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Supply Chain Management trends in 2021 to take us to infinity and beyond
The number one factor to impact, well anything, in 2020 was of course COVID-19. Supply chains were not spared. International trade ground to a halt with the volume of Global trade in May of last year down by 17.7% compared to the same month in 2019, economies crumbled and global GDP for 2020 contracted by an estimated 4.3% and Supply Chain Managers were throwing their demand forecasts out the window.
The global pandemic has both battered the supply chain industry and at the same time brought to the fore how vital it is. Discussions that revolved around lean management and the almighty JIT system have been replaced with finding ways to make supply chains more resilient to change and more agile so as to be able to adapt to unforeseen change more quickly.
Here is what the experts are predicting will trend in the supply chain management industry in 2021.
The rise of the machine
Robots don’t get sick (although they too are susceptible to viruses) they also have a number of other advantages over humans: they work faster, don’t need breaks, and make less mistakes. Amazon currently has over 200 000 autonomous mobile robots (AMRs) moving stock around their warehouses. Drones are beginning to be used to make light deliveries and driverless trucks are about to come rumbling over the horizon. Development of these technologies will continue to grow.
But automation isn’t only about robots. It can come in the form of software too. Enterprise Resource Planning (ERP) software or Warehouse Management Systems (WMS) are helping more and more SMEs go paperless and improve their supply chains.
AI will continue to develop, and process more big data allowing Supply Chain Managers to develop more efficient systems, and make more accurate projections as well as respond to changes faster – saving time and money.
There will be more ways to track, manage and report on the exact status of inventory with technologies such as GPS and Radio Frequency Identification (RFID) tags. These developments in the Internet of Things (IoT) arena will feed data to AI systems so that they can develop process models which in turn will enable the robots to make more autonomous decisions.
Other digital developments that are being repackaged for use in Supply Chain management are Smart Contracts, which are transaction protocols that are meant to be executed when certain conditions are met automatically. Wider adoption of blockchain, with research suggesting it can save the food and beverage industry $31 billion by 2024 alone.
Cloud-based technology will enable users to work from anywhere and will be especially beneficial to smaller organisations that cannot afford to invest in costly and extensive infrastructure.
What about the humans?
The humans will be at home, not because they have been replaced by robots but rather because the COVID-19 pandemic resulted in many countries including South Africa enforcing strict lockdown periods. Many companies were forced to find ways to allow their employees to work from home and it is anticipated that this trend will continue. There are many advantages to working from home such as better work-life balance, increased productivity/better focus, less stress and avoiding the commute, to name a few. The lockdowns meant companies had to invest in infrastructures that could support remote working. There are of course also advantages for the organisations as they no longer have to facilitate a large staff contingency, and research has shown that contrary to initial fears, productivity as a whole increases when people work from home.
SCM Dojo also predicts there will be more focus on employee development across the following 3 dimensions:
- Technical Supply Chain Competencies (also includes Materials Management & Logistics)
- Digital Supply Chain Knowledge, and
- Soft Skills
The Age of Ecommerce is Upon Us
The combination of people being locked down and working from home resulted in an astounding jump in online retail purchases. Even helping to make Jeff Bezos the world’s first man with a net value of over $200 Billion. To put it another way ecommerce experienced 10 years of growth in just 3 months.
And this is not expected to slow down. In fact, a global growth rate of 8.1% is expected between 2020 and 2024 with Turkey in the lead with a 20.2% forecast.
Source Statista
B2B online transactions will also grow and are expected to reach $1.8 trillion by 2023.
Consumers will also increasingly turn to their social media platforms for retail therapy with recent developments such as Facebook’s and Instagram’s Shops.
Disaster-proof supply chains.
Remember at the beginning of last year when suddenly toilet paper became a rare commodity, or when SAB had to dump millions of litres of beer because of lockdown?
These are two classic examples of the unexpected impact that COVID-19 had on supply chains. Supply chains are now being re-engineered to be more agile and able to respond to unforeseen circumstances more quickly.
Organisations are using AI and machine learning to develop models that can be used to predict future events and prepare for it.
Organisations are looking to supplier diversification to bolster their supply chain. What this means is they are hedging their bets between international and local suppliers to get the best balance of price, production capacity, shipping costs, lead times and quality so that if one channel closes down they can increase demand on the other.
Conclusion
2021 will mostly be about recovering from the whirlwind that was 2020. It’s time to take stock and build better, more robust, agile and diverse supply chains. We will do it using robots, powered by AI and informed by IoT while we work from home on cloud-based systems and keep the wheels of commerce turning with our online purchases. Necessity has forced us to find new and innovative ways to overcome the roadblocks the pandemic has put in front of us and now we are set to leverage these solutions as the trends in SCM in 2021. The future remains a mystery but two things we know for sure: The world will never be the same and whatever the future holds, Supply Chain Management will, as always, be at the centre of it all.
