’t”.

Enter the metaverse: from 2D to 3D web

Mark Zuckerberg announced a brand name change to ‘Meta’ in October 2021, indicating Facebook’s wish to shape the metaverse transformation, writes Theo Tzanidis, Senior Lecturer in Digital Marketing, University of the West of Scotland, in The Conversation. The term refers to the possibilities of virtual and augmented reality. Some call it a virtual shared space accessible through VR headsets, AR glasses or smartphone apps. Users may interact, socialise, explore and create content in the virtual environment, and monetise their virtual transactions using blockchain technology and cryptocurrency. The metaverse (or 3web) is intrinsically linked to NFTs and cryptocurrencies, which commercialise interactions by creating or selling digital artefacts. In 2022, 3web is expected to be a big commercial issue and is backed by major brands including Nike, Adidas, Gucci, Prada, Puma, Microsoft and others.

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

JSMNov2021_GeoPollBrands - with quote

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.

JSMNov2021_Strategy - with quote

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.

JSMNov2021_AgencyFNL - with quote

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.

JSMNov2021_eCommerce - with quote

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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Categories: Newsletters

JSMNov2021_eCommerce

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.

increase in advertising Image

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.

Advertising Pandemic

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.

Increase in Atvertising

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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Categories: Newsletters

JSMNov2021_AgencyFNL

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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Categories: Newsletters

JSMNov2021_Strategy

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.

8 Core Elements of Digital Marketing

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.

Digital Marketing - Strategic Journey Model

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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Categories: Newsletters

JSMNov2021_GeoPollBrandsIMM

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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Journal of Strategic Marketing Newsletter – February 2022

Journal of Strategic Marketing Newsletter – February 2022

A NOTE ON MARKETING THE FUTURE

GenZ: Highly evolved and empowered, with major spending and social power

Five customer insight predictions to help CMOs get ahead in 2022

Why creating ‘Shared Value’ is vital for Africa’s economic recovery

Shape-shifting supply chain management to face future challenges – especially in educational institutions

Journal of Strategic Marketing Newsletter – October 2021

Journal of Strategic Marketing Newsletter – October 2021

A NOTE ON MARKETING THE FUTURE

The ongoing impacts of Covid-19 on South African consumers

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

Collaboration and integration are the new foundation of brand brilliance

eCommerce accelerated: How to get ahead of the curve

Economic impacts of Covid-19

How Covid-19 advertising was received

Societal impacts of Covid-19

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Shape-shifting supply chain management to face future challenges – especially in educational institutions

Why creating ‘Shared Value’ is vital for Africa’s economic recovery

Five customer insight predictions to help CMOs get ahead in 2022

GenZ: Highly evolved and empowered, with major spending and social power

Journal of Strategic Marketing Newsletter – February 2022

Journal of Strategic Marketing Newsletter – February 2022

A NOTE ON MARKETING THE FUTURE

GenZ: Highly evolved and empowered, with major spending and social power

Five customer insight predictions to help CMOs get ahead in 2022

Why creating ‘Shared Value’ is vital for Africa’s economic recovery

Shape-shifting supply chain management to face future challenges – especially in educational institutions

Journal of Strategic Marketing Newsletter – October 2021

Journal of Strategic Marketing Newsletter – October 2021

A NOTE ON MARKETING THE FUTURE

The ongoing impacts of Covid-19 on South African consumers

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

Collaboration and integration are the new foundation of brand brilliance

eCommerce accelerated: How to get ahead of the curve

eCommerce accelerated: How to get ahead of the curve

Collaboration and integration are the new foundation of brand brilliance

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

The ongoing impacts of Covid-19 on South African consumers

Economic impacts of Covid-19

How Covid-19 advertising was received

Societal impacts of Covid-19

About this survey

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