Are you interested in a career in Supply Chain Management? The IMM has a number of Supply Chain Management academic programmes and short courses to suite your requirements and your pocket. Visit our website for more details or call us on 0861 466 476 to speak to one of our consultants.
Stellenbosch Open Day – 30 January 2021
IMM Graduate School welcomes prospective students with open arms into our new Stellenbosch Campus on 30 January 2021 for our Open Day. We cannot wait to see the IMM family grow!
What is marketing and why choose it as a career?
What is the first thing that comes to mind when you hear the word marketing? Billboards? TV ads? Flyers?
Many organisations are reluctant to invest substantial amounts of money into marketing as they often don’t understand the full host of benefits that it offers. Marketing isn’t just about promoting brand awareness. And it is much more than just selling. In fact, Marketing is one of the foundational pillars for building a successful, sustainable business.
The primary objective of marketing is to identify and satisfy, or exceed, the ever-changing needs of consumers. By looking at this broad primary objective, it is clear that the concept of marketing is related to many activities in business. Marketing in its full context refers to any activity undertaken by an organisation that has been actioned to produce goods or services as well as price, promote and distribute them to a certain target market. These marketing activities are actioned to stimulate an exchange between the organisation and its customers which in modern terms we refer to as sales. If done correctly, marketing activities should result in the organisation achieving its goals.
Marketing is an integral component of business. The purpose of marketing is to ensure that your prospective target market knows about and then purchases the products or services on offer by your organisation. Put in layman’s terms, marketing is the process of identifying consumer needs and determining how best to meet those needs. Advertising on the other hand, just like sales are one of many tactics within the marketing function that facilitate communication with potential and existing customers about the company’s products or services.
So, if you haven’t been seeing the conversion rates you’d like to, maybe the issue is that you are attempting advertising or sales as a standalone initiative and not looking at your business through a complete strategic marketing lens. In other words you may be lacking in strategy. And any promotion without a sound strategy behind it, is simply a waste of resources.
How doing a marketing course can benefit you
You become employable
Marketing skills are in serious demand, especially in the digital marketing space. This skills gap is set to widen. It is one of the few job markets that are thriving and surviving in the COVID-19 environment. Brands are highlighting marketing more than we have ever seen before. Bigger budgets, increased pay and diverse career opportunities are just a few of the benefits that marketing professionals are able to look forward to this year and in many years to come.
Communication skills are valuable no matter what your career path
Even if you decide to veer off into a different direction with your career, having some marketing and communication skills in your armoury is never a bad idea. One of the most important skills that businesses seek in employees is communication. The ability to communicate effectively with a potential market is a critical part of what makes any business successful. You can use the skills you develop when studying marketing in just about any business setting or career, even if it is just communicating with your colleagues to get your point across. The field of marketing communication is very broad and with the emergence of digital technology it is now more dynamic than ever and requires all business owners and managers to keep up to date with the latest developments.
You remain relevant
No matter whether you are a seasoned marketer or a doctor wanting to know how to put your practice onto the Internet, short courses are a great way to learn new skills quickly or to top up existing skills in order to remain relevant.
You open up diverse career opportunities
You open up diverse career opportunitiesMarketing offers a wide variety of career choices for different personality types. If you have more of an extroverted personality and enjoy working with people, possible career options include sales, retailing, brand or product management. If you are more of the analytical type, you might enjoy a career as a market research analyst or digital marketing planner rewarding.
Marketers are always in demand
The importance of marketing cannot be overstated, and this is only expected to increase. One of the main goals for any organisation is expanding their customer base and the power of marketing in realising this goal implies that marketers will remain high in demand for some time to come.
Marketing teams can be found in almost every industry – agencies, in-house, outsourced or freelance. There are always a wide range of jobs available in this field, especially for those who have the required qualifications and skills.
Earning potential
Earning potentialMarketing is a business function that allows a lot of room for growth. By continuously improving your knowledge and application of marketing, you will be able to climb up the corporate ladder. And, depending on the company, your position and your experience, you could become a highly paid professional in no time.
What’s interesting and beneficial about the job market for marketing professionals is that there is huge competition for skilled talent regardless of industry. This means that individuals with the right skills can negotiate for great salaries but also land great benefits and perhaps even bonuses depending on their role.
A marketing course that has it all
The IMM has just updated it’s industry leading short course in The Fundamentals of Marketing. This course will set you up with a good foundation. It has been designed both for current marketing professionals who want to update their skills, and those looking for an introduction into this exciting career field. It is also suited to business owners and entrepreneurs who aim to develop their marketing knowledge so they can apply this knowledge to their own brand.
The field of marketing is exciting – it stimulates creativity and requires lateral thinking. Marketers face the challenge of constantly having to come up with creative ways to promote a brand, product or service. If this sparks your interest, look at signing up for our Fundamentals of Marketing Short Course. This course has been developed by a team of marketing experts that have a thorough understanding of the practical marketing skills required to compete in today’s fast-paced marketing environment.
This IMM online short course covers the fundamentals of marketing management and offers a holistic view of this important field.
The course is a 12-week online short course where you will start off with Part 1: The world of marketing. In Part 1 you will learn about the basic principles of marketing, the marketing environment and competitors. Following these foundations, you will learn more about consumer behaviour, research, marketing decision making, segmentation, targeting and positioning.
Then comes Part 2, the marketing mix strategy, throughout part 2 of this course, you will be exposed to how digital technology has impacted the four P’s and how an additional four P’s have been added to address the service elements of the digital environment namely, People, Process, Physical Evidence and Partnerships. You will also learn how to drive action through a well thought out marketing plan.
An understanding of the fundamentals of marketing forms the basis for developing successful marketing strategies in any organisation. IMM’s Fundamentals of Marketing course is designed to provide you with the knowledge and skills you will need to develop practical skills that are applicable in the workplace.
After mastering this course, you will have obtained extensive knowledge of the field of marketing and its operations, this knowledge will lay the foundation upon which you can further build your knowledge to graduate level by signing up for one of our marketing degrees or higher certificates.
By now, it should be clear that the marketing world is about much more than just promotion and advertising, and that it could be a riveting field to jump into, so sign up for our Fundamentals of Marketing Short Course today and kick your marketing career off the right way!
To sign up, or for more information on our Fundamentals of Marketing Short Course, or any of our other courses in marketing, visit https://shortcourses.imm.ac.za/online_courses/marketing-advertising-short-courses/
Advertising during a pandemic: Brands that got it right!
ALRENE COETZEE, Social Media Manager at Digital Content Lab shares a light-hearted review on how some brands broke through the noise of COVID-19 advertising by showing us the funny side of the pandemic.
When the COVID-19 pandemic hit South Africa at the beginning of 2020, a full national lockdown began at midnight on Thursday 26 March. Many brands had to make rather big adjustments to their marketing strategies in order to reach their customers at home using digital marketing tactics.
So here we are, almost a year later, and still stuck with endless adverts from brands who seem to have gotten the same memo to bombard us with their sombre piano music and empty roads, reminding us THAT WE CANNOT BE TOGETHER, but at the same time WE ARE NEVER APART.
But just when we thought it was time to zone out of these depressing ads, something unexpected happened…
Saved by humour
Here are four brands who thankfully took a different approach and changed the game completely by appealing to our sense of humour through clever and engaging content.
Chicken Licken SA (84,713 Youtube views)
Chicken Licken SA really did their slogan “Soul Food for a Soul Nation” justice with their COVID-19 campaign video portraying South Africa’s unique sense of humour amidst the pandemic. The video includes snippets of how South Africans try to outsmart the COVID-19 rules along with the famous zol-song and the president’s struggle with his mask. They made sure to keep things on the light side.
Watch the video here: https://www.youtube.com/watch?v=tjly7EsmUYY
King Price Insurance (3,381,998 Youtube views)
King Price Insurance had some fun with their hashtag “#UnapologeticallySouthAfrican”. Their COVID-19 campaign video opens with a woman approaching a roadblock where a police officer continues to check her temperature and asks for her permit. A funny series of misunderstandings take place pointing out the struggles we face in a light-hearted way. The traffic officer takes her temperature and tells her she is ‘very hot’ to which she responds that she is married.
Watch the video here: https://www.youtube.com/watch?v=M35_uhXFbmE
Nando’s SA (18,159 Youtube views)
Nando’s SA took the jolly “We wish you a Merry Christmas” carol and turned it into a funny, witty song introducing their “Say ‘tsek to 2020 Fed-up Festive Feast”. They sure made us realise that even though we have our downs, our truly South African sense of humour cannot be taken away from us.
Watch the video here: https://www.youtube.com/watch?v=g25anWNqwkk
Castle Lite SA (515,455 Youtube views)
Castle Lite’s intro to their #HitRefresh on 2020 played on that one phrase South Africans know all too well… “My fellow South Africans”. In their video there is a small town called Hotazel where the temperature gets, well… hot as hell. They used the COVID-19 nation address and turned it into a fun commercial, making us feel refreshed for a 2021.
Watch the video here: https://www.youtube.com/watch?v=qlDIgsLiM8c&feature=youtu.be
Even though the COVID-19 pandemic is no laughing matter, at least these brands managed to lift the spirits of the nation while promoting their brand.
Jokes aside
If you or the marketing team in your company is not geared up to drive your digital marketing strategy this year, then consider the IMM Graduate School’s Applied Digital Marketing Certificate course. In 10 months, you could be upskilled with some of the latest strategic thinking and best practice from the industry.
This course promises to be the most up to date course available as it is continuously reviewed and updated by our tutors that work in the digital marketing industry. Here’s what one of our students had to say about this course:
“Thank you so much for the ADMC course, it was really an eye opener to what I thought I already knew. This course was really what I needed to enhance my marketing qualification and added to my understanding of digital marketing.” Tokologo Mokoena (Marketing Manager – SABC – Ikwekwezi FM)
Being a digital marketer in 2021 means you need to have a wide range of skills; from technical know-how to content creation. In this practical, hands-on course we introduce you to the tools required to be a successful and efficient digital marketer. If you would like to apply for this course or would like more information, follow the link to our website https://shortcourses.imm.ac.za/online-course/applied-digital-marketing-certificate/.
Say hello to uninterrupted COVID proof education!
The only thing that is guaranteed right now is change and 2020 has undoubtedly offered proof of that! COVID-19 also sometimes referred to as “RONA” has had a massive impact on students and student life. But, it’s not all doom and gloom, there is a way to stay safe and enjoy uninterrupted studies for this year regardless of the lockdown level or which variant of the COVID-19 virus is doing its rounds.
It is still possible to plan for a future despite the challenges being presented
The matric exams which ended on 15 December 2020 are currently being marked and results are expected to be released on 22 February 2021. While matrics seem to have been left in a sort of limbo, Blade Nzimande, Minister of Education, has urged students not to fret. Traditional Tertiary Education Institutions have all set their academic year to begin between early-March and mid-April. This gives matrics ample time to settle into their choice of studies.
But, there is no need to wait to apply
Charmaine du Plessis, Chief Marketing Officer at the IMM Graduate School has advised matrics to apply with their prelim results. “Most matrics have an idea, even before they write finals whether or not they are expecting a Bachelor’s or Diploma pass. The IMM Graduate School has a structured process where students applying for a degree programme but don’t qualify (with their final results), can move to either a Diploma, Higher Certificate or other course within the IMM Graduate Schools bouquet of offerings.”
Everybody that applies to the IMM Graduate School will be assisted to find a suitable programme to study
Du Plessis urges students that already have a qualification and want to register for a Postgraduate programme to do so as soon as possible to avoid the inevitable rush that is expected when matrics eventually receive their results. “We are anticipating a peak registration period, so to avoid longer call back times and (digital) queues, rather get your application in now”.
We ALWAYS have space for you
The IMM Graduate School has geared up to take on more students this year. The COVID-19 lockdown was a catalyst in the adoption of online learning in South Africa and the IMM Graduate Schools academic department along with support functions have adapted their processes to take on an increased number of students for the year.
This is just as well since UNISA has recently announced that it will be decreasing student intake numbers by 20,000 students this year. Part of the reason for admitting fewer students is the inability of the National Student Financial Aid Scheme to meet the demand.
Another is that some buildings on the UNISA campus have been closed indefinitely due to COVID-19 and in an effort to keep everyone safe they have announced that there will only be one registration period for the 2021 academic year. This means that all modules for 2021 – for both semesters – must be registered before 12 March 2021.
If you have applied at UNISA and find that your registration has been unsuccessful due to any of the above or any other reasons, then turn to the IMM Graduate School – we can be your academic home for the next few years. We are able to offer you an uninterrupted fully online education backed by an established and committed academic team. And if COVID-19 lets up and allows for it, you can at any time sign up for classroom education at one of our many student support centres countrywide.
“Furthermore, to assist student financially during these tough economic times, we have partnered with Study Loans 4U. Study Loans 4U has relationships with the major banks and is able to not only secure the most favourable terms but also to increase the chance of a loan application being approved. Study Loans 4U does all the administrative work to make sure that the application process is quick, easy and stress free. In addition, the IMM has in place an instalment payment options which allows students to bay for their studies throughout the semester”, adds du Plessis.
Our registrations for 2021 are still open, but don’t leave it too late. You shouldn’t have to delay your goals by missing even one semester/term of studies. Take as much control as you can over what is controllable. Your health and your education. See you soon!
IMM Graduate School Online Open Day – 16 January 2021
Considering a future in Marketing, Supply Chain or Business?
Then watch our online open day recording!
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.
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.
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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.
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.
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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?
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.
